HomeMy WebLinkAboutStaff Report 281-07FROM:CITY 3,~kNAGER DEPARTMENT: PUBLIC WORKS
DATE:
SUBJECT:
JUNE 11, 2007 CMR:281:07
TRANSMITTAL OF FINANCE COMMITTEE
RECOMMENDATION TO COUNCIL FOR A~PROVAL OF
REFUSE RATE INCREASE; REQUEST FOR ADOPTION OF A
RESOLUTION TO AMEND UTILITY RATE SCHEDULES R-l, R-2,
Ahq) R-3, AND UTILIT~S RULE AND REGULATION 11
RECOM-MENDATION
The Finance Committee and staff 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:
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 FY 2007-08 to meet the increased fmancial obligations of the
Refuse Fund.
Amend Utilities Rule and Regulation 11 "Billing, Adjustments, and Paswnents of Bills" to
create consistency on the adjustment periods between the Refuse Utility and the other
City Utilities.
COMMITTEE REVIEW AND RECOMMENDATIONS
On April 17, 2007, the Finance Committee discussed the proposed refuse rate increase
(CMR:208:07, Attachment B) and voted 4 to 0 to recommend that the Council approve a 13
increase. The $2,884,000 million in additional annual revenue is necessary to meet the increased
fmancial obligations of the Refuse Fund.
POLICY IMPLICATIONS
Water, wastewater and refuse fees are subject to the requirements of Proposition 218, codified as
Article 13D of the California Constitution. Pursuant to Proposition 218, the City- must provide
written notice of any proposal to impose or increase a water, wastewater, or refuse fee to those
subject to the fee. A public hearing on the new or increased fee must be held not less than 45
days after mailing the required notice. At the hearing, the Counci! must consider all protests, and
if written protests against the proposed fee are presented by a majority of those subject to the fee,
the City may not impose the new fee.
CMR:281:07 Page 1 of 2
On April 23, 2007, Utilities and Public Works jointly mailed over 27,000 ’notice of Utility Rate
Change" letters to impacted customers at a cost of $17,000. Wastewater customers were not
notified since there is no proposed rate increase for wastewater collection for FY 2007-08.
Residents who wish to protest the rate increase were instructed to do so in wTiting, even if they
planned on attending the public hearing. At the time this report was written, the City Clerk had
received 49 protests for the proposed refuse rate increase.
Information about the proposed rate changes was included in Frank’s Memo on May 25, 2007.
In addition, a publication was created with a list of frequently asked questions regarding the
proposed refuse rates and was posted on the City’s web page (Attachment C).
ATTACHMENTS
Attachment A: Resolution (vdth attachments)
Attachment B: CMR:208:07 (without attachments)
Attachment C: Refuse Rates Frequently Asked Questions
PREPARED BY:
DEPARTMENT HEAD:
CITY M_ANAGER APPROVAL:
~ULA BORGES FUJIk@TO
Executive Assistant
OLE’~ S. KOBERTS
Director of PuNic Works
EMILY
Assistant City Manager
CMR:281:07 Page 2 of 2
NOT YET APPROVED ATTACH_MENT A
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING UTILITY RATESCHEDULES R-l, R-2, AND R-3 OF
THE CITY OF PALO ALTOUTILITIES RATES AND CHARGES
PERTAINING TO REFUSECOLLECTION AND AMENDING
RULE AND REGULATION 11 GOVERNING UTILITY SERVICES
WHEREAS, pursuant to Chapter 12.20.010 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
WHEREAS, pursuant to Article XIKD Sec. 6 of the California Constitution, on
June 11, 2007 the Council of the City of Palo Alto held a public hearing to consider/ill protests
against the propo_sed refuse rate fee increases; and
WHEREAS, the total number of written protests presented by the close of the
public hearing was less than fifty percent (50%) of the total number of customers subject to the
proposed refuse rate fee increases.
follows:
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as
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-l-1 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, R-3-3, R-3-4 and R-3-5 attached hereto and incorporated
herein. The foregoing Utility Rate Schedules, as amended, shall become effective on July 1,
2007
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal code, Rule
and Regulation 11 (Billing, Adjustments and Payment of Bills), is hereby amended to read as set
forth in amended rule and regulation 11 attached hereto and incorporated herein. The amended
070606syn6050124
NOT YET APPROVED
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.
SECTION 6. The Council finds that the adoption of this resolution does not
constitute a project under the California Environmental Quality Act, California Public Resources
Code section 21080, subdivision (b)(8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
Deputy City Attorney
Director of Public Works
City Manager
Director of Administrative
Services
070606 sm6050124 2
Uo
Co
DOMESTIC ~FUSE COLLECTION
UTILITY R_ATE SCHEDULE R-1
APPLICABILITY:
This schedule applies to each occupied domestic dwelling as required by Ci~,- 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.
TERRITORY:
Within the incorporated limits of the CiD, of Palo Alto and on land owned or leased by the CiD.
RATES:
Separate single-family domestic dwelling and apartment dwellings.
Monthly Collection Cost
Collection Frequency Per Week
Number of
Cans One Two Three
Mini-can *19.06
1 24.16"*
2 49.73 113.07 176.40
3 75.30 164.20 _~_~.11
4 100.86 215.34 329.81
5 126.44 266.48 406.52
6 152.00 317.61 483.22
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 Ci~’ Council
Supersedes Sheet No.R-l-1 dated 7-01-05
Effective 7-01-2007
Sheet No. R-1-1
DOMESTIC REFUSE COLLECTION
go
SPECIAL ITEM CHARGES:
UTILITY RATE SCHEDULE R-1
(Continued)
1.Stove/washer!dryer/water heater pickup * .......................................................................25.00
2.Freezer!refrigerator/air conditioner pickup * ...................................................................25.00
3.Upholstered furniture pickup (per unit) * ........................................................................15.00
4.Mattress pickup * .............................................................................................................15.00
5.Tire pickup (per tire, limit of 4 tires) * ............................................................................10.00
6.Pallet pick up * ................................................................................................................5.00
* "Surcharge special" fee applied, when not collected under the cleanup guideline pro~am.
SPECIAL LABOR CHARGES:
!.Return trip (for services missed) ......................................................................................21.96
2.Urgent special (per cubic yard charge, outside of routine services) ................................49.40
3.Miscellaneous 1 person service rate ..........................................................................3.22/rain
4.Miscellaneous 2 person service rate " 4.16!rain
5.Surcharge special .............................................................................................................70.48
6.Repair rat~ ................................................................................................2.01/rain + material
7.Hand pick up (per cubic yard) .........................................................................................51.49
8.Extra can (curbside) .........................................................................................................8.72
9.Extra can (backyard) ........................................................................................................11.41
F°SPECIAL CART CHARGES:
2.
3.
4.
5.
6.
7.
8.
9.
10
20 gallon cart
32 gallon cart
64 gallon cart
96 gallon cart
20-gallon cart
32 gallon cart
64 gallon cart
rental.........................................................................................................2.44
rental .........................................................................................................2.44
rental.........................................................................................................2.44
rental .........................................................................................................2.44
purchase ...................................................................................................48.82
purchase ...................................................................................................48.82
purchase ....................................................................................................54.92
96 gallon cart purchase ....................................................................................................6 ! .02
Cart wash .........................................................................................................................20.14
Cart clean out (by hand) ...................................................................................................13.42
Recycling cart contamination (entire cart dumped) .........................................................26.85
Cart exchange (one exchange allowed per cart each calendar year at no cost) ...............18.31
Key service per pick-up ...................................................................................................3.08
Lock (PASCO provided) .................................................................................................22.15
Cart lock installation ........................................................................................................33.56
{End}
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.R-l-2 dated 7-01-05
Effective 7-01-2007
Sheet No. R-1-2
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 Cib7 of Palo Alto and on land owned or leased by the City.
RATES:
Monthly
Collection Cost
Number of OneCans
1 $24.16
2 49.73*
3 75.30
4 100.86
5 126.44
6 152.00
Collection Frequency per Week
Two Three Four Five Six
$113.07 $176.40 $239.75 $303.09 $366.43
!64.20 253.11 342.02 430.93 519.83
215.34 329.81 444.28 558.76 673.23
266.48 406.52 546.56 686.60 826.64
317.61 483.22 648.82 814.44 980.04
* Standard service is two can service.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.R-2-1 dated 7-01-05
Effective 7-01-2007
Sheet No. R-2-1
D.SPECIAL ITEM CHARGES:
Eo
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-2
(Continued)
1.Stove/washer/dryer!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
6.Pallet pick up * ................................................................................................................5.00
*"Surcharge special" fee applied, when not collected under the cleanup guidelines.
SPECIAL LABOR CHARGES:
1. Return trip (for services missed, with request for same day service) ..............................33.56
2. Return trip (for seiwices missed, with request for next day sela,ice) ...............................21.96
3.Urgent special (per cubic yard charge, outside of routine services) ......................- ..........49.40
4.Miscellaneous 1 person service rate ..........................................................................3.22/rain
6.Miscellaneous 2 person service rate ..........................................................................4.16/rain
7.Surcharge special .............................................................................................................70.48
8.Repair rate ...................................................................................................2.01/rain + material
9.Hand pick-up (per cubic yard) .........................................................................................51.49
10. Extra can ..........................................................................................................................11.41
SPECIAL CART CHARGES:
1. 32 gallon cart rental .........................................................................................................2.44
2.64 gallon cart rental .........................................................................................................2.44
3.96 gallon cart rental .........................................................................................................2.44
4.~_ gallon cart purchase ....................................................................................................48.82
5.64 gallon cart purchase ....................................................................................................54.92
6.96 gallon cart purchase ....................................................................................................61.02
7.Cart wash .........................................................................................................................20.14
8.Cart clean out (by hand) ..................................................................................................13.42
9.Recycling cart contamination (entire cart dumped) ........................................................26.85
10. Cart exchange (one exchange allowed per cart each calendar year at no cost) ...............18.3 I
11 Key service per pick-up ...................................................................................................3.08
12 Lock (PASCO provided) .................................................................................................22.15
13. Cart lock installation ........................................................................................................33.56
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.R-2-2 dated 7-01-05
Effective 7-01-2007
Sheet No. R-2-2
Bo
COMMERCIAL REFUSE COLLECTION
UTILITY KATE SCHEDULE R-3
APPLICABILITY:
This schedule applies to commercial establishments and multi-unit apartmem dwellings using refuse
containers rented from the contractor.
TERR!TORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the Cib’.
RATES:
COMMERCIAL BINS
Size
(cubic
yards)
Monthly
Collection Cost
(Standard Service)
Collection Frequency
1x/week 2x/week 3 x/week 4x/week 5x/week 6x/week
1 $120.82 247.01
1.5 $ 165.12 340.31
2 $209.42 433.60
3 $296.68 620.21
4 $394.68 797.41
5 $ 481.93 1,002.81
6 $ 579.94 1,200.14
8 $ 755.79 1,572.00
373.19 498.05 624.23
516.17 690.69 865.87
659.14 883.32 1,107.5I
942.40 1,265.92 1,589.45
1,239.07 1,661.94 2,083.47
1,523.67 2,044.53 2,565.41
1,8!9.01 2,439.22 3,059.42
2,389.54 3,207.09 4,024.63
749.08
1.040.39
1.331.71
1,912.98
2.505.00
3.086.27
3.678.29
4.842.19
Monthly
Bin
Rental
$35.24
9~.24
45.86
57.80
57.80
70.48
70.48
93.03
CITY OF PALO ALTO UTILITIES
Issued by the CiD- Council
Supersedes Sheet No. R-3-1 dated 7-01-05
Effective 7-1-2007
Sheet No. R-3-1
COMMERCIAL REFUSE COLLECTION
UTILITY R_ATE SCHEDULE R-3
(Continued)
DEBRIS BOX SERVICE FOR SOLID WASTE AND RECYCLABLE CONSTRUCTION
AND DEMOLITION MATERIALS*
On-Call Service
Deliver),
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
Sen, ice 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
7 CY 15 CY 20 CY 30 CY 40 CY
Delivery-*$98.20 $98.20 $98.20 $98.20 $98.20
Service 318.83 318.83 370.10 473.58 516.47
Monthly Rental 117.46 117.46 156.62 234.93 293.66
Non-use**$59.07 $59.07 $59.07 $59.07 $59.07
Minimum
Overfu!l 40.27 40.27 53.70 67.12 80.55
Abandoned
Service 53.70 53.70 53,70 53.70 53.70
* Waived if renting monthly
**Within a seven (7) day period
CITY OF PALO ALTO UTILITIES
Issued by the CiW Council
Supersedes Sheet No. R-3-2 dated 7-01-05
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-3
(Continued)
Size
15 CY
20 CY
30 CY
Permanent Service
Collection Frequency
1x/week 2xAveek
1,791.19 $3,582.35
2,178.56 4,357.14
2,797.78 5,595.53
3~week
5,373.55
6,535.71
8,393.32
Monthly Box
Rental
$!26.87
169.15
253.72
Size
15 CY
20 CY
30 CY
!Tard Trimmings Debris Box
Serwice
lx 2x
303.10 $606.21
353.61 707.22
379.33 758.63
Monthly Box
3x Rental
909.32 $126.87
1,060.82 169.15
1,137.96 253.72
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. R-3-3 dated 7-01-05
Effective 7-1-2007
Sheet No. R-3-3
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-3
(Continued)
DETACHABLE CONTAINER RENTAL:
Cubic Yard Per Monfl~
1
1.5
2
3-4
5-6
8-10
15
20
30
SPECIAL PROVISION:
The monthly charge to multi-unit apartment dwellings will be billed to the owner.
35.24
35.24
45.86
57.80
70.48
%.0_~
126.87
169.15
253.72
Do SPECIAL ITEM CHARGES:
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 pro~am.
SPECIAL LABOR CHARGES:
1. Urgent special (per cubic yard charge, outside of routine services) .............................49.40
2. Miscellaneous 1 person service rate ..........................................................................3.22/rain
3. Miscellaneous 2 person service rate ..........................................................................4.16/rain
4. Surcharge specia! .............................................................................................................70.48
5. Repair rate ................................................................................................2.01/rain + material
6. Hand Pick up (per cubic yard) .........................................................................................51.49
CITY OF PALO ALTO UTILITIES
Issued by the CiD~ Council
Supersedes Sheet No. R-3-4 dated 7-01-05
---’oi( ~ ,, .Effective 7-1-2007\*’~" ~-~-~’~Sheet No. R-3-4
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-3
(Continued)
SPECIAL BIN CHARGES:
1.Counter balance lid (3&4 yd) ..........................................................................................77.86
2.Counter balance lid (5&6 yd) ..........................................................................................90.61
3.Temporarybin-delivery (1) ..............................................................................................73.29
4.Temporary bin-delivery (2) ..............................................................................................100.68
5.Temporary bin-delivery (3) ..............................................................................................128.20
6.Temporar~-bin-delivery (4) ..............................................................................................201.37
7.Temporary bin-weekly fee ...............................................................................................22.15
8.Bin wash ..........................................................................................................................36.32
9.Key service per pick-up ...................................................................................................3.08
10. Lock (PASCO provided) .................................................................................................22.15
11. Auto-bar lock installation ................................................................................................173.65
SPECIAL DEBR!S BOX CHARGES:
1.Drop-box delivery ............................................................................................................106.05
2.Additional fee for delivery to Service .Area 2 ..................................................................56.39
3.Drop-box non-use ............................................................................................................59.07
4.15 yd box-overfull ...........................................................................................................40.27
5.20 ydbox-overfull ...........................................................................................................53.70
6.30 yd box-overfull ...........................................................................................................67.12
7.40 yd box-overfull ...........................................................................................................80.55
8.Special debris box service between 12 PM to 6 PM .......................................................70.48
9.Special debris box service between 6 PM to 12 AM .......................................................140.96
10. Special debris box service on Saturday before 12 PM ....................................................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 ..................................................281.91
13. Contaminated loads of construction and demolition recycling materials ........................152.55
14. On call compactor ............................................................................................................52.35
15. Compactor/drop box w-ash ..............................................................................................74.99
16. Compacted refuse (per compacted cubic yard) ................................................................49.40
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. R-3-5 dated 7-01-05
Effective 7-1-2007
Sheet No. R-3-5
BILLING, ADJUSTMENTS, AN~D PAYS~NT OF BILLS
RULE AND REGL~ATION 11
A.PREPARATION AND PROtL&TION OF BILLS:
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) wi!! occur when the actual days of service differ from the standard 30-day b_illing
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.
B. BILLING U2NRTS:
All metered billing units used for billing purposes shall be determined to the nearest whole
unit. Such units may inc!ude, kW, kwh, kVA, kVar, hp, therms, and/or ccf.
C.PAYM~ENT OF BILLS:
CITY OF PALO ALTO UTILITIES
Issued by the City Council
CITY OF PALO ALTO
UTILITIES
Effective 7-01~2007
Sheet No. 1
BILLING, ADJUSTMENTS, AIND PAYMENT OF BILLS
RLrLE AND REGULATION 11
CPAU issues bills to its customers on a monthly basis. Bills shall be deemed received upon personal
deliver}, 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. K a
Customer’s payment is not received by CPAU before the next bil! 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 MasterCard
payments can be processed at Revenue Collections.
By drdpping the payment in the Night Deposito13, 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.
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.
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 control. Two examples are:
CITY OF PALO ALTO UTILITIES
Issued by the City Council
CITY OF PALO ALTO
UTILITIES
Effective 7-1-~f~2007
Sheet No. 2
BILLING, ADJUST~ENTS, ANq) PAYMENT OF BILLS
R!,37..~ AND ~GU~ATION i 1
(A)The posting of payments received by CPAU is delayed or in error.
(B)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 bil! 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
bi!ls 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 7-1-20(~:’x2007
Sheet No. 3
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
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 wil! 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 ~orrectness 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. K the bill is determined to be incorrect, a corrected bill will be
issued to the Customer.
2.BILL REVIEW PROCEDURE
(A)
(B)
(c)
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 sha!l
include consideration of whether the Customer should be permitted to amortize the
unpaid balance of their account over a reasonable period of time.
After reviewing the disputed bill, the Supervisor, Customer Service Center will:
(1)Authorize any necessary adjustments; or
(2)Advise the Customer that the bill is correct as presented; and
(3)Determine if an amortization period is warranted.
If an amortization period is wan’anted 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-~2007
Sheet No. 4
BILLING, ADJUST~,IENTS, AND PAYMENT OF BILLS
RULE ANrD REGL~ATION 11
(D)
(E)
K 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 wi!! constitute acceptance by the
Customer of the bill as rendered.
3.PAYSiENT 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- I-~2007
Sheet No. 5
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 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.
A smoothing adjustment may be appropriate if consumption between two bi!ling
cycles changes to an extraordinary high level and is caused by the following:
(!) An estimated meter reading by CPAU; or
(2)A longer or irregular billing cycle occurring due to holiday meter reading
schedules, or other reason.
5~ETER ERRORS AN~ OTHER BILLING ADJUSTM]~NTS
(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
C~TY OF PALO ALTO
UTILITIES
Effective 7-1-~2007
Sheet No. 6
BILLING, ADJUST~ENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
APPLICABLE ADJUSTS~ENT 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:
(1)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 commercia! Customer has been undercharged or overcharged, the
period to be back-billed or 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.
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.
BILLING ADJUSTMENTS IN CONNECTION ~NITH FORCE N~AJEURE 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- i-~2007
Sheet No. 7
(B)
(c)
(D)
BILLING, ADJUSTM~ENTS, 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 wim~r or
summer, or other appropriate period(s) as determined by the Director of
Utilities.
Debris Boxes
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
CIT"r’ OF PALO ALTO
UTILITIES
Effective -7-1-~2007
Sheet No. 8
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RULE AND REGULATION 11
REFUSE BILLING DISPUTES AND ADJUSTMENTS
(A)Adjustments to the refuse bill shall be requested to the City’s collector. Customers
with adjustments unresolved by the City’s collector, may dispute their claim with the
City’s Public Works Department. Billing adjustments wil! be resolved by following
the City’ s Rules and Regulations and specific regulations established in Chapter 5.20
of the Palo Alto Municipal Code.
(B)When an error in billing has occurred, the date and cause of which can be reliably
established, the retroactive billing adjustment wil! apply as follows:
Where a residential Customer has been undercharged or overcharged, the
period to be back-billed or refunded shall not exceed 6 months:. ,~,. "~::, ~ ....... ~:~..~"-"o._
(2)Where a commercial Customer has been undercharged or overcharged, the
period to be back-billed or refunded shall not exceed !2 months: ~-"i-~crc :i-<~
(c)Customers requesting refuse collection services to be suspended or requesting for a
service credit to be issued shal! obtain from the City a non-occupancy status. Refuse
bill shall be adjusted accordingly upon approva! from the City’s Collector.
BUDGET BILLING PAYMI~NT PLAN:
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 providing the Customer
account balance is zero and the Customer has not been previously removed from the Budget
Billing plan for non-payment.
o A Customer electing to utilize the plan shall agree to make monthly payments based on
CPAU’s estimate of the Customers’ charges for the twelve-month period.
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
CITY OF PALO ALTO UTILITIES
Issued by the City Council
CITY OF PALO ALTO
UTILITIES
Effective 7-1-~:42007
Sheet No. 9
BILLING, ADJUSTM_ENTS, ANq) PAYM]~NT 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 ALTOIITII tTIES
Effective 7-1~2007
Sheet No. 9
BILLING, ADJUSTMENTS, AND PAYMENT OF BILLS
RLrLE ANrD 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, remova! 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 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.
RESALE PROHIBITED:
Customer shall use services only for the purposes specified in the service agreement
and applicable rate schedule(s). CPAU service sha!l 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.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
CITy OF PALO ALTO
UTILITIES
Effective 7-1-~:~2007
Sheet No. 10
BILLING, ADJUSTMENTS, AN3) PAYM~ENT OF BILLS
RULE A1NrD REGULATION 11
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 al!ocation
methodology must be submitted in, writing, for approval by CPAU. Permission to
use the indicated allocation methodo!ogy wilt 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 re_ceive
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.
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 al! 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.INTORMATION 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.
BILLING
Al! 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
I ITII ITIFR
Effective 7-1-~2007
Sheet No. 11
BILLING, ADJUSTM~;NTS, AND PAYMENT OF BILLS
RULE AiXrD REGULATION 11
(A)All billing statements shall reflect the period from 7:00 a.m. PST on the first Day of
each calendar month unti! 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.
(B)Bills sent to the Gas Service Provider shall be sent to the appropriate billing address
specified in the Gas Service Provider Agreement.
(c)Pasa-nents for amounts billed to the Gas Service Provider shall be due on the last Day
of the month in which the biIIing 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 t9 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 A~eement, 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.
(E)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.
(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.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
CITY OF PALO ALTO
UTILITIES
Effective 7-1-~2007
Sheet No. 12
BILLING, ADJUSTMENTS, AND PAYM~ENT OF BILLS
RULE ANI) REGULATION 11
3.RECORDS
CPAU and the Gas Service Provider shall keep accounting records and books for two (2)
yems 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
UTILITIES
Effective 7-1-~2007
Sheet No. 13
TO:
ATTN:
FROM:
ATTACI-D~ENT B
DEPARTN~NT: PUBLIC WORKSCITY NL~NAGER
DATE:APRIL 17, 2007 CMR:208:07
SUB~CT:APPROVAL OF REFUSE RATE LNCREASE; REQUEST FOR
ADOPTION OF A RESOLUTIONTO AMEND UTILITY RATE
SCI~DULES R-!, R-2, AND R-3,.~ND UTILITIES RULE ~ND
REGULATION 11
RECOMMENDATIONS
Staff requests ~at the Finance CommAttee reco,-rnmend ~at the Council approve a thL~teen
percent refuse rate increase and adopt the a~ached resolution (Attachment A) ch~ging the
Utility, Rate Schedules and Utility Rule and Re~alation ! 1. Specifically:
Amend Utility Rate Schedules R-l, "Domestic ReUse Collection," R-2, "Cormnercia!
Refuse Collection," and R-3, "Cormnercial Refuse Collection," for a thirteen percent
increase in refuse rates for R-l, R-2, and R-3 for FY 2007-08 to maintain t~he Refuse
Fund Rate Stabilization Reserve (RSR) at the Council-adopted level.
2.Amend Utilities Rule and Re~maiation i ! "Billing, Adjustmems, and Pay~-nents of Bilis" 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) occm-red in
May 2005 (CMR:256:05). At that time, Comncil 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 progams.
Proposition 218 Notice
The City must give ‘sa-itten notice to ow-ners whose parcels ,5411 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 a~er the mailing
of notice to the affected o,smers. At the hearing, the Council must consider w~itten protests
against the imposition of any such new or.increased rate. If a majority~ of the ovmers do object,
the new or increased rate may not be imposed. Because property o~nership is deemed to include
tenancies in properU where tenants are directly liable to pay for such utility service, the notice
must be sent tenants. A pending bill (AB 1260) would ciarif3~ that notice should be sent only ~o
customers (whether o‘5~aers or tenants) who receive the utility services.
C_M2R: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 am~ual!y. 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 shortfal! in recycling revenues.
SMART Station prevailing wage standard - $425,000. The Director of the California
Depm~:ment 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 up~ade project - $325,000. Several key pieces of the
mechanical sorting system, referred m as the matefia!s recovery system, have reached the
end of their useful lives and are in need of replacement. This project "M!I be financed
through bonds. There v,411 be one-time cost resulting from loss of diversion and revenues
during consmaction in 2007-08; and ongoing bond repa,~aaent costs through 2021.
Retiree Medical Liability - $243,000 - The retiree medical liabi!ity costs include the
anaount paid for current employees ($100,000), the eanount for furore retirees ($38,000),
and the amount for payment of past liabilities ($104,000). The retiree medical cost
allocations are pan of the Cit3,’s effort to comply with goverrkment accounting standards
(GASB 45) related to reth-ee medica! and the allocations are applied to all t~ands in the
ci~.
CIJ’ Project - Relocation of Landfill Facilities - $1,000,000 - 2"2~s project ~4il relocate the
existing recycling drop-off center, toll booth, scale and adwAnistrative trailer at the
lmndfill in order to begin landf!ll closure. Design and construction ",,,,-ill occur in FY 2008-
09. As indicated in the Baylands Master Plan,. the landfitl is scheduled to be closed
during 201 !. Relocating existing recycling drop-off center, landfill toll booth, scale and
administrative trailer is necessary to complete filling and to begin closure activity in ~e
area where they are currently located.
The proposed monthly rate would increase from $21.38 to $24.16 for residential customers v,4th
one 32-gallon can service. The table below shows the current rate for single-family residents,
the proposed rate increase (see Utili~~ Rate Schedule R-1 in A~achrnent B), and the proposed
difference.
Mini can (20 gallon)
One standard can
gallons)
(32
Refu,~e Rate for Single Family
Sen, ice Level Current Rate
(FY 2006-07)
$16.87
21.38
Dwellings, Utility,Rate Schedule R-1
Prol~osed Proposed
Rate Difference
(FY 007-9S) .......
$19.06 $2.19
24.i6 ....... 2.78
CM1K:208:07 Page 2 of 4
Two standard cans 44.01
(32 gallons each)
Tkree standard cans 66.64 75.30 8.66
........... ~32 gallons each)Four standard cans 89.26 100.86 11.60
(32 gallons each)
Staff surveyed surrounding jurisdictions to compare Palo Alto’s proposed single-family rates
with other communities’ rates. However, Palo Alto provides more selwices by the Refuse Fund
than do other jurisdictions, making it difficult to equally compare the service levels. Palo Atto’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 be!ow show that even with the
higher service levels, Palo Alto’s proposed rates are competitive in comparison to other
jurisdictions.
Current Single Family Rates I
From Surrounding Jurisdictions
Current .,rate (FY 2006-t17)I
Jurisdiction for one 3z-gallon can refuse
serwice ~
Palo Ait~ oroposed }S24.16 ~
~upeKino 118,66 i
Los Altos ~4.14 ~
Los ~tos Hills {28.03 ~
Mo~tain View 15.30 {
gan Jose ~20.15 .{
{Smnta Cl~a ~15.45 ~
~S~5~ale ~21.71
~verage rate
$20 49(excluding PaI~ A!t~)¯.
Changes to the Utilities Rule and Re~malation 11 are necessary to create consistency on the
adjustment periods between the Refuse utiliD* and the other CiD~ Utilities. In 2006, the Utilities
Department changed Rule and ReguIation 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 vd!l 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 requhed in
subsequent years.
ENVIRONMENTAL IMPACT
~-~m increase in ra~es to meet financial reserve needs is not subject to re’~,iew pursuanz to the
California Enviro~’nnenial Quality, Act (CEQA),. California Public Resources Code section ~i080, ~
subdivision (b)(8) and Title 14 California Code of Regulation section 15273 (a)(3).
ATTACHMENTS
Auaclvi~ent A:Resolution
Attaclva~ent B:Utility Rate Schedules R-l, R-2, and R-3
Attachment C:Utilities Rule and Regulation 11
PR_EPAR~D BY:
DEPARTMENT HEAD:
CITY ! La_NAGER APPROVAL:
"--~AULA BORGES
Executive Assistant
GLEI~ S.
Director of Public Works
Assi y Manager
CMR:208:07 Page 4 of 4
ATTACHMENT C
FAQs on Refuse Collection Rates
Proposed for FY 2007-08
Why was a Proposition 218 Notice sent to me about the Proposed Refuse Rate changes?
Proposition 218 amended the California Constitution and set a procedural requirement that public
agencies must follow in order to enact or increase a property-related fee. Since Proposition 218
applies to the refuse collection service rate increases and customer charges described here, the
City must provide written notice by mail to refuse customers subject to the proposed fees,
followed by a public hearing held not less than 45 days after the notice is mailed. The City will
meet these requirements through the mailing sent to customers on April 23, 2007, and the
scheduled public hearing to be held on June 11, 2007 at 7:00 p.m. in the Council Chambers. If
written protests against the proposed fees are not presented by a majority of customers, the City
may impose the fee.
For a copy of the notification letter, visit http//v,~,,~,,~,.c tvofoa oa!to.or.qlutitities!pdflBi#hornfinal.Ddf
or call the Customer Service Center at (650) 329-2161.
Why are refuse collection rates going up?
The proposed 13% refuse rate increase is necessary to maintain a Refuse Fund reserve
consistent with the Council-adopted reserve policy and to meet the increased financial obligations
related to refuse collection and processing services due to fue! and labor cost increases.
What is the impact of these rate changes to my refuse bill?
The overall impact to customer bills is listed in the table below.
Refuse Rate for Single :Family. Dwe!!ings
Service Level Current Rate
Mini can
(20 gallons)
One standard can
(32 gallons)
Two standard cans (3~
gallons each)
(FY 2006-07)
$16.87
Utility Rate Schedule R-I
PrOposed Rate Proposed
,(FY 2007-08)
$19.06
Difference
$2.19
$21.38 $24.16 $2.78
$44.01 $49.73 $5.72
Three standard cans
(32.gallons each)$66.64 $75.30 $8.66
Four standard cans $89.26 $100.86 $11.60(32 gallons each)
How do Palo Alto’s refuse collection rates compare to other communities?
Staff surveyed surrounding jurisdictions to compare Pato 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. 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) for oneJurisdiction32,-gallon £an refuse service
pa!9 ~lt£ proposed $24.16
Cupertino $18.66
Los Altos $24.14
Los Altos Hills
Mountain View
San Jose
Santa Clara
Sunnyvale
Average rate
(excluding Palo Alto)
$28.03
$15,30
$20,15
$t5.45
$21.71
$20,49
Do the new refuse collection rates encourage Zero Waste?
Yes. Palo Alto’s refuse rates are designed to promote reduced waste through a tiered rate
structure. As more bins are used, the higher the price to the customer for those bins. The rates
also help to support Palo Alto’s premium services including backyard garbage collection, weekly
street sweeping, monthly hazardous waste collection, extensive recycling collection and waste
diversion services, and landfill and composting operations.
Where may ! find more information on rates?
For more information about all utility rate changes being proposed as part of the FY 2007-08
budget, please visit www.citvofpaloatto.orq/utilities or call the Customer Service Center at (650)
329-2161.