HomeMy WebLinkAboutRESO 9686170601 jb 6053919 1
Resolution No. 9686
Resolution of the Council of the City of Palo Alto Increasing Water
Rates by Amending Rate Schedules W1 (General Residential Water
Service), W2 (Water Service from Fire Hydrants), W4 (Residential
MasterMetered and General NonResidential Water Service), and W7
(NonResidential Irrigation Water Service) and Repealing Resolution No.
9542 to Deactivate the Level 2 Drought Surcharges
R E C I T A L S
A. On January 17, 2014 the Governor of the State of California proclaimed a State of
Emergency due to severe drought conditions. On April 1, 2015 the Governor issued an Executive
Order proclaiming that severe drought conditions continued to exist, and ordering the State
Water Resources Control Board to adopt regulations imposing mandatory water use restrictions
on water suppliers to achieve a 20% reduction in statewide potable water use through February
28, 2016, or as continued or modified by the Governor.
B. On May 5, 2015, the State Water Resources Control Board adopted regulations
imposing upon Palo Alto a mandatory 24% reduction in potable water consumption from Jun 1,
2015 through February 28, 2016. This action by the Board triggered the City
authority to activate one of the three drought surcharges available in its water rate schedules.
C. On August 17, 2015, Council adopted Resolution 9542 which established that the
Level 2 (20%) drought surcharges set forth on the City's schedule of water rates would be
collected on all City of Palo Alto Utilities water customer bills as of September 1, 2015, and
declared that the surcharge would remain in effect until rescinded or modified by the City
Council.
D. On May 9, 2016 Governor Brown issued an Executive Order calling for the State Water
Resources Control Board to adjust emergency water conservation regulations through the end of
January 2017, in recognition of the different water supply conditions across the state. The State
Board subsequently revised its regulations allowing suppliers to selfcertify that there would be no
supply shortfall, assuming 3 additional dry years. . The San Francisco Regional Water System
(RWS) supply availability enabled the City of Palo Alto to selfcertify a conservation standard of
zero which remains in effect.
E. While the emergency regulation remains in effect, hydrological conditions as of
February 2017 indicate that the State will be largely out of drought conditions, and customer
demand has started to rise from peak conservation levels. Water storage in the RWS is at maximum
capacity.
F. Staff therefore recommends the deactivation of the level 2 drought surcharge at this
time, via the repeal of Resolution No. 9542.
G. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City
of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and
charges.
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
170601 jb 6053919 2
H. On June 19, 2017, the City Council held a full and fair public hearing regarding the
proposed rate increase and considered all protests against the proposals.
I. As required by Article XIII D, Section 6 of the California Constitution and applicable
law, notice of the June 19, 2017 public hearing was mailed to all City of Palo Alto Utilities water
customers by May 5, 2017.
J. The City Clerk has tabulated the total number of written protests presented by the close
of the public hearing, and determined that it was less than fifty percent (50%) of the total number
of customers and property owners subject to the proposed water rate amendments, therefore a
majority protest does not exist against the proposal.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W1 (General Residential Water Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W1, as amended, shall become effective July 1, 2017.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W2 (Water Service from Fire Hydrants) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W2, as amended, shall become effective July 1, 2017.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W4 (Residential MasterMetered and General NonResidential Water Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule W4, as amended, shall
become effective July 1, 2017.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule W7 (NonResidential Irrigation Water Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule W7, as amended, shall become effective July 1, 2017.
SECTION 5. The City Council finds as follows:
a. Revenues derived from the water rates approved by this resolution do not exceed the
funds required to provide water service.
b. Revenues derived from the water rates approved by this resolution shall not be used for
any purpose other than providing water service, and the purposes set forth in Article VII,
Section 2, of the Charter of the City of Palo Alto.
c. The amount of the water rates imposed upon any parcel or person as an incident of
property ownership shall not exceed the proportional cost of the water service
attributable to the parcel.
SECTION 6. The Council finds that the fees and charges adopted by this resolution are
charges imposed for a specific government service or product provided directly to the payor that are
not provided to those not charged, and do not exceed the reasonable costs to the City of providing
the service or product.
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
170601 jb 6053919 3
SECTION 7. Each of the rate schedules adopted by this resolution includes a structure of
drought surcharges that correspond to different levels of water use reduction in the City.
Effective July 1, 2017, each of the drought surcharges in the water rate schedules adopted by this
resolution are deactivated and shall not be added to applicable water rates, unless and until such
time as Council again approves both their use and the appropriate reduction level.
SECTION 8. The Council finds that the adoption of this resolution changing water rates to
meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain
funds for capital improvements necessary to maintain service is not subject to the California
Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and
Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all
attachments presented to Council, the Council incorporates these documents herein and finds that
sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA
exemption.
INTRODUCED AND PASSED: June 19, 2017
AYES: DUBOIS, FILSETH, HOLMAN, KNISS, KOU, WOLBACH
NOES: TANAKA
ABSENT: FINE, SCHARFF
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Director of Utilities
Director of Administrative Services
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-1 Effective 7-1-2017
dated 7-1-2016 Sheet No W-1-1
A. APPLICABILITY:
This schedule applies to all separately metered single family residential water services.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water Service.
C. RATES:
Per Meter
Monthly Service Charge: Per Month
For 5/8-inch meter ..................................................................................................... $ 16.77
For 3/4 inch meter ..................................................................................................... 22.60
For 1 inch meter ........................................................................................................ 34.26
For 1 1/2 inch meter .................................................................................................. 63.40
For 2-inch meter ........................................................................................................ 98.37
For 3-inch meter ........................................................................................................ 209.11
For 4-inch meter ........................................................................................................ 372.31
For 6-inch meter ........................................................................................................ 762.81
For 8-inch meter ........................................................................................................ 1,403.94
For 10-inch meter ...................................................................................................... 2,219.92
For 12-inch meter ....................................................................................................... 2,919.34
Commodity Rate: (To be added to Service Charge and applicable to all pressure zones.)
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Tier 1 usage ........................................................................................................................ $6.66
Tier 2 usage (All usage over 100% of Tier 1) ........................................................................ 9.18
(SGY7MKR)RZIPSTI-( * ('')%%')%*) %&) (''*
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-2 Effective 7-1-2017
dated 7-1-2016 Sheet No W-1-2
Drought Surcharges (deactivated):
2 water usage when the City Council has determined that a water reduction level is in effect for the
City as described in Section D.3. The drought surcharges in the table below are measured in dollars
per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Tier 1 0.20 0.43 0.64
Tier 2 0.58 1.21 1.85
Temporary unmetered service to residential
subdivision developers, per connection ........................................................................ $6.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicab
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Calculation of Usage Tiers
Tier 1 water usage shall be calculated and billed based upon a level of 0.2 ccf per day
rounded to the nearest whole ccf, based on meter reading days of service. As an example,
for a 30 day bill, the Tier 1 level would be 0 through 6 ccf. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
(SGY7MKR)RZIPSTI-( * ('')%%')%*) %&) (''*
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-3 Effective 7-1-2017
dated 7-1-2016 Sheet No W-1-3
3. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
(SGY7MKR)RZIPSTI-( * ('')%%')%*) %&) (''*
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-1 Effective 7-1-2017
dated 7-1-2016 Sheet No W-2-1
A. APPLICABILITY:
This schedule applies to all water taken from fire hydrants for construction, maintenance, and
other uses in conformance with provisions of a Hydrant Meter Permit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water Service.
C. RATES:
1. Monthly Service Charge.
METER SIZE
5/8 inch ........................................................................................................................... 50.00
3 inch ........................................................................................................................... 125.00
2. Commodity Rate: (per hundred cubic feet) ................................................................ $7.68
3. Drought Surcharges (deactivated):
A drought surcharge will be added to the Custo
City Council has determined that a water reduction level is in effect for the City as described in
Section D.5. The drought surcharges in the table below are measured in dollars per hundred
cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.26 0.53 0.77
D. SPECIAL NOTES:
1. Monthly charges shall include the applicable monthly service charge in addition to usage billed at
the commodity rate.
2. Any applicant using a hydrant without obtaining a Hydrant Meter Permit or any permittee using a
(SGY7MKR)RZIPSTI-( * ('')%%')%*) %&) (''*
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-2 Effective 7-1-2017
dated 7-1-2016 Sheet No W-2-2
hydrant without a Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in
addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or
revoked for failure to pay such fee.
3. A meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a
prerequisite to the issuance of a permit and meter(s). A charge of $50.00 per day will be added for
delinquent return of hydrant meters. A fee will be charged for any meter returned with missing or
damaged parts.
4. Any person or company using a fire hydrant improperly or without a permit, or who draws water
from a hydrant without a meter installed and properly recording usage shall, in addition to all other
applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code.
5. During period of water shortage or restrictions on local water use, the City Council may, by
resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level.
While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought
Surcharge is to recover revenues lost as a result of reduced consumption.
{End}
(SGY7MKR)RZIPSTI-( * ('')%%')%*) %&) (''*
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-1 Effective 7-1-2017
dated 7-1-2016 Sheet No W-4-1
A. APPLICABILITY:
This schedule applies to non-residential water service in the City of Palo Alto and its distribution
area. This schedule is also applicable to multi-family residential customers served through a master
meter.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water Service.
C. RATES:
Per Meter
Monthly Service Charge Per Month
For 5/8-inch meter .................................................................................... $ 16.77
For 3/4-inch meter .................................................................................... 22.60
For 1-inch meter .................................................................................... 34.26
For 1 ½-inch meter .................................................................................... 63.40
For 2-inch meter .................................................................................... 98.37
For 3-inch meter .................................................................................... 209.11
For 4-inch meter .................................................................................... 372.31
For 6-inch meter .................................................................................... 762.81
For 8-inch meter .................................................................................... 1,403.94
For 10-inch meter .................................................................................... 2,219.92
For 12-inch meter .................................................................................... 2,919.34
Commodity Rates: (to be added to Service Charge)
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Per ccf ............................................................................................................ $ 7.68
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-2 Effective 7-1-2017
dated 7-1-2016 Sheet No W-4-2
Drought Surcharges (deactivated):
Council has determined that a water reduction level is in effect for the City as described in Section
D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet
(ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.26 0.53 0.77
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-1 Effective 7-1-2017
dated 7-1-2016 Sheet No W-7-1
A. APPLICABILITY:
This schedule applies to non-residential water service supplying dedicated irrigation meters in the
City of Palo Alto and its distribution area.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water Service.
C. RATES:
Per Meter
Monthly Service Charge Per Month
For 5/8-inch meter .................................................................................... $ 16.77
For 3/4-inch meter .................................................................................... 22.60
For 1-inch meter .................................................................................... 34.26
For 1 1/2 inch meter .................................................................................... 63.40
For 2-inch meter .................................................................................... 98.37
For 3-inch meter .................................................................................... 209.11
For 4-inch meter .................................................................................... 372.31
For 6-inch meter .................................................................................... 762.81
For 8-inch meter .................................................................................... 1,403.94
For 10-inch meter .................................................................................... 2,219.92
For 12-inch meter .................................................................................... 2,919.34
Commodity Rates: (to be added to Service Charge)
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Per ccf ............................................................................................................ $ 9.08
Drought Surcharges (deactivated):
Council has determined that a water reduction level is in effect for the City as described in Section
D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-2 Effective 7-1-2017
dated 7-1-2016 Sheet No W-7-2
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.53 1.25 2.02
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
DocuSign Envelope ID: F0490DC2-C3EA-4ACE-AFE3-78ABE59DCC6F
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