HomeMy WebLinkAboutRESO 102301
6056919
Resolution No. 20230
Resolution of the Council of the City of Palo Alto Approving the
FY 2026 Wastewater Collection Utility Financial Forecast and Reserve Management Practices,
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), and
Repealing Rate Schedules S-3 (Industrial Waste Laboratory and Analysis Charges) and S-4
(Hauled Liquid Waste Charges)
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 Forecasts or 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 and Financial Forecast
(Exhibit 4 and Exhibit 1) attached to this resolution and made a part of the staff report presented
to the City Council.
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 16, 2025, 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 16, 2025 public hearing was mailed to all City of Palo Alto
Utilities wastewater customers by May 2, 2025.
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:
SECTION 1. The Council hereby approves the Reserves Management Practices (Exhibit
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
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4 1)and FY 2026 Financial Forecast presented to the Finance Committee on April 1, 2025 2 and
updated by the June 16, 2025 Council report, (Exhibit 1 3), which is attached to this resolution
and made a part of the staff report presented to the City Council.
SECTION 2. 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 shown in Exhibit 2. Utility Rate Schedule S-1, as amended, shall become effective
July 1, 2025.
SECTION 3. 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
shown in Exhibit 2 4. Utility Rate Schedule S-2, as amended, shall become effective July 1, 2025.
SECTION 4. 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
shown in Exhibit 2. Utility Rate Schedule S-6, as amended, shall become effective July 1, 2025.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is
hereby amended to read as shown in Exhibit 2. Utility Rate Schedule S-7, as amended, shall
become effective July 1, 2025.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule S-3 (Industrial Waste Laboratory and Analysis Charges) is hereby repealed, effective
July 1, 2025 (Exhibit 3 5).
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate
Schedule S-4 (Hauled Liquid Waste Charges) is hereby repealed, effective July 1, 2025 (Exhibit
3).
SECTION 8. 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.
1 Exhibit 4 https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2025/june-16/rates-attachments/attachment-a-exhibit-4-fy26-wastewater-reserve-management-
practices.pdf
2 Meeting Agenda Item 2: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16017)
3 Exhibit 1 https://www.paloalto.gov/files/assets/public/v/3/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2025/june-16/rates-attachments/finalized-attachment-a-exhibit-1-fy26-wastewater-collection-utility-
financial-forecast-and-cip-detail.pdf
4 Exhibit 2 https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2025/june-16/rates-attachments/attachment-a-exhibit-2-fy26-wastewater-rate-schedules.pdf
5 Exhibit 3 https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2025/june-16/rates-attachments/attachment-a-exhibit-3-wastewater-rate-schedules-repealed.pdf
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
3
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SECTION 9. 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 10. The Council finds that the adoption of this resolution approving the FY
2026 Wastewater Collection Utility Financial Forecast and Reserve Management Practices 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 16, 2025
AYES: BURT, LAUING, LU, LYTHCOTT-HAIMS, RECKDAHL, VEENKER
NOES:
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: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Exhibit 1
The Wastewater Collection Utility Financial Forecast and CIP Details have been updated since the April 1, 2025
version reviewed by the Finance Committee;1 the specific changes are summarized in Staff Report 2411-3776.
This exhibit contains the following tables:
•Table 1: Updated June 16, 2025 Council Version of the Wastewater Collection Utility Financial Forecast. Key
Updated Numbers Shown in Red.
•Table 2: April 1, 2025 Finance Committee Version of the Wastewater Collection Utility Financial Forecast for
Quick Reference.
•Table 3: Updated June 16, 2025 Council Version of the Wastewater Collection Utility CIP Detail. Key
Updated Numbers Shown in Red.
•Table 4: April 1, 2025 Finance Committee Version of the Wastewater Collection Utility CIP Detail for Quick
Reference.
1 Finance Committee Meeting Agenda April 1, 2025, Item 2:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16017
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Exhibit 1
Table 1: Updated June 16, 2025 Council Version of the Wastewater Collection Utility Financial
Forecast. Key Updated Numbers Shown in Red.
Fiscal Year 2022 2023 2024 2025 2026 2027 2028 2029 2030
1 % Change in Retail Rate 3% 3% 9% 15% 20%16% 14%5% 5%
2 Retail Sales Revenue 19,778 20,694 22,337 26,075 30,684 35,643 40,664 42,833 44,975
3 Connection & Capacity Fees 203 219 492 317 330 343 357 371 386
4 Other Revenues & Transfers In 486 387 1,315 417 433 451 469 488 507
5 Interest 141 168 89 92 94 96 98 100 102
6 REVENUES 20,608 21,468 24,233 26,900 31,542 36,533 41,588 43,791 45,969
7 Treatment 9,479 10,784 13,803 12,239 13,935 13,477 14,060 14,508 18,204
8 Allocated Charges (Operating)3,251 2,158 2,175 2,281 2,424 2,521 2,622 2,726 2,836
9 Customer Service 407 414 463 501 542 564 587 610 634
10 Collection Operations 3,697 4,054 5,299 5,867 6,417 6,036 6,277 6,528 6,790
11 Engineering (Operating)261 273 338 370 404 420 436 453 471
12 Debt Service 128 129 129 - - - - - -
13 Rent 257 268 281 299 307 316 324 333 342
14 Other/ Transfers Out 229 526 209 305 976 558 566 238 244
15 Capital *5,225 6,446 11,217 2,999 4,898 9,000 17,000 17,000 15,000
16 EXPENSES 22,933 25,052 33,915 24,860 29,903 32,891 41,872 42,398 44,522
17 INTO / (OUT OF) RESERVES (2,325) (3,584) (9,682) 2,040 1,639 3,641 (284) 1,393 1,448
18 Ending Operations Reserve 4,252 (673) (1,012) 1,028 2,667 6,308 6,024 7,417 8,865
19 Ending Commitments & Reappropriations 4,612 9,534 613 307 - - - - -
20 Ending CIP Reserve 3,178 - - - - 2,756 3,919 10,968 9,033
21 Ending Rate Stabilization Reserve 342 - - - - - - - -
22 Unassigned Reserves - - - - - - - - -
23 Operations Reserve Guidelines
24 Max (150 Days Treatment/O&M Exp) 7,277 7,646 9,328 8,984 10,276 9,818 10,221 10,438 12,132
25 Target (105 Days Treatment/O&M Exp) 5,094 5,353 6,529 6,289 7,193 6,873 7,155 7,306 8,493
26 Min (60 Days Treatment/O&M Exp) 2,911 3,059 3,731 3,594 4,110 3,927 4,088 4,175 4,853
27 Short Term Risk Assessment Value 1,739 2,515 3,357 2,522 3,066 2,773 3,033 3,164 3,619
* Capital for FY 2022 - FY 2026. FY 2027 - FY 2030 represents CIP funding from the Operations Reserve to the CIP Reserve
Actual Projected
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Exhibit 1
Table 2: April 1, 2025 Finance Committee Version of the Wastewater Collection Utility Financial
Forecast for Quick Reference.
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Exhibit 1
Table 3: Updated June 16, 2025 Council Version of the Wastewater Collection Utility Capital
Improvement Program (CIP) Details. Key Updated Numbers Shown in Red.
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Exhibit 1
Table 4: April 1, 2025 Finance Committee Version of the Wastewater Collection Utility Capital
Improvement Program (CIP) Details for Quick Reference
Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
RESIDENTIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-1-1 Effective 7-1-20254
dated 7-1-20243 Sheet No S-1-1
A. APPLICABILITY:
This schedule applies to each Occupied Domestic Dwelling unit.
B.TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Service.
C. RATES:
Per Month
Each Occupied Domestic Dwelling unit ................................................................................
$55.9367.11
D.SPECIAL NOTES:
1. Any dwelling unit being individually served by a Water, Gas, or Electric Meter will be
considered continuously occupied.
2.For two or more Occupied Domestic Dwelling units served by one Water Meter, the
monthly Wastewater charge will be calculated by multiplying the current Wastewater rate
by the number of dwelling units.
3.Each developed separate lot shall have a separate service lateral to a sanitary main or
manhole.
{End}
Exibit 2Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-2-1 Effective 7-1-20254
dated 7-1-20243 Sheet No S-2-1
A. APPLICABILITY:
This schedule applies to all commercial establishments other than those served under Utility Rate
Schedule S-1 (Residential Wastewater Collection and Disposal), Rate Schedule S-6 (Restaurant
Wastewater Collection and Disposal) or Rate Schedule S-7 (Commercial Establishments
Wastewater Disposal – Industrial Discharger).
B.TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Service.
C. RATES:
Quantity Rate, per 100 cubic feet (See Section D.1) ..........................................................$12.520.44
D.SPECIAL NOTES:
1. The monthly charge for the quantity rate set forth in Section C of this rate schedule will be
based upon the average Water usage for the months of January, February and March, and
applied in the following July. If a Water Meter is identified as exclusively serving
irrigation landscaping, such Meter will be exempted from Wastewater charge calculations.
Customers without an applicable usage history will be rebuttably presumed to have usage
of 4.8 ccf per month until such time as such usage may reasonably be established by the
City of Palo Alto Utilities Department.
2. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in
which case Service will be governed by terms of a special agreement between the City and
the Customer.
{End}
Exibit 2Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
RESTAURANT WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-6
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-6-1 Effective 7-1-20254
dated 7-1-20243 Sheet No S-6-1
A. APPLICABILITY:
This schedule applies to all restaurants.
B.TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Service.
C. RATES:
Quantity Rates, per 100 cubic feet of monthly metered Water usage ...................................$
18.695.58
D.SPECIAL NOTES:
1.The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in
which case Service will be governed by terms of a special agreement between the City and
the Customer.
{End}
Exibit 2Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
–INDUSTRIAL DISCHARGER
UTILITY RATE SCHEDULE S-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-7-1 Effective 7-1-20254
dated 7-1-20243 Sheet No S-7-1
A. APPLICABILITY:
This schedule applies to any establishment requiring sampling of industrial discharges in excess
of 25,000 gallons per day, or special discharge monitoring, as defined in Rule 23, Section C.
B.TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Service.
C. RATES:
1. Collection System Operation, Maintenance, and Infiltration Inflow:
$ 6.215.18 per 100 cubic feet of metered water use.
2.Advanced Waste Treatment Operations and Maintenance Charge:
$ 2.4807 per 100 cubic feet of metered water use
3. $304.18253.49 per 1000 pounds (lbs) of COD (Chemical Oxygen Demand)
4. $ 733.40611.17 per 1000 lbs of SS (Suspended Solids)
5. $ 5,067.704,223.09 per 1000 lbs of NHRR3RR (Ammonia)
6. $ 22,233.9418,528.29 per 1000 lbs of toxics (chromium, copper, cyanide, lead, nickel, silver,
and zinc)
D.SPECIAL NOTES:
1.Water usage will be determined as defined in Rule 23, Section C. If a Water Meter is
identified as exclusively serving irrigation landscaping, such Meter will be exempted from
Wastewater charge calculations.
2.The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in
which case Service will be governed by terms of a special agreement between the City of
Palo Alto and the Customer.
3.Charges for large discharges will be determined on the basis of sampling as outlined in
Utilities Rule 23, Section C. However, for purposes of arriving at an accurate flow
estimate, discharge Meters, if installed, can be utilized to measure outflow for billing
purposes. Annual charges will be determined and allocated monthly for billing purposes.
{End}
Exibit 2Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
INDUSTRIAL WASTE LABORATORY AND ANALYSIS CHARGES
UTILITY RATE SCHEDULE S-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.S-3-1 Repealed Effective 7-1-2002
dated 7-1-90 Sheet No.S-3-1
A. APPLICABILITY:
This schedule applies to all industrial waste.
B. TERRITORY:
Within the service area of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
1. Wastewater Analysis:
Analyses made to determine compliance with Palo Alto Municipal Code shall be charged at rates
equivalent to those charged to Palo Alto by its contract laboratory. A $100 administrative fee shall
be added per sample for those samples analyzed by Palo Alto's contract laboratory.
{End}
Exhibit 3Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
HAULED LIQUID WASTE CHARGES
UTILITY RATE SCHEDULE S-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Repealed Effective 7-1-2002
Supersedes Sheet No. S-4-1 dated 7-1-92 Sheet No.S-4-1
A. APPLICABILITY:
This schedule applies to wastes as defined in Rule and Regulation 23.
B. TERRITORY:
Wastes originating from within and outside the Regional Water Quality Control Plant Service
Area.
C. RATES:
1.Hauled Septic Tank Wastes
Per load of 1,000 gallons or less .................................................................. $60.00
Each additional 500 gallons or portion thereof ............................................ 30.00
2.Portable Toilet Pumping
Per load of 1,000 gallons or less .................................................................. $60.00
Each additional 500 gallons or portion thereof ............................................ 30.00
3.Grease Trap Waste
Per load of 1,000 gallons or less .................................................................. $100.00
Each additional 500 gallons or portion thereof ............................................ 50.00
Permit to discharge hauled liquid wastes ....................................................................... $100.00/yr.
A bond or cash deposit for $2,000 shall be posted with the appropriate City Department for all
liquid waste-haulers discharging at the Palo Alto Regional Water Quality Control Plant.
{End}
Exhibit 3Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
WASTEWATER COLLECTION UTILITY RESERVES MANAGEMENT PRACTICES
The following reserves management practices shall be used when developing the Wastewater
Collection Utility Financial Plan:
Section 1. Definitions
a)“Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, if the Financial Plan delivered in
conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY 2015
to FY 2019 would be the Financial Planning Period.
b)“Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c)“Net Assets” - The Government Accounting Standards Board defines a Utility’s Net Assets
as the difference between its assets and liabilities.
d)“Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Reserves
The Wastewater Collection Utility’s Fund Balance is reserved for the following purposes:
a)For existing contracts, as described in Section 3 (Reserve for Commitments)
b)For operating and capital budgets re-appropriated from previous years, as described in
Section 4 (Reserve for Re-appropriations)
c)For cash flow management and contingencies related to the Wastewater Collection
Utility’s Capital Improvement Program (CIP), as described in Section 5 (CIP Reserve)
d)For rate stabilization, as described in Section 6 (Rate Stabilization Reserve)
e)For operating contingencies, as described in Section 7 (Operations Reserve)
f)Any funds not included in the other reserves will be considered Unassigned Reserves and
shall be returned to ratepayers or assigned a specific purpose as described in Section 8
(Unassigned Reserves).
Section 3. Reserve for Commitments
At the end of each fiscal year the Reserve for Commitments will be set to an amount equal
to the total remaining spending authority for all contracts in force for the Wastewater
Collection Utility at that time.
Section 4. Reserve for Re-appropriations
At the end of each fiscal year the Reserve for Re-appropriations will be set to an amount
equal to the amount of all remaining capital and non-capital budgets, if any, that will be re-
appropriated to the following fiscal year in accordance with Palo Alto Municipal Code
Section 2.28.090.
Exhibit 4Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Section 5. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following
practices:
a)The following guideline levels are set forth for the CIP Reserve. These guideline levels are
calculated for each fiscal year of the Financial Planning Period and approved by Council
Resolution.
Minimum Level 20% of the maximum CIP Reserve guideline level
Maximum Level Average annual (12 month)1 CIP budget, for 48
months of budgeted CIP expenses2
b)Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and
the Reserve for Commitments when funds are added or removed from to that reserve as
a result of a change in contractual commitments related to CIP projects. Any other
additions to or withdrawals from the CIP reserve require Council action.
c)Minimum Level:
i)If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve reaching
its minimum level by the end of the next fiscal year. For example, if the CIP Reserve is
below its minimum level at the end of FY 2017, staff must present a plan by June 30,
2018 to return the reserve to its minimum level by June 30, 2019. In addition, staff
may present, and the Council may adopt, an alternative plan that takes longer than
one year to replenish the reserve, or that does so in a shorter period of time.
d)Maximum Level: If there are funds in this reserve in excess of the maximum level staff
must propose in the next Financial Plan to transfer these funds to another reserve, return
the funds to ratepayers, or designate a specific use of the funds for CIP investments that
will be made by the end of the next Financial Planning Period. Staff may also seek City
Council to approve holding funds in this reserve in excess of the maximum level if they
are held for a specific future purpose related to the CIP.
Section 6. Rate Stabilization Reserve
Funds may be added to the Rate Stabilization Reserve by action of the City Council and held
to manage the trajectory of future year rate increases. Withdrawal of funds from the Rate
Stabilization Reserve requires Council action. If there are funds in the Rate Stabilization
Reserve at the end of any fiscal year, any subsequent Wastewater Collection Utility
Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the
Financial Planning Period.
1 Each month is calculated based upon 1/12 of the annual budget.
2 For example, in the Financial Plan for FY 2022, the 48 month period to use to derive the
annual average is FY 2022 through FY 2025. In the FY 2023 Financial Plan, the 48 month period
to use to derive the annual average would be FY 2023 through FY 2026 etc.
Exhibit 4Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Section 7. Operations Reserve
The Operations Reserve is used to manage normal variations in costs and as a reserve for
contingencies. Any portion of the Wastewater Collection Utility’s Fund Balance not included
in the reserves described in Section 3-Section 6 above will be included in the Operations
Reserve unless this reserve has reached its maximum level as set forth in Section 7(d)
below. Staff will manage the Operations Reserve according to the following practices:
a)The following guideline levels are set forth for the Operations Reserve. These guideline
levels are calculated for each fiscal year of the Financial Planning Period based on the
levels of Operations and Maintenance (O&M) and commodity expense forecasted for that
year in the Financial Plan.
Minimum Level 60 days of O&M and commodity expense
Target Level 105 days of O&M and commodity expense
Maximum Level 150 days of O&M and commodity expense
b)Minimum Level: If, at the end of any fiscal year, the funds remaining in the Operations
Reserve are lower than the minimum level set forth above, staff shall present a plan to
the City Council to replenish the reserve. The plan shall be delivered within six months of
the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its
minimum level by the end of the following fiscal year. For example, if the Operations
Reserve is below its minimum level at the end of FY 2014, staff must present a plan by
December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In
addition, staff may present, and the Council may adopt, an alternative plan that takes
longer than one year to replenish the reserve.
c)Target Level: If, at the end of any fiscal year, the Operations Reserve is higher or lower
than the target level, any Financial Plan created for the Wastewater Collection Utility shall
be designed to return the Operations Reserve to its target level within four years.
d)Maximum Level: If, at any time, the Operations Reserve reaches its maximum level, no
funds may be added to this reserve. Any further increase in the Wastewater Collection
Utility’s Fund Balance shall be automatically included in the Unassigned Reserve
described in Section 8, below.
Section 8. Unassigned Reserve
If the Operations Reserve reaches its maximum level, any further additions to the
Wastewater Collection Utility’s Fund Balance will be held in the Unassigned Reserve. If there
are any funds in the Unassigned Reserve at the end of any fiscal year, the next Financial Plan
presented to the City Council must include a plan to assign them to a specific purpose or
return them to the Wastewater Collection Utility ratepayers by the end of the first fiscal year
of the next Financial Planning Period. For example, if there were funds in the Unassigned
Reserves at the end of FY 2015, and the next Financial Planning Period is FY 2016 through FY
2020, the Financial Plan shall include a plan to return or assign any funds in the Unassigned
Reserve by the end of FY 2016. Staff may present an alternative plan that retains these funds
or returns them over a longer period of time.
Exhibit 4Docusign Envelope ID: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0
Certificate Of Completion
Envelope Id: 9D9D99EC-03CA-4F31-8161-B1FB765CCEF0 Status: Completed
Subject: RESO 10230 - Wastewater Rates
Source Envelope:
Document Pages: 17 Signatures: 6 Envelope Originator:
Certificate Pages: 5 Initials: 0 Christine Prior
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Christine.Prior@PaloAlto.gov
IP Address: 165.225.242.87
Record Tracking
Status: Original
6/25/2025 10:59:32 AM
Holder: Christine Prior
Christine.Prior@PaloAlto.gov
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@paloalto.gov
Assistant City Attorney
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 6/25/2025 11:02:27 AM
Viewed: 6/25/2025 12:20:40 PM
Signed: 6/25/2025 12:24:11 PM
Electronic Record and Signature Disclosure:
Accepted: 7/16/2015 5:52:40 AM
ID: d8ecb53d-ef81-4016-8886-1560c48de42a
Lauren Lai
Lauren.Lai@paloalto.gov
Director Administrative Services/CFO
COPA
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 199.33.32.254
Sent: 6/25/2025 12:24:13 PM
Viewed: 6/25/2025 12:32:05 PM
Signed: 6/25/2025 12:32:13 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Alan Kurotori
Alan.Kurotori@paloalto.gov
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: 6/25/2025 12:32:14 PM
Viewed: 6/30/2025 3:33:53 PM
Signed: 6/30/2025 3:34:04 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Ed Shikada
Ed.Shikada@paloalto.gov
Ed Shikada
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 165.225.242.105
Sent: 6/30/2025 3:34:07 PM
Viewed: 7/1/2025 7:55:53 AM
Signed: 7/1/2025 7:56:00 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Signer Events Signature Timestamp
Ed Lauing
Ed.Lauing@paloalto.gov
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 73.158.105.71
Sent: 7/1/2025 7:56:01 AM
Viewed: 7/1/2025 12:26:23 PM
Signed: 7/1/2025 12:26:42 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Mahealani Ah Yun
Mahealani.AhYun@paloalto.gov
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 217.61.175.43
Signed using mobile
Sent: 7/1/2025 12:26:44 PM
Viewed: 7/1/2025 3:11:50 PM
Signed: 7/1/2025 3:12:56 PM
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 6/25/2025 11:02:27 AM
Certified Delivered Security Checked 7/1/2025 3:11:50 PM
Signing Complete Security Checked 7/1/2025 3:12:56 PM
Completed Security Checked 7/1/2025 3:12:56 PM
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. Described below are the terms and conditions for
providing to you such notices and disclosures electronically through your DocuSign, Inc.
(DocuSign) Express user account. Please read the information below carefully and thoroughly,
and if you can access this information electronically to your satisfaction and agree to these terms
and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of
this document.
Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available
electronically to you by us. For such copies, as long as you are an authorized user of the
DocuSign system you will have the ability to download and print any documents we send to you
through your DocuSign user account for a limited period of time (usually 30 days) after such
documents are first sent to you. After such time, if you wish for us to send you paper copies of
any such documents from our office to you, you will be charged a $0.00 per-page fee. You may
request delivery of such paper copies from us by following the procedure described below.
Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time
change your mind and tell us that thereafter you want to receive required notices and disclosures
only in paper format. How you must inform us of your decision to receive future notices and
disclosure in paper format and withdraw your consent to receive notices and disclosures
electronically is described below.
Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the
speed at which we can complete certain steps in transactions with you and delivering services to
you because we will need first to send the required notices or disclosures to you in paper format,
and then wait until we receive back from you your acknowledgment of your receipt of such
paper notices or disclosures. To indicate to us that you are changing your mind, you must
withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your
DocuSign account. This will indicate to us that you have withdrawn your consent to receive
required notices and disclosures electronically from us and you will no longer be able to use your
DocuSign Express user account to receive required notices and consents electronically from us
or to sign electronically documents from us.
All notices and disclosures will be sent to you electronically
Unless you tell us otherwise in accordance with the procedures described herein, we will provide
electronically to you through your DocuSign user account all required notices, disclosures,
authorizations, acknowledgements, and other documents that are required to be provided or
made available to you during the course of our relationship with you. To reduce the chance of
you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required
notices and disclosures to you by the same method and to the same address that you have given
us. Thus, you can receive all the disclosures and notices electronically or in paper format through
the paper mail delivery system. If you do not agree with this process, please let us know as
described below. Please also see the paragraph immediately above that describes the
consequences of your electing not to receive delivery of the notices and disclosures
electronically from us.
Electronic Record and Signature Disclosure created on: 10/1/2013 8:33:53 AM
Parties agreed to: Amy Bartell
How to contact City of Palo Alto:
You may contact us to let us know of your changes as to how we may contact you electronically,
to request paper copies of certain information from us, and to withdraw your prior consent to
receive notices and disclosures electronically as follows:
To contact us by email send messages to: david.ramberg@cityofpaloalto.org
To advise City of Palo Alto of your new e-mail address
To let us know of a change in your e-mail address where we should send notices and disclosures
electronically to you, you must send an email message to us at
david.ramberg@cityofpaloalto.org and in the body of such request you must state: your previous
e-mail address, your new e-mail address. We do not require any other information from you to
change your email address..
In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected
in your DocuSign account by following the process for changing e-mail in DocuSign.
To request paper copies from City of Palo Alto
To request delivery from us of paper copies of the notices and disclosures previously provided
by us to you electronically, you must send us an e-mail to david.ramberg@cityofpaloalto.org and
in the body of such request you must state your e-mail address, full name, US Postal address, and
telephone number. We will bill you for any fees at that time, if any.
To withdraw your consent with City of Palo Alto
To inform us that you no longer want to receive future notices and disclosures in electronic
format you may:
i. decline to sign a document from within your DocuSign account, and on the subsequent
page, select the check-box indicating you wish to withdraw your consent, or you may;
ii. send us an e-mail to david.ramberg@cityofpaloalto.org and in the body of such request
you must state your e-mail, full name, IS Postal Address, telephone number, and account
number. We do not need any other information from you to withdraw consent.. The
consequences of your withdrawing consent for online documents will be that transactions
may take a longer time to process..
Required hardware and software
Operating Systems: Windows2000? or WindowsXP?
Browsers (for SENDERS): Internet Explorer 6.0? or above
Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0,
NetScape 7.2 (or above)
Email: Access to a valid email account
Screen Resolution: 800 x 600 minimum
Enabled Security Settings:
•Allow per session cookies
•Users accessing the internet behind a Proxy
Server must enable HTTP 1.1 settings via
proxy connection
** These minimum requirements are subject to change. If these requirements change, we will
provide you with an email message at the email address we have on file for you at that time
providing you with the revised hardware and software requirements, at which time you will
have the right to withdraw your consent.
Acknowledging your access and consent to receive materials electronically
To confirm to us that you can access this information electronically, which will be similar to
other electronic notices and disclosures that we will provide to you, please verify that you
were able to read this electronic disclosure and that you also were able to print on paper or
electronically save this page for your future reference and access or that you were able to
e-mail this disclosure and consent to an address where you will be able to print on paper or
save it for your future reference and access. Further, if you consent to receiving notices and
disclosures exclusively in electronic format on the terms and conditions described above,
please let us know by clicking the 'I agree' button below.
By checking the 'I Agree' box, I confirm that:
• I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF
ELECTRONIC CONSUMER DISCLOSURES document; and
• I can print on paper the disclosure or save or send the disclosure to a place where I can
print it, for future reference and access; and
• Until or unless I notify City of Palo Alto as described above, I consent to receive from
exclusively through electronic means all notices, disclosures, authorizations,
acknowledgements, and other documents that are required to be provided or made
available to me by City of Palo Alto during the course of my relationship with you.