HomeMy WebLinkAboutStaff Report 220-06City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT:PUBLIC WORKS
DATE:
SUBJECT:
MAY 9, 2006 CMR:220:06
APPROVAL OF A RESOLUTION AMENDING UTILITY RATE
SCHEDULE D-1 (STORM AND SURFACE WATER DRAINAGE)
REFLECTING A 2% RATE INCREASE TO $10.20 PER MONTH PER
EQUIVALENT RESIDENTIAL UNIT FOR FISCAL YEAR 2006-07
RECOMMENDATION
Staff recommends that Council approve the attached resolution (Attachment A) amending Utility
Kate Schedule D-1 (Storm and Surface Water Drainage), to implement a 2% rate increase to
$10.20 per month per Equivalent Kesidential Unit for Fiscal Year 2006-07.
BACKGROUND
On April 26, 2005, a majority of Palo Alto property owners approved a ballot measure
authorizing an increase in the monthly Storm Drainage Fee to fund storm drain capital
improvements and augmented maintenance. Council certified the results of the ballot proceeding
on May 9. The approved ballot measure contained an annual fee escalator clause that permits the
Council to consider raising the Storm Drainage Fee each year to account for inflationary cost
increases. Specifically, the ballot measure stated that:
"In order to offset the effects of inflation on labor and material costs, the proposed
fee increase would be subject to annual increases beyond the initial $10.00 per
Equivalent Residential Unit (ERU) rate as of" July 1 of each year, starting in 2006.
Inflation adjustments would be based on the lesser of the local rate of inflation
(based on the change in the Consumer Price Index [CPI] for the San Francisco-
Oakland-San Jose CMSA, published by the United States Department of Labor,
Bureau of Labor Statistics) or 6 percent. The City Council would have the
authority and discretion to implement inflation adjustments on an annual basis as
part of the City budget process."
On May 9, 2005, Council approved a resolution increasing the Storm Drainage rate
schedule to $10.00 per ERU, effective June 1, 2005.
CM1~220:06 Page 1 of 2
DISCUSSION
Administrative Services staff has determined from the above cited Bureau of Labor Statistics that
the CPI increased by 2.0% between December 2004 and December 2005. Staff recommends that
the Storm Drainage Fee be increased by this amount in order to attempt to keep fund revenues
consistent with increasing labor and materials costs. In order to enact the Storm Drainage Fee
increase, Council must approve the attached resolution amending Utility Rate Schedule D-1
(Storm and Surface Water Drainage). The new rate for the Storm Drainage Fee will be $10.20
per month per ERU. Single-family residential properties are billed a monthly amount based on
parcel size, in accordance with the following table:
RESIDENTIAL RATES (Single-Family Residential Properties)
PARCEL SIZE (sq.ft.)ERU
< 6,000 sq.ff.0.8 ERU
6,000-11,000 sq.ff.1.0 ERU
> 11,000 sq.ft.1.4 ERU
Commercial, industrial, institutional, and multi-family residential properties are billed on a
monthly basis at a rate of 1.0 ERU for each 2,500 square feet of impervious surface on the
parcel.
TllVIEI_ffNE
The Storm Drainage Fee increase will take effect on July 1, 2006.
ENVIRONMENTAL REVIEW
Adoption of changes to utility rate schedules does not represent a project under California
Environmental Quality Act (CEQA).
ATTACH2MENT
Attachment: Resolution Amending Utility Rate Schedule D-1
Drainage)
PREPARED BY:
DEPARTMENT HEAD:
(Storm and Surface Water
Senior Engineer
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL:
EMI~SON
Assistant City Manager
Storm Drain Oversight Committee
Palo Alto Chamber of Commerce
CMR:220:06 Page 2 of 2
ATTACHMENT
*** NOT YET APPROVED ***
follows:
RESOLUTION NO.
RESOLUTION OF THE CO~CIL OF THE CITY OF PALO
ALTO AMENDING UTILITY RATE SCHEDULE D-I (STORM
AND SURFACE WATER DRAINAGE)
The Council of the City of Palo Alto does RESOLVE as
SECTION i. Pursuant to Section 12.20.010 of the Palo
Alto Municipal Code, Utility Rate Schedule D-I (Storm and
Surface Water Drainage) is hereby amended to read in accordance
with sheet D-I-I, attached hereto and incorporated herein. The
foregoing Utility Rate Schedule, as amended, shall become
effective July i, 2006 and shall expire on June i, 2017.
SECTION 2. The Council finds that the revenue derived
from the authorized adoption enumerated herein shall be used
only for the purpose set forth in Article VII, Section 2, of the
Charter of the City of Palo Alto.
SECTION 3. The Council finds that this is not a project
under the California Environmental Quality Act and, therefore,
no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Mayor
APPROVED:
St. Asst. City Attorney City Manager
Director of Public Works
Director of Administrative
Services
060420 sm 0100450 1
GENERAL STORM AND SURFACE WATER DRAINAGE
UTILITY RATE SCHEDULE D-1
A. APPLICABILITY:
This schedule applies to all storm and surface water drainage service, excepting only those users and
to the extent that they are constitutionally exempt under the Constitution of the State of California or
who are determined to be exempt pursuant to Rule and Regulation 25.
B.TERRITORY:
Inside the incorporated limits of the city of Palo Alto and land owned or leased by the city.
C.RATES:
Per Month:
Storm Drainage Fee per Equivalent Residential Unit (ERU) .......................................................$10.20
D. SPECIAL NOTES:
An Equivalent Residential Unit (ERU) is the basic unit for computation of storm drainage fees
for residential and non-residential customers. All single-family residential properties shall be
billed the number of ERUs specified in the following table, based on an analysis of the
relationship between impervious area and lot size for Pato Alto properties.
PARCEL SIZE (sq.ft.)
<6,000 sq.ft.
6,000 - 11,000 sq.ft.
>11,000 sq.ft.
ERU
0.8 ERU
1.0 ERU
1.4 ERU
All other properties will have ERU’s computed to the nearest 1/10 ERU using the following
formula:
No. of ERU Impervious Area (Sq. Ft.)
2,500 Sq. Ft.
2.For more details on the storm drainage fee, refer to Utilities Rule and Regulation 25.
{End}
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No.D-l-1 dated 6-1-05
Effective 7-1-2006
Sheet No.D-l-1