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Home My WebLink AboutRESO 9602160322 sdl 6053683 Resolution No. 9602 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), W3 (Fire Service Connections), W4 (Residential MasterMetered and General NonResidential Water Service), and W7 (NonResidential Irrigation Water Service) R E C I T A L S A. 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. B. On June 13, 2016, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals. C. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the June 13, 2016 public hearing was mailed to all City of Palo Alto Utilities water customers by April 29, 2016. D. 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, 2016. 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, 2016. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W3 (Fire Service Connections) is hereby amended to read as attached and incorporated. Utility Rate Schedule W3, as amended, shall become effective July 1, 2016. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W4 (Residential MasterMetered and General NonResidential Water Service) is DocuSign Envelope ID: 88D43B7C-9A25-47E2-A016-053ECC102CFA 160322 sdl 6053683 hereby amended to read as attached and incorporated. Utility Rate Schedule W4, as amended, shall become effective July 1, 2016. SECTION 5. 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, 2016. SECTION 6. 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 7. 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. SECTION 8. 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. In order to charge the lowest drought surcharge possible, each rate schedule includes not only the surcharge required to meet the 25% reduction level, but also surcharges reflecting two lower levels of water use reduction. At any time, no more than one of these three surcharges will be applicable. 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 will be collected on all City of Palo Alto Utilities water customer bills as of September 1, 2015 and declared that the surcharge shall remain in effect until rescinded or modified by the City Council. // // DocuSign Envelope ID: 88D43B7C-9A25-47E2-A016-053ECC102CFA 160322 sdl 6053683 SECTION 9. 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 13, 2016 AYES: BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH NOES: ABSENT: BERMAN 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: 88D43B7C-9A25-47E2-A016-053ECC102CFA GENERAL RESIDENTIAL WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-1-1 dated 9-1-2015 W-1-1 A. APPLICABILITY: B. TERRITORY: C. RATES: (SGY7MKR)RZIPSTI-((&'%)%)'''*% GENERAL RESIDENTIAL WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-1-2 dated 9-1-2015 W-1-2 Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) D. SPECIAL NOTES: 1. Calculation of Cost Components 2. Calculation of Usage Tiers (SGY7MKR)RZIPSTI-((&'%)%)'''*% GENERAL RESIDENTIAL WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-1-3 dated 9-1-2015 W-1-3 3. Drought Surcharge {End} (SGY7MKR)RZIPSTI-((&'%)%)'''*% WATER SERVICE FROM FIRE HYDRANTS CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-2-1 dated 9-1-2015 W-2-1 A. APPLICABILITY: B. TERRITORY: C. RATES: Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) D. SPECIAL NOTES: (SGY7MKR)RZIPSTI-((&'%)%)'''*% WATER SERVICE FROM FIRE HYDRANTS CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-2-2 dated 9-1-2015 W-2-2 {End} (SGY7MKR)RZIPSTI-((&'%)%)'''*% FIRE SERVICE CONNECTIONS UTILITY RATE SCHEDULE W-3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-3-1 Effective 7-1-2016 dated 9-1-2015 Sheet No W-3-1 A. APPLICABILITY: This schedule applies to all public fire hydrants and private fire service connections. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides water services. C. RATES: 1. Monthly Service Charges Public Fire Hydrant .................................................................................................... $5.00 Private Fire Service: 2-inch connection ....................................................................................................... $3.79 4-inch connection ....................................................................................................... 23.42 6-inch connection ....................................................................................................... 68.03 8-inch connection ....................................................................................................... 144.97 10-inch connection ..................................................................................................... 260.70 12-inch connection ..................................................................................................... 421.11 2. Commodity (To be added to Service Charge unless water is used for fire extinguishing or testing purposes.) Per Hundred Cubic Feet All water usage........................................................................................................... $10.00 D. SPECIAL NOTES: 1. Service under this schedule may be discontinued if water is used for any purpose other than fire extinguishing or testing and repairing the fire extinguishing facilities. Using hydrants and fire services for other purposes is illegal and will be subject to the commodity charge as noted above, fines, and criminal prosecution pursuant to the Palo Alto Municipal Code. 2. For a combination water and fire service, the general water service schedule shall apply. (SGY7MKR)RZIPSTI-((&'%)%)'''*% FIRE SERVICE CONNECTIONS UTILITY RATE SCHEDULE W-3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-3-2 Effective 7-1-2016 dated 9-1-2015 Sheet No W-3-2 3. Utilities Rule and Regulation No. 21 provides additional information on Automatic Fire Services. 4. Repairs and testing of fire extinguishing facilities are not considered unauthorized use of water if records and documentation are supplied by the customer. {End} (SGY7MKR)RZIPSTI-((&'%)%)'''*% RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-4-1 dated 9-1-2015 W-4-1 A. APPLICABILITY: B. TERRITORY: C. RATES: (SGY7MKR)RZIPSTI-((&'%)%)'''*% RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-4-2 dated 9-1-2015 W-4-2 Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) D. SPECIAL NOTES: 1. Calculation of Cost Components 2. Drought Surcharge {End} (SGY7MKR)RZIPSTI-((&'%)%)'''*% NON-RESIDENTIAL IRRIGATION WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-7-1 dated 9-1-2015 W-7-1 A. APPLICABILITY: B. TERRITORY: C. RATES: (SGY7MKR)RZIPSTI-((&'%)%)'''*% NON-RESIDENTIAL IRRIGATION WATER SERVICE CITY OF PALO ALTO UTILITIES Supersedes Sheet No W-7-2 dated 9-1-2015 W-7-2 Water Usage Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) D. SPECIAL NOTES: 1. Calculation of Cost Components 2. 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