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Home My WebLink AboutRESO 101731 027052824 Resolution No. 10173 Resolution of the Council of the City of Palo Alto Approving the FY 2025 Wastewater Collection Utility Financial Plan, Including Approval of a Short-Term Loan from the Fiber Optics Fund Reserve to the Wastewater Collection Fund Operations Reserve for FY 2024, and Adjusting Wastewater Rates by Amending Rate Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) R E C I T A L S A. Each year the City of Palo Alto (“City”) assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. 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. The City 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.The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made a part of the Financial Plans. C.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. D. On June 17, 2024, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals. E. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the June 17, 2024 public hearing was mailed to all City of Palo Alto Utilities wastewater customers by April 29, 2024. F. 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 wastewater 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: DocuSign Envelope ID: 19EC174B-2A4B-486E-B13C-4144B882CB1F 2 027052824 SECTION 1. The Council hereby approves the FY 2025 Wastewater Collection Utility Financial Plan (Exhibit 1). SECTION 2. The Council hereby approves a short term loan transfer from the Fiber Optics Fund Reserve to the Wastewater Collection Fund Operations Reserve of up to $3,000,000 for FY 2024, as described in the FY 2025 Wastewater Collection Utility Financial Plan (Exhibit 1). SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-1 (Residential Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-1, as amended, shall become effective July 1, 2024 (Exhibit 2). SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-2 (Commercial Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-2, as amended, shall become effective July 1, 2024 (Exhibit 2). SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-6 (Restaurant Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-6, as amended, shall become effective July 1, 2024 (Exhibit 2). SECTION 6. Pursuant to Section 12.20.010 of the Palo Alt o Municipal Code, Utility Rate Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-7, as amended, shall become effective July 1, 2024 (Exhibit 2). SECTION 7. The Council finds that the revenue derived from the wastewater rates approved by this resolution do not exceed the funds required to provide wastewater service, and the revenue derived from the adoption of this resolution shall be used only for 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: 19EC174B-2A4B-486E-B13C-4144B882CB1F 3 027052824 SECTION 9. The Council finds that the adoption of this resolution approving the FY 2025 Wastewater Collection Utility Financial Plan does not meet the California Environmental Quality Act’s 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 review is required. The Council finds that the adoption of this resolution changing Wastewater collection 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 17, 2024 AYES: BURT, KOU, LAUING, LYTHCOTT-HAIMS, STONE, VEENKER NOES: TANAKA ABSENT: 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: 19EC174B-2A4B-486E-B13C-4144B882CB1F Certificate Of Completion Envelope Id: 19EC174B2A4B486EB13C4144B882CB1F Status: Completed Subject: Docusign: Resolution 10173 - FY 2025 Wastewater Collection Utility Financial Plan Source Envelope: Document Pages: 3 Signatures: 6 Envelope Originator: Certificate Pages: 2 Initials: 0 Vinhloc Nguyen AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Vinhloc.Nguyen@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/20/2024 5:39:01 PM Holder: Vinhloc Nguyen Vinhloc.Nguyen@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 Aylin Bilir Aylin.Bilir@CityofPaloAlto.org Assistant City Attorney Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 108.211.178.63 Sent: 6/20/2024 5:41:25 PM Viewed: 6/24/2024 10:06:41 AM Signed: 6/24/2024 10:07:56 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lauren Lai lauren.lai@cityofpaloalto.org Director Administrative Services/CFO COPA Security Level: Email, Account Authentication (None) Signature Adoption: Drawn on Device Using IP Address: 71.198.223.128 Sent: 6/24/2024 10:07:57 AM Viewed: 7/1/2024 9:55:52 AM Signed: 7/1/2024 9:56:00 AM 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 Using IP Address: 199.33.32.254 Sent: 7/1/2024 9:56:01 AM Viewed: 7/1/2024 2:16:48 PM Signed: 7/1/2024 2:16:58 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada Ed.Shikada@CityofPaloAlto.org Ed Shikada City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 7/1/2024 2:16:59 PM Viewed: 7/1/2024 5:51:16 PM Signed: 7/1/2024 5:51:22 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Greer Stone greer.stone@cityofpaloalto.org Vice Mayor Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 46.193.128.104 Sent: 7/1/2024 5:51:23 PM Viewed: 7/2/2024 6:39:58 AM Signed: 7/2/2024 6:40:07 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Mahealani Ah Yun Mahealani.AhYun@CityofPaloAlto.org City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 73.241.64.7 Sent: 7/2/2024 6:40:09 AM Viewed: 7/2/2024 8:40:22 AM Signed: 7/2/2024 8:40:29 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 6/20/2024 5:41:25 PM Certified Delivered Security Checked 7/2/2024 8:40:22 AM Signing Complete Security Checked 7/2/2024 8:40:29 AM Completed Security Checked 7/2/2024 8:40:29 AM Payment Events Status Timestamps