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HomeMy WebLinkAboutStaff Report 208-07TO: ATTN: City of Palo Alto ItO ...... INA CE COM nTTEE ’07 - FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:APRIL 17, 2007 CMR:208:07 SUBJECT:APPROVAL OF REFUSE RATE INCREASE; REQUEST FOR ADOPTION OF A RESOLUTION TO AMEND UTILITY RATE SCHEDULES R-l,R-2,AND R-3,AND UTILITIES RULE AND REGULATION 11 RECOMMENDATIONS Staff requests that the Finance Committee recommend that the Council approve a thirteen percent refuse rate increase and adopt the attached resolution (Attachment A) changing the Utility Rate Schedules and Utility Rule and Regulation 11. Specifically: 1,Amend Utility Rate Schedules R-l, "Domestic Refuse Collection," R-2, "Commercial Refuse Collection," and R-3, "Commercial Refuse Collection," for a thirteen percent increase in refuse rates for R-l, R-2, and R-3 for FY 2007-08 to maintain the Refuse Fund Rate Stabilization Reserve (RSR) at the Council-adopted level. 2.Amend Utilities Rule and Regulation 11 "Billing, Adjustments, and Payments of Bills" to create consistency on the adjustment periods between Refuse utility and the other City Utilities. BACKGROUND The last rate increase applied across the Refuse Fund Utility Rate Schedule (R series) occurred in May 2005 (CMR:256:05). At that time, Council approved an increase to Refuse Fund rates of 8 percent or $1.6 million in revenue annually. A rate increase was necessary due to rising operating costs for the landfill and recycling programs. Proposition 218 Notice The City must give written notice to owners whose parcels will be subject to a new or increased water, sewer, or refuse utility rate before any such new or increased rate can be imposed. A public hearing on the new or increased rate must be held not less than 45 days after the mailing of notice to the affected owners. At the heating, the Council must consider written protests against the imposition of any such new or increased rate. If a majority of the owners do object, the new or increased rate may not be imposed. Because property ownership is deemed to include tenancies in property where tenants are directly liable to pay for such utility service,, the notice must be sent tenants. A pending bill (AB 1260) would clarify that notice should be sent only to customers (whether owners or tenants) who receive the utility services. CMR:208:07 Page 1 of 4 . . DISCUSSION Staff is proposing a thirteen percent rate increase that would net $2,884,000 million in additional revenue annually. This increase is necessary to maintain a Refuse Fund reserve consistent with the Council-adopted reserve policy, and to meet the increased financial obligations of the Refuse Fund including the following: Palo Alto Sanitation Company (PASCO) compensation - $600,000. This adjustment is a result of Consumer Price Index increases and a shortfall in recycling revenues. SMART Station prevailing wage standard - $425,000. The Director of the California Department of Industrial Relations recently clarified that the prevailing wage standards applied to the various worker classifications at the station. This has caused an increase in labor costs to all three partner cities, for future budgets. SMART Station equipment upgrade project - $325,000. Several key pieces of the mechanical sorting system, referred to as the materials recovery system, have reached the end of their useful lives and are in need of replacement. This project will be financed through bonds. There will be one-time cost resulting from loss of diversion and revenues during construction in 2007-08; and ongoing bond repayment costs through 2021. Retiree Medical Liability - $243,000 - The retiree medical liability costs include the amount paid for current employees ($100,000), the amotmt for future retirees ($38,000), and the amount for payment of past liabilities ($104,000). The retiree medical cost allocations are part of the City’s effort to comply with government accounting standards (GASB 45) related to retiree medical and the allocations are applied to all funds in the City. CIP Project - Relocation of Landfill Facilities - $1,000,000 - This project will relocate the existing recycling drop-off center, toll booth, scale and administrative trailer at the landfill in order to begin landfill closure. Design and construction will occur in FY 2008- 09. As indicated in the Baylands Master Plan, the landfill is scheduled to be closed during 2011. Relocating existing recycling drop-off center, landfill toll booth, scale and administrative trailer is necessary to complete filling and to begin closure activity in the area where they are currently located. The proposed monthly rate would increase from $21.38 to $24.16 for residential customers with one 32-gallon can service. The table below shows the current rate for single-family residents, the proposed rate increase (see Utility Rate Schedule R-1 in Attachment B), and the proposed difference. Refuse Rate for Single Family Dwellings, Utility Rate Schedule R-1 Service Level Current Rate (FY 2006-07) Proposed Rate (FY 2007-08) $19.06 24.16 Proposed Difference $2.19 2.78 Mini can (20 gallon)$16.87 One standard can (32 21.38 gallons) CMR:208:07 Page 2 of 4 Two standard cans (32 gallons each) Three standard cans (32 gallons each) Four standard cans (32 gallons each) 44.01 66.64 89.26 49.73 75.30 100.86 5.72 8.66 11.60 Staff surveyed surrounding’ jurisdictions to compare Palo Alto’s proposed single-family rates with other communities’ rates. However, Palo Alto provides more services by the Refuse Fund than do other jurisdictions, making it difficult to equally compare the service levels. Palo Alto’s premium services include backyard garbage collection, weekly street sweeping, monthly hazardous waste collection, extensive recycling collection and waste diversion services, and landfill and composting operations. The survey and the table below show that even with the higher service levels, Palo Alto’s proposed rates are competitive in comparison to other jurisdictions. Current Single Family Rates From Surrounding Jurisdictions Current rate (FY 2006-07) Jurisdiction Palo Alto proposed Cupertino Los Altos Los Altos Hills Mountain View San Jose Santa Clara Sunnyvale Average rate (excluding Palo Alto) for one 32-gallon can refuse ~ervice $24.16 18.66 24.14 28.03 [5.30 20.15 15.45 21.71 $20.49 Changes to the Utilities Rule and Regulation 11 are necessary to create consistency on the adjustment periods between the Refuse utility and the other City Utilities. In 2006, the Utilities Department changed Rule and Regulation 11, including section 3A, "Applicable Adjustment Period for Meter Errors, Retroactive Billing, and Refunds". The language was changed to reflect a period of not to exceed 6 months on residential customer bill disputes and a period not to exceed 12 months on commercial customer billing disputes. Consequently, section 6 on "Refuse Billing Disputes and Adjustments" was updated to reflect the same adjustment periods for refuse bill disputes (Attachment C). RESOURCE IMPACT Staff estimates that the proposed thirteen percent increase to the refuse rates will generate $2,884,005 million to the Refuse Fund in FY 2007-08. If a rate increase does not occur in FY 2007-08, the Refuse Fund reserve will fall $2,251,969 million short of the Council-adopted minimum level of $2,218,465 million. Staff annually reviews and updates the Refuse Fund Ten- CMR:208:07 Page 3 of 4 Year Financial Forecast to determine the rate increase percentage that may be required in subsequent years. ENVIRONMENTAL IMPACT An increase in rates to meet financial reserve needs is not subject to review pursuant to the California Environmental Quality Act (CEQA), California Public Resources Code section 21080, subdivision (b)(8) and Title 14 California Code of Regulation section 15273 (a)(3). ATTACHMENTS Attachment A:Resolution Attaclmaent B:Utility Rate Schednles R-l, R-2, and R-3 Attachment C:Utilities Rule and Regulation 11 PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: )TO Executive Assistant GLENN S. KOBERTS Director of Public Works EMILY{~-ARRIS D-~- Assistan’t-City Manager CMR:208:07 Page 4 of 4 NOT YET APPROVED RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING UTILITY RATE SCHEDULES R-l, R-2, AND R-3 OF THE CITY OF PALO ALTO UTILITIES RATES AND CHARGES PERTAINING TO REFUSE COLLECTION AND AMENDING RULE AND REGULATION 11 GOVERNING UTILITY SERVICES 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 Council has considered the need for an adjustment in refuse collection rates and recycling collection services to maintain the Refuse Fund Stabilization Reserve Fund at required levels; and NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: ’ SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-1 (Domestic Refuse Collection) is hereby amended to read in accordance with Sheets R-I-t and R-l-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on July 1, 2007. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-2 (Commercial Refuse Collection) is hereby amended to read in accordance with Sheets R-2-1 and R-2-2, attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on July 1, 2007. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule R-3 (Commercial Refuse Collection) is hereby amended to read in accordance with Sheets R-3-1, R-3-2 and R-3-3, attached hereto and incorporated herein. The foregoing Utility Rate Schedules, as amended, shall become effective on July 1,200.7 SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal code, Rule and Regulation 11 (Billing, Adjustments and Payment of Bills), are hereby amended to read as set forth in amended rule and regulation 11 attached hereto and incorporated herein. The amended rules and regulations shall become effective on July 1, 2007. Except as specifically amended by this resolution, all existing utility rules and regulations shall remain in full force and effect. SECTION 5. The Council finds that the revenue derived from the authorized adjustments of the 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. 070410 syn 6050124 3_ NOT YET APPROVED SECTION 6. The Council finds that: (a) the rate increase authorized by adoption of this resolution is for the purpose of meeting financial reserve needs in the refuse fund and therefore does not constitute a project pursuant to the California Environmental Quality Act (CEQA), California Public Resources Code section 21080, subdivision (b)(8) and Title 14 California Code of Regulation section 15273 (a)(3); and (b), the adoption of revisions to the utility rules and regulations as set forth in this resolution is not a project under CEQA pursuant to Title 14 California Code of Regulations section 15061(b)(3) (can be seen with certainty that there is no possibility of a significant effect on the environment) and 15378(b)(2) (continuing administrative activity). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Sr. Asst. City Attorney City Manager Director of Public Works Director of Administrative Services 070410 sm 0100353 2 APPLICABILITY: DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R- 1 This schedule applies to each occupied* domestic dwelling as required by City ordinance. 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. B. TERRITORY: Within the incorporated limits of the City of Pale Alto and on land owned or leased by the City. C. RATES: Separate single-family domestic dwelling and apartment dwellings. Collection Cost Number of Cans Mini-can * 1 2 3 4 Monthly Collection Fre ueq_u_e_E~ Per Week One Two 404-.gg0449.73 9glO013.6-507 16 "/IqrATR "~O lqA~ ~’211(~A 9(~ ~oo 6<o6100.86 l"Jron A{~’791q "~,d. 10211.6eg9126.44 21825.2582266.48 I~3 .....152.00 ................ Three 14456.5511176.40 20723.4099253.!1 27091.2587329.81 22259.1075406.52 295427.9563483.22 Mini-can service cannot be combined with any other can service. Standard service is one can service. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R- 1-1 dated 7-01-0345 Effective 7-01-2004-5__~7 Sheet No. R-l-1 DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-l-1 dated 7-01-034__5 Effective 7-01-2004-57 Sheet No. R-l-1 DOMESTIC REFUSE COLLECTION SPECIAL ITEM CHARGES: UTILITY RATE SCHEDULE R-1 (Continued) 1. Stove/washer/dryer/water heater pickup *. ...................................................................... .... , ...................................................................................................................................... 2_5.oo 2. Freezer/refrigerator/air conditioner pickup * ................................................................... .......................................................................................................................................... -2025.00 3. Upholstered furniture pickup (per unit) * .................................................................................................................................................................................................................. ±5.00 4. Mattress pickup * ............................................................................................................. .......................................................................................................................................... g15.00 5. Tire pickup (per tire, limit of 4 tires) * ............................................................................6 o.oo 6. Pallet pick up * .... ¯ ................................................... ..................................................................... 5.00 * "Sur-charge special" fee applied, when not collected under the cleanup guideline program. SPECIAL LABOR CHARGES: 1. Return trip (for services missed) .................. 1 1"70 OOA’~9| Qt~ 2. Urgent special (per cubic yard charge, outside of routine services).. ............................ 9.40 3. Miscellaneous 1 person service rate ................................................................................... ~a4g-53.22/min 4. Miscellaneous 2 person service rate ................... 2/, 158~.. 16/min 5. Surcharge special ................................................................................... ~ 5762.752770.48 6. Repair rate .............. .................................................................................. .................................................................................................................. ~2.01/min + material 7. Hand pick up (per cubic yard) ...................................................................... 425.195751.49 8. Extra can (curbside)- g8.~72 9.Extra can (backy~d) .................................................................................. ~ ~11.41~ CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R- 1-2 dated 7-01-084__5 Effective 7-01-2004-5__~7 Sheet No. R-l-2 DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R-1 (Continued) F.SPECIAL CART CHARGES: 1.20 gallon cart rental .............................................................................................................. 2.00-1-644 2. 32 gallon cart rental ................................... i ...................................................................... 3.64 gallon cart rental .......................................................................................................... .................................................................................... 2,44~ 4. 96 gallon cart rental .......................................................................................................... .................................................................................... 2.44-Z4104~ 5. 20-gallon cart purchase ........................................................................ ~ ........................... 402.0020’t 8.82 6. 32 gallon cart purchase ................................................................................................... 48.82 _4o-Noo~ 7. 64 gallon cart purchase .................................................................................................... 4g84106054.92 8. 96 gallon cart purchase .................................................................................................... g04~61 .O2 9. Cart wash ......................................................................................................................... .............................................................................................. ~0 Cart clean out (by hand). ............................................................................ 11 Recycling can conta~nation (entire ca~ dumped).. ................................~ .............__ 12. C~ exchange (one exchange allowed per ca~ each calendar year at no cost) ................ 13.Key service per pick-up ....................................................................................................... __ ~3.08 14.Lock (PASCO provided) .................................................................................................. 1 1 Qt% 1 ~n99 lZ~ 13. Cart lock installation ................................................................................ __ 3.56 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-1-2 dated 7-01-034__5 Effective 7-01-200457 Sheet No. R-l-2 DOMESTIC REFUSE COLLECTION UTILITY RATE SCHEDULE R-1 (Continued) CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-1-2 dated 7-01-034__5 Effective 7-01-2004-57 Sheet No. R-l-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. An occupied establishment is defined as one to which gas or electric service is being rendered. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. RATES: Monthly Collection Cost Number of Cans Collection Frequency per Week One Two Three Four Five Six -1 *-- 824.16 2 9.73* 75.30646-3: 3 100.8682--9~. 4 5 g126.44 6 52.00 06113.07 4--1-176.40 ~239.75 2-303.09 .2-7366.43 ~~280302.25 3538!,.I0~~ 4-164.20 8253.11 67-342.02 ~430.93 8519.83 ~07nQ1 0=~~~55195 ~57 7-215,34 -7-329.81 7444.28 8558.76 8673.23 266 48248 qqq=o tn7 ~=~o~n7 ~t~~777ql ql~ 35.3582 ,~406.52 8546.56 4-686.60 ~826.64 7317,61 ~483,22 8648,82 ~814.44 8980,04 * Standard service is two can service. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-1 dated 7-01-053 Effective 7-01-20074 Sheet No. R-2-1 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-1 dated 7-01-05~ Effective 7-01-20074 - Sheet No. R-2-1 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 (Continued) D.SPECIAL ITEM CHARGES: 1.Stove/washer/dryer/heater pick up * ..................................................................... , .......... 2.Freezer/refrigerator/air conditioner pick up *.. ................................................................. 3.Upholstered furniture pick up *.. ...................................................................................... 4.Mattress pick up * ............................................................................................................ 5.Tire pick up (per tire, limit of 4 tires) *-. .......................................................................... 6.Pallet pick up * ................................................................................................................ *"Surcharge special" fee applied, when not collected under the cleanup guidelines. Additiena! Fo SPECIAL LABOR CHARGES: 1. Return trip (for services missed, with request for same day service) .............................. 2. Return trip (for services missed, with request for next day service) ............................... 3. Urgent special (per cubic yard charge, outside of routine services) ......................... 4. Miscellaneous 1 person service rate ........................................................... 6. Miscellaneous 2 person service rate ............................................................................. 7. Surcharge special ............................................................................................................ 8. Repair rate 9. Hand pick-up (per cubic yard) ......................................................................................... 10. 3 2 4 3 4 Extra can ............................................................................................................................................. SPECIAL CART CHARGES: 1. ~g-32 gallon cart rental ~ ......l~,.a 1.15 2. 64 gallon cart rental .........................................................................................................1.35 __ 3. 9-5-96 gallon cart rental ~ .....*~ 4. 32 gallon cart purchase ................................................................................................... 5. 64 gallon cart purchase .................................................................................................... 6. 96 gallon cart purchase .................................................................................................... 7. Cart wash ..........................................................................................................................2 8. Cart clean out (by hand) ...............................................................................................:... 9. Recycling cart contamination (entire cart dumped) .........................................................2 10. Cart exchange (one exchange allowed per cart each calendar year at no cost) ............... 11 Key service per pick-up 12 Lock (PASCO provided) ...... 13. Cart lock installation.. .....3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-2 dated 7-01-053 Effective 7-01_g-20047 Sheet No. R-2-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-2 (Continued) CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.R-2-2 dated 7-01-05,3 Effective 7-0_1g-20047 Sheet No. R-2-2 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 APPLICABILITY: This schedule applies to commercial establishments and multi-unit apartment dwellings using refuse containers rented from the contractor. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City. RATES: COMMERCIAL BINS Size (cubic yards) Monthly Collection Cost (Standard Service) Col~ecti(m Frequency 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 1 $ 120.82 247.01 373.19 498.05 1.5 $165.12 340.31 516.17 690.69 2 $209.42 433.60 659.14 883.32 3 $296.68 620.21 942.40 1,265.92 4 $394.68 797.41 1,239.07 1,661.94 5 $481.93 1,002.81 1,523.67 2,044.53 6 $ 579.94 1,200.14 1,819.01 2,439.22 8 $ 755.79 1,572.00 2,389.54 3,207.09 Monthly Bin Rental 624.23 749.08 $35.24 865.87 1,040.39 35.24 1,107.51 1,331.71 45.86 1,589.45 1,912.98 57.80 2,083.47 2,505.00 57.80 2,565.41 3,086.27 70.48 3,059.42 3,678.29 70.48 4,024.63 4,842A9 93.03 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-18 dated 7-01-05 Effective 7-1-2007 Sheet No. R-3-1;~ COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) DEBRIS BOX SERVICE FOR SOLID WASTE AND RECYCLABLE CONSTRUCTION AND DEMOLITION MATERIALS* On-Call Service Delivery Service Total 7 CY 15 CY 20 CY 30 CY 40 CY $ 106.05 $ 106.05 $ 106.05 $ 106.05 $ 106.05 459.12 459.12 532.95 681.96 743.71 565.17 565.17 639.00 788.02 849.76 Non-use **$59.07 $59.07 $59.07 $59.07 $59.07 Minimum Overfull 40.27 40.27 53.70 67.12 80.89 Abandoned Service 53.70 53.70 53.70 53.70 53.70 ----* Additional contaminated charge of $152.55 may apply on debris boxes used for construction and demolition materials --**Within a seven (7) day period Single-Source Separated Debris Box Delivery* Service Monthly Rental 7 CY 318.83 15 CY 20 CY $ 98.20 $ 98.20 318.83 ~ 1~ 117.46 117.46 156.62 30 CY 40 CY $98.20 $98.20 -516.47A "/"2 ’~ 234.93 293.66 $-44490 -$ ~67.12 80.55 53.70 53.70 Non-use **$59.07 Minimum -OOverfull ~A)0-40.27 Abandoned Service 40:00-53.70 $-4449O 40.27 53.70 53.70 53.70 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-2~3 dated 7-01-05 Effective 7-1-2007 Sheet No. R-3-2-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) ~--* Waived if renting monthly --**Within a seven (7) day period CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-23 dated 7-01-05 Effective 7-1-2007 Sheet No. R-3-2-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) Permanent Service Collection Frequency Size lx/week 1 "~A 0"7 15 CY 1,791.19 20 CY 2,178.56 30 CY --2,3984~ 2,797.78 2x/week 3,582.35 4,357.14 5,595.53 Monthly Box 3x/week Rental 5,373.55 94-.-.-.-.-.-.-.-.-~ 126.87 ~~169.156,535.71 6,252.29 1~9.00 253.728,393.32 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-38 dated 7-01-05 Effective 7-1-2007 Sheet No. R-3-3-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) Yard Trimmings Debris Box Service Size lx 2x $ 225.79 $ a,51.5715 CY 303.10 606.21 20 CY ...... 525.$2 707.22.353.61 30 CY 2E2.55 379.33 555.11 758.63 Monthly Box 3x Rental $ 577.35 909.32 94-.g0-126.87 -1--2-64~169.151060.82 1137.96 ~253.72 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-33 dated 7-01-05 Effective 7-1-2007 Sheet No. R-3-3-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) DETACHABLE CONTAINER RENTAL: Cubic Yard Per Month 1 1.5 2 3-4 5-6 8-10 15 26.25 35.24 ..................................................................................................................... =34-.-1-5-45.86 A’2 t~ 57.80 ............................................................................. i .......................................gg-.-.g0-70.48 ..................................................................................................................... 69-.30-93.03 126.87 20 ..............................................................................................................~ .......-1-26t;10169.15 30 1 QI3 /3/3 253.72 SPECIAL PROVISION: The monthly charge to multi-unit apartment dwellings will be billed to the owner. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-43 dated 7-01-05 Effective 7-1-2007 Sheet No. R-3-4-3 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 ’ (Continued) De Eo SPECIAL ITEM CHARGES/COLLECT!ON: 1. Stove/washer/dryer/water heater pick up * ......................................................................30.00 2. Freezer/refrigerator/air conditioner pick up * ..................................................................30.00 3. Upholstered furniture pick up * .......................................................................................20.00 4. Mattress pick up * ............................................................................................................20.00 5. Tire pick up (per tire, limit of 4 tires) * ...........................................................................15.00 * Surcharge special applied, when not collected under the cleanup guideline program. SPECIAL LABOR CHARGES: 1.Urgent special (per cubic yard charge, outside of routine services). ........................... ....................................................................................................................................... 49.40 2.Miscellaneous 1 person service rate ........................................................................... 2.~0 .................................................................................................................................... 3.22/min " 3. Miscellaneous 2 person service rate ........................................................................... 3.19 .................................................................................................................................... 4.16/rain 4. Surcharge special ............................................................................................................. o .......................................................................... 570.48 Repair rate .................................................................................................................................... Hand Pick up (per cubic yard) ....................................................................... .......................................................................................................................................... 51.49 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. R-3-4 dated 7-01-05 Effective 7-1=2007 Sheet No. R-3-4 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) Go SPECIAL BIN CHARGES: 1.Counter balance lid (3&4 yd) ........................................................................................... 58.00 .......................................................................................................................................... 77.86 2.Counter balance lid (5&6 yd) ........................................................................................... 67.50 .......................................................................................................................................... 90.61 3.Temporary bin-delivery (1) .............................................................................................. 54.60 .......................................................................................................................................... 73.29 4.Temporary bin-delivery (2) .............................................................................................. 75.00 .......................................................................................................................................... 100.68 5.Temporary bin-delivery (3) .............................................................................................. 95.50 .......................................................................................................................................... 128.20 6. Temporary bin-delivery (4) ................................................................ 150,00 __ 201.37 7. Temporary bin-weekly fee ...............................................................................................15.5~ .......................................................................................................................................... 22,15 8. Bin wash ........................................................................................................................... 27.05 .......................................................................................................................................... 36.32 9. Key service per pick-up ................................................................................................... 2.30 10.Lock (PASCO provided) .................................................................................................. 16.59 .......................................................................................................................................... 22.15 11. Auto-bar lock installation ................................................................................................129.35 .............................................................................................. , ...............................’ .............173.65 SPECIAL DEBRIS BOX CHARGES: 1.Drop-box delivery ............................................................................................................ 79,00 .......................................................................................................................................... 106.05 2.Additional fee for delivery to Service Area 2 .................................................................. ~12.00 .......................................................................................................................................... 56.39 3. Drop-box non-use .............................................................................. ~1~1.00__ 59.07 4, 15 yd box-overfull .............................................................................30.00.__ 40.27 5. 20 yd box-overfull ..............................................................................A,9.00 __ 53.70 6. 30 yd box-overfull ..............................................................................50.00 __ 67.12 7. 40 yd box-overfull .................................................................................. CITY OF PALO ALTO UTILITIES Issued by the City Council . Effective 7-1-2007 Original Sheet No. R-3-5 COMMERCIAL REFUSE COLLECTION UTILITY RATE SCHEDULE R-3 (Continued) .......................................................................................................................................... 80.55 8. Special debris box service between 12 PM to 6 PM ........................................................ 52.50 .......................................................................................................................................... 70.48 9. Special debris box service between 6 PM to 12 AM ....................................................... 105.00 .......................................................................................................................................... 140.96 10. Special debris box service on Saturday before 12 PM ..................................................... 52.50 .......................................................................................................................................... 70.48 11. Special debris box service on Sunday before 6 PM .......................................................... 211.43 12.Special debris box service on Sunday, 6 PM to 12 AM .................................................. 219.99 .......................................................................................................................................... 281.91 13. Contaminated loads of construction and demolition recycling materials. ...................... .......................................................................................................................................... 152.55 14. On call compactor ............................................................................. 29.99 __ .......................................................................................................................................... 52.35 - 15. Compactor/drop box wash .............................................................................................. 55.85 .......................................................................................................................................... 74.99 16.Compacted refuse (per compacted cubic yard) ................................................................ $36.~9 .......................................................................................................................................... 49.40 CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-2007 Original Sheet No. R-3-5 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 A.PREPARATION AND PRORATION OF BILLS: e Bills for utility services will be prepared monthly 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, all fiber optics leasing fees, and other non-metered services will be prorated if the number of actual service days is less than 25 or greater than 40. 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, fiber optic, 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 connection 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, therms, and/or ccf. C.PAYMENT OF BILLS: CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-01-2006 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 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 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. Do o 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 MasterCard payments can be processed at Revenue Collections. t 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 between 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 to be deducted from their bank account, and directing the bank to issue payment to CPAU electronically. e By signing up for the Utilities Bank Draft Program. Payments will be drafted from a designated checking or saving account and automatically applied to the Customer’s utility account monthly. 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. o Based onthe 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 control. Two examples are: CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 2 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 o (A)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 to the amount of the Customer’ s pledge. 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 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 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. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 3 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 o 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 correctness of a bill is questioned or disputed by the Customer, an explanation should be requested from a Utilities Customer Service Representative within fi~,e (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 (A)A Customer who has initiated a complaint or requested an investigation within five (5) business 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. (c)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. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 4 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 (D) (E) 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. Go 3.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. BILLING ADJUSTMENTS: Under certain circumstances, CPAU will adjust a Customer’s bill to correct for billing error. 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 may include water or gas leak credits, smoothing, and in cases 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 adjustments for refuse service must be approved by the City’s Collector. 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, incorrect fiber optic billing, 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. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 5 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 1.SMOOTHING ADJUSTMENT (A)A smoothing adjustment averages the usage of a customer over two sequential billing periods. A Utilities Department Supervisor shall be authorized to approve any smoothing adjustments. (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 longer or irregular billing cycle occurring due to holiday meter reading schedules, or other reason. 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 or six months, whichever is less. Any applicable late payment will be waived. (B)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 consumption based upon the Customer’s prior use for the period the meter was in use or six months, whichever is less. Any applicable late payment penalties will be waived. (c)When, as a result of a test, a commercial meter 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 for the period the meter was in use or one year, whichever is less. Any applicable late payment penalties will be waived. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 6 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 o o APPLICABLE ADJUSTMENT PERIOD FOR METER ERRORS, RETROACTIVE BILLING, AND REFUNDS (A)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: O)Where a residential Customer has been undercharged or overcharged, the period to be back-billed or refunded shall not exceed 6 months; (2)Where a commercial Customer has been undercharged or overcharged, the period to be back-billed or refunded shall not exceed 12 months; (B)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. All underpayments or non-payments shall become immediately due and payable. A repayment schedule to amortize such payments shall be approved by the Director of Utilities.. WATER OR GAS LEAK CREDITS: Billing adjustments may not be made for water or gas lost as a result of leakage in a line on the Customer premises beyond the CPAU meter, unless it is determined that CPAU or other City staff were solely responsible for such leakage. It is the Customer’s responsibility to maintain their lines and equipment in a reasonable condition such that leaks do not occur. 0 BILLING ADJUSTMENTS IN CONNECTION WITH FORCE MAJEURE EVENTS (A)For purposes of this Rule and Regulation, the term "force majeure" means the occurrence of an event that is beyond the reasonable control of the utility Customer and, which by reasonable efforts, the Customer could not prevent. Such events include, but are not limited to, an Act of God, an irresistible, superhuman cause, fire, flood, earthquake, or any other similar cause. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 7 (c) (D) BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 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 0r summer, or other appropriate period(s) as determined by the Director of Utilities. Debris Boxes (1)A billing adjustment or refund in connection with debris boxes serviced by the City’s contracted Collector shall be limited to City’s Collector 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 City’s Collector will keep a record of those residences and businesses that request debris boxes during the applicable refund period. Billing adjustments for refuse service must be approved by the City’s Collector. 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. Billing adjustments for refuse service must be approved by the City’s Collector. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 8 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 that Customers pay a revised monthly amount as a condition to continuing participation in the plan. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006_7 Sheet No. 9 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 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)The customer notifies CPAU to terminate participation in the plan; (B)CPAU notifies the customer of the termination of its budget payment plan: (C)The Customer no longer takes service at the premises; or (D)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. (E)The Customer participates in Direct Access and buys from another Energy Service Provider. Upon termination of either CPAU service or participation inthe 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. 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. Q o 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. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 10 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 Jo o Property owners may bill the cost of providing utilities to individual tenants separately from rent only with written consent of the Director of Utilities. Charges for utilities may be allocated based upon metering, square footage, or another methodology determined to be appropriate or reasonable by CPAU. The allocation methodology must be submitted in, writing, for approval by CPAU. Permission to use the indicated allocation methodology will be made or denied by CPAU, in writing, within thirty calendar days. A property owner changing the allocation methodology must secure new permission by CPAU prior to implementation of any new allocation methodology. 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, which have been charged to the sub-metering property owner. CPAU reserves the right to obtain written verification of the allocation methodology from each property owner providing sub-metered services to residential or commercial tenants. So Those who lease fiber optic services may use fiber optics to serve themselves or third parties; however, compliance with all Rules and Regulations, and payment of all fees is the responsibility of the lease holder. Compliance with all Rules and Regulations, City Ordinances, and State Law, and payment of fees are the responsibility of the lease holder. ACCOUNTING, BILLING, AND PAYMENT FOR GAS SERVICE PROVIDERS 1.INFORMATION CHARGES o 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. BILLING All billings between the Gas Service Provider and CPAU for services under a Gas Service Provider Agreement shall be performed by CPAU or the Pool Manager on a calendar month basis. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 11 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 (A) (B) (c) (D) ~) (F) 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 statements 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. Bills sent to the Gas Service Provider shall be sent to the appropriate billing address specified in the Gas Service Provider Agreement. 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 Service Provider Agreement, or by electronic funds transfer to accounts specified in The Gas Service Provider Agreement. 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 bedeemed paid on the dates of receipt by CPAU. 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 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. 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, ~d, upon resolution, shall be included in the billing statement for the next regular Billing Period. CITY OF PALO ALTO UTILITIES Issued by the City Council CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. 12 BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS RULE AND REGULATION 11 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 right 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 CITY OF PALO ALTO UTILIT ES Effective 7-1-2006 Sheet No. 13