From: Jo Ann Mandinach
To: Council, City; [email protected] Cc: City Mgr; Dave Price
Subject: Enough with the Utility Rate Hikes / PA"s budget Date: Monday, May 5, 2025 12:09:39 PM
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!
Dear Mayor and Council Members
As advised by PAN (Palo Alto Neighborhoods) I'm commenting before your Weds deadline on:
1) Please start to limit the constant and excessive utility rate hikes!
See below for
PAN's statement.
2) Note there's a relationship between 4-figure utility bills and the decline in shopping and sales tax revenues.
Even without pricey "retail consultants" you
should be able to see that.
Note also that Palo Alto's proportion of senior citizens keeps rising
and CPAU is taking an disproportionate share of their fixed incomes. 3) Stop the wasteful spending on consultants with no local knowledge and the plan to replace parking on Middlefield with 24-hour bike lanes
-- an idea rejected 8
years ago as too dangerous for bikers and too harmful for residents and those on neighboring side streets who'd be inundated with overflow parking from ADUs which aren't required to provide parking, parents picking up/dropping off their kids at all the Middlefield schools and all the service people -- cleaners, gardeners, painters, delivery vans, etc. -- who will be forced to lug their equipment for blocks to avoid jaywalking!
3A) THIS ALSO AFFECTS EMERGENCY VEHICLES who need to park in front of our homes during emergencies!
3B)
Stopping all traffic near schools for non-residential traffic for 15-90 minutes would cause horrendous problems for all the commuters on Embarcadero coming for 101!!
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resources?
4) Stop wasting money on non-local consultants with no local knowledge and/or awareness that the above was widely rejected 8 years ago due to massive residential outcry from school leaders, parents and residents after a neighbor alerted us to the plans to sneak this through -- with no outreach or warning from the city -- based on erroneous and costly information like Josh Mello's flawed and costly 3 models, parking surveys taken at off hours and other deceptive nonsense. 5) Start providing community outreach about plans directly in front of our homes. This is the
second time we learned of the plans to eliminate
Middlefield parking from an alert neighbor and not from the city's huge communications staff, consultants etc. If that doesn't make us "stakeholders" what does????
6) Response time matters for emergency vehicles and the city's ambitious and costly plan to slow traffic all over the city to "eliminate fatalities" will INCREASE fatalities as it slows emergency vehicles all over town.
I won't bore you with all the other examples of city waste like external "retail consultants" who recommend sleeping pods and can't manage to locate former PA retailers who moved to Los Altos, Sharon Heights and Menlo Park. Once again.
LOCAL KNOWLEDGE MATTERS; stop using consultants who keep recycling their one-size-fits all recommendations to their entire client base regardless of local validity!
Most sincerely,
Jo Ann Mandinach
Palo Alto Neighborhoods oppose the proposed 34% natural gas rate increase starting July 1st on residents for the basic needs such as cooking and winter heating.
This includes the majority of renters. Meanwhile the largest and least efficient residential customers would get a gas rate cut in direct contradiction to our climate action goals. The city says gas rates are only going up 13% because they’re combining two different rates and applying a one-time $73 rebate—money taken from funds that were supposed to permanently reduce greenhouse gas emissions.
The overall average gas rate increase on all gas customers is only 5%. However, the consultant used different methodologies than his predecessor at the same company for the last study making the biggest changes discretionary.
If you also think a 34% increase on your basic household natural gas usage is excessive and would prefer a 5% increase this year then I encourage you to write to the city council before Wednesday.
From: Hamilton Hitchings
To: Council, City
Cc: Nose, Kiely; Kurotori, Alan; Clerk, City
Subject: PAN Opposition to 34% residential gas rate increase including renters Date: Sunday, May 4, 2025 3:48:34 PM
Attachments: PAN Opposition to Gas Rate Increase Letter to Finance Committee for 2025-5-7 Meeting v6.pdf CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.
i
Dear Finance Committee,
Palo Alto Neighborhoods opposes the proposed 34% average gas rate increase on residents who rely on gas for basic needs such as cooking and winter heating - despite the overall average gas bill rising only 5%.
Disproportionately Impact Tier 1 Residential Customers
Affects all renters in individually metered apartments, where the majority of renters live.
An average Tier 1 household (26 therms / month) would see its bill jump 34%— from $38 to $51 per month—driven by a 49% hike in the Tier 1 rate and a 15% hike in the monthly service charge.
Tier 2 heavy users get a 10% rate cut—undermining climate goals.
Large commercial customers face about a 7% bill increase, far below the 34% imposed on basic‑use households.
Misuses $1.6 million in Cap‑and‑Trade Proceeds
The proposal spends these climate funds on a one‑time $73 credit instead of on lasting electrification programs for homes and small businesses.
Flawed Cost-of-Service Analysis (COSA) Shifts Costs Unfairly Improper PG&E benchmark: PG&E’s CPUC‑regulated tariffs cannot dictate local rates—and PG&E already charges small businesses about 40% less per therm than residential customers.
Cost shift: Citing “seasonal variability,” the current consultant adopts a new, discretionary methodology—unlike his predecessor’s at the same firm—that moves infrastructure costs from small businesses onto households.
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Cuts small‑business and master-metered landlord service fees from $157 to $29, shifting costs so basic‑use residents face a 34% hike.
Raises residents’ share of the General Fund Transfer, ignoring Measure L’s voter‑approved Net Plant formula.
There is precedent for reconsideration
Davis overturned a COSA‑based water‑rate plan (Measure P) and later adopted a structure better aligned with community goals.
Our recommendations
1. Remand the current study and rate design to the Utilities Advisory Commission for an equitable, climate‑aligned FY 2027 revision.
2. Hold FY 2026 increases to a uniform, Proposition 26‑compliant 5% while commissioning a new COSA.
3. Preserve the $1.6 million in Cap-and-Trade funds for permanent emission-reduction projects.
Hamilton Hitchings on behalf of Palo Alto Neighborhoods This letter was approved by unanimous vote at the most recent PAN meeting on May 1st, 2025
The attached PDF also includes footnotes
From: Jeff Hoel
To: UAC
Cc: Hoel, Jeff (external); Council, City
Subject: COMMENTS -- 05-05-07 UAC meeting -- Item 3 -- FTTP Date: Sunday, May 4, 2025 2:15:43 PM
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Commissioners,
Below is a copy of the staff report for Item 3 on UAC's 05-07-25 agenda ("Fiber Rates and Packages"), to which I have added my COMMENTS (paragraphs in red beginning with ### ).
Thanks.
Jeff
-------------------
Jeff Hoel
731 Colorado Avenue
Palo Alto, CA 94303
-------------------
PS: I will not be able to attend the meeting, unfortunately. ============================================================================= 05-07-25: UAC meeting agenda:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17424 * Item 3: Utilities Advisory Commission Finance Subcommittee Recommends the Commission Recommend City Council Approve the FY 2026 Fiber Rates and Packages ACTION
### I hope the UAC commissioners can take advantage of this ACTION item to tell Council what they really think. 6:55PM -- 7:35PM
### 40 minutes is not a lot of time.
Staff: Dave Yuan, Utilities Strategic Business Manager
=============================================================================
STAFF REPORT
--- page 1 ---
Utilities Advisory Commission
Staff Report
From: Kiely Nose, Interim Director Utilities
Lead Department: Utilities
Meeting Date: May 7, 2025
Report #: 2407-3228
TITLE
Utilities Advisory Commission Finance Subcommittee Recommends the Commission Recommend City Council Approve the FY 2026 Fiber Rates and Packages
RECOMMENDATION
Staff recommends that the Utilities Advisory Commission (UAC) advance a recommendation that Council approve the Fiber Rates and Packages for the City of Palo Alto to provide fiber broadband internet.
EXECUTIVE SUMMARY
Staff is recommending the Utilities Advisory Commission (UAC) advance a comprehensive rate range and service package for Council to consider and authorize to support the continued implementation of the City’s Fiber-to-the- premises (FTTP) project pilot area of approximately
1,000 homes. The proposed broadband services and rates are based on extensive market research, evaluation f ### of
customer needs and competitive benchmarks. The rate range and service package allows flexibility to structure rates for special promotions, ### Many successful municipal FTTP networks don't have special promotions. Rather, they take pride in saying that their customers like the fact that they don't have to search for special deals.
service packages, and other means to be competitive in offering fiber services to our pilot customers. A well-defined and adaptable rate structure for fiber internet services is essential for the success of the FTTP project.
Recognizing the evolving and competitive marketplace, staff will continue to learn from this initial phase and incorporate new service delivery strategies. Staff continues to advance the City’s electrical grid modernization project and Palo Alto Fiber together, saving time, creating efficiencies and reducing costs.
Staff presented the fiber rates and packages to the UAC Budget Subcommittee. ### This year,
Commissioners Croft, Gupta, and Phillips served on the UAC Budget Subcommittee. https://www.paloalto.gov/Departments/Utilities/Utilities-Advisory-Commission As far as I know, the public doesn't know what staff presented there or what was discussed.
The subcommittee unanimously approved the proposed fiber rates structure and product offerings.
BACKGROUND
On December 19, 2022 Council directed staff to proceed with the fiber backbone, a phased FTTP infrastructure build approach, and a hybrid business model for providing fiber internet services. Work continues to advance in several areas to launch a pilot service area including development and implementation of a new Operations Support System/Business Support --- page 2 ---
System (OSS/BSS) [1 ], engineering design and construction planning, material procurement, marketing, service delivery, and the strategic allocation of staffing resources through either hiring external expertise or training and assigning internal personnel to support these efforts.
On June 19, 2023, Council approved the FY 2024 CIP Budget with the new FTTP project “FTTP”, and Grid Modernization for Electrification Project “Grid Mod”. The approval of the Grid Mod project accelerated efforts to align electric and fiber construction,
which impacted FTTP construction.
### Is this saying that FTTP construction was delayed by having to coordinate with Grid Mod? Deployment continues to minimize utility engineering pole make-ready work, pole replacements, noise disruption, and construction activity in neighborhoods.
Following the June 2023 Council approval of the FY 2024 CIP Budget for the FTTP project, staff has been actively laying the groundwork for implementation. ### Is this saying that no part of the FTTP project has been implemented so far? Has any part of the new backbone network been implemented so far? Activities include leveraging existing contracts and resources, securing the necessary approvals and permits to install a new fiber data hut, ### How many necessary approvals and permits remain to be obtained to install the new fiber data hut? Of these, how many must be obtained from an entity other than the City itself? Can they be expedited? and establishing the operational frameworks and workflows required to support future service areas. These efforts are proceeding in parallel with the ongoing pilot program aimed at optimizing the alignment of fiber deployment with the City’s grid modernization initiatives.
ANALYSIS
In February 2025, the City retained Brightscape Networks ### Brightscape Networks
https://www.brightscapenetworks.org/why.brightscape.html#origin It's a subsidiary of CENIC, the Corporation for Education Network Initiatives in California. https://cenic.org/
Since Palo Alto isn't exactly building an educational network, why are they looking to a CENIC subsidiary for advice? /GoMo,
### GoMo Consulting
https://rocketreach.co/gomo-consulting-profile_b778a560c51be3a8 GoMo is based in Seattle, WA. It employs 2 people. One is Tom George. https://rocketreach.co/tom-george-email_15349803
### Who recommended these consultants? What's happened to Magellan? fiber industry experts, to analyze the residential broadband coverage, competitive landscape, and potential service offering with the pilot area along with an operational assessment. In March 2025, Brightscape provided a summary of their market review of the pilot area, which revealed a duopoly between two major wireline incumbent providers Xfinity and AT&T, with Xfinity holding 100% coverage ### I suppose this means that Xfinity's coverage in Palo Alto is 99.5 percent or greater. But it's certainly possible to find unpassed premises on FCC's broadband map. https://broadbandmap.fcc.gov/location-summary/fixed?version=jun2024&location_id=061401c9-fd6c-4028-a5b8- a2bfd18fe9dd&addr1=2600+COLUMBIA+ST+BLDG+2&addr2=PALO+ALTO%2C+CA+94304&zoom=15.13&vlon=-122.151041&vlat=37.416431&br=r&speed=250_25&tech=2 (FCC's broadband map lets you specify technology (e.g., "cable") and speed (e.g., 250/25 Mbps). Green dots indicate covered premises. Red dots indicate premises not covered.) ### (The FCC broadband map relies on data provided by the ISPs.) via cable (offering speeds up to 2 Gbps
### It's important to pay attention to both upload speeds and download speeds. ### In Palo Alto, Xfinity can offer speeds up to 1200/35 Mbps in most places and 2000/200 Mbps in a few places. https://broadbandmap.fcc.gov/location-summary/fixed?
version=jun2024&lon=-122.150582&lat=37.416675&addr_full=2600+Columbia+Street%2C+Palo+Alto%2C+California+94304%2C+United+States&zoom=15.00&vlon=-122.134167&vlat=37.422606&br=r&speed=1000_100&tech=2 (Here's what the map looks like, specifying cable technology and 1000/100 Mbps, which excludes Xfinity's 1200/35 Mbps coverage.) with data caps and contracts) and AT&T covering 89% with symmetrical fiber (FTTH) options up to 5 Gbps without data caps or contracts. Brightscape recommended Palo Alto offer symmetrical speeds ranging from 500 Mbps to 1 Gbps,
### What was the rationale for this recommendation?
-- Why wouldn't it make sense to offer a slower speed for people who ask for rate assistance? -- Why wouldn't it make sense to offer higher speeds for people who want them (since the 10-Gbps infrastructure can support it)? focusing on a few plans to offer at competitive, contract-free rates with no data caps. They highlighted the need to address challenges in serving multi-family residents where incumbents have a long-standing presence and partnerships which limit competition.
With two major incumbent providers in the pilot area, the City would need to overcome the hurdles of new customer acquisition, such as switching aversion - when subscribers express dissatisfaction with their current internet service provider, the perceived hassle of switching may prevent them from taking action. To overcome challenges like this, through staff recommendations Palo Alto Fiber can provide basic services which are easy to understand and competitively priced, with marketing and outreach that differentiates our services from other providers, such as being a locally available municipality they can speak to in person. ----------
[1] Operations support systems (OSS) manage telecom network infrastructure, ensuring reliable operations through functions like fault management and service assurance. Business support systems (BSS) streamline customer- facing activities, such as billing, subscriptions, and customer relationship management, to improve customer experiences. Together, OSS and BSS enhance telecom operations by connecting efficient network management with seamless customer interactions.
--- page 3 ---
To optimize deployment within this competitive landscape, staff recommends an initial offering focused on simple, easy to understand and fulfill service packages. Staff also recommends approval for a range of rates and packages which can be easily adapted. This strategic approach offers several key advantages. First, limiting the number of core packages simplifies the initial deployment and provisioning processes, allowing staff to grow in- house expertise while relying on contracted services to concentrate on efficient installations and customer onboarding. Second, it reduces complexity in our customer support efforts and marketing and outreach, enabling us to clearly communicate the value proposition of each plan and focus on providing services. In a market where customers are often overwhelmed by numerous offerings, simplicity and transparency can be a significant differentiator.
With a well-defined range for the rates and packages, staff can quickly adapt offerings to target different customer segments.
Staff recommends UAC adopt the following range of rates for Council consideration and approval the below range for the rates:
### What's the intent of the ranges specified? Will the high-end price apply unless there's a promotional special? Residential Service Plan
Pricing Comments
500 Mbps - Rate Assistance
Up to $30 Monthly; Free installation and
router
### How many homes would qualify for this rate assistance? How would this program affect the financial viability of the FTTP network? ### Would it make sense to specify rate assistance as the discount from standard pricing, e.g., up to $45 monthly? 500 Mbps Up to $75 Monthly; Free installation and router
1 Gbps Up to $95 Monthly; Free installation and router ### I assume that the "router" mentioned here is the thing that allows the customer to connect to the CPE (FTTP customer premises electronics) via Wi-Fi while inside the premises. ### Many municipal FTTP networks charge extra for this feature. This kind of Wi-Fi is notorious for requiring additional customer service. ### Some municipal FTTP networks also charge even more to provide extra Wi-Fi equipment within the premises to make sure that Wi-Fi coverage within the premises is reliable throughout. 2 Gbps Up to $175 Monthly; Free installation 5 Gbps Up to $265 Monthly; Free installation ### I have the impression that most of the City's costs for providing an FTTP connection are for infrastructure and operations and customer service, NOT for bandwidth. So, could the prices for 2 Gbps and 5 Gbps be reduced? Commercial Internet Service Plan
Pricing Comments
500 Mbps Up to $125 Monthly; Free installation and router 1 Gbps Up to $185 Monthly; Free installation and router 2 Gbps Up to $195 Monthly; Free installation 5 Gbps Up to $295 Monthly; Free installation Additional Equipment
Pricing Comments
Calix GigaSpire
Up to $5 Monthly
Calix Blast Mesh Extender
Up to $5 Monthly
Calix Gig Wan Port
Up to $600 One time purchase
### I guess this means that Palo Alto has selected Calix as its OLT/ONT vendor. Right? Has the City executed a purchase order with Calix yet? --- page 4 ---
Other Service Offerings
Pricing Comments
Fixed Wireless - 100 Mbps
Up to $75/Month Monthly; Free installation and router ### I don't understand what this item is. Whatever it is, why is it only 100 Mbps? (Symmetrical?) Protect IQ Up to $10/Month Network level security to protect against malicious threats and intrusions.
Experience IQ Up to $10/Month Advanced parental controls with content access and usage schedules Smart Home -
Calix
Up to $10/Month Tools to manage and secure including features like network security, parental controls, and smart home automation.
Smart Biz -
Calix
Up to $30/Month Suite of features to support small businesses.
Smart MDU - Calix
Up to $10/Month per subscriber
Calix solution for MDU's that ads
### adds?
features like community wide managed Wi-Fi for the complex.
Commercial Dedicated 1 Gbps Internet Access (DIA)
Up to $1,500/Month 1 Gbps Dedicated Internet Access (DIA) service to deliver dedicated bandwidth, reliable, high-performance connectivity, and throughput consistency.
### What infrastructure is required to support this dedicated internet access (DIA) product? Commercial Dedicated 10 Gbps Internet Access (DIA)
Up to $7,500/Month 10 Gbps Dedicated Internet Access (DIA) service to deliver dedicated bandwidth, reliable, high-performance connectivity, and throughput consistency.
### What infrastructure is required to support this?
Other Contract Terms
Data Allowance - Unlimited
Month to month contract term
FISCAL/RESOURCE IMPACT
This report is for
discussion purposes
### Not exactly. It's in support of an ACTION item.
so there is no resource impact. Based on UAC and Council input, staff will recommend Council approve fiber internet rate ranges and packages. With necessary approvals, rates would be included in the June 16, 2025 Council budget adoption.
STAKEHOLDER ENGAGEMENT
On November 2, 2022, the UAC unanimously recommended to build fiber backbone and FTTP under a phased approach with existing funds. The UAC expressed the goal of building FTTP is to provide ubiquitous or citywide high-speed internet access to all residents and businesses in Palo Alto. If financially self-sustaining, and deemed successful, the first phase of FTTP can become a springboard to a citywide FTTP deployment. --- page 5 ---
On December 19, 2022, City Council directed staff to proceed with the Fiber Expansion Plan to implement the Fiber Rebuild project and Phase 1 of the Fiber-to-the-Premises (FTTP) project without debt financing. Included in the Council’s motion was to a) maximize number of homes and businesses passed; b) consider promotional rates to increase take rate; c) define leading indicators and metrics to determine success; and d) recommend Council accelerate expansion if metrics are positive, including a potential bond to streamline construction and compress construction time as much as feasible.
On June 19, 2023, the City Council approved the FY 2024 CIP Budget for the new FTTP project, and Grid Modernization for Electrification Project. The approval of the electrification project accelerated efforts to align electrification and fiber construction, which impacted the Fiber Expansion Plan. Staff is deploying a pilot to determine how to align the grid modernization project and projects under the Fiber Expansion Plan to help minimize utility engineering pole make-ready work, pole replacements, noise disruption, and construction activity in neighborhoods. The pilot design was recently modified to streamline construction, and is currently undergoing material purchasing before starting fiber construction.
### When can fiber construction begin?
### When can the FTTP hut at the Colorado Electric Substation be installed? -- When can the concrete slap for the hut be poured?
-- When can the substation's fence be modified to accommodate access to the hut? Since that time, staff has engaged UAC at their public meetings, and taken community input on various aspects of the staff’s work to date. Additionally, a project website is live and offers information and status updates on this effort. Project updates will continue to be provided at http://www.PaloAlto.gov/PaloAltoFiber ### As far as I can see, the latest "Palo Alto Fiber Project Status" provided by this web page was 11-07-23. ### Six months ago, staff said they hoped the first FTTP customers could begin being served in June 2025. What does staff say they hope now?
ENVIRONMENTAL REVIEW
The UAC’s recommendation for a rate and package is not a project requiring California Environmental Quality Act review, because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment.
ATTACHMENTS
Attachment A: Presentation
AUTHOR/TITLE:
Kiely Nose, Interim Director of Utilities
Staff: Dave Yuan, Utilities Strategic Business Manager
============================================================================= 0507-25: 12-month rolling calendar:
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2025/05-may/05-07-25-rolling-calendar.pdf Here are the FTTP-related items:
* May -- UAC -- Fiber Rates/Packages and FTTP Update
* June -- Finance Committee -- Fiber Rates/Packages
* June -- City Council -- Fiber Rates/Packages
### Will the Finance Committee and City Council get an "FTTP Update" when the "Fiber Rates/Packages" item is considered? From: Alice Smith
To: Council, City
Cc: [email protected]
Subject: Fwd: [pan: 3353] Fwd: Rinconada library hours expansion Date: Wednesday, April 30, 2025 6:14:05 PM
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Not having Rinconada Library open is not what Palo Alto residents value: we want our libraries to be open and available .
Alice Schaffer Smith
850 Webster Street #520
Palo Alto, CA 94301
650 283 2822
---------- Forwarded message ---------
From: Dana <[email protected]
>
Date: Tue, Apr 22, 2025 at 11:01 PM
Subject: [pan: 3353] Fwd: Rinconada library hours expansion To: PAN <[email protected]>
Libraries are the one thing that we as residents can appreciate from our taxes. These are ridiculous hours and they claim no one uses the library in the evenings.
My children used the Rinconada Library plenty when they were at Paly and the library didn't close until 9pm. The meeting rooms were so helpful.
The current Rinconada hours are 10am-6pm (12pm to 8pm on Thursdays). All library hours They claim that the City Council needs to approve longer hours.
Dana Wong
Triple El Neighborhood
---------- Forwarded message ---------
From: Kanth, Gayathri <[email protected]
>
Date: Tue, Apr 22, 2025 at 9:11 PM
Subject: Rinconada library hours expansion
To: Wong, Dana <[email protected]
>
Cc: Shikada, Ed <[email protected]>
Hello Ms. Wong,
Thank you very much for your feedback regarding expanding Rinconada library’s open hours. I’m responding on behalf of City Manager Ed Shikada.
Rinconada library’s current library hours were established by balancing the needs of various patron groups and available staffing resources. Prior to determining library hours, the library evaluated the hourly visitor count of all the libraries. Our analysis revealed that even prior to the pandemic, the Rinconada library evening visitor count was significantly lower than its morning visitor count. As a result, the library prioritized morning and afternoon hours over evening hours.
I appreciate your comments about teens and their need for spaces to connect, engage and collaborate with each other. Both the Mitchell Park and Rinconada libraries have been popular after school destination for teens. Library staff, supported by the Teen Library Advisory Board, organizes many popular events and activities for teens. The library also hosts several exclusive teen events after the library is closed.
Further expanding Rinconada library evening hours would, however, require additional staffing that need to be approved by the City Council.
Thank you again for your feedback. I look forward to continuing to expand teen services as staffing and resources are available.
Best regards,
Gayathri Kanth
Gayathri Kanth
Library Services Director
Library Department
(650) 329-2668 | [email protected]
https://library.cityofpaloalto.org
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