Dear Mayor and Council Members,
On behalf of City Manager Ed Shikada, please find below the staff responses to questions from Councilmember Tanaka regarding the Tuesday, January 16 Council Meeting consent agenda items.
Item 4: Approval of Professional Services Contract with Energy and Environmental Economics, Inc. (E3) for a Not-to-Exceed Amount of $945,286 for the Sustainability and Climate Action Plan (S/CAP) Funding Study; Amendment to Professional Services Contract with Sterling Communications, Inc. to Amend the Scope, Extend the Timeline, and Increase Total Not-to-Exceed Compensation by $75,000 (from $85,000 to $160,000); and a Budget Amendment in the Electric Fund for Acceptance of $75,000 DEED grant for S/CAP Funding Study; CEQA Status – Not a Project.
1. How will the success of these initiatives be measured? Are there clear metrics established to evaluate the effectiveness of E3’s study and Sterling’s marketing efforts?
Staff response: There are objective metrics for the success of Sterling’s marketing efforts in the number of leads for the City’s electrification programs. The number of leads for the heat pump water heater program doubled when staff began implementing Sterling’s recommended marketing plan, as an example.
The base tasks of the E3 study will be successful if we:
1. Have a database of potential building electrification measures for multi-family and non- residential construction in Palo Alto and their cost-effectiveness. This would be used to build programs for those sectors.
2. Have identified the most cost-effective strategies for providing electric vehicle charging throughout Palo Alto.
3. Have identified a broad range of potential funding and financing mechanisms that could be used for the S/CAP.
4. Have identified policy options for funding scalable S/CAP programs that could be considered by Council.
The optional tasks, if implemented, will be successful if we:
1. Validate the electrification load assumptions used in our grid modernization study and identify ways that distributed energy resources might be used to make the grid modernization program more efficient, and
2. Identify potential transportation management measures that could be used to promote commuter electric vehicles in addition to alternative transportation
Item 5: Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2023 and the Macias, Gini & O’Connell Management Letter; Approve the FY 2023 Annual Comprehensive Financial Report (ACFR)and Amendments to the FY 2023 Budget in Various Funds; and Adopt a Resolution to Extend and Amend the Development Services Reserve Fund Policy, as Recommended by the Finance Committee; CEQA Status – Not a Project
1. What specific criteria or guidelines will be used to determine the allocation of excess funds from the Budget Stabilization Reserve, especially considering the balance exceeding the 20% target?
Staff response: The Council approved policies for infrastructure and proactive pension funding stipulate that funding in excess of the Council target be allocated 50/50 between these two priorities. This is reflected in the recommended action transferring 50% to the Capital Infrastructure Reserve and 50% to the Pension 115 trust account.
Item 6: Approval of Amendment No. 2 with Pets in Need Contract (C19174493) to extend the term through March 2024 and increase the compensation by $342,501 for operations of the Palo Alto Animal Shelter, for a Not-to-Exceed Amount of $4,431,872; CEQA status – not a project.
1. Could the staff provide a detailed breakdown of how the additional funding of $342,501 will be allocated within the Animal Shelter's operations?
Staff response: As presented at the August 14, 2023 City Council meeting, the compensation to PIN is allocated to the following operational areas:
• 76% is for personnel expenses for shelter services (44%), veterinary services (29%) and administration (27%).
• 15% is for direct expenses (animal food, medicine, supplies, etc.) • 9% is for indirect expenses (phone, internet, training, etc.)