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1998-06-22 City Council (17)
City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE: SUBJECT: JUNE 22, 1998 CMR:280:98 ADOPTION OF 1998-99 BUDGET AND APPROVAL OF BUDGET ADOPTION ORDINANCE, INCLUDING THE 1998-99 CAPITAL IMPROVEMENT PROGRAM, CHANGES TO THE MUNICIPAL FEE SCHEDULE, UTILITY RATES AND CHARGES, AND CHANGES TO COMPENSATION PLANS REPORT IN BRIEF This report transmits the Proposed 1998-99 Budget and Budget Adoption Ordinance, with related documents, which have been reviewed by the Finance Committee and are recommended to the Council for approval. CMR:280:98 Page 1 of 9 RECOMMENDATION Staff recommends that the City Council approve the following: The Budget Adoption Ordinance (Attachment One), which includes: The City Manager’s Proposed 1998-99 Budget: Volume I General Government Funds and Volume II Utility and Internal Service Funds (Exhibit A). All changes detailed in the "Amendments to the City Manager’s Proposed 1998-99 Budget" (Exhibit B). 3.1998-99 Proposed Municipal Fee Schedule (Exhibit C). o Changes and revised pages in the Table of Organization (Exhibit D). Fees in the Planning and Public Works Departments which will not become effective until September 1, 1998 (Exhibit E). 6. An amendment to the Proposed 1998-99 Municipal Fee Schedule. (Exhibit F). Also included are the following resolutions and reports: Utility Fund Rate Schedule Resolutions: a.Decrease in gas utility rates (Attachment Two) b.Increase in utility connection fees and service call charges (Attachment Three) Resolution Approving and Adopting Rules and Regulations Governing Utility Services and Fees and Charges (Attachment Four) Resolution Establishing and Authorizing the Funding of Rate Stabilization Reserves for Distribution Service and Supply Service in the Electric and Gas Utilities, Establishing a Public Benefits Reserve in the Electric Utility, Eliminating and Transferring the Balance in the Gas Fund Supplemental Supply Reserve to the Supply Service Rate Stabilization Reserve, and Transferring Certain Funds in the Rate Stabilization Reserve for the Electric Utility to the Calaveras Reserve (Attachment Five) Resolution Amending the Compensation Plan for Classified Personnel (Service Employees’ International Union, Local 715) (Attachment Six) Resolution Amending the Compensation Plan for Management and Confidential Personnel (Attachment Seven) CMR:280:98 Page 2 of 9 Resolution Amending the Compensation Plan for Fife Department Personnel (International Association of Firefighters, Local 1319) (Attachment Eight) City of Palo Alto Statement of Investment Policy and Proposed Changes to the City’s Investment Policy (Attachment Nine) BACKGROUND The City Manager’s Proposed 1998-99 Budget (Budget) was submitted to the Council on April 23, 1998. During the month of May, the Finance Committee held hearings and reviewed the Budget, along with the Municipal Fee Schedule and a Gas Fund rate schedule decrease. The City Council, the Finance Committee, and staff have all recommended changes to the Budget. DISCUSSION Accompanying this staff report is a Budget Amendment Ordinance which adopts the Budget, with exhibits and appendices. The changes in Exhibit B, as recommended by the City Council and the Finance Committee, and the major adjustments suggested by staff, are discussed below. The fmancial changes proposed for the General and Utility Fund Budgets are summarized in Appendices One, Two, and Three. The changes proposed for the Capital Improvement Fund Budget are summarized in Appendix Four. Recommended changes to departmental key plans and impact measures are included in Appendix Five. City Council-Directed Changes to Ci.ty Manager’s Proposed Budget o Emergency Operations Center As directed by the City Council on June 8, 1998, an additional $228,000 has been added to the Budget to acquire equipment and fund supporting systems for the City’s Emergency Operations Center. This direction at the June 8 meeting was part of the discussion of the response to the 1998 winter storms. This funding will come from the Reserve for Emergencies, consistent with the other storm-related expenses that were funded as part of the 1997-98 Midyear Financial Summary and Budget Amendment Ordinance (CMR: 169:98). o Interim Historic Regulations As a result of direction by the City Council on May 26, 1998, the Interim Historic Ordinance will continue, pending completion of the Historic Inventory and adoption of the Revised Ordinance. in order to support the continuation of the Interim Regulations, pending a report from staff regarding a schedule and further funding needs, it is recommended that an additional $35,000 be placed in the Budget to provide outside consulting support. CMR:280:98 Page 3 of 9 Finance Committee Changes to Cit Ma~nager’s Proposed Budget o Increased Staffing in the City Attorney’s Office A Senior City Attomey position, which is currently budgeted at 0.5 FTE, is recommended to be increased by 0.5 to 1.0 FTE. This position provides support to the Department of Planning and Community Environment, and the increase is requested to provide an adequate level of support to match the increased activity in the Department. This is a 0.25 FTE increase from the City Manager’s Proposed Budget, and reflects the Finance Committee’s support of a recommendation by the City Attorney. O Transfer of the Public Communications Officer from the City Clerk’s Office to the City Manager’s Office As discussed in a separate staff report, the Finance Committee recommends that the position and associated funding be transferred in order to consolidate the public information function in the City Manager’s Office. This consolidation will allow for more efficient and effective development and dissemination of public information. Special Events Shuttle Full Funding The Finance Committee recommends that an additional $5,000 be added to the Budget to fund costs associated with the Special Events Shuttle for the full fiscal year, including a July 4, 1999 event. o Senior Home Repair The Finance Committee recommends that a one-time amount of $11,000 be provided to the Senior Home Repair Program. o La Comida Funding ¯The Finance Committee recommends that a one-time amount of $5,093 be provided to La Comida to cover a shortfall in funding from the County. o Sand Hill Corridor Improvement Projects Under the development agreement, Stanford University is obliged to reimburse the City for various City staff activities and consultant costs associated with the implementation of the Sand Hill Corridor projects. The Finance Committee recommends that General Fund expenditures be increased by $356,000 and revenues CMR:280:98 Page 4 of 9 by $521,000. For the Utility Funds, it is recommended that the Water System Extension Capital Improvement Program (CIP) Project No. 8013 be increased by $121,000, with offsetting revenues; that the Gas System Extension CIP Project No. 8017 be increased by $250,000, with offsetting revenues; and that the Wastewater Collection System Extension CIP Project No. 8020 be increased by $121,000, with offsetting revenues. Staff Recommended Changes General Fund o Tennis Court Screens Staff inadvertently omitted funding to install and maintain screens at City tennis courts. In 1998-99, an additional $9,500 is recommended, of which $3,000 will be required in future years for ongoing maintenance. o Library Temporary Salaries Staff inadvertently omitted funding to increase the salaries for temporary staff in the library of $16,068, which is needed for salary adjustments, for temporary staff. o Police Department Adjustments It is recommended that Police Department expenditures be reduced by $11,800, due to the acceleration of purchases for canine replacement and sound meters into 1997- 98, and an increase of $4,100 for the City’s share of the County upgrade of the Police Information Network. Municipal Fee Schedule The fees in the Municipal Fee Schedule will be effective once adopted by the Council, with the exception of certain fees in the Planning and Public Works Departments which become effective September 1, 1998, per Government Code 66000, et. seq. These are listed in Exhibit E. In addition, there is a fee proposed to be added to Citywide Fees for use of the public toitets. The amended section is included as Exhibit F of Attachment One. CMR:280:98 Page 5 of 9 Capital Improvement Fund o Air Conditioning at Fire Station Six, CIP No. 19909 It is recommended that the General Fund operating transfer for the Capital Improvement Fund increase by $10,000. This project will install air conditioning at Fire Station Six. The project will be managed by Stanford University and Stanford has committed that Palo Alto’s share of the project will be capped at $100,000. The budget needs to be adjusted by reducing total project expenditures to $100,000 to reflect Palo Alto’s portion of the project and Stanford’s management of the project. Total project expenditures will be reduced from $180,000 to $100,000 to reflect the City’s full commitment to the project. Utility Funds o Customer Information System Training A total of $40,000 in additional expenditures is requested in order to rent space to conduct training for the Utilities Customer Information System (CIS). CIS is in the process of being installed and staff is being trained on use of the system. Because of the magnitude of the system and the amount of training and testing required before it is brought on line in December 1998, space was required for the staff who are participating in bringing the system up. This space will allow for effective group training. There is currently no space available in City owned facilities that can be utilized for this. o o Electric - Overhead System Contract Maintenance An additional $100,000 is requested for contract overhead maintenance work to replace deteriorated poles and other above-ground equipment. This is necessary to correct potential safety hazards and maintain service reliability to our customers. It is a continuation of increased funding added for this purpose in the 1997-98 Budget. Electric -- Underground CIP Projects Revenue is recommended to be reduced by $212,000 for these projects to reflect the fact that Pacific Bell and Cable Co-op TV do not reimburse for the cost of rebuilding underground projects. CMR:280:98 Page 6 of 9 o CIP Customer Connections Fee Increases It is recommended that revenue be increased to reflect the proposed fee increases for. customer connections in the following funds: Electric Fund $155,000 Gas Fund $93,000 Wastewater Collection $51,000 Water $55,000 Per Government Code 66000, et.seq., changes to certain development fees cannot become effective until 60 days after adoption. This affects sewer and water connection fees. As a result, water and sewer fee changes will not take effect until September 1, 1998. Electric and Gas Fund fees will take effect on July 1, 1998. Other Changes As discussed in the separate report from the City Clerk, to continue to provide the necessary public information required of the City Clerk’s Office, and to realign the office structure, the City Clerk is recommending that the Deputy City Clerk position be reclassified to an Assistant City Clerk, and be increased from a 0.75 to a 1.0 FTE. Compensation Plans Several classification changes are requested to Management and Confidential, and Classified Compensation Plans. New or changed classifications are included, along with the accompanying resolutions. Department Key Plan and Impact Measure Changes There are a number of clarifications and corrections to key plans and impact measures which are included as Appendix Five. Impact measures which were questioned and require additional consideration will be addressed during the 1999-01 budget process. RESOURCE IMPACT The initial Budget resulted in a total increase in to the General Fund Budget Stabilization Reserve (BSR) of $1.1 million in 1998-99. Based on changes made as a result of the Finance Committee hearings and staff recommendations, as well as expenditures approved by the Council after the Budget was printed, the General Fund Budget being forwarded to the Council for adoption results in a net contribution to the BSR of $1.4 million and a net decrease to the Reserve for Emergencies of $228,000 in 1998-99. Changes to the Utilities Funds Budget by the Finance Committee and staff result in a net increase of $2,000. CMR:280:98 Page 7 of 9 POLICY IMPLICATIONS These recommendations are consistent with existing City policies. ENVIRONMENTAL REVIEW Not a project under California Environmental Quality Act (CEQA). ATTACHMENTS Attachment One: Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: Budget Adoption Ordinance, including: City Manager’s Proposed 1998-99 Budget (Two Volumes) Amendments to the City Manager’s 1998-99 Proposed Budget 1998-99 Proposed Municipal Fee Schedule Changes and Revised Pages in Table of Organization Planning and Public Works Fees Which Take Effect September 1, 1998 Amendment to the Proposed 1998-99 Municipal Fee Schedule Attachment Two: Attachment Three: Attachment Four: Attachment Five: Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedules G-l, G-2, G-3, G-4, and G-7 of the City of Palo Alto Utilities Rates and Charges Pertaining to Residential, Commercial Core, Commercial Noncore, and Large Commercial Core Gas Service and Large Commercial Noncore Gas Transportation Service Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedules W-5, G-5, S-5, E-15, and C-1 of the City of Palo Alto Utilities Rates and Charges Pertaining to Service Connection Fees and Utility Service Calls Resolution of the Council of the City of Palo Alto Approving and Adopting Rules and Regulations Governing Utility Services and Fees and Charges Effective July 1, 1998 Resolution of the Council of the City of Palo Alto Establishing and Authorizing the Funding of Rate Stabilization Reserves for Distribution, Service and Supply Service in the Electric and Gas Utilities, Establishing a Public Benefits Reserve in the Electric Utility, Eliminating and Transferring the Balance in the Gas Fund Supplemental Supply Reserve to the Supply Service Rate Stabilization Reserve, and Transferring Certain Funds in the Rate Stabilization Reserve for the Electric Utility to the Calaveras Reserve CMR:280:98 Page 8 of 9 Attachment Six:Resolution of the Council of the City of Palo Alto Amending the Compensation Plan for Classified Personnel (SEIU) Adopted by Resolution No. 7682 to Change Certain Salaries and Classifications Attachment Seven:Resolution of the Council of the City of Palo Alto Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers Adopted by Resolution No. 7713, and amended by Resolution Nos. 7729, 7744, and 7751, to Change Certain Salaries and Classifications Attachment Eight:Resolution of the Council of the City of Palo Alto Amending the Compensation Plan for Fire Department Personnel Adopted by Resolution No. 7730 to Change Certain Salaries and Classifications Attachment Nine:Approval of the City of Palo Alto Statement of Investment Policy and Proposed Changes to the City’s Investment Policy Appendix One:’ Appendix Two: Appendix Three: Appendix Four: Appendix Five: Summary of Changes to the 1998-99 General Fund 1998-99 General Fund Summary 1998-99 Utility Funds Summary Capital Improvement Fund Summaries and Amended Projects Recommended Changes to Departmental Mission Statements, Key Plans and Impact Measures Related Staff Reports: CMR:222:98; CMR:243:98; CMR:196:98; CMR:237:98; CMR:239:98 CMR:194:98; CMR:206:98; CMR:231:98; and CMR:224:98 PREPARED BY: APPROVED BY: Linda Craig, Senior Financial Analyst Shannon Gaffney, Senior Financial Analyst CARL YEATS/ " Director, Adrginistrative Services CITY MANAGER APPROVAL: CC: n/a City er CMR:280:98 Page 9 of 9 ATTACHMENT ONE ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE BUDGET FOR THE FISCAL YEAR 1998-99 WHEREAS, pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo Alto, the City Manager has prepared and submitted to the City Council, by letter of transmittal, a budget proposal for fiscal year 1998-99; and WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on June 22, 1998, hold a public hearing on the budget after publication of notice; and WHEREAS, in accordance with the provisions of Chapter ~8 of Division i, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on June 22, 1998, hold a public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting the amendments was made available to the public at least i0 days prior to the hearing. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION I. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following documents, collectively referred to as ~the budget" are hereby approved and adopted for the fiscal year 1998-99. (a)The two volume document (Exhibit A) containing the proposed operating and capital budgets submitted on or about April 23, 1998, by the City Manager for fiscal year 1998-99, entitled ~City of Palo Alto - City Manager’s 1998-99 Proposed Budget - Volume I" (covering General Government Funds) and ~City of Palo Alto - City Manager’s 1998-99 Proposed Budget - Volume II" (covering Utility Funds and Internal Service Funds), a copy of which is on file in the office of the City Clerk, to which copy reference is hereby made concerning the full particulars thereof, and by such ~reference is made a part hereof; and The ~Amendments to the City Manager’s Proposed 1998-99 Budget, Volume I and II," attached hereto~as Exhibit ~B," and made a part hereof; and (c)The document entitled ~1998-99 Proposed Municipal Fee Schedule," attached hereto as Exhibit ~C," and made a part hereof; and (d)Changes and revised pages in the Table of Organization, attached hereto as Exhibit ~D," and made a part hereof; and (e)Fees in the Planning and Public Works Departments which will not become effective until September i, 1998 attached hereto as Exhibit mE," and made a part hereof; and (f)Amendment to the Citywide Fees in the 1998-99 Proposed Municipal Fee Schedule, attached hereto as Exhibit ~F," and made a part hereof. SECTION 2. The sums set forth in the budget for the various departments of the City, as herein amended, are hereby appropriated to the uses and purposes set forth therein. SECTIQN 3. All expenditures made on behalf of the City, directly or through any agency, except those required to be made by state law, shall be made in accordance with the authorization contained in this ordinance and the budget as herein amended. ~. Appropriations for the fiscal year 1997-98 that are encumbered by approved purchase orders and contracts for which goods or services have not been received or contract completed, and/or for which all payments have not been made, by the last day of the fiscal year 1997-98 shall be Carried forward and added to the fund or department appropriations for fiscal year 1998-99. SECTIQN 5. The City Manager is authorized and directed to make changes in the department and fund totals and summary pages of the budget necessary to reflect the amendments enumerated and aggregated in the budget and the 1997-98 appropriations carried forward as provided in Section 4. SECTION 6. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 7. As specified in Section 2.23.140(b) of the Palo Alto Municipal Code, the Council of the City of Palo Alto hereby delegates the authority to invest the City’s funds to the Director of Administrative Services, as Treasurer, in accordance with the City’s Investment Policy for 1998-99. SECTION 8. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 9. As provided in Section 2.04.375 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption except fees described in "Exhibit E," which shall become effective on September I, 1998. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services .i- + EXHIBIT D TABLE OF ORGANIZATION - GENERAL FUND CITY ATTORNEY City ARomey Claims Investigator/Paralegal Legal Assistant Legal Secretary-Confidential Senior Assistant City Attorney (a) TOTALS Actual Adopted Adjusted Proposed Budget Budget Budget Changes Budget 1996-97 1997-98 1997-98 1998-99 1.~1.00 1.~1.~ 1.~1.~1.~1.~ 1.~1.~1.~1.~ 2.~2.~2.~2.~ 8.50 8.50 8.50 0.50 9.~ CITY CLERK Assistant City Clerk (b) City Clerk Deputy City Clerk (b) Executive Secretary Program Assistant Public Communication Officer (c) TOTALS I.~I.~I.~I.~2.~ I.~I.~I.~I.~ 0.50 0.75 0.75 -0.75 0.~ 3.~3.~3.~3.~ 0.75 0.75 0.75 0.75 6.~7~0 7.~-0.25 ~ CITY MANAGER Administrative Secretary-Confidential Assistant City Manager Assistant to the City Manager City Manager Deputy City Manager-Special Projects Manager, Economic Resources Executive Secretary-Confidential Management Assistant Office Specialist Public Communication Officer (c) Senior Executive Assistant TOTALS 1.~1.~1.~1.~ 1.~1.~1.~1.~ I.~0.~0.~0.~ 1.~1.~1.~1.~ 0,~0.~1.~1.~ 1.~1.~1.~1.~ 1.~2.~2.~2.~ 1.~’1.~1.~1.~ 1.~1.~1.~1.~ 0.~0.~0.~0.50 0.50 8.00 9.00 10.00 0.50 10.50 (a)Addition of .25 Senior Assistant City Attorney for a total change of .50 FTE to support the increased activity in the Planning and Community Environment Department, (b)Reclassification of .75 Deputy City Clerk to 1.00 Assistant City Clerk to cover necessary staffing support for public information duties and increased staffing flexibility and cross-training. (c)Transfer of .50 Public Communication Officer from City Clerk to the City Manager’s Office to consolidate the public information fu.nction into one office. EXHIBIT E Planning and Public Works Fees Which Take Effect September 1, 1998 Pursuant to Government Code 66000, et. seq., the following specific new fees or fee increases contained in the 1998-99 Proposed Municipal Fee Schedule, cannot be effective until 60 days after adoption, and will be effective on September 1, 1998: Pages Planning - Inspection (page 44) Planning : Planning (pages 56 and 58) Fees Increase in Building Demoliton and Building Moving/Relocating Permits Increase in fee for Minor Subdivision Parcel Map New fee for Minor Change to Existing Use Permit Public Works - Engineering (page 79)Increase in fee for Certificate of Compliance Public Works - Refuse (pages 84-85)New fees and increases in fees for use of the Refuse Disposal Area i RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING UTILITY RATE SCHEDULES G-I, G-2, G-3, G-4 AND G-7 OF THE CITY OF PALO ALTO UTILITIES RATES AND CHARGES PERTAINING TO RESIDENTIAL, COMMERCIAL CORE, COMMERCIAL NONCORE, AND LARGE COMMERCIAL CORE GAS SERVICE AND LARGE COMMERCIAL NONCORE GAS TRANSPORTATION SERVICE The Council of the City of Palo Alto does hereby RESOLVE as follows: ~T!~I. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Schedules G-I (Residential Gas Service), G-2 (Commercial Core Gas Service), G-3 (Commercial Noncore Gas Service, G-4 (Noncore Gas Transportation Service) and G-7 (Large Commercial Core Gas Service) of the Palo Alto Utilities Rates and Charges are hereby amended to read in accordance with Sheets G-l-l, G-2-1, G-3-1, G-3-2, G-4-1 and G-7-1 attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedules, as am ended and as adopted, shall become effective July l, 1998. ~. The Council finds that the revenue derived from the authorized adjustments of the general natural gas service rates shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. ~. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b) (8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Utilities 980421 syn 0071402 RESIDENTIAL GAS SERVICE UTILITY RATE SCHEDULE G-’I A. ’APPLICABILITY: This schedule applies to all natural gas service to individually metered single family premises, including those separately metered in a multi-family complex. B.TERRITORY: Within the service area of the City of Palo Alto and on land owned or leased by the City. C.RATES: For individually metered residential customers Per Meter Per Month (A) Summer Rate (May 1 to October 31): 0-20 therms per therm ..................................: ...........42.4¢. Over 20 therms per therm ...........................................59.7¢ , (B)Winter Rate (Nov. 1 to April 30): 0-96 therms per therm ..............................................42.4¢ Over 96 therms per therm ...........................................59.7¢ D. SPECIAL NOTES: Seasonal rate changes: The applicable residential rate structure will be prorated in the May and November billing periods based on the rates of the number of days prior to May 1 and subsequent to October 31, respectively, to the total number of days in the billing period. °Service under this schedule is subject to discontinuance in whole or in part, for operational reasons or if the City experiences siapply or capacity shortages. The City will exercise reasonable diligence and care to furnish and deliver continuous service and a sufficient quantity of gas to customers, but does not guarantee continuity of service or sufficiency Of quantity. The City shall not be liable for any damage caused by interruption of service, if the interruption of service is caused by an act of God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-1-1 dated 7-1-96 CI’[Y OF PALO ALTO UTILITIES {End} Effective 7-1-98 Sheet No. G-l-1 COMMERCIAL CORE GAS SERVICE UTILITY RATE SCHEDULE G-2 A. APPLICABILITY: This schedule applies to all non-residential core customers. Core customers include all customers using less than 250,000 Therms per year at a single address. In addition, this schedule applies to customers who use more than 250,000 Therms per year at a single address but elect to be core customers served under this schedule. Bo Co TERRITORY: Within the service area ofihe City of Palo Alto and on land owned or leased by the City. RATES: All year-round delivered commodity:Per Meter Per Month Per Therm ..........................................- ........................46.8¢ SPECIAL CONDITIONS: Service under this schedule is subject to discontinuance in whole or in part, for operational reasons or if the City experiences supply or capacity shortages. The City will exercise reasonable diligence and care to furnish and deliver continuous semite and a sufficient quantity of gas to customers, but does not guarantee continuity of service or sufficiency of quantity. The City shall not be liable for any damage caused by interruption of service, if the interruption of s~rviee is caused by an act of God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supercedes Sheet No. G-2-1 dated 7-1-96 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No. G-2-1 A. APPLICABILITY: LARGE COMMERCIAL NONCORE GAS SERVICE UTILITY RATE SCHEDULE G-3 This schedule applies to noncore service for customers who use at least 250,000 therms per year per service address. B. TERRITORY: Within the service area of the City of Palo Alto and on land owned or leased by the City. C. RATES:Per Meter -Per Month 1,Commodity Charge Per Therm .........................’ ................10.0 - 65.0¢ 2.Administrative Fee .........................................................0.4¢ 3.Transportation Charge Per Therm: PG&E Local Transportation .............................................1.6¢ Palo Alto Local Distribution .............................................8.5¢ D. SPECIAL CONDITIONS: Service under this schedule¯ is subject to discontinuance in xvhole or in part in case of actual or anticipated shortage of natural gas resulting from an insufficient supply, inadequate transmission or delivery capacity of facilities, or shortage requirements. However, the City will attempt to minimize disruption by providing adequate notice prior to curtailment. The City will not be liable for damages occasioned by interruption or discontinuance of service supplied under this schedule. Specific terms and conditions shall be covered by separate agreement between the City and customers served under this rate schedule. o ’The commodity charge is equal to the City’s bidweek price of the natural gas paid at the PG&E Citygate for the month immediately preceding the month in which the customer is billed. The commodity charge will fall within the minimum/maximum range set forth in C.1. and include the cost of PG&E’s "backbone" Transmission market value. 4.A customer who elects to be served under this rate will payan administrative fee equal to the allocable administrative costs incurred by the City in providing the non-core gas service. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-3-1 dated 1-’1-97 CITY OF PALO ALTO UTILITIES Effective 1-1-98 Sheet No. Go3-1 o LARGE COMMERCIAL, NONCORE GAS SERQICE UTILITY RATE SCHEDULE G-3 (Continued) PG&E Local transportation charge is equal to the cost of transporting gas from the PG&E’s Citygate to the Palo Alto Citygate. The total monthly charge = therms used during the month X (commodity charge + administrative fee + PG&E local transportation charge + Palo Alto distribution charge). A customer may request service under this schedule for more than one account or meter if the accounts are located on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of- ways (e.g. streets) =had have a common billing address. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-3-2 dated 7-1-95 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No. G-3-2 A. APPLICABILITY: NONCORE GAS TRANSPORTATION SERVICE UTILITY RATE SCHEDULE G-~ This schedule applies to gas transportation service for noncore commercial customers who use at least 250,000 therms per year at one site. B. TERRITORY: Within the service area of the City of Palo Alto and on land owned or leased by the City. RATES: 1. 2. Per Meter Per Month Administrative Fee .........................................................0.4¢ Transportation Charge Per Therm: PG&E Local Transportation .............................................1.6¢ Palo Alto Local Distribution .............................................8.5¢ D. SPECIAL CONDITIONS: 1.A customer may elect to be served under this rate schedule during an open season specified by the City. 2.Specific terms and conditions shall be covered by separate agreement between the City and the gas supplier and/or customers served under this rate schedule. 3.A customer who elects to be served under this rate will pay an administrative fee equal to the allocable administrative costs incurred by theCity in providing the transportation gas service. PG&E local transportation charge is equal to the cost of transporting natural gas from PG&E Cit.ygate to Palo Alto Citygate. Therefore, a customer who elects this service will have to have the gas delivered to PG&E Citygate. 5.Total monthly charge = therms used x (administrative fee + PG&E local transportation + P.A. distribution charge). A customer may request service under this schedule for more than one account or meter if the accounts are located on one site. A site shall be defined as one or more utility accounts serving contiguous parcels of land with no intervening public right-of- ways (e.g. streets) and have a common billing address. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Original Sheet No. G-4-1 dated 7-1-95 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No. G-4-1 LARGE COMMERCIAL CORE GAS SERVICE UTILITY RATE SCHEDULE ~-7 A.’ APPLICABILITY: This schedule applies to core large commercial customers who use at least 250,000 therms per year at one site. B. TERRITORY: Within the service area of the City of Palo Alto and on land owned or leased by.the City. C. RATES: - Per Meter Per Month All year-round delivered commodity Per Therm ................................................................35.6¢ D. SPECIAL CONDITION: A customer may qualify for service under this schedule for more than one account if the accounts are located on one site. A site shall be defined as contiguous parcels of land with no intervening right-of-~vay (e.g. streets) and have a common billing address. Service under this schedule is subject to discontinuance in whole for operational reasons or it the City experiences supply or capacity shortages. The City will exercise reasonable diligence and care to furnish and deliver continuous service and a sufficient quantity of gas to customers, but does not guarantee continuity of service or sufficiency of quantity. The City shall not be liable for any damage caused by interruption of service, if the interruption of service is caused by an act of God, Fire, Strikes, riots, war, or any other cause that is beyond the City’s control. {End}- CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-7-1 dated 7-’1-96 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No. G-7-1 .RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING UTILITY RATE SCHEDULES W~5,G-5, S-5, E-15, and C-I OF THE CITY OF PALO ALTO UTILITIES RATES AND CHARGES PERTAINING SERVICECONNECTION FEES AND UTILITY SERVICE CALLS The Council of the City of Palo Alto does hereby RESOLVE as follows: ~. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Schedules W-5 (Water Service Connection Fees), G-5 (Gas Service Connection Fees), S-5 (Sewer Service Connection Fees), E-15 (Electric Service Connection Fees), and C-I (Utility Service Calls) of the Palo Alto Utilities Rate and Charges are hereby amended to read in accordance with Sheets W-5-1, W-5-2, W-5-3, W-5-4, G-5-1, G-5-2, G-5-3, G-5-4, S-5-I,~ S-5-2, S-5-3, E-15-1, E-15-2, E-15-3, E-15-4, E-15-5, E-15-6 and C-I-I, respectively attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedules, as amended; shall become effective on July i, 1998. ~2~IQ~_~. The Council finds that the revenue derived from the authorized adjustments of the several general water service rates shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. ~. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, California Public Resources Code section 21080, subdivision (b) (8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Utilities Director of Adminis. Services 980506 ~ 007071414 WATER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE W-5 A. TERRITORY: Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City of Palo Alto. B. FEES: All fees must be paid prior to the scheduling of any construction. Depending on material availability and scheduling constraints, utility service will be installed between 30 and 40 days following receipt of full payment. 1. DISTRIBUTION SYSTEM EXTENSION CHARGE For City Standard 6" Main, charge per foot ............................$85.00 SERVICE CONNECTION CHARGES: Category 1 - Domestic Water Service Size Amount 1-inch connection ...............................................$2,694.00 1-1/2 inch connection .............................................3,177.00 2-inch connection ................................................3,586.00 4-inch connection ................................................6,050.00 6-inch connection ................................................6,872.00 Category 2 - Fire Service Size Amount 4-inch connection "~$4,695.00 6-inch connection ................................................5,244.00 8-inch connection ................................................5,841.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-1 dated 7-1-94 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No W-5-1 WATER SI=RVlCE CONNECTION FEES UTILITY RATE SCHEDULE W-5 {Continued} Category 3 - Combination Domestic Water Service and Fire Service These charges apply to the following combination of Water Service (W.S.) and Fire Service (F.S.): Size 1" W.S.1 ½" W.S 2’i W.S.4" W.S. 4" F.S.$5,652 $5,923 $5,992 N/A 6" F.S.$6,201 $6,472 $6,541 $9,002 8" F.S.$6,798 $7,069 $7,138 $9,599 Category 4 - Master Water Service Approval by the Director of Utilities is required for a connection that serves domestic water service and fire protection through a detector meter. The charge for master water service will be based on the Engineering Manager’s, Water-Gas-Wastewater, estimate of the total costs of all materials, metering not listed in Section B(4), labor and other costs incidental to the installation. For service connections of 4-inch through 8-inch sizes and meter sizes of 3-inch through 8-inch, the new owner must provide and install a concrete vault with meter reading lid covers to house meters and other required control equipment in accordance with the Water Utility’s specifications. ¯An approved backflow prevention device with bypass assemblies must be provided by owner on all fire services. 3. METER CHARGES: 5/8 Inch x 3/4 Inch ................................................$35.00 1 Inch .............: ......: .....................................103.00 1 ½ Inch ...., ......... ...........................................325.00 2 Inch ..........................................................420.00 3 Inch .........................................................1,408.00 4 Inch .........................................................2,603.00 6 Inch .............................................. ............3,881.00 CiTY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-2 dated 7-1-94 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No W-5-2 ADDITIONAL METERS ON CONNECTION: WATER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE W-5 {Continued} With new connection ..............¯ .............................$240 On existing connection ............................................350 5.RELOCATION OF FACILITIES: Approved relocation of service, hydrants, or other facilities will be done at the cost of the person requesting the re-location. Deposit of estimated cost is required before relocation work begins. After the City completes the work, a final billing based on actual costs will be sent to the person requesting the relocation of facilities. C.OTHER CONDITIONS 1.SERVICE CHARGES: (A)Additional Service connections are available with payment of additional service connection charge as shown in Section B. (B)Replacement of service connection made necessary because of ordinary wear and deterioration will be made without charge. Replacement due to inadequacy because of additional demand or load will be charged as a new service connection. 2. INSTALLATION UNDER UNUSUAL CONDITIONS: (A)Any condition which, in the opinion of the Engineering Manager, Water-Gas- Wastewater will result in a cost higher than the charges set forth in Section B will be classified as unusual. The charge for an unusual installation will be based on Engineering Manager, Water-Gas-Wastewater’s estimate of the total costs of all materials, labor and other costs incidental to the installation. (B)In the event water service to a premises is requested and insufficient capacity exists to provide such service, the applicant shall bear the total cost for enlarging the distribution system to accommodate serving the applicant. The Engineering Manager, Water-Gas-Wastewater may require the applicant to make arrangements for the design and construction of said expansion in accordance with City standards and specifications. Alternatively, the Engineering Manager, Water-Gas-Wastewater may elect for City forces or contractors to design and install respectively such facilities-at the applicants expense. CITY OF PALO ALTO UTILITIES Issued by the City Council ~\~"Effective 7-1-98Supersedes Sheet No. W-5-3 dated 7-1-92 c,~Y oF PALO A~O Sheet No W-5-3 UTILITIES WATER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE W-.5 {Continued} 3. EXCEPTIONS: (A)Water Service Areas 3 & 4, connections served directly from supply main: The distribution system charges (Section B) will be based on a maximum frontage of 660 feet. This exception applies to single applications for service and does not apply to subdivisions or tracts. (B)The subdivision developer will furnish and install the water system at his or her expense and in accordance with City’s specifications. D.OTHER SERVICES: 1. MANIFOLD: (A) 2 Inch .....................................................$507.00 2. ABANDONMENT: (A) Small service less than 2 Inch ..................................$743.00 (B) Large service more than 2 Inch .................................1,078.00 3. FIRE HYDRANT: (A) Install New Hydrant without Lateral .............................$2,061.00 (B) Install New Hydrant with Lateral .................................7,305.00 (C) Relocation behind curb (up to 5 feet) .............................3,095.00 Relocations more than 5 feet will require a New Lateral and the existing Lateral will be disconnected and abandoned at the main. 4. OTHER FEES:Per Hour The following fees will apply to utility work performed by outside contractors: (A) Engineering Fee ..............................................$80.00 (B) Utility Inspection Fee ...........................................77.00 {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-4 dated 7-1-92 CI"I’Y OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No W-5-4 GAS SERVICE CONNECTION FEES. UTILITY RATE SCHEDULE G-5 TERRITORY: Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City of Palo Alto. B. FEES: All fees must be paid prior to the scheduling of any construction. Depending on material availability and scheduling constraints, utility service will be installed between 30 and 40 days following receipt of full payment. 1.DISTRIBUTION SYSTEM EXTENSION CHARGE: For City Standard 2" Main, charge per foot ..................: ........$80.00/ft. 2. CONNECTION CHARGE FOR SERVICE INSTALLED ON EXISTING MAIN: 1-inch connection .............................................$2,056.00 2-inch connection .............................................2,995.00 Above 2-inch connection ...................................Utility Estimate Excess Length Fee: An additional charge ($15.00/foot for a 1-inch connection and $17.00/foot for a 2- inch connection) will apply to an extension greater than forty feet from the street property line to the gas meter location, measured along a line perpendicular to the street property line. Service Location: The service line will be installed along the shortest, most practical route, as determined by The Utilities Department (from the gas main in the adjoining street, alley, lane road, or easement to the nearest suitable meter location at the building or structure). 3. METER CHARGES: 250 CFH Diap~agm ..... ........................................$87.00 400 CFH Diaphragm ..............................................196.00 675 CFH Diaphragm ............................................652.00 500 CFH Rotary-Residential .......................................865.00 800 CFH Rotary-Residential ..............................’ .........952.00 500 CFH Rotary-Commercial ......................................865.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-5-1 dated 7-1-94 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No G-5-1 GAS SERVICE CONNECTION FEES. UTILITY RATE SCHEDULE G-5 { Contim’~ed} 800 CFH Rotary-Commercial. 1000 CFH Rotary-Commercial 1500 CFH Rotary-Commercial 2000 CFH Rotary-Commercial 3000 CFH Rotary-Commercial 5000 CFH Rotary-Commercial 7000 CFH Rotary-Commercial .....................................1,019.00 ....................................1,009.00 ....................................1,014.00 ....................................1,247.00 ....................................1,560.00 ....................................1,966.00 ....................................2,235.00 11000 CFH Rotary-Commercial ....................................2,842.00 16000 CFH Rotary-Commercial ....- ................................3,492.00 Electronic Volume Corrector System ................................5,378.00 Other Meter Sizes ..........................; .............Utility Estimate ADDITIONAL METERS ON CONNECTION: (Applies to small me.ters up to 400 SCFI-I)Per Meter With new connection ............................................$67.00 On existing metered connection .....................................137.00 Charges for meters above 400 SCFH, will be based on the Utility’s estimate. 5. SERVICE RELOCATION: Service riser relocation "$560.00 Service riser relocations will only be performed on polyethylene pipe services. All "other material pipe" services must be replaced from the main to the meter at the fees listed in Section B(2) of this rate schedule. Curb Meter- Riser relocation on existing pe pipe .........................$421.00 Curb Meter- Riser relocation on same alignment of existing service .............812.00 Curb Meter- New service" from main to house ............................998.00 6. RELOCATION OF FACILITIES: Approved relocation of service and other facilities will be done at the cost of the person requesting the re-location. Deposit of estimated cost is required before relocation work begins. After the City completes the work, a final billing based on actual costs will be sent to the person requesting the relocation of facilities. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes sheet No. G-5-2 dated 7-1-92 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No G-5-2 GAS SERVICE CONNECTION FEES UTILITY RATE SCHE DULE G-5 { Contintied} OTHER CONDITIONS: 1. SERVICE CHARGES: (A) O3) Additional service connections are available with payment of additional service connection charges shown in Section B. Replacement of service connections made necessary because of ordinary wear ~nd deterioration will be made without charge. However, if the need for replacement arises due to meeting an increase in load, the new service will be charged as a new service under Section B. (c)In commercial or industrial ~areas where a surface meter installation is impractical, meters may be placed in underground vaults. Vaults must be provided and installed by the owner in accordance with the gas utility’s specifications. The vault lid sections shall not exceed 70 pounds. All lids shall be centered above the gas meter to allow visibility of the meter face for meter reading purposes. 2. UNDER UNUSUAL CONDITIONS: (A)A condition which, in the opinion of the E~ineering Manager, Water-Gas- Wastewater will result in a cost higher than the fees in Section B, will be classified as unusual. The charge for an unusual installation will be based on the Engineering Manager, Water-Gas- Wastewater estimate of the total costs of ali materials, labor, and other costs incidental to the installation. (B)In the event gas service to a premises is requested and insufficient capacity exists to provide such service, the applicant shall bear the total cost for designing and enlarging the distribution system to accommodate serving the applicant. The Engineering Manager, Water-Gas-Wastewater may require the applicant to make arrangements for the design and construct.ion of said expansion in accordance with City standards and specifications. Alternatively, the Engineering Manager may elect for City forces or contractors to design and install respectively such facilities at the applicant’s expense. Full credit to the applicant will be provided for any over sizing or extra facilities installed to meet service demands above the specific capacity needs of the applicant as defined in the Utility’s rules and Regulations. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-5-3 dated 7-1-92 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No G-5-3 3. EXCEPTIONS: GAS SERVICE CONNECTION FEE UTILITY RATE SCHEDULE G-5 { Contin[ted} Gas Service Area 2, connections served directly from supply main: The distribution system charges (Section B) will be based on a maximum frontage of 660 feet. This exception applies to single applications of service and does not apply to subdivisions or tracts. 4. MASTER METERED GAS SERVICE Do For master meter services using high volumes of gas, the. applicant must provide all required meters, sending units, regulators, and other necessary flow control equipment as specified by the City and approved by the Engineering Manager, Water-Gas- Wastewater. OTHER SERVICE CHARGES: 1: OTHER SERVICE FEES: The following fees will apply to utility work performed by outside contractors: (A) Engineering Service Fee ...................................$80.00ihr 03)Inspection Service Fee ....................................$77.00/hr {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-5-4 dated 7-1-92 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No G-5.-4 SEWER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE S-5- TERRITORY: Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City of Palo Alto. FEES: All fees must be paid prior to the scheduling of any construction. Depending on material availability and scheduling constraints, utility service will be installed between 30 and 40 days following receipt of full payment. 1.COLLECTION SYSTEM EXTENSION CHARGE: For City Standard 8" MainCharges Wastewater Service Areas 1 & 2 ....................................$110.00 Wastewater Service Areas 3 & 4 .....................................130.00 2. CONNECTION CHARGES: 4-inch connection ..............................................$3,900.00 6-inch connection ...............................................4,349.00 4-Inch lateral depth more than 6 feet .................................4,871.00 6-inch lateral depth more than 6 feet .................................5,514.00 Sewer laterals over 25 feet in length will be charged for the additional footage at a rate of $100/Ln. Ft. for 4 inch connections and $104/Ln. Ft for 6 inch connections. Special arrangements must be made to provide for the cost of a connection larger than six- inch. The City will estimate the cost which will serve as the basis for a customer deposit. Upon receipt of this deposit the City will install the connection and the customer shall pay the actual cost net of the deposit. 3. RELOCATION OF FACILITIES: Approved relocation of service, and other facilities will be done at the cost of the person requesting the re-location. Deposit of estimated cost is required before relocation work begins. After the City completes the work, a final billing based on actual costs will be sent to the person requesting the relocation of facilities. CITY OF PALO ALTO UTILITIES Issued by’the City Council Supersedes Sheet No. S-5-1 dated 7-1-94 Cl’rY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No S=5-1 OTHER CONDITIONS SEWER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE S-5 {Continued} 1. SERVICE CHARGES: (A)Additional service connections are available with payment of additional service connection charge as shown in Section B2. (B)Replacement of service connections made necessary because of ordinary wear and deterioration will be made without charge. Replacement due to inadequacy because of increased demand or load will be charged as a new connection. 2. INSTALLATION UNDER UNUSUAL CONDITIONS: (A)Any condition which, in the opinion of the Engineering Manager, Water-Gas- Wastewater will result in a cost higher than the charges set forth in B above will be classified as unusual. The charge for an unusual installation will be based on the Engineering Manager’s estimate of the total costs of all materials, labor, and other costs incidental to the installation. (B)In the event wastewater service to a premises is requested and insufficient capacity exists to provide such service, the applicant shall bear the total cost for flow monitoring the existing main to determine remaining capacity, design of new sewer main and construction cost for enlarging the collection system to accommodate serving the applicant. The Engineering Manager, Water-Gas-Wastewater may require the applicant to make arrangements for the design and construction of said expansion in accordance with City standards, and specifications. Alternatively, the Engineering Manager, Water-Gas-Wastewater may elect for City forces or contractors to design and install respectively such facilities at the applicants expense. 3. PUMPING PLANTS: Where pumping facilities are needed to drain wastewater into the wastewater collection system, the capital cost of construction of the pumping plant and the on-going plant operation and maintenance costs will be at the expense of the developer. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. S-5-2 dated 7-1-92 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No S-5-2 SEWER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE S=5 {Continued} 4. EXCEPTIONS: (A)Wastewater Service Areas 3 & 4, connections served directly from trunk mains: The collection system charges (Section B) will be based on a maximum frontage of 660 feet. This exception applies to single applications for service and does not apply to subdivisions or tracts. (B)The developer will furnish and install the wastewater system at his or her expense and in accordance with City’s specifications. OTHER SERVICE CHARGES: 1.INSTALL MANHOLE: (A) Depth less than 6 feet .....................................$4,685.00 (B) Depth more than 6 feet ................................- .....6,149.00 2.ABANDONMENT: (A) Sewer Lateral .............................................$990.00 OTHER SERVICE FEES: The following fees will apply to utility work performed by outside contractors: (A) Engineering Service Fee (Per Hour) ...........................$80.00 (B) Inspection Service Fee (Per Hour) ..............................77.00 {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. S-5-3 dated 7-1-92 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No S-5-3 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-.15 APPLICABILITY: This schedule applies to all connections, expansions, and upgrades to the City’s electric distribution system except those which serve street lighting or traffic signals. TERRITORY: Ct All territory within the incorporated limits of the City and land owned or leased by the City. ADVANCED ENGINEERING FEES: Do Advanced engineering fees must be paid to start the engineering process and are non-refundable. The engineering fees will be credited against the estimated job cost prior to the collection of construction fees. Advance engineering fees will not be collected for service connections that do not require a job estimate. ESTIMATED CONSTRUCTION AND SERVICE CONNECTION FEES: All estimated on-site, off-site distribution system, and service connection fees must be paid prior to the scheduling of any construction or connections to the City’s electrical distribution system. SUMMARY OF FEES: The following schedule is for summary purposes. Section F herein describes the specific fees and conditions in detail. 1.UNDERGROUND SYSTEMS: (A) Service Connections Which Do Not Require an Estimate Service Connection Fees (1) Residen/ial .......................................$340 (2).Multi-Family/Commercial/Industrial 400A or Less ..............$540 (3) Multi-Family/Commercial/Industrial Greater Than 400A By Estimate 03)Service Connections that Require Estimates (1) Residential CITY OF PALO ALTO UTILITIES Issued by. the City Council Advance Engineering Fees ........................................ $300 Supersedes sheet No. E-15-1 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No E-15-1 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 {Continued} (2) Multi-Family/Commercial/Industrial 400A or Less .............$600 (3) Multi-Family/Commercial/Industrial Greater Than 400A ....By Estimate On-Site Distribution System Fees (1) Residential .......................................N/A (2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate. (3) Multi-Family/Commercial/industrial GreaterThan 400A ......By Estimate Off-Site Distribution System Fees (1) Residential ..................................By Estimate (2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate (3) Multi-Family/Commercial/Industrial Greater Than 400A ....By Estimate 2. OVERHEAD SYSTEMS: All service connection fees are based on a 100 foot service length. If additional service length is required there may be additional fees. o Service Connection Fees (1) Residential .......................................$460 (2) Multi-Family/Commercial/industrial 400A or Less ..............$670 (3) Multi-Family/Commercial/Industrial Greater Than 400A .....By Estimate TEMPORARY SYSTEMS: Temporary service charges 200A maximum, 250V maximum, 3-wire service; 100’ in length are shown in the following table. Fees for services requiring greater voltage or capacity will be determined by estimate. Overhead Service Connection Fees (1) Residential ........................................$620 (2). Multi-Family/Commercial/Industrial 400A or Less ........By Estimate (3) Multi-Family/Commercial/industrial Greater Than 400A ....By Estimate Underground service connection fees (1) Residential .......................................$500 (2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate (3) Multi-Family/Commercial/industrial Greater Than 400A ....By Estimate CITY OF PALO ALTO UTILITIES Issued by the City Council .._~\[ [~_.. Supersedes sheet No. E-15-2 dated 7-1-97 ~\X" CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No E-15-2 . FEES: ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 {Continued} UNDERGROUND SYSTEMS Connection fees for new or replacement services to the underground electrical system consist of one or more of the following: Service Connection Fee, On-Site Distribution System Fee and/or Off-S~.te Distribution System Fee. (A)System Connection Fees: Where the City connects any Customer to the electrical distribution system, a service connection fee shall be charged. A waiver of this fee is granted for services connected during an underground conversion district. (1) Residential - Single Family These fees apply to development in which electric metering will be on single- family basis. (a) For a 250 volt, 200 ampere maximum service .......... $340 (b)For any connection requiring greater capacity, the fee shall be the. estimate of the installation cost or $340, whichever is greater. (2)Commercial/Industrial These fees apply to commercial, industrial, multi-family residential services. (a) For a 250 volt, 400 ampere maximum service .......... $670 (b)For any connection requiring greater capacity, the fee shall be the estimate of the installation cost or $670, whichever is greater. 03)On-Site Distribution System Fees: Where the City installs or will install the underground conductors (primary or secondary), switches or transformers in and on facilities provided by the developer within the boundaries of a subdivision or other development, an on-site distribution system fee shall be charged. The fee shall be the estimate of the installation costs. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes sheet No. E-15-3 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No F_,-15-3 (c) ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE {Continued} Off-Site Distribution System Fees: Where the City installs or will install an electric distribution system, system extension, or system reinforcement outside the boundaries of a subdivision or other development to be served, an off-site distribution system fee shall apply. The fee shall be the estimate of the installation costs. 2.OVERHEAD SYSTEMS Overhead services that do not require the addition of poles to the system will be the standard service for residential areas not in Underground Districts. Underground Service will be required for all new industrial, commercial, and multi-family residential construction. No new construction that will require new poles to be added to the system shall be permitted except with the approval of the electrical Engineering Manager and only after a finding that an underground service is not feasible. Replacement of existing overhead services with new overhead services will be allowed as longas the new service does not exceed the size of the existing service or 200 Amperes for single’-family residential or 400 amperes for all others, whichever is greater. (A)Overhead Service Connection Replacement Fees: (1) Residential - Single Family These fees apply to development in which electric metering will be on a single-family basis. (a)For a 250 volt, 200 ampere, 3 wire, 100 feet in length Maximum services ............$460 (2)Commercial/Industrial Thes6 fees apply to commercial, industrial, multi-family residential services. (a) For a 250 volt, 400 ampere, 3 and 4 wire services, 100 feet in length maximum service ................$670 Replacement of Overhead Services of greater voltage, other "than described above when done for the customer benefit, or when required due to damage by customer, shall be the estimate of the installation costs. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes sheet No. E-15-4 dated 7-I-97 CITY OF PALO ALTO UTIEITIES Effective 7-1-98 Sheet No E,-15-4 o TEMPORARY SERVICE ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE {Continued} A fee shall be charged to connect temporary service. The customer shall furnish all equipment up to the designated point-of-service. This point -of-service will usually be the weatherhead for overhead temporary services in overhead distribution areas or the secondary connection box for underground temporary services in underground distribution system areas. The City will not supply overhead temporary services in underground service areas or underground temporary services in overhead distribution areas. The City will supply: overhead conductors and meter for overhead temporary services; and meter only for underground temporary services. The City will connect both overhead and underground services to’the City’s electrical distribution system. Any additional off-site facilities or work required shall be provided and removed by the utility at the customer’s expense. (A)Overhead Temporary Service Fees: (1)For a 250 volt, 200 ampere, 3-wire service, 100 feet in length maximum service .....................$620 (2)The fees for a temporary service of greater length and capacity or voltage shall be the estimate of the installation or removal costs or $620, whichever is grater. 03)Underground Temporary Service Fees: (1)For a 250 volt, 200 ampere, 3-wire maximum service, If a service box is available at the property, ................$500. (2)If a service box is available at the property, the charges to provide a service box will be at the customer’s expense. The fees for a temporary service of greater length and capacity or voltage shall be the estimate of the installation or removal costs or $500, whichever is grater. G. NOTES: 1.These fees apply to all vacant land except where the fees are recorded as previously paid. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes sheet No. E-15-5 dated 7-1-97 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No E-15-5 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-.15 {Continued} The Customer is responsible for the installation of all equipment from the facility to the designated point-of-service. For underground systems, this includes conduit and conductors. For overhead systems, because the point-of-service is the weatherhead or point of attachment to the facility, this includes the mast or riser and all conductors therein. When the City replaces a service, the Customer is obligated to accept a shutdown of service during regular working hours. The time of the shutdown shall be agreed upon as mutually acceptable.When, for the convenience of the Customer, the shutdown is during other than regular working hours, it shall be done entirely at the Customer’s expense. The Customer shall pay the entire cost of the overtime labor, not the incremental cost. The City can generally provide service availability from 30 to 45 days after all fees are, paid except when long lead-time equipment or materials are required. Consult the City for estimated lead-times. The City cannot be held liable for delays in service connection caused by conditions beyond it’s control, including, but not limited to, delays in the arrival of equipment such as transformers, switches and cable. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. E-15-6 dated 7-1-97 Effective 7-1-98 CITY OF PALO ALTOUTILITIES Sheet No E-I 5-6 A. SERVICE CALLS AND OTHER SERVICE WORK: Meter Set Restoration for service at meter fotlowing turn-off for non-payment Restoration of service at power pole following turn-off " for non-payment Exchange meter for accuracy test (Rule 15) Field Collection of Payment UTILITY SERVICE CALLS UTILITY RATE SCHEDULE C~1 Charges During Business Hours Charges After Business Hours No Charge $ 75.00 $20.00 $40.00 $85.00 $170.00 $25.00 Service not Available $2o.oo $4o.oo Labor Rates Per Hour Per Person: Services-provided during normal working hours Services provided on overtime basis where the overtime is scheduled at the City’s convenience. Services provided on overtime basis where the overtime is scheduled at the customer’s convenience. RETURNED CHECK FEES: SPECIAL PROVISION: $80.00 $100.00 $115.00 $10.00 Charges made under this schedule may be added to the regular monthly utilities bill of the person receiving the service and payment thereof will be subject to the Utilities Rules and Regulations regarding discontinuance of service for nonpayment. 2.Charge for meter exchange will be refunded if meter is found to be more than two percent (2%) over-registering. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. C-1-1 dated 7-1-94 CITY OF PALO ALTO UTILITIES Effective 7-1-98 Sheet No C-1-1 RESOLUTION NO. RESOLUTION OF’THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING RULES AND REGULATIONS GOVERNING UTILITY SERVICES AND FEES AND CHARGES EFFECTIVE JULY I,1998 WHEREAS, pursuant to Chapter 12.20 of the Palo Alto Municipal Code the City Council may by resolution adopt rules and regulations governing utility services and the fees and charges therefore; and WHEREAS, the City Council has determined to revise the existing rules and regulations and to adopt new rules and regula- tions, to be effective July i, 1998; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION...1. Pursuant to Section 12.20.010 of the Palo AltoMunicipal Code, the amended and new rules and regulations governing utility services, and the fees and charges therefore, attached hereto and incorporated herein, are hereby approved and adopted. Except as specifically amended by this resolution, all existlngutillty rules and regulations remain in full force and effect as of the date of their original adoption. SECTION 2. This Council finds that none of the provisions of this resolution will have a significant environmental impact. SECTION 3. July I, 1998. The foregoing changes shall b~come effective INTRODUCED AND PASSED: AYES: NOES: ABSENT : ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. Ci"ty Attorney City Manager Director of Administrative Services Director of Utili£ies 980408 syn 0071399 ’RULES AND REGULATIONS City of Palo Alto Utilities Table of Contents Rule 1 Rule 2 Rule 3 Rule 4 Rule 5 Rule 6 Rule 7 Rule 8 Rule 9 Rule 10 Rule 11 Rule 12 Rule 13 Rule 14 Rule 15 Rule 16 Rulel7 Rule 18 Rule 19 Rule 20 Rule 21 Rule 22 Rule 23 Rule 24 Rule 25 Rule 26 Adoption of Rules Definitions and Abbreviations Description of Services Application for Service Contracts Establishment and Reestablishment of Credit Deposits Access to Premises Discontinuance and Restoration of Service Meter Reading Billing, Adjustments, and Payment of Bills "Intentionally left blank for fuUlre rule on Gas Deregulation" Shortage of Supply and Interruption of Delivery Emergency Energy Usage Restrictions Metering Line Extensions Conversion to Underground Electrical Service Connections and Facilities on Customer’s Premises Direct Access Special Electric Utility Regulations Special Water Utility Regulations Special Gas Utility Regulations Special Wastewater Utility Regulations Special Recycling and Refuse Utility Regulations Special Storm and Surface Water Drainage Utility Regulations Special Fiber Optic Regulations CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98~ CITY OF PALO ALTO UTILITIES Sheet No. 1 ADOPTION OF RULES RULE AND REG,,ULATION 1 ADOPTION OF RULES: These Rules and Regulations, and any amendments thereto, are approved and adopted by resolution of the Palo Alto City Council and copies are available to the general public at the Utilities Customer Service Center, Second Floor, 250 Hamilton Avenue, Palo Alto, CA 93401. CONFLICT: In case of an apparent inconsistency or confli~:t between a provision of any rate schedule or Rule andRegulation, the provision of the rate schedule shall apply. In the event a conflict occurs bet~veen the interpretation of one Rule and Regulation with another Rule and Regulation, contract, or rate schedule, the Director of Utilities, with concurrence of the City Attorney, shall provide the correct interpretation. PENALTY FOR VIOLATION OF RULES AND REGULATIONS: Every individual supplied Utility services by CPAU shall be considered as having expressed consent to be bound by CPAU Rules and Regulations. It is unlawful for any individual to disobey or fail to observe any Rule and Regulation. It is unlawful for a Customer to knowingly provide incorrect, inaccurate, false, or misleading information of any kind to CPAU in connection with an application for CPAU service (Rule and Regulation 4) or with regard to responding to any request for information made by CPAU. Any person or business violating any CPAU Rule and Regulation is guilty o[ a misdemeanor subject to a fine of not more than one thousand dollars or by imprisonment in the county jail for a period not exceeding six months, or both fine and imprisonment. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 ~.. \~,~Original Sheet Sheet No. - i CITY OF PALO ALTO UTILITIES DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 ABBREVIATIONS: AMR - Btu - ccf - CPAU - DA - DASPA - ERU - ESP - kVar - kVarh - kW - kWh - MW PAMC - RWQCP UUT Automated Meter Reading British Thermal Unit hundred cubic feet City of Palo Alto Utilities Direct Access Direct Access Service Provider Agreement Equivalent Residential Unit Energy Service Provider Kilovar IOlovar-hours Kilowatt Kilowatt-hour Megawatt Palo Alto Municipal Code Regional Water Quality Control Plant Utilities Users Tax B.GENERAL DEFINITIONS: Account The identification number in CPAU’s billing system for utility services. Applicant An individual, corporation, partnership, agency, or other legal entity or authorized agent of same, requesting CPAU to supply any or all of the following: 2. 3. 4. 5.’ 6. 7. Electric Service Water Service Gas Service Sewage Collection .Refuse and Recycling Collection Storm Drain Service Fiber Optic Service Billing Period CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 DEFINITIONS AND ABBREVIATIONS RI.J’LE AND REGULATION 2 Also "service period" or "billing cycle". The normal billing cycle for CPAU Customers is monthly. The number of days in the billing cycle or billing period is determined by the number of days bet~veen meter reads. A Customer’s meters are read approximately every 27.-33 days. On an average basis, a billing period is 30 days. Billing Therms The number of billing units for natural gas that is based on the metered consumption (in ccf) multiplied by the product of an altitude pressure adjustment and a Btu factor (heating content of natural gas which varies monthly). One (1) therm equals 100,000 Btu. City of Palo Alto Also "City". The government of the City of Palo Alto, a chartered city and a municipal corporation duly organized and validly existing under the Laws of the State of California, with a principal place of business located at 250 Hamilton Avenue, Palo Alto, County of Santa Clara. City of Palo Alto Utilities The term CPAU shall mean alI utilities operated by the City of Palo Alto. Such utilities shall include, but not be limited to, water, gas, electric, sewage collection, refuse collection, storm drain, and fiber optics. The City of Palo Alto is the legal entity which owns and is responsible for the City of Palo Alto Utilities. Code The words "the Code" or this Code" shall mean the Palo Alto Municipal Code. Core Market Customer A customer who purchases full gas service from CPAU under one rate schedule that includes gas supply, distribution services from CPAU, and pipeline transportation services. Commercial Service Commercial utility service is provided to businesses, non-profit organizations, and industrial customers. In addition, applies to utilities services through a master meter serving multi-family residential dwellings. Customer The person, corporation, agency, or entity in whose name service is rendered for a particular account as evidenced by the signature on the application, contract, or agreement for service. In CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 the absence of a signed instrument, a customer shall be identified by the receipt of any payment of bills regularly issued in the name of the person, corporation, or agency regardless of the identity of the actual user of the service. Customer Fiber Customer single mode and/or multi-mode fiber optic cables that can be installed to interconnect to locations within City of Palo Alto limits, but outside of CPAU established single mode network path. Customer-Owned Generation An electric generator owned by the Customer, interconnected with and operating in parallel with CPAU facilities. Dark Fiber A strand of optic transmission material within a fiber optic cable that is provided by CPAU without any of the light transmitters, receivers, or electronics required for telecommunications over the fiber. Default Rate Schedule The rate schedule to which a Customer is assigned automatically by CPAU for a period of twelve months, in the event a Customer does not elect a specific rate schedule determined by CPAU to be available at that time. Demand The highest rate of delivery of electric energy, measured in kilowatts (kW) or kilovolt amperes (kVA) occurring instantaneously or registered over a fixed time period (normally fifteen minutes unless otherwise specified within a monthly billing cycle). Demand Charge An electrical charge or rate that is applied to a metered demand reading expressed in kilowatts to compute a demand charge component of a Customer’s electric bill. Direct Access Also "DA". The election by a Customer to procure its electricity, and related energy services, from an Energy Service Provider, other than CPAU. In this situation, a Customer deals directly with an ESP for commodity supply, while distribution and applicable transmission services would continue to be provided by CPAU. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 C,ITY OF PALO ALTO UTILITIES Sheet No. - 3 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Direct Access Metering Also "DA Metering". An electromechanical device capable of recording or transmitting energy use to effect Direct Access, including any communication system or services needed to allow the access to meter read information. Such metering shall conform to the standards and specifications currently adopted by CPAU. Direct Access Plan Also "DA Plan." The document detailing the processes and procedures adopted by CPAU to effect and allocate participation in Direct Access within CPAU’s Service Territory, including phase-in schedule, eligibility criteria and selection processes. Direct Access Service Request Also "DASR". The form required to initiate Direct Access Service. Direct Access Service Provider Agreement Also "DASPA". Also referred to as Direct Access Service Provider Contract (DASPC). The contract between CPAU and the DA Customer’s Energy Service Provider that delineates the terms and conditions under which Energy Services may be scheduled or nominated to the City’s Schedule Coordinator and transmitted to the DA Customer. Distribution Services Includes, but is not limited to, utility service provided by the Distribution System and other services such as billing, meter reading, administration, marketing, and customer services. Distribution System The infrastructure owned and operated by CPAU which is capable of transmitting electrical power or transporting water, wastewater, or gas within the City of Palo Alto. The electric distribution system transmits power from the City’s interconnection with Pacific Gas and Electric Company to CPAU’s meter located on the Customer’s premises. The gas distribution system transports gas from Pacific Gas and Electric Company receiving stations to CPAU’S meter located on the Customer premises. The water distribution system transports water from the San Francisco Water Department receiving stations and CPAU wells to the.meter located on the Customer premises. The Waste~vater Collection System transports sewage from the Customer’s premises to the Water Quality Control Plant. Distribution and Transmission Services CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Services provided by CPAU to effect the physical delivery of Energy Services provided by the Energy Services Provider from the Point of Receipt to the Direct Access Customer’s Service Address. Effluent Partially or completely treated sewage flowing out of any sewage treatment facility. Emergency Service Electric Service supplied to, or made available to, load devices which are operated only in emergency situations or in testing for same. Energy Services Energy commodity and any applicable ancillary services used to generate and transport such commodity from its origin to the City’s Point of Receipt. May also mean the sale of value added services associated or related to the provision and/or usage of energy commodity. Energy Service Provider Also "ESP." The agent employed by the DA Customer obligated to procure, schedule, nominate, and transport Energy Services. ESP shall also include any and all agents or contractors employed or utilized by ESP in performance of its obligations, including scheduling coordinator(s). Equivalent Residential Unit Also "ERU". This is the basic unit for computing storm drainage fees. All single-family and duplex units are billed 1 ERU and are considered to have an impervious area of 2,500 square feet. All other non-residential properties have ERU’s computed to the nearest 1/110 ERU using this formula: No Of ERU=Impervious Area (sq.ft.) / 2,500 sq.ft. Full Service Provision by CPAU of both Distribution and Transmission Services and Energy Commodity Services to its Customer. Also known as "Fully Bundled Service".- Inspector The authorized inspector, agent, or representative of CPAU. Kilovar (kVar) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES sheet No.-5 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 A unit of reactive power equal to 1,000 reactive volt-amperes. Kilovar-hours (kVarh) The amount of reactive flow in one hour, at a constant rate ofkilovar. Kilowatt (kW) A unit of power equal to 1,000 watts. Kilowatt-hour (kWh) The amount of energy delivered in one hour, when delivery is at a constant rate of one kilowatt; a standard unit of billing for electrical energy. Load(s) The electric power demand (KW) of the Customer at its Service Address within a measured period of time, normally 15 minutes. Load Profiling A methodology which may be employed by CPAU, in lieu of DA Meeting, to compute the bill for all DA Customers who have accounts that do not require, or are exempt from, Direct Access Metering. The methodology may include application of a class-average hour-by-hour load profile to determine a monthly average usage profile appropriate for that class of customer. Main Sewer Line Any sewer line not including a building connection (service) sewer. Master-metering Where CPAU installs one service and meter to supply more than one residence, apartment dwelling unit, mobile home space, store, or office. Meter The instrument owned and maintained by CPAU that is used for measuring either the electricity, gas or water delivered to the Customer. Meter Read The recording of usage data from metering equipment Minimum Charge CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 6 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 The least amount for which service will be rendered in accordance with the rate schedule. Occupied Domestic Dwelling Any house, cottage, flat, or apartment unit having a kitchen, bath, and sleeping facilities, which is occupied by a person or persons. Point of Delivery (POD) Unless otherwise specified, that location on the Customer’s Premises where the CPAU circuit and Customer’s electrical wiring are interconnected. Point of Receipt The designated location at which CPAU receives energy supplied by an ESP and/or Scheduling Coordinator on behalf of a DA Customer. The Points of Receipt will be designated in the DASPA as one of the NCPA Points of Receipt, the Palo Alto City Gate meter or other specified point(s). Pole Line Overhead wires and overhead structures, including poles, towers, support wires, conductors, guys, studs, platforms, cross arms braces, transformers, insulators, cutouts, switches, communication circuits, appliances attachments, and appurtenances, located above ground ~ind used or useful in supplying electric, communication, or similar or associated service. Power Factor The percent of total power delivery (kVA) which does useful work. For billing purposes, average power factor is calculated from a trigonometric function of the ratio of reactive kilovolt- ampere-hours to the kilowatt-hours consumed during the billing month. Premises All structures, apparatus, or portion thereof occupied oi operated by an individual(s), a family, or a business enterprise, and situated on an integral parcel of land undivided by a public street, highway, or railway. Primary Service CPAU electric distribution service provided to a Customer’s premises at a voltage level equal to or greater than 1000 volts. Public Benefits Charge CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 7 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Mandated charge on electric bills to fund qualifying energy and low-income customer programs and services that benefit the public good in accordance with AB1890. Public Works Department City of Palo Alto department responsible for providing storm drain, wastewater treatment, and refuse and recycling services. Rate Schedule One or more tariff sheets setting forth the charges and conditions for a particular class’or type of utility service. A rate schedule includes wording such as Schedule number, title, class of service, applicability; territory, rates, conditions, and references to rules. Recyclable The material is recyclable if it is easily collected and processed and there is a demand for it. The most common recyclable materials are paper, glass, metal, and some plastics. Recyclable materials are processed, manufactured, and reused in order to regain material for human use. Residential Service Utility service provided to separately metered single family or multi-family, domestic dwelling. Scheduling Coordinator An entity providing the coordination of power schedules and nominations to effect transportation and distribution of electric power and energy. Secondary Service CPAU electric distribution service provided to a Customer’s premises at a voltage level less than 1000 volts. Service Address The official physical address of the building or facility assigned by CPAU’s Planning Department, at which Customer receives utility services Service Charge A fixed monthly charge applicable on certain rate schedules that does not vary with consumption. The charge is intended to recover a portion of certain fixed costs. Services or Service Lines CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 8 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Facilities of CPAU, excluding transformers and meters, between CPAU’s transmission or distribution system and the Point of Delivery to the Customer. Service Territory The geographic boundaries within the City of Palo Alto limits served by the physical distribution system of the CPAU. Standby Service Back-up energy services provided by CPAU to a DA customer who returns to CPAU for commodity supply service on short notice either due to ESP not providing commodity supply service or by choice of the Customer. Temporary Service Service requested for limited period of time or of indeterminate duration such as, but not limited to, service to provide power for construction, seasonal sales lots (xmas trees), carnivals, rock crushers or paving plants. Temporary service does not include emergency, breakdown or standby service. Therm A unit used to measure a quantity of heat for natural gas that is equal to 100,000 British Thermal Units (BTU). Transition Cost Recovery Also "TCR." Mandated charge on all electric bills to fund the CPAU repayment of costs of fixed and variable costs of above-market generation which may be characterized as "stranded costs". Trap Any approved equipment or appliance for sealing an outlet from a house-connection sewer to prevent the escape of sewer gas from a main line through a building connection (service) sewer. Underground Utility District An area in the City within which poles, overhead wires, and associated overhead structures are prohibited or as otherwise defined in Section 12.04.050 of the PAMC. Utilities Department City of Palo Alto department responsible for providing water, gas, electric, wastewater collection, and fiber optic se~ices. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-9 DEFINITIONS AND ABBREVIATIONS RULE AND REGULATION 2 Utilities User Tax Also "UUT". City of Palo Alto tax imposed on utility charges to a water, gas, and/or electric service user. Charges include charges made for metered energy and water and charges for service including customer charges, service charges, standby charges, charges for temporary services, demand charges, and annual and monthly charges. In 1987, Palo Alto voters approved r~ 5 percent tax on utility charges for water, gas, and electricity to raise revenue for general governmental purposes of the City of Palo Alto. A reduced tax of 3 percent was approved for qualifying high volume users. The tax does not apply to Refuse, Storm Drain, or Wastewater Collection charges. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. ’A.ELECTRIC SERVICE: DESCRIPTION OF SERVICES RULE AND REGULATION 3 In order to respond to deregulation in the electric industry, CPAU offers-eligible customers two general types of service: Full Service and Direct Access Service. Under full service, Distribution, Transmission, and Energy Services from CPAU are provided. Direct Access Service provides Distribution and Transmission but not Energy Services. Energy Services such as energy commodity will be provided by Energy Service Providers (ESP), other than CPAU. Energy Service Providers are energy companies or marketers not associated with CPAU. Specialized metering, billing procedures and other requirements for Direct Access are described in Rule and Regulation 19. The remaining section on Electric Service applies to both Full Service Customers and Direct Access Customers. 1.BASIS OF SERVICE (A)Unless otherwise specifically provided in the rate schedule or contract, CPAU’s electric rates are based upon the furnishing of electric service to a Customer premises at a single Point of Delivery at a single voltage and phase classification. Unless specified otherwise, each Point of Delivery shall be metered and billed separately under the appropriate rate schedule. Any additional service supplied to the same Customer at other Points of.Delivery or at a different voltage or phase classification shall be separately metered and billed. (B)The type of distribution service (voltage, secondary, primary) available at any particular location may be determined by inquiry at CPAU’s Engineering Office. (c)Alternating-current service will be regularly supplied at a nominal frequency of approximately 60-Hertz (cycles per second). (D) . See Rule 20 "Special Electric Utility Regulations" regarding special service requirements ~, LOCATION OF POINT OF DELIVERY CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 DESCRIPTION OF SERVICES RULE AND REGULATION 3 (A)SECONDARY SERVICE For all overhead service at Secondary voltages and all underground service to single-family residential structures at Secondary voltage, the Point of Delivery will normally be at a point on the outside of the structure to be served which is, in CPAU’s judgment, most conveniently located with respect to CPAU’s distribution facilities and which complies with CPAU standards and specifications and applicable building and electrical codes. For other underground services at Secondary voltages, the Point of Delivery will normally be at the side of the Secondary connectors at the transformer serving the Customer’s load or Secondary handhole. (B)PRIMARY SERVICE For service at Primary voltages, the Point of Delivery will normally be at the point on the property line of the premises to be served which is, in CPAU’s judgment, most conveniently located with respect to CPAU’s ’transmission or distribution facilities. (C)EXCEPTIONS Any cost to CPAU of providing Secondary or Primary Services, at the request of the Customer or for his or her convenience, to a Point of Delivery other than the normal Point of Delivery set out above shall be paid by the Customer and shall be in addition to any other amounts which the Customer may be required to pay for said Secondary or Primary service. If several buildings are occupied and used by one Customer in a single business or other activity, CPAU may, at its discretion, furnish service for the entire group of buildings through one service connection at one Point of Delivery. All transformers and facilities required to provide electric service will be padmounted and the Applicant, when requested by CPAU, will provide a Public Utility Easement in recordable form for installation of such facilities within the boundaries of the property. All padmounted equipment will be subject to aesthetic guidelines by CPAU. The Utilities Director or his/her CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 DESCRIPTION OF SERVICES RULE AND REGULATION 3 designee, may authorize the installation of new submersible or vault installed facilities when, in his/her opinion, padmounted equipment installation in any particular instance would not be feasible or practical. EMERGENCY AND STANDBY SERVICES: o CPAU shall provide backup emergency, and other Standby Service to Customers at published rates. SERVICE DELIVERY VOLTAGE: The following are the standard service voltages normally available, although not all of them are or can be made available at each Point of Delivery. These service voltages are available in locations that already have this service voltage and have sufficient capacity, as determined by CPAU, to serve the new load. Any equipment installed on these services shall have the capability of converting to a 208 Y/120, 4-Wire. (B) DISTRIBUTION OF VOLTAGE Single-Phase Three-Phase Three-Phase Secondary Secondary Primary_ 120/240, 3 -wire 120/208, 3-wire 240/120, 4-wire* 240, 3-wire* 208 Y/120, 4-wire 480, 3-wire 480 Y/277, 4-wire 4,160, 3-wire 12,470, 3-wire *Limited availability: maximum 400 ampere main, consult CPAU All voltages referred to in this Rule and appearing in some rate schedules are nominal service voltages at the Point of Delivery. CPAU’s facilities are ddsigned and operated to provide sustained service voltage at the Point of Delivery, but the voltage at a particular Point of Delivery will vary within satisfactory operating range limits. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 DESCRIPTION OF SERVICES RULE AND REGULATION 3 (c)In areas Where a certain standard secondary voltage is being served to one or more Customers, an Applicant applying for nexv service in such areas may be required by CPAU to receive the same standard voltage supplied to existing Customers. (D) The voltage at which service is delivered can be changed by CPAU. VOLTAGE AND FREQUENCY CONTROL (A)Under normal load conditions, CPAU’s distribution circuits will be operated so as to maintain service voltage levels to Customers with ± 5 percent of the nominal service delivery voltage. Subject to the limitations above, the voltage balance between phases will be maintained by CPAU as close as practicable to 2 ½% maximum deviation from the average voltage between the three phases. (B)Voltages may be outside the limits specified above when the variations: (1) (2) (3) (4) arise from service interruptions; arise from temporary separation of parts of the system from the main system; , are minor momentary fluctuations and transient voltage excursions of short duration which may occur inthe normal operation of CPAU system; are from causes beyond the control of CPAU. (c) (D) ~ Due to conditions beyond the control of CPAU, Customer, or both, there will be infrequent and limited periods when voltages will occur outside of the nominal service voltage ranges. Utilization equipment may not operate satisfactorily under these conditions, and protective devices in the equipmeht may operate to protect the equipment. Where the operation of the applicant’s equipment requires stable voltage regulation or other stringent voltage control beyond that supplied by CPAU in the normal operation of its system, the Applicant, at its own expense, is responsible for installing, owning, operating, and maintaining CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-4 DESCRIPTION OF SERVICES RULE AND REGULATION 3 any special or auxiliary equipment on the load side of the service delivery point as deemed necessary by the Applicant. (E)The applicant shall be responsible for designing and operating its service facilities between the Point of Delivery and the utilization equipment to maintain proper utilization voltage at the line terminals of the utilization equipment. (F)The Applicant shall not impose a load on CPAU’s system that will cause the voltage limits in this section to be exceeded for an adjacent service delivery point. CPAU shall test for excessive fluctuations at its own expense when there is reasonable indicationof a need, but requests for voltage checks by the Customer shall be subject to payment for the cost if they are more frequent than once in any twelve-month period, unless excessive voltage fluctuation is found to exist. (i-i)Customers are responsible for protecting their connected loads and equipment, including computers, from sudden voltage or frequency fluctuations outside nominal service and frequency ranges. Such protection may include, but not be limited to, power surge protectors. 6.GENERAL LOAD LIMITATIONS (A)Single-Phase Service Single-phase service normally will be 3-wire, 120/240 volts (or 3-wire, 120/208 volts at certain locations as now or hereafter established by CPAU) where the size of any single motor does not exceed 7-1/2 horsepower (10 hp at the option of CPAU). For any single-phase service, the maximum service size shall be 400 ampere. If the load exceeds the ¯ capability of a 400 ampere single phase service the service shall be three- phase. In locations where CPAU maintains a 120/208 volt secondary system, 3- wire single-phase service normally shall be limited to that which can be CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-5 DESCRIPTION OF SERVICES RULE AND REGULATION 3 ’ supplied by a main switch or service entrance rating of 200 amperes. Single-phase loads in these locations in excess of that which can be supplied bY a 200 ampere main switch or service entrance rating normally will be supplied with a 208Y/120 volt, three-phase, 4-wire service. 3.Three-Phase Service (2,000 volts or less) Minimum Load Maximum Demand Normal Voltage Requirements Load Permitted 240/120 5 hp, 3-phase connected 400 Amperes 240 5 hp, 3-phase connected 400 Amperes 280Y/120 Demand load 75 kVA 500 kVA 480Y/277 Demand load 112 kVA 2,000’kVA (See Note 1) Note 1. Applicants or existing Customers with a planned or existing single or multiple building development having a maximum demand in excess of 2000 kVa, as determined by CPAU, will be required to take delivery at the available primary voltage and are required to provide their own primary switchgear and transformer(s). Determination of maximum demand and service voltage will be made by CPAU and the decision of the Electric Engineering Manager will be final. (1)Where three-phase service is supplied, CPAU reserves the right to use single- phase transformers connected open-delta or closed-delta or three-phase transformers. (2)Three-phase service will be supplied on request for installations aggregating less than the minimum listed above, but not less than 3 horsepower, three-phase, where existing transformer capacity is available. If three-phase service is not readily available, or for service to loads less than 3 hp, service shall be provided in accordance with CPAU’s applicable Rule on Special Power Service requirements. An applicant or existing customer requiring service with a maximum demand in excess of 750 KVA, as determined by CPAU, shall be served by padmount transformers. No submersible or vault-installed transformers in excess of 750 KVA will be installed by CPAU. Where an existing underground service must be upgraded beyond 750 KVA, the Customer shall be required to provide adequate CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-6 DESCRIPTION OF SERVICES RULE AND REGULATION 3 space for installation of the padmount transformer. In the event the Customer is unable to provide adequate space for the padmount transfomer, then the Customer shall make arrangements at his or her expense to receive service at primary voltage. (B)Three-Phase Service (Over 2,000 volts) The following three-phase primary voltage may be available as an isolated service for a single Applicant; And where that Applicant’s demand load justifies such voltage. The determination will be made by CPAU. Minimum Demand Normal Voltage Bank Installed 4,160 500 kVa 12,470 1,000 kVa Maximum Demand Load Permitted 15,000 kVa 15,000 kVa 7.TEMPORARY SERVICE: Temporary service is electric service which, in CPAU’s opinion, is of an indefinite duration at the same location, or to operations of a speculative character or of questionable permanency, or any other service which is estimated to last less than one year. CPAU will furnish temporary service if the furnishing of such service will not work undue hardship upon it or its customers, and the following conditions are met: (A)The Applicant for such temporary service stiall apply for sen’ice on an application form provided by CPAU Engineering and be required to pay to CPAU in advance the cost of installing and removing any facilities necessary in connection with the furnishing of such service by CPAU. (B)Each Applicant for temporary service shall be required to prepay a Temporary Service Fee in accordance with Electric Service Connection Fees Rate Schedule E-15. (c)Nothing in this Rule and Regulation shall be construed as limiting or in any way affecting the right of CPAU to collect from the Customer an additional sum of money which may become due and payable to. CPAU by,reason of the temporary service furnished or to be furnished or removed hereunder. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 7 (o) DESCRIPTION OF SERVICES RULE AND REGULATION 3 If the temporary service connection time exceeds one-year, the Applicant will need to apply for an extension of the temporary service. The Director of Utilities or his/her designee will determine if the service should be reclassified as a permanent service based on conformance with system operating conditions. B. WATER: SOURCE OF SUPPLY The water served is purchased from the San Francisco Water Department (SFWD), primarily the Hetch-Hetchy system. Backup supply is obtained from CPAU wells. o o QUALITY Hardness generally varies between 1 and 4 grains per gallon depending on the source. An analysis of the mineral content of the water is available upon request from CPAU Engineering. PRESSURE o Water pressure will vary from 30 to 125 pounds per square inch; an average of 50 pounds per square inch will be maintained, with the maximum and minimum pressures being experienced at the lower and higher elevations of the distribution system. CPAU assumes no responsibility for loss or damage due to lack of water pressure but agrees to furnish such pressures as are available in its general distribution system. If low water pressure occurs due to additional on-site development, it shall be the responsibility of the property owner to replace the existing water service with a new water service designed for the current site. All costs of the required new service upgrade shall be at the property owner’s expense. TREATMENT Chlorine is applied to the SFWD in sufficient quantities, as provided in the State of California Health and Safety Code, to insure that the water supplied is free from bacterial contamination. CPAU fluoridates the water supplied to a CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.*8 DESCRIPTION OF SERVICES Co GAS: RULE AND REGULATION 3 residual not to exceed 1 mg/1. The pH of the water supplied is adjusted by the San Francisco Public Utilities Commission to reduce its corrosive action. 1.KIND AND HEATING VALUE The gas supplied by CPAU is natural gas purchased from one or more natural gas suppliers. The heating value of natural gas supplied will vary depending upon the gas fields being dra~vn upon, and at times of insufficient supply of natural gas, some artificial gas may be supplied or mixed with the natural gas. The average monthly heating value in British Thermal Units (Btu)-dry basis per cubic foot of the natural gas served may be expected to vary within the limits of 750 to 1150 Btu. This average heating value is converted to a therm factor for use as one of the factors used in calculating a composite multiplier for billing purposes. The therm factor will be based upon the heat factor used by CPAU’ s supplier of natural gas for the preceding month. Gas is supplied by CPAU either at standard "low pressure" or at "high pressure". Low pressure service is available at all points where gas is supplied. Where available from existing high pressure mains, at the option of CPAU, high pressure service may be supplied. However, CPAU reserves the right to lower the pressure or to discontinue the delivery of gas at high pressure. The standard pressure for low pressure is six inches of water column, which is approximately 1/5 pound per square inch (psi) above atmospheric pressure. Where gas is metered at low pressure, or at pressure above the standard low pressure, the metered volume shall be corrected to standard atmospheric pressure of 14.73 psi absolute. 3.DETERMINATION OF THERMS TO BE BILLED The unit of measure for billing is the therm which is defined as the quantity of gas having a heating value of 100,000 BTU. Gas meters measure volume of.gas in CCF at ambient temperature and pressure conditions. Therms are derived from the metered data by the following procedure: the meter reading for the previous reading cycle ~vill be subtracted from the current reading. The difference (uncorrected CCF) will be multiplied by the pressure factor required to convert CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 9 DESCRIPTION OF SERVICES RULE AND REGULATION 3 the measured consumption volume to a standard volume (at standard temperature and pressure conditions). This standard volume, in pressure-corrected CCF, will then be multiplied by the therm factor (a variable determined by periodic analysis of CPAU’s gas supply) to produce the final number oftherms to be billed. The composite correction factor (the product of the therm factor and the pressure correction factor) will be shown on bills under the heading "multiplier." 4.NATURAL GAS DEREGULATION In response to natural gas deregulation, CPAU offers t~vo general types of service: core and non-core. Core services are fully bundled services including gas supply, transport, and distribution services. Non-core service is an unbundled service where CPAU provides distribution services and outside Energy Service Providers supply gas commodity and transport. D.WASTEWATER COLLECTION AND TREATMENT: 1.COLLECTION CPAU operates and maintains a wastewater collection system separate from the storm water collection system. A connection to the wastewater collection system is required for all water users where wastewater service is available. For the disposal ofwastewater from basements and floors below ground level, it will generally be necessary for the Customer to provide pumps or ejectors for satisfactory drainage, as approved by the Water-Gas-Wastewater Engineering Manager. 2. REGULATION Chapter 16.09 of the Municipal Code regulates the dischargeinto the wastewater collection systerfi of substances other than domestic wastewater. 3.TREATMENT The collection system transports the wastewater to the Palo Alto Regional Water CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 10 DESCRIPTION OF SERVICES do RULE ANrD REGULATION 3 Quality Control Plant for treatment. At this tertiary treatment plant, Palo Alto processes the wastewater from Mountain View, Los Altos, Los Alto Hills, Stanford University, and East Palo Alto Sanitary District, as well as its own. The treatment is performed in accordance with the National Pollution Discharge Elimination Permit issued by the San Francisco Bay Area Regional Water Quality Control Board before the treated water is discharged into the San Francisco Bay Estuary. LIMITATION OF SERVICE Eo CPAU reserves the right to limit the size of connection and the quantity of wastes disposed and to prohibit the use of the sewer for disposal of toxic or hazardous wastes detrimental to the sewage system or treatment plant. REFUSE COLLECTION: All refuse is collected by a private company under contract with the City of Palo Alto. This contract and Chapter 5.20 of the Palo Alto Municipal Code establish specific Rules and Regulations by which the collection service will operate. One collection per week is required of all occupied premises. An occup!ed premises is one to which water, gas and!or electric service is rendered. The minimum level of service is one can per week. Each Customer shall receive collection service on a certain day of each week. At times, because of breakdowns, holidays, or illness, refuse may be collected late in the day or another day. When the amount of refuse exceeds the capacity of one 32-gallon can, it will be necessary for the Customer to request additional collection service. An additional charge will be made for this service. Refuse too bulky to be placed in 32-gallon cans, or excessive amounts of refuse, will be removed by the City’s contractor upon request and at the Customer’s expense. The Curbside Collection Program for recyclable materials provides service to most single-family and muir-family residences in the City. Glass, metal, plastics, paper, cardboard, household batteries, oil filters, scrap metal, and waste oil will be collected at the curbside when placed in proper containers on the regular refuse service day. STORM AND SURFACE WATER DRAINAGE: 1. RESPONSIBILITY AND PURPOSE CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 11 DESCRIPTION OF SERVICES RULE AND REGULATION 3 CPAU is responsible for all drainage facilities in the street and public right of way that collect storm and surface water and convey it to the major channels and creeks within Palo Alto. Examples include curbs and gutters, catch basins, pipelines, culverts, street, channels and pumping stations. The purpose of the storm and surface water control facilities is to improve the quality of control, or protect life or property from any storm, flood or surplus waters. 2. STORM DRAIN FEE A storm drainage fee shall be payable to CPAU monthly by the owner or occupier of each and every developed parcel in accordance with CPAU Rule and Regulation 25. The basic unit of computation of storm drainage fees shall be the "Equivalent Residential Unit" (ERU). No developed parcel shall have an ERU less than 1.0. All single-family and duplex units are considered 1 ERU based on data from CPAU, and are considered to have an average impervious area of 2,500 square feet. All other properties will have ERU:s using the following formula: No. Of. ERU = Impervious Area (Sq.Ft) 2,500 Sq.Ft. FIBER OPTICS CPAU offers a dark fiber service over an established over an established fiber optic net~vork. In addition, CPAU offers custom dark fiber construction and ancillary services such as fiber optic cable splicing. The dark fiber service provides strands of single mode fiber that can that can interconnect multiple locations within the City limits of Palo Alto. CPAU will also consider requests for custom MultiMate fiber cable installations. Light transmitters, receivers, and related electronic equipment must be supplied by the Customer. 3.Rule No. 26 provides specific requirements for fiber optic service. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-12 APPLICATION FOR SERVICE RULE AND REGULATION 4 A.APPLICATION FOR SERVICE: o This Rule and Regulation applies to all utility services: electric, water, gas, wastewater collection, refuse collection, storm drain and fiber optics. Residential service is separately metered service to single family, or multi- family domestic dwellings. Commercial service is service to other than residential dwellings but includes service to multi-family residential dwellings served by a master meter. Direct Access service has special requirements in addition to this Rule and Regulation. An inquiry fo~: information as to service is not an application for service. The application is merely a request for service, and does not bind CPAU to serve except under reasonable conditions, nor does it bind the Customer to take service for a longer period than the minimum requirements of the applicable service. o CPAU will require each prospective Customer to provide any information that may be reasonably needed by CPAU to furnish service and to egtablish the Applicant’s credit. This information may include, but is not limited to, the following: a) b) c) d) e) 0 g) h) I) Name(s) of Applicant(s) Address of premises to be served Date Applicant desires services to begin. If service upgrades and/or new meter installs are requested, CPAU services ~vill be installed between 30 and 45 days following receipt of full payment. Address to which bills are to be mailed or delivered Whether premises have been previously served Purpose for which service is to be used, with description of service demands identified on the CPAU connection application form provided by CPAU Engineering Tenant Rental A~eement of application Rate schedule desired where an optional rate is available Information to establish the credit of Applicant(s): CITY OF,PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - ’1 APPLICATION FOR SERVICE RULE AND REGULATION 4 1)Social Security Number 2)California Drivers License 3)Employer 4)Business Telephone 5)Length of Employment 6)Home Telephone The information requested in A.3 above may be required to be provided by the Applicant(s) in writing, or by telephone if the Applicant’s signature is not required. Applicants for commercial service at more than one location shall be required to furnish information and to establish credit for each location in accordance with A.3 above. Two or more persons who join in one application for service shall be jointly and severally liable for CPAU services supplied. Only one bill will be rendered for such joint service. A tenant who opens an account for a metered service serving more than one dwelling will be required to provide a letter in writing to CPAU that he or she understands that the meter(s) serves additional dwellings and that he or she is willing to accept responsibility for all charges on said meter(s). Otherwise, the account shall be in the name of the owner or property manager. A dwelling is designated as any house, cottage, flat, or apartment unit having a kitchen, bath, sleeping quarters, and separate entrance. B.CHANGE IN CUSTOMER’S EQUIPMENT OR OPERATION: Customers shall give CPAU written notice of any material changes in the size, character, or extent of equipment or operations for which CPAU is supplying service before making any such change. Not~vithstanding any Rule and Regulation herein to the contrary, no change or alteration of any CPAU service, agreement, connection, or facility, CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-2 APPLICATION FOR SERVICE RULE AND REGULATION 4 Co including any installation or reinstatement thereof, shall be made or permitted by CPAU where the purpose or effect would be to serve, facilitate or make possible a use or occupancy of a structure or other condition ~vhich is or would be in violation of the Zoning Ordinance, the Building Code or any ordinance of the City of Palo Alto. at Each Applicant for service will be required to establish or reestablish credit to the satisfaction of CPAU before service will be supplied. SERVICE WITHOUT PROPER APPLICATION: Anyone using CPAU services without having first complied with the requirements for service will be held liable from the date of the first service as determined by CPAU. Failure to pay accumulated charges may result in discontinuance of service without further notice. D.RIGHTS OF WAY: CPAU shall not be required to connect with or render service to an Applicant unless and until the Applicant has all necessary operating rights, including rights-of-way, easements, and permits. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 CONTRACTS RULE AND REGULATION 5 ’A.TYPES OF SERVICE CONTRACTS For electric, gas, or fiber optic services in large quantities or under special conditions, CPAU may require a suitable written agreement for new or existing customers. The following is a list of special services which may be the subject of a contract. Additional services may apply at the discretion of the Director of Utilities. 2. 3. 4. 5. 6. 7. 8. 10. 11. 12. 13. 14. 15. Line Extensions. Temporary Service. Special Facilities. CPAU service to special districts and institutions. Special type service requirements. Work performed for other agencies at their expense Customers purchasing energy from other entities, such as an ESP Customers purchasing natural energy gas or power from CPAU under special arrangements Power Marketers or ESPs Work performed or Energy Service Providers at Customer expense Special Metering and/or Billing Services Special Energy Services Long-term service agreements greater than 3 years. Loans to Customers to finance Demand Side Management at Customer’s site Standby Service CONTRACT GUIDELINES Contracts between CPAU and its customers shall be based on the following policy guidelines: Larger commercial customers will have the ability to negotiate provision of Energy Services from CPAU. Authority to establish the specific terms, including pricing of services, ~vill be delegated to the City Manager. CITY OF PALO ALTO UTILITIES CONTRACTS RULE AND REGULATION 5 Revenues realized from each contract will, at a minimum, recover all applicable Energy Services costs over the term of the contract. Pricing arrangements differing from those offered in the current and successor rate schedules will not shift costs to the other customers in the short-or long-term. Custom tailored contracts must include sufficient insurance and/or "off ramps" to protect CPAU or the customer from unanticipated events. The same pricing, terms, and conditions for one customer will be made available to other customers of similar size, service and load characteristics. CONTRACT APPLICATION PROCEDURES In general, the following application procedures are applicable to service contracts. 1.Completion of applicable forms as necessary; 2.Depending on the type of service contract, Customers shall request consideration for a special contractual agreement in writing to the Director of Utilities specifying their objectives, including the desired term of the contract. If applicable, fees or deposits shall be paid. If applicable, compliance with the City’s insurance requirements. (END) CITY OF PALO ALTO UTILITIES ESTABLISHMENT AND REESTABLISHMENT OF CREDIT RULE AND REGULATION 6 A.ESTABLISHMENT OF CREDIT FOR RESIDENTIAL SERVICE: The Applicant’s credit will be established: 1.If the Applicant is the owner of the residence to which CPAU is requested to supply service; or If the Applicant makes a sufficient cash deposit with CPAU to secure payment of any bills for service to be supplied by CPAU; or If the Applicant has previously been a Customer of CPAU within the past two years and during the last twelve consecutive months of that prior service has not received more than (2) five-day past due notices, and provided that the credit of the Applicant is unimpaired in the opinion of CPAU; or If the Applicant’s credit is otherwise established to the satisfaction of the Utilities Supervisor, Customer Service Center. B.ESTABLISHMENT OF CREDIT FOR COMMERCIAL SERVICE: The Applicant’s credit will be established: If the Applicant makes a sufficient cash deposit with CPAU to secure payment of any bills for service to be supplied by CPAU; or If the Applicant provides, in lieu of a cash deposit, a certificate of deposit drawn on a local bank or savings and loan association, or a surety bond sufficient to secure the payment of any bill for service to be supplied by CPAU; or 3.If the Applicant’s credit is otherwise established to the satisfaction of CPAU. C.REESTABLISHMENT OF CREDIT: An Applicant who has been a utility Customer of CPAU and whose service has been discontinued for any reason, including failure to pay utility bills, may be required to reestablish credit before service is resumed, by making a cash deposit and by paying all past due bills outstanding. However, an Applicant for CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-1 ESTABLISHMENT AND REESTABLISHMENT OF CREDIT RULE AND REGULATION 6 residential service will not be denied service for failure to pay past due bills outstanding for other classes of service. The requirement to pay past due bills under this section is not applicable to Customers ~vho have filed for bankruptcy. A Customer who fails to pay utility bills before they become past due, and who further fails to pay such bills within the time required by a second notice of nonpayment, may be required to reestablish credit by making a cash deposit with CPAU and by paying all past due bills outstanding regardless of whether or not service has been discontinued for nonpayment. o A Customer may be required to reestablish credit in accordance with this section if the conditions of service or basis on which credit was originally established have, in the opinion of CPAU, materially changed. CUSTOMER CREDIT RATING SYSTEM: A credit rating system has been established by CPAU for all accounts and is shown on a Customer’s utilities bill statement. o The following ratings are based on a Customer’s rolling 12-month payment history in terms of the Customer’s record in paying bills before they became due. "A" is the highest rating and means the Customer paid before the due date in at least 11 of the 12 previous months. "B" means the Customer usually paid before the due date but in two or three months paid after the due date. "C" means the Customer customarily pays after the due date and did so between 4 to 7 times over the previous 12 months. "D" means the Customer is habitually delinquent and paid after the due date at least 7 times over the previous 12 months. In addition, Customers who have had their service terminated for non-payment automatically receive a "C" or "D" rating based off the number of notices, regardless of how frequent or infreq.uent they paid previous, bills before they were due. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 DEPOSITS RULE AND REGULATION 7 A.AMOUNT OF DEPOSIT: The amount of a deposit shall be set forth in Customer Deposits Rate Schedule C-2. o If a Customer has been delinquent on more than once in the past twelve months the deposit may be set higher than is set forth under the applicable rates in Rate Schedule C-2. This amount shall not exceed a sum equal to twice the estimated monthly utilities bill. Where a deposit is made for commercial service, CPAU may from time to time require an additional deposit to offset increases in utility rates or increased utility usage. If a Customer files for bankruptcy protection under Chapter 7, Chapter 11, or Chapter 13, the Customer shall be required to establish credit under Rule 6.b.1 and/or 6.B.2. The requirement for a deposit may be waived by the Supervisor, Utilities Customer Service Center if: (A)He/she is satisfied of the credit~vor[hiness of the Customer based upon a prior history with CPAU and/or; An audited financial report is provided of recent operations which indicates to the satisfaction of the Supervisor, Utilities Customer Service Center that the business is financially healthy and/or; Deposits can be in the form of a certificate of deposit at a local bank or savings and lodn, indemnity or surety bond, or cash. A security deposit may be required from an Energy Service Provider (ESP) providing Direct Access Service to Palo Alto Customers. The terms relating to the amount, collection, return or use of the security deposit will be included in the Direct Access Service Provider Agreement (DASPA) signed CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 DEPOSITS RULE AND REGULATION 7 between the ESP and CPAU. RETURN OF DEPOSIT: Upon discontinuance of service, CPAU will refund the Customer’s deposit or the balance thereof which is in excess of unpaid bills for service furnished by CPAU. If the deposit is unclaimed for a period of one year after discontinuance of service, the deposit will become the property of CPAU. CPAU may refund a Customer’s deposit by draft or by applying the deposit to the Customer account and the Customer will be advised. o o ° If the Customer establishes service at a new location, CPAU may retain the deposit for such new account in partial or total fulfillment of the deposit obligation for the new account. Residential deposits will be refunded at the end of one year of service provided all bills for service have been paid before they become past due. Deposits held for commercial service shall be refunded when service is discontinued by the Customer, or after three years if all bills for service during the recent 12 month period have been paid before they become past due. CPAU will not pay interest on customer deposits. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-2 ACCESS TO PREMISES RULE AND REGULATION 8 A.GENERAL CPAU, its agents and employees shall have the right of ingress to or egress from the Customer’s premises as reasonably required for meter reading, performance of necessary maintenance, repairing, inspecting, testing, installation, removal or replacement of its property and the exercise of any and all rights secured to it by law. If any such equipment is located within a locked area or enclosed, CPAU will be furnished access. The Customer will supply CPAU with a key to any gate/door or remove any obstacle to free access to the meter by CPAU personnel. In the event the Customer is not the owner of the premises occupied, the Customer shall obtain all such permissions from the owner thereof. CPAU, its agents and employees will maintain Customer security when ingressing or egressing Customer premises by notifying the Customer while on their premises or securing all locking doors, cabinets and enclosures when exiting the premises. Water, gas, and electric meters remain the property of CPAU, and CPAU may take such legal action as is necessary to gain access to the premises for the purpose of terminating service or retrieving such meters. METER ACCESS IS A CONDITION OF SERVICE: If CPAU is unable to read the Customer’s water, electric, and/or gas meter due to conditions imposed by the Customer or created on the premises, CPAU may, at its option, require the Customer to move the meter(s) to a location on the premises that shall be accessible to CPAU personnel at all reasonable houi’s for purposes of furnishing or maintaining utilities. The cost to. relocate said meter(s) shall be borne by the Customer. J If CPAU or its representative (meter reader or meter field service worker) is denied access to its meter for any two months, in a three-month period, CPAU shall notify the Customer by registered mail that access was denied by CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO ¯ UTILITIES Sheet No.-1 ACCESS TO PREMISES RULE AND REG[ ILATION 8 means noted in that registered mail. A notice of discontinuance will be sent if the Customer, within a two week period, does not acknowledge receipt of the registered mail and indicate an intention to provide access. Such acknowledgment shall be in writing or by calling the CPAU telephone number provided to the Customer. Continued disregard by the Customer to respond to CPAU may result in disconnection of utilities services. A Customer is entitled to a hearing with the Supervisor, Utilities Customer Service Center, to appeal the discontinuance of service. Failure to relocate such meters within 60 days of receipt of notice from CPAU of the requirement to relocate the meter(s) shall result in discontinuance of service. Service discontinued under this provision shah not be restored until the relocation work has been accomplished and has successfully passed such inspections as may be required by both CPAU and the Planning Department’s regulations. Where Customer’s denial of access has prevented inspection of the meter, CPAU may discontinue service. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO - UTILITIES Sheet No. - 2 DISCONTINUANCE AND RESTORATION OF SERVICE RULE AND REGULATION 9 A. CUSTOMER REQUESTS DISCONTINUANCE OF SERVICE: A Customer requesting termination of utilities service(s) shall notify CPAU at least two days before the service termination date. Receipt of such notice is sufficient to terminate the obligation of CPAU to render service after the effective date of such change, and shall also terminate the Customer’s responsibility for bills for service supplied to the premises which are consumed beyond that date. The Customer is responsible for all service supplied until the effective date of the termination. A Customer may designate a third party to receive notice of termination or other matters affecting the provision of service. CPAU will not affect termination of service until five business days after provision of notice to the third party. B.CPAU INITIATES DISCONTINUANCE OF SERVICE: The right to discontinue service for any of the following reasons may be exercised whenever and as often as such default shall occur, and neither delay nor omission on the part of CPAU to enforce these Rules at any one or more times shall be deemed a waiver of its right to enforce the same at any time, except as provided below, so long as default continues. Utilities service may be discontinued by CPAU for any of the following reasons: Nonpayment of bills or any proper charges including deposits, special fees, or loans, as provided in accordance with Section C of this rule; Use of energy or water for purposes, facilities, or properties other than that specified in the application; 3.Willful waste o~ water; Customer’s wiring or equipment is unsafe, does not meet CPAU standards or fails to comply with applicable codes and regulations. CPAU reserves the fight of inspection if there is reason to believe that unsafe conditions exist. If the Customer finds utility service installation to be defective, the Customer is CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 o o o DISCONTINUANCE AND RESTORATION OF SERVICE RULE AND REGULATION 9 required to notify CPAU immediately of the defect; Tampering with CPAU equipment of property. Any person who tampers with or damages any utilities equipment, plant, or property, including metering devices, shall be liable to the City of Palo Alto for three times the amount of actual, consequential, and incidental damages sustained thereby. Premises vacated by Customer without notification to CPAU; Customer ~efuses reasonable access to premises by CPAU agents or employees for the purpose of reading, installation, inspection, maintenance, repairing, testing, or removal of its equipment or facilities located upon such premises; Violation of CPAU Rules and Regulations, service agreements, or rate schedule provisions or state, county, or municipal codes or regulations concerning the provision of such service; Use of equipment that imposes an electrical load by a Customer that adversely affects CPAU’s distribution system operation or service to its other Customers. Any Customer that operates or plans to operate any equipment such as, but not limited to pumps, welders, furnaces, compressors or other equipment where the use of electricity is intermittent, causes intolerable voltage fluctuations, or otherwise causes intolerable service interference, must reasonably limit such interference or restrict the use of such equipment upon request by CPAU. The Customer is required tO either provide and pay for whatever corrective measures, including protective devices, are necessary to limit the interference to a level established by CPAU as acceptable, or avoid the use of such equipment. CPAU assumes no duty or liability for inspecting the customer’s service, appliances, or equipment. CPAU reserves the right of inspection if there is reason to believe that unsafe conditions exist. 10.Service obtained by fraudulent means, including providing false, misleading, or inaccurate information to CPAU. Service may not be restored until the Customer complies with CPAU requirements and makes full payment to CPAU for services received; CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 11. 12. 15. DISCONTINUANCE AND RESTORATION OF SERVICE R~YLE AND REGULATION 9 Placement, construction, or maintenance of any structure, vegetation, or other object upon the Customer’s premises that, in CPAU’s judgment, unreasonably endangers the safe and reliable operation or maintenance of CPAU overhead or underground electrical facilities; Failure to establish credit or to provide adequate credit information. Also, if for an Applicant’s convenience, CPAU provides service before credit is established or continues service to a Customer when credit has not been reestablished in accordance with Rule 6, and the Customer then fails to establish or reestablish credit, CPAU may discontinue service after presentation of a forty-eight (48) hour discontinuance notice. Returned check(s) due to insufficient funds in Customers bank account; Theft of energy or water supplied by CPAU to Customer’s premises; or when service has been received through an unauthorized connection. Anyone using utility services without having first complied with the requirements for service will be held liable from the date of the first service as determined by CPAU. Failure to pay accumulated charges may result in discontinuance of service without further notice. 16. Customer refuses to relocate meter to enable the meter to be read. Co ¯ DISCONTINUANCE OF SERVICE RELATED TO NONPAYMENT OF BILLS: Customer bills unpaid by their due date are considered delinquent and service may be discontinued in accordance with this section. CPAU will disconnect service as a last resort. It is the policy of CPAU to advise Customers of the availability of financial assistance programs such as the Residential Rate Assistance Program (RAP), Budget Billing, and ProjectPLEDGE to avoid disconnection of service. Upon request, CPAId will also.consider an extended payment plan with the Customer. 1.CUSTOMERNOTIFICATION (A)Before service can be discontinued, at least two notices to the Customer must be CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 DISCONTINUANCE AND RESTORATION OF SERVICE (B) RULE AND REGULATION9 provided. The first "Disconnect Notice" shall allow a minimum of 8 days from the date it is issued for the Customer to pay the overdue amount and avoid termination of service. If payment is not received within the 8 day period, a second "Disconnect Notice" will be delivered to the Customer’s premises and provide an additional 48 hour grace period before utilities services may be terminated. If payment is not received during the 48 hour period, utilities services may be discontinued without further notice. The (1) (2) (3) (4) forty-eight (48) hour notice of termination of service shall include: The name and address of the Customer whose account is delinquent; The amount of the delinquency; The day payment or arrangements for payment is required in order to avoid termination; The procedure to use in making payment or arrangements for payment in order to avoid termination; The procedure for the customer to obtain information on the availability of financial assistance including local, state, or federal sources. (0 In order to avoid termination of service, CPAU may, at its option, extend payment arrangements to accommodate a Customer’s financial situation and payment history. Such an arrangement may cover a single or multiple payments and shall be agreed to in writing bet~veen CPAU and the Customer. If the Customer fails to comply with such agreement, the entire amount owing will become immediately due and payable and utilities services may be terminated upon a 48 hour notification period elapsing without satisfactory payment received for the outstanding balance. EXCEPTIONS TO DISCONTINUING SERVICE FOR NONPAYMENT (A)CPAU service will not be discontinued for nonpayment of a bill for residentfal service on any Saturday, Sunday, legal holiday or at any time ¯ during which the Utilities Customer Service Center is closed: (B)CPAU service to a residential customer will not be discontinued for nonpayment when the customer has established to the satisfaction of CPAU that: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-4 (1) (2) (3) (4) (5) (6) DISCONTINUANCE AND RESTOtLA,TION OF SERVICE RULE AND REGULATION 9 Such termination would be especially dangerous to the health of the Customer as certified by a licensed physician which states that termination of service will aggravate an existing medical condition or will create a medical emergency for a permanent occupant of the premises affected. The certificate of medical emergency must be in writing and show clearly the name of the person affected and the nature of the medical emergency; The Customer is among the elderly (over 62 years of age) or disabled and has established that he or she is unable to pay the outstanding balance for utility service in accordance with CPAU’s credit policy, and the Customer is willing to arrange installment payments satisfactory to CPAU, including arrangements for prompt payment of subsequent bills. The Customer has shown sufficient evidence of hardship and has demonstrated good faith efforts to make reasonable arrangements to pay arrearage, as well as to ensure continuing payment of future bills. Such arrangements may include an extended payment plan satisfactory to CPAU or, in some cases, designation of a responsible third part:,." for both notification and payment. A Customer’s utility service will not be discontinued for nonpayment of bills until the amount of any deposit made to establish credit has been fully absorbed by past due and current charges. A Customer’s utility service will not be discontinued for nonpayment of a bill issued to correct charges previously billed iiacorrectly until the correct bill becomes past due. A Customer’s utility service will not be discontinued for nonpayment of a disputed bill during investigation or review by CPAU. Thereafter, discontinuance shall be in accordance with this Rule. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - ,5 DISCONTINUANCE AND RESTORATION OF SERVICE RULE AND REGULATION 9 o TENANTS AFFECTED BY DISCONTINUANCE OF LANDLORD’S UTILITIES SERVICE(S) (A) In the event a landlord (or landlord’s agent) fails to pay for utilities furnished via a master meter serving a multi-unit residential structure, mobile home park, or multi-unit commercial structure,- (for example, lighting for common areas), CPAU will notify the tenants of the affected premises. Such notice will identify the intended date of discontinuance of utilities’ service(s) as 10 days from the date of issuance. (.B) Tenants will be given the option of assuming responsibility for future bills for the affected area, provided they do so before the date of the intended discontinuance as published in the notice. Acceptance of such tenant responsibility for future bills by CPAU shall not abrogate the landlord’s responsibility for bills for services supplied prior to the date of assumption of responsibility by the tenant(s). CPAU shall not be deemed a party to any agreement between landlord (or landlord’s agent) and tenant by virtue of accepting tenant responsibility for future service. TERMINATING SERVICE FOR NONPAYMENT OF BILLS AT OTHER LOCATIONS A Customer’s utility service may be discontinued for nonpayment of a bill for service previously rendered, or for nonpayment of a bill for service rendered at another location. A Customer receiving service at more than one location may have service at any and all locations discontinued for failure to pay bills at any one or more locations. However, residential service will not be discontinued for nonpayment of bills for other classes of service. D.NOTICE REQUIREMENTS FOR TERMINATION OF SERVICE: Depending on the situation, notice requirements will vary before utility service is terminated. Notice requirements related to the nonpayment of bills is previously covered in Section C of this rule. Notice requirements regarding other circumstances follow here: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-6 ¯ DISCONTINUANCE AND RESTORATION OF SERVICE RULE AND REGULATION IMMEDIATE TERMINATION OF SERVICE WITHOUT NOTICE CPAU may discontinue service without notice if: (A) Continuing service is unsafe and presents an immediate threat or danger to life or property; (B) Service has been received through an unauthorized connection or service has been obtained through fraudulent means; (C) Continuing the service may impair service or distribution system reliability; (D) A Customer has received a termination notice and CPAU confirms that the Customer’s check tendered in payment of the past due amount lacks sufficient funds to satisfy the amount due; (E)An emergency arises; (F)CPAU’s meter has been tampered with. or water or energy theft has ocurred. 9 o o 48 HOUR NOTICE Besidesthe forty-eight (48)hour notice requirement for nonpayment of bills, such notice is required if, for the convenience of the Customer, CPAU provides service before credit is established, and such credit subsequently proves unsatisfactory. 5 DAY NOTICE Generally, in cases not specifically provided previously in this rule, CPAU will not discontinue the service(s) of any Customer for violation of any rule or regulation except upon written notice of at least five (5) days. If a Utilities Rule and Regulation is violated, CPAU will advise the Customer of the source of the violation, and ~vill give the Customer written notice of its intent to disconnect service if the violation is not remedied within the time specified by the notice. RESTORATION OF SERVICE: CPAU shall restore servicewhen the cause for discontinuance has been removed and payment has been made of all proper charges due including proper deposit and including the reconnection charge. When service has been discontinued for nonpayment of bills or failure to comply with the CPAU Rules, a reconnection charge as set forth in CPAU Rate Schedule C-1 may be instituted and collected by CPAU before service is renewed. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 7 METER READING EADING RULE AND REGULATION 10 tTION 10 FERS READ AT MONTHLY INTERVALS: Water, gas, and electric meters will be read by CPAU approximately at regular monthly intervals (27-33 days). The service period for opening bills will be from the service initiation date requested by the Customer to the next regular reading day for meters in the service area. For closing bills, the service period will be from the last regular reading day to the service termination date requested by the Customer. "IMATED READING: Under normal conditions, bills will be based upon actual readings taken "from meters. However, in the event of meter malfunction, continuing lockout, or an acute shortage of meter reading personnel, the bill for a particular month may be based upon estimated meter readings taken from the historical record of CPAU usage at the premises. CPAU will make reasonable efforts to insure that the bill for the following month will be based on actual readings, so as to correct any inaccuracies arising from the use of the estimated readings. CPAU may estimate bills for unmetered service, for service from meters which ’ have been tampered with, or where access has been denied or impeded by the Customer, by the best available means (which may include, but are not limited to: estimation by comparison to prior period for the same premises, estimation by comparison to comparable premises, or estimation based upon load calculations). Such bills shall be due and payable by the Customer. The Customer may appeal such bills to the Supervisor, Customer Service Center. &DINGS OF SEPARATE METERS: the purpose of calculating charges,, each meter, on the Customer’s premises will be ~idered separately, and the readings of two or more meters will not be combined, ,~pt as follows: Where combinations of meter readings are specifically provided for in rate fllation of contract, ,e astomer ,~se cards ¯ , the ic mail ings. ~nsibility I provide Is to imated uld result [, or 4eter ~ters as ormel at :~ALO ALTO UTILITIES the City Council "-1-98 CiTY OF PALO ALTO UTILITIES Sheet No. - 1 LNo. -2 METER READING RULE AND REGULATION 10 reasonable hours must be provided by the Customer. In the event access is denied, Rule 9 shall apply. o This program is not available to customers served under a Direct Access schedule~ 4.Customer continuance on this program is at the discretion of CPAU. E.METER READING ERRORS: Under certain circumstances, CPAU will adjust a Customer’s bill for reasons of accuracy and fairness. See applicable CPAU Rule for a discussion of billing adjustments related to error or malfunction and back billing a Customer for billing errors. Meter reading errors may be brought to the attention of CPAU 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 CPAU to verify unusual meter readings. 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 CPAU. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-~-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 ¯ BILLING,ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 Bo PREPARATION AND PRORATION OF BILLS: Bills for utility services will be prepared on a monthly basis in accordance with the rate schedule or CPAU contract applicable to the premises served, as determined by CPAU. The monthly minimum or service charge for metered water (and related wastewater), gas, or electric service, as well as the consumption "blocks" if applicable for. opening, closing, or regular bills, will be prorated on the basis of the number of days in the service period to the number of days in an average month. The number of days in an average month will be taken as 30.4. The effect of such proration will be to produce a uniform average unit cost for the commodity regardless of the number of days in the service period. o In the event that water, gas, electric, refuse, wastewater and/or storm drain rates change during the service period, charges will be prorated on the basis of the number of days covered by the previous rate schedule to the number of days covered by the new rate schedule¯ The monthly (or bimonthly) fiat-rate charge for refuse, storm drain and wastewater or other nonmetered services will be billed 12 times per year, or equivalent thereof on regular bills. Such charges will only be prorated on opening or closing bills and when rates change. BILLING UNITS: All metered billing units used for billing purposes shall be determined to the nearest whole unit. Such units may include, kW, kwh, kYa, kVar, hp, therms, and or ccf. PAYMENT OF BILLs:. CPAU issues bills to its customers on a monthly basis. Bills shall be deemed received upon personal delivery to Customer or three days following the deposit of the bill in the United States Mail to the Customer’s last known address. Bills for CPAU services are due and payable 20 days following issuance of the bill statement. Bills unpaid after the CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 20 day period are considered delinquent. If a Customer’s payment is not received by CPAU before the next bill statement is issued, the outstanding balance in excess of $100 will be assessed a late payment charge in accordance with this rule. For the convenience of CPAU Customers there are a number of ways to pay CPAU bills: e o By enclosing the bill stub and check and mailing to: CPAU, P.O. Box 10097, Palo Alto, CA 94303-0897. By paying in person at the Civic Center, Revenue Collections, 1st Floor, 250 Hamilton Avenue, Palo Alto between the hours of 8:00 a.m. and 4:30 p.m.. Visa and Master card payments can be processed at Revenue Collections. By dropping the payment in the Night Depository Box either in the front of the Civic Center Plaza or at the drive-up Night Depository Box in the Civic Center Garage, A level. By banking at a financial institution or subscribing to a service company that provides automatic payments by telephone transfer bet~veen the Customer and the bank. This involves the Customer notifying (by touch tone telephone) the bank or service company each month of the utilities bill amount, the amount is deducted from their bank account, and the bank issues a check to CPAU. D.LATE PAYMENT CHARGES: Any unpaid balance above $100 from a prior billing period is delinquent and assessed a late payment charge. Utilities charges incurred in the current billing period are due and payable by the "Due Date" indicated on the front of the bill statement. Bills unpaid by the due date are considered delinquent and a late payment charge is added to the outstanding balance if payment is not received before the next bill is rendered. Based on the particular merits of a given situation, late payment charges may be ~vaived by CPAU. Examples of situations ~vhere a waiver is granted are generally those under which the Customer is faced with circumstances beyond his or her control. Two examples are: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 (A) (B) The posting of payments received by CPAU is delayed or in error. The Customer is withholding payment or partial payment pending resolution of an inquiry. In the event the Customer makes a payment of less than the total amount of bill rendered, which amount includes any previous balance owing, CPAU shall apply said payment first to the previous billing charges and the remainder, if any, to the current billing charges unless otherwise agreed to by CPAU. In the event that a Customer participating in the ProjectPLEDGE Program has a delinquent bill, late charges will not be applied. However, the Customer’s participation in ProjectPLEDGE will be discontinued after three consecutive months in which the Customer has not included their pledge amount in the bill. The late payment charge will be computed on the balance forward using the following schedule: If Balance Is: $ 00.00 to 99.99 100.00 to 199.99 200.00 to 299.99 300.00 to 399.99 400.00 to 499.99 500.00 and up Late Payment Charge Per Month is: " None 1.1 percent 1.2 percent 1.3 percent 1.4 percent 1.5 percent Subparagaphs D(1) and D(2) to the contrary notwithstanding, Customers whose CPAU bills include payments of principal and/or interest on loans from CPAU which are secured by deeds of trust on real property shall be charged a late payment charge when any current CPAU bill includes an unpaid installment on such laan from a prior bill, provided that twenty (20) days have elapsed since the day of the last billing. For closing bills, the elapsed.time will be thirty (30) days. The late charge on such loan payment shall be six percent (6%) of the installment due or fine dollars ($5), ~vhichever is greater. No charge will be imposed more than one for a late payment for the same installment; provided, however, that the imposition of the late charge on any late payment will not eliminate or supersede CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 late charges imposed on prior late payments. No late charge will be imposed on any installment which is paid or tendered in full on or before its due date, or within the ten (10) days after notice is given that the late charge will be imposed even though an earlier installment or installments, or any late charges thereon, may have been paid in full when due. For purposes of determining whether late charges may be imposed, any payment tendered by the Customer shall be applied by CPAU to the most recent installment due. Nothing in this Rule and Regulation shall be construed to alter in any way the duty of the Customer to pay any installment on a loan from CPAU when due or to alter the fights of CPAU to enforce the payment of such installments. Nothingin this subparagraph shall alter the payment or collection of late charges assessed in accordance with subparagraphs (1) and (2) of this Rule and Regulation for CPAU bills or portions thereof which do not include payments on loans secured by real property. In the event a Customer’s payment of principal and interest is past due on an unsecured loan from CPAU, the applicable late payment charge may be established in the contract with the customer. E. RETURNED CHECK CHARGE: A service charge will be made and collected by the City of Palo Alto for each check returned by a bank to CPAU for the reason of insufficient funds in accordance with Rate Schedule C-1. F.DISPUTED BILLS: CORRECTNESS OF BILL If the correctnegs of a bill is questioned or disputed by the Customer, an explanation should be requested from a Utilities Customer Service Representative within five (5) days of receiving the utility bill.. If the bill is determined to be incorrect, a corrected bill will be issued to the Customer. BILL REVIEW PROCEDURE CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 (A) (B) (c) (D) BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 A Customer who has initiated a complaint or requested an investigation within five (5) days of receiving the utility bill shall be given an opportunity to review the complaint with the Supervisor, Customer Service Center. The review shall include consideration of whether the Customer should be permitted to amortize the unpaid balance of their account over a reasonable period of time. After reviewing the disputed bill, the Supervisor, Customer Service Center will: (1) Authorize any necessary adjustments; .or (2) Advise the Customer that the bill is correct as presented; and (3) Determine if an amortization period .is warranted. If an amortization period is warranted and agreed to by the Customer, service will not be discontinued for nonpayment provided the Customer complies with the amortization agreement, and provided the current bill is paid within 20 days of the date issued. If the Customer fails to comply with the amortization agreement, service shall be subject to discontinuance for nonpayment of bills as provided in Rule 14. (E)Failure of the Customer to notify CPAU of a billing error or to request an explanation of charges within 20 days of the date of the bill will constitute acceptance by the Customer of the bill as rendered. PAYMENT OF BILLS IN DISPUTE Go If a Customer disputes a specific utility charge on a utilities bill covering multiple utilities, the bill amount for utility services which are not in dispute shall be due and payable by the date’due on the bill statement. The Customer is not obligated to pay the utility charge in dispute while CPAU is investigating the disputed charges. Upon completion of the investigation, CPAU will notify the Customer if and when a payment is required. BILLING ADJUSTMENTS: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-5 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 Under certain circumstances, CPAU will adjust a Customer’s bill to correct for billing error or for reasons of equity and fairness. Such adjustments are generally of a one- time nature. Billing error is the incorrect billing of an account due to an error by CPAU or the Customer which results in incorrect charges to the Customer. Some billing errors also arise if the Customer provides incorrect information to CPAU. Billing adjustments applied to Customer charges for reasons of equity and fairness include wate~ or gas leak credits, smoothing, and 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. Billing errors include, but are not limited to, incorrect meter reads or meter read estimates, clerical errors, wrong therm factors, wrong meter multiplier, incorrect voltage discount, meter installation, crossed meters, undercharges due to meter tampering, an inapplicable rate, an oversight in the process of entering the appropriate meter information into the computer system for billing, or field errors such as installing the meter or regulator incorrectly. 1.SMOOTHING ADJUSTMENT (A)A smoothing adjustment averages the usage of a customer over two billing periods. The Supervisor, Customer Service Center or a designated representative shall determine if a smoothing adjustment is indicated. (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 CPAU; or (2) A lor~ger or irregular billing cycle. 2.METER ERRORS AND OTHER BILLING ADJUSTMENTS (A)When, as a result of a test, a meter is found to be more than two percent (2%) fast, CPAU will refund the Customer the overcharge based upon the corrected meter readings for the period the meter was in use. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 6 (is) (c) BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RI ILE AND REGULATION 11 When, as a result of a test, a meter in residential use is found not to register, or to register more than ten percent (10%) slow, CPAU may bill the Customer for the undercharge base on an average bill. The bill will be computed upon an estimate of consumption based upon the Customer’s prior use. When, as a result of a test, a meter in other than residential use is found not to register, or to register more than two percent (2%) slow, CPAU may bill the Customer for the undercharge base on an average bill. The bill will be computed upon an estimate of consumption based upon the Customer’s prior use during the same season of the year. APPLICABLE ADJUSTMENT PERIOD FOR METER ERRORS, RETROACTIVE BILLING, AND REFUNDS When it is found that a meter is recording in error or an error in billing has occurred, the date and cause of which can be reliably established, the retroactive billing adjustment will apply as follows: (A)Where the Customer has been-undercharged, the period to be backbilled shall not exceed 6 months; Where the Customer has been overcharged the period to be refunded shall not exceed 12 months; w Where there is evidence that theft of energy or water has occurred, CPAU shall retroactively bill and collect any underpayment or nonpayment of charges. The applicable period to assess charges shall be from the date it can be reasonably established the theft began to the date in which the underpayment was discovered and initially .established. The applicable period shall not exceed 4 years. 4.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 premises beyond the CPAU meter. Leaking faucets, toilets, CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-7 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RI YLE AND REGULATION 11 hoses, or sprinklers do not qualify for a billing credit unless a determination has been made by CPAU 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 leakage credit will 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. Such circumstances include, but are not limited to, a leak occurring while a Customer is out of town for an extended period of time. Leak credits will not be provided beyond a two 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 plumber’s repair bill material receipt or field verification by CPAU. 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, CPAU 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 CPAU’s current wholesale commodity cost plus ten percent. The sum of these two calculations represents a revised billing amount. The leak credit is the difference between the revised billing amount and the original bill. 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 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 8 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 cause. (B)Water, Gas, and!or Electric (1)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. (C)Debris Boxes (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 bhsinesses that request debris boxes during the applicable refund period. (D)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 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-9 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 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. BUDGET BILLING PAYMENT PLAN: A Budget Billing Payment Plan establishes equalized monthly payments and is available to all residential Customers who qualify as set forth below. 1.Customers may join the Budget Billing Payment Plan at any time prior to July 1, the beginning of the annual budget payment cycle, providing however, the Customer account balance is zero, and the Customer has not been removed from the budget plan for non-payment within the previous six months. o A Customer electing to utilize the plan shall agree to make monthly payments based on CPAU’s estimate of the Customer charges for the twelve-month period July 1 through the next June 30, reflecting anticipated rate changes. CPAU does not guarantee that the total actual charges will not exceed or be less than its estimate. CPAU will review the account on a periodic basis and may revise its estimate in response to changing rates or variations in the amount of service used. CPAU may require that Customers pay a revised monthly amount as a condition to continuing participation in the plan. 4.DISCONTINUANCE OF BUDGET BILLING: The budget payment plan shall remain in effect from year to year, subject to revie~ of the monthly payment amount, and shall terminate when: (A) (B) (c) The customer notifies CPAU to terminate participation in the plan; CPAU notifies the customer of the termination of its budget payment plan: The Customer no longer takes service at the premises; or CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. o 10 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 (D) (E) The Customer owes an amount of two or more monthly payments. However, if the customer eliminates the delinquency, removal from the plan will not occur. The Customer participates in Direct Access and buys from another Energy Service Provider. Upon termination of either CPAU service or participation in the budget payment plan, any amount owned by the Customer for actual charges shall immediately become due and any amount due the Customer shall be refunded as soon as possible. I.RESALE PROHIBITED: Services shall be used by Customer only for the purposes specified in the service a~eement and applicable rate schedule(s). CPAU service shall not be resold except as provided in this rule. o Premises which are receiving service in conflict with this Rule as of the effective date of this Rule may continue to receive service under such conditions if so authorized in writing by CPAU. Sub-metering shall be considered sufficient evidence that utilities are being resold, with the exception of provision 1-4 below. Property owners may bill the cost of providing utilities to individual tenants separately from rent only with consent of the Assistant Director of Utilities, Administrative Services. Charges for utilities may be allocated based upon metering, square footage, or another methodology determined to be reasonable by CPAU. Under no circumstances can the total costs of CPAU services allocated to tenants exceed the costs of CPAU services billed to the property owner by CPAU. A property owner using a billing ¯ procedure coming within the scope of this Rule must disclose all information used to determine a tenant’s utilities bill to the tenant or CPAU, or both, upon request. Property owners are responsible for resolving utility, bill disputes with their tenants. Tenants may request and receive from CPAU a copy of previous bills for a period not to exceed 12 months, charged to the property owner who sub-meters. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 11 "INTENTIONALL Y LEFT BLANK" RULE AND REGULATION 12 RULE 12 INTENTIONALLY LEFT BLANK CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 SHORTAGE OF SUPPLY AND INTERRUPTION OF DELIVERY RULE AND REGULATION 13 GENERAL: CPAU will make reasonable efforts to deliver continuous and sufficient utility service to its Customers, but CPAU does not guarantee the continuity or sufficiency of supply. CPAU will not be liable for service interruption, shortage or insufficiency of utility ¯supply, or any loss or damage occasioned thereby. INTERRUPTION OF DELIVERY: When interruptions occur, CPAU will endeavor to reestablish service with the shortest possible delay consistent with the safety of its Customers and the general public. o CPAU will have the right to suspend service temporarily for the purpose of making repairs of improvements to the system. When CPAU finds it necessary to schedule an interruption to its service, it will, where feasible, notify all Customers to be affected of the approximate time and the anticipated duration of the interruption. CPAU will endeavor to schedule interruptions at hours that will be least inconvenient to the Customers and consistent with economical utility operations. SHORTAGE OF SUPPLY: During times of threatened or actual shortage of supply, CPAU will apportion the available supply among its Customers in accordance with the Emergency Load Shedding Plans, incorporated herein by reference, on file with CPAU. With due regard for public health and safety, these plans will provide for shortages caused by insufficient supply or natural or manmade events which reduce the capacity of CPAU’s suppliers and CPAU is requested to limit the le’;’el of delivery to its Customers for some specified period of time of"until further notice." The Director of Utilities is authorized to adjust the Emergency Load Shedding plans to reflect changes in personnel, distribution systems, utility services, or other factors, when, in the opinion of the Director of Utilities such adjustments will lead to better protection of the public health and general welfare. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES ’Sheet No. -1 SHORTAGE OF SUPPLY AND INTERRUPTION OF DELIVERY RULE AND REGULATION 13 D.OVERSUPPLY OR POWER SURGES ON THE DISTRIBUTION SYSTEM Power surges may occur due to conditions beyond the control of CPAU or its Customers. CPAU will make reasonable efforts to minimize power surges occurring on the CPAU distribution system, but CPAU does not guarantee that power surges will not occur. CPAU recommends that Customers protect their connected loads and equipment from power surges. CPAU shall not be liable for any loss or damage occasioned by power surges. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. -2 EMERGENCY ENERGY USAGE RESTRICTIONS RULE AND REGULATION 14 A. GENERAL: These emergency energy usage restrictions and prohibitions have been developed to conform with similar provisions enacted by the California Public Utilities Commission for utilities throughout California. The intent of this Rule is to eliminate unnecessary and wasteful energy usage, particularly in the event of an energy crisis. The provisions in this Rule can be put into effect to alleviate an emergency situation by action of the City Manager and resolution by the City Council. B.EMERGENCY ENERGY USAGE RESTRICTIONS: FUNCTIONAL OUTDOOR LIGHTING (A)No Customer shall permit any use of electrical energy for the floodlighting of outdoor commercial areas including, but not limited to, service stations, used car lots, automobile parking lots, or similar enterprises, between the hours of sunrise and sunset. (B)Notwithstanding the provisions of subsection B. 1.(A) hereof, after sunset, when such activities are open, the use of electrical energy for such purposes shall be reduced to fifty percent (50%) of normal or usual levels. Furthermore, prohibited uses of electrical energy from the utility are not applicable to the minimum lighting necessary for public safety, or for security, or that required by law, or required for the lighting of essential government buildings utilized for police, fire protection, health, and communication purposes. 2.ADVERTISING AND DECORATIVE LIGHTING (A)Natural gas shall not at any time be caused or permitted to be used for ¯ outdoor decorative lighting, torches, flares, or any similar form of gas lighting. (B)Natural gas shall not at any time be caused or permitted to be used for indoor decorative purposes, such as artificial fireplace logs, except in such CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO" UTILITIES Sheet No. - 1 EMERGENCY ENERGY USAGE RESTRICTIONS RULE AND REGULATION 14 cases where the use of natural gas is solely for the purpose of space heating and human comfort. (c)No Customer shall during daylight hours make, cause, or permit any use of electrical energy for lighting of billboards, signs, advertising goods, objects or devices symbolic of commercial enterprises, trademarks or logos, or motors or devices to rotate or move decorative, building floodlighting, architectural or decorative lighting, or lights used for landscaping or any similar forms of lighting based upon the use of electrical energy supplied by CPAU. (D)Notwithstanding the provisions of subsections B.2.c. hereof, each business establishment may operate its time and temperature sign, window, and display lighting, and illuminate two outdoor signs during normal business hours and until one-half hour after closing or 10:30 p.m., (whichever is later), and each billboard may be illuminated between the hours of dusk and 12:00 midnight during any time of the year and two hours before daylight during the months of October through May. SWIMMING POOL HEATING (A)Natural gas shall be used for the purpose of swimming pool heating, only when the po01 temperature is maintained at the coolest temperature compatible with pool usage and one of the following conditions is met: (1)The pool is primarily used for the maintenance of health pursuant to an organized or medically directed health-oriented swimming program, including senior citizens or retirement community swimming program. (2) (3) The pool is covered when not used for swimming The primary source of heat is a solar heater with a standby natural gas heater. COMFORT HEATING AND COOLING CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-2 EMERGENCY ENERGY USAGE ’RESTRICTIONS RULE AND REGULATION 14 (A) (B) (c) (E) (E) During business hours, no Customer shall permit an3’ use of electrical energy in any commercial or industrial establishment to provide cooling to reduce the temperature therein below 78°F except for medical reasons and where other temperatures are required by law. Natural gas and electrical energy used by all hotel, motel, and similar guest ¯ accommodation establishments and restaurants should not be used to heat or cool vacant guest rooms. Occupied rooms shall not be cooled below 78°F. No Customer shall make, cause, or permit any use of electrical energy for the cooling of residences, apartments, or condominiums below 78°F except for medical reasons and where other temperatures are required by law. During periods of electrical supply shortages and upon notification by CPAU of such shortage, all Customers will upon direction of CPAU either advance the temperature setting of air conditioning equipment to 85°F, or turn offthe air conditioning equipment as requested by CPAU (except for buildings where this action would close off air ventilation). No Customer shall operate air conditioning equipment in unoccupied buildings or rooms or buildings below 85°F during normal periods and will turn off such air conditioning equipment when notified by CPAU of the existence of an electrical supply shortage. OUTDOOR PUBLIC GATHERINGS (A)No Customer shall make, cause, or permit the use of electrical energy for recreational or cultural activities in excess of eighty-five percent (85%) of the normal or usual amount used by that Customer for the same or similar activities. (B)Natural gas shall not be caused or permitted to be used for recreational or cultural activities without a reasonable reduction of the normal or usual amount used by that Customer for the same or similar activities. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 EMERGENCY ENERGY USAGE RESTRICTIONS RULE AND REGULATION 14 INDOOR BUSINESS LIGHTING (A)No Customer shall make, cause, or permit the use of electrical energy for lighting the interior of any business establishment during that period of time that said establishment is not carrying on the usual and customary activities of that business. (B)Notwithstanding the provisions of subsection B.6.a hereof, a business establishment may provide sufficient illumination at all times to provide a minimal level of protection and security to persons and property. (c)Nothing in these subsections shall be construed to prohibit ordinary and customary maintenance and janitorial services at times other than those during which the business establishment is carrying on the usual and customary activities of that business. INDOOR BUSINESS HEATING (A)Natural gas shall not be caused or permitted to be used for heating the interior of any business establishment during that period of time that said establishment is not carrying on the usual and customary activities of that business. (B)Notwithstanding the provisions of subsection B.7.(a) hereof, a business establishment may provide sufficient heating at all times to provide a minimum level required to prevent pipe freezing or other damage. (c)Nothing in these subsections shall be construed to hinder to prohibit ordinary and customary maintenance and janitorial service at times other than those during which the business establishment is carrying on the usual anal customary activities of that business. NOTIFICATION: CPAU shall notify its Customers in the event Council action is taken to activate these emergency energy usage restrictions. Furthermore, whenever CPAU has learned of a use CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 EMERGENCY ENERGY USAGE RESTRICTIONS RULE AND REGULATION 14 or manner of use prohibited by Section B., CPAU shall notify the Customer or a representative in writing to comply with the provisions of this Rule and to discontinue any prohibited u.se or uses. Unless theCustomer complies and discontinues such use, Section D shall- apply. D.NONCOMPLIANCE: If, upon expiration of five (5) days after the notice provided in Section C, the Customer has not initiated compliance with this Rule, CPAU shall consider the noncompliance a violation of this Rule. A violation of this Rule may result in discontinuance of service by CPAU. Service will be restored after the Customer establishes, to the satisfaction of CPAU, compliance with this Rule. Fo PROCEDURE AND APPLICATION FOR RELIEF FROM RULE: Within five (5) days of the notice provided in Section C, or anytime prior to instituting any use which does not comply with this Rule, Customers of CPAU may apply in writing to the Assistant Director of Utilities, Engineering (Assistant Director) for relief from the prohibition or curtailment of certain end uses of electricity or gas as provided in this Rule. Such relief may be granted by the Assistant Director unconditionally, or upon terms and conditions determined by the Assistant Director to be appropriate under the circumstances and reasonably consistent, to the extent practicable, with the purposes of this Rule. During the period the application is pending, CPAU shall not terminate service for noncompliance with this Rule. If no application is made after the notice provided in Section D, or, if the Assistant Director is not satisfied that grounds for relief have been established by the Customer, service establishes to the satisfaction of City, compliance, or ability to comply, with this Rule. LIABILITY OF CPAU: CPAU shall not, by taking action pursuant to this Rule, be liable for any loss, damage, or injury, established or alleged, which may result or claimed to result therefrom. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-5 METERING RULE AND REGULATION 15 OWNERSHIP AND RESPONSIBILITY OF METERING EQUIPMENT: CPAU shall furnish, own and maintain all meters., instrument transformers, phase shifting transformers, test switches, and connecting circuitry necessary for measuring electricity used by the Customer. CPAU may, at its option, meter delivery to Primary Service Customers at Secondary Service voltage, and apply an adjustment factor to compensate. An accurate record shall be kept by CPAU, or its designated Meter Data Management Agent, of all meter readings and such record shall be the basis for determination of any bill rendered for service. Should any meter fail to register correctly the amount of electricity used by the Customer, the amount of such use will be estimated by CPAU from the best available information. METER INSTALLATIONS: 1.LOCATION All meters will be installed by CPAU at a convenient place upon the Applicant’s premises approved by CPAU, normally not above, ground - floor level, and so placed as to be at all times accessible for inspection, reading and testing. (B)The Customer shall, at the Customers’ own expense, provide a new and approved location for the meter or meters in order to comply with the foregoing whenever the existing meter or meters become inaccessible for inspection, reading, or testing by reason of any changes made by the owner or tenant of the premises. MUL~TIPLE-occUPANCY BUILDINGS (A)In all buildings in ~vhich meters are required to be installed for various floors or groups or rooms in order to measure separately the electrical energy supplied to each of several Customers, all meters will be located at CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 METERING RULE AND REGULATION 15 one central point or as otherwise specified by CPAU. Each meter position shall be clearly marked by the building owner to indicate the particular location supplied by it. (B)In buildings which are divided into two or more stores or other commercial premises, meters may be installed in the separate premises provided no adjacent alleyway, common basement or other location accessible to all the tenants and suitable for the installation of a group of meters exists. In such buildings, all wiring from CPAU’s Point of Delivery to the individual meters shall conform to CPAU Building Department requirements. 3.SEALING OF METERS All CPAU meters will be sealed by CPAU and no such seal shall be tampered with or broken except by an authorized representative of CPAU. 4.ELECTRIC DEMAND METERS Generally, demand meters shall not be installed on loads with an estimated Maximum Demand less than six (6) or eight (8) kW or eight (8) horsepower(hp). Demands of such lesser loads shall be determined by a load check. 5.ADDITIONAL METERING CPAU may, at its discretion and at its cost, install additional metering for system quality control purposes. C.METER TESTS: Any Customer may secure a test of the accuracy of the meter serving the Customer’s premises. Prior to the test, the Customer will be required to make a deposit with CPAU as specified in CPAU Rate Schedule C-1. The deposit will be returned to the Customer if the meter is found by test to register more than two percent (2%) faster under conditions of normal operation. Otherwise, the deposit CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-2 METERING RI ILE ANrD REGULATION 15 will be retained by CPAU to offset a portion of the cost of making such test. The Customer has the fight to require that the test be made in their presence, or a representative’s presence at the meter shop. A written report giving the result of the test will be supplied to the Customer upon request within ten (10) days of the test. Meters will be tested before their installation, except that in the case of newly purchased single phase electric meters, the manufacturer’s test may be used as the installation test when CPAU’s random test indicate satisfactory test conditions for a particular manufacturer and a particular shipment. No meter will be placed in service or allowed to remain in service if it is found to have an error in registration in excess of two percent (2%) under condition of normal operation. D. MASTER METERING: Separate premises, even though owned by the same Customer, will not be supplied water, gas, and/or electric through the same meter (i.e. master meter,), except as provided herein. 1.RESIDENTIAL Customers for which water, gas, and electric master- metering was installed prior to December 31, 1982, may continue to obtain service at a single Point of Delivery through a single metering installation for two or more single-family dwelling units in the same building or for two or more multi-family dwelling buildings, provided such buildings are adjacent to each other on an integral parcel of land undivided by a public highway, street, or railway. Requests for master- metered multi-f~imily residential service subsequent to December 31, 1982£ will be evaluated and approved if central space conditioning is acceptable to CPAU. Developments with such central systems will continue to qualify for master metering. NONKESIDENTIAL CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 METERING RULE AND REGULATION 15 CPAU need not serve premises directly, but shall provide master-metered gas service, where any of the following conditions are met: (A)The building will contain central heating, air conditioning, or central domestic hot water and can be shown (using accepted methods of calculation) to be more energy efficient and at a more favorable cost- benefit ratio than would be the case if individual metering were installed. (B)The building is designed to be subdivided or modified after construction to meet changing space needs of a number of tenants.. 3.SEPARATE METERING IMPRACTICAL Where, in the sole opinion of CPAU,~it is impractical for CPAU to meter individually each premise or space, CPAU may meter only those premises or spaces that it is practical to meter, if any. 4.ESTABLISHING EXCEPTION The owner of the building shall bear the burden of proof in establishing an exception for any of the above reasons. E.TOTALIZING METERING: Totalizing though a single electric meter of the electricity delivered by two or more separate services will be considered if a Customer is served at primary voltage, has an estimated or actual load in excess of 3,000 kVa, and all services serve a contiguous site. Any exception to this provision must be explicitly addressed by a rate schedule or Customer Contract (Rule 5). (END) CITY OF PALO :ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 ELECTRIC: LINE EXTENSIONS RULE AND REGULATION 16 1.GENERAL CPAU will extend its electric system along public roads and streets, and upon private property across which satisfactory easements or rights of way have been obtained. The Applicant will be required to pay for obtaining an easement or right-of-way to serve a particular subdivision or Customer. SYSTEM EXTENSION WITHIN THE BOUNDARIES OF A SUBDIVISION OR OTHER DEVELOPMENT (A) (B) (0 CONSTRUCTION BY APPLICANT The Applicant shall provide, at no cost to CPAU and in accordance with CPAU standards and specifications, all trenching, backfill, resurfacing, landscaping, conduit, junction boxes, vaults, equipment pads, and subsurface housing required for power distribution within the development. Upon acceptance by CPAU, the Applicant will transfer ownership of such facilities to CPAU. CONSTRUCTION BY CPAU After acceptance of the facilities provided by the Applicant, CPAU will furnish and install all cables, switches, and other equipment required for the system extension. As used herein, the term "cable" may, at the option of CPAU, include preassembled cable-in-conduit or direct-buried cable. CONNECTION CHARGES Charges for connection to the system will be detailed in CPAU’s Electric ¯ Service Connection Fees (Rate Schedule E-15), with full credit allowed for any over sizing or extra facilities required by CPAU in order to provide service for areas beyond the boundaries of the development. Such credit will be computed on the basis of CPAU’s cost for the materials involved. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-1 LINE EXTENSIONS RULE AND REGULATION 16 SYSTEM EXTENSION OR REINFORCEMENT OUTSIDE THE BOUNDARIES OF A SUBDIVISION OR OTHER DEVELOPMENT (A) (B) (c) CONSTRUCTION BY CPAU CPAU or its contractor will construct the necessary underground facilities to deliver electric power to the development site. Connection to these facilities will be subject to charges in accordance with CPAU’s Electric Service Connection Fees (Rate Schedule E-15). CONSTRUCTION BY APPLICANT Where mutually agreed upon by CPAU and the Applicant, all or part of the required system extension may be constructed by the Applicant in accordance with the standards and specifications of CPAU. TEMPORARY OVERHEAD CONSTRUCTION Based on a finding by the Electrical Engineering Manager, under Chapter 12.16, Underground Utilities, and/or Chapter 21.24, Subdivisions, of the Palo Alto Municipal Code, that underground facilities are not feasible, temporary pole lines may be constructed by CPAU to provide electric power to a subdivision or other development until permanent underground facilities are established. Reasons for such a finding may include, but not be limited to: (]) (2) (3) (4) Remoteness of new development; Uncertainty as to possible road widening or realignment; Uncertainty as to probable development patterns; and Insufficient area development to warrant the expense of an underground system. .The overhead lines will be replaced by an underground system when replacement is determined to be practicable by the Electrical Engineering Manager. All Applicants served from temporary over-head lines will be subject to charges in accordance with applicable CPAU Rate Schedules. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 LINE EXTENSIONS RULE AND REGULATION 16 WATER, GAS AND WASTEWATER: 1.GENERAL CPAU will construct, at the developer’s expense, or require developers, at their own expense, to construct to CPAU standards, water and gas distribution main extensions or wastewater collection system extensions in areas which cannot be served from existing CPAU systems. These mains extensions will only be constructed along public roads and highways, and upon public lands and private property across which satisfactory easements or rights-of-way have been obtained by the developer at the developer’s expense. The legal descriptions of all necessary easements or rights-of-way to serve a particular subdivision, development or Customer shall be prepared by the developer’s engineer at the developer’s expense. CPAU shall review the system calculations and plans prepared by the developer’s engineer and make the final determination regarding the adequacy of the existing distribution and collection systems to provide service to the development and determine the final type, size and location of all required main extensions or other required facilities. The determination so made by the Engineering Manager, Water, Gas, Wastewater shall be final. The total design and construction costs associated with all of the required main extensions and facilities for the development shall be paid by the developer. SYSTEM EXTENSIONS WITHIN THE BOUNDARIES OF A SUBDIVISION OR OTHER DEVELOPMENT (A)WATER The developer shall provide and install, at no cost to CPAU and in accordance with CPAU standards and specifications, all facilities and equipment required for water distribution within the development. CPAU will reimburse the Applicant for any over-sizing or extra facilities required .by CPAU in order to provide service for areas beyond the boundaries of the development. Such reimbursement will be computed on the basis of only the developer’s cost for pipe material involved in the over-sizing. (B) GAS CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 LINE EXTENSIONS o RULE AND REGULATION 16 CPAU shall provide and install, at the developer’s expense, all facilities and equipment required for gas distribution within the development. Charges for connection to the system will be as detailed in CPAU’s Gas Service Connection Fees ( Rate Schedule G-15) with credit allowed for any over-sizing or extra facilities required by CPAU in order to provide service for areas beyond the boundaries of the development. Such credit will be computed solely on the basis of CPAU’s cost for the pipe material involved in over-sizing. (C)WASTEWATER The developer shall provide and install, at no cost to CPAU and in accordance with CPAU standards and specifications, all facilities and equipment required for wastewater collection within the development. CPAU will reimburse the Applicant for any over-sizing or extra facilities larger than the City’s standard size required by CPAU in order to provide wastewater collection service through the developer’s property for areas beyond the boundaries of the development. Such reimbursement will be computed on the basis of only the developer’s cost for the pipe material involved in the over-sizing. SYSTEM EXTENSIONS OR REINFORCEMENT OUTSIDE THE BOUNDARIES OF A SUBDIVISION OR OTHER DEVELOPMENT (A)CONSTRUCTION BY CPAU CPAU or its contractors will construct the necessary facilities to deliver water and gas to the development site or to collect waste~vater from the site, and connection to these facilities will be subject to charges in accordance with CPAU’s Connection Fees (Water Rate Schedule W-5, Gas Rate Schedule G-5, and Wastewater Collection Rate Schedule S-5.) (B).CONSTRUCTION BY APPLICANT When mutually a~eed upon by CPAU and the Applicant, all or part of the required ~vater, gas, and waste~vater system extensions may be constructed by the Applicant in accordance with the standards and specifications of CPAU. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-4 CONVERSION TO UNDERGROUND POLICY AND PRIORITIES: RULE AND REGULATION 17 CPAU will replace existing overhead electric distribution facilities with underground facilities due to system operational considerations, or upon application of an individual or group of individuals, and/or at the direction of the City Council, subject to budgetary considerations, the primary schedule listed below, and minimum project size specified in the applicable section of this Rule. The extent of CPAU’s financial participation in a conversion project will depend on whether the locale of the project is designated by the-City Council as an area of general public interest and benefit, or an area of primary local public benefit, or whether the area fails to qualify for either of the foregoing designations. Underground conversion in areas of general and local public benefit will be considered in accordance with the following order of priorities and classification of areas according to, "Four Classes of Need For Underground utilities Distribution." First Priority will be given to overhead CPAU lines along streets, roads, or rights- of-way on which major new roadway construction or realignment will take place. Second priority will be given to overhead CPAU lines along rights -of-way through the interior of blocks which have heavy tree foliage where poles have deteriorated to the point where replacement is necessary and undergrounding is an economic alternative to pole replacement. Third priority will be given to overhead CPAU lines along streets, roads, or fights- of-way in areas zoned commercial, light industrial, and limited manufacturing where load growth requires major overhead reconstruction and undergrounding is an economical alternative. Fourth priority Will be given to overhead CPAU lines which are hidden or partially hidden by surrounding tree foliage along streets, roads, or fights-of-way where poles have deteriorated to the point where replacement is necessary and under-grounding is an economic alternative to pole replacement. Fifth priority will be given to overhead utility lines which are constructed along a CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 CONVERSION TO UNDERGROUND lo RI ILE AND REGULATION 17 major arterial where poles have deteriorated to the point where replacement is necessary and under-grounding is an economic alternative to pole replacement. Sixth priority will be given to overhead utility lines xvhich are constructed along streets, roads, or fights-of-way in areas zoned residential. The priority schedule shall not be construed to be flexible. Overhead utility lines located in streets, roads, or fights-of-way in areas classified as areas of less need of pole replacement may be included for engineering and operating reasons in an underground utility district. IN AREAS OF GENERAL PUBLIC INTEREST AND BENEFIT: CPAU will replace its existing overhead distribution lines with electric underground distribution facilities at CPAU’s expense along public streets and roads, on public lands, and on private property across which satisfactory easement or rights-of-way have been obtained or may be obtained without cost or condemnation by the City provided that: The Project extends a minimum distance of two City blocks or 750 feet. The City Council has: (A)Determined that such under-grounding is in the general public interest. Included among the reasons for such determination may be: Such under-grounding will avoid or eliminate an unusually heavy concentration of overhead distribution facilities or the construction of an existing pole line to accommodate additional overhead circuits. (2)Said street or road or right-of-way is extensively used by the general public and carries a heavy volume of vehicular traffic. .(3)Said street or road or right-of-way adjoins or passes through a civic or public recreation area or an area of scenic interest to the general public. (B)Adopted an ordinance creating an underground district in accordance with the applicable sections of Chapter 12.16, Underground Utilities, of the CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-2 CONVERSION TO UNDERGROUND RULE AND REGULATION 17 Palo Alto Municipal Code, which provides among other things: (1)That all existing overhead communication and electric distribution facilities in such district shall be removed. Co (2) (3) That each property owner served from such overhead distribution facilities shall provide, within a period of time established by the City Council and at the property owner’s expense and in accordance with CPAU applicable Rules and Regulations and schedule of charges for underground service connections, all electrical service facility construction and charges on his premises necessary to receive service from the underground distribution facilities after they are completed and in operation. CPAU is authorized to discontinue overhead services after the period of time established by City Council for reconnection to the underground distribution facilities has expired. IN AREAS PRIMARILY OF LOCAL PUBLIC BENEFIT: CPAU will replace its existing overhead distribution facilities with underground distribution facilities along public streets, roads, or other locations mutually agreed upon when requested by a group of Applicants or an authorized representative of a group of Applicants, provided that: 1.The project includes at least one block to 600 feet. 2.The City of Palo Alto City Council has: (A)Determined that such undergrounding is in the general public interest, but primarily of local benefit. .(B)Adopted an ordinance creating an underground district in accordance with the applicable sections of Chapter 12.16, Underground Utilities, of the Palo Alto Municipal Code, which provides among other things: (1)That all existing overhead communication and electric CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 CONVERSION TO UNDERGROUND RULE AND REGI ;LATION 17 distribution facilities in such district shall be removed. (2)That each property owner served from such overhead distribution facilities shall provide, within a period of time established by the City Council and at the property owner’s expense and in accordance with the CPAU applicable Rules and Regulations and schedule of charges for underground service connections, all electrical service facility construction and charges on his premises necessary to receive service from the underground distribution facilities after they are completed and in operations. (3)That CPAU is authorized to discontinue overhead service after the period of time established by the City Council for reconnection to the underground distribution facilities has expired. o The Applicant or group of Applicants pays 50 percent of the total costs, exclusive or transformers and associated equipment, for the replacement of the overhead distribution lines with underground distribution facilities in the public right-of- way or easement. CPAU will pay 50 percent of said costs and will provide the transformers and associated equipment. Where the street-lighting system in areas to be under-grounded is mounted on overhead poles to be removed, the street- lighting facilities shall be replaced in accordance with the standards and requirements of CPAU, and the cost shall be included in the total costs. IN AREAS OF INSUFFICIENT PUBLIC BENEFIT TO QUALIFY UNDER SECTION B OR SECTION C: When mutually agreed upon by the Director of Utilities and an Applicant, overhead distribution may be replaced with underground distribution facilities provided that: The Applicant requesting the change enters into an agreement with CPAU to pay, in advance, a non-refundable sum not less than 75 percent of the estimated total cost of the replacement of overhead distribution lines with underground distribution facilities, in the public right-of-way or easement, exclusive of transformers and associated equipment. The share borne by CPAU shall be determined by the Electrical Engineering Manager on his or her calculation of the CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 CONVERSIONTOUNDERGROUND RULE AND REGULATION 17 benefit to CPAU. Each property owner served from such overhead distribution facilities shall agree to provide at his or her own expense, within a period of time established by CPAU, all electrical service facility construction and changes on his or her premises necessary to receive service from the underground distribution facilities when they are completed and in operation. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-5 ELECTRICAL SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER’S PREMISES RULE AND REGULATION 18 SERVICE CONNECTIONS: Upon an accepted application for service, CPAU will connect a service lateral of suitable capacity to the CPAU distribution system at a service point designated by CPAU, provided that: The Electrical Engineering Manager has approved the switchboard design and location and the building Inspector has issued a Certificate of Approval authorizing the Customer to energize this equipment. The property fronts on a public street, highway, alley, lane, or right-of-way along which CPAU has or will install distribution facilities; or the property has a contiguous easement or right-of-way along which CPAU has or will install distribution facilities. ° ° The Applicant has paid all required connection charges as set forth in CPAU’s Electric Service Connection Fees (Rate Schedule E-15). The Applicant has satisfied one of the following requirements: (A)Furnished and installed as required the pads and vaults for transformers and associated equipment, conductors, conduits, ducts, boxes, pole risers, and performed all other work related to structures and substructures, including breaking of pavement, trenching, back-filling, and repairing, required for the installation of the electrical service connection from the Applicant’s service entrance equipment to the designated service point, all in accordance with the requirements, standards, and specifications of CPAU. (B).Fulfilled all the conditions listed in above paragraph A.4 (A) except installation of primary service conductors, and has requested that CPAU install same in accordance with the applicable sections of CPAU’s Electric Service Connection Fees (Rate Schedule E-15). CPAU will determine the type and size of the conductors to be installed by CPAU. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 ELECTRICAL SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER’S PREMISES RULE AND REGULATION 18 B.OWNERSHIP AND RESPONSIBILITY FOR SERVICE LATERALS: 1.General (A)All materials and equipment installed by CPAU on the Customer’s premises in the construction or operation of electric service will at all times be and remain the sole property of CPAU and may be repaired, replaced, or removed by CPAU at any time. (B)CPAU will assume ownership and responsibility for maintenance of the underground electric service lateral conductors, as defined in the National Electric Code Article 100, installed by the Customer if the service meets CPAU specifications and it has been approved and accepted by the Electrical Engineering Manager or his designated representative. Where bus duct is required and used, CPAU considers the point-of-connection to be the transformer secondary terminals, the bus duct is considered to be the service entrance conductors and CPAU assumes no responsibility for the bus duct. (c) (D) The Customer shall exercise reasonable care to prevent CPAU equipment on the Customer’s premises from being damaged or destroyed and shall refrain from interfering with same. The Customer shall immediately notify CPAU upon the discovei-y of any defect in CPAU equipment. No rent or other charge whatsoever shall be made by the Customer against CPAU for placing or maintaining any necessary electrical facilities on the Customer’s Premises. 2.Miscellaneous Service Equipment (A). Equipment Fumished by Applicant (1)All service switches, fuses, meter sockets, meter and instrument transformer housing and similar devices, irrespective of voltage, required in connection with service and meter installation on the Applicant’s premises will be furnished, installed, owned and CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 ELECTRICAL SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER’S PREMISES RULE AND REGULATION 18 (2) maintained by the Customer in accordance with CPAU requirements. The "service disconnect means", .as defined by the National Electric Code. Do (3)Applicant will provide a suitable means for CPAU to place its seal on covers of service cans, service troughs and instrument transformer enclosures which protect unmetered hot circuits installed by the Applicant. Such seals shall be broken only by authorized CPAU representatives. Detailed information will be furnished by CPAU on request. (B) Equipment Furnished by CPAU (1)CPAU will furnish and install the necessary instrument transformers, test facilities and meters. SERVICE CONNECTION MADE BY CPAU EMPLOYEES: Only duly authorized employees of CPAU shall be allowed to connect the Customer’s service to, or disconnect the service from, the CPAU distribution system. CPAU SERVICES: All new electric utility services to Commercial/Industrial Customers and new subdivisions shall be provided by underground facilities on the Customer’s Premises. Standard service to single family residential homes in existing overhead areas shall be overhead. The Director of Utilities or his designee can re~luire an underground service for single family residential service in ,areas where system design requires underground service or the addition of poles to the system. The on-site underground electric utility lines shall be provided by the Customer at their expense and shall meet CPAU specifications. 2.Number of Services Per Building CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 ELECTRICAL SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER’S PREMISES RULE AND REGULATION 18 Only one service drop or lateral may be extended to a building or other premises to be served, except for commercial properties where: (A) Two or more service drops or laterals may be extended to a single building or premises provided they enter the building or other structure at points at least 150 feet apart (measured in a straight line) and provided all wiring, other than control metering conductors, supplied by each service has no common raceway, connection, or service area with wiring supplied by any other such service. o (B)Two or more sets of service entrance conductors may be extended to a single switch gear for the purpose of providing additional capacity or backup protection. Number of Service Periscopes Per Service Drop Not more than two service periscopes may be served from a single overhead service drop. Overhead service connections will not be installed where the Applicants main switchboard is larger than 400 amp. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-4 DIRECT ACCESS RULE AND REGULATION 19 A. GENERAL: This Rule and Regulation sets forth the terms and conditions under which the City of Palo Alto Utilities (CPAU) shall render Distribution and Transmission Services to Customers who elect to be served under Direct Access through the applicable CPAU Direct Access electric service rate schedule. Direct Access shall refer to the election by a Customer to procure their electricity, and related energy services, from an Energy Service Provider (ESP) other than CPAU. CPAU shall apply eligibility and selection criteria to qualify participants in Direct Access, pursuant to its adopted Direct Access Implementation Plan, as it may be amended from time to time. All defined terms are identified in this Rule by capitalization of the first letters, as described in Rule and Regulation 2, or as otherwise defined herein. 1.CUSTOMER RESPONSIBILITIES The Direct Access Customer (DA Customer), or its assigned ESP, assumes the responsibilities for procuring electric Energy Services and for the transmission of such purchases to the Points of Receipt designated by CPAU. CPAU is fully and completely discharged from these responsibilities; the DA Customer’s ESP must carry out these responsibilities. 2.CPAU RESPONSIBILITIES CPAU shall be responsible for providing Distribution and applicable Transmission Services for the DA Customer’s procured energy from the designated Points of Receipt to the DA Customer’s service address(s). In addition, CPAU will provide standby power as provided in CPAU’s Electric Standby Service Rate Schedule E-13. 3.LIABILITY IN CONNECTION WITH ESP SERVICES (A)If the ESP defaults on its electric supply obligations to a DA Customer, and as a result of this default, CPAU purchases and CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-1 DIRECT ACCESS RULE AND REGULATION 19 supplies energy to the DA Customer, the Customer shall be liable for payment to CPAU for such energy. (B) (0 CPAU shall not be liable to the Customer and ESP for any damages. caused by CPAU’s conduct in compliance with, or as permitted by, CPAU’s rules, regulations, rate schedules, and associated legal and regulatory requirements related to DA Service. Damages in this section shall include losses, harm, costs, opportunities lost, and detriment, both direct and consequential, suffered by the Customer. CPAU shall not be liable to the Customer for an3" damages caused to the Customer by any failure by an ESP to comply with CPAU’s rules, regulations, rate schedules, and associated legal and regulatory requirements related to DA Service. (D) (E) CPAU shall not be liable to the Customer for any damages caused by an ESP’s failure to perform any commitment to the Customer, including, but not limited to the obligation to provide Energy Services to the Customer. The ESP shall not be liable to the Customer for any damages caused by CPAU’S failure to perform any commitment to the Customer. An ESP is not CPAU’s agent for any purpose. CPAU shall not be liable to the Customer for any damages resulting from any acts, omissions, or representations made by an ESP in connection with soliciting Customers for DA Service or performing any of its functions in rendering DA Service. (F)CPAU is not the ESP’s agent for any purpose. The ESP shall not be liable to the, Customer for any damages resulting from any acts, omissions, or representations made by CPAU in connection with soliciting Customers for DA Service or performing any of its functions in rendering DA Service. RATES AND FEES FOR DIRECT ACCESS CPAU service rates and fees for Direct Access are found under the applicable Direct Access electric service rate schedule. The applicable rates shall apply to CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 DIRECT ACCESS RULE AND REGULATION 19 each Account participating in Direct Access. Unless otherwise provided in the applicable rate schedule or contract, CPAU will not aggregate distribution services for individual accounts for purposes of billing under the applicable Direct Access rate schedule. Separate rates for Standby Power service are found under the applicable CPAU Standby Power service rate schedule. These charges compensate CPAU for non-standard variances in power scheduling or for ESP’s .nonperformance of its contractual obligations related to provision of Energy Services. 5.DIRECT ACCESS DATES AND TERM Direct Access service shall begin on the service date indicated on the DASR, as solely determined by CPAU, and subject to activation of required agreements, installation of DA Metering and other applicable requirements for Direct Access. Direct Access service shall be provided for no less than 1 year from the Initial Service Date, subject to suspension and termination conditions. B.DIRECT ACCESS CUSTOMER REQUIREMENTS: To participate in Direct Access, the DA Customer shall initiate and implement the - agreements, equipment installations and other prerequisites necessary to effect Direct Access. The requirements are: 1.DASR SUBMISSION (A)The DASR shall undergo a review and verification process by CPAU. Upon CPAU’s acceptance of the DASR, the DA Customer shallinitiate and implement remaining requirements for Direct Access. (B)Contract for Energy Services - The DA Customer shall enter into an agreement with its ESP for procurement of Energy Services for the Load(s) ~elected for Direct Access, effective on the Initial Service Date for Direct Access. CPAU shall not be a party to this agreement. 2.DA METERING REQUIREMENTS (A) Account Load of 50 kW or More - Upon DASR approval, CPAU shall CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-3 (B) (c) DIRECT ACCESS RULE ANrD REGULATION 19 provide and install DA Metering, at DA Customer’s expense, for any Account which lacks appropriate metering equipment and records a maximum demand equal to or greater than 50 kW or, absent demand metering capabilities and records, for any Account that records a maximum monthly usage of greater than or equal to 12,000 kilowatt-hours (kWh) at any time during the past 12 consecutive monthly Billing Periods. At its option, CPAU may adopt or apply exemptions to this requirement. Account Load less than 50 kW - In lieu of installing DA Metering, Load Profiling may be used, based on a methodology adopted by CPAU, for any Account that records a maximum demand of less than 50 kW or, absent demand metering capabilities or records, for any Account that records a maximum monthly usage of less than 12,000 kWh in each Billing Period during the past 12 consecutive monthly Billing Periods. DA Customer may still request CPAU to provide and install DA Metering at its expense for such Accounts. Meter Installation - Metering for Direct Access service, if needed, shall be provided and installed by CPAU, at DA Customer’s expense, within a reasonable period after DASR acceptance, subject to availability of resources including equipment and installers. CPAU shall notify the DA Customer if meter installation cannot be performed within a reasonable period. The DA Customer shall install, at its expense, a communications line to the meter as needed. (D) (E) Whole Meter Service - Direct Access service is applicable for 100 percent of the load served by individual single meters. Individual single meter loads may not be split between different ESPs. Master-Metered Customers - Individual master-metered Customers, i.e., multi-family residential dwellings and mobile home parks, who provide sub-metered tenant billings may participate in Direct Access as a single ¯ account. A master-metered Customer may not partition the electric loads of a single master meter to receive Direct Access Service and Full Service for one metered service; thus, the entire load of a single master meter must receive service under one electric service rate schedule. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No,-4 DIRECT ACCESS RI JLE AND REGULATION 19 Load Aggregation - Two or more DA Customers may jointly submit for Aggregation by an ESP only the Loads of individual, single Meters that have been selected for Direct Access. CPAU requirements for rate schedule eligibility, metering, billing and Distribution and Transmission Services apply to each individual DA Customer Account, not to the jointly aggregated Load. C. CUSTOMER INFORMATION: CPAU shall provide Customer-specified usage reports to parties specified by the DA Customer, subject to the following provisions: 1.STANDARD USAGE REPORT The standard usage report shall include Customer Name Service Address, Account Number, Meter number, SIC Code, past 12 months of Account usage and billing history, and any other Customer-specific information as solely determined by CPAU.Account Number, Meter number, SIC Code, past 12 months of Account usage and billing history, and any other Customer-specific information as solely determined by CPAU. WRITTEN AUTHORIZATION The inquiring party must have written authorization from the DA Customer to release such information to the inquiring party. At the DA Customer’s request, this authorization may also indicate if Customer reports may be released to other parties as specified by the DA Customer. RELEASE OF INFORMATION D.CPAU Upon DA Customer authorization, CPAU shall provide a standard usage report to parties authorized by the DA Customer, up to twice per year at no charge. Thereatter and for any additional standard or non-standard reports provided to authorized parties, CPAU reserves the right to charge service fees, pursuant to applicable municipal fee and rate schedules. DISTRIBUTION AND TRANSMISSION SERVICES: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 5 DIRECT ACCESS RULE AND REGULATION 19 At all times during the term of Direct Access service to a Customer, CPAU shall be responsible for providing Distribution and, when requested by the customer, Transmission Services for DA Customers. Transmission Service and associated charges are subject to changeto reflect modifications, revisions or terminations of CPAU’s contractual agreements and rights or any other changed circumstances. These Distribution and Transmission Services shall consist of the following: 1.DELIVERY OF ESP-SUPPLIED ENERGY CPAU shall be responsible for transmitting the DA Customer’s ESP-supplied electric energy from the Points of Receipt to the DA Customer’s Service Address(e’s) using its contractual fights and physical distribution system and according to terms and conditions specified in CPAU’s Direct Access Service Provider Agreement (DASPA) with the ESP. 2.DISTRIBUTION SERVICE (A) (B) Distribution Facilities - CPAU shall be responsible for specifying, procuring, installing, maintaining and testing CPAU-owned equipment and facilities within the Service Territory that are used in providing Distribution Services, including but not limited to transformers, utility poles and lines, and metering equipment. Inquiries - CPAU shall be responsible for responding to all inquiries related to physical service, emergency system conditions, outages and -safety. (c)Contractual Transmission Services - When applicable, CPAU Shall use its contractual rights to transmission pursuant to its Interconnection Agreement with PG&E, its participation a~eement with the Transmission Agency of Northern California and any other transmission rights as CPAU may acqtfire from time to time to deliver services requested by DA customers. CPAU reserves the right to modify, amend or terminate any of its contractual rights at its sole discretion. Any amendments or termination of CPAU’s existing transmission agreements may necessitate modifications to Direct Access service and the DASPA. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-6 DIRECT ACCESS RULE AND REGULATION 19 ° E.CPAU METERING, METER READING AND BILLING SERVICES: 1.METERING RESPONSIBILITIES CPAU retains the responsibility for specifying, procuring, installing, reading, maintaining and testing all DA Metering installed on its Distribution System, following CPAU’s applicable standards, practices, rules and regulations as they may be amended from time to time. CPAU may select a subcontractor such as a "Meter Data Management Agent" (MDMA) to perform any or all functions related to meter management. 2.METERING EQUIPMENT OWNERSHIP CPAU retains sole title to all DA Metering installed on its Distribution system. 3.ALTERNATE METERING DA Customer may install their own metering equipment on its own facilities and shall have sole responsibility for specifying, procuring, installing, maintaining and testing such meters and for ensuring that such meters do not interfere with the operation of CPAU’s DA Metering. The DA Customer retains title to its own metering equipment. CPAU retains the right to access, inspect, test or read such meters to ensure that they do not interfere with the operation of CPAU’s DA Metering. 4.COST OF METERING The charges for obtaining and installing DA Metering are addressed in the applicable CPAU Direct Access electric service rate schedule or contract. 5.APPLICABLE RULES CPAU.’s applicable rules and regulations on meter reading, unauthorized energy use and preparation of bills will continue to apply with the additional provisions as provided in this section. 6.READING INTERVALS CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-7 DIRECT ACCESS RULE AND REGULATION 19 DA Metering shall provide the DA Customer’s electric demand and usage data at 15-minute intervals, or other reading interval determined by CPAU. BILLING DATA o Billing data, based on meter reads, shall be made available to CPAU, ESP, and Schedule Coordinator billing systems through electronic data transfer, verification and communication methodologies and protocols adopted by CPAU. PREPARATION OF BILLS CPAU may use the reading obtained on the last regular reading day of each monthly Billing Period to determine the bill for applicable Distribution and Transmission Services for that Billing Period. BILLING SERVICES 10. CPAU shall be responsible for billing, collecting and responding to inquiries or disputes from DA Customers for charges and any applicable taxes or surcharges related to Distribution and Transmission Services rendered. DA Customers must refer to their ESP for billing services related to Energy Services rendered. DA CUSTOMER PAYMENT RESPONSIBILITIES The DA Customer is ultimately and solely responsible for the payment of applicable charges for services rendered under Direct Access, including but not limited to CPAU’s Distribution and Transmission Service charges, their ESP’s Energy Service charges, and state and local surcharges and taxes applicable to all services rendered. Such surcharges and taxes include, but are not limited to, CPAU’s Public Benefits and Transition Cost Recovery charges and the City of Palo Alto’s Utility User Tax. 11.PAYMENT & COLLECTION OF BILLS For billing and payments related to Distribution and Transmission Services rendered, CPAU’s applicable rules and regulations on rendering and payment of bills, nonpayment, and discontinuance and restoration of serviceshall apply to DA CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 8 Customers. DIRECT ACCESS RULE AND REGI J-LATION 19 12.DISPUTED BILLS For disputed bills related to Distribution and Transmission Services rendered, CPAU’s applicable rules and regulations on disputed bills shall apply to DA Customers. CPAU bears no responsibility to respond to or resolve any billing disputes related to provision of Energy Services by the DA Customer’s ESP. CHANGES IN DIRECT ACCESS SERVICE: 1.CHANGES IN ENERGY SERVICES The DA Customer, or its ESP, shall provide CPAU with at least 30 calendar days notice in advance of the next BillingPeriod of any material change in service, subject to CPAU approval, including b~!t not limited to: CHANGE IN ELECTRIC POWER PROCUREMENT o Notice shall be provided to CPAU if a material, permanent change in future electric power requirements is anticipated. This excludes any standard hourly Load deviations experienced in procuring and scheduling Energy Services. CHANGE IN TRANSMISSION OPTION Notice shall be provided to CPAU if the DA Customer elects to change its option for Transmission Services. Applicable charges shall be applied pursuant to the applicable Direct Access electric service rate schedule. CHANGE IN ENERGY SERVICE PROVIDER Notice shall be provided to CPAU of a DA Customer’s intent to change their ESP. The new ESP shall comply with all applicable requirements for providing Energy Services under Direct Access, including signing of a DASPA if not already existing. VACATING OF PREMISES CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 9 DIRECT ACCESS RULE AND REGULATION 19 Notice shall be provided to CPAU of a DA Customer’s intent to vacate its current premises. A DA Customer’s vacating of its premises shall be considered a voluntary termination of Direct Access for the existing Account and Service Address. Participation in Direct Access for a DA Customer’s new premises is subject to CPAU’s then current eligibil!ty and selection criteria. Direct Access at the existing Account and Service Address shall not be assignable to the new occupant of the Service Address. INTERRUPTIONS AND CURTAILMENTS: It may be necessary for CPAU to shed or curtail energy supply loads in order for CPAU to respond to anticipated or actual facilities repairs or improvements, supply shortages, outages or other conditions that impact the delivery of electric power. CPAU shall attempt to provide reasonable notification to the DA Customer of such conditions, pursuant to its rules and regulations and standard procedures, but shall not be liable if such notification is not provided. CPAU shall attempt to reestablish Distribution and Transmission Services with the shortest possible delay. SUSPENSION OR TERMINATION OF DIRECT ACCESS: At it option, CPAU may suspend or terminate Direct Access service to a DA CUstomer in accordance with this section. 1.SUSPENSION CONDITION: NONPERFORMANCE OF ESP CPAU may suspend Direct Access service to a DA Customer if the ESP fails to procure and schedule Energy Services for more than 10 consecutive days, is in default on payments to CPAU, or otherwise fail to perform its obligations pursuant to this Rule or the DASPA. (A) CPAU shall immediately notify’ the DA Customer of the suspension. (B)¯ The suspension term shall be for at least 30 calendar days, as solely determined by CPAU, after which the ESP must resume performance of its obligations. Resumption of Direct Access shall coincide with the first day of the next complete Billing Period following suspension. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-10 DIRECT ACCESS RI J-LE AND REGULATION 19 (c)During the term of the suspension, the DA Customer shall be returned to Full Ser’c.ice at CPAU’s applicable default rate schedule. (D)If nonperformance by the ESP totals more than two times in the past 12 months, Direct Access for the affected Account(s) shall be immediately terminated and the DA Customer returnedto CPAU’s Full Service at the applicable default rate schedule. TERMINATION OF DIRECT ACCESS CPAU may terminate Direct Access under conditions described in this section. The DA Customer shall be returned to the CPAU’s Full Service under applicable default .rate schedules, except where physical disconnection may apply in the case of DA Customer default. (A)VOLUNTARY TERMINATION The DA Customer shall provide sufficient notice to CPAU to voluntarily terminate Direct Access using CPAU’s Termination of Direct Access form. CPAU shall determine the effective date of termination. The DA Customer shall be solely responsible for notifying its ESP of its desire to terminate and solely liable for any outstanding contractual obligations or. other consequences of the termination of its a~eement with its ESP for Energy Services. (B)INVOLUNTARY TERMINATION DUE TO DA CUSTOMER DEFAULT CPAU shall immediately terminate Direct Access if the DA Customer is in default for nonpayment of bills related to Distribution and Transmission Services rendered, unsafe conditions, fraud, service without proper application, noncompliance with City’s rules, or failure to establish credit, ¯ pursuant to CPAU’s applicable rules and regulations. DA Customer also may be subject to Distribution and Transmission Service disconnection. (C)ESP DEFAULT CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 11 DIRECT ACCESS RI ILE AND REGULATION 19 CPAU shall immediately terminate Direct Access if the ESP has been suspended more than two times in the past 12 months or other~vise breaches the DASPA or CPAU’s applicable rules and regulations. DA Customer shall not be subject to Distribution and Transmission Service disconnection due to ESP default. (D) (E) SURVIVAL OF OBLIGATIONS Upon termination of Direct Access, the DA Customer shall remain liable for all respective amounts payable or other obligations under Direct Access for services rendered by CPAU which may have accrued or may be accruing at the time of termination. RETURN TO DIRECT ACCESS If the DA Customer wishes to participate again in Direct Access alter a previous termination of Direct Access, the DA Customer’s ability to participate shall be subject to applicable eligibility and selection criteria, contractual agreements and other requirements existing at that time, pursuant to CPAU’s Direct Access Implementation Plan and rules and regulations or their successors. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-12 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 A. PROTECTIVE DEVICES: It shall be the Applicant’s responsibility to furnish, install, inspect and keep in good and safe condition at their own risk and expense, all appropriate protective devices of any kind or character, which may be required to properly protect the Applicant’s facility. CPAU shall not be responsible for any loss or damage occasioned or caused by the negligence, or wrongful act of the Applicant or any of the agents, employees or licensees of the property owner in omitting, installing, maintaining, using, operating or interfering with any such protective devices. It shall be the Applicant’s responsibility to install approval protective devices as may be necessary to coordinate properly with CPAU’s protective devices to avoid exposing other Customers to unnecessary service interrupti.ons. (A)Applicants who request primary voltage service shall install circuit breakers with over-current and ground fault relays. It shall be the Applicant’s responsibility to equip three-phase motor installations with appropriate protective devices, or use motors with inherent features, to completely disconnect such motors from its power supply, giving particular consideration to the following: (A)Protection in each set of phase conductors to prevent damage due to overheating in the event of overload. (B)Protection to prevent automatic restarting of motors or motor-driven machinery which has been subject to a service interruption and, because of the nature of the machinery itself or the product it handles, cannot safely resume operation automatically. (C). Open-phase protection to prevent damage due to overheating in the event of loss of voltage on one phase. (D)Reverse-phase protection where appropriate to prevent uncontrolled reversal of motor rotation in the event of accidental phase reversal. (Appropriate installation would include, but are not limited to, motors CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.-1 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 driving elevators, hoists, tramways, cranes, pumps, conveyors, etc.). The available short-circuit current varies fromone location to another, and also depends on the ultimate design characteristic of CPAU’s supply and service facilities. Consult CPAU for the ultimate maximum short-circuit current at each service terminal point. o Any non-CPAU-owned emergency standby generation equipment that can be operated to supply power to facilities that are also designed to be supplied from CPAU’s system shall be controlled with suitable protective devices by the Applicant to prevent parallel operation with CPAU’s system in a fail-safe manner, such as the use of a double-throw switch to disconnect all conductors, except where there is a written agreement or service contract with CPAU permitting such parallel operation. Unprotected service entrance conductors within a building shall be installed in approved conduit and shall not exceed thirty (30) feet in length. INTERFERENCE WITH SERVICE: 1.GENERAL CPAU reserves the right to refuse to serve new loads or to continue to supply existing loads of a size or character that may be detrimental to CPAU’s operation or to the service of its Customers. Any Customer who operates or plans to operate any equipment such as, but not limited to pumps, welders, saw mill apparatus, furnaces, compressors or other equipment where the use of electricity is intermittent, causes intolerable voltage fluctuations, or otherwise cause intolerable service interference’, must reasonably limit such interference or restrict the use of such equipmentupon request by CPAU. The Customer is required either to provide and pay for whatever corrective measures are necessary to limit the interference to a level established by CPAU as reasonable, or avoid the use of such equipment, whether or not the equipment has previously caused interference. HARMFUL WAVEFORM CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 Customers shall not operate equipment that superimposes a current of any freqhency or waveform from CPAU’s system, or draws current from CPAU’s system of a harmful waveform, which causes interference with CPAU’s operations, or the service to other Customers, or inductive interference to communication facilities. Upon reasonable notification from CPAU, the Customer shall be required, at his/her sole expense, to correct any harmful waveform condition including, but not limited to: Excess current drawn upon equipment start-up causing voltage sags adversely affecting CPAU or other CPAU Customer. (B)Current drawn with high harmonic currents causing transformer or conductor overheating. (c)Current drawn causing voltage distortion adversely affecting CPAU or other CPAU Customers. t (D)Harmonic current drawn in excess of 5% total harmonic distortion will require correction. (E)Harmonic current drawn which causes transformer overheating, even if root-mean-square (RMS) loading is acceptable, will require correction. CUSTOMER’S RESPONSIBILITY Any Customer causing service interference to others must diligently pursue and take timely corrective action after being given notice and a reasonable time to do so by CPAU. If the Customer does not take timely corrective action, or continues to operate the equipment causing the interference without restriction or limit, CPAU may, without liability, after giving five (5) days written notice to Custorlaer, either install and activate control devices on its facilities that will temporarily prevent the detrimental operation or discontinue electric service until a suitable permanent solution is provided by the Customer and it is operational. MOTOR STARTING CURRENT LIMITATIONS CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 (A) (B) The starting of motors shall be controlled by the Customer as necessary to avoid causing voltage fluctuations that will be detrimental to the operation of CPAU’s distribution or transmission system, or to the service of any of CPAU Customers. If the starting current for a single motor exceeds the value listed in National Electric Code Table 430-151 or the resulting voltage disturbance " causes or is expected to cause detrimental service to others, a suitable means must be employed, at the Customer’s expense, to limit voltage fluctuations to a tolerable level. PHASE BALANCING: Where three-wire single phase or polyphase service is supplied, the Load must be balanced as nearly as practicable between the two sides or several phases, respectively. In no case is the load on one side of a three-wire single-phase service to be greater than twice that on the other, or the Load on any one phase of a polyphase service greater than twice that of any other. POWER FACTOR CORRECTION: The Customer is required to provide, at its own expense, power factor correction equipment to improve average power factor to at least the level set forth in the applicable rate schedule with respect to avoiding a power factor penalty. SERVICE SWITCH AND METER TEST DEVICES: All service switches and similar devices, irrespective of voltage, required by law in connection with a service and meter installation on Customer’s Premises shall be furnished, ingtalled and maintained by the Customer. A "service-disconnecting means~’, as defined by the National Electric Code section 230-70(a), must be installed adjacent to the meter(s) and on the exterior of the building except as allowed by this rule. Where meter transformers are fumished by CPAU as part of the meter installation, CPAU will also furnish the means of safe testing required by law; but CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 Fo where such transformers are not used and the said means for safe testing is required, the Customer will be expected to provide a type of service switch incorporating the same. Detailed information will be furnished by CPAU upon application. SPECIAL POWER SERVICE REQUIREMENTS: 1.GENERAL Go Where a customer desires voltage control within unusually close limits, CPAU may require that CPAU’s provision of such voltage control will be at the Customer’s own expense for any special or additional equipment required. 2.NONSTANDARD OR EXCESSIVE CUSTOMER REQUIREMENTS (A)In order to prevent damage to CPAU’s equipment and impairment of its service, the Customers shall give CPAU notice before making any additions to his connected load so that CPAU, at its option, may provide such facilities as may be necessary for furnishing the increased service. (B)If a Customer’s load is of sufficient magnitude that it impairs the ability of the system to serve normal load in the opinion of the electrical Engineering Manager, the Customer may be required to impose peak loads during "off-peak" hours of CPAU’s electrical system, or take service from CPAU’s 60 kilovolt system, or both. SPECIAL FACILITIES: CPAU normally installs only those standard facilities which it deems are necessary to provide regular service in accordance with the rate schedules. Where the Applicant requests CPAU to install facilities and CPAU agrees to make such an installation, the additional costs thereof, as estimated by CPAU, shall be borne by the Applicant, including such continuing ownership costs as may be applicable. Special facilities are: CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 5 SPECIAL ELECTRIC UTILITY REGULATIONS RULE AND REGULATION 20 (A) (B) Facilities requested by an Applicant which are in addition to or in substitution for standard facilities which CPAU would normally provide for delivery of service at one point, through one meter, at one voltage class under its rate schedules; or A pro rata portion of the facilities requested by an Applicant, for the sole use of such Applicant, which would not normally be allocated for such sole use. Unless otherwise provided by CPAU’s rate schedules, special facilities will be installed, owned and maintained by CPAU as an accommodation to the Applicant. only if acceptable for operation by CPAU and the reliability of servide to CPAU’s other Customers is not impaired. CUSTOMER SELECTION OF RATE AND SERVICE OPTIONS: 1.CUSTOMER RATE SELECTION PERIOD During the Customer Rate Selection Period, Customersmay elect to be served under a different rate schedule in which they qualify. The Customer Rate Selection Period shall commence on May 20 and end on June 30, unless otherwise indicated on applicable rate schedules. The Customer Rate Selection Period shall be available each year to all Customers, unless a Customer has made other binding commitments to the rate schedule or contract they are presently served under. Rate schedules may indicate different commitment periods for Customers. 2.DEFAULT RATESCHEDULE In the absence 6f a Customer electing to be served under a different rate schedule, the Customer will continue to be served under the applicable Default Rate Schedule. For Customers receiving Full Service, the Default Rate Schedule is their existing rate schedule. For Direct Access Customers, the Default Rate Schedule, during the period between the end of the Customer Rate Selection Period and the date in which energy is delivered from the Energy Service Provider, will be the applicable CPAU market rate CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. o 6 SPECIAL ELECTRIC UTILITY REGULATIONS RI YLE AND REGULATION 20 schedule. For Direct Access Customers returning to CPAU bet~veen the Direct Access Open Seasons, the Full Service Default Rate Schedule is the applicable CPAU market rate schedule or alternatively, the Customer may negotiate a contract with CPAU. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 7 SPECIAL WATER UTILITY REGULATION RULE AND REGULATION 21 A. AUTOMATIC FIRE SERVICE: 1.PURPOSE o An automatic fire service connection in 4-inch to 10-inch size will be furnished only if adequate provisions are made to prevent the use of water for purposes other than fire extinguishing. APPLICATION AND AGREEMENT The Applicant will be required to sign an application for CPAU connection and a~ee to operate the fire service in accordance with these Rules and Regulations. The applicant, at the applicant’s expense, will be required to install an approved baekflow protection assembly in accordance with Title 17 of the California Administrative Code and City standards. INSTALLATION CHARGES The Applicant will be required to make payment in advance of construction in accordance with CPAU’s applicable Connection Fee rate schedule. QUANTITATIVE CHARGES (A)Water for fires: no charges will be made for water used to extinguish accidental fires. (B)Other: Water used for any purpose other than extinguishing fires or testing or repairing fire extinguishing facilities, shall be paid for under Water Rate Schedul~ W-3. Unauthorized water used shall be subject to criminal .prosecution as set froth in Water Rate Schedule W-3. 5.VIOLATION OF AGREEMENT If water is used from a fire service in violation of the a~eement o~ of these Regulations, CPAU may, at its option, levy a fine and discontinue and remove a CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 1 SPECIAL WATER UTILITY REGULATION RULE AND REGULATION 21 service in addition to charging for the water illegally used. OWNERSHIP OF CONNECTION The service connection and all associated equipment shall be the sole property of CPAU, and no part of the cost thereof will be refunded to the Applicant. PRESSURE AND SUPPLY CPAU assumes no responsibility for loss or damage because of lack of water or pressure and merely agrees to furnish such quantities and pressures as are available in its general distribution system. The service is subject to shutdowns and variations required by the operation of the water system and system demands. B. FIRE HYDRANTS: 1.USE OF AND DAMAGE OF FIRE HYDRANTS No person or persons, other than those designated and authorized by the proper authority, or by CPAU shall open any fire hydrant, attempt to draw water from it or in any manner damage or tamper with it. Any violation of this regulation will be prosecuted according to law. (A)The following conditions must be met for a person(s) to draw water from a public fire hydrant: (1) (2) Prior to use at a construction site or for any other purpose, a person must first apply to CPAU for a Fire Hydrant Meter Permit. deposit of $500.00 on the Hydrant Meter, which is supplied by CPAU, will be required. (3)Monthly meter reading cards must be submitted by the permittee to CPAU on a timely basis. (4) Charges to be billed and paid according to CPAU’s applicable CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 2 SPECIAL WATER UTILITY REGULATION RULE AND REGULATION 21 water service rate schedule for Fire Hydrants. (5)All water taken from the fire hydrant must be registered on the hydrant meter. It is illegal to draw water from a hydrant without the hydrant meter attached to record the volumes. (B)Fines and Penalties (1)Any person(s) drawing water from a public fire hydrant who does not meet either of the conditions described in Rule 21 B. 1. (A) (1) or Rule 21 B.1 (A) (5) shall be subject to criminal prosecution. (2)Failure to submit timely meter reading cards may result in forfeiture of all or part of the Customer deposit. (3)Failure to retum the hydrant meter at the end of the appropriate period may result in additional charges of $50.00 per day. (4)Individual or companies who are found in violation of Rule 21 B.I.(A)(1) or Rule 21.B.l(A)(5) on more than one occasion in a three year period may be denied any use of fire hydrant water service. Such Customer may use reclaimed water. MOVING OF FIRE HYDRANTS When a fire hydrant has been installed in the location specified by the proper authority, CPAU has fulfilled its obligation. If a property owner or other party desires a change in the size, type or location of the hydrant, the owner shall bear all the cost of such changes, without refund. Any change in the location of a fire hydrant must be approved by the proper authority. The cost of relocation shall be as estimated by ihe Engineering Manager for water-gas-wastewater. This cost estimate must be paid to CPAU before relocation can begin. C.CONTROL VALVES The Customer shall install a suitable valve, as close to the meter location as practicable, the operation of which will control the entire water supply from the service. The CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 3 SPECIAL WATER UTILITY REGULATION RULE AND REGULATION 21 operation by the Customer of the Utilities shut-off equipment at the meter is not permitted. D.CROSS CONNECTIONS- 1.HEALTH REGULATIONS No physical connection between the potable water supply of the Utility and that of any other water supply source will be permitted except in compliance with the current regulations of the State Department of Public Health contained int Title 17 of the California Administrative Code, Chapter 5, Subchapter 1, Group 4, Sections 7583 through 7604 (hereafter "State Regulations"). 2.UTILITY REQUIREMENTS To comply with the regulation of the State Department of Health Services, the Utility will require installation of approved backflow protection devices at a location approved by the Utility pursuant to State Regulation by, and at the expense of the Customer, before service will be granted under any of the following conditions: (A)When an unapproved fresh water supply is already available from a well, spring, reservoir, or other source. If the Customer agrees to abandon this other supply and agrees to remove all pumps and piping necessary for the utilization of this supply, the installation of backflow protective devices will not be required. (B)Where salt water, or water otherwise polluted, is available for industrial or fire protection purposes, or where fresh water hydrants are or may be installed on piers or docks. (c)Where ffie premises are now or may be engaged in processes which ¯ produce industrial wastes, or where the premises are or may be engaged in handling sewage or any other dangerous substances. (D)Where the circumstances are such.that there is special danger of backflow of sewage or other contaminated liquids through plumbing fixtures of water-using or treating equipment, or storage tanks and reservoirs. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 4 o SPECIAL WATER UTILITY REGULATION RULE AND REGULATION 21 (E)Where an approved water supply line terminates at a pier head outlet which is used to supply vessels at piers or water fronts. These installations shall be located where they will prevent the return of any water from a vessel or any other source into the approved water supply line. PLUMBING CHANGES REQUIR_ED In special circumstances, where the customer is engaged in the handling of especially dangerous or corrosive liquids, or industrial or process water, the Utility may require the customer to eliminate certain plumbing or piping connections as an additional precaution and as a protection to the backflow preventive devices. In making plumbing connections beyond the backflow prevention device to the service, the customer shall be guided entirely by local or state plumbing ordinances and the state regulations, and not by the Utility. RELIEF VALVE REQUIRED As a protection to the customer’s plumbing system, a suitable pressure relief valve must be installed and maintained by the customer, and at the expense of the customer, when backflow prevention devices are used. The relief valve shall be installed between the backflow device and the water heater. 5.BACK_FLOW PROTECTION ON ADDITIONAL WATER SUPPLY LINES Whenever backflow protection has been found necessary on a water supply line entering a customer’s premises, then any and all water supply lines from the Utility’s mains entering such premises, buildings, or structures shall be protected by an approved backflow device in conformance with state regulations, regardless of the use of the additional water supply lines. 6.PROTECTION ~GAINST INTERSTREET MAIN FLOW (A)Two or more services supplying water from different street mains to the same building structure or premises through which an interstreet main flow may occur shall have an approved backflow device on each water service to be located adjacent to and on the private property side of the respective meter or service lines. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 5 SPECIAL WATER UTILITY REGULATION RULE AND REGI ILATION 21 o INSPECTION OF BACKFLOW PROTECTIVE DEVICES (A)The double check valve or other approved backflow protection devices may be inspected and tested periodically for water tightness by the Utility. (B)In addition, the regulations of the State Department of Public Health requires that the owner of any premises on which check valves or other protective devices are installed shall have the device inspected by a certified backflow device tester for water tightness and reliability at least once every year. The devices shall be serviced annually, overhauled or replaced whenever they are found defective and all costs of repair and maintenance shall be borne by the customer. 8.DISCONTINUANCE OF SERVICE FOR DEFECTIVE APPARATUS The service of water to any premises may be immediately discontinued by the Utilit3; if any defect is found in the backflow device installations or other protective devices, or if it is found that dangerous unprotected cross connections exist. Service will not be restored until such defects are corrected by and at the expense of the customer. E.WATER METER VAULTS AND BOXES It shall be the responsibility of the customer tO keep the top of the water meter, vault or box at ground level and clear of vegetation or any other obstruction. If after a 30 day notice from the Utility the customer has not caused the meter, vault, or box to be at ground level and clear of vegetation or obstructions, the Utility will perform the work at the customer expense. The customer will pay the actual cost to the Utility for the work, and such charge shall be added to the customer monthly bill. F.IRRIGATION METERS: Water Service for all new and {ehabilitated industrial, commercial, and institutional landscaping and new and rehabilitated multi-family common areas requiting a permit or review by the City shall be provided by a separate irrigation meter. This meter shall be designated as an irrigation account and no other utilities will be billed on such accounts. The customer shall pay for the additional service according to rate schedule W-5. CiTY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 6 WASTE OF WATER SPECIAL WATER UTILITY REGULATION .RULE AND REGULATION 21 In the event that waste of water shall be found, due to leaking, defective, or wasteful equipment, the City will notify the customer. If the customer does not take reasonable steps to curb this waste, the City shall have the right, after giving due notice, to discontinue service to the customer until the repairs have been completed on the customer’s equipment. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No.- 7 SPECIAL GAS UTILITY REGULATIONS RULE AND REGULATION 22 MAINTENANCE OF ANODE TEST BOXES: The Anode Test Box is necessary for testing the cathodic protection system which protects the gas system from the effects of corrosion. It is the responsibility of the Customer to keep this Box to ground level and visible if located on Customer’s property. See Rule 8 Access to Premises. If after a 30 day notice from CPAU the Customer has not caused the Anode Test Box to be at ground level and clear of vegetation or obstruction, CPAU may arrange for the work to be performed at the Customer’s expense. The Customer will pay the actual cost to CPAU for the work, and such charge shall be added to the Customer’s monthly bill or billed directly to the Customer. MAINTENANCE OF GAS.METER LOCATION: It is the responsibility of the Customer to keep the gas meter accessible for reading and maintenance by controlling the growth of shrubs and plants. Additionally the meter shall be kept clear of all debris, shields, and construction. See Rule 8 Access to Premises. "Accessible" means capable of being reached quickly and conveniently 24 hours a day for construction, operation, inspection, testing or reading, without requiring those seeking access to climb over or remove obstacles or obtain special permission or security clearances. If after a 30 day notice from CPAU the Customer has not caused the meter location to be clear of vegetation or obstruction, CPAU may arrange for the work to be performed at the Customer’s expense. The Customer will pay the actual cost to CPAU for the work, and such charge shall be added to the Customer’s monthly bill. GAS METER LOCATION: Each gas meter and service regulator shall be installed at a location that provides protection from damage due to vehicular traffic, corrosion and extreme temperature exposure to pool chemicals, dryer vents, lawn sprinklers, etc. must be avoided. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 SPECIAL GAS UTILITY REGULATIONS RULE. AND REGULATION 22 Each meter must be located in a ventilated area in accordance with the Utility Standards and Federal Department of Transportation regulations. Deviations from these standards and regulations must be approved by WGW Engineering prior to any work being performed. D.MAINTENANCE OF GAS SERVICE PIPES: Existing gas service piping that cannot be maintained due to existing site conditions will be rerouted to a new standard meter location. The cost ofrerouting the gas service pipe from the gas main in the street to the new meter location will be at CPAU expense. It is the Customer’s responsibility to reroute and test house piping to the new meter location. All costs associated with rerouting, building permits, inspection and testing of Customer (house) piping will be at the Customer’s expense. Maintenance shall include all repairs, modifications, or replacements of gas service piping between the gas main and service meter. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 SPECIAL WASTEWATER UTILITY REGULATIONS RULE AND REGULATION 23 HAULED LIQUID WASTE: The discharge of hauled liquid wastes is regulated by the Palo Alto Municipal Code 16.09.110. The following Rules and Regulations are to implement this provision. 1.PURPOSE To provide a means of treating certain waste prohibited from entering the sewer, CPAU operates a Hauled Liquid Waste Treatment Site at the Regional Water Quality Control Plant (RWQCP). Certain wastes may be hauled to this site for treatment and disposal. 2.WASTES ACCEPTABLE FOR TREATMENT (A) (B) (C) Hauled septic tank wastes Portable toilet pumpings Grease trap wastes HOURS OF OPERATION Hours of operation for the Liquid Waste Hauler’s Treatment Site shall be as established by the Manager, Water Quality Control. 4.WASTE IDENTIFICATION The hauler must provide a liter sample, taken in the presence of a waste treatment plant operator, of the contents of each tank to be discharged. The nature and source of the waste will be verified before the truck is permitted to unload. If laboratory analysis indicates that the material is not as represented (septic tank waste or toilet piping from a domestic source) the hauler’s permit may be revoked. 5.HAULING OPERATIONS (A)To discharge at the Regional Water Quality Control Plant, a hauler must: (1) Obtain a Trucker’s Discharge Permit from the Manager, Water CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 (2) SPECIAL WASTEWATER UTILITY REGULATIONS RULE AND REGULATION 23 Quality Control; File with CPAU a certification of insurance and a hold harmless clause: (B) (3)Post a bond or cash deposit with CPAU’s appropriate division. The Trucker’s Discharge Permit shall be issued for twelve-month periods and is revocable for the violation of any of these Rules. The fee for Trucker’s Discharge Permits shall be as stated in CPAU Rate Schedule S- 4. (c)Insurance policies in force with limits of liability shall not be less than those specified below as follows: Coverage for Which Insurance is Afforded Limits of Liability Worker’s Compensation & Employer’s Liability Bodily Injury Liability except automobile including The following coverages: Coverage for Which Insurance is Afforded Compensation Statutory $1,000,000 each person $1,000,000 each occurrence Limits of Liability Protective, Completed Operations, Board Form Contractual and Personal Injury Property Damage Liability except automobile including The following coverages: Protective, Completed Operations, Board Form Contractual and $1,000,000 each occurrence CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 SPECIAL WASTEWATER UTILITY REGULATIONS RULE AND REGULATION 23 Personal Injury Property Damage Liability Except automobile including the following coverages: Protective Completed Operations and Board Form Contractual $1,000,000 each occurrence (E) Bodily Injury and Property Damage $1,000,000 each person Liability Automobile $1,000,000 each occurrence The hauler must agree to save and hold harmless CPAU, its officers, agents, and employees from any liability of any nature whatsoever caused in whole or in part, by the negligence of the hauler, or his agents, or employees, arising out of such operation. 6.BILLING Waste Haulers will be billed directly for grease, septic tank and portable toilet wastes. 7.REFUSAL OF WASTES CPAU reserves the right to reject any load of hauled waste under the following conditions: (A) (B) (C) (D) If the waste is not properly identified If there is not sufficient storage capacity at the plant for the load For reasons of public health or safety at the discretion of the Manager, Water Quality Control Plant. If the load contains waste materials not authorized by these Regulations. MAINTENANCE OF THE WASTEWATER COLLECTION SYSTEM: 1.CPAU RESPONSIBILITY CPAU will be responsible for the maintenance of the sewer lateral from the clean- CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 SPECIAL WASTEWATER UTILITY REGULATIONS RIFLE AND REGULATION 23 out box located near the street curb to, and including, the sewer main and the remainder of the system, except that the expense of sewer maintenance resulting from violation of the Municipal Code, or of these Regulations may be assigned to the user, or CPAU may refuse to perform such maintenance. CPAU’s responsibility is limited to mains located in easements. CUSTOMER RESPONSIBILITY The Customer will be responsible for maintenance of the on-site wastewater collection system in accordance with the Municipal Code, including: (A)Maintenance of the sewer lateral from, and including, the house to the point where the line connects to the clean-out box. Where the sewer main is in an easement and the Customer’s sewer lateral is directly connected thereto, the Customer is responsible for maintenance and stoppages of the sewer lateral from, and including the house to the point where the line connects to the sewer main. (B)Storm water, roof or yard drainage, basement, foundation or under- drainage is prohibited from discharge into the wastewater collection system, nor shall any plumbing or piping be connected or installed in such a manner as to make possible the future discharge of storm water or ground water into the wastewater collection system. (c) (D) Maintenance to CPAU Standard of the on-site wastewater collection system in a water tight condition to prevent the infiltration of groundwater. Keeping the clean-out box at ground level and visible. If after a 30 day notice from CPAU the Customer has not caused the clean-out to be free of vegetatio.n, CPAU will clear the vegetation at the Customer’s expense. The Customer will pay to CPAU the actual cost for the work and this charge will be added to the Customer’s next monthly bill. (E)Grease traps, where installed, shall be cleaned out at least monthly or more frequently in a manner which will prevent the trapped grease from escaping into the wastewater collection system, and in such a manner that the trapped grease is removed from both the grease trap sewer lateral and CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 4 SPECIAL WASTEWATER UTILITY REGULATIONS RULE AND REGULATION 23 the wastewater collection system as directed by CPAU. Where grease is found to accumulate in a sewer lateral that is not protected by a grease trap, a grease trap shall be installed by the Customer on the Customer’s property at his expense within ninety (90) days of notification by CPAU. The cost of removal of a main stoppage linked to a Customers failure to properly maintain gease traps will be billed to the Customer at CPAU’s cost. (F)Interceptors used for purposes other than kitchen grease separation including, but not limited to, sediment traps from automobile wash racks and repair shops shall be maintained at least monthly or at a frequency which will prevent the trapped material from entering into the wastewater collection system. NOTIFICATION TO CPAU If a sewer stoppage occurs, the Customer shall notify CPAU. CPAU will then determine if the stoppage is in the portion of the system maintained by CPAU or the Customer. CPAU will clear stoppage from the property line or clean out to the main. Co SAMPLING OF INDUSTRIAL DISCHARGES IN EXCESS OF 25,000 GALLONS PER DAY In order to properly apportion costs of operation and maintenance of the RWQCP to the large industrial or commercial users, it is essential to determine both the quantity and quality ofwastewater produced by each user discharging 25,000 gallons per day or its equivalent. The following is adopted as a fair and equitable method of developing the necessary criteria: 1.Flow (A)The quantity charge shall be based upon the metered water served to the industrial or commercial user being billed. If the facility has a cooling tower and the volume of water associated with a cooling tower can be CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 5 SPECIAL WASTEWATER UTILITY REGULATIONS RULE AND REGULATION 23 identified, such amount may be applied to the annual metered water usage to arrive at a net estimate of flow. (B)In cases where the user has extensive landscape irrigation and summer monthly consumption exceeds the average monthly consumption of January, February, and March by more than 50 percent (50%), the average of the January, February, and March consumption shall be used for calculating wastewater discharge for the remaining months of the year. (c)If an outflow meter has been installed, such metered outflow will be used to determine flow in lieu of recorded water meter consumption. Chemical Oxygen Demand, Suspended Solids, Ammonia (A)Measurements of the concentration of these constituents shall be taken from 24-hour composite samples Collected periodically for each industrial discharger discharging in excess of 25,000 gallons per day to the wastewater collection system. (1)The constituent concentrations found in these samples and previous samples shall be averaged to provide the basis for establishing the wastewater treatment charge to be levied to the discharger being sampled. (2)All samples shall be analyzed at the laboratory of the RWQCP. Treatment charges will be based upon the quantity and concentration found in the waste stream monitored. (B)If an establishment’s piping configuration, or other physical considerations, render representative effluent sampling prohibitively complex or infeasible, then CPAU shall set the establishment’s level of sewage effluent constituents for billing purposes at the average effluent levels of industries in CPAU, or where feasible, at the average effluent constituent levels of similar establishments. (c)Sampling results are intended to provide an estimate of the quality of effluent discharge by the facility. Sampling results can vary CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 6 SPECIAL WASTEWATER UTILITY REGULATIONS RULE AND REGULATION 23 significantly depending on the facility processes operating on the day of sampling. If the annual sampling results in combination with the flow data indicate a revised annual bill to the Customer, the amount of t.he increase or decrease shall not exceed 25 percent. The 25 percent limitation is independent of any change in rates or charges to Rate Schedule S-2. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 7 SPECIAL RECYCLING AND REFUSE UTILITY REGULATIONS RULE AND REGULATION 24 A. SPECIAL REFUSE: 1.GENERAL: Ao CPAU shall authorize, permit, regulate and control the collection and disposal of all refuse within the City limits. B. Minimum collection service is once a week. Co Each owner or tenant must provide a metallic or plastic can for refuse with close fitting cover, cover handle and side bails of thirty-two-gallon or less gross capacity, not to exceed a weight of sixty pounds (60 lbs.). Other containers may be approved by the Public Works Director or his/her designee. Do Containers for yard trimmings are provided by the resident and may include a 32 gallon garbage can, 30 gallon kraft paper bags, or boxes. Containers used for yard trimmings collection may not exceed 40 lbs. The exception is a CPAU approved rental cart, which may not exceed 200 lbs. Eo Cans or containers must not be packed so tight that content does not empty freely. Go Owner or tenants must supply a safe and accessible pathway. Collectors do not enter buildings or garages to empty refuse containers. H.Customers must have all materials ready by 6:00 a.m. on collection day. The refuse charge funds collection, disposal, recycling, composting, hazardous waste, and street sweeping programs. To the extent a resident or commercial/industrial business applies and obtains a "Self-haul Permit", or in very rare cases it is determined by the Director of Public Works that the Customer does not generate any refuse, the portion of the refuse charge to cover solid waste collection services by CPAU’s contractor may be eliminated from the applicable refuse charge. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. o 1 SPECIAL RECYCLING AND REFUSE UTILITY REGULATIONS RULE AND REGULATION 24 o RESIDENTIAL Ao Residential refuse service is collected from the front yard, curb, or backyard. New-Customer Automatic service is one 32-gallon can, unless an alternate level is requested. The minimum Service is one 20-gallon mini can. Residents may choose from a variety of service levels such as mini~can, single can, multiple cans, or bins as well as the frequency of pick-ups. " Any occupied establishment or domestic dwelling which is receiving gas or electric service shall be charged at least a minimum charge for refuse services. An occupied domestic dwelling includes but is not limited to any home, apartment unit, cottage, flat, duplex unit, having kitchen, bath, and sleeping facilities. If unusual circumstances exist such that no refuse is generated at the premises, the Customer may apply for an exemption from this Rule to avoid being charged for refuse service in accordance with Section A. 1 (I) of this Rule. COMMERCIAL AND INDUSTRIAL Location of containers shall be determined by the Public Works Director or his/her designee. New-Customer Automatic service is two 32-gallon standard containers. Minimum service is one 32 gallon standard container. Businesses may choose from a variety of service levels, including frequency of pick-ups. B.COLLECTION AND OWNERSHIP OF RECYCLABLE MATERIALS 1.RECYCLING PROGRAM The City of Palo Alto shall provide a program for the collection of Recyclable materials from-residential and commercial/industrial premises. Recyclable materials means those materials suitable and approved by the City for Recycling, including yard trimmings. (A)Recyclable materials placed for curbside residential recycling collection shall become the property of the City’s authorized Collector at the time of placement at the curb or other designated location for the collection. The Collector shall be an authorized contractor under CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. o 2 SPECIAL RECYCLING AND REFUSE UTILITY REGULATIONS RULE AND REGULATION 24 (13) (C) " PAMC Section 5.20.040 pursuant to written contract with the City, and shall have exclusive right to collect such Recyclable materials. (1)The City or its Collector shall provide acceptable recycling crates to residents. Such crates remain the property of the City and shall not be removed by residents vacating premises. If crates are removed, the outgoing resident may be charged a fee to replace the crates based on either a published fee or actual replacement cost at local hardware stores. For commercial/industrial Customers, Recyclable materials placed in Bins, Boxes, or Containers provided by the City or its authorized Collector, such materials become the property of the City or the Collector, as the case may be. The City or Collector shall have the exclusive right to collect Recyclable materials from such Bins, Boxes, or Containers. Commercial/industrial businesses can donate, sell, or pay to have recyclables collected byany recycler provided such materials are separated by material type. Glass, tin, aluminum, and plastics may be commingled. Additional requirements related to exclusions to the City or its Collector having the exclusive right to Recycling materials are provided in Ordinance Number 4451. SCAVENGING OF GARBAGE AND/OR RECYCLABLE MATERIALS IS PROHIBITED. o No person shall scavenge in any City-operated Disposal, recycling center, or processing facility, including the City Landfill, nor disturb nor remove any material therein, without permission from the Director of Public Works. No person shall scavenge from or deposit solid waste or Recyclable materials in any" solid waste or Recyclable bin, Box, or Container on the premises of a resident or business without the permission of the owner of the container. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 A. GENERAL: For the purpose of CPAU Rate Schedule D-1 and this Rule and Regulation, the following words and terms shall be defined as follows, unless the context in which they are used clearly indicates otherwise. The definitions of words and terms set forth in Titles 12 and 13 of the Pale Alto Municil~al Code shall also apply herein to the extent that they are not inconsisteni herewith: "Developed Parcel" shall mean any lot or parcel of land altered from its natural state by the construction, creation or addition of impervious area, except public streets and highways. "Equivalent Residential Unit (ERU)" shall mean the basic unit for the computation of storm drainage fees. All single-family and duplex units are considered 1 ERU based on data from the City of Palo Alto PublicWorks Department, and are considered to have’an average impervious area of 2,500 square feet. All other properties will have ERUs computed to the nearest 1/10 ERU using the following formula: Number of ERU = Impervious Area (Sq. Ft.) 2,500 sq. Ft. No developed parcel shall have an ERU less than 1.0. "Impervious Area" shall mean any part of any developed parcel of land that has been modified by the action of persons to reduce the land’s natural ability to absorb and hold rainfall. This includes any hard surface area which either prevents or retards the entry of water into the soil mantle as it entered under natural conditioi~s pre-existent to-development, and/or a hard surface area which ¯ causes.water to. run off the surface in greater quantities or at an increased rate of flow from the flow present under natural conditions pre-existent to development. By way of example, common impervious areas include, but are not limited to roof tops, walkways, patios, driveways, parking lots or storage areas, concrete or asphalt paving, gravel roads, or any cleared, graded, paved, graveled, or CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 Supe?sedes Sheet No. # dated CITY OF PALO ALTO UTILITIES Sheet No. -1 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 compacted surface or packed earthen materials, or areas covered with structures or other surfaces which similarly impede the natural infiltration of surface water into the soil mantle. "Non-Single-Family Residential Property" shall include all developed parcels zoned or used for multi-family, commercial, industrial, retail, governmental, or other non-single family residential purposes and shall include all developed parcels in the City of Palo Alto not defined as single-family residential property herein. "Parcel" shall mean the smallest separately segregated lot, unit or plot of land having an identified owner, boundaries, and surface area which is documented for property tax purposes and given a tax lot number by the Santa Clara County Assessor. "Primary_ CPAU Account" shall mean that CPAU account, as determined below, that will be assessed the storm drainage fee for a given developed parcel: (A)If there is only one CPAU account associated with a developed parcel, then that account is the Primary CPAU Account. (B)If there is more than one CPAU account associated with a developed parcel, then the Primary CPAU account shall be the account listed below, in order of preference: (1)The CPAU account designated as the "house account", or, if none or more than one, then; (2)The CPAU account in the name of the owner of the parcel, or if none, then; (3)The CPAU account(s) in the name of the occupier(s) of the parcel. (4)If more than one account, then the CPAU account that includes the most CPAU services. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 Supersedes Sheet No. # dated CITY OF PALO ALTO UTILITIES Sheet No. -2 SPECIAL STORSI AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 "Single-Family Residential Property" shall include all developed parcels with either one single-family detached housing unit or one two-unit attached dwelling structure commonly known as a "duplex." "Storm and Surface Water Control Facilities" shall mean all man-made structures or natural water course facility improvements, developments, properties or interest therein, made, constructed or acquired for the conveyance of storm or surface water runoff for the purpose of improving the quality of, controlling, or protecting life or property from any storm, flood, or surplus waters. "Storm Drainage Facilities" shall mean the storm and surface water drainage systems comprised of storm water control facilities and any other natural features which store, control, treat and/or convey storm and surface water. Storm Drainage Facilities shall include all natural and man-made elements used to convey storm water from the first point of impact with the surface of the earth to the suitable receiving body of water or location internal or external to the boundaries of the City of Palo Alto. Such facilities include all pipes, appurtenant features, culverts, streets, curbs, gutters, pumping stations, channels, streams, ditches, wetlands, detention/retention basins, ponds, and other storm water conveyance and treatment facilities whether public or private. See CPAU Rule and Regulation No. 8 "Access to Premises." 10."Storm and Surface Water" shall mean water occurring on the surface of the land, from natural causes such as rainfall, whether falling or flowing onto the land in question. 11."Undeveloped Parcel" shall mean any parcel which has not been altered from its natural state by the construction, creation, or addition of impervious area. STORM DRAINAGEFEES: There is hereby imposed on each and every developed parcel of land within the City of Palo Alto, and the owners and occupiers thereof, jointly and severally, a storm drainage fee. This fee is deemed reasonable and is necessary to pay for: (A)Improving the quality of storm and surface water; CITY. OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 Supersedes Sheet No. # dated CITY OF PALO ALTO UTILITIES Sheet No. -3 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 o ° ° (B)The operation, maintenance, improvement and replacement of the existing City storm drainage control facilities; and (C) The operation, maintenance, and replacement of future such facilities. All of the proceeds of these fees are deemed to be in payment for use of City storm drainage facilities by the developed parcel on, and with respect to, which the fee is imposed, and the owners and/or occupiers thereof. The storm drainage fee shall be payable monthly and shall be paid to CPAU, as billed by CPAU, for each and every developed parcel in the City by the owner or occupier responsible for the Primary CPAU account for other CPAU services for the subject parcel, unless otherwise agreed in writing by CPAU. In any event, the parcel owner or occupier shall be responsible to pay all unpaid or delinquent storm drainage fees. If a developed parcel does not have a CPAU account on the effective date of this Rule and Regulation, a new account shall be established for that parcel and billed to the owner as shown on the latest County Assessor’s property tax rolls until such time as a Primary CPAU account is established for other CPAU services. When an undeveloped parcel is developed, a new account shall be established and billed to the owner of that parcel as shown on the latest property tax rolls of the Santa Clara County Assessor until such time as a Primary CPAU account is established for other CPAU services. BASIS FOR CALCULATION (A)The storm drainage fee shall be based on the relative contribution of storm ¯ and surface water from a given developed parcel to City storm drainage facilities. (B)The relative contribution of storm and surface water from each developed parcel shall .be based on the amount of impervious area on that parcel and shall determine that parcel’s storm drainage fee. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 Supersedes Sheet No. # dated CITY OF PALO ALTO UTILITIES Sheet No. -4 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 (c)The extent of impervious area will be established to the nearest square foot by any of the following methods: (1)Computation of the impervious area using on-site measurements of the apparent outside boundaries of the impervious area in or on such developed parcels made by CPAU or on its behalf; or (2)Computation of the impervious area using the dimensions of the impervious area in or on the developed parcels which are set forth and contained in the records of the office of the County Assessor. (3)Estimation, calculation and computation of the impervious area using aerial photography or photogrammetry, or using the information and data from on-site measurements of like or similar property or features or as contained in City or County records. (4)Computation of the impervious area using information submitted by building permit Applicants on forms provided by the City, subject to review and correction by the City. CALCULATION OF MONTHLY FEE (A)Single-Family Residential: Monthly fees for single family residential parcels shall be equal to the rate for 1 ERU as set forth in CPAU Rate Schedule D- 1. (B)Non-Single-Family Residential: Monthly fees for non-single family residential parcels shall be computed in accordance with the following formula: .Number ofERU’s x Rate per ERU as set forth in CPAU Rate Schedule D-1. 8.APPLICATION (A)Developed Parcels: Storm drainage fees shall apply to all developed CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 Supersedes Sheet No. # dated CITY OF PALO ALTO UTILITIES Sheet No. -5 SPECIAL STORM AND SURFACE WATER DRAINAGE UTILITY REGULATIONS RULE AND REGULATION 25 parcels within the City, including those classified as non-profit or tax- exempt for ad valorem tax purposes. It shall apply to all government properties, to the full extent permitted by the constitutions of the United States and the State of California, including developed parcels of the City of Palo Alto, City-owned buildings and parks, but excluding public streets and highways. (B) (c) Undeveloped Parcels: Storm drainage fees shall not be levied against undeveloped parcels that have not been altered from their natural state as defined herein under "Impervious Areas." Proportional Re~tuction of Fees: Developed parcels that have their own maintained storm drainage facility or facilities that do not fully utilize City facilities or make no substantial or only a partial contribution of storm or surface water to the City’s storm drainage facilities shall be subject to the storm drainage fee only to the extent they do contribute storm and surface water to City storm drainage facilities or use storm and surface water treatment services of the City. Developed parcels that have a portion of their impervious area within City of Palo Alto shall be charged only for that portion 0fimpervious area which is in the City of Palo Alto. The burden of establishing the reduced contribution to the City storm drainage facilities or the reduced utilization of City storm and surface water treatment services shall be on the parcel owner and to the satisfaction of the City’s Engineer under Administrative Review Procedures. ADMINISTRATIVE REVIEW Any person who disputes the amount of any storm drainage fee made against his developed parcel or who requests a deferred payment schedule therefore may request a revision or modification of such fee from the City Engineer in the Public Works Department. The City Engineer may notify any owner or occupier in the event he considers the fee for any developed parcel to be inadequate or improper. The parcel owner shall make such request in writing pursuant to Rule and Regulation 11 Section F, expect that the City Engineer shall conduct the review in place of the Supervisor, Customer Service Center. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 Supeisedes Sheet No. # dated CITY OF PALO ALTO UTILITIES Sheet No. -6 FIBER OPTICS RULE AND REGULATION 26 GENERAL: A fiber license agreement is required before the Customer may license fibers from CPAU. The Customer may request strands of dark fiber to interconnect two or more locations within the City limits of Palo Alto. CPAU will use existing fibers and/or install custom fiber cables to complete the connection. All requests for dark fiber connections shall be made to the Utilities Telecommunications Manager. SERVICE CONNECTION PROCEDURES: 2o So The Customer requests a service connection by submitting an Advance Engineering Request Form along with the required Advance Engineering Request Fee. CPAU completes an advanceengineering study to determine the cost and time required to complete the proposed interconnection work and provides the customer with an invoice for the Interconnection Fee, less a credit for the Advance Engineering Fee already paid. Following advance payment of the Interconnection Fee, CPAU completes the interconnection work, furnishes the Customer with a performance test report, and notifies the Customer that the fibers are available for use. (The Customer may elect not to have CPAU perform the interconnection work; however, in such a case, the Advance Engineering Fee is not refundable). Unless the Customer notifies CPAU within 10 business days that one or more of the fibers do not meet the performance specifications, the fibers are deemed accepted by the Customer and an invoice is sent to the Customer for the license fee, drop cable management fee, and/or custom fiber cable management fee for the remainder of the calendar year starting with the llth business day after the performance test results are faxedto the Licensee. CPAU reserves the right to install additional fibers and associated infrastructure beyond that required for the licensee when responding to a CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 1 FIBER OPTICS RI YI.,E AND REGULATION 26 service connection request, provided CPAU bears all additional costs incurred during installation. C.INFRASTRUCTURE OWNERSHIP AND MAINTENANCE RESPONSIBILITY: All fiber optic infrastructure and related support infrastructure installed by CPAU will at all times remain the sole property of CPAU. The Customer may specify the location to which CPAU will extend fiber optic cables, with the limitation that CPAU will only extend fiber optic cables into buildings using existing conduit structures. CPAU will not construct new buildings entries. If new building entries are needed, the Customer will be responsible for constructing them. o CPAU and the Customer will each assume responsibility for performing splice work and fiber maintenance activities within their respective properties. The Customer is prohibited from accessing any portion of the fiber backbone, with the exception of the ends of drop cables that are extended into the Customer’s premises. o The Customer shall exercise reasonablecare to prevent CPAU infrastructure on the Customer’s premise from being damaged or destroyed. No rent or other charge whatsoever shall be made by the customer against the City for placing or maintaining any necessary fiber optic infrastructure on the City’s premises. The Customer shall be responsible for securing any necessary easements on the Customer premises. D. BILLING AND cREDIT: The commercial Customer application and credit provisions in CPAU Rule and Regulation 4 and 6 apply to Fiber Optic Customers with exceptions noted herein and in the Fiber Optic Rate Schedule and license agreement.. CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 2 FIBER OPTICS RULE AND REGULATION 26 Dark fiber service requires an annual payment in accordance with the applicable Fiber Service Rate Schedule. An initial annual payment is due thirty days before service begins. Other services require payment within thirty days of service. SERVICE INTERRUPTION: CPAU will make reasonable efforts to deliver continuous and sufficient utility service to its Customers, but it will not guarantee continuity or sufficiency of supply. CPAU will not be liable for interruption shortage, or insufficiency of utility supply or any loss or damage occasioned thereby. (END) CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-98 CITY OF PALO ALTO UTILITIES Sheet No. - 3 RESOLUTION NO. RESOLUTION OFT HE COUNCIL OF THE CITY OF PALOALTO ESTABLISHING AND AUTHORIZING THE FUNDING OF RATE STABILIZATION RESERVES FOR DISTRIBUTION SERVICE AND SUPPLY SERVICE IN THE ELECTRIC AND GAS UTILITIES, ESTABLISHING A PUBLIC BENEFITS RESERVE IN THE ELECTRIC UTILITY, ELIMINATING AND TRANSFERRING THE BALANCE IN THE GAS FUND SUPPLEMENTAL SUPPLY RESERVE TO THE SUPPLY SERVICE RATE STABILIZATION RESERVE, AND TRANSFERRING CERTAIN FUNDS IN THE RATE STABILIZATION RESERVE FOR THE ELECTRIC UTILITY TO THE CALAVERAS RESERVE WHEREAS, pursuant to its Resolution No. 7207, adopted June 21, 1993, and the Utilities Reserve Policy, the Council established rate stabilization reserves for the electric, gas, refuse, storm drain, wastewater and water utilities to replace the system improvement reserves and the transfer stabilization reserves for these utilities; WHEREAS, the recent deregulation of the electric and natural gas industries has effectedmany changes in the generation, transmission and distribution of electricity and natural gas, and the City has revised its utility reserve guidelines in response to these changes; NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION I. Section 1 of Resolution Number 7207 is hereby revised to’read as follows: "There is hereby created Rate Stabilization Reserves for the Refuse, Storm Drain, Wastewater Collection, Wastewater Treatment, and Water Funds which will replace and incorporate the existing system improvement reserve and transfer stabilization reserve of each fund, as applicable. Rate Stabilization Reserves shall be established in order that the City may anticipate both contingent events, where operational and capital improvement costs of the utilities may be impacted, and current circumstances, where operating costs exceed operating revenues. The levels of the Rate Stabilization Reserves shall.conform to the reserve level guidelines and other criteria set forth in the Utilities Reserve Policy, as such may be amended from time to time, and shall be accounted for or disposed of by action of the Council during the fiscal year in which revenues are placed therein or in the budget of the next succeeding fiscal year." 1980421 syn 0071400 SECTION 2. The Rate Stabilization Reserve in the Electric Fund is hereby replaced by a Distribution Rate Stabilization Reserve and a Supply Rate Stabilization Reserve. SECTION 3. The Rate Stabilization Reserve in the Gas Fund is hereby replaced by a Distribution Rate Stabilization Reserve and a Supply Rate Stabilization Reserve. SECTION 4.~ There is hereby created a Public Benefits Reserve in the Electric Fund. SECTION 5. The Supplemental Supply Reserve in the Gas Fund is hereby terminated and the funds therein is transferred to the Supply Rate Stabilization Reserve in the Gas Fund SECTION 6. The amounts in the Rate Stabilization Reserve for the Electric Fund which are in excess of the limits that are established in the Utility Reserve Guidelines are hereby transferred to the Calaveras Reserve. SECTION 7. The Council finds that the adoption of this resolution is exempted under the CEQA Guidelines under Section 15273 of Title 14 of the California Code of Regulations. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor, APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Utilities 2980421 syn 0071400 ATTACSMKNT SIX RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMPENSATION PLAN FOR CLASSIFIED PERSONNEL (SEIU) ADOPTED BY RESOLUTION NO. Y682TO CHANGE CERTAIN SALARIES AND CLASSIFICATIONS The Council of the City of Palo Alto does hereby RESOLVE as follows: S2~.~hi_l. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Compensation Plan adopted by Resolution No. 7682 is hereby amended by changing certain employee classifications and Salaries, as set forth in Exhibit "A", attached hereto and incorporated herein by reference, effective July I, 1998. S~.Ti~_~. The Director of Administrative Services is hereby authorized to implement the amended classifications and salaries as described in Section I. ~.7~9_~. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED : AYES : NOES : ABSENT: ABSTENTIONS : ATTEST :APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Human Resources 980610 I~ 0031984 CITY OF PALO ALTO COMPENSATION PLAN CLASSIFIED EMPLOYEES EFFECTIVE:Pay period including May 1, 1996 Through April 30, 1998 AMENDED: AMENDED: AMENDED: AMENDED: AMENDED: July 1, 1996 January 1, 1997 May 1, 1997 July 1, 1997 July 1, 1998 t~ oo Z ,.J o Z 0 0 ,-J(J ~’-0 uJ :3 ..J 0 H z 0 0 .-1 .*4 Z 0 Z *-~ ~-0 ,-, ~ -J u.. Z Z 0 la,.l ::3 .-i0~.~,I-.¯ ,.,J l,-.l ~l.iJ i.,i.i.~ 1,,.,4 ;C) C) 0 0 c) 0 0 C~ {3 0 C) C) C) C) C) 0 0 0 C) 0 C) o Z 3- ",; ....~;" 0 nZoo Z o o~=..; Z -Z n~ ..J ~J b_ ATTAGIIMENT SEVEN RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMPENSATION PLAN FOR MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL APPOINTED OFFICERS ADOPTED BY RESOLUTION NO. 7713, AND AMENDED BY RESOLUTION NOS. 7729, 7744 AND 7751, TO CHANGE CERTAIN SALARIES AND CLASSIFICATIONS The Council of the City of Palo Alto does RESOLVE as follows: S2~LT!~I~I. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Management Compensation Plan, adopted by Resolution No. 7713, and amended by Resolution Nos. 7729, 7744 and 7751, is hereby amended by changing the employee classifications and salaries set forth in Exhibit "A", attached hereto and incorporated herein by reference, effective July I, 1998. ~T~_~. The Director of Administrative Services is authorized to implement the amended classifications and salaries as set forth in Section i. ~.~C2~7~I_~. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Human Resources 980610 iac 0031985 © CITY OF PALO ALTO COMPENSATION PLAN Mana~lement and Confidential Personnel And Council A.D_Dointees Effective:Pay period including July 1, through June 30, 1998 Amended 1-1-98 Amended 3:16-98 Amended 7-1-98 1997 ×-",:;6 6 ",:;’ zo ZZ I-- Z o o ZZ0 Z C:) 0 C:) C) I:::) 13 0 0 0 0 C:) 0 0 0 0 C) (3 0 0 0 O 0 Z zo ZZ Z Z Z Z Z o Z ZZ0 o- Z Z RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMPENSATION PLAN FOR FIRE DEPARTMENT PERSONNEL (IAFF) ADOPTED BY RESOLUTION NO. 7730TO CHANGE CERTAIN SALARIES AND CLASSIFICATIONS The Council of the City of Palo Alto does hereby RESOLVE as follows : S.~T~[_I. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Compensation Plan adopted by Resolution No. 7730 is hereby amended by changing certain employee classifications and salaries, as set forth in Exhibit "A", attached hereto and incorporated herein by reference, effective July i, 1998. ~.~_~. The Director of Administrative Services is hereby authorized to. implement the amended classifications and salaries as described in Section i. SE~_~. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES : NOES : ABSENT: ABSTENTIONS : ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Administrative Services Director of Human Resources 980610 ia~ 0031986 CITY OF PALO ALTO COMPENSATION PLAN EFFECTIVE: Pay period including July 1, 1997 Through June 30, 2000 Amended 7-1-98 O0 Z oo ~ CITY OF PALO ALTO Proposed Statement of Investment Policy for 1998-1999 INTRODUCTION As a charter city, Palo Alto operates its pooled idle cash investments under the prudent investor rule and in conformance with California law. This investment policy shall only apply to investments of idle cash made for the purposes of realizing interest earnings, Investments are made with the judgment and care, u,-;~;r th;,,,, -: ............. ,,=,,,=,,,,,,.~= ,,,~,, ,,~,,o ,,, ,,,~ ,.,,,~, which investors with prudence, discretion, and intelligence would make, considering the safety of their capital as well as probable income; and. under the circumstances then prevailing, including but not limited to, the general economic.conditions and anticipated needs of the City. This affords the City a broad spectrum of investment opportunities, so long as the investment is deemed prudent and is allowable under ,~,~,=,,,,,, o, ,,,c State of California law and the charter of the City of Palo Alto. Palo Alto strives to maintain the level of investment of all idle funds as near 100 percent as possible, through daily and projected cash flow determinations. Investments are made so that maturities match or precede cash needs of the City. PHILOSOPHY The basic premise underlying Palo Alto’s investment philosophy is to ensure that sufficient money is always available to meet current expenditures. The City is able to take advantage of the relatively large reserve balances maintained by its utilities and other funds, which allow it to take advantage of the general tendency of the market to provide a higher return for longer-term investments (known as liquidity preference). Up to L;~ 30 percent of the portfolio may be in investments maturing in more than five years. Consequently, in the long run, the City should average a higher total return than most cities without such reserves to invest. The City’s practice is to buy securities and to hold them to their date of maturity rather than. to trade or sell securities prior to maturity date for the sake of improving yield. If securities are purchased and held to their maturity date, then any changes in market value of those securities during their life will have no effect on their principal value at maturity. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, the money markets, and various financial institutions (such as the Federal Reserve System) are monitored carefully to assess the probable course of interest rates. A.UTHORIZED INVESTMENT PERSONNEL Idle cash management and investment transactions are the responsibility of the Administrative Services Department. The Administrative Services Department is under the control of the Director of Administrative Services, as treasurer, who is accountable to the City Manager. The Department is composed of Administration, Accounting, Investments, Revenue Collections, ~ Budget, Purchasing, Real Estate, and Information Technology, as set forth in Sections 2.08.150 of the Palo Alto Municipal Code. The Investment function is under the supervision of the Manager, Investments, Debt and Projects (Manager), who is accountable to the Assistant Director of Administrative Services. The duties of the Manager, ’,,,,,.~,,,,~,,,~, ,..~,, =,,~ P~Gj~ct~, include managing the City’s portfolio of treasury investments, remaining accountable for the City’s treasury balance, developing and monitoring the City’s cash flow model and developing long-term revenue and financing strategies and forecasts. A Senior Financial Analyst/Investments reports to the Manager,,,,,~,,,,,,~,,,o,’ ..... ,___,A ,-,_,.,,.,~,.,, =,,,,--" Pmjeet~. The Senior Financial Analyst/Investments (Analyst) assists the Manager; ,,,,~o,,,,~,,,o, =.~,,, ,=,,,, ,~,j~ct~ in the purchase and sale of securities. The-Serif ~ Analyst also prepares the m,~,nthly quarterly report, and records daily all investment transactions as to the type of investment, amount, yield, and maturity. Cash flow projections are prepared as needed. The Assistant Director of Administrative Services, or designee, is authorized to make all investment transactions allowed by the Statement of Investment Policy. He or she may ......... "-’-"--" Pr mcts ,.,, ,~,.,,,~,, F,,,=,,,,,=I ,-,,,,,,yo,authorize the Manager, l,,,~=t,,,~,,to, ,.,~,,, =,,~, ~,estmef~ or Analyst to enter into investments within clearly specified parameters. In all circumstances approval from the Director of Administrative Services is required before selling securities from the City’s portfolio or before placing an investment with greater than five years’ term. The Manager; ’ .....’---’^ ~’-’-" ---’---’ -,, ,,~o,,,,~, ,,.~, ,.,~,.,, =,,,, P;~j~ct~,,=, ,,, the ,-’~,,,,-,, , ,,,=,,~.,o, ,-,,,=,,x=,, ,,,-~,,,,,,~,,,o and the Analyst may also transfer no more than a total of $5 million a day from the City’s general account to any one financial institution, without the prior approval of the Assistant Director of Administrative Services. No other person has authority to make investment transactions without the written authority of the Assistant Director of Administrative Services. 2 TyPES OF INVESTMENT Permitted investments are limited to the following: 1.Securities of the U.S. Government, or its agencies. This shall include Callable and Multi-step-up securities, provided that: -the potential call dates are known at the time of purchase; -the interest rates at which they "step-up" are known at the time of purchase; and -the entire face value of the security is redeemed at the call date; 2.Certificates of Deposit (or Time Deposits) (CD); 3.Banker’s Acceptance Notes (BA); 4.Short-term Commercial Paper, i.e., maturing in 180 or fewer days; 5.Local Agency Investment Fund (LAIF); 6.Short-term Repurchase Agreements (REPO); 7.City of Palo Alto Bonds; 8.Money Market Deposit Accounts; and 9.Mutual Funds which are limited essentially to the above investments and further defined in note 9 of Appendix A. Appendix A provides .a more detailed description of each investment vehicle and its security and liquidity features. Most of the City’s short-term investments will be in securities which pay principal upon maturity, while long-term investments may be in securities which periodically repay principal, as well as interest. Most of the City’s investments will be at a fixed rate. However, some of the investments may be at a variable rate, so long as that rate changes on specified dates in pre-determined increments. Prohibited Investments: includes all investments not specified above, and in particular: 2. 3. 4. Reverse repurchase agreements Derivatives, as defined in Appendix B Negotiable certificates of deposit Medium-term corporate notes 3 Appendix B provides a more detailed description of each investment which is prohibited for City investment. INVESTMENT CRITERIA Criteria .for selecting investments are (in order of importance): 1.Safety 2.Liquidity, and 3.Yield Use of Brokers and Dealers The Administrative Services Department maintains a list of acceptable brokers and dealers. A broker or dealer is defined as a firm or business, Any broker or dealer must have at least three years experience operating with California municipalities, maintain an inventory of trading securities of at least $10 million, and .be approved by the Assistant Administrative Services Director before being added to the City’s list of approved brokers and dealers. -In addition,-individual traders or agents representing abroker or dealermust have a minimum of one year of experience operating with California municipalities_.. LA broker or dealer will be removed from the list should there develop a history of problems ~ to include: failure to deliver securities as promised, failure to honor transactions as quoted, or failure to provide reasonable or accurate information). S.Decific Investment Strategy Depending upon the City’s financial situation and conditions in the money markets, the investment strategy will change to achieve the appropriate balance of safety, liquidity and yield. Safety. - The primary objective shall be tosafeguard the principal of the funds. O No more than 10 percent of the portfolio in collateralized CD’s of any institution. -An institution must be federally insured; and -Have been in operation for at least three years, with positive earnings for at least three of the past four quarters of operation; and -Report equity in excess of 3 percent of assets; and - Report scheduled items not in excess of 2.5 per of assets. 4 O O O O No more than 30 percent of the portfolio in Banker’s Acceptance Notes, not to exceed 270 days maturity -No more than $5 million with any one institution. No more than 15 percent of the portfolio in commercial paper, not to exceed 180 days maturity. -No more than $3 million with any one institution. Limit investments exclusively to those permitted types of investments. No more than 10 percent of the portfolio in Farm Credit Securities. No more than 2 percent of the portfolio in the Guaranteed Portion of Small Business Administration Notes. O O No more than 20 percent of the portfolio in Mutual Funds., with no more than 10 percent of the portfolio in any one Mutual Fund. No more than 20 percent of portfolio in callable and Multi-step-up agency securities. O All securities shall be delivered to.the City’s safekeeping custodian, and held in the name of the City of Palo Alto, with the exception of the following investments: Certificates of deposit, which will be held by the City itself; City shares in pooled investment funds, under contract; Mutual funds LAIF Liauidity - The secondary objective shall be to meet the liquidity needs of the City. The City’s ability to fund its current cash transactions is assured by appropriate cash flow planning, scheduling the maturity of investments at times when funds are required, and maintaining sufficient liquid funds to support unexpected cash requirements. In this regard, staff reports on a quarterly basis on the availability of funds to meet the expenditure requirement of the next six months. Usually, the longer term the investment the larger degree of interest rate risk. If interest rates increase, it is likely that the long-term investments would decrease in value. This is primarily a factor for securities which have maturities in excess of two years. Since almost all of the investments held by the City of Palo Alto with maturities in excess of two years are U.S. government securities, it is possible to maintain fairly accurate records on the market value of these securities and ~hGw "-,,,~ .... ,, ,=, ,,~,"-’ "’-",,=,~,~’- and the potential loss to interest rate risk. This risk is a part of all long-term investment portfolios and does not become an important factor unless there is a need for-the to sell a security for cash, and the loss (if any) must be realized. As long as the City hae-lYe~=med plans for its cash flow needs, and is able to hold securities to maturity, fluctuations in the market value of the investment during, the time it is held will have no effect on receiving the full face value of the investment’s principal at maturity. The following are liquidity constraints: o Liquidity enough to meet one month’s cash needs. o At least $50 million maturing in less than 2 years. No more than ~ 30 percent of the portfolio shall be in investments maturing in more than five years. Investments placed beyond a five-year term shall be supported by: cash flow projections indicating a plan to hold the funds for an extended period of time; and historical yield information that indicates available longer term yields are attractive, relative to historical yields. O Any security purchased with a maturity greater than 10 years may pay principal, as well as interest, on a periodic basis. O Should the ratio of the market value of the portfolio to the cost basis of the portfolio fall below 95 percent, the Administrative Services Department will report this fact to the City Council within a reasonable time frame and evaluate whether there is any risk of holding any of the securities to maturity. Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing. ~ - The third objective shall be to achieve a return on the funds. After safety and liquidity, yield, which is defined as the return on an investment, will be the third criteria for investments, =,,~, ,,,,,~,y =,,~, ,,~,~,~. Whenever possible, the City will obtain three or more bids on the purchase or sale of comparable securities and take the higher yield on purchase or higher price on sale. This rule will not apply to new issues which are purchased at market no more than three (3) working days before pricing, as well as LAIF, City of Palo Alto bonds, money market accounts e~ and mutual funds, all of which shall be evaluated separately. 6 POLICY REVIEW AND REPORTING ON INVESTMENTS Monthly, the Administrative Services Department will review performance in relation to the Council-adopted Policy. Quarterly, the Department will report to the-Council on: ~ :’ its performance in mtatio~ comparison to th~ policy, af~d explain any ~ variances from the policy, af~d provide any recommendations for policy changes, ~ and discuss overall compliance with the City’s InvestmentPolicy. ,,, ,,,~ ,~,,=,,~,,x ;~.pc,,"t, In addition, the Department will provide to the-Council with adetailed list of all securities, investments and monies held by the City, e~Ll’epe~-e~ ,-, :~..,_,, ,-- ,-,,,x = =nv;stm~r,t, ~,,,,,x, and report on the City’s ability to meet the expenditure requirements ef-the-eiby-fe~ over the next six months. Annually, the Administrative Services Department Will present t~e a Proposed Statement of Investment Policy, to include the delegation of investment authority, to the City Council for review during the annual budget process. Th~ " ..... :’ ""~" .... = .... "";- --’: ......... ’"’ -" ; th ~" -’ " P All proposed changes in policy must be approved by the Council prior to implementation. Amended Amended by City Council June 23, 1986. Amended by City Council June 22, 1987. Amended by City Council August 8, 1988 Amended by City Council November 28, 1988. Amended by City Council June 26, 1989. Amended by City Council May 14, 1990. Amended by City Council June 24, 1991. Amended by City Council June 22, 1992. Amended by City Council June 23, 1993. Amended by City Council November 18, 1993. Amended by City Council June 20, 1994. Amended by City Council June 19, 1995. Amended by City Council June 24, 1996 Amended by City Council June 23, 1997 Adopted by City Council October 22, 1984. Monthly reporting effective January 1985. Amended and Adopted by City Council June 24, 1985. by City Council December 2, 1985. Amended by City Council January 26, 1998 Amended by City Council June __, 1998 APPENDIX A EXPLANATION OF PERMITTED INVESTMENTS U.S. Government Agency Securities. U.S. Government Agency Obligations include the securities of the Federal National Mortgage Association (FNMA), Federal Land Banks (FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA), Small Business Administration (SBA), Federal Farm Credit (FFC) and Tennessee Valley Authority (TVA). Federal Agency securities are debt obligations that essentially result from lending programs of the Government. Federal agency securities differ from other types of securities, as well as among themselves. Their characteristics depend on the issuing agency. It is possible to distinguish three types of issues: (A) participation certificates (pooled securities), (B) Certificates of interest (pooled loans), © notes, bonds, and debentures. The securities of a few agencies are explicitly backed by the full faith and credit of the U.S. Government. All issues, however, have de facto backing from the federal government, and it is highly unlikely that the government would let any agency default on its obligations. Certificates of De.~osit. A certificate of deposit (CD) is a receipt for funds deposited in a bank, savings bank, or savings and loan association for a specified period of time at a specified rate of interest. Denominations are $100,000 and up. The first $100,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if the deposit is with a bank or savings bank, or the Savings Association Insurance Fund (SAIF), if the deposit is with a savings and loan. CDS with a face value in excess of $100,000 can be collateralized by U.S. Government Agency and Treasury Department securities or first mortgage loans. Government securities must be at least 110 percent of the face value of the CD collateralized in excess of the first $100,000. The value of first mortgages must be at least 150 percent of the face value of the CD balance insured in excess of the first $100,000. Generally, CDS are issued for more than 30 days and the maturity can be selected by the purchaser. Bankersi.Acceptance. A Banker’s acceptance (BA) is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable staple commodities. In over 70 years of usage in the United States, there has been no known instance of principal loss to any investor in BAs. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by definition, these commodities are readily marketable. The sale of the underlying goods generates the necessary funds to liquidate the indebtedness. BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with BA dealers. BAs are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed. Commercial Pa.~er. Commercial paper notes are unsecured promissory notes of industrial corporations, utilities, and bank holding companies. Interest is discounted from par and calculated using actual number of days on a 360-day year. The notes are in bearer form, with maturities from one to 180 days selected by the purchaser, and denominations generally start at $100,000. There is a small secondary market for commercial paper notes and an investor may sell a note prior to maturity. Commercial paper notes are backed by unused lines of credit from major banks. Some issuer’s notes are insured, while some are backed by irrevocable letters of credit from major banks. State law limits a City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating for the issuer’s debentures. Cities may not invest more than 30 percent of idle cash in commercial paper. Local Agency Investment Fund Demand Deposit. The Local Agency Investment Fund (LAIF) was established by the State to enable treasurers to place funds in a pool for investments. The City is limited to an investment of the amount allowed by LAIF (currently $20 million). LAIF has been particularly beneficial to those jurisdictions with small portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield. Repurchase Agreements, A Repurchase Agreement (REPOS) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. The agreement normally can run for one or more days. The investor puts up funds for a certain number of days at a stated yield. In return, the investor takes title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller. Money Market D.eposit Accounts. Money Market Deposit Accounts are market- sensitive bank accounts, which are available to depositors at any time, without penalty. The interest rate is generally comparable to rates on money market mutual funds, though any individual bank’s rate may be higher or lower, These accounts 2 o are insured by the Federal Deposit Insurance Corporation or the Savings Association Insurance Fund. Mutual Funds. Mutual funds are shares of beneficial interest issued by diversified management companies, as defined by section 23701 M of the Revenue and Taxation Code. To be eligible for investment, these funds must: Attain thehighest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or o Have an investment advisor registered with the Securities and Exchange Commission with not less than five years experience investing in the securities and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section 53601 of the Califomia Govemment Code, and with assets under management in excess of five hundred million dollars; and Co Invest solely in those securities and obligations authorized by Sections 53601 and 53635 of the California Government Code. Where the Investment Policy of the City of Palo Alto may be more restrictive than the State Code, the Policy authorizes investments in mutual funds which shall have minimal investment in securities otherwise restricted by the City’s Policy. Minimal investment is defined as less than 5 percent of the mutual fund portfolio; and do The purchase price of shares of beneficial interest purchased shall not include any commission that these companies may charge. Callable Securities and Multi-Sternums: Callable securities are defined as fixed interest rate government agency securities, that give the issuing agency the option of returning the invested funds at a specific point in time to the purchaser. Multi- step-ups are government agency securities in which the interest rate increases ("steps-up") at preset intervals, and which also have a callable option that allows the issuing agency to retum the invested funds at a preset interval. Callable and multi- step-ups are permitted, provided that: -the potential call dates are known at the time of purchase; - the interest rates at which they "step-up" are known at the time of purchase; - the entire face value of the security is redeemed at the call date; APPENDIX B EXPLANATION OF PROHIBITED INVESTMENTS ° Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a contractual agreement by the investor (e.g. local agency) to post a security it owns as collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a specific period of time, at an agreed-upon interest rate. During the period of the agreement, the local agency may use this cash for any purpose. At maturity, the securities are repurchased from the bank or dealer, plus interest. California law contains a number of restrictions on the use of Reverse REPOS by local agencies. Derivatives: A derivative is a financial instrument created from, or whose value depends on (is derived from), the value of one or more underlying assets or indices. The term "derivative" refers to instruments or features, such as collateralized mortgage obligations, forwards, futures, currency and interest rate swaps, options, caps and floors. Except for those callable and multi-step-up securities as described under "Permitted Investments," derivatives are prohibited. Certain derivative products have characteristics which could include high price volatility, liquid markets, products that are not market-tested, products that are highly leveraged, products requiring a high degree of sophistication to manage, and products that are difficult to value. According to California law, a local agency shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Negotiable Certificates of De.Posit Negotiable Certificates of Deposit (NCDs) are usually supported only by the strength of the issuing institution, but can be so.ld at any time and, thus, provide liquidity. Medium-Term Commercial Paper or Comorate Not~,: Medium-term notes are unsecured corporate notes ranging from nine months to a maximum of five years maturity. Commercial paper with a term of six to nine months is not a permitted investment for local agencies in California. APPENDIX ONE GENERAL FUND SUMMARY OF CHANGES TO 1998-99 BUDGET ($ooo’s) Item Original City Manager’s 1998-99 Proposed Budget Net Increase to General Fund Reserves Finance Committee Changes: Increase Senior Assistant Attorney FIE by .25 Funding for full year of Special Events Shuttle Funding for Senior Home Repair Funding for La Comida Expenditures and revenues for Sand Hill Corridor Project Subtotal of Changes Staff Recommended Changes: Fully funding City’s share of Air Conditioning at Fire Station Six CIP 19909 Funding for tennis court screens Funding to increase hourly rate of certain library staff Equipment for the EOC (from Reserves for Emergencies) Historic Interim Regulations Canine expenses paid for in 1997-98 Sound equipment purchases made in 1997-98 City share of upgrade to Police Information Network Subtotal of Changes Other Changes: Reclass and increase FTE in City Clerk’s Office Net Positive (Negative) Impact of All Recommended Changes ($311 ($111 ($5) $165 $113 ($101 ($1o3 ($161 ($228) ($351 $9 $3 ($4’~ ($2911 ($26: APPENDIX TWO City of Palo Alto 1998-99 General Fund Summary ($O00’s) Revenues Sales Taxes Property Taxes Utility Users Tax Transient Occupancy Tax Other taxes, fines & penalties Service fees and permits Charges to Other Funds Rental Income Other Revenues Total Revenues Plus Operating Transfers In Residual Equity Transfer Expenditures Adminsitrative Departments Community Services Fire Planning Police Public Works Non-Departmental Contingency for Prop 218 Total Expenditures Operating Transfers Out Adjustment for Negotiated Salary Increases 1996-97 1997-98 Actuals Adopted Budget 1997-98 %-~PrOp6~edl Budget 18,277 19,995 19,700 7,735 8,177 8,370 5,509 5,414 5,485 5,107 4,900 5,700 5,299 5,253 5,718 9,087 8,365 8,782 6,938 7,411 7,701 9,667 8,211 9,837 7,978 10,351 9,590 75,597 78,077 80,883 12,759 12,962 12,893 11,876 12,729 13,712 16,514 17,466 18,204 12,841 12,723 13,336 4,498 4,666 5,118 15,354 15,856 16,245 9,970 10,748 11,236 4,816 8,168 6,412 1,000 1,000 75,869 83,356 85,263 7,212 1,544 Changes % Proposed Change 500 . 2.5% 230 2.7% 122 2.2% 171 3.0% 143 2.5% (150)-1.7% 579 7.5% 267 2.7% 67 0.8% 1,929 2.4% 6,468 6,090 to Adjusted Budget 35 27.3% 919 5.0% 425 3.2% 41 0.8% 445 2.7% 167 1.5% 2,778 43.3% (I,000)-100.0% 3310 45% (1,037) 14.4% Preliminary 1998-99 General Fund Reserves Changes and Balances Reserves Budget Stabilization Reserve Infrastructure Reserve for Streets and Sidewalks Reserve for Emergencies Reserve for Encumbrances and Reappropriations Stores Inventory and Notes Receivable 1996-97 1997~98 1997-98 1998-99~ Actual Adopted Adjusted Proposed Changes Changes Changes 17,900 1,751 (1,588)1,379 8,152 2,732 0 428 (158)(87)(341) 5,600 (1,300)(228) 3,706 2,789 S38,575 Sl,593 (S243)S810 APPENDIX THREE CITY OF PALO ALTO 1998.99 UTILITY FUNDS SUMMARY ($000) REVENUES Net Sales Interest Income Other Income EXPENDITURES Utility Purchases Treatment Plant Charges Refuse Collection Services Salaries & Benefits Other Expenses Allocated Charges Debt Service Subtotal Equity Transfer Rent Other Transfers Capital Improvement Protein Wastewater Storm Wastewater.- ~-..,.,~,,Electric Gas Water Refuse .......Collection Drainage TreatmentFund Fund Fund FundFund Fund Fund 64,828 15,210 8,906 12,150 18,574 2,124 11,994 5,046 1,028 759 622 692 333 500 7,783 717 654 959 2,299 0 67 25,527 9,375 0 4,620 0 0 0 0 0 4,340 0 0 0 0 0 0 0 0 7,380 0 0 6,571 2,296 977 2,108 2,277 605 5,053 5,168 788 342 806 6,582 384 4,061 4,069 2,077 1,017 1,552 1,503 465 1,016 11,259 0 313 0 397 1,063 688 52,594 14,536 6,989 9,086 18,139 2,517 10,818 7,316 2,475 0 2,044 2,174 189 103 792 188 114 49 119 5,688 1,725 1,705 1,095 0 0 0 4,289 0 0 64 31 20 136 2,080 CITY OF PALO ALTO UTILITY FUNDS RESERVES SUMMARY ($000) ELECTRIC FUND Emergency Plant Replacement Rate Stabilization Reserve Calaveras Central Valley Project O & M Shasta Rewind Lgan Subtotal GAS FUND Emergency Plant Replacement Rate Stabilization Reserve Gas Supplemental Supply Subtotal WASTEWATER COLLECTION FUND Emergency Plant Replacement Rate Stabilization Reserve Subtotal WATER FUND Emergency Plant Replacement Rate Stabilization Reserve Subtotal REFUSE FUND Rate Stabilization Reserve Water Resources Board Subtotal 1998-99 PROPOSED CHANGES 53 15,334 0 (1,480) $9,697 32 (2,116) 0 16 1,457 $1,473 25 570 $595 (927) o ($927) 1997-98 COUNCIL GUIDELINES 3,788 9,500- 19,000 46,925 - 92,745 1,395 3A01 - 6,802 1,007 2,526 - 5,052 1,337 3,666 - 7,865 1,857 - 3,715 STORM DRAIN FUND Rate Stabilization Reserve Subtotal WASTEWATER TREATMENT FUND Emergency Plant Replacement Rate Stabilization Reserve Subtotal TOTAL Emergency Plant Replacement Rate Stabilization Reserve Calaveras Cenu’al Valley Project O & M Shasta Rewind Loan Water Resources Board Gas Supplemental Supply 1997-98 ADOPTED CHANGES (227) 1998-98 COUNCIL GUIDELINES 88 (445) ($3~) 214 (5,898) 15,334 0 (~,480) 0 0 1,421 1,799- 3,598 APPENDIX FOUR 1998-99 Capital Improvement Fund Financial Summary Actual Adjusted 1996-97 1997-98 REVENUE Outside Revenue Stanford University Other Agencies Subtotal Operaang Transfers In General Fund Street Improvement Fund (Gas Tax) Traffic Mitigation Parking District Funds Utility Funds Debt Service Fund Equipment Replacement Fund Equipment Maintenance Fund Downtown Plan~ed Community Zone Subtotal Operating Transfers In Other Financing Bond Proceeds Subtotal Other Financing TOTAL SOURCE OF FUNDS Capital Project Expenditures TOTAL USE OF FUNDS NET TO (FROM) RESERVES 10,154 12,000 509,301 208,000 $819,455 S220,000 5,662,596 4,980,151 1,314,653 1,320,000 4,250 150,000 39,000 516,382 532,000 50,000 40,000 75,0O0 65,000 250,000 $7,661,881 $7,337,151 5,400,000 5A00;000 $8,181,336 $12,957,151 $6,336,486 $12,957,151 $6,336,486 $12,957,151 1998-99 Changes (2,400) (141,500) (~43#00) 129,199 (~o,ooo) (150,000) 0 (175,750) 0 (40,000) (65,0O0) (250,000) (611,551) (5,400,000) (5,400,000) ($6,1ss,45D ($6,155,451) ($6,1SS,451) Summary of 1998-2003 Proposed Capital Improvement Projects by Fund 1998-99 1999-00 2000-01 2001-02 2002-03 General Fund CIP Projects Less Reimbursements Net General Fund Support Street Improvement Fund Less Reimbursements Net Street Improvement Fund 5,541,700 2,410,000 2,005,000 1,630,000 1,661,750 (785,475)(231,600)(25,000)(50,000)(94,350) 4,746,225 2,178,400 1,980,000 1,580,000 1,567,400 1,260,000 1,140,000 980,000 980,000 980,000 0 0 0 0 0 $1,260,000 $1,140,000 $980,000 $980,000 ¯$980,000 Less Reimbursements (785,475) (231,600) (25,000) (50,000) (94,350) 2 1998-2003 CAPITAL IMPROVEMENT PROJECTS Project Key TBD - project costs to be determined GENERAL FUND Parks and Open Space Projects MitchellPark Facilities Improvements 19803 Foothills Park Water Management System 19605 Irrigation Improvements 19414 Net Subtotal Parks and Open Space Projects Infrastructure Projects 1998-99 1999-00 2000-01 2001-02 III I1’11’111 I 2002-3 228,t300 TBD 250,000 355,000 $1,201,000 $200,000 $200,000 $0 Total 1998-03 228,000 250,000 355,000 $1,601,000 1998-2003 CAPITAL IMPROVEMENT PROJECTS Project 1998-99 1999-00 2000-01 2001-02 2002-3 Downtown Urban Design Improvements 19608 Facility Roof Replacement 19514 Fuel Storage Tanks Upgrade 19205 Sidewalk Repairs 18903 Sa’eet Maintenance 9630 Net Subtotal Infrastructure Projects Technology Projects 250,000 250,000 250,000 200,000 TBD TBD TBD 50,000 650,000 650,000 650,000 650,000 1,130,000 800,000 800,000 800,000 $3,006,500 $1,700,000 $1,700,000 $1,450,000 $1,450,000 Geographic Information System Application 19618 **Reimbursement from Enterprise Funds Net subtotal Technology Projects 277,000 225,000 75,000 150,000 181,750 (152,400)(150,000)(25,000)(50,000)(94,350) $798,350 $248,400 $50,000 $100,000 $87,400 Total 1998-03 750,000 200,000 50,000 3,250,000 4,330,000 $9,306,~00 (471,750) $1,284,150 1998-2003 CAPITAL IMPROVEMENT PROJECTS Project Miscellaneous Projects An in Public Places 18617 Net subtotal Miscellaneous Projects Total General Fund Projects **Enterprise Fund Reimbursements **Stanford Reimbursements **Other Reimbursements Net Expense to the General Fund Funding Available Release of funds for A Level Remodel CIP Release of funds for MSC Security Improvements CIP Subtotal additional reimbursements/funds to General Fund Subtotal additional reimbursements/funds to ¯ Enterprise Funds STREET IMPROVEMENT FUND Arastradero Road Bike Lane Improvements 19815 Wilkie Way Bicycle Bridge Renovation and Structural Improvements 19708 El Camino Real Intersection Safety Improvements 19523 Street Maintenance 9630 1998-99 1999-00 2000-01 2001-02 2002-3 30,000 30,000 30,000 30,000 30,000 $103,~00 $30,000 $30,000 $30,000 $30,000 $5,541,700 $2,410,000 $2,005,000 $1,630,000 $1,661,750 (356,250)(231,6(X))(25,000)(50,0(10)(94,350) (9,600)0 0 0 0 (66,500)0 0 0 0 $5,109,350 $2,178,400 $1,980,000 $1,$80,000 $I,.~7,400 (270,000) (300,000) (353,125) 110,000 145,000 15,000 TBD 1,150,000 980,000 980,000 980,000 980,000 i Total 1998-03 150,000 $13,248,450 (757,200) (9,600) (66,500) S12,415,150 (270,000) (300,000) 110,000 15,000’ 5,070,000 PROJECT DESCRIPTION This is a joint project between Stanford University and Palo Alto to provide air conditioning at Fire Station Six,. which is located on the Stanford Campus. The building is currently not air conditioned. The project will consist of the installation of duct work, vents, and an air conditioning system to service the entire building. Stanford will lead the project. The funding reflects the maximum City contribution. PROJECT JUSTIFICATION Fire Station Six serves as the fire station for the Stanford Campus area, and also houses the offices of the Deputy Chief of Operations, the Deputy Chief of Support Services, the three Shift Battalion Chiefs, Training Staff, and a clerical support person. All personnel, with the exception of the clerical support person, are essential personnel, and thus must remain at the facility when on-duty. The building has a tile roof, and during summer days it is common for the temperature to exceed 90 degrees. Because the roof retains and traps in the heat, the temperature remains uncomfortably high even after sunset. This project will rectify this situation. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 1998-99 1999-00 2000-01 2001-02 2002-03 AMOUNT $100,000 COMPONENTS Support Stanford University to evaluate building design and seek bids for the design and installation of an air conditioning system for the entire building. Sources of Funding: General Fund to pay for 50 percent of the project, up to $100,000. IMPACT AND SUPPORT ANALYSIS Environmental: Design Elements: Operating: Telecommunications: Categorically exempt from CEQA under section 15301, minor change to existing facility. May be subject to Architectural Review Board review for any external changes. The CIP Design Consultant is available for consultation. None. None. COMPREHENSIVE PLAN The Comprehensive Plan contains no policies or procedures directly related to this project. 1998-2003 Capital Improvement Projects Electric Fund Commercial Telecommunications 1998-99 1999-00 2000-01 2001-02 2002-03 Fiber Optic Customer Design and Connection Services (9802) **Reimbursement by Customers Fiber Optic Network System Improvements (9801) Net subtotal Commercial Telecommunications 400,000 320,000 320,000 240,000 (400,1300)(320,000)(320,000)(240,000) 200,000 206,000 212,000 218,000 $200,000 $206,000 $212,000 $218,000 160,000 (160,000) 224,000 $218,000 Distribution System-Customer Design and Connection Services Services, Transformers, and Meters (8928) **Reimbursement by Customers Net subtotal Distribution System - Customer Design and Connection Services 1,500,000 1,575,000 1,654,000 !,736,000 1,824,000 (255,000)(272,000)(289,000)(306,000)(323,000) $1,265,000 $1,635,000 $1,365,000 Sl,430,000 $1,501,000 Distribution System-System Improvements TOTAL 1998-2003 1,440,000 (1,44o,ooo) 1,060,000 $1,o6o,ooo 8,289,000 (~,445,000) $7,196,000 System Reconsa’uction and Improvements (9803) Substation Transformer Replacement (9510) Substation Protection Improvements (8938) Substation Facility Improvements (8944) Utilities Customer Information System (9357) **Reimbursement from other Utility Funds. Embarcadero/Seale/Middlefield Underground Conversion District #37 (9611) Oregon/Colorado/Cowper Underground Conversion District #38 (9804) **Reimbursement by PacBell and Cable TV Middlefield/Cowper/Colorado/ Oregon Underground Conversion District #39 (0101) **Reimbursement by PacBell and Cable TV Colorado/Ross/Oregon/ Middlefield Underground Conversion District #40 (0301) **Reimbursement by PacBell and Cable TV Net Subtotal Distribution System - System Improvements General Services-Street Lights Street Light Replacements (9354) 1998-99 1,500,000 130,000 100,000 100,000 355,000 (149,100) 80,000 0 0 0 0 $2,769,150 $104,000 1999-00 1,600,000 0 105,000 105,000 o o 2,615,000 (1,046,000) 0 0 0 0 $4,089,000 $107,000 2000-01 1,700,000 0 110,000 110,000 0 0 0 85,000 (34,000) 95,000 (38,000) $3,338,000 $111,000 2001-02 1,800,000 0 115,000 115,000 0 0 0 0 2,705,000 (1,082,000) o $115,000 2002-03 1,900,000 ! -0 120,000 120,000 0 0 9O, OO0 (36,000) 100,000 (40,000) $2,754,0O0 $119,000 TOTAL 1998-2003 8,500,000 130,000 550,000 550,000 355,000 (149,100) 80,000 (1,080,000) 2,890,000 (1,156,000) 100,000 (40,000) $17,823,150 $556,000 1998-99 1999-00 2000-01 2001-02 2002-03 General Services-Traffic Signals Traffic Signals Upgrade (8930) General Services- Communications Communications Systems Improvements (8931) Net Subtotal General Services Reimbursements to the General Fund Total Net Electric Fund Requests $180,000 $205,000 $489,000 $167,835 $4,678,985 $380,000 $152,000 $639,000 0 $6,369,000 $170,000 $159,000 $5,155,000 $175,000 $167,000 $457,000 0 $6,778,000 $180,000 $175,000 $474,000 o $4,753,000 TOTAL! 1998.2003 $1,085,000 $858,000 $2~99,000 $167,835 $27,773,985 PROJECT DESCRIPTION This project purchases and installs new services, transformers and meters, as needed, to deliver electric power to customers and to meter electric services for billing. Typical activities include: installation of services, transformers, and meters for new customers, upgrading of existing services, temporary service connections, and overhead and underground extensions for new or existing customers. PROJECT JUSTIFICATION This project provides funding for the connection of new customers and the upgrading of existing services. These are critical functions required for the Electric Utility to provide electrical service to the City’s customers. During a typical year, over 200 electric services are installed or upgraded in the City. The budget includes an increase of approximately $350,000 in the funding for this project due to the high level of construction and redevelopment activity occurring in the City. FUTURE FINANCIAL REQUIREMENTS, FISCAL YEAR PY Budget 1998-99 1999-00 2000-01 2001-02 2002-03 AMOUNT Ongoing $1,500,000 $1,575,000 ¯ $1,654,000 $1,736,000 $1,824,000 COMPONENTS Increase funding to support increase in new customer requests. Sources of Funding: Electric Fund, with partial reimbursement by customers. IMPACT AND SUPPORT ANALYSIS Environmental: Design Elements: Operating: Telecommunications: Categorically exempt under Section 15302 of CEQA, replacement of existing utility systems. None. None. None. COMPREHENSIVE PLAN This project furthers Policy 14 of the Environmental Resources Element of the plan relating to minimizing the risk to human life and property. 10 P PROJECT DESCRIPTION This project provides funding as needed to improve the electric distribution system. Typical activities include: increasing system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system to improve service reliability, repairing and replacing storm damaged equipment, and general improvements to the system. PROJECT JUSTIFICATION Electric system service i’eliability and adequate system capacity are critical to providing a high level of service to customers in Palo Alto. When service interruptions occur, customers can experience significant economic losses. As part of our efforts to continue providing a high level of service to our customers, we must continuously evaluate service reliability needs and make improvements to the system to meet those needs. Service reliability, adequate system capacity, and rates will be critical factors in maintaining customers during deregulation. The activities in this project provide the facilities and system improvements to maintain our existing level of service. Some of the specific needs addressed include the review and modification of the systems to improve reliability for customers who have critical industrial and medical enterprises which are sensitive to interruption, and system facility upgrades needed due to new development. The Electric Utility also has many capital items that are reaching the end of their useful life and are in need of replacement. One of the most critical items needing replacement are deteriorated poles. The Electric Utility currently has approximately 6000 poles in the system with a 40 year expected life. Records indicate that over 2000 poles on the system are over 40 years of age. In addition to the age shown in the pole records, field inspections are identifying a significant percentage of the poles are deteriorated. To maintain system reliability, pole replacements will need to be accelerated from 150 to 250 poles a Year for the next 5 years. The approximate cost of the increased replacement is $500,000 per year. In addition to the poles, the City also has a large number of open wire secondary systems that have also reached the end of their useful life. These systems will also need to be replaced. This work will occur during the pole replacements. 11 FISCAL YEAR PY Budget_ 1998-99 1999-00 2000-01 2001-02 2002-03 AMOUNT Ongoing $1,500,000 $1,600,000 $1,700,000 $1,800,000 $1,900,000 COMPONENTS Increase pole replacements from 150 to 250 poles per year. Continue pole replacements at 250 per year. Continue pole replacements at 250 per year. Continue pole replacements at 250 per year. Continue pole replacements at 250 per year. Sources of Funding: Electric Fund. IMPACT AND SUPPORT ANALYSIS Environmental: Design Elements: Operating: Telecommunications: Categorically exempt under Sex:don 15302 of CEQA, replacement of existing utility facilities. None. None. None. COMPREHENSIVE PLAN This project furthers Policy 14 of the Environmental Resources Element of the plan relating to minimizing the risk to human life and property. 12 PROJECT DESCRIPTION This project is the initial phase of a project to rebuild portions of the underground system in the Stanford Research Park. The first phase will include projects along Hillview between Foothill Expressway and Arastradero. The projects will improve system reliability by focusing on: eliminating equipment where possible to simplify systems and reduce outage risk; replacing underground equipment with padmounted equipment; replacing deteriorated elbows; installing straight splices in place of T-Body elbows; rerouting cables; providing improved racking and support for cables in vaults; providing local loops where appropriate, testing and replacing underground cables; and improving labelling of switch positions PROJECT JUSTIFICATION In the deregulated market the ability to provide reliable service will be critical to retaining customers. Underground installation in the Stanford Research Park began in the mid 1960s. Many of the cables now installed in the business park are over 30 years old, which was the expected life of the cable when it was installed. One of the key factors in maintaining high reliability in an underground area is that equipment must be replaced prior to failure. Once systems begin to reach their life expectancy and fail, failure rates begin increasing exponentially. The increasing failure rates can destroy customer service reliability and confidence before the problem can be brought back under control. Today’s electric customers have higher reliability needs due to installation of computer driven processes and systems. The system installed in the 1960s was designed to meet the service requirements of that time. Today, many companies run 24 hour computer or process operations that do not allow for shutdowns for the utility to perform routine maintenance on the electric system. As part of this project, the system would be improved so that routine maintenance can be performed without shutting customers down. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 1998-99 1999-00 2000-01 2001-02 2002-03 AMOUNT $200,000 $500,000 $500,000 $500,000 $500,000 COMPONENTS Reconfigure and replace system near Coyote and Hillview. Reconfigure and replace system near Page Mill and Hanover. Reconfigure and replace system near California and Hanover. Reconfigure and replace system near Arastradero and Hillview. Reconfigure and replace system near El Camino Real and Page Mill Sources of Funding: Electric Fund. 13 IMPACT AND SUPPORT ANALYSIS Environmental: Design Elements: Operating: Telecommunications: Categorically exempt under Section 15302 of CEQA, replacement of existing utility facilities. Screening will be considered. CIP Design Consultant is available for consultation. Project is subject to Architectural Review Board review. Reduced maintenance expense as older equipment is retired and replaced with new equipment. None COMPREHENSIVE PLAN This project furthers Policy 14 of the Environmental Resources Element of the plan relating to minimizing the risk to human life and property. 14 1998-2003 Capital Improvement Projects Gas Fund 1998-99 1999-00 2000-01 2001-02 2002-03 Distribution System-Customer Design and Connection Services Gas System Extensions (8017)628,000 386,000 **Reimbursement by Customers (533,500)(289,500) Net Subtotal Distribution System ~ Customer Design and $94,500 $96,500 Connection Services 394,000 402,000 411,000 (295,500)(301,500)(308,250) $98,500 $100,500 $102,750 Distribution System-System Improvements Gas Meters and Regulators (8019)200,000 206,000 212,000 Net Subtotal Distribution System - System Improvements $1,083,333 $2,585,000 $2,662,000 219,000 232,000 $2,743,000 $2,831,000 Reimbursement to General Fund $38,843 Reimbursement to Electric Fund $74,850 I Total Net Gas Fund Requests $1,291,526 $2,681,500 $2,760,500 $2,843,500 $2,933,750 Total 1998-2003 2,221,000 (1,728,250) $492,750 1,069,000 $11,904,333 $38,843 $74,850 $12,510,776 15 PROJECT DESCRIPTION This ongoing project extends the gas distribution system to provide gas service to new customers and augments service to customers with increased natural gas demands. Improvements include new mains, meters, valves, services and appurtenances. PROJECT JUSTIFICATION This ongoing project upgrade= infrastructure in order to provide gas connections to serve new customers and to respond to changes in gas service requirements due to redevelopment. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR AMOUNT COMPONENTS PY Budget Ongoing 1998-99 $628,000 1999-00 $386,000 2000-01 $394,000 2001-02 $402,000 2002-03 $411,000 Sources of Funding: Gas Fund with partial reimbursement by customers. IMPACT AND SUPPORT ANALYSIS Environmental:Categorically exempt under Section 15302 of CEQA, replacement of existing utility Design Elements: Operating: Telecommunications: facilities. Individual sites and locations to be reviewed by CIP Design Consultant. None. None. COMPREHENSIVE PLAN This project furthers Policy 5 of the Environmental Resources Element related to ensuring Palo Alto’s long-term supply of electricity, natural gas and water. 16 1998-2003 Capital Improvement Projects Wastewater Collection Fund 1998-99 1999-00 2000-01 2001-02 2002-03 Collection System-Customer Design and Connection Services Wastewater ColLection System Extension (8020) **Reimbursement by Customers Net Subtotal Collection System - Customer Design and Connection $51,000 $51,500 Services 325,000 206,000 212,000 218,000 225,OO0 ($274,000) ($154,500)($159,000)($163,500)($161,250) ,53,000 $54,500 $63,750 Collection System-System Improvements Net Subtotal Collection System -- System Improvements $1,380,000 $4,932,400 $~,080,000 $5,160,000 Reimbursement to General Fund $24,489 Reimbursement to Electric Fund $24,950 Total Net Wastewater Collections Fund Requests $1,480,439 $4,983,900 $5,133,000 $5,214,500 $5,063,750 Total 1998-2003 1,186,000 ($912,250) $273,750 $24,489 $24,95O $21,87S,589 17 PROJECT DESCRIPTION This ongoing project provides for the installation of sewer lateral connections and accessories off existing mains and extensions of mains for new or existing customers. PROJECT JUSTIFICATION It is necessary to provide sewer connections to serve new customers and to respond to changes in sewer requirements due to redeveloFment. In .addition, old existing sewer service laterals become cracked and broken by tree .root intrusion, ground movement and third party excavation damage, which requires the laterals to be replaced. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 1998-99 1999-00 2000-01 2001-02 2002-03 AMOUNT Ongoing $325,000 $206,000 $212,000 $218,000 $225,000 COMPONENTS Sources of Funding: Wastewater Collection Fund with partial reimbursement by customers. IMPACT AND SUPPORT ANALYSIS Environmental: Design Elements: Operating: Telecommunications: Categorically exempt under Section 15302 of CEQA, minor changes to existing util- ity facilities. Trenching work will be coordinated with the Public Work’s Department Five-Year Paving Plan and other utility and street repair projects. Tree roots will be protected during trenching. None None. COMPREHENSIVE PLAN This project furthers Policy 4 of the Environmental Resources Element related to reducing the negative impacts of human activities on plant and animal life. 18 1998-2003 Capital Improvement Projects Water Fund 1998-99 1999-00 2000-01 2001-02 2002-03 Distribution System-Customer Design and Connection Services Water System Extensions (8013) **Reimbursement by Customers Net Subtotal Distribution System - Customer Design and Connection Services 341,000 226,000 232,000 239,000 246,000 (286,000) (169,500) (174,000) (179,250) (184,500) $55,000 $56,500 $58,000 $59,750 $61,500 Distribution System-System Improvements Service and Hydrant Replacement (8014) Water Meter (8015) Net Subtotal Distribution System - System Improvements 71,000 73,000 75,000 77,000 80,000 205,000 211,000 217,000 223,000 243,000 $756,000 $2,694,000 $2,851,000 $2,761,000 $2,SSS,000 Reimbursement to General Fund $69,122 Reimbursement to Electric Fund $49,900 I Total Net Water Fund Requests $930,022 $2,750,500 $2~09,000 $2,820,750 $2,919,500 Total 1998-2003 1,284,000 (993,250) $290,750 376,000 1,o99,ooo $11,920,000 $69,122 $49,900 $i2,329,772 19 PROJECT DESCRIPTION System extensions are required to provide service to new customers and to serve existing customers who are requesting expanded service. These improvements include new main extensions, valves, domestic services, meters on upgraded existing services, backflow devices, fire services, and fire hydrants. PROJECT JUSTIFICATION Changes in land use, the development of unimproved properties, and the redevelopment of existing sites require the Water Utility to adapt to meet the needs of customers. While new customer growth remains stable, requests for larger domestic and fire water services continues. The project may include improving water utility system operations and bringing existing customer services into compliance with current State laws and codes. This is an ongoing utility project consistent with normal water utility operations. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 1998-99 1999-00 2000-01 2001-02 2002-03 AMOUNT Ongoing $341,000 $226,000 $232,000 $239,000 $246,000 I II COMPONENTS Sources of Funding: Water Fund with partial reimbursement from customers. IMPACT AND SUPPORT ANALYSIS ¯Environmental:Categorically exempt under Section 15302 of CEQA, minor change to existing utility. facility. ¯ . Design Elements:To be reviewed by CIP Design Consultant and the Architectural Review Board. Appropriate screening and replacement required. ¯Operating: Slight increase in water system maintenance offset by increased revenue. ¯Telecommunications: None. COMPREHENSIVE PLAN This project furthers Policy 5 of the Environmental Resources Elementrelated to ensuring Palo Alto’s long term supply of electricity, natural gas and water. 20 APPENDIX FIVE Recommended Changes to Departmental Mission Statements, Key Plans, and Impact Measures Mission Statements and Key Plans Community Services Major Activity: Family Resources Center To promote quality family life and respond to the needs of families in Palo Alto. (New) Public Works Major Activity: In-House Maintenance To maximize the useful life of streets through the effective repair of the pavement, and to maintain the aesthetic quality of the City through diligent management of graffiti. (Revised) Electric Fund Major Activity_: Distribution System Engineering To provide engineering support to the Electric Distribution System Operations and Customer Design and Connection Services sections in order to maintain safe, reliable and efficient electric service to our customers. (New) Police Functional Area.’, Investigation & Disposition Key Plan: Evaluate staffing requirements and prepare a plan, including interagency and private sector cooperation, to address high tech and white collar crime. (Revised) Functional Area:. Traffic Services Key Plan: Conduct feasibility study on automating traffic citation issuance through the use of hand held computer devices and other similar tools. (Revised) 1 Impact Measures The Finance Committee inquired on several impact measures during the review of department’s budgets. Some of the changes and additions are reflected on the following page. The following are revisions made to impact measures where there was no change in the projected number: Planning & Community Environment Ma_ior Activity: Sub Regional Activities Attend 75 percent of regularly scheduled interagency meetings that offer significant opportunities for coordination such as Stanford University, Santa Clara County Association of Planning Officials and Congestion Management Program of Santa Clara Valley Transportation Authority. (Agency name correction) Water Fund Ma_ior Activity: Rates & Reserves 1.Maintain average residential rats no higher than 10 percent above rates of nearby communities. (Revised language) 2.Maintain average non-residential rates no higher than 7 percent above rates of nearby communities. (Revised language) 2 pLANNING DEPARTMENT FUNCTIONAL AREA: DEVELOPMENT REVIEW IMPACT MEASURES 3.Planning staff will attend 75 percent of neighborhood meetings when requested by the neighborhood association. (New - combined) 1996-97 ACTUALS Ida 1997-98 ADOPTED BUDGET Ida 1997-98 ESTIMATED ACTUALS Ida 1998-99 PROPOSED BUDGET 75% PUBLIC WORKS DEPARTMENT FUNCTIONAL AREA: TREES IMPACT MEASURES 1996-97 ACTUALS 1997-98 ADOPTED BUDGET 1997-98 ESTIMATED ACTUALS Ida1.Through Canopy’s efforts, evaluate 100 vacant tree sites every year. (New - currently 3,217) Ida 1998-99 PROPOSED BUDGET 100 REFUSE FUND FUNCTIONAL AREA: SOLID WASTE IMPACT MEASURES 1996-97 ACTUALS 1997-98 ADOPTED BUDGET 1997-98 ESTIMATED ACTUALS Ida5. Annually process 16,000 tons of yard trimmings into compost, contributing nine percent to program diversion. (New) Ida Ida 199~99 PROPOSED BUDGET 9%