HomeMy WebLinkAboutStaff Report 232-08City of Palo Alto
City Manager’s Report
6
TO:HONOI~A~BLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
AND PUBLIC WORKS
DATE:
SUBJECT:
MAY 12, 2008 CMR: 232:08
ADOPTION OF A RESOLUTION ADOPTING GUIDELINES FOR THE
SUBMISSION AND TABULATION OF PROTESTS IN CONNECTION
WITH RATE HEARINGS CONDUCTED PURSUANT TO ARTICLE
XIIID, SECTION 6 OF THE CALIFORNIA CONSTITUTION
"NRECOMMEN DATIO.
Staff recommends that Council adopt a resolution adopting guidelines for managing the Utility
rate hearings conducted pursuant to Article XIIID. Section 6 of the California Constitution.
DISCUSSION
A recent California Supreme Court decision (Bighorn-Desert ~,%w Water Agency v. VeljiI) held
that certain utility consmnption charges are property-related fees subject to the requirements of
Article XIIID, Section 6 of the California Constitution. That constitutional provision, which was
adopted by the voters in 1996 as part of Proposition 218, requires that local govenmaents give a
special form of mailed notice at least 45 days before holding the public hem’ing on the increase
of a property-related fee. The provision also provides that certain affected persons may submit
protests with respect to proposed rate increases.
The requirelnents of the applicable notice and protest provisions are relatively brief., and do not
make it absolutely clear how local agencies should count protests they receive. Consequently,
the City Attorney’s Office has advised that the City adopt guidelines that interpret Proposition
218 and govern how the City will conduct protest proceedings. These guidelines are found in
Exhibit A to this report’s Attachment A.
RESOURCE IMPACT
No additional staff resources are required to conduct the hearings and tabulate results as required
pursuant to Article XIIID, Section 6 of the California Constitution.
CMR: 232:08 Page 1 of 2
POLICY IMPLICATIONS
This policy is new and requires Council adoption.
ENVIRONMENTAL REVIEW
Adoption of this resolution does not require review under the California Envirolm~enta! Quality
Act (CEQA) because it does not meet the definition of a "project" pursuant to California Public
Resources Code Section 21065.
ATTACHMENT
A.Resolution
PREPARED BY:
DEPARTMENT APPROVAL:
’,,!~-JAN E 1LA, TCH~: E
Asst. D~rector of Utilities, Resource Management
Director of Utilities
CITY MANAGER APPROVAL:
STEVE EM SL~/KELE~.dNI O RARIU
Deputy City g/Ianagers
CMR: 232:08 Page 2 of 2
NOT YET APPROVED
ATTACHMENT A
RESOLUTION NO.
RESOLUTION OF TKE CITY COUNCIL OF THE CITY OF PALO
ALTO ADOPTING GUIDELINES FOR THE SUBMISSION AND
TABULATION OF PROTESTS IN CONNECTION WITH RATE
HEARINGS CONDUCTED PURSUANT TO ARTICLE xm]),
SECTION 6 OF THE CALIFORNIA CONSTITUTION
to consider
is allowed
tabulate the
follows:
WHEREAS, Article X_IIID, Section 6 of the California Constitution requires the City
written protests to certain proposed increases to utility rates; and
WHEREAS, this constitutional provision does not offer specific guidance as to who
to submit protests, how written protests are to be submitted, or how the City is to
protests.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as
SECTION 1. The City Council hereby adopts the guidelines for the submission and
tabulation of protest attached hereto as Exhibit "A" and incorporated herein by reference.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Deputy City Attorney
Mayor
City Manager
Director of Utilities
080506 syn 6050426
NOT YET APPROVED
EXHIBIT A
City of Palo Alto, California
GUIZ)ELINES FOR THE SUBMISSION AND TABULATION OF PROTESTS
Where notice of a public hearing with respect to a utility rate increase has been given by the City
pursuant to Article XKff), Section 6 of the California Constitution, the following shall apply:
Submission of Protests
o
°
o
°
Any property owner or utility customer may submit a written protest to the City Clerk,
either by delivery to the office of the City Clerk or by submitting the protest at the public
hearing. Protests must be received by the end of the public hearing. No postmarks will be
accepted.
Each protest must identify the affected property (by assessor’s parcel number or street
address) and include the signature of the record property owner or utility customer. Email
protests cannot be accepted. Although oral comments at the public hearing will not qualify
as a forma! protest unless accompanied by a written protest, the City Council welcomes
input from the community during the public hearing on the proposed fees.
If a parcel served by the City is owned by more than a single record owner or more than one
name appears on the City’s records as the customer for the property, or the customer is not
the record owner, each owner or customer may submit a protest, but only one protest will
be counted per parcel and any one protest submitted in accordance with these rules will be
sufficient to count as a protest for that property.
In order to be valid a protest must bear the original signature of the record owner or
customer of record with respect to the property identified on the protest. Protests not
bearing the original signature of a record owner or customer shall not be counted.
If more than one type of fee (i.e., water, refuse) is proposed for increase on the notice of
public hearing, then a person submitting a protest may indicate whether the protest is
submitted with respect to all fees proposed for increase or only some of the fees proposed
for increase.
Any person who submits a protest may withdraw it by submitting to the City Clerk a
written request that the protest be withdrawn. The withdrawal of a protest shall contain
sufficient information to identify the affected parcel and the name of the record owner or
record customer who submitted both the protest and the request that it be withdrawn.
A fee protest proceeding is not an election.
To ensure transparency and accountability in the fee protest tabulation, protests shall
constitute disclosable public records from and after the time they are received.
080506 syn 6050426
Tabulation of Protests
NOT YET APPROVED
o
The City Clerk shall determine the validity of all protests. The City Clerk shall not accept
as valid any protest if the City Clerk determines that any of the following conditions exist:
a.The protest does not identify, a property served with refuse and!or water by the
City. ~
b°The protest does not bear an original signature of a record owner of the parcel
identified on the protest or a record customer with respect to the parcel identified
on the protest.
c.The protest does not state its opposition to the proposed fees.
d.The protest was not received by the City Clerk before the close of the public
hearing on the proposed fees.
e.A request to withdraw the protest is received prior to the close of the public
hearing on the proposed fees.
If a protest does not state that it is limited to a specific fee, then the City Clerk shall
consider it to be a protest with respect to all fee increases set forth on the notice of public
hearing.
The City Clerk’s decision that a protest is not valid or does not apply to a specific fee shall
constitute a final action of the City and shall not be subject to any internal appeal.
A majority protest exists if written protests are timely submitted and not withdrawn by the
record owners of, or customers with respect to, a majority (50% plus one) of the properties
subject to the proposed fee.
At the conclusion of the public hearing, the City Clerk shall complete the tabulation of all
protests received, including those received during the public hearing and shall report the
results of the tabulation to the City Council upon completion. If review of the protests
received demonstrates that the number received is manifestly less than one-half of the
parcels served by the City with respect to the fee which is the subject of the protest, then the
Clerk may advise the City Council of the absence of a majority protest without determining
the validity of all protests.
080506 syn 6050426
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