HomeMy WebLinkAbout2019-06-03 Ordinance 54676055163
Ordinance No. 5467
Ordinance of the Council of the City of Palo Alto Adding Section 12.20.030
(Statute of Limitations for Challenges to Gas Rates) to Chapter 12.20 (Utility
Rules and Regulations) of the Palo Alto Municipal Code to Set a 120Day
Statute of Limitations for Challenges to Gas Rates
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as
follows:
A. A statute of limitations for challenges to gas rates and charges aims to balance the
interests of the City of Palo Alto with the interests of City of Palo Alto Utilities
Customers , by allowing Customers to bring challenges to gas rates and charges
within a reasonable, but limited, period of time.
B. Without a statute of limitations, Customers may argue that they are able to request
a refund years after a charge has been collected, making it difficult for the City of Palo Alto
Utilities Department to maintain the stable budget necessary to operate effectively, while
keeping rates as low as possible.
C. By establishing a reasonable period of time beyond which the City will not face
exposure to challenges to the validity of gas rates or charges, a statute of limitations minimizes
the fiscal uncertainty that results when there is no clearly established closure on such
challenges, and provides clear guidance to customers considering a challenge.
D. The California State Legislature enacted a similar 120day statute of limitations for
challenges to electric rates or charges in 2000, which is codified in Public Utilities Code Section
10004.5. This rule applies to electric rate challenges in Palo Alto.
E. The California State Legislature did not enact a similar statute of limitations for
challenges to gas rates or charges, because there are only a few municipal gas utilities in the
State. As one of the few municipal gas utilities in the State of California, it is incumbent upon
the City of Palo Alto to enact its own statute of limitations for challenges to gas rates or
charges, which reflects the same public policy concerns underlying Public Utilities Code Section
10004.5.
SECTION 2. Section 12.20.030 (Statute of Limitations for Challenges to Gas Rates)
of Chapter 12.20 (Utility Rules and Regulations) is hereby added to read as follows:
12.20.030 Statute of Limitations for Challenges to Gas Rates.
Any judicial action or proceeding against the City, to attack, review, set aside, void, or annul
an ordinance, resolution, or motion fixing or changing a rate or charge for a gas commodity or a
DocuSign Envelope ID: F0837C6E-751F-48FA-AB48-5F6FA2C1FAE7
2
gas service furnished by City and adopted on or after June 1, 2019, shall be commenced within
120 days of the effective date of that ordinance, resolution, or motion.
SECTION 3. If any section, subsection, clause or phrase of this ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portion or
sections of the ordinance. The Council hereby declares that it would have adopted the
ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the
fact that any one or more sections, subsections, sentences, clauses or phrases be declared
invalid.
SECTION 4. The Council finds that the adoption of this ordinance setting a statute
of limitations for challenges to gas rates does not meet the definition of a project under Public
Resources Code section 21065, therefore California Environmental Quality Act (CEQA ) review
is not required.
SECTION 5. This ordinance shall be effective on the thirtyfirst day after the date of
its adoption.
INTRODUCED: May 20, 2019
PASSED: June 3, 2019
AYES: CORMACK, DUBOIS, FILSETH, FINE, KNISS, KOU, TANAKA
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
Assistant City Attorney City Manager
General Manager, Utilities
DocuSign Envelope ID: F0837C6E-751F-48FA-AB48-5F6FA2C1FAE7
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