HomeMy WebLinkAboutStaff Report 11371
CITY OF PALO ALTO OFFICE OF THE CITY CLERK
June 1, 2020
The Honorable City Council
Palo Alto, California
SECOND READING: Adoption of an Ordinance Amending Title 12 of
the Palo Alto Municipal Code to Set a 120-Day Statute of Limitations
for Challenges to the City’s Water Service Rates, Wastewater
Collection and Disposal Rates, Refuse Rates, Storm Water
Management Fees, and Fiber Licensing Service Rates (FIRST READING:
May 18, 2020 PASSED: 6-1 Tanaka no)
This was first heard by the City Council on May 18, 2020 and is now before the Council for the
second reading. It passed with no changes on May 18, 2020 with a 6-1 vote, Tanaka no.
ATTACHMENTS:
• Attachment A: Ordinance Water, Wastewater, Refuse, and Fiber Rates Statute of
Limitations (PDF)
Department Head: Beth Minor, City Clerk
Page 2
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Ordinance No._____
Ordinance of the Council of the City of Palo Alto Amending Section
12.20.030 (Statute of Limitations for Challenges to Gas Rates) of Chapter
12.20 (Utility Rules and Regulations) of the Palo Alto Municipal Code to
Set a 120-Day Statute of Limitations for Challenges to Water Service
Rates, Wastewater Collection and Disposal Rates, Refuse Rates, Storm
Water Management Fees, and Fiber Licensing Service Rates
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as
follows:
A. A statute of limitations for challenges to water service rates, wastewater
collection and disposal rates, refuse rates, storm water management fees, and fiber
licensing service rates aims to balance the interests of the City of Palo Alto (“City”) with the
interests of City of Palo Alto Utilities Customers (“Customers”), by allowing Customers to
bring challenges within a reasonable, but limited, period of time.
B. Without a statute of limitations, Customers may argue that they are able to request
a refund years after a charge has been collected, making it difficult for the City of Palo Alto
Utilities and Public Works Departments to maintain the stable budget necessary to operate
effectively, while keeping rates as low as possible.
C. By establishing a reasonable period of time beyond which the City will not face
exposure to challenges to the validity of water service rates, wastewater collection and
disposal rates, refuse rates, storm water management fees, and fiber licensing service
rates, a statute of limitations minimizes the fiscal uncertainty that results when there is no
clearly established closure on such challenges, and provides clear guidance to customers
considering a challenge.
D. The California State Legislature enacted a similar 120-day statute of limitations
for challenges to electric rates or charges in 2000, which is codified in Public Utilities Code
Section 10004.5. This rule applies to electric rate challenges in Palo Alto.
E. Because the Legislature did not enact a similar statute of limitations for
challenges to gas rates or charges, on May 20, 2019, Council adopted an ordinance enacting
its own statute of limitations for challenges to gas rates or charges.
F. It is incumbent upon the City of Palo Alto to similarly enact its own statute of
limitations for challenges to water service rates, wastewater collection and disposal
rates, refuse rates, storm water management fees, and fiber licensing service rates,
which reflects the same public policy concerns underlying Public Utilities Code Section
10004.5.
*Yet To Be Passed*
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SECTION 2. Section 12.20.030 (Statute of Limitations for Challenges to Gas Rates)
of Chapter 12.20 (Utility Rules and Regulations) is hereby amended to read as follows
(amendments underlined):
12.20.030 Statute of Limitations for Challenges to Gas Rates, Water Service Rates,
Wastewater Collection and Disposal Rates, Refuse Rates, Storm Water Management Fees
and Fiber Licensing Service Rates.
Any judicial action or proceeding against the City, to attack, review, set aside, void, or annul
an ordinance, resolution, or motion fixing or changing a rate or charge for: a) a gas commodity
or a gas service furnished by city and adopted on or after June 1, 2019, or b) for water services,
wastewater collection and disposal, refuse, storm water management, or fiber licensing
services furnished by city and adopted on or after June 1, 2020 shall be commenced within 120
days of the effective date of that ordinance, resolution, or motion.
SECTION 3. If any section, subsection, clause or phrase of this ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portion
or sections of the ordinance. The Council hereby declares that it should have adopted the
ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the
fact that any one or more sections, subsections, sentences, clauses or phrases be declared
invalid.
SECTION 4. The Council finds that the adoption of this ordinance setting a statute
of limitations for challenges to water service rates, wastewater collection and disposal rates,
refuse rates, storm water management fees, and fiber licensing service rates does not meet
the definition of a project under Public Resources Code section 21065, therefore California
Environmental Quality Act (“CEQA”) review is not required.
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SECTION 5. This ordinance shall be effective on the thirty-first day after the date
of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities