Loading...
HomeMy WebLinkAbout0118.093r [ , '" , [ f , ' : , j i January 7, 1992 UTILITIES ADVISORY CDMHISS:ON Palo Alto, California Attention: Finance Committee American Public Power Associati~pPA) Tree Power Program Members of the Commission: RePOrt ip Bri.t 'i'his is a report requested by the Utilities Advisory Commission which outlines the Tree Power Program of the American PUblic Power Association (APPA) and describes the costs anQ benefits to the city of Palo Alto of implementing this program. It seeks approval from the Utilities Advisory Commission for the recommendation that the Utilities Oepartlnent support the APPA Tree Power Proqnima The recommendation includes the development of a plan by City of Palo Alto staff and residents over this next year leacUng to the incorporetien of the proqram in the Electric Fund Capital Improvement Proqram budget fer fiscal year 1994-1996. The Tree Power program, once implemented, will replace and/or supplement portions of the Public Works Tree ManageI:1ent Program which will repreSel'lt savings for the General Fund~ Like\rdse, savings in the Electric Fund for the costs of lin~ clearing will be achieved over time. Deserlption of the Program In 1991, the American Public Power Association (APPA) embarked on a comprehensive pr-oqram t<:l encourage public pO\ler systems across the country to establish tree planting programs within communities to promote enarqy conservation, improve the quality of life, and address envirorunental concerns. A natio:lllliide goal of 16 million trees was established to represent one tree for every public power ;.>Z ,,<>-,0>, '~if--, "* -:';'i,:'. ___ ~Wg __ • ___ .""""_'-<+I __ ._. _"'~" ___ custo.er. Slne~ there are approximately 29,000 electric meters in palo ~lto, the 90al for the City would equal 29,000 trees. So far; over 40 public power utilities nationwid~ have already elected to participate in the Tree Power I'rogram, includ1tlQ the Sacr",mento Municipal utility District (SHUD}, which has set a goal of 500,000 trees by the yaar 2000. Most of th~ cities in the program to date arft in .idwest or eastern states.. In addition to tile tr-ee planting activity it5.1~, APPA strongly encourages public involvement end 'Jutroach pr~rame designed to educate the public on the benefits o! plantlnq treee.. Prc-motional me.terials and advice are available from APPA to quid. this process. The rationale tor public involvement is desiqned around the concepts that trees: • Zmprove air quality by absorcing du~~ and greenhouse qases, such as carbon 4iox:ide, and. releasing oxygen; • Reduce energy costs by proviainq cooling shade in the summer and warming windbreaks in the wintert • Enhance the beauty and value of property to the benefit of taxpayers and ratepayers; • H21p prevent soil erosion caused by wind and rain; • Provide a place for wildlife to live; • Create II. buffer along streets between automobile:=. and pedestri.ns~ slowing traffic and whumanizing-the streetscape; • Contribute significantly to the ambiance of cities when planted congruently with modern elements of urban design, i.e. geometry, species, and torm; • Aid in providing community identity by linking 5treets, plazas~ squares, and neighborhoods while creating II. ~c~iling" of branches that make urban space livable and easier to use. The concept of this program is the recognition by Public PoW'er municipalities that pUDlic ownership of" utili"tles also carries with it public responsibility and obligation to the environment and to future generations. It is also a recognition that, historically, utilities nationwide have not been conscious of the environment and should work to aitigate environmental damage. To meet the power requirements of the City of Palo Alto, the City has found it neces~ary to participate in certain projects such as the Calaveras Project, which necessarily created a change in the envir~nment in which it is located. Furthermore, the City relies on power supplies produced in a region ~hich incluQes fossil fuel generation facilities, similarly impacting the environment. Through the APPA Tree Pover Program, Palo Alto can provide leadership in assuming a share of responsibility for the environm~nt. CKR:118:'3 i I I ! "- 'Pt. -1 T'rees aay be perceived as part of t..~e. infrastructure which must be pr.served and saintained. In fact, trees are the only infrastructure which appreciates over t.!me. Programs aillled at improving the social conscience of the United States represent a grO'tw'ing 'trend tor both prl-"ate rmd public utilities. Currently, th. pacific GeB and Electrio Company (PG&£) bas a -tree plantlnq~ program in place, which targets the plantinq ot trees throughout the kyo Area and elaewhere in their 8ervice area. As a side benefit, leaders in orqanizations across th. nation have come to realize that nothinq inoreases productivity ar,;d job satisfaction 50 auch as when employees are united in a common vision --a vision which il greater than the sum of the parts. It is based on the elementary psychological tact that people are bettEr motivate~ when ~bat they do i~pacts positively on personal self esteem. It is this increase in productivity and job satisfaction which contributes to the. he'SIt custoMer service.. This pr09ram aims to unite employees and customers in a co~on visionary goal, hence the p~phas1s on public involvement which is necess~ry to the success of the Tree Power Proqram. Requirements (or Participatiop ill t~_~rUl The Tree Power Proqram is designed to allow for suit the specific needs ot local communities. required~ mcdifications to The folloYing is • Application for participation Which includes an "utline that contains definitive goals fer planting" one tree for every publi:;:; power customer (m.a~ured in electric meters) ana an explanation ~t how these qoals will be carried out, alon~ with a timel!ne for completion of the prQj~ct. Annual updates to APPA &re a part of the program. • Description of 4 public information pr09~am that highlights the benefits of tree planting. • Placement of the progra~ within proper utility management which ensures the program is carried out, not only.in coni unction vith various community goals and as requ.ired by t.he COlDprehensivQ Plan and the proposed Downtown Urban Design Plan, but with other local and reqional utility qoals as ~ell. • Explanation of a funding mechanism to ensure completion of this project. • Membership by the Public Power municipality in APPA. APPA allows communities full latitude as to the type, size and location of the trflles. APPA also fully supports the idea of providing special resto~ative care to trees damaged by drouqht and disease, but these do not coun~ toward the goal. Plantinq seeds, CIUt.ll •• t3 thouqh encouraged, does not count to'Ward the goaL Plantinq seedlings, ho~ever, does count towar~ the goal. Some cities have even sponsored tree planting pr09~ams in Asic, Africa, and hurricane-damaged 8o~thern Florida~ There Is no requirement tllat tree. :be planted only in Palo Alto. In fact, public poyer utilities are encouraqed to view this projac~ qlobally by 8pansoring tree planting actlvities in outside areii5..~ Although APPA requests that cOmlilunities provide them with a goal and ~ tiDeframe, th.re i~ no restriction on length ot time to acco~plish the qoal. After the application for participation is accepted by APPA, IS certificate is sent to the pa~_icipatinq cO!!!ll1unity. Once the qoal bas been reached, the Golden Tree Award is presented dU&:'inq thfl APPA National Conference~ 8upport and Resouroes for tbe ProgrAm APPA has arranged with several organizations to assist both in the development of these programs and in the acquisition of materials. Among these are: American Association of Nurse~tmen Global Releaf/Energy Releat (American Forestry Prog~am) berica the Be::tt'tiful (U.S. Oepartm+.nt of Agriculture} National Arbor Day Fou.ndation Famous and Histo=ic Trees Trees for the Future Assistance in planning from lo~al repre5entativ~ Guidance in des.tgning program/public outreach National tree planting progra:m with IS state forester appointee to assist Educational outreach in schools and communities to promote tree planting Grows and provides seadlings from historic trees Plan~'S trees in Asia, Africa, and Latin America for 25 cents per tree Each of these organizations is committed to the project and will provide assistance in the planning, designing and implementation of the progra~. They are able, in some cases, to provide the trees at little or no cost. A preliminary survey of local org~nizations within and surrounding Palo Alto revealed much enthusiasm and support for this concept as well as a willingness to ~ork ~ith Palo Alto in the development of CKR: 118 "3 ,,' - • • the proqram. Several groups are ~lready involved in tree planting activities, such aa lCaqic,Inc./Peninsula Relea!'. Some of these crqanizations includinq sempervirens Fund (which annually sends a lollrge qroup of Yoluntee:t'd to the Redwoods to plant 500--800 trees), the sierra Club, and rep~esentatives close to the Boy Scouts and the Girls SCO'Ut8 bave ot!:ered to arra:nqe for volunteers tor the plantlnq&. Th;;! SQlpel"Virens Fund also has a memorial tree planting prcqram in which a donation of $25.00 spon~ors the planting ot a tre8 in Redwood Mational Park. According to Nancy Hardesty, the la~6scape architect tor the Oa¥·c~ Neighbors Abroad reforestl!ltion project, that project was ori<)inally intended to plant trees in Palo Alto as well, especially around the school.. Some tree plantings could be sponsored in Palo Alto's .later citie., and Bome could be incorporated as p;e.rt ot an ~ucational outreach program in the schools.. with students receiving instruction on proper planting techniques and then beinq qiven a tree or seedling to plant. PG&E currently has such a school outreach program in place. Sections of Tree Power could ba incorporated in aspects of the City's Neighbors Abroad program. Proposal Cor p.achipg goal To comply with the requirements of the program, Palo Alto would bave to plant approximately 29,000 trees. It 1s suggest~:d that these tree plantings could be divided over a ten year period in the following manner: • 6,000 to 9,000 • 5,000 to 10,000 • 5,000 out, 11.,93 Incorporated as part of the existing City Tree Plantinq Program -600 to 900 per year (the City plants 400 to 500 trees in a normal non-drought year)~ City-sponsored program providing coupons to rasidents fo= "two for the price of one" to equal 500-1000 trees per year~ Both trees could be counted as part of the goal. Also included in this qroup would be the tree plantings which bave been postponed due to tudqet cuts, such as the 200 trees in the Cubberley Master Flan. lr. addition, the Junior Museum has a limited program for planting memorial tr~es which could be partially subsidized through the proqram. Seedlinqs and trees provided to outside and neighboring communities and reqions, such as Mid-Peninsula Open Space, stanford, schools, Cities, Oaxaca and other Neighbors Abroad projects. This • 5,000 ~ould amount to an average of 500 trees per year. Seedlings provided to other parts of California, such "'5 near our power qeneration arl9as in Calavoeras, Sonoma, take) and Mendocino Coun~ies, or in areas damaqed by forest fires. This would amount to an ~verage of 500 seedlings per year. Once the program is acce~ted, a ~orkinq group shoula be designated to write the plan for submittal to APPA and provide a more detailed analysis to determine other sites for tree plantinq. This group should be COmpolied of .embers of the community, as well as city staff, in particular from the Utilities, Public Works, Planning, and Finance Departments, since the proqrams outside of the City's Tree Management Program will require continuity and considerable support in administration. evrr.pt Ci~V Tree Plapting Program staff from the PUblic Works Department has identified the requirements to iarplement fully Palo ).lto's Tree Management Program ('I'JI?) adopted by council in 1982. OVer a ten year period this proqram would provide for the planting of 10,920 trees. The proqram is divided into categories of planned and unplanned replaceJlent and planting in selected vacant sites, as described belov: 1. optl~um tree .anaqement requir~s a planned replacement of our urban forests (street trees and off street sites) at a rate of 2 percent per year, or approxi~ately 832 trees from a total of 41,598 trees, not including Foothill Park. The cost excluding maintenance ove.r ten years equals $266~ 240 per year. The current tarqet of trees is around SCC per year. Ho~e~er, due to the drought, these plantings have been suspended so that there is a backlog of 800 to 1,000 trees which have not been planted. unplanned replacement due to drought, trost, disease and traffic damage averaqes 175 annually of the 832 trees. The cost to imple.ent plannea and unplanned replacement Would be: CKIt: US: t3 Remova.l Purchase Plant 832 X 205.00 832 X 40.00 832 X 75.00 'rOTA!. $170,560 33,280 62,400 $266,240 • t . • f , .. 2~ Planting in selected vacant sites at the rate of 260 street tlees per year would provide 2,600 new tree sites in ~lready identi.tied sites4 ('I'his figure has been revised by the Pul:Ilic Works Department from the earlier figure of ~,OOO after computer records were updated and examined.) Cost, excluding aaintenaTl.ce, over ten years equals $29,900 per ye.ar4 Removal Purchase Plant o 260 X 260 X 40.00 75.00 10,400 ~9,500 • 2t,900 Tbe cost to plant 1,092 trees (832 planned ~ 260 vacant) each year would be $296,140 per year: and over a ten year period, the cost to plant 10,920 trees would. be $2#9El,400~ This 'Would. include. materials and planting and p-xclude maintenance~ There would be a savings to the General Fund in future budget years, as these costs weuld be shifted to the Electric Fund. It ~hould be noted that one company offered an additional 30 percent discot:.nt over the current. city discount, it quentitie& eould be d~termin~~ and ordered over the ten year period so that the trees could be planted at the nursery. If this is possible I the. fiqure tor materials could be reduced from $40~OO per tree to $28.00 pe: tree. Trees donated for the program CQul~ also offset the cost of the trees purchased. i'he o1!Ibove. t iqures do not account for. inflationary increases for materials or labor, however. Th~ current Public works Tree )!aintenance Program j 5 budgeted. at $.12.1,000 per year .tor tree management programs~ This figure represents a standard for tree planting far less than set by council in the Tree :Management Program adopted in 1982, due t~ drouqht conditions and budgetary considerations. Under the APPA Tree Power Program, most of the cost to the Ceneral FUnd would be shifted to the Electric Fund. The Electric Fund ~ould finance the increase in the planting of tre:es to reach the standard of 832 trees planted per year over th9 ten year period, plus the cost to plant the 2EO tr~e6 in vacant sites, and the maintenance of the additional 260 trees. Maintenance of Trees for the Tree MaJ"".~gem~.g.~ PrograJl once trees are planted, they need special care for the first five years. 'I'hey need to be watered, pruned and maintained on a reqular basis during this time "While the root structure develops. Each tree will need about 40 gallons of water per week (20 gallons, two times per ~eek), during eight months of the year. There is little or no watering in normal years in December, January, February, and March. The formula below shows an estimate for the amount of 'Water needed to maintain the newly planted trees. CKI,,118,U f I ..... ( , Planned Vacant 8J2 treas X 35 ~eeks X 40 gal/tree 260 trees X 35 veeks X 40 gal/tree 1,164,800 gallons 364,000 gallons TOTAL. lC'2 tr ••• = 1,52','00 qal/yr. (2,044 ::CF) Under this formula each tree ~ould require 1,400 gallons (1.B7 CCFJ of vater per rear. Th£ total nWDber of CCF (hundred cubic feet) the first year .. oule! he 2,044 CCF. This 'Would increase 11ne:srly tor rive years to 10,220 CC.F in the fifth year. Thereafter, it would remain constant. To place this into perspective, currently over 4.6 .illion CCF B~e sold within the City. Due to the drought, trees w~ulQ be planted only if residents s1qn an agreement to water the tree ~n a reg~lar ~asis in those first tew years until the tree 1. established. Based on the above formula, this would be a cost to the reside~t of between a lovof $0.31 per munth to a hiqh of $1.96 per month, depending on the rate block for the eight months of the year when watering is necessary~ Another alternative would be to rent or lease watering trucks and Use reclaimed water. Although there 'Would be r.o cost for the water, the costs for the watering truck and the labor 'Would be prohibitively high: 1092 trees X 0.5 hours to water/week -546 person hours/week 546 person hours X $4Q.59 (hourly + benefits) = $25,.38/veek 546 person hours/week = 13.6 full time equivalent staff A ainimum of 14 trucks would be necessary to implement this type of program. These costs for statf and equipment 'Would increase linearly for the first five years and then level off ~ The commitment by the resident to water the new tree is by far the .ore reasonable and economical choice. Successful programs, such as the one sponsored by the Sacramento MuniCipal Utility District (SMUD), incorporate the stewar~ship CCMcept in ~hich residents -adopt-the tree. Each tree is specially t~gged tor the homeowner~ De~ail~d written instructions vould be given to each steward on ~~e care and feedinq of the tree. Quarterly re!!linders and surveys 'Would also be sent to the stewards t.o check the growth and progress of the tree. Trees require maintenance of approximately 1 hour/tree/year tor trimming, pruning, and routine tasks during the first five to ten years. Of the 1~092 trees, 260 are in addition to planned and unplanned replacements and ~ill require either in-house or ccntrBct~al care. This amounts to: 260 't.rees X 1 hour/yr = 260 person hours or 33 person days 260 person hours X $46.59 ~ $12,11) in labor tor tirst year Aqain, this amount would increase linearly, for the ten year periods. ----.-'11tt , .. 1 i i Year 1. Year 2 Year J Year " r.ar 5 Year 6 Year 7 Year 8 Year 9 Year 10 No. of Trees 260 520 780 1,040 1,300 1,560 1,820 2,080 2,340 12,600 'fOTAL Labor Costs $ 12,113 $ 24,227 $ 36,340 $ 49,452 $ 60,565 $ 72,iS78 $ 84,791 $ 96,904 $109,011 $1~1,1JO Person PAy. 33 66 99 132 165 198 231 264 297 330 The 932 trees from the planned and unplanned replacement yould be aaintained by current 'PUblic Works tree. ere",&. and assWIles no decrease in Full Time Equivalent (PTE) in future budget years. The ~60 ~dditional trees vill be maintained by contract for the first four years. In the fifth year, ona additional FTE will be required for maintenance work. In y~ars five through ten, the additional workload will be hand.led by the combination of the new FTE and ~o~tract work. After ten years, the maintenance costs will level off at the 1.5 FIE as the trees age anO: require reduced annual care. The above figures do not factor in inflationary increases which will make the dollar figure higher • •• int.n~:c. of Trees not Includ,d in tbe Tree Management 'rogr .. water and .~intenance costs for trees not included in the City's Tree Management program .. culd :be the responsibility of t'h.e tr-ee owne.rd and 'Would not impa.ct the City's budget. The costs for water and maintenance will vary for these trees depending on the location 4 The wate~ require~ents and maintenance needs as previously listed provide usef .. l estimates fo·r those who vill be responsible for these trees. a._apd-Bide Management 'PBM) Value Since Palo Alto's climate is relatively mild, only about 1/2 of 1 percent of the residents OW1"I. an air-conditioning syst.em. Those that 40 use it only a couple of hours during is te'rl days in the Bummer. Therefore, althougb the strategic selection an~ pl~ntin9 of trees can provide coolinq shaae in su~er and warming shelter in winter, it 'Would be very difficult to demonstrate that tree CHllJ114:'3 _ .... * . aJt IN_.: •. plantinq could' serve as a DSM program to offset tutu.re electric power purcha6~s. Nevertheless, a larger viey does show some po5si~le enerqy benefits ot enhancing the tree canopy "Within the City. Given that the current urban forest$ which provide so much of Palo Alto's ideal cllaate is aginq, Rany trees are reaching the end of their natural life!: cycle~ Also, street tree5 have t>een damaged due to the drought and need to be replaced. (Budge.t cut.s toave postponed thp.se ·plantinqs.) As a result of this deterior-atinq -tree infrastructure-, Palo Alto could become less humid and a lot hotter 1n the sUlI.a:Ier. This would e·ventually impact the energy ue;e of existing commercial air conditioning and neW' residenti,..l unit .• added because of the heat. The Tree Power program allows Palo Alto to plan for the future with an eye to aesthetics, drou9bt tolerance, height and strategic location of new trees in order to provide the ~rsatest benefit. mba: Costs Other costs associated with the imple.mentilltion of the program include the promotional and outre3.ch staff and. advertising eXll'!nses for school programs, newspaper ad.vertisements, broch~res and info~ational literat~re. M~ch of this WOuld depend on the recommendations of the group s-clected to design the Plan. Ifovever, based on similar programs, $10,000 to $20,000 per year over ten years should provide sufficient funding. Another cost will be the administration of the program itself .. Administrative involvement in the early years of the program will be qreater than in the subsequent years. City of Palo Al to stattinq requirements vi!1 depend on the balance. of community and staff involvement. At least ("one 1'!31t-time program administrator would :be required initially. Nevertheless, the program will :be de.pendent on consistent and reliable volunteer support, ideally from groups already committed to this type of environmental improvement. CUtlip. of Ten Ye~r~· Total Costl 1. T~ee Management Program at opt baal 1 eve 1 Maintenanca costs 2. Specialized programs (-two for the price of one-) J. seealinqs and other programs CIUl,l18 093 $2,961,400 666,217 2\)0,000 2.4,000 ( 4. Advertising and promotional materials ($10,000 X 10 years) 5. Admini.tration (two years) 'tOTAL. rotfDtial Colt ,.viAS ~oo,ooo 125,000 Tbe !:lectric f'Und. currently bud.gets approlCiMtely $475,000 per year for contract line clearinq in front and. rear electric utility ... e.aent.. Actual charges for this -work have been aver-aging $300.000 per year. Statf proposes that the bu~geted costa could be reduced over time l if trees planted under power lines were removed and replanted with drought tolerant trees whose =aximum height is below the heiqht of electric power lines. Some public opposition could be expected when large mature trees are removed and replaced with lUIaller trees. Once large trees ha.ve been. replaced, particularly in rear easements, significant savings could be expected in the future from reduced ongoinq program costs. lat. Iapa;t of COlt_ Tt,e.e cost. are preliminary estimates, with the tinal total of the cost. to be determined once a final plan 1& designed. The Tree Power Program could be incorporat~d as a Collpital IJDprOvf"JIlent Project spread over ten years fund ad by the Electric Fund. Bas~d on current revenue projections l the rate impact ~ould be approximately 0.6 ct one percent (0.6\) for the initial arJd ongoing funding ot the proqram. Savings from the line clearing program COSt&'1 currently budqeted as an expense in the Electric FUnd, would aitiqate a portion of this rate impact. '.oommendation Staff recoqnizes that the concept of a Tree Planting prvqram is & departure from traditional thought on utility projects. However, when trees are viewed as part of the infrastructure and as a major contributor to the kaintenance of climatic conditions, then the benefits are more apparent. Therefore, steff recommends that the Utiliti~~ AdviBO~ Co~is5ion aupport the APPA Tree Power proqram and reco~end to the Finance Committee the followinq actions: 1 ~ , f' ~ ,. . . .j .. ,'. "./ ~-. ~~-~--.... --.-.... "----~.- ),. 2. utilities .taft will ... t with ulected _eabera of other departHnta and .ember. or th~ community to design e. pl41l wbich oytlines • tree planting proqram tor the city of Palo Alto conal.tent with the aims ot the APPA Tr •• Pove.r Proqram. Staff return to the ,-inllnce Committee w,ith the plan •• part of the 1'94-1996 capital Isprove~ent Program budget 5ub:ittal. Re.pectfully .ubaitted, 4~:.LIuy bjk-j;,~--:r: ROSEKARY RA~TON Alboinistratcr Department ot Utilities j'?-~.,.4AoI ~~ ~ RICHARD L. YOUNt' v Director of utilities ~~ Cl ty Kanager CXJtll11Z ,3 UCBRPT ~roa RRAPT v!fV'l'! B 0 f ptiliti •• Advl.ory Comm!.aion .,dn.a4ay, o.c.aber 2, 1"2 Chairpersan Grimsrud called the meeting to ord~r at 7:30 p.m. in the city council Confe~ence Room, 250 H4milton Avenue, Palo Alto, California. Roll Call PRESENT: Grimsrud, Vejtasa, Eyerly, Hoffner, Sutorius ABSENT: None COUNCIL MEMBERS PRESENT: Co!:>l> Rosemary Ralston, utilities Administrator, said the American P'U1:l1ic Power Association {APPA) Tree Power Project was a policy decision which was well within the purview of the OAC (Utilities Advisory Commission) • Commissioner Hoffner thought the statement on page nine of the ~tatf report under Demand-Side Management (OSK) Value, indicating ·only about 1/2 of 1 percent of the residents own an air­ conditio~in9 system,· was incredibly low and asked whether it was a substantia~ed number~ Ms. Ralston said the figure was p~rt ot an end-user survey. Hr. Younq said the question related to a diagram entitled "Sketch of an Urban He~t Island Profile" ,handed out to the UAC: complete document frollt Department of Energy is on file in Utilities Administration)~ Co:amissioner Hoffner said the graph conflicted with statements elsewher~ in the staff report which indicated summer peak ~as the result ot air conditioninq loads. Mr. ¥ounq said commercial and industrial buildinq& which were. ti9htly shut up and functioned with air conditioning accounted for the difference. Chairperscn Grimsrud asked whether the sketch was fro~ hypothetical or actual data~ ,. x XS. Ralston said the infcrmation was from the ~ounds of literature concerning proqrams for energy conservation trom the Department of Enerqy (DOE). Chairperson Grimsrud asked whether the 5ketch indicated Palo Alto. Ms. Ralston said the figures from cities like Los Angeles indicated increased temperatures of up to six degrees because of the cement and: asphalt and was a serioLts problem in urba.n cOmz!l'.mi t.ies. C~issioner Hotfner 8uqgested providing free water to sustain new tr-.aes, lItakinq adjlJsbl.ents to payment sche".lJles, or allOliinq extra water allocations, paid tor by the Electric Utility and applicable to residences, parks, industries, etc. Such a plan would remove the impact to a hc~eowner or school in alloc~tions or rates because it would be subtracted :trom the beginning. The amount of water would already be paid tor by the Electric Utility ror the number of trees cared tor under the proqram. Ms. Ralston said COmMissioner Hoffner 's 5uqqe5tion 'Was an administrative detail which wculd have to be evaluated, but was a possibility. The staff report included a cost ~nalysi5 depending on the rate block, which ranged from $0.32 to $1.96 per ronth for the e.i9ht watering lIIont.hs indicZIIting, it was a -minimal charga. commissioner Hoffner agreed, but although the goal was to plant one tree per .eter, several trees might ~e planted at one location. The cost could conceivably be 1Dore 'than t.he $1.96 pet: W!lOT.th during the summar .onths and could create a restriction. It could also be a ~ean& of placing the cost of the program squarely on the Electric utility, since it was the Electric Utility whiCh was funding the program. Since the sponsoring group, APPA, W.I!S an e.lectric program it became a question of subsidizing_ The City Attorney should be consulted on crous-usage and subsidizations. Ms. Ralston had spoken 'Witil. the City Attorn~y regardinq the proqraD:1 itself an~ consideration had been given to what the Electric fUnd would receive in return for its contributions, hence. the concept of dealing ~ith the line-clea~ing which was very tangible. Commissioner Vejt3sa said line-clearing was not initially part of the prO<Jram. Ms. Ralston about # but originally. said it ~as part of the program when it first came was addressed in more detail than it had been COllUllissioner Hoffner thought staff could provide tree trees to allow lIIcre control over the type of tree~ how high they would grow under the power lines, the types of trees \lIhich caused significant leaf drop in the fall thus filling the landfill, drought tolerant trees, and disease tolerant trees~ me: 12/02/92 Page 2 E, , • J. '." J(s. Ralston said staff ... ·ould also have >::ontr-ol over vhere it ... anted to plant th~ tree~ ca.aiasioner Eyerly asked how th~ plantings would be handled as indicated on page two of the cover sheet speaking: of 5,000 seedlings for power plant areas. Ms~ Ralston said p~eliminarily statf ~ad been in contact vith the O.S. Departaent of Forsstry and vas involved in some of the ne~er cont::spts. Statf 'Was considering other reforestation prcjects J especially areas whic!'l had suffered serious fires~ Staff needed to deterzine what was currently available. commissioner Eyerly suggested th.s 'Work could be farmed. out and asked whether Neiqhbors Abroad or sister cities were eager to obtain trees or a program. Ms. Ralston said staff had spoken with the architect who designed the Oaxaca project, Nancy Hardesty, Yho was very eage~ to participate. Staff had compiled a list of approximately three pages of organizations and people who were willing to provide volunteers, services, and she was one of them. Ms~ Hardesty had also indicated that the original reforestation project included a school program, which outlined for the students how to plant ill tree. Staff had obtained ~aterial regarding this program. co.missioner Eyerly asked about the progr!,m ror planting S,OOO to 10,000 trees by residents through the -2 trees for the price of lW coupon proqram. Ms~ Ralston explained that another city had started the proqram and staff hoped to come u.p with more plans. PG~E currently had a program for a $5.00 rebate Which Palo Alto could inco~rate by providing a coupon~ PG&E would contract with local nurseries by providing them the coupon. buying the tree, etc. PG~E had provided some gOO<! literature. The proqra.u. could be either a 2-fcr-l program or a discount, depending on the size of the tree. Co~issioner Eyerly asked whether the overall cast for t~n years at approximately $4 million was for tree cost or some other costs. Ms. Ralston said the bulk of the $4 ~illion .as for the city to brinq the tree manage~ent p~oqram up to the optiz~ level which involved ~he 832 tre~s per year. plus taking care of the backlog of 260 tree.s/yr~ CUrrently, they were only taking out dead and disease~ trees; no replacements were planted last year. Commissioner Eyerly said $4 million would pay for 6,000 to S,OOO trees planted over ten years, which equaled 2 percent replacement per year. In 1982, the city had established a tree program similar to the proposed APPA program which it had been unable to maintain because of the budget crunch~ lJAC: 12/02/92 ){s. Ralston replied yes. Both the APPA project and the 1982 proqr-alII included the removal of the old tree, I'urch,IJs8-of a neW" tree, and the service of planting the tree. co .. issioner Eyerly thou9bt the $4 million tor 6,000 to 9,000 City trees was anothe~ way to supplement the General Fund because the City had been unable to fund the policy it had establiB~ed in 1982. He asked how much money vas beinq transferred trom the Electric utility to the General Fund. Ms. Ralston thought it vas $8.5 million. Council Member-Cobb said the fiqt:.t"'e was $1C million tor the transfer in equity of all utilities. commie-sioner Eyerly said rent factors: and other charqes had not been considered in the fiqur-e. Although he did not 'Want to see the urban forest reduced.,. he questioned whether it was the Electric Fund's best priority since the General Fund had allowed. the reduction in the tree urban forest. The value of transfer-ring More money from the Electric Utility to the General Fund ~as questionable. Mr~ Young said it vas a poli~i issue. council Kamber Cohb said the issue ~rose because of the question about the transfer from the water Util~ty. Alternatives or ways of helping the Gener-al Fund were raised. Commissioner Eyerly had raised some important policy questions. Commission~r-Vejtasa questioned the costs on paqes 10 and 11 of the report indicating the cost of ~eedlin9s was $24,000 Which purchased approxiDately 30,000 seedlings for the entire program. Ms~ Ralston replied no. The .aMount -was for a total of 29,000 trees. The number of trees in the City program 'Was 12,600. Commissioner Vejtasa asked 'Who paid f':)r the trees put near the power plan~s, that go ty Neighbors Abroad, etc. Ms. Ralston said :many organizations hac large n-.imber-s of volunteers which the city was considering how to utilize~ The city might pay for the seedlings. Commissioner Vejtasa asked Where the co~t ~~s in the $4 million. Commissjoner Sutor ius said it 'Was in the $24,000. Commissioner Vejtasa understood Ms. Ralston to say it was not. Ms. Ralston said the $24.000 fer seedl in9s 'Was essentially an estimated fiqure. lllIC: 12/02/92 i9ge 4 -'..:;._ .................. _._=--..!.-- Com.iSBione~ vejtas& t-~ought Hs. Ralston indicated the $24,OCO was for City trees. The bottom line was, how many trees was the city qettinq for the $2',000. Ks. Ralston said basically about 5,000, looking at an averaqe cost ot $2.40 to $3.00 per trae. Some trees were donated, 6,000 to 9,000 were the trees to be incorporat~1. into the City's tree plantirt9 proqram, and 5 .. 000 to 10,001'} ware the 2··t'or-1. The trees did not all have to be planted within Palo Alto. The other lO,OOO vere divided up amonq other programs, Oax~ca, open space, etc. Chairperson Grimsrud asked whether the trees were included in the $4 million, or whether the $4 million inclUded all costs. MS. Ralston replied yes. Chairperson Grimsrud asked commissioner-Vejtasa whether it added up in ber mind. commissioner vejtasa replied no. MS. Ralston said the $24,000 figure represented 10,000 seedlings. commissioner Sutorius thought the number was closer to 15,000. CommissionerVejtasa thought there were a~inistration costs beyond the first two years yet administration costs were shown for two years, while advertising ana promotional materials were indicated for the full ten years. HE. Rale:ton said there was sOllie money in the advertising item; administration for two years involved $40,000 for the first two years, down to about $5,OOo/yr for occasional contracted work, secretarial, etc. Most of the work could be absorbed at that point. Commissioner vejtasa said the administration costs should show tor ten years rather than t~o. Ms. Ralston replied yes. commissioner Hoffner said the morE seedlings to other communities, sister cities I HeighborQ Abroad and power plants were discussed, the more uneasy he became, further stretchinq the program beyond the electric service area. Seedlings to other communities, whether i.amediate neiqhbors or not, should be re.m.o~..-ed from the program. There were other programs which could absorb the responsib~lity as enumerated. Reforestation surroundinq power plants was a proper function of the power plants themselves rather than the Electric Utility. To do the two further stretched the use of the Electric Utility funds tor somethinq totally out of the service area. He wanted to see those two item~ removed from the program. tII\C: 12/02/92 , \ com:issioner Sutor ius ~~Quqht there vas a very di~ect nexus for ~~e utility a.s it related to the areas it ohtained its resources. Although it ,..as impossible to designate exactly where Palo Alto obtained its power, oil, or gas because various ~esources contributed to the Electric utility, Pale Alto vasa fortunate to ha.ve a well-manaqed utility, obtaining-resources at competitive prices.. Palo Alto did not directly control 100 percent of its resources, e .. 9~, th.e coal-fired qener-ation facilities supplied power to Palo Alto via WAPA (Western Area Fower Administration). Palo Al to had. and would continue to have ail effect on the environment, whether in the region, nation I or world. Trees were Gn effort to offset some of the neqative factors ot how resources had and would continue to be generated. It made sense to use seedling opportunities to build good will in areas whic~ h~d very different te~peratures than Palo Alto, where the effects of fire had been devsstatinq, and where the effect of trees was very important to the environment. Seedlings going outside the serlice area made a proper contribution to the enviror.ment. It was a subscribablc eler-ent and he was pleased it had been incluaed. Chairper~on Grimsrud had been a non-supporter of the program but there were co_pelling arquments to suggest the value. However, it provided very little toIpover tol and. appeared a foree-fit for Palo Alto involvement. The utility-related benefits ot the program ''''ere very small compared with the cost. The increase in water dem,~nd on the ~hort-term created insecurities. Until the drought was over, the City should not increase its water usage ot"" initiate a tree program. The short-term impact on the utility in general could be neqative. It appeared a means of transferring funds troll!. the Electric Fund to the General .Fund to care for a proqram which was unable t.o care for itself t.~rouqh Public Works. He aqreed with Commissioner Eyerly that it was an important program and trees were illportllnt to Palo Alto l but -without being asked by Council to endorse a proqram which required a $4 million donation to plant trees for the Public Works Department I he baa a problem with it. He asked whether Finance Committee had formally referred the item to the UAC. Council Member Cobb thouqht the program was referred to the UAC but without direction, just to get your feedback. Commissioner SutoriU5 thouqht the policy' Services (P&S) Committee ref~rred it to the UAC~ Hs. Ralston said it was scheQuled for Finance Committee coneideration in ~anuary~ Mr. Young sai~ the UAC recommendation would he forwarded to the Finance Committee~ Chairperson Grilllsrlld th.ought t.here .... as a 4-to-l ratio between privately owned and city-o~ned trees. The impact of 5,000 trees would not consiaerably cbange the climate. There was a tremendous resource in privately-owned trees~ He 'Was more concerne~ about the • H :1 il j , 1 1 1 , , I I ::0,. : '". - ~·t·~:~_:;..:":.;r~_" ~" C'!~~f,~-· water Utility than tbe -tree utility". ~ -tree IRP" (Integrated Resource Plan) should be developed by the ~lic Works Department which allowed OAC lnvolvement. 1t.ssista1l.c~ could also be provided to residents to landscape their yards, pl~nt ~~tt~~ ~~ee~, etc. Private citizens expressed much inter-est in planting their own trees and could be encouraged to do so. Ms. Ralston said SMUD (Sacramento Xunicip&l Utility District; had a atewardship program where the tree was owned by the resident" they siqned up, adopted and took care of it~ Chairperson Grimsrud thought the APPA Tree Project made sense for !.ltilities like SiroD., Tucson, Salt River .. etc., because of the tremendous air conditioner load but was questionable for Palo Alto. Ms~ Ralston said Los Anqeles had otfe~ed the program for the CO2 value alene. Roseville 'Would be doing the program as well, Nationwide there were so many cities who sa~ the benefit to the program, the SMUD program was designed by staft from the California Enerqy commission (CEC), Carol in Threlkel, which is ..... ery definitely supportiv., and &he was still very actively involved in that. When asked what value she saw to the Electric Utility., Ms. Threlkel spoke much on basic responsibility and the opportunity -tor a utility to take an active role rather than a reactive role. A North Carolina power plant was approved for a utility on the basis of a promise to plant trees in the rain forest. It was better for a utility to be in the driver"s seat, determining where or how it would do something rather than bei~ forced by regulations, It was & nationwide movement~ There were cities involved which were very green ana pleasant, and not as hot as S~~rament~. The APPA Project involved long-range planning. Trees were viewed as part of the infrD.structure~ Chairperson Gri~srud said the tree prog~am was not cri~ical to the Electric lTtilit)' .. but was critical to the City~ Palo Alto already had a tremendous inventory of trees compared with many other cities and the program appeared a force-fit~ since the city was exporting mest of the 29_ 000 trees~ it did not appear to need them. Two (:lfferent parts of the. City qoverrunent should not be doing the same thinq. It was the classic government inefficiency question which bothered him. From an environmental standpoint, rather than plant trees unnatural to 1:.:.'le environment, $, million could be used to purchase an ancient Redwood forest for preservation. From an 6nvironmental standpoint., it might not be the b~st usc of the lionel'. Coaaissioner Vejtasa thought it was a terrific progr~ in concept and APPA had done a good job in taking the initiative. However, it might not be appropriate for Falo Alto, which could come up with its own proqram. A portion of the project 'Was related to aesthetics, but there were more things which could be done for the Electric utility with $4 million, if that 'Was in fact the cost, havinq to do with underqrounding, improving the aesthetics of sUbstations, etc. She aqreed 'With Chairperson Grimsrud a.bout lIriC: 12/a:zJ92 , , cross-subsidization in general and was uncomfortable including the proqr~1I in the elP (Capital Improvelllent Program). If council thouqht it 'Wss politica11:r' feasible And palatable, t.l-J.e tree program could bE included as another alter.ndtive to the $10 ml11!o~ reserve exce5S rather than rebating' it to customers, I!l more visible and straighttorward decision. .It" vas the kind of proqr&m the City should support at a difterent time, but it was not th~ reality of the day. Co.aissioner SutoriU6 said on~ of the day-to-day recurrinq negative impacts of the Electric Utility in Palo Alto was the way it vent after the trees in order to protect tlle lines~ The result vas that trees were butchered on one side of the street and not touche~ on the other. The consequence was the 1 ine-clearinq cost and abuse of ~~e existing trees. which had never been taken into account. Sad the city (i.e., the Utility) done the right thing by only paying the charge to have the line-clearing done~ The Slectric Utility had had an impact on the urban forest in Palo Alto as well as the forest in lIIany areas becaus~ of the direct and indirect supply sources. The air pollution benefits within Palo Alto, the benefits to the much discussed ozone situation, etc., were all fair nexus. There was much neqative nexus regarding electric qeneration and transmission industries throuqhout the world requiring a positive nexus. It was in harmony and simpatico with a city which prided itself as -Tree City USA,· having received recoqnition in the past. However, Palo Alto did not deserve the recognition at the presant time because of allowing the depletion and removal ot trees without adherinq to a sensible replanting proqram. Palo Alto's adaptation of the APPA program should be implemented beginning 1993, allowing an a~ditional planting season ahead of the lOath anniversary of the City giving rebirth to the commitment which ~&lo Alto had toward t~es. Knowinq there were vacant sites ana carry over sites, it would not make any real difficulty either with the Utility, Public Works, or Finance Departments to brinq forward the calendar tor the proqram, most particularly as it applied to the street tree program, because it was something the Public Works Department was knowledgeable about. N~IO.~ Commissioner Sutorius moved that the utilities Advisory commission support, endorse., and approve the. fo:nrarding of the American Public Power Association Tree Power Project to the Finance Committee with encouragement to consider acceleratinq the program by one ye.a r. MOTION FAILED FOR LAC]( OF A SECOND. Commissioner Eyerly said Palo Alto wa& an environmentally concerned comaunity and. it was knOWl"l worldwide trees were being cut too fast l resulting in problfems with the ozone. etc. Although the APPA program held interest fer Palo Alto, it should not be financed by the electric ratepayer. The other utilities had qiven too much to balance the Caneral Fund which had been an easy source of income. This program represented one-third of the cost of the City's street trees, which he did not support. 'There was merit in the 5,000 to j I I , I I 10.000 residential trees in t~e 2-for-l proqr-aDl, the Neighbors Abroad program, and the seedlings in the f ire area. To lIIupport the proqrams by increasing the ~tility rates vas aq~lnst his belief. Be supported Commissioner Vejtaaa's idea ot usin9 the .oney from the surplus, not from rates. Chairperson Grimsrud said the ratepayer atill essentially paid the price because the $10 million ha~ come from the ratepayer to the bank~ Additional rate incraases could be offset. c01mIisaioner Eyerly said in the past one or tvo times, surplus .oney had been returned to ratepayers and it seemed loqical to do it that VI!I:y, althou9h often the original ratepayer was no longer a utility user. Chairperson Grimsrud did not suggest a method of returning the money to the ratepayer. but cl~rified it was the ratepayer's money. cozmissioner Eyerly understood4 If Palo Alto was concerned enough about the environment and Council were bold enough to fund the tree proqram from the reserves, it had to be done out front and not through rate increases 4 Chairperson Gri'Msrud thouqht one of the proposals reduced: the rate increase the follo~inq year, but if the APPA program were implemented, the rate increase would be reduced less, e4g., rather than an B percent increase, rates could be reduced to a 2 percent increase, but with the APPA proqru, it might be a 4 percent increase. commissioner sutorius said $4 million would not be set aside in the bank for a program which would utilize only $250,000 per year over a period of ten years. Randy BaldschYn, Assistant Director Administrative Services, noted that this was a ten-year programl and the total revenue for the Electric Utility over ten years was over $800 lDillior.. So $4 million out of $800 million was a minimal rate iMpzct. It was a question of values: different values were being expressed by the different UAC members. Chairperson Grimsr'..ld understood the rate impacts were small,. but it was a policy issue. The policy issue Qi~ not change, whether i~ came out of the surplus or future rate5. It was the same iS5ue or the same pocket. The modification did not make a distinction. Co_issioner Sutoriu5 was very desirous that the APPA program move forward ~ith a positive commentary and ~ction associated with it. When the APPA program was proposed in June 19S2 durinq the budget hearings, it vas relatad to funding the reserves under the Water Utility while not h4vinq a significant impact on General FUnd transfers. The system Improvement Reserve (SIR) was the source for the initial year, representinq $250,000 for a program ~hich did not have total contents and was founded on a hiqher number of vacant " .... __ -f'>< ....... "'" .. , ... ""' .... """ .... _"""' aite. which was 6,000 on the com~uter but waa nov down to 2,460. Reliance was placed on the astytE judqment of the Fi~ance and P,S COlllJlittees ar_d, on & persona.l level, he strongly 8!.lpported t.he proposal. Comaissioner Eyerly said tree clearing on the electric lines opened an 4venue which should be explored as far as cost savings, e.g., whethf!r it lIlight be the Electric Utility for line-clearing or partly for whoever planted the trees, Public works l etc., but no figure had be3n provided. coami~sioner sutor ius said it was a b~dqeted item which was part of the ot"tset. Ms. Ralston said the City was currently budgeted f~r $175,000 but the cost was lower because of the drought end trees ,.rere not growing at the level anticipated. Public WorKS staff anticipated a 30 percent savinqs~ commissioner Eyerly understood the cost factor, but it did not all belonq to the Electric utility if the City repl~nted trees, etc. to eliminate cuttin9~ Ks~ Ralston said line-clearing costs, At'"o'oJ.nd $475,OOO/yr, were already budqeted in the operatinq budqet of the Electric utility. Eventually, close to a $150.000/yr savings could be realized in the Electric Utility from the expense for line-clearinq. which vas in the operatinq budget~ Line-clearing expenses Yere budgeted, and the ratepayers paid rates set at a level including the $475.000/yr. Beginninq at the fifth year there could be savings of up to 30\ whi~~ could continue after the ten-year program was completed, and no longer would be an expense to the Electric Fund. Commissioner Eyerly asked Whether staft had considered ~at the cost would be to remove the trees rather than trimming, since the cost a,,".eraged $300,000 par year for the trimming, etc~ Ms. RalstofJ. said that was .... hat the proqral:l 'tr'ould do. pa.rt of the 832 treoes were included fer removal and purcha:se. Chairperson Grimsrud got the impreSSion the~e was consensus that certain parts of the proqram vere ~esirable. commissioner vejtasa thought there could be a partial win. Chairperson Grimsrud thought it was a force-fit, just to obtain t~e reward of a pla~Je from APPA, and asked Yhat the downside was if Palo Alto customized its OW1l program which might no't be 29,000 trees. Ms. Ralston said all APPA required was the planting of 29,000 trees. Staff had full latitude as to what was plan~ed, where it was planted, etc. Seeds could not be planted, it had to at least be a seedlinq. l'9qe 10 '''''" ...... '~ ..... -- . ,-,'. ", - C01Il:!!isaioner vejta.a questioned why APPA vas the driver ra.ther than Palo Alto defining for itself what should be done to meet the objectives as outlined by ccmmissicner Sutcrius. Some of tile 8uqqestions applied directly to the utilities and a prOiram could be f~ahioned to allow th~ City to g~ About doing so in a ma~~er whioh the !lAC could support" Chairperson GriDSrud said Commissio~er Vejtasa's statem~nt was the reason he had &u99~sted an IRP fer trees. A co~parison could be Made to an outside entity requiring Palo Alto to build 1000 MW, even though it did not need 100Q MW. It w~s one of the issues vith the APPA program; he ~QS ~ot sur~ Palo Alto needed 29,000 trees. The cO!Dporlents were compelling and good, but the whole program vas not something he Gould subscribe to. Mr. Young saie! there was nothing aag.ical about the :fact the program had APPA's name. it was a concept which responded to a need and had been programmed to be added to or changed it decided. commissioner Sutorius suggested, although uncomfortable with the idea, because of the work which had been done and t.he elements which had been identified, portions of the APPA program could be chosen a.lDonq the ingredients which staff had identified for the particular progr~m. Chairpers~n Grimsrud was not comfortable ~ith doing so either. Commissi~ner sutor ius said another alternetive was to ask whether the UAC vas comfortable with the components and suggested a 15-or la-year span, rather than 10 y~ars* Chairperson Grimsrud thouqht a coll~borative effort between the Utilities and Public Works Departments to create a pr09ra~ which was qood for Palo Alto and allowed more feeaback from the UAC and Public Works concerning what wns acceptable, would add a comfort level~ There was the possibility the Comprehensive P14n would also involve trees. The APPA program was no~ specific in some ways and did not coordinate with trees in Palo Alto. Ms. -«alston said the departments of Public Works, Planning, and Finance had worked together with utilities on the ~~PA program4 Chairperson Grimsrud said some funding by the Electric Utility could be justified, but it was not appropriate to subsidize the entire program. It might be an issue which would be dealt with by the Finance Committee. The General Fund had a problem and it ~as not appropriate for the Electric utility to take on the whole problem. The question concerned what vas justified4 Commissioner .Eyerly thought staff, if it got UAC approval, would take the APPA program to the Fina"ce committee and then to council. There was merit to SOJ!l.e of the components of the program which should be revisited but which did not need to be through the APPA program. tI1IC: 12/02/92 Page 1.1 ',' ~ !I U f1 ! Mr. Young "aid Ms. Ralston had been responsible for qenerat,inq the City'. baEardious. 'Waste prograM. tor hOU8ehold1s~ Although she pulled .uch fire on the program it had been built up to a qood, strong, vJable activity and which had then been transt'err-ed to otner reeponaible parties. The Electric Utility could sponsor this proqraa as a gift to the Centennial celebration and look to the coaau."'lity for support. As to the commercial and indt.lst::-ial CU8tcmers contributing to the program with peraonnel activities, the City had already indicated interest, continued to support the concept, and could be developed as somethinq which the community did for itself. comaisBioner Hoffne~ clarified the Electric Utility would sponsor the program, but not fund it~ Mr. Young said soae seed money might be required during the first year or two, but with the recognition that the F.lectric Utility would back out financially~ would not commit to an onqoinq fund for the concept, but did want to get the job done. commissioner Vejtasa said the Electric utility could stay in at a level which took care of those ~rees which affected power lines as the first phase. She liked the community involvement aspect~ Mr. Y'oung said it would not be done 'Without a buclqet. There had to be sufficient funding to fund advertising, communication, record keeping, secretarial support, administrative d~tails, etc~t which required money for a program. It was a nominal investment in the overall concept. commissioner Vejtasa said it was a different program, byt one which vas perhaps more palatable than the APPA program. Mr. Young asked Ms. Ralston if she was interested in redesiqninq the proqram. Ms. Ralston requested soue direction. Chairperson Grimsrud said it was late fer the UAC to p4cvide much direction but one or two of the commissioners could work tiith staff. Commissioner Eyerly asked Council Me~r cobb whether staff should begin redesiqninq the program or whethe-:." it should qo to the Finance C01lllE!ittee .first~ The Finance committee could desire to .ove in an entirely different ~irection, Council Menber Cobb thought Commissioner Eyerly wss correct. It was unfair to ~end MS. Ralston down this path without so~e policy deci&ion~ MOr%a.: Commissioner Hoffner moved, Beconde~ by Eyerly, that the Utilities Advisory Commission forward the ~ruz.erican Public POlier Association Tree Power Project to the Finance committee for ·' i ! • , I ". IJ ~ 'I ~-I ;-; , i , I , , " ~ ! conBi~eratlon on the basis that foz ?th~r than the direct inappropriate. funcinq from the Electric utility, powe.r-related costs, would. be Chairporson Gr-imsrud clariti.v3, Commissioner-Hoffner wanted the action to indicate direct Electric Fund benefit, •• 9~, power line cutting', etc. commissioner Soffner said the APPA program would be forwarded to th~ Finance committee for their review, but the Electric Utility "ould not 1><>. the tundin9 activity for anythin9 other than its direct costs. commissioner Eyerly s!.id the Jlinutes w01Jld clarify sufficiently what the benerits to the Electric FUnd would be. Mr. Young said power plant 5ite~, etc., would fit into tbe category. Chairperson Crimsrud asked tor a clarification of Mr", Yeung's statement. Mr. Young said the City had gone into areas and disrupted them by putting a power plant in. Chairperson Grilllsrud clarified. it was an environmental externality. Co~issioner Eyerly said erosion should also be included. commissioner Vejtasa sai~ it should have been included in the cost of the project. council Member Cobb said. the issue 'Would 90 forward with all of the VAC's comments. One alternative vas to say -interesting program, we had a lot of comments, our CQmments are on the record, we ask you to wrestle with it for a while as an alternative.- Commissioner Eyerly preferred sending the program forward with the Electric Utility willing to support it. Chairperson Gr1msrud asked if the OAC indicated interestinq proqra.m and provided its comments, whether Committee would still get a copy of this to look at. it was an the Finance Council Kember Cobb thouqht the Finance Committee would qet the d.OC\ment regardless. The only difference was, it ~rovided the Finance Committee with more leeway. The~e were two elternatives# either to provide the discussion and ask the Finance comaittee to look at it or provide guidance to the Finance Committee on recomzendations~ Chairperson Grimsrud preferred to mOVE toward council Member Cobb's Buqqestion to provide the discussion and ask the Finance Committee to look at it because the Finance committee miqht interpret the " i tor. of the proposal aa being acceptabl~ to t~e UAC if he vote~ for it. The cost allocation was not correct., which, although dealt with in Commi •• ioner Hotfner's motion., he somewhat objected to the for. of the program as veIl. oounci~ Member Cobb vas aerely offering procedural nlternatlves. eo.mlasio"er Vejtasa had been in support of the program prior to hearing Mr. Younq'G comments about financin9~ She was in favor of -.rely ftendinq the APPA proqrdm ~orward to the Financ2 committee ~ith UAC oomaent. 1n the mlnute$~ MOTION ~Cn:D Bi' COMMISSIONER HOFFNER. Council Membe~ Cobb SU9gested one appro4ch would be to zove the iasue forward to ~~e Finance committee ~or consi~eration with the UAC co .. ents as noted in the minutes. -.o!':t~:. commissioner Hoffner Iloved that the APPA program be forwarded to the Finance Committee for consider~tion with the UAC comm~nts as noted in tha minutes. Commissioner Vejtas& seconded the motion. ~IO. PASSED 4-1; sutor ius -no.- COlUlissioner Eyerly thanked Ms. Ralston for all her work .on the APPA proj ect. tlIIC: 12,/02/92 -?-. ~-I -• " ... ""-* ~ "!F .,.-" ~ w I'8ge 14 -, " ,