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HomeMy WebLinkAboutRESO 10050 6055597 Resolution No. 10050 Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2023 Gas Utility Financial Plan, Including Proposed Transfers, and Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G- 10 (Compressed Natural Gas Service) R E C I T A L S A. Each year the City of Palo Alto (“City”) regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations, including reserves. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. 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. C. On June 13, 2022, the City Council heard and approved the proposed rate increase at a noticed public hearing. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby adopts the FY 2023 Gas Utility Financial Plan. SECTION 2. The Council hereby approves the transfer of up to $2.766 Million from the Rate Stabilization Reserve to the Operations Reserve, and up $3 Million from the Operations Reserve to the CIP Reserve, as described in the FY 2023 Gas Utility Financial Plan approved via this resolution. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-1, as amended, shall become effective July 1, 2022. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall become effective July 1, 2022. DocuSign Envelope ID: 4125D6CC-6550-41A5-BD1F-B303A22C3678 6055597 SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-3, as amended, shall become effective July 1, 2022. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective July 1, 2022. SECTION 7. The City Council finds as follows: a. Revenues derived from the gas rates approved by this resolution do not exceed the funds required to provide gas service. b. Revenues derived from the gas rates approved by this resolution shall not be used for any purpose other than providing gas service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 8. 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: 4125D6CC-6550-41A5-BD1F-B303A22C3678 6055597 // SECTION 9. The Council finds that approving the Financial Plan does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental assessment is required. The Council finds that changing gas 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, 2022 AYES: BURT, CORMACK, DUBOIS, FILSETH, KOU NOES: TANAKA ABSENT: STONE ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services DocuSign Envelope ID: 4125D6CC-6550-41A5-BD1F-B303A22C3678 Certificate Of Completion Envelope Id: 4125D6CC655041A5BD1FB303A22C3678 Status: Completed Subject: Please DocuSign: RESO 10050 FY 2023 Gas Rates.docx Source Envelope: Document Pages: 3 Signatures: 6 Envelope Originator: Certificate Pages: 5 Initials: 0 Mahealani Ah Yun AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Mahealani.AhYun@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/15/2022 5:25:04 PM Holder: Mahealani Ah Yun Mahealani.AhYun@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Amy Bartell amy.bartell@cityofpaloalto.org Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Signed by link sent to amy.bartell@cityofpaloalto.org Using IP Address: 199.33.32.254 Sent: 6/15/2022 5:26:25 PM Viewed: 6/16/2022 9:25:39 AM Signed: 6/16/2022 9:26:06 AM Electronic Record and Signature Disclosure: Accepted: 7/16/2015 5:52:40 AM ID: d8ecb53d-ef81-4016-8886-1560c48de42a Kiely Nose kiely.nose@cityofpaloalto.org Director, Administrative Services/CFO City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Signed by link sent to kiely.nose@cityofpaloalto.org Using IP Address: 199.33.32.254 Sent: 6/16/2022 9:26:08 AM Viewed: 6/20/2022 8:16:23 PM Signed: 6/20/2022 8:16:35 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Dean Batchelor dean.batchelor@cityofpaloalto.org Director of Utilities City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Signed by link sent to dean.batchelor@cityofpaloalto.org Using IP Address: 199.33.32.254 Sent: 6/20/2022 8:16:37 PM Viewed: 6/21/2022 7:56:40 AM Signed: 6/21/2022 7:56:47 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Ed Shikada ed.shikada@cityofpaloalto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Signed by link sent to ed.shikada@cityofpaloalto.org Using IP Address: 199.33.32.254 Sent: 6/21/2022 7:56:49 AM Viewed: 6/23/2022 9:34:43 AM Signed: 6/23/2022 9:35:07 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Patrick Burt pat@patburt.org Mr Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Signed by link sent to pat@patburt.org Using IP Address: 185.224.57.161 Sent: 6/23/2022 9:35:08 AM Viewed: 6/24/2022 1:53:55 AM Signed: 6/24/2022 1:54:14 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lesley Milton Lesley.Milton@CityofPaloAlto.org City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Signed by link sent to Lesley.Milton@CityofPaloAlto.org Using IP Address: 199.33.32.254 Sent: 6/24/2022 1:54:16 AM Viewed: 6/24/2022 9:37:07 AM Signed: 6/24/2022 9:37:13 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/15/2022 5:26:25 PM Certified Delivered Security Checked 6/24/2022 9:37:07 AM Signing Complete Security Checked 6/24/2022 9:37:13 AM Completed Security Checked 6/24/2022 9:37:13 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure CONSUMER DISCLOSURE From time to time, City of Palo Alto (we, us or Company) may be required by law to provide to you certain written notices or disclosures. 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