HomeMy WebLinkAbout1999-11-22 City Council (15)City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: UTILITIES
5
DATE:NOVEMBER 22, 1999 CMR:424:99
SUBJECT:PROPOSED REVISIONS TO UTILITY RULE AND REFUSE RATE
SCHEDULES
RECOMMENDATION
This report recommends Council approval of the attached resolution amending Utility Rule
and Regulation Number 11, "Billing, Adjustments, and Payment of Bills"; and Utility Rate
Schedules R-l, "Domestic Refuse Collection", F-1-FA, "Refuse Collection", and R-2,
"Commercial Refuse Collection".
BACKGROUND
City staff, with consulting assistance from Systems and Computer Technology (SCT),
implemented the Customer Information System (CIS) over the week-end of November 13-14
1999. The CIS is a packaged software application for billing utility services. The City’s rules
on utility billing are described in Utility Rule and Regulation Number 11, "Billing,
Adjustments, and Payment of Bills". The new CIS pro-rates bills and calculate late payment
charges slightly differently than the old billing system. Because of these differences, minor
revisions to Utility Rule 11 are required to be consistent with the manner in which the new
CIS calculates bills.
Additionally, on August 9, 1999, Council approved an agreement with Palo Alto Sanitation
Company (PASCO) and approved refuse rate schedules effective September 1, 1999. The
change to the utility rate schedules established and documented a detailed list of PASCO
customer charges. However, there were some inadvertent errors of omission, which have
been identified. Consequently, revisions to Refuse Rate Schedules R-l, R-1-FA, and R-2
are required.
DISCUSSION
Proposed Changes to Utility Rule and Regulation Number 11
In comparison to the current utility billing system (CUBIS), the CIS has differences in billing
in three minor areas. They are: proration of bills, customer credit rating system, and
CMR:424:99 Page ! of 3
computation of late payment charges. The current proration of rate structures is based on a
30.4 day billing cycle whereas the CIS is based on a 30.0 day billing cycle. The current
customer credit rating system is unique to CUBIS and evaluates credit history on an A, B,
C, and D scale. The new CIS does not use this credit system and customer bills will not
indicate a credit rating. Customer bills are currently assessed a late payment charge when
unpaid before the next monthly bill. On an annual basis, these charges account for
approximately one-tenth of one percent of the utilities revenues. Utility Rule and Regulation
Number 11 waives the late payment charge for bills under $100. Also, the late payment
charge applicable to bills over $100 ranges from 1.1 percent to 1.5 percent, depending on the
size of the outstanding balance. With the new CIS, late payment charges will be assessed for
all delinquent accounts, including bills under $100. The applicable penalty charge will
become fixed at 1 percent for all bills.
Proposed Changes to Refuse Rate Schedules
With approval of a new PASCO agreement, a large number of PASCO fees were identified
and added to the City’s refuse rate schedules (R-I, R-1-FA, and R-2) under "Special
Charges/Collection". One of these fees is incorrect while others were inadvertently omitted
or require clarification. The proposed changes are as follows:
1. Revise the R-l, R-1-FA, and R-2 fee for a 64-gallon cart rental from $1.60 to $1.35.
2. Add the word "waste" to the R-1, R-1-FA, and R-2 service description (95-gallon cart
rental, waste).
3. Add the phrase. "limit 4 fires per load" to the R-1, R-1-FA, and R-2 service description
for tire pickup.
4. Revise R-2 mixed paper service descriptions to specify a monthly charge based on
weekly collection of a 64-gallon container and an on-call pickup fee for 2-yard bins.
5. Add an R-1 and R-2 service description to cover a 95 gallon cart rental fee of $1.60 for
recycling and compost materials. This fee was inadvertently left off the rate schedules
and inclusion of this lower fee restores an incentive to recycle.
6. Add an R-I, R-1-FA, and R-2 service description to cover a Surcharge Special of $52.50.
This fee was inadvertently left off the rate schedules.
RESOURCE IMPACT
The proposed change in late payment charges is expected to have an insignificant impact on
utility revenues. The proposed revisions to refuse rates will not have a fiscal impact on the
Refuse Fund. However, if no Council action is taken, additional refuse revenue of
approximately $36,800 in FY 1999-00 could arise from the higher than budgeted fee for the
64 gall.on cart rental and depending on service level changes, supplemental disposal costs of
approximately $50,000 for FY 1999-00 could result.
POLICY IMPLICATIONS
The recommended action is consistent with City Council direction. The proposed refuse rate
revisions are consistent with prior Council actions related to compensation for service
provided by PASCO (CMR:337:99).
CMR:211:99 Page 2 of 3
TIMELINE
The proposed revisions to Utility Rule and Regulation Number
schedules would be effective November 22, 1999.
11 and the refuse rate
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Resolution
Utility Rate Schedules R-1, R-1-FA, and R-2
Utility Rule and Regulation Number 11
PREPARED BY:Randy Baldschun, Assistant Director, Administrative Services
Michael Jackson, Deputy Director, Public Works Operations
DEPARTMENT HEAD:/~, ~
GLENN ROBERTS
Director of Public Works
DEPARTMENT HEAD:
of Utilities
CITY MANAGER APPROVAL:~-~~ .~t~ ~
EMILY~g-0-N-
Assistant City Manager
CMR:211:99 Page 3 of 3
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING UTILITY RATE SCHEDULES R-I, R-I-FA AND
R-2 PERTAINING TO REFUSE COLLECTION AND APPROVING
AND ADOPTING RULE AND REGULATION ii GOVERNING
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
The Council of the City of Palo Alto does hereby RESOLVE
as follows:
SECTION i. Pursuant to Section 12.20.010 of the Palo Alto
Municipal Code, Schedules R-I, R-I-FA and R-2 (Refuse Collection)
of the Palo Alto Utilities Rate and Charges are hereby amended to
read in accordance with Sheets R-I-I, R-I-2, R-I-FA-I, R-I-FA-2,
R-2-1 and R-2-2, respectively, attached hereto and incorporated
herein by reference.
SECTION 2. The Council finds that the revenue derived from
the authorized adjustments of the several refuse collection rates
shall be used only for the purposes set forth in Article VII,
Section 2, of the Charter of the City of Palo Alto.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto
Municipal Code, Rule and Regulation ii (Billing, Adjustments and
Payment of Bills) of the Utility Rules and Regulations is hereby
amended to read in accordance with the sheets captioned "Billing,
Adjustments, and Payment of Bills" and "Rule and Regulation ii,"
Sheet Nos. ! through 13, inclusive, attached hereto and
incorporated herein by this reference.
SECTION 4. The rate schedules adopted by Section 1 and the
Rule and Regulation adopted by Section 3 shall become effective on
November 22, 1999.
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990804 sdl 0032283
SECTION 5. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act.
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 Administrative
Services
990804 sdl 0032283
Bo
CJ
DOMESTIC REFUSE COLLECTION
UTILITY RATE SCHEDULE R-1
APPLICABILITY:
This schedule applies to each occupied* domestic dwelling as required by City ordinance.
TERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City
located in Service Area 1.
RATES:
Separate single-family domestic dwelling and apartment dwellings.
STANDARD MINIMUM CHARGE ...............................................................................$18.00
The standard minimum charge is applied when a customer signs up for refuse service and is based
upon the collection of refuse from one 32-gallon container.
Per Month
Collections Per Week
Number of
Cans One
Mini-can**$14.20
1 18.00
2 37.05
3 56.15
4 75.20
5 94.30
6 113.35
Two Three
75.20
113.35
113.35
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. R-1-1 dated 9-1-99 CITY OF PALO ALTOI ITII ITI ~.q
Effective 11-22-99
Sheet No. R-l-1
DOMESTIC REFUSE COLLECTION
UTILITY RATE SCHEDULE R-l(Continued)
D.SPECIAL CHARGES/COLLECTION:
1. Urgent special-refuse ~ick up on non-standard collection day) .......: ..............i $36.80
2. Remm trip (same day, recycling or refuse) ....¯ ............ ................¯ ........................16.35
3. Extra can (curbside) ................ ................................................................................6.50
4. Extra can (backyard) ................................., ................................:.; ......................;.. 8.50
5. Hand pick up ............................................: .......................................................... 38.35
6.64 gallon cart rental .....................................: .........................................................1.35
7.95 gallon cart rental (waste) ..................: ...............................................................3.15
8. Cart wash ......................................... ....................................¯ ...............................15.00
9. Bin lock installation ........................................., ......................................, ...........97.00
10. Key service per pick-up .........................................................................................2.30
11. Lock (PASCO provided) ...................................................................................,16.50
12. Install auto lock ............................:~.. .................................................................129.35
13.’ Counter balance lid (3&4 yd) ............: .............- ....................................................58.00
14. Counter balance lid (5&6 yd) ..............................................................................67.50
15.Temporary bin-delivery (1). ..............................................................~ ..................~ 54.60
16. Temporary bin-delivery (2) ........................................~.: ......................................75.00
17. Temporary bin-delivery (3) .................................................................................95.50
18. Temporary bin-delivery (4) ................................................................................150-00
19. Temporary bin-weekly fee ..................................................................................16.50
20. Stove/washer/dryer/water heater pickup .............................................................25.00
21. Freezer/refrigerator/air conditioner pickup .........................................................30.00
22. Furniture pickup ...................................................." .............................................: 20.00
23. Mattress pickup "¯10.00
24. Tire pickup (Limit4 tires per load) .... ....................................................................5.00
25. Cart clean Out (by hand) ...................: ...................................................................10.00
26. Cart contamination (entire cart dumped) ..................................................... ........20.00
27. Repair rate .............................................................................................................1.50/rain + material
28. Miscellaneous 1 person service rate ........ ..........................................., ....................2.10/min ~
29~ Miscellaneous 2 person service rate ............................................- ..........................2.70/rain
30. 95 gallon cart rental (recycling/compost)~ .............................................................1.60
31. Sur-charge special ..............................................................................: .....: ..........52.50
SPECIAL NOTES:
**An occupied dwelling unit is defined as any home, apartment unit, cottage, flat, duplex unit, having
kitchen, bath, and sleeping facilities, and to which gas or electric service is being rendered.
Mini can-service cannot be combined with any other can service.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.R-l-2 dated 9-1-99
Effective 11-22-99
Original Sheet No. R-l-2
REFUSE COLLECTION
UTILITY RATE SCI~DULE R-1-FA
APPLICABILITY:
This schedule applies to all refuse collection service.
TERRITORY:
Within the .incorporated limits of the City of Palo Alto and on land owned or leased by the City
located in Service Area 2.
Co RATES:
SERVICE AREA 2:
Standard Minimum Charge, per month ...........: ................ i ......................................$18.00
The Standard Minimum Charge is applied when a customer signs up for refuse service and is based
upon collection of refuse from on___~e 32-gallon eontainer..
Each additional 32-gallon, per month ............................................ ......................... $19.05
CITY OF PALO ALTO UTILITIES
Issued by the. City Council
Supersedes Sheet No.R-1.FA.’I dated 9~1-99
Effective 11~22-99
Sheet No. R-1-FA-1
REFUSE COLLECTION
UTILITY RATE SCHEDULE R-1-FA (Continue_A)
SPECIAL CHARGES/COLLECTION:
1. Urgent special-refuse (pick up on non-standard collection day) ........$36.80
2. Return trip (same day) ................................; .........................................16.35
3. Extra can (eurbside) ................................................................................6.50
4. Extra can (backyard) .................................................. ..............................8.50
5. Hand pick-up ..............: .........................................................................38.35
6.64 gallon cart rental ........................ .........................................................1.35
7.95 gallon cart rental (waste) ...................................................................3.15
8. Cart wash .......................: ...................................................... ................15.00
9. Bin lock installation .............................................................................97.00
10. Key service per pick:up .....................................................; ..................2.30
11. Lock (PASCO provided) ....................................................................16.50
12. Install auto lock ................................................................................129.35
13. Counter balance lid (3&4 yd) ...........................,, ............: .................58:00
14. Counter balance lid (5&6 yd) ........................................: ...............~ ....67.50
15. Temporary bin-delivery (1) ................................................................54.60
i 6. Temporary bin, delivery (2) ................................................................75.00
17. Temporary bin-delivery (3) ............................................................;... 95.50
18. Temporary bin-delivery (4) .....................: ........................................150.00
19. Additional fee for delivery to Service Area .......................................42.00
20. Temporary bin-weekly fee .................................................................16.50
21. Stove/washer/dryer collection/water heater pickup: ...........................25.00
22. Freezer/refrigerator/air conditioner pickup ... ......................................30.00
23. Furniture pickup ........................................" .........................................20.00
24~ Mattress pickup .............,.. ....................~ ..........................................:.. 10.00
25. Tire pickup (4 tires per load) ................................................................5.00
26. Cart clean out (by hand) .....................................................................10.00
27. Cart contamination (entire cart dumped) ............................................20:00
28.. Repair rate .......................................... ..................................................1.50/rain + material
29. Miscellaneous 1 person service rate .....~ ...............................................2.10/rain.
30. Miscellaneous 2 person service rate .....................................................2.70/rain
31. Sur-ctmrge special ....................i ........................................: ................52.50
SPECIAL CONDITIONS:
t.The contractor does not provide weekly curbside collection for recyclables or compostable
materials in Service Area 2.
CITY OF PALO ALTO IYrILITIES
Issued by the City Council
Supersedes Sheet No.R-1.FA-2 dated 9.’1-99
¯ Effective 11-22-99
Original Sheet No. R-1-FA-2
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-2
APPLICABILITY:
This schedule applies to all occupied* establishments other than domestic dwellings as required by
City ordinance.
I~ERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City
!ocated in ServiceArea 1.
Co RATES:
Standard Minimum Charge ..........................................................................$18.00
The Standard Minimum~ Charge is applied when a customer signs up for refuse service and is based
upon the collection of refuse from two 32-gallon containers.
Per Month
Collection Per Week
Number of
Cans One
1 $18.00
2 37.05
3 56.15
4 75.20
5 94.30
6 113.35
Two Three Five Six
$37.05 $56.15 $75.20 $94.30
75.20 113.35 189.65 227.80
113.35 170.60 285.05 342.25
151.50
*An occupied establishment is defined as one to which gas or electric service is being rendered.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. R-2-1 dated 9-1-99
Effective 11-22-99
Sheet No. R-2-1
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-2 (Continued)
D;SPECIAL CHARGES/COLLECTION:
1. Urgent special-refuse (pick,up on non-standard collection day) .................$35.80
2. Urgent special-recyciing (pick-up on non-standard collection day) ..............52.50
3. Return trip (same day) .................~ .....~ ...........................................................25.00
4. Return trip (same day, for recycling) .................................................... ..........!6.35
5. Return trip (next day) ............................................................... .....................16.35
6. Compacted rate (per cubic yard/collection) ...................................................36.80
7~ Hand pick-up. ..........................~ .....................................................................38.35
8.64 gallon cart rental .........................................................................................1.35
9. 95 gallon cart rental (waste) .....;..., ..................................................................3.15
10. Bin wash .......................~ ................................................................................27.05
11. Compacter/drop box wash .............................................................................55.85 "
12. Cart wash ....................................................................’ ..................................15.00
13.Bin lock installation ....................................................................: ..................97.00
14. Cart lock installation (for recycling) ....................................... .......................25.00
15. Key service per pick-up ............. ......: .........., .........................................." ..........2.30
16. Lock (PASCO provided) .................................................................. .............16.50
17. Install auto lock ~ ..........................................................................................129.35
18. Counter balancelid (3&4 yd) ........................................................................58.00
19. Counter balance lid (5&6 yd) ...................................................: ....................67.50
20. Mixed paper on-call carts (recycling) ....., ...." ......................, ..........t ..................1.15
21. Mixed paper, weekly collection, 64 gallon, monthly charge ...........................5.00
22. Mixed paper, on-call pick-up, each pick-up, 2yd ...., .......................................6.50 .
23. Temporary bin-delivery (1) ...........................................................................54.60
24. Temporary bin-delivery (2) ............~ ..............................~ ............~ ...................75.00
25. Temporary bin-d.elivery (3) ................................ .............. .............................95.50
26. Temporary bin-delivery (4) .........................................................................150.00
27. Temporary bin-weekly fee .......................................................~ .....................16.50
28. Stove/washer/dryer/heater pick-up ...........................................................- .....25.00
¯ 29. Freezer/refrigerator/air conditioner pick-up ........~ .......................: ..................30.00
30. Furniture pick-up ............................~ ...................... ..........................................20.00
31. Mattress pick-up ...........................................................¯ ................................10.00
3L Tire pick-up (Limit 4tires per load) ...........................................................: ....5.00
33. Cart clean out (by hand) ................................................................................10.00 ¯
34. Cart contamination (entire cart dumped) .............................................: .........20.00
35. Repair rate ................ ................:: ...................~ ..................................................1.50/rain +material
36. Miscellaneous I person service rate ................................~ ...............................2.10/rain
37. 95 gallon’cart rental (recycling/compost). ................................................:. .....1.60
38. Sur-eharge special ................................................................................., ........52.50
iZITY OF PALO ALTO UTILITI ~’~S
Issued by the City Council
Supersedes Sheet No. R-2-2 dated 9-1-99
Effective 11-22-99
Sheet No. R-2-2
BILLING,ADJUSTMENTS, AND PAYMENT OF BILL~~
RULE AND REGULATION 11
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 service charge for metered water (and related wastewater)~ gas,
and/or electric service, as well as flat-rate charges for refuse, storm drain,
wastewater, and other non-metered services will be prorated if the number of
actual service days is less than 25 or greater than 35. Proration will be based on
the number of days in the service period to the number of days in an average
month namely, 30.0.
Proration for all water, gas, and electric rate schedules that contain rate steps
(consumption blocks) will occur when the actual days of service differ from the
standard 30-day billing period. Proration is intended to produce a uniform
average unit cost for the commodity regardless of the number of days in the
service period. Electric demand (kW) and electric power factor rates will not be
prorated.
In the event that water, gas (therm factor), 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. Mid-period proration will not occur on
rate schedules that contain cormection fees, deposits, and other miscellaneous
fees.
BILLING UNITS:
1.All metered billing units used for billing purposes shall be determined to the
nearest whole unit. Such units may include, kW, kWh, kVa, kVar, hp, the.rms,
and/or ccf.
C.PAYMENT OF BILLS:
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No. - 1
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
CPAU issues bills to its customers on a monthly basis. Bills shall be deemed received
upon personal delivery to Customer or three days fdllowing 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
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 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:
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 cardpayments can be processed at Revenue Collections.
By dropping the payment in the Night Depository Box either in the from 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 between the Customer and the
bank. This involves the Customer notifying (by touch-tone telephone) thebank 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 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.
Based on the particular merits of a given situation, late payment charges may be
waived by CPAU. Examples of situations where a waiver is granted are generally
those under which the Customer is faced with circumstances beyond his or her
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTIEITIES
Sheet No. - 2
BILLING, ADJUSTMENTS, AND PAYMENT OF BII,LS
RULE AND REGULATION 11
control. Two examples are:
(A) The posting of payments received by CPAU is delayed or in error.
03) 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 bill_ing charges unless otherwise agreed to by CPAU.
In the event that a Customer participating in the ProjecLPLEDGE 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.
5.The late payment charge will be computed as one percent on the balance forward.
Subparagraphs 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 loan 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 five dollars ($5), whichever is greater. No charge will be imposed more
than once 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
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 rights of CPAU to
enforce the payment of such installments. Nothing in this subparagraph shall alter
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No.-3
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
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.
RETURNED CHECK CHARGE:
1.A service charge wilt 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:
1.CORRECTNESS OF BILL
If the correctness 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.
2.BILL REVIEW PROCEDURE
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.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No.-4
~ BILLING, ADJUSTMENTS,AND PAYMENT OF BILLS
RULE AND REGULATION
(c)
(D)
If an amortization period is warranted and agreed to by the Customer,
service will not be discontinued for nonpayment provided the Customer
complies wifla 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.
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
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.
Go BILLING ADJUSTMENTS:
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 water 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
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO AL’~O
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Sheet No. - 5
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
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
meier or regulator incorrectly.
1.SMOOTHING ADJUSTMENT
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.
03)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 longer or irregular billing cycle.
2.METER ERRORS AND OTHER BILLING ADJUSTMENTS
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.
03)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 based on an average bill. The bill will
be computed upon an estimate of cousumption based upon the Customer’s
prior use.
(c)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
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No.-6
BILLING, ADJUSTMENTS,AND PAYMENT OF BILLS~
RULE AND REGULATION 11
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 dareand cause of which can be reliably established, the
retroactive billing adjustment will apply as follows:
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;
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 commence 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.
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,
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) Generally, a leakage credit will be granted for a one month billing cycle.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No. - 7
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
o3)
(c)
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, materials 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.
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.
B~LING ADJUSTMENTS IN CONNECTION WITH FORCE MAJEURE
EVENTS
For purposes of this Rule and Regulation, the term "force majeure" means
the occurrence of an event that .is beyond the reasonable control of the
utility Customer and, which by reasonable efforts, the Customer could not
prevent. Such events include, but are not limited to, an Act of God, an
irresistible, superhuman cause, fire, flood, earthquake, or any other similar
cause.
O3)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
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO=ALTO
UTILITIES
Sheet No. - 8
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
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
(1)
Boxes
A billing adjustment or refund in connection with debris boxes
shall be limited to Palo Alto Sanitation Company charges incurred
or to be incurred out-of-pocket by the resident, owner, or business
for removal of flood-damaged materials only. Refunds will not be
applied to charges paid through insurance policies. The Palo Alto
Sanitation Company will keep a record of those residences and
businesses that request debris boxes during the applicable refund
period.
(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
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:
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No. - 9
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
A Budget Billing Payment Plan establishes equalized monthly payments and is available
to all residential Customers who qualify as set forth below.
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.
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.
o 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 Billing Payment Plan shall remain in effect from year to year, subject
to review of the monthly payment amount, and shall terminate when:
(A)
(C)
(D)
The custorrier notifies CPAU to terminate participation in theplan;
CPAU notifies the customer of the termination of its budget payment plan:
The Customer no longer takes service at the premises; or
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.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No. - 10
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS~
RULE AND REGULATION 11
RESALE PROHIBITED:
Customer shall use services only for the purposes specified in
the service agreement and applicable rate schedule(s). CPAU service shall
not be resold except as provided in this rule.
Premises that 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 I-4 below.
Property owners may bill the cost of providing utilities to individual
tenants separately from rent only with written 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.
ACCOUNTING, BILLING, AND PAYMENT FOR GAS SERVICE PROVIDERS
INFORMATION CHARGES
CPAU shall charge, and the Gas Service Provider shall pay, for any non-
confidential or non-proprietary information requested by the Gas Service Provider
pertaining to the Eligible Customer which is in addition to information normally
provided in accordance with CPAU’s procedures.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No.-11
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
2.BILLING
All billings between the Gas Service Provider and CPAU for services under a Gas
Service Provider Agreement shah be performed by CPAU or the Pool Manager on
a calendar month basis.
(A)All billing statements shall reflect the period from 7:00 a.m. PST on the
first Day of each calendar month until 7:00 a.m. PST hours on the first
Day of the following calendar month; provided, however, the billing
staiements for any partial first month and partial last month of service
shall be prorated by the number of Gas Days of service during such month.
03)Bills sent to the Gas Service Provider shall be sent to the appropriate
billing address specified in the Gas Service Provider Agreement.
(c)Payments for amounts billed to the Gas Service Provider shall be due on
the last Day of the month in which the billing statement is issued or the
fifteenth (15th) Day after receipt of the billing statement, whichever is
later. Payments for amounts owed by CPAU to the Gas Service Provider
shall be applied as a credit to the Gas Service Provider’s bill within the
time in which the Gas Service Provider is required to pay CPAU’s bills.
If, as a result of the credit, the Gas Service Provider is owed money,
CPAU shall make payment in accordance with this Rule. Payment shall be
made at the offices designated in The Gas ServiceProvider Agreement, or
by electronic funds transfer to accounts specified in The Gas Service
Provider Agreement.
(D)Amounts not paid on or before the due date shall be payable with interest
accrued at the rate of one percent (1%) per month, or the maximum
interest rate permitted by Law, whichever is less, prorated by Days from
the due date to the date of payment. When payments are mailed to CPAU,
the billing statements shall be deemed paid on the dates of receipt by
CPAU.
03)If the Gas Service Provider disputes the accuracy of any portion of the
billing statement, then the Gas Service Provider shall pay the undisputed
portion within the time required herein. Upon a determination that any
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTOUTILITIES
Sheet No. - 12
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS~
RULE AND REGULATION 11
disputed amount should be paid by the Gas Service Provider, the Gas
Service Provider shall pay such amount, plus accrued interest, at the rate
established in this Rule.
(F)CPAU shall adjust a billing statement as deemed reasonably necessary by
the Utilities Director for any billing statement error that is established. All
adjustments or billing statement errors shall be resolved promptly as
practicable, and, upon resolution, shall be included in the billing statement
for the next regular Billing Period.
3.RECORDS
CPAU and the Gas Service Provider shall keep accounting records and books for
two (2) years in accordance with generally accepted accounting principles and
practices in the industry. CPAU and the Gas Service Provider shall have the fight
to examine those books and the accounting records of the other during that two-
year (2-year) period.
Any examination will be at the examining Party’s expense, must be conducted at a
reasonable time, and must be confined to the extent necessary to verify the
accuracy of any statement, charge, or computation or any demand made under or
as a result of transporting Customer-owned Gas.
(END)
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 11-22-99
CITY OF PALO ALTO
UTILITIES
Sheet No. - 13