HomeMy WebLinkAbout0160.094F
I
/
16
February 10, 1994
The Honorable City Council
Palo Alto, CalifD~ia
RlVtIl or qTILITIES ADVISORY C9XKISS;OH
Members of the Council:
".P9rl ip Brief
The City council adopted Ordinance 4027 on April 15, 1991 (copy
attachedJ establishing the utilities Advisory commission (UACJ. A
copy of the MUnicipal Code chapter 2.~3 is also attached. section
2 of 2~23.0S0 directs the City Manager-to report back to the
Council no later than December )1, 1993. The city Manager report
is to include, but not be limited to, any recom.1lendations for
amendments or modi~ications to the ordinance or related matt9rs~
This report responds to that direction but was delayed due to heavy
council agendas. The contents of this report have been shared with
the Utilitie5 Advisory Commission.
Baa:tqroypd
The CAe was established to advise the Council on long-range
planning and policy ~atters relating to the electric~ water and gas
utilities (Municipal Code 2.23.050) including resource acquisition
anq. development~ joint action projects, conservation and demand
side ~na9ement projects and programs, and enviror~ental concerns
arising from projects in these areas. The UAC also reviews the
electric, qas and water CIP, bUdgets and rates~ along with havinq
input and. reviewing legislative proposals, and review of major
plans fot" consistency with adopted plans and policies and makes
recommendations to the Council.
The five members ot the UAC are:
Fred Eyerly -
Carlton Hoffner -
Paul Grinsrud -
CMR: 160:94
First year Chair, 1991-92; 3 year -term
expires 6/94..
3 year term expires 6/94.
Second year Chair 1992-93; served two
year term. Reappointed 7/53 to 3 year
term, expires 6/96.
1
<--""
•
....
Jack Sutor ius -Replaced Mark Chandler in 1992. Term
expires 6/'34.
J<atherine Vejtasa -Current Chair of UAC. Served two year
term~ ~eappointed 7/93 to 3 yea~ term,
expires 6/96.
Council Liaison -Mike cobb (199J)
Council Liaison -Dick Rosenbaum (1994)
Staff Liaison -Edward 3. Mrizek
The first Uil.C .J!1eetinq was held em August 7, 1991. Regularly
scheduled meetings are hald on the first Wednesday of ea~~ month at
7:30 p.m.
Four Joint council/UAC meetings have been held since the UAC was
established: 11/7/91; 4/27/92; 6/2/93 and 10/4/93.
Actions and Effectiveness
Sincift their first meeting on August "'], 15:91, the UAC has put
considerable effort into its task. All of the UAC members are
highly ~otivated and have varying degrees of background related in
one way or another to utilities or utiIity activities. This puts
the CAe in a position of having the technical expertise to provide
coun~il with input by a Commis6ion knowledgeable on various utility
i.sues. However~ this also places an added workload on dtaff due
to the greater length, frequency and depth of review of utility
prcqreas requiring extensive presentation of staff's analysis and
aethods in addition to the results and impact of plans, projects
and policies.
The UAC normally meets once a ~onth ~nd has to date held 29 regular
... tings, 4 joint meetings with the Council and 6 Workshops/Study
sessions on a variety of items. Both the UAC and staff benefitted
by the •• study sessions on developing lonq-ranqe planning dOCU4Dents
end programs. EXamples include:
... Tbe development of methodoloqies "Ilsed to perform the IRP supply
and 4a.and side analysis and how to measure the results •
... Principles of utility ratemaxing and reserves •
... Power pooling issues and Falo Alto's participation.
... Western Resources.
A review of UAC actions during ~~e last 28 mcnth& (Attachment B)
reveal. UAC approval of the majority of staff recommendations"
.ubGequent to an early disaqreement bet~e~n the UAC and staff on
bow to handle the NCPA gas procurement project and the inherent
QIR:160:94 2
•
•
."
STtG --steam Injected Turbine PrcJj ect. Many of the actions taken
by the UAC occurred only after an in-depth review ot the \!Iork
performed by staff. This has been a time-consuming process on both
t.he. part of the UA,C and staff.
Difficulties have arisen in communicatinq the UAC actions to the
Council in a ti~ely manner~ Budget schedules did not allo~ time
for the CAe cO}lUnents on the FY 1992-94 Utilities Budget to be
presented to the Finance committee in writt~n form. Imp~ovaments
were mad.e during the FY 1993-94 Interim Sudqet process., through
special work&hops and Budget Meetings~ arid. an "Action" memorand..um
waG provided to the Council from the UAC on their Budqet
ReCOlllmendations. However, UAC meeting :minIJ.tel; 'Were not available
for the Council 8udget Session. communication format ana
ti~eliness that is responsive to council's needs have been high
priorities yith the UAC and staff. Several chanqes to highlight
t.he UAC actions on policies and issl.les have been incorporated in
both the .inutes and staft reports.
The ordinance establishing the UAC is speCific in excluding the
daily operationji of the utilities as one o.f the Commission's
d.uties. However, both the UAC and. staff recognize that the
commission must be familiar with thQ utilities operations to the
extent that the UAC can accomplish their review of the Budget and
CIP.. Sessions have been held on the existinq Infrastructure
Program and possible other infrastructure needs., such as ~dditions
to meet ~rgency Water Supplies. In summary, it is apparent that
the UAC bas proven its effectiveness and value in dealinq with the
subjects that came before it. This is due both to the dedication
and quality of the members of the commission~ In achieving these
quality results I there has been a direct impact on stafting. The
Commission has had the need to receive more information and support
than vas projected. This has negatively impacted staffinq
priorities on other lsgues. There is a clocumented need to make
staffing adjustments in order to accommodate the needs of the UAC .
.It is also acknowlsdqed: that the UAC is experiencing a learning
~~; but as membership turns over, that element will remain to
some extent.
Communicaticns between staff and UAC, and UAC and council continues
to be an area where improVEment will be the objective. UAC is most
anxious to submit quality information to the Council and to achieve
that qoal, the Commission still has the need to provide detailed
lIIIinutes and. reports to the Council. Staff will continue to monitor
the communication issues~
AS CAe deals with its charge, they have felt the need to have a
better grasp of the operation of the utilities Department; and that
is understandable. It is, however, totally inappropriate to have
this body be~ome involved in the operation ot the Utilitie&
Department. The Utilities Department is cn~ of the departments
a1R:160:94 3
..
/-:,"'
l' ·.:~.,,/c·,
., ......
which is the responsibility of the City Manager. This
orq~nizational structural integrity cannot be maintained if one of
the de.partment.s has. a. Commission involved in its operational
issues. Operational decisions must be made in conce:t with the
entire structure ot the City. Additionally, the OAe has a full
ranqe ot responsibilities as i~ existsj and it is inappropriate tor
new areas of respon~ibility to be added to their duties.
As An advisory body with the current charge of responsibilities,
the UAC i& becominq en invaluable resource to staff and Council.
The body is still in a lea.rninq cur-... e. The impact on staff has
bea~ greater than expected$ but the result of the staff product
with UAC involvement is worth the investme!lt. statf adjustment
needs to be made, but NO changes in the scope of the relatively new
commission are recommended.
The in-depth study required by the UAC to provide the Council with
information on long-range utility planning does carry a price tag.
Last year utilities Advisory Commission operatinq exp~nses,
excllldinq staff time, were approximately $30,000. No additional
staff has been added, but this has placed a heavy work load on the
Director's immediate staft$ the Resource Planning staff and
Rate&akinq statf~ Reports I special study &ession~$ aqenda
planninq$ packet prepa~ation and distribution required
approximately 840 hours of staff time annually to support the OAC.
This is equivalent to $21,000 based on costs for a staff secretary
salary and overhead. These e.xpenses de not include staff time
spent to prepare and present reports at the UAC meetings.
As a result of the not.ed impact$ the 1994 Utility budget will
include a request for financial and staffing adjustments in order
to .set the needs ot the Commission. It is not anticipated that
the request will be a major cost item.
Future Issues
The future of all utilities in Califo~nia, including the Palo Alto
Municipal systems ~ill depend on competition. The utility
industry continues to encounte::-changes at an accelerated rate~
Leaders in the industry and government predict there will be as
many changes betlMeen 1980 and 2000 as occurred during the first 80
years ot this. century. Re.c-ent regulatory chanqes, resulting in
deregulation of the natural gas industry, confirm the acceleratinq
rate of chanqe. The l.egislative and regulatory changes req'...lired to
effectively deregulate electric service are occurrinq at an ever
increasing pace. There is an increased focus on environmental and
social issues, rate-structure des.igns arA ott,er efforts to minimize
peak demand and ensure energy and vater conservation.
CKR:160:94 4
/
The first Electric Integrated Resource Plan vas completed and
approved by the UAC on Decemher 2, 1992. Plans were to update this
plan every two years and particularly in conju!;'ction .. ith the
western Area POl;{er Administration (WAPA) ¥.arketing Pl,em, which
started late in 1993. Requirements by WAPA and other regulatory
bodies may require annual or even shorter term updates of the IkP.
Demand Side Management (OSM) plays an increasing role in the City's
future energy supply. These changes must be carefully follow'ed by
staff and the UAC. Attachment a is a tentative 1994 UAC Meeting
Aqenda. This list 'Will increase as budget schedules and other
is~ues contin~e to develop during the year. Most of these items
require considerable analysis and review by the UAC and staff.
Staff sees the utilities as an evolving and dynamic part of the
City. Many chanqes are emerging in future, including the
possibility of adding a utility a The UhC has a hea.vy 'Wcr:.tlo~d
ahead of it. It is fortunate to have the commission available f~r
ad-·.riee as staff moves fO.n;a.rd and. plans for the future _ The
'Workload. 'Will increase for staff and the Commission, and that
participation is essential. It is also another majo:'" re:ason 'Why
the Commi5sion should not expand its area of ~esponsibility.
Additional RAe Assign~ents
At the June 2, 1993 joint Coun~ilJUAC meeting, Council requested
the city Manager to provide information on the following questions:
1. What 1. th. ratioaal. bebiD4 having the R.qioDal water QUality
COntrol Plane (R_QCPI in tbe PUblia Work. oepartaent when at ODe
t1ae it va. h~u.e4 in tbe ~tiliti.s DepartBeot1
Prior to 1989 the RWQCP was under the Utilities Department. This
orqanl~ation existed for many years and, in earlier years; operated
effectively. Durinq the 1970's the Palo Alto Treatment Plant vas
expanded to ~e present Rl4QCP.. At that time, funding for the
expansion came not only ~roa Palo Alto, but also from the plant's
partners (Mountain view, stanford# Los Altes t Los Altos Hills ana
East Palo Alto).
During the 1980's regulatory requirements from regional, state and
federal agencies focused on environmental issues pertaining to
refuse and wastewater disposal in the bayland& and the shallow
wc=.ters of the south San Francisco Bay. This increased the workload
and coordination de~ands on the Utilities and Public Works staff.
Public Works staff was respOnsible for environmental compliance i!nd
controls for ~efusel storm drain. and all public lands. utilities
was responsible for the RWQCP and the effluent into the bay.
Manaqement evaluated the needs and ability to comply with the many
environmental issues and determined that a single departmen~ with
expert staff was tne best approach to handle these issues. This
resulted in centralizing staff in the PUblic Works Department.
CKR:160:94 5
•
'). cc,
,'.' .. ~,.,
During the past five years, the appropriateness and efficiency of
this organizational structure nas been f~rther reinforced as
Federal and state mandates have placed an increasing level of
importance on storm water discharge quality standards~ The
reqional approech to water quality in the Bay now requires
inteqration of RWQCP and Storm Drainage discharge standards and.
their environmental co!!\pliance programs. These activities noll/'
share co~on staffin9, e~~ipment and suppcrt services in the Public
Works Department. With the mandated water quality standards fer
the Bay now requiring an annual cap on tt,e total amount of
polluta.nts 'Which can be discharged from both treated sanitary
sewage and storm drainage com..bined, it is imperative that the two
programs operate under an integrated management structure in the
same depart.ment.
The Household Haz:&r-dous Wasta program.. a program aeveloped and
opera,ted for several years by the Utilities Department was also
transferred to the Public Works Department. since the focus of this
program is also environmental p~otection.
This"decision leads to a second questi~n: Why does the wastewater
Collection system continue to reside in the Utilitie$ Department?
Tbe four Utilities, Electric, Water~ Gas and Wastewater~ connect to
customer homes and business buildings. Utilities staff is trained
and ~orks daily with customers on service needs. Utility staff is
al&o organized and trained to perform work in more than one utility
area. Examples include cross tr-aininq of enqineering and
operations to operate, maintain and construct water, wastewa.ter and
gas systems. This cross discipline traininq has beer. cost
affective and ~llows greater flexibility of statf. Utility field
and office customer service representatives provide efficiencies by
r_sponding to c~stomer needs in all utility areas. Relocatinq the
Wa.ste'.fater Collection staff to Public Works ","ould greatly reduce
thes~ efticiencies~
2. When the UAC vas formed~ cons.nays hAd bean to beqiu with three
utilities, Water, Gas an4 Electric. x. it time to move beyond the
three utilities and inc1ude .a8te~ter? What are tb. positive and
negative aspects of OAC i.nvolv ... nt. wit.h the •• at.vat.er Utility'?
When the CAe was fo~ed, the question of which utilities should be
included in the purpose ana c1uties focused on three utilities;
electric, water and gas. These three utilities have similar long
ranqe planning issues including the following!
1~ The electric, water and qas utilities have an annual transfer
to the General FUnd based on a specific rate of return~
r.MR:160:94 6
/
:2. The electric, W'atar i!:Ind gas utilities must acquire and develop
alternate resources.
3. 30int action projects are becominq more common in the need to
acquire resources.
4. Conservaticn ana de~nd management play an i~portant role in
the future electric, ~ater and gas acquisition mix tor Palo
Alto.
For the 13st two ye3rs, the UAC has concentrated their efforts with
the Otilities staff in the development of the first Electric
Integrated Resource Plan (IRP) approved December :2, 1992, the first
Gas IRP, scheduled for approval early in 1994 and the first Water
IRP approved by the UAC on October 6, 1993~ Other major policies
and issues over the last two and one-half years included the NCPA
Poolinq Agreement, Reserve policies and the annual review of the
CIP and Budget.
Future UAC activities outlined in the previou5: section of this
report are extensive. As external agency activities increase in
nuaber& and in significance; as rates, reserves and other
requlAtion poliCies increase; and as customers have more choices of
energy a.lternatives; UAC activities will acce.lerate. Consideration
of additional assignments for the UAC at this time will place a
constraint an their available time to concentrate on current
assignments. Since the RWQCP Reclaimed Water Proqra~ has a major
effect on the resources, costs and rates in the water Utility, the
UAC must be involved in this project. other than this project,
staft" does not believe it is time to assign additional duties to
the UAC.
POSITIVE ASPECTS OF UAC INVOLVEJ<E)IT WITH WASTEWATER TREATMEN'l':
* Provi~es UAC review of long-range planning issues and budgets in
four utilities providing service to palo Alto customers. The UAC
vould not be involved with the other two utilities (refuse and
storm drain, althouqh the non-point source program will involve
both the storm drain and wastewater utilitiesJ~
* Provides the UAC with direct re~iew and input on the Reclamation
Proqram and its effect on the Water utility and rates issues for
both vater and wastewater.
NEGATIVE ASPECTS OF UAC INVOLVEKENT WITH WASTEWATER TREATMENT:
* The UAC currently has a full agenda. This work load will
increase during the next decade .
• The wastewater reclamation involves two d~partments; Utilities
for Collection, and Public Works for Treatment.
OIR: 160:94 7
·,
I
I ,
" .. >
11' The RWQCP involves several partners. u.~c involvement must te
restricted only to Palo Alto Wastewater issues.
3. What 1. ~h. ourrent vorklcad beinq carried and how much tia. is
required by both the OAC and ataft viewpoint?
Each meeting and workshop requires statf preparation of agendas,
presentations, reports, minutes and the necessary coordination 'With
other aqencies ~nd departments designated on each aqe:nda~ No
a.dditional staff has been I!I,dded to accomplish these tasks. For
five. months a contract employee was hired to -coordinate the
agenda, minutes and packet for the UAC.. This was not effective.
CUrrently the Utilities Director and his imlllEdiate staff, with
support from other division secr;!;taries, prepare the agenda and
packet. A staff review is in progress to assign a member of the
staf~ the coordination responsibilities for coordinating UAC
activities. The results will be included in the 1994-95 budqet.
B""'"
The UAC and s.taff have. undergone a learning process of working
together. Because of the complex issues involving lonq-range
planning and the rapid changes in the utilities industry, no
additional duties should be assiqned to the UAC. Staff will review
the RWQCP Reclaimed Wa~er Project 'With th$ UAC. Staff viII
continue to be sensitive to other projects which may be of int9rest
to the UAC, but, by definition, do not fall in their purview. The
UAC and staff vill continue to develop cOmDunication efficiencies
to be responsive to Council needs.
The CAe has proven to be a valuable resource and should be
acknowledged for its contribution. Staff will continue to provide
required support and recommends that the city Manaqer provide a
second review of the effectiveness of the UAC t along wlth any
recomaendations regardinq the Commission, in connection with the
1 95 budget.
mitted,
tYllanaqD
Attachments • Ordinance No. 4027 establishing the Utilities
Advisory Commission.
cc: UAC
CMR:160:94
B. Administrative Code Chapter 2.23
c. UAC Actions
D. UAC Tentative 1994 Agenda
E. tJAC/Water Reclamation Review SchedQle 1994
8
\
ATTACHMENT A
4(J 2 i ORDINANCE NO. ___ _
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING TITLE 2 OF THE p~ ALTO MUNICIPAL CODE
~ADKINISTR~TrvE CODE) TO ADD CHAPTER 2~23 ESTAE
LISHING A UTILITIES ADVISORY COMMISSION
WHEREAS, the city of Palo Alt,:, provides electric, gas,
water ;ulQ ot...'ler utility :;ervice:s 1;0 its residents and ocher
customers, and
~, utility matters often involve complex, technical,
environmental, fL,ancial and other considerations, particula.=ly
with respect to electricity, gas, and water ecmmodity purchases,
and
WHEREAS, t."le city Council has determined that operation and
management of the city's electric, gas, and water utilities .ill be
improved by establishment of an advisory commission with responsi
bility to review and advise the City council upon specified utility
planning and policy matters.
NOW, THEREFORE, the Council of the City vf Palo Alto does
ORDAIN as fo11ows:
SECTION 1. Chapter 2~2J is hereby added to Title 2 of the
PalQ Alto MUnicipal Code to read as follows:
seetio~:
Chapt.er 2.23
OT%L%T7ES ADVTSORY COXHIssrow
2.23.0~O
2.23.020
2.23.030·
2.23.040
2.23.050
2.23.060
Membership~
Manner of Appointmen~~
Ter::n 'Of office.
Officers.
Pwrpose and duties6
!t4eetillqs.
2.23.010 Membership. There is created a utilities
advisory commission composed of five members who shall be appointee!
by and serve at the pleasure of the City Council, but ~ho shall not
be Council Members, officers or employees of the City. Each member
of ~~e commission shall be a utility customer or the authorized
representative of a utility ~~stomer. Four members of the
~ammj~sion shall at all times be residents of the City.
2 .. 2.3.020 tiocmer o~ .appoi.ntllent. The following p:::-ocedures
shall be ~ollowed by the city Council ~hen filling vacancies on the
utilities advisory commission.
(a) Following notification of vacancy or pending vacancy
on the utilities advisory commission, the city clerk shall
advertis~ the same in a newspaper of general circulation in the
1
City, including 'C~e council,aqe:1.ca digest., -::our -::imes :Ji':.:1i;, 'C ... ',:;.
"..reeks.
(:0) Writt~n ncmin~tio~s and applica:':_icns shal: bE<
submitted to th~ c.i ty clerk .,..i thin suc!l -:. ..... o-w~ek period ~o be
for.rarcled. to the ~ity COll..'lcil tor its consi;:3.eration. Notwit,'1.st.a~d
ing the for~going~ if the nomination or application of an inc!..l.r:U:'€:1t
commission member is not submitted to the city clerk ",,-it."1i:1 ~he
period submitte.d abov-e. said. period shall be extended for a."'l
addi tional five days during 'ioiI'hich the city clerk shall accept
_~itten nominations and applicatjons of nonincumhents4
(c) Tbe City Council shall review all nominations a7lC
applic3.ti~ns and conduct such i:"l:t'-e:r...-ie'Ws as it deems necessary
prior to selection.
(d) Final selection and appoint~ent shall be made by the
City Council at a regular City Council mee~ing after the period for
sab~ittal of nominations and applications has expired.
2.23.0JO Term or offic.. The term of office of ee:ch
member shall be three years or until his or her successor is
appointed 4 The initial terms of two members shall be three years/
cOZll:l!Ceneinq on July 1, 1991. The initial terms of three ether
members sha~l be two years~ commencing upon July 1, 1991.
Thereafter, the commission appointments shall be staggered so that
in each three year cycle two meml::'.le1:S are appointed one :i'ear ~ three
members are appointeQ the next year, and nO members are appoin~ed
the next year.
2.2l.e40 Officers. The commission shall elect one of its
me.mJ;.ers chairperson 4 The chairperson shall hold office for one
year and until his or her successor is elected, unless his or her
term as a member of the commission expiras earlier4
2.23.050 PurpQse and. duties. (a) The purpcse of the
~tilities advisory commission shall be to aovise the City Council
en long ranqe planning and policy matters relating to th~ electric,
gas and water utilit,ies .. excluding daily operaticns.
(h) The utilities advisory commiss~:ln shall have the
following duties:
1. AdviSe the City Ccuncil on planr,ir,g and policy matters
pertaining to:
a. Acquisition and developmen~ of e1ectric, gas and
water resources~
b. Joint action ~rojects with ot~er public or
private e:1tit.ies which involve el-ectric~ gas or wate.r resources.
c. Environmental i~plic~tions ef electric, gas or
water utility projects4
2
.r
I ' .
j"' . ..... ' c. __ ·_-_...A.
d. C'onservatt:;n a.nd demand :nanag£re:ent.
'2. Revie~.r and -make re-comJ't<endat.ion:s t.o the City Co'.:.ncil
on the consis-eency 'With adopted plans and pclicies af major
elec~rict gas ~r water utility proj2cts.
3. FOrDulate and =eview legislative proposals =egarding
electric, gas and vater utilities~
4. Review the elect~ict gas, and water utility capital
improvement programs, operating budgets~ and rates, and thereafter
forward any comments to the finance and public 'Works committee or
its successor ~
5. Provide advice upon such ot~er ::natte.rs 2'.s the City
Council may frcm ti~e to t~e assign.
The utilities advisory cO!!lJll.issicn ~hall not have t.."I4! power or
authority to caus.e the expenditure of City funds; c,r to bind the
City to any written or implied contract.
2.23.050 xe.tinqs~
regular time and place of
regular :eeting per OZIonth.
(a) The commission shall establisb a
~ee.ting and shall h.ol~ at least ol"e
(b) Three of the five m~ers shall ~onstitute quorum~
(c) The commission may e!s~ablish rules and pro~edures
governing the conduct cf its meetings.
(d) The commission shall be subject to the Ralph M. Bro~n
Act, Cali£ornia Government Code section 54950~ gt sec.
SECTION 2. In oreer to assist the City Council in an
evaluation of the effectiveness of the Utilities Advisory Commis
sion, the City Manager is directted to report to the Council on tJle
status and. fu.-.,.ction of the Commission. The City Manager's report
shall be presented to the council in approximately t'Wo and ene-half
years, but no later than December 31, 1993, and snaIl include, but
need net :be limited to, any recommenda.tions for amandments or
:iIlOdificat.ions to this oreinance or related matters.
SECTION J ~ The City Council declares that the individu-
als appointed to t~e office at utilities advisor: commissioner are
intended to represent and fu~~er the interests of residential and
non-residential utility customers~ and that such representation and
furtherance will ultimately serve the public interest. According
ly, the City Council finds that for the purposes ot persons who
held such office, the non-re.sidential utili t.y customer class is
t.antamount to and constitutes the public generally wi thin the
meaninq of section 87103 at the Government Code.
SECTTQN 4.
ordinance is exempt
mental Qua 1 i t Y I-.c't
T~e Ci ty Council hereby finds -.:hat t.his
from the provisions of t~e California Environ
pursuant to Section 15061(b)(3) of the state
3
C:£QA Guidelines because it can be se:en w-ith cert.ainty th;lt the1:"e is
no possibility of significant envi~onme~tal effects oc~urrir.g as a
result o! the ordinance.
SECTION 5.
the commencement 0 f
3.doption.
This ordinance shall become effe-ct.i ve :lpon
the thirty-.f~r5t day after the day of "its
INTRODUCED: April 1. !991
PASSED: Ap-.:il 1.5. 1391
AYES, A~derse~. Fa2z1n~. Kniss. L~~y. HcC~~n. Renzel. Sutorius. Yoolle,
NOES:
ABSTENTIONS:
Al!SENT: Cobb
APPROVED:..L,. • ~~'"
•
I . ,
.. ,
:'~'-':~
ADMINlS!'RATIVE CODE
ATT AC f'..M.ENT B
2.23.050
CI!APTER 2.23
UTILITIE, ADVISORY CO~L\1ISSI0N
1.2.3.0tO Membership.
There is c~ate1:1 a u,iliLies: ad .... L<:,Qr)' commission
compos~d of five mernbeC5 who Sh3!1 be
appointed by Mid serve at the plea.5:J re of the city
COll!tcil. but who shaI.l not be counC:l members.
c.fficers or employees of L""le cit)'. Each merr.ber
of the:: commj.ssiOI'1 sh.ill be a utiliLy customer or
ttw: au.thori!.ed representatiVe of a utility custOmer.
Four members of me rommission sharr ar !I..D timr..i
be =idena of rlle city. (Ord. 4027 § 1 (pan),
1991)
2.23.020 Manner of appointment.
The foOowicg procedures sha!l be foDowed by
tht city council wben fHlillg vaeancies on the
UIl1ities advisory commission
(a) Following notific~tion of v.lcancy or
pendini ncancy 00 the utilities advisory
commtssion. the cit)' clerk. shall advertise the
SliDe in a newspaper of general circulation in the
city, .includini tile council agenda digest, four
limes within two weeks.
(b) Written DOminations and applications
sJlaIl be submitted to the ciry clerk within suc:t
two-week period to be. forwarded to the city
coonciJ for its oonsidemioo. Notwilhstandir.g <be
fo!eiOina. if:be nominatiDD or application of an
incumbcrtt COft!1Dissj(m, member Ls not subc.Jitted
10 the city clerk wilhin the. pe...pjod submitted
above. said period stWJ. be ntended for an
additional five days during: whictJ. the city clerk
shall ~ wrin.cn nomtnatioos and applicatior...s
of nonincumbents.
(c) Tht city couocil shall review an
nominatioro..$ :mel applications and Cond~ct such
intervifl!W5 as it deems necessary prioe to
selection.
(d) FmaI selection and appoin:mc:!lt .sh ill be
made by the ciry cour.cilli:% a regular cit}' council
meeting after !.he period fo! 5ubmitCil.l of
nominations aro appI.Jcatior.s bas cltpired.
(Ord. 4027 § 1 (pan), 1991)
242.1
2.23.030 Term or orne-e.
The (err!) "f office of ~ach member shall be
tr.rec years or umil his or her suc.cessor is
appoirued. The i.'1.itiill terms of twO members shall
be three years, commencing on Jul)' I. 1991.
Tbe initial terms of lfUtt other members shaD be
t'lkO yea~. commencing upon July 1. 1991.
"Theruftc r. ~ corr.!lfti.ssion appoiIlt:nents shall be
suggere.d so l~aI in eac..'l t.'lree year cycle tJrfO
members are appcimed one yar. three members
arc a.ppolnb:d me: neJ::[ year, and no members are
appointod Ih< ,."" year.
(Ord.4027 tl (pan), 1991)
1.13.040 Officers.
!be cornmisslon.man elect ooe of its members
ct".airptmn... The ch.airpe!SOn.shall bold office for
one ~ar and until his OTher m.cces:sor is ~d,
unless his or her term as .a member or the:
com..rnis..~n expired ea.-fier.
(Ord. 4027 tl (pan), 1991)
2.l3.050 PurpoS'!! and duties.
(01) The purpose of the ;.uilities advisory
commiss!OQ shall be to advise tbe city council 011
kJq '""II" pllMinJ mI policy"""" .mung.,
the clc.."'tric. gas and water utilities. excludiI'jg
ilailyoperations.
(b) The utilities advisory coaunission shaD
have !he following duties:
(1) Advise !be city coundI on pIamUr.a an<!
policy ....... penaining'"
W Acquisition and dcvclopme:u af
electric., gas and watu resourc:es.
(8) Joint action prtIjects with other public
or private entities which involve electrit:. gas or
water .resoun:es.
(C) Environmental implicattons of
electric.. gas or Wiler utilirt projeds.
(D) Conseoiltion ana demand
mlIflB8emen!.
(2) Review and make ~commendations [D
the (ily council on the aln5istency with adopifd
plan:s and policies of major decl'ic. gas or water
utility projects.
2.23.060 PALO ALTO MUJ',lClPAL CODE
(3) F01lT1u!ale and review legislative
pro~sals regardin.s eiectric, ,as and w.atc:r
utilities..
(4) R.e ... iew d':e eJecuic, gas, and waU'.'r
utility capital improvement programs. openeng
budgelS. 2nd rates, and thereafter fOf"Vlard ill}
comments to me finance and public wolics
commia.ec or it') sucoe:ssor.
(5) Provide adYiceIlpOll such o<l!a' man=
as the dty comx:il lnZy froct time lO time assign.
The utilities advisory commission shall not
have tht-poftr or autbority 10 cause the
.. pcn& .... 0/ city 1Ilr.ds or 10 bind !he ci!)!10 any
-Of impIie<I 00Il!t1<I. (0n14027 i I (pan).
1991)
l.23.D60 Me.Uns ••
(I) '!be CMlmjrjgn dlaIl _ • roJYlar
time mil p!oce o/mceIfnIlDd _ bold at least
.... ~JDeOIiD&pe<mmD.
(b) n..e o/!he live !IICII1bm sIIaII coostiJu:e
quorum.
(c) 1'be. oomm;ai oo may estIhIish nW..I m:i
pmccdlaes jO ........ Ibe CDIlduI:t 0/ i<s lDOIOIings.
(d) '!be. CM1mi ...... _ be 5Ubject 10 !he
Ralph M. Bm ..... Acr. califomia (3ov,mm<1ll
Code _ 54950 •.. ""I.
(On!. 402711 (patt).1991)
2412
---. ----
.' UAC ACTIONS ATTAClIMEliT £
10/16/9.1 UAC recommends that the Resolution on the .il.ules of
Procedure be approved.
MOTION PASSEO~ 5-0.
11/06/91 U~C recommends to Ci~y c~uncil adoption of Staff
recommendation regarding Settlement and Interconnection
AqrQements bet~een PG&E and NCPA (CMR 481:91)
MOTION PASSED: 4-0; Vejtasa absent.
~~/06/91 UAC raCOMmen~6 to City Co~ncil acceptance of stafr
recommendation reqa~d!n9 the Northwest Resource Third
Phase Agreement and the Enerqy Sale A9reem~nt Between
NCPA and Bonneville Power Administration (CMR 482:91)
MOTION PASSED: 4-0; Vejtasa absent~
12/04/91 OAe recommends the city Council not enter into the Third
Phas9 Aqrcement for the Natural Gas Proccrement and the
Staff recommendation be rejected. {CMR 480:91,
MOTION PASSED: 4-1~
1./0'0/'92 (rAC rec01I!D;ends that the City council approve. and adopt
the urban Water Shortage contingency plan and amend the
1990 urban Water Kanaqement Plan by adding the amendment
to it in conformity with ABl!. In addition, while it is
not. consistent with the goal of working together in a
regional wat.er sbortaoie situation for Palo Alto to
unilaterally neqotiat.e an arrangement to purchase
additional water for itself on a short term basis, we
should work cooperatively to help develop a water
marketplace which could provide for additional supp1ies
of water in the reqion.
MOTIOli PASSED: 5-0. ..
2/04 i 92 OAC re.commends acceptance of the first draft of the 1992
Electric Demand-Side Management Report., which will be
used tor Integrated Resource Planning.
MOTION PASSED: 4-0; Vejt&sa absent~
2/04/92 UAC recol:lJDends the letter to the St.ate DepartlDent of
Health Services in substantially the fOnD submitted, but
with an indication that Palo Alto reserves the riqhts to
review o~ior.s to modify the law in ways yhich did not
affect the health and sa~ety of the public.
MOTION PASSED: )-1; Hoffner Rno·, Vejtasa absent.
4/01/92 UAC reco.d1Dlends statt begin publicizing in the ~
Tribune on the Tuesday prior to the Wednesday m.e.eting the
UAC agenda fer the monthly meeting and in the week's
prior Palo Alto Weekly.
MOTION PASSED: 3-1; Hoffner -now.
4/01{92 UAC recommends that the Conversion to Natural Cas
project remain in tbe budget, ~t revise the ~iqures to
show the Pacific Gas and Elec~ic rebate.
MOTION PASSED: 4-0.
5/06/92 UAC recommends through staff to forward to the City
Council both the Executive Summary and the full minutes
of each meetinq.
MOTION PASSED: 3-0; Eyerly absent.
7/01/92
7/01/92
7/01/92
UAC recommends acceptance of staff's recommendation to
participate in the Seattle city Light Energy Exchange at
9 to 11 Mw and to. give stalf the option to pursue above
11 M~ if economic~lly viahle.
MO~ION PASSED: 4-0.
UAC r~coromends acceptance of staft's recommendation not
to pursue staall'l Injected Gas Fueled Combustion Turbine
Project~
KOTIC~ PASSED: 4-0.
UAC recommends acceptance of staff's recommendation to
pursue D~mand Side Management at Level 2 at JO M~.
MOTION PASSgo: 4-0.
9/02/92 UAC recoDlme.nds they conmunicate .ith the City Council
that it had reviewed the question of Palo Alto Unified
School District and City Departments I ... ater rates and
determined that the rate schedule and the Baseline
ConsLJ.mption Allowance process appeared to be working
effectively and equitably, a.nd the adjustment oppo't'tunity
was viable, and recommended no changEs in t...~e current
schedules or supporting materials.
MOTION PASSED: 4-0; Grimsrud absent~
11/04/92 UAC recammends that staff provide the UAC ..... ith an
informational workshop, ~hich includes outside agencies,
en the Water Integrated Resource Plan and broader water
resource issues.
MOTION PASSED: 5-0.
12/02/92 UAC recommends endorsement of the Electric Integrated
Resource Plan and congratulates st~ff on their efforts~
MOTION PASSED: 5-0.
12/02/92 UAC recommends acceptance of the pilot Commercial
Lighti~g Incentive and Residential Compact Fluorescent
Incentive programs and recommends it to the City council ..
MOTION PASSED: 5-0.
1.2/02/92 UAC recommends that the APPA Tree program be fon,'arded to
the Finance COllUllittce f~r consideration "lll'ith the UAC
comments as noted in the ~inutes~
MOTION PASSED: 4-1; Sutoriu5 ~~o·.
12102j92 UAC supports the staff recommendation that the City
Council direct sta~f to return durinq the 1993-94 budget
process ... ith recommendations on rates, rate struct.ure and
riaiserve levels~
MOTION PASSED: 5-0.
3/03/93 UAC recommends that the' Cit'j Council ilpprcve the
Re.frigerator Rebate Pilot Program as outlined in the
staff report with the understanding that staf"f will brief
the UAe on the progress of the pilot progrco_m at its
August 1993 meetinq.
4/07/93
MOTION PASSED~ 4-1; Eyerly -no·.
UAC recommends that the City COUTlcil remove the \IIater
restrictior.s at the earlip.st opportunity.
MOTION PASSED: 5-0~
•
5/05/93
5/19/93
5/19/93
5/19/93
5/19193
5/19193
S/19!9)
8/04/93
9/01/93
; .... .
, ,:("'~ ~::..: _........,..:~~.:..:....:.. __ '_:: --_._, __ -'--"-".....:.c...,."'."
UAC recommends the
Statement ~or a Model
MQTI0N P~SSEO: 5-0.
City Council acopt the
Energy Efficiency Program.
Policy
city
the
UAC recommends that the Cit}' Council adept the
Manager's Proposed 1393-94 Interim Budget and
attendant changes in the Capital lmprovereent Program
it relates to the three utilities under its purviey.
MOTION PASSED: 4-0; Vejtasa absent.
as
UAC recommends that the City Council approve the
resolution adopting Rate Schedule C-4 which provides rate
relief to qualifying CllstomE!r-s of the Residential F.ate
Assistance Program which would be implemented during the
second quarter of F¥1993-94 and the ordinance providing
penalties for the sUbmission of fraudulent information
to th.e city b.l' utiljties custolIlers as it applied to
customers with medically driven needs,
MOTION PASSED: 3-1; Hoffner II!no·. V-ejtasa ab6ent~
UAC recommends that the city council approve the
resolution adopting Rate SChedule C-4 wbich provides rate
relief to qualifyinq cUstomez-s 01 the Reside.ntial Rate
l~ssistanee Proqram. 'Which wou~d be implemented durinq the
second quarter of FY1993-94 and the ordinance providing
penalties for the submission of fraudulent informatien
to the city by utilitie.s customers as it applied to
customers 'With financially driven needs.
MOTION FAILED: 2-2; Hoffner and Grimsrud "no", Vejtasa
absent.
UAC recommends the City council approve the staff
reco~endation to adopt the re$olution establishinq the
proposed Utilities Reserve policy and that the UAC review
the. overall reserve subj ect no la.'ter than mid-year and
prior to the 1994-96 budgat prOCa6&.
MOTION PASSED: 4-0; Vejtasa absent.
UAC recommends the city COUncil approve the resolution
adopting the FY1993-94 Electric customer Refund Plan as
outlined. staff would inform the council of the electric
refund amount prior to distribution in the second quarter
of IT1993-~4.
MOTION PASSED: 4-0j vejtasa absent.
UAC recom:mend$ the City council adopt the rasolution
revising Rate SChedule E-6 applicable to UTlmetered
electric service to increase. maintenance rates charged to
the public Works Departm~nt effective July 1, 1993.
MOTION PASSED: 4-0; vejtasa absent.
UAC reconuuends the City' council approve the Northern
california Power Agency pooling Agreement, Facilities
Agreement, and assocIated schedules and disclaimers, and
tha~ the recommendation be conditioned upon confirmation
with the City Attorney's final review and endorsement.
HOTION PASSED 4-0; Grimsrud absent.
The UAC endorses the September 19,
Resource Plan as the fl-ame'Wor:k
Decision Making.
MOTION PASSED: 5-0 .
•
1993 Water Integrated
fo~ Wate~ Resource
9/01/9)
9rOl!93
9/01/93
9/01/93
The CAe £upports the staff re~ommendation to reject the
prearranged deal with pacific Gas and Electric.
MO'l'ION PASSED: 5-0.
The UAC approvEs staff's bidding for a or,e ann. a half
year term for a PGT capacity as recommendea in the Gas
IRF Executive S~ary.
MOTION PASSED, 5-0.
The UAC concurs with stafffs recommenaation that the City
Council should execute the NCPA Natural Gas Resolution.
MOTION PASSED: 5-0.
The UAC, on a trial basis until the end of :1993, will
produce enhancements to the Executive summaries as
proposed by commissioner Hoffner and that the UAC
reevaluate the process, timing, and effectiveness at the
end of 1993.
MOTION PASSED, 5-0.
10/06/93 The t1AC recol!IUDends approval of the water Integrated
Resource Plan.
MOTION PASSED: 5-0.
10/06/93 The UAC requests the City council to r-e.fer the subject 'Of
RWQCP wastewater Reclamation Pro?qraJII. to the UAC tor study
ar.d recommendations~
MOTION PASSED: 5-0.
January 5
UTZLITIB8 APVIIOaY CQkKI3BION
r!NTATrvE lttt AG8NDA
SOlIJBCr
A!'TACHMENT D
• Review o~ Reserves Policy (Complete)
• western contract renewal update (Complete)
• Review 1994 Council Priorities (Complete)
... Ga5 Transportation Rat€ (Complete)
... UAC Tentative 1994 Jo.genail (Complete, revisions
"'ill be adde<l)
February 2 ;to Manaqers Report on UAC
!!arch 2
March 9
April 6
NOTE:
* Review of Water Fund Financial condition
... Allocation of excess SFHH Water * Results or on-site qaneration study * Reclaiaed Water Proqra.
... Heating/Ventilation/Air Conditioning Program
Concept
* Review of FY1994-95 ~te Forecast
... History of utilities presentation
• Gas Transportation Agreement * Electric IRP, initiation * NCPA Strategic Plan Update * Fuel Cell Participation
• Marketing Plan (Information)
... Res. CFL Evaluation (InformAtion)
... Commercial Liqhtinq Evaluation r information)
• crp Review
Note: The CIP will be available on March 3
(council Pac~~t). Minutes must be prepared
for UAC approval at the April 6 meetinq. UAC
Recommendations ana Minutes are due in the
April 14 Council Packet.
OS" Evaluation (Information)
Western contract renewal update
Water is~ues update~
Kajar Resource Planing accomplishments, future
objectives.
ESCO Contract
n. Ut4-95 IlIiAF'l Bt1IlGBT "ill lie ill the April 14 00""011
Packet and delivered to the UAC April 15.
~ opeclal Bu4'let and IIate ••• etiug ""'7 lie required prior
to Kay .. toO provide cae co_ante to the J'ia.a.nae
Co.aitt .. 's ••• tiDq scheduled tor lat. Kay.
" '-"
May 4
June 1
July f:i
August 3
Septeaber 7
October 5
November 2
oece.ber 7
Utilities Budget proposal
Utiliti.s Rate Proposals
Otilitifts Rents Report
DSM all commodities report
Electric supplies screenlnq analysis
EMF, Palo A!.to's Desiql'l Criteria, custom.er
Services and Information
Weat~rn contract renewal update
Gas Supply agree~ent
Electric IRP, deterministic analysis
MDB update
Western contract rer.eval update
Electric IRP, findings and recommendations
Gas lRP, initiation
Electric rRP draft
Water IRP, initiation
Electric IRP, final report
• BCPA Commission Meeting Report
• TAffe Report
• CPAC Report
U A C/W<lJrlRedamaJiQl1
Rel'iew_Sl,:J!~duJ~ -1994
F~M=~=e=t=in=g=D-a-t=e=;=1='im=e=-=R='~=~=u~'i~rr Topicllnfn Product ---r---------~I
February 2 Major I L Re,iew Scheou:e Adopt a Schedule
for UAC Review
Process ~. Decision,Making
Process Chart
3, BackgroundlHistory
L'-__ M_'_a_',c_h __ -+ ____ M_in_o_r_',=',-Regulatory ReqUir;~'e.:,~'-t~s~==-_-+-k-I:!-J-S-CU-S-s-io-n-.'----l!
April Minor j AI!ernatives to Reclamation I Discussion in I a) Source ControIl ConCEpt
I \Vas!e Minimization
r-.' I b) Plant Optimization
,-J
May rv!inoT Reviey, .. of Reclamation I""'" Master Plan
a) Scope
b) Cose '-,-
June Major Reclamation Draft i Review &
ErR Comment
July Summer Break I
I -----
August Summer Break I
September Major I, ReclamatIOn Fmal EIR I. Information
2. Update of Costs & e Review Studies I Financial Study --.--------.----------
October Major Waste Minimization! j Review Studies
Source Control I
-~--=E~wsmdies November Minor Piant Optimization
Reduction Potential
December Major Reclamation Project I Recommendation
.. .-L to City Council
--,
T ,me R<!'q Llired