Loading...
HomeMy WebLinkAbout2026-10-07 Utilities Advisory Commission Draft Action Minutes Utilities Advisory Commission Draft Action Minutes – October 7, 2026 Page 1 of 3 UTILITIES ADVISORY COMMISSION DRAFT ACTION MINUTES OF OCTOBER 7, 2026, REGULAR MEETING CALL TO ORDER Chair Mauter called the meeting of the Utilities Advisory Commission (UAC) to order at 6:03 p.m. Present: Chair Mauter, Vice Chair Phillips, Commissioners Croft, Metz, Tucher, Scharff and Gupta Absent: AGENDA REVIEW AND REVISIONS IN PERSON PUBLIC COMMENT APPROVAL OF THE MINUTES ITEM 1: ACTION: Approval of the Minutes of the Utilities Advisory Commission Meeting Held on September 2, 2026 MOTION: Commissioner Scharff moved, seconded by Vice Chair Phillips, to approve the minutes of the September 2, 2026 meeting. MOTION PASSED: 7-0 UNFINISHED BUSINESS UTILITIES DIRECTOR REPORT Alan Kurotori, Utilities Director Utilities Advisory Commission Draft Action Minutes – October 7, 2026 Page 2 of 3 NEW BUSINESS ITEM 2: ACTION: Approval of Water and Wastewater Collection Rate Design Guidelines and Principles MOTION: Commissioner Gupta moved, seconded by Commissioner Tucher, to defer Item 2 to a future meeting date and direct staff to return with additional information regarding available Design Principle options. MOTION FAILED: 3-4, Croft, Scharff, Phillips, Mauter no MOTION: Vice Chair Phillips moved, seconded by Commissioner Scharff, to recommend that the City Council adopt the following Design Principles for Water and Wastewater Collection Rates in Alignment with Proposition 218 Cost of Service Analysis: 1. Design Principle 1: Rates must be based on the reasonable cost to serve customers. This is the overriding principle for the cost of service analysis (COSA); all other rate design considerations are subsidiary to this basic premise. 2. Design Principle 2: The COSA must involve a review of all existing rate schedules for applicability in the COSA. 3. Design Principle 3: The COSA must determine the proper allocation of fixed and variable costs and how those can be implemented in various rate designs. 4. Add a fourth principle that includes consideration of alternative structures that have been used elsewhere in California and shown to be consistent with Prop 218. MOTION PASSED: 4-2-1, Gupta, Tucher no, Metz abstain ITEM 3: ACTION: Electric Grid Modernization Bond Financing; Recommendation to the City Council to Adopt a Resolution Authorizing the Issuance and Sale of Tax-Exempt Electric Revenue Bonds Principal Amount Not-to-Exceed $100,000,000 MOTION: Commissioner Scharff moved, seconded by Vice Chair Phillips to recommend that the City Council approve the issuance and sale of tax-exempt electric revenue bonds in a principal amount not to exceed $100,000,000 at an all in TIC rate that will cause no more than a one- time 1% rate increase over the previous approved rate forecast on June 15, 2026, and the bonds will contain a call feature at the 10th year or sooner to address concerns about recent interest rate rises. FRIENDLY AMENDMENTS BY COMMISSIONER CROFT AND COMMISSIONER METZ INCORPORATED WITH THE CONSENT OF THE MAKER AND SECONDER MOTION PASSED: 5-2 Tucher, Gupta no Utilities Advisory Commission Draft Action Minutes – October 7, 2026 Page 3 of 3 ITEM 4: ACTION: Recommending Approval of Updated Palo Alto Low Carbon Fuel Standards Program Guidelines, including a Definition for Low-Income and a Methodology to Allocate Customer Program Cost Across Low-Income and Non-Low-Income MOTION: Commissioner Gupta moved, seconded by Commissioner Croft, to recommend that the City Council adopt the definition of “low-income individual” for Palo Alto’s Low Carbon Fuel Standards (LCFS) program that includes individuals eligible for Palo Alto’s Rate Assistance Program (RAP). MOTION PASSED: 7-0 FUTURE TOPICS FOR UPCOMING MEETINGS COMMISSIONER COMMENTS AND REPORTS FROM MEETINGS/EVENTS VIRTUAL PUBLIC COMMENT ADJOURNMENT Adjournment: The meeting was adjourned at 10:19 p.m.