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HomeMy WebLinkAbout1998-04-06 City Council (32)TO: FROM: City A City of Palo Alt Manager’s Report.II HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS AGENDA DATE: APRIL 6, 1998 CMR:183:98 SUBJECT:RESOLUTION PROVIDING DEBRIS BOX FEE REFUNDS TO FLOOD-DAMAGED RESIDENCES AND BUSINESSES RECOMMENDATION Staff recommends that Council adopt the attached resolution amending Utilities Rule and Regulation Number 2 to authorize a refund to residences and businesses who paid out-of.- pocket for debris box rentals from Palo Alto Sanitation Company (PASCO) for disposal of flood-damaged materials. BACKGROUND As a result of?ecent flooding, a number of residences and businesses had to rent debris boxes from PASCO to dispose of flood-damaged materials. Some residents’ homeowner’s insurance paid for this expense, while others had to pay out-of-pocket. Some residents have not yet begun the process of removing flood-damaged materials. On March -16 1998, Council adopted a resolution amending Utilities Rule and Regulation Number 2 to authorize t,he issuance of Utility bill credits to qualifying residents and businesses who increased their water, gas and/or electric consumption to mitigate property damage and losses (CMR: 155:98). Staff is requesting a similar resolution to address refunds for debris boxes. DISCUSSION Staff is recommending that a refund be: given to residences and businesses who paid out-of- pocket to rent debris boxes for removal of flood-damaged property, effectivefrom February 2, 1998 through August 31, 1998. This refund is intended to help defray some cost to residences and businesses of the flood damage cleanup and removal process. PASCO is documenting addresses that are requesting debris boxes for flood-damaged materials. Staffproposes to send each of these residences and businesses a form (Attachment CMR:183:98 Page 1 of 3 l) through which they can request the refund. The form will also require verification that the resident or business paid the incurred cost, and not an insurance company. Once the refund form is returned, staff will cross-check the provided information with City Geographical Information System (GIS) maps of known flooded areas in the City, and PASCO records of rented debris boxes. When verification of the request is confirmed, a full refund of the debris box rental fee will be processed. If Council approves the resolution, staff recommends the removal of four free-dumpsters, which have been placed for shared-use in the flood-affected areas, as residents would now be reimbursed for debris box rentals for flood-damaged property. RESOURCE IMPACT Although debris box rental fees are typically paid through the Refuse Fund, staff recommends that the General Fund provide the refunds to avoid rate payers having to bear the cost for the flood cleanup project. PASCO records indicate that to date approximately 75 boxes have been rented to residents since the flooding. However, how many of these would be eligible for a refund is difficult to estimate, since some homeowners’ insurance policies paid for the debris boxes. Estimating the number of residences who have not begun the clean up process is also difficult, therefore, the potential cost to the General Fund could reach $50,000. POLICY IMPLICATIONS The proposed resolution establishes a policy that is consistent, but not spelled out, in the current Utilities Rule and Regulation Number 2 "Policy Billing Adjustments." This rule proyides for "adjusting a customer’s bill for reasons of equity and fairness." With the recent flooding, some residences and businesses required the use of debris boxes to remedy a situation beyond their control. In this regard, the proposed revision to Utilities Rule and Regulation Number 2 extends authority for issuing billing adjustments or refunds of utility service changes incurred as a result of events of force majeure, including, and without limitations, floods, fires, and earthquakes. The refund will be limited to charges solely related to debris box rentals resulting from an event of force majeure. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act. environmental assessment is not required. Therefore, an CMR: 183:98 Page 2 of 3 ATTACHMENT A - Debris Box Rental Rebate Request B - Rules and Regulation #2 C - Resolution Prepared by:Janet Foreman, Coordinator, Public Works Projects DEPARTMENT REVIEW: GLENN S. ROBERTS Director of Public Works EMIL4~ HARRISON Assistant City Manager CMR: 183:98 Page 3 of 3 ATTACHMENT A DRAFT 1 Debris Box Rental Rebate Request I, the undersigned, request reimbursement for debris box rental for disposal of flood-damaged materials resulting from the winter storms of 1998. I attest that I incurred this cost, and that I have not or will not be reimbursed by my homeowner’s insurance company. Attached is a copy of my canceled check. Cost of debris box rental: Please print Name: Address: Phone Number: Signature:Date: For City Use Only Key code: 02511100 Object code: 3199 Job Ledger: 95114 Phase Code: 999 Department Approval Dat~ RULE AND REGULATION 2 Similarly, bill adjustments shall apply in cases where excessive consumption of water, gas and/or electricity occurred and where customers were forced to rent debris boxes as a result of the customer’s reasonable efforts to mitigate or remedy property damage or loss caused by an event of force majeure. 5. BILLING ADJUSTMENTS IN CONNECTION WITH FORCE MAJEURE EVENTS (E)Debris Boxes A billing adjustment in connection withdebris boxes shall be limited to charges incurred out-of-pocket by the resident, owner or business for removal of flood- damaged materials only. Refunds will not be applied to charges paid through insurance policies. Palo Alto Sanitation Company will keep a record Of those residences and businesses that request,debris boxes during the set time period. Customers may be required to provide documentation to verify damage to the residence or building, or contents thereof. A refund for the full amount of rental will be given upon receipt of a signed statement attesting that the bin was used for flood-damaged materials only and that no other refunds were received. ATTACHMENT B POLICY BILLING ADJUSTMENTS RULE AND REGULATION 2 A. GENERAL Under certain circumstances, the City will adjust a customer’s bill for reasons of equity and fairness. Such adjustments may relate to meter reading errors, late payment charges, water or gas leaks, and "smoothing" of two consecutive billing cycles. Similarly, bill adjustments shall apply in cases where excessive consumption of water, gas, and/or electricity occurred and where customers rented debris boxes as a result of the customer’s reasonable efforts to.mitigate or remedy property damage or loss caused by an event of force majeure. See Rule & Regulat!on No. 12 for a discussion of billing adjustments related to meter error or malfunction and backbilling a customer for billing errors. 1. METER READING ERRORS (A)Meter reading errors may be brought to the attention of the City by the customer or identified by a computer generated report as part of the billing review process. In many cases, a field investigation may be initiated by the City to verify unusual meter readings. (B)In general, when a meter reading error has been identified, the customer will be notified of the error on a timely basis and/or a revised bill reflecting the corrected meter readings and the appropriate adjustment will be issued by the City. 2.LATE PAYMENT CHARGES (A)Based on the particular merits of a given situation, late payment charges may be waived by the City. Examples of situations whereby a waiver is granted are generally those under which the customer is faced with circumstances beyond his or her control. Two examples are: (1) The posting of payments received by the City is delayed or in error. (2)The customer is withholding payment or partial payment pending resolution of an inquiry. Issued by the City Council Supersedes Sheet No. 2-1 dated 3-16-98 Effective 4-6-98 Sheet No. 2-1 POLICY BILLING ADJUSTMENTS RULE AND REGULATION°2 3. WATER OR GAS LEAK CREDITS Billing adjustments may be made for water or gas lost as a result of leakage in a line on the customer’s premises beyond the City meter. Leaking faucets, toilets, hoses, or sprinklers do not qualify for a billing credit unless a determination has been made by the City that the customer had no control of such device(s) leaking. Under no circumstances will a billing credit be provided a customer when the facts indicate that a customer had knowledge of a water or gas leak, but failed to take corrective measures in a timely manner. It is the customer’s responsibility to maintain their lines and equipment in a reasonable condition such that leaks do not occur. (A) (B) Generally, a leak credit will only be granted for a one month billing cycle. However, depending on the circumstances, a two month billing cycle may be granted by the Supervisor, Customer Service Center. Leak credits will not be provided.beyond atwo month billing cycle. All customer classes are eligible for the leak credit. To qualify for the water leak credit, evidence of having repaired the leak is required. Such evidence may consist of a plumbers repair bill or field verification by the City. Customers who are negligent or slow to react in repairing a leak do not qualify for a leak credit. (c)To arrive at the corrected bill amount which reflects the leak credit, the City will estimate what would have been the normal consumption and calculate a normal bill based on that consumption. Then, actual consumption in excess of the normal figure will be billed at the City’s current wholesale commodity cost plus ten percent. The sum of theses two calculations represents a revised billing amount. The leak credit is the difference between the revised billing amount and the original bill. 4.SMOOTHING ADJUSTMENT (A)A smoothing adjustment averages the usage of a customer over two billing cycles and re-calculates the bill based on a uniform usage pattern for each month. The Supervisor, Customer Service Center or a designated representative shall determine if a smoothing adjustment is indicated. Issued by the City Council Supersedes Sheet No. 2-2 dated 7-1-92 Effective 3-16-98 Sheet No. 2-2 POLICY BILLING ADJUSTMENTS RULE AND REGULATION 2 (B)A smoothing adjustment may be appropriate if consumption between two billing cycles changes to an extraordinary high level and is caused by the following: (1) An estimated meter reading by the City or; (2) A longer or irregular billing cycle. BILLING ADJUSTMENTS IN CONNECTION WITH FORCE MAJEURE EVENTS (A)For purposes of this Rule and Regulation, the term "force majeure" means the occurrence of an event that is beyond the reasonable control of the utility customer and, which by reasonable efforts, the customer could not prevent. Such events include, but are not limited to, an Act of God, an irresistible, superhuman cause, fire, flood, earthquake, or any other similar cause. (B) Water, Gas, and/or Electric A water, gas, and/or electric billing adjustment in connection with a force majeure event shall be limited to charges for water, gas, and/or electricity consumption in excess of the historical average for the customer The billing adjustment will be .applied as a credit on the customer’s bill. The credit is for the amount of excess usage and represents the difference between the amount charged for the applicable period and an amount calculated based on the customer’s average consumption for a similar period. This credit shall include a refund of any applicable utilities users tax that was based on the amount of excess usage. (2)The Director of Utilities shall determine the historical average consumption. Depending on the availability of data and other reasonable considerations, the basis for calculating such averages may be the same month(s) in a previous year, a recent 12 month average, a 6 month seasonal average for winter or summer, or other appropriate period(s) as determined by the Director of Utilities. Issued by the City Council Supersedes Sheet No. 2-3 dated 7-1-92 Effective 3-16-98 Sheet No. 2-3 POLICY BILLING ADJUSTMENTS RULE AND REGULATION 2 (C) Debris Boxes (D) (1)A billing adjustment or refund in connection with debris boxes shall be limited to Palo Alto Sanitation Company charges incurred or to be incurred out-of-pocket.by the resident, owner, or business for removal of flood- damaged materials only. Refunds will not be applied to charges paid through insurance policies. The Palo Alto Sanitation Company will keep a record of those residences and businesses that request debris boxes during the applicable refund period. To qualify for an adjustment under this section, the customer may be required to provide documentation to verify damage to the residence or building, or contents thereof. In circumstances in which the City has .previously verified such damage such as by a field visit or has made a determination from other information resources, documentation from the customer may not be required. However, to qualify for a refund for debris box rentals, a signed statement by the customer is required that attests that the debris box was used for flood- damaged materials only and that the customer has not and will not be reimbursed by homeowners insurance or any other agency. {END} Issued by the City Council Effective 4-6-98 Original Sheet No. 2-4 ATTACHMENT RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE REFUND OF DEBRIS BOX RENTAL CHARGES INCURRED AS A RESULT OF FLOOD-RELATED DAMAGE AND APPROVING A REVISION TO UTILITIES RULE AND REGULATION NUMBER 2 PERTAINING TO POLICY BILLING ADJUSTMENTS WHEREAS, the flooding of San Francisquito Creek during February 2 3, 1998 caused real property and personal property damage in Palo Alto, and certain Palo Alto utility customers who sustained such damage have incurred or will incur debris box rental expenses in order to facilitate the removal of flood-related damage from their premises; WHEREAS, under Utilities Rule and Regulation Number 2, the City of Palo Alto will adjust a Palo Alto utility customer’s bill for reasons of equity and fairness, and billing adjustments are expressly authorized in connection with utility service charges attributable to meter reading errors and water or natural gas leakages not caused by a utility customer, or incurred in connection with events of force majeure, including, without limitation, floods, fires and earthquakes; and WHEREAS, the City intends to extend billing adjustments or refunds to Palo Alto utility customers who have rentedor will rent their debris boxes from the Palo Alto Sanitation Company in connection with their efforts to remove debris resulting from the referenced February 1998 flooding; NOW, THEREFORE, the Council of the City ofPalo Alto does hereby RESOLVE as follows: SECTION I. The City Council hereby directs the Director of Utilities to suspend the collection of debris box rental charges authorized pursuant to Section 12.20.010 of the Palo Alto Municipal Code, or to refund the payment of such charges, as applicable, insofar as such charges have been incurred or will be incurred in connection with the rental of debris boxes from the Palo Alto Sanitation Company for the purposes of removing debris resulting from the flooding of San Francisquito Creek during February 2 - 3, 1998. The Director of Utilities shall determine whether any Palo Alto utility customer’s debris box rental cost or expense is related to the referenced flooding for.purposes of this section. SECTION 2. The City Council hereby approves a revision to the attached Utilities Rule and Regulation number 2, to ’permit certain refunds and billing adjustments to be made to or on behalf of Palo Alto utility customers for their costs of renting debris boxes of the Palo Alto Sanitation Company between February 3, 1998 and August 31, 1998, to remove debris caused by the February 1998 flooding of San Francisquito Creek, on condition that those rental 980326 syn 0071390 1 expenses have not and will not be reimbursed by homeowners insurance or any other source. SECTION 3. The refund or suspension of debris box rental charges for the removal of debris caused by the February 1998 flooding shall be effective for the billing cycles during the months of February through August, 1998. SECTION 4. The Council hereby finds that the action taken hereunder, including the approval of a modification to Rule and Regulation number 2, does not constitute a project for purposes of the California Environmental Quality Act, and, therefore, no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Public Works Acting Director of Administrative Services 980326 syn 0071390 2