HomeMy WebLinkAbout2002-07-15 City Council (7)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
JULY 15,.2002
ADOPTION OF A RESOLUTION REVISING RATE
C-4 TO EXPAND PARTICIPATION IN THE
RESIDENTIAL RATE ASSISTANCE PROGRAM
INCOME HOUSING
CMR:306:02
scHEDULE
UTILITIES
TO LOW-
REPORT IN BRIEF
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution revising Rate
Schedule C-4 effective August 1, 2002 to extend applicability of the Utilities Residential
Rate .Assistance Program to qualifying low-income housing communities.
BACKGROUND
In 1993, Council approved the Utilities Residential Rate Assistance Program (RAP) to
provide rate relief to residents who lack adequate financial resources to pay utility bills
(CMR: 262:93). RAP also provides a utility discount to qualifying residents with physical
disabilities that cause them to use more energy or water in the home. In 2001, Council
approved higher income guidelines for the program based on Department of Housing and
Urban Development Income Guidelines, and RAP was also extended to Palo Alto
residents .of mobile home and trailer parks (CMR:216:01). Today, approximately 700
households qualify for RAP and receive a 20 percent discount on water, gas, and/or
electric charges from the City of Palo Alto Utilities (CPAU).
CMR:306:02 Page 1 of 4
DISCUSSION
With the exception Of the Buena Vista Mobile Home Park, RAP is limited to residents
who receive and pay for separately metered utility services to the City. RAP discounts
are currently applied to qualifying tenants that live in multi-family housing complexes
(apartments) but are separately metered. Providing a RAP discount to multi-family
housing complexes served by large master meters poses two main issues. First, the
landlord pays the bill so there is no assurance that a RAP utility bill savings will be
passed on to low-income resident(s). Secondly, tenants with different income levels can
occupy apartment complexes. It is administratively infeasible to periodically ascertain
what proportion of residents in an apartment complex would qualify for RAP, which
residents would not qualify for RAP, and then determine a proportionate .utility discount
to the landlord. There are hundreds of multi-family complexes in Palo Alto.
However, while multi-family housing served by master meters poses major obstacles in
extending RAP, there is a subset of such housing that can be efficiently administered
under RAP. Specifically, there are a number of subsidized housing communities in Palo.
Alto that are 100 percent occupied by residents that actually qualify for RAP. These
subsidized housing communities apply income eligibility criteria to all residents. With
few exceptions, the guidelines applied by subsidized housing communities are consistent
with RAP income guidelines and therefore 100 percent of the occupants qualify for RAP.
Extending RAP to these complexes does not pose administrative issues since all residents
"pre-qualify." There remains the question of how the non-profit organization that
manages the subsidized housing community will apply the RAP utility bill savings to
benefit the tenants. Ideally it will be used to hold down tenant rents but there is no
guarantee.
Despite a lack of guarantee that utility bill savings will be passed through to the tenants,
staff recommends that RAP be extended to qualifying master-metered subsidized housing
communities. In Palo Alto, staff estimates that there are approximately 1100 tenant.
residents who would qualifyfor RAP in 21 subsidized housing communities. The table
below is .a list of housing communities that staff believes are 100 percent occupied by
residents who qualify for RAP. The list may be revised as additional information
regarding tenancy requirements is received from these complexes as well as from othe~
subsidized housing complexes.
CMR:306:02 Page 2 of 4 -
1. Adlai Stevenson House
2.Alma Place
3.The Barker Hotel
4.Curtner Apts
5.Elm Apartments
6.Emerson North Apts
7.Emerson South Apts
8.Emerson House
9.Ferne Apts
10. Lytton Gardens 1
120
106
25
9
11
6
6
4
16
268
11.Lytton Gardens II
12.Lytton Courtyard
13.Oak Manor Townh0use
14.Page Mill Court
15.Palo Alto Gardens
16.Pine Street House
17.Plum Tree Apts
18.Sheridan Apts
19.Ventura Apts
20.Waldo Apts
21.Webster Wood Apts.
100
50
33
24
156
1
10
57
12
6
68
Total Tenants 1088
RESOURCE IMPACT
The expansion of RAP is expected to reduce 2002-03 water, gas, and electric sales
revenues approximately $60,000, $35,000, and $50,000 respectively. This represents one
tenth of one percent of water, gas, and electric combined sales revenue. Staff plans to
adjust utilities sales revenues accordingly in the 2002-03 mid-year report. Despite an
anticipated increase in RAP participants, staff does not foresee a significant impact on
administering the program since the tenants eligible for RAP are pre-qualified for income
considerations by the manager .of the subsidized housing community.
POLICY IMPLICATIONS
This recommendation does not represent a change in current City policies. This
recommendation is consistent with the Council approved Utilities Strategic Plan
Objective, "To identify and maintain the unique ad~zantages of municipal ownership".
TIMELINE
The effective date of the recommendation is August 1, 2002.
CMR:306:02 Page 3 of 4
¯ ENVIRONMENTAL REVIEW
The adoption of the resolution does not constitute a project under the California
Environmental Air Quality Act; therefore, no environmental assessment is required.
ATTACHMENTS " ~
A: Resolution
B: Utility Rate Schedule C-4
PREPARED BY:
Randy~Baldschun
Assistant Director of Utilities, Adm, Svcs.
DEPARTMENT HEAD:
ULRICH
Director of Utilities
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR:306:02 Page 4 of 4
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO AMENDING UTILITY RATE SCHEDULE C-4 OF THE
CITY OF PALO ALTO UTILITIES RATES AND CHARGES
PERTAINING TO THE RESIDENTIAL RATE ASSISTANCE
PROGRAM
The Council of theCity of Palo Alto does RESOLVE as
follows:
SECTION i. Pursuant to Section 12.20.010 .of the Palo
Alto Municipal Code, Utility Rate Schedule C-4 (Residential Rate
Assistance Program) of the City of Palo Alto Utilities Rates and
Charges~is hereby amended to read in accordance with the sheet
captioned "Utility Rate Schedule C-4-I," attached hereto and
incorporated herein by this reference. The foregoing Utility
Rate Schedule, as amended, shall become effective on August i,
2002.
SECTION 2. The Council finds that the discounts, to be
provided to electric., gas, and water utility customers who
qualify for such discounts under prescribed terms and conditions
established by the City Manager shall be used only -for the
purposes set forth in Article VII, Section 2, of the Charter of
the City of Palo Alto.
SECTION 3. The Council finds that the adoption of this
resolution is exempted under the CEQA Guidelines under Section
15273 of Title 14 of the California Code of Regulations.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Administrative
Services
Director of Utilities
020625 syn 0072019
RESIDENTIAL RATE ASSISTANCE PROGRAM
UTILITY RATE SCHEDULE C-4
A.APPLICABILITY:
This schedule applies to residential premises that qualify for participation in the Utilities Residential
Rate Assistance Program (RAP). The residential dwelling shall be served by a separately metered
utility service(s). This schedule also applies to master-metered accounts that provide utility services
to tenant dwellings in qualifying subsidized hou.sing communities. Such subsidized housing
communities must be occupied solely by tenants who meet applicable RAP income guidelines.
Residential premises that are located within a mobile home and trailer park and have at least one
utility .service sub-metered by the landlord-owner similarly qualify. Based on the above
qualifications, residential premises within the city limits of Palo Alto may include a single-family
dwelling, a multi-family dwelling, or a mobile or trailer home.
RATES:
A discount of twenty (20) percent on any applicable City of Palo Alto Utilities Rate Schedule.
SPECIAL CONDITIONS:
Residents may qualify for participation in the RAP for either medical or economic reasons.
To qualify for medical reasons, a resident must provide a physician’sletter certifying to the
medical condition of the resident and the necessity for special medical equipment. To
qualify for economic reasons, a resident must provide proof of financial need as required by
the City. Residents participating in RAP based on economic reasons will be eligible to
receive a 20 percent discount on water, gas, and electric charges. Residents participating in
RAP based on medical reasons will be eligible to receive a 20 percent discount on the
applicable water, gas, and/or electric charges.
The 20 percent discount does not relieve the resident of the obligation to pay the Utility Users
Tax. Such tax will be computed on the gross utility charges before applying the discount.
o It is unlawful to knowingly provide incorrect information in connection with a RAP
application. Such violation couldresult in a $1,000 fine or six months in jail, or both.
The issuance of the discount shall be subject to further reasonable rules and regulations,
including income guidelines, to determine eligibility, as may be prescribed by the City
Manager. The procedure for qualification and all interpretations as to the applicability of the
provisions of this schedule or such rules and regulations shall be made by the City Manager
or her/his designee whose determination shall be fmal. {End}
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. C-4-1 dated 5-i-Oi CITY OF PALO ALTO
UTILITIES
Effective 8-1-2002
Sheet N0.C-4-1