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Home My WebLink About0263.092L aJ' . • 0 ~:. ,."~ ',' ~') 94 f,-- May 14, 1992 THE HONORABLE CITY COL~CIL Palo Alto, California Attention: Finance co~i~te~ ~~~ Water Rate Increase Members of the council: This raport recommends council approval of the attached Resolution to increase retail water revenue approximately 34 percent or $~,500. 000 on an annual ba:;is effective July L 1992. Background This report requests a rate increase of 34 percent, whereas tha ~dget document refers to a 30.6 percent increase. The difference lies in the fact that the San Francisco Water Department ,SFWD) changed its original \:,'holesale rate increase proposal after the B"wdqet document had. gone to print. Thus, this 34 percent rate increase reflects the updated figures. 'the rev~~ue requirement of the Palo Alto Water Utility consists of a number of components, including the cost to purchase water from t..""le SFWD, operate. and maintain a re.liable system, finance a~ appropriate portion of the capital improvements from current operating reve.nuas, -fund prud.ent reserve levels. and prov ide a reasonable transfer to the General Fund~ A significant net change in tr~se factors or a significant change in the sales level may require a rate adjustoent fr-om. one y.e8r to the next. With the exception of the COg~ of water paid to SFWD, the other operating: costs and financial obligations of t:he Water Fund are generally fixed~ These expenditures arise regard.less of the sales level~ Figure 1 (·Cities Water Fund Budgets") is a pie chart comparing Water Fund budgets between Palo Alto and five other penin!;ula cities. A revie· ... of Palo Alto's budget on Figure 1 indicates that fixed expenditures fer capital outlay., salaries and benefits., inter fund ekpenses, the transfer to the General Fund, and other expenditures account for appro::drnately 69 percent of the revenue requirement. It should be noted that the budget and rate co::nparison figures in this report are based on the FY 92-93 proposea budget tor Palo Alto, .hile FY 91-92 data was used for the other cities~ Discussions vitb the staff of nearby cities indicate that FY 92-93 rate increases will be developed and. recommended although the magnitude ""as not kno.m at tne tima of this report. ClDn26l: 92 L "~" - In this sixth year of the drought, the Water Utility has experienced steadily decli~inq sales of water as the City responds to the need to cOilserve and to use water more efficiently~ HoW'ev'.!r, during this same period~ the water Utility has faced rising operating costs. As a result, the fixed operatinq costs :must be spread over fewer sales units which genera'tes pressure to raise rate levels~ Therefore, there is a difficult balance which is so~ght between (1) achi~ving the city's conservation objective durinq this drought and (2) meeting all its fixed financial obligations. Figure 2 (illwater Expenditu.res and Sales/Usage Analysis-) is a graph of annual 'Water sales juxtaposed to annual operating casts fot:' Palo Alto~ The graph covers the period from 1975-1991. It is evid~nt that t~e trend of declining sales and higher costs ~e9dn in 1986. Also, since 1988 the SFWO has enacted five consecutive rate increases: which compounds to C! 225 parcent 'Whale~5:1e rat.e increase over this period. It is also important to note that the sales level has never recovered to the pre-1977 level of 8 million ccf~ Staf£ assumes that whether tne drought continues or not, P~lo Alto water sales ~ill not rise significantly in the years ahead. Staff is also aware of substantial potential rate increases from SFWD in the next several yea~s, if their plans proceed to c~nstruct a major 'Wate.r treatlllent facility. These tvo assumptions, if ~orrect, indicate that. Palo Alto's yater rates · ... ill cc,ntinue to rise. The same would hold. true for other &!:y Area cities purchasinq 'Water from the sr~. Finally, it should be noted that Palo Alto's Water Utility Infrastructure Project. in combination Yith its Water station Improvements Project (upgraded telemetry equipment), yill require a projected 14 percent rate increase in FY 93-94~ Figure 2 indicates that Palo Alto .... ater sales in 1987 ..... ere approximately 7 million ccf (hundred cubic feet) and declined approximately J 5 percent to 4.5 million ccf in 1991. This has caused a revenue erosion proble-rn for the water Fund. To mitigate the adverse impact of inade~ldte sales revenue. the water Fund has taken steps to decrease so~e expenditures and defer Capital Improvement projects. still, a rat~ increase is necessary to cover the. Utility's fixed obligatior.s. as reserves have been depleted and the financial results of the Water Fund for F~ 1991-92 are expected to place additional pressure on the reseL'"Ves~ The present drought rate structures contain steeply inverted rates for ascending usage. The primary purpClse of this design is to provide strong price signals to encourage conservation and thereby enable the city to avoid rationing ~hile meeting the SFWD target. This has been accomplished in palo }..lto, but it is diffiCult to assign a degree of responsibility to the rate structure itself. There are a number of factors present. Many people_ especially during a period of drought. cons~rve regardless of the rate design simply because it is the right thing to do. The City's Energ}' Services staff, the City Council, and the media play an import~nt role in promoting conservation. Furthermore, 29 other Bay Area suburban cities \I,-ho are customers of SFWD have similarly experienced an average decline in water sales of 35 percent from CKJt:2n:n L I I 1987 levelS, and their r~te structures vary considerably. Ratemaking is prospective. Rates are cesigned to produce a given revenue target: based on assumpti ons r-eIated to sales, expenses, reserve levels, woaather, etc. 'rhe cu!'"rE"~t rates for Pi 91-92 were designed on a forecast sale~ level of 5.~a ~illion cct. That sales level was based on the SFWD mandate to redu~e consu~ption on the Peninsula 25 percent! 28 percent fer Palo Alto} below 1987 use. More to the point, staff forecasts a sales level of ~.5 million ccf in FY 92-93. This evan lower projection is based on the most recent trend over a 12 month period. (Recorded rainfall in Palo Alto h~s been normal over this period.) A comparison of Palo Alto's present consumptior. pattern with a year ago reveals that there bas been a significant shift of usage from higher to low~r usage levels~ This translates into fever sales priced at the higher rates. Fig-..lre 3 (:tResidential Water-Usage Profile") and Figure <Ii ("Residential Water Usage Profile") illustrate this trend over the last two y9ars~ Figure 3 depicts the average number of customers wbose usage ends within four established consUlIlption levels ~ There are approximately 15.000 single family residential customers. The shift is evident. In F'i 90-91, approximately 1900 customers used over 20 units per month on an averaqe. During the current fiscal year that number has dropped to less than half or 800~ It may be noted that in FY 90-91 there were approximately 180 custom_ers on an average wbose usage exceeded 50 units. This fiscal year the number has d~clin~d to an average of 32. Figure 4 provicies the relative perc-=:ntage of residantial revenue within the four rateblocks. In FY 90-91 the revenue f~om sales over 20 un.its accounted for 16 percent of tne total revenue compared to only 5 percent this fiscal year. Finally, the shift has. result.ed in a greater number of sales .. ithin the lo'ttest. rateblock (0-7 cetj. The aforementioned trends ad-dress the residential class. It is important te· not.e that the same trends are also apparent with Palo Alto's non-residential custcmers. components of the PrDposed $3.._5 Million Rel/enll~---1..n..£;[~ This report requests approval of a $3.5 millIon or 34 percent retail rat<4! increase t.o becom.e effective at the beginning of FY 92- 93. There are four factors underlying the need for this rate increase~ The first is the need to generate sufficient r~venue to cover the Utility's fixed financial obligations. The last revenue increase adopted for F~ 91-92 was predicated on a sales level of 5.38 million eel ~ The proposed rates are :based on a projected sales level of 4.5 million ccf based or. current consumption levels. This difference trenslates to a net revenue shortfall of approximately $1.310,000 on an annual casis. CIOlO2U :92 L t i , · -'.-- ,', ~. - --.~ . The second factor rel.ates to th.e need to replenish dapletcd reserve5 in the Water Fund. Six straight years of drought have siqnificantly weakened the Wa'ter Fund. '1'he system Improvement Reserve. and Transfer Stabilization Reserve are almost entjrely depleted, and there is a need to begin to restore these reser"tes to acceptal;lle levels.. 'I'his Z'evenue increase is i.ntended to add approximately $1,120,000 to the Water Fund reserves in FY 92-93. The third factor is the srwo 16. e percent 'W'holesale 'Water rate increase. The curr-ent SFWD wholesale rates are based en a purchases level represented by a 25 percent reduction from 1987 le,\re.l. Actual purchases are at approximately 35 percent of 1987, and the SFWD is experiencing a revenue shortfall. To cover their fixed operatinq costs and compensats for declining sales revenu~, wholesale rates .. ill rise on July 1." 1992. For Palo Alto. this accounts for approximately $620,000 in higher water purchased costs based on current consumption levels. The final factor is a net increase in operating expenses of approximately $450,000. Resource conservation program experlses, rent, and distribution operating and maintenance costs are the primary increased operating expenses. The chart below indicates these four components in relation to one another. SOllie of these numbers 'Will necessarily vary with the Budqet docu=ent, due to the different sales levels underlying the revenue fiqures and additionally, the srND wholesale figures, as mentioned ea~lier, have been updated. Cllfltlnl ~all. IUt,.l4.,OOO CXIU 2'3: 92 L 'fOtAL -"';"E. ItEVEN~.r 'U,"' •• ,ooo COWPONENTI 01" "E'lf INC'" 10'11 U,6(){1,OOQ - L . .:v--.. ~~~siderations The utilities Departmoe-nt ratemakinq philosophy is lito price our utilities at the. lowest pos:;:;ible rates, consistent ·with sound fi~ancial planning, while promoting efficient res~urce utilization and. customer satisfaction." Translated this means, among other things, that water should be affordable, that rates should generate sufficient revenue to cover financial obligations, and that rates shou'!.d maximize t.he efficient allocation of reSOl.!rces. Approx.imately a. yea.r ago, SFWD 'Was. considering a mand<i.tory 50 percent reduction target from 1987 usage ano. t-he City st-3.ff responded by ~reparing 'Water rationing contingency plans. Then came the March rains and in May 1991 SFWD lowered the target to 25 percent. In the early months of last year i Palo Alto ~as 4 percent ~ its SFWD allocat.ion. SFWD penalties ",era incu7."l'"ed four consecutive months (Nov. 90-Feb. 91). and penalties were avoided in April and May of 1991 by using our l..'ells. consequently, last year, heavier reliance on water rate design to achieve conservation was a strateq}~ to assure that during the upcominq FY 91-92 the City would be able to avoid SPWD penalties and use of its well~. The current drought rate structures ~ere also intended to negate the need to i~plement water rationing. However, this year the priorities are different than last year for the Water Fund. As mentioned, the City (and the Peninsula overall) have responded more than anticipated by reducing consumption 35 percent below 1987 levels. Because of this. the concern this year about the City's ability to meet its allocation target from SFWD has diminished. Ideally, the staff "'ould like residents and businesses to use 'Water-at II .level equal to (no more,. no less} our SFWD allocation. At the sa:me time, staff recognizes the difficulty of attaining this optimum goal. For FY 92-93 staff assumes that the City ".,ill lll~et the cur-re!"lt SF"WD reduction target of 28 percent belo~ 1987 use, regardless of ho~ this rat.e increase is applied to the drc\~ght rate structu::-es. This year there are three primary ratemakinq objectives which serve as the basi'S:. for this proposed rat~ d.esi9n. They are: 1. Improve ~evenue stability in the Water Fund through rate design changes. 2. Design rates in order to ~~ke the majority of Palo Alto water bills competitive 'With bills in nearby cities. 3. Plan for the transition to normal ~ater pricing when the d.rought ends. Staff helieve.s tha.t these are important objectives 'Which need to be in balance for th~ near ~nd long-term. As discusse.d earlier, the Water l'Und cannot continue to operate in a financially weaxened state. This proposal addresses this objective in t~o ways: (1) It 'Will generate approximately $3.5 mill ion addi t.ional revenue t.o eKI" 2 n. 92 - cover costs a~d to begin to fund reserv~s; and {2) There are r~te desiqn changes intended to specifically enhance th~ revenue stability of the Water Fund. Ho\/,r&:ver, achieving this objective necessarily makes it ditficult to achieve the second objective competitive rates. Althou9h this rate in~rease is necessaryr i~ "','ill make Palo Alto water rates less competitive wit.h those in surrounding areas, with respect to compc.l'isons between larger than averaqe water users. The third objective reqard~ng the tr~nsition is important, if only to recoqnize that the eventual switch tc normal water service rate schedules from the current drought rate schedules is basically a ~eversinq of the process. That is, when rat~blocks and prices were steepened to achieve a drought rate structure I there would necessarily follow a I"Icollapsing" of the rate structures (residential and non-residential) to arrive at normal service schedules. In other "W~rd.6, custor.ers. who are presently using relatively l:Io:oe water and paying higher prices will experience significant percentage decreases in their bill So upon return to no~al water pricing. On the other hand, cu~tomers presently using smaller amounts of water and paying relatively less, W"ill experioP.nce s.ignificant percentage bill increases upon return to normal pricing. Staff has kept this in mind when evaluating alterna~ive methods of spreading this rate increase. Yet, it is difficult to achieve t!'l.is objective without sacrificing the second objective. ECoposed Residential Dr~~ht Rate s.chedule W-6 The customer bill impact of this rate proposal is shown in a following section of this report under Table 1. A comparison of Palo Al to single-family r-esidential rates with those charged in nearby communities is shown on Figures 6 and 7 ~ In order t.o achieve a balance between these objectives, stat'! recomrnen.o.s spreading this rate increase amoTlg the rateblocks in a manner 'Which will result in ~ater bills for the majority of Palo Alto residents sliqhtly belo~ the average bills paid in surrounding areas. The approach taken ... as to increase the first threa rateblocks 33 percent. The fourth rateblock was increased approximately 39 percent to acco~odate a rate struct.ure change~ This change relates to eliminating the 5th rateblock for usage over 50 units 'Which is c·...trrentl:r~ priced at $18juni t. The reasons relate to the need for a transition to normal ~ater rate design and the fact that there are less than two-tenths of one percent of our customers who actually use more than 50 units. Finally, staff recommends increasing the monthly ser,rice charge to enhance revenue stabil i ty in the Water Fund. This ne· .. rate structure has an ending rateblock. at 20 units, the same as Mountain Vie~. Last year the fin~t rateblock (0-7 units) did not receive any increase. This proposal increases this rateblock in order to more evenly distribute the revenu"O! responsibility among all customers. CHlI:263:92 L ,- .. - --, Figure 5 ("Residential Sales Revenue Profile" l incHc3.tes th~t J 5 p-ercent (;If the revenue is collected from 51 percent of the CU!5tomers in this first rate~lock.. At the ether extreme, 2(1 pe:-cent of the revenue is collected from only .5 percoent of the customars who have usage in the highest use/priced rateblock. This is not \illconuncn U!1der water rat.ioning or drought rate structures. Everltvally the City will rescind these drought l.'ate str.J.ctures at"ld return to a much tlatt~r water rate structure. ~~en this occurs, the relative percent change in a customerls bill will be dictat-ed b~t the i'lsteepness· of the previous rate structure, To plan .for the transition to normal water r--ates, it is impoz.'tant ftOW to begiri to flatten the drought rate structure~. It would be staff's preference to flatten the rates much more, particularly by loverinq the third (15-20 Ccf) and fourth (over-20ccf) rateblocks. HO\ieve:-, lowerinq some rates means raising othe~S4 When this scenario was run, the ~rcentage increase for the majority of c~stomers climbed tc 60-70 percent; and bills rose above s~rrounding areas for the average r~sidential user. The sa~e result surfaced under a number of ~ethods evaluated to spreaa this increase, including an equal cents per eef across all rateblocks. The current residential service charge is $2.50 per month. It has been in the $2 range for approximately 20 years. Cost of service studies indicate the level should be $4. Accordingly, staff recommends increasing the service charge $1.50 per month~ The service charge is collected ~onthlYI regardless of usage. To this extent, it provides some assurance that the fixed costs will be cove~ed if sales drop. Figures 6 and I provide a ccmpari30n of residential water rates between Palo Alto, }!.ountain VieW', M.enlo Park, and Los AltQs. Presently, and continuing with this rate increase 1 Palo Alto has the lowest water bills applicable for usage up to about 7 l.lnit$~ Approximately 51 percent of all residential customers use less than 7 uni-e.s per month en an annual average. This P<!Ist year, the ~ajority of Palo Alto reside~ts averaged approximately 2 uni~$ per month. Approximately 65 percent of all resid~nts ~se 9 or less units per :month For 'Usagi:: between 10 and l' units (approximately 20 percent of all residents average usage within this range), Palo Alto water bills are comparable to surrounding areas. After 14. u,ni ts (approximately 15 percent of all resiuents average usage above 14 units), Palo Alto water bills begin to climb significantly above 6urrounding areas. Staff has ta):;.~n an approach which increases the initial rateblocks up to a level ~here they remain slightly below surrounding areas~ The remaining revenue increase was spread to the rateblocxs above 14 units. In this manner, the majQri~y of Palo Alto residents, who have succeeded in maintaining usage below 9 units, will continue to have one of the lowest w~te~ Ril.lli in the Bay A-rea. It is this result 'Which ~as pursued in L -~-" P i L aesigning this rate proposal. UOp05e_c;t~nl... Water Rate Schedule W-l This schedule is being used during the drought specifically for residents vho have applied for, and been g~anted~ hardship e.K.emptions. The. reasons relate to medical r:eeds and households ,...ith six or more occ~pants. Since such customers generally require more water for leqitimate reasons f a steeply inverted dr-ougtt :Lat~ schedule would not provide adequate amounts of water at moderate prices. Therefore, qualifying custcmers are served under Rate Schedule W-l, ....... hich 'Was designed for residents req-Iliring relatively large amounts of water. The current rate structure consists of five rateblocks priced from $l/ce! to $ 18/e::;! . Presently, there are approximately 150 qualifying residents on Rate Schedul~ W-l. However, experience during this fiscal year indicates that ~ater usage is less than anticipated; therefore, staff recommends a rate stru=ture change for this schedule. GiVen the reasons for residents qualifying u~der this rate sched~le, it ~oulQ be appropriate that the rate charged should be less than the system average rate ~hich is $2.75/ccf for all residents. Accordingly, staff recommends a flat commodity rate of $2.00 per ccf be established for Rate Sr:hedule W-l. In this manner, resic1ents will be assured. of paying no more for water than the average cost to all residents, and revenue stability to the utility will be enhanced. Proposed Non-residential Drought Rate Schedule W-7 For non-residential customers, the ratemaking philosophy and approach taken for the residential ~ate cesign is repeated. The service charge .as increased in accordance with cost of service principles, and the number of rateblocks 'Was reduced from five to four. Also, the ending rateolock "'as changed from over 5 SeA (baseline consumption allowance) to over 2 BCA as there is only about ~ percent sales at that level. It is important to note that approximately 95 pe:rcent of the non-residential water sales are below 2 DCA. 'l'his :means that 95 percent of the non-residential customers are avoiding high water bills. A comparison of non residential rates with other cities -... as not made, because rate structurE:s involving baseline consumption allowances with other rationing and non-rationing rate structures are subj ective and inconclusive. CHIt,H3"2 L The table shown indicates the Effect of the proposed rate increase en Palo Alto customers. The bills include the proposed $1.50 increase in the residential service charge, whi~h has the effect of raising the relative percent~ge increase for usage at lower l~vels~ Monthly Amount of Percent customer l£.C.u llll Increase .lr.crease Single Fam~ Res~-small 7 $13.31 $ 3.Bl 40.1 Single Fam. F:es~-average 9 19.13 5 ~2 5 37.8 Single Family Res. H 33.58 9.BS 35.7 Single Family Res. 20 79.52 20.19 34.0 Single Family Res~-larqe 35 263.12 72.S4 38.1 Single Famil y Res. -"'Y 19 50 446.72 124.89 38.8 Non-reside.'1tial IBCA N/A filA 35.0 Non-residential 2BCA N/A N/A 47.7 Non-residential 3SCA N/A N/A 39.8 Non-residential 4 SeA N/A NiA 37.6 Water Rate Schedules for fire Service Connections and Fire Hydrants Staff recommends revisions to water Rate Schedules W-2 (Water Service trom Fire Hydrants) and W-J (Fire service conne~tions}, to increase water rates for such usage and to ~dd penalty pr-cvlsior.s for. the illegal use of such "-ater. The Water utility provides Yater service from fire hydrants under Rate Schedule W-2 principally to building contr3t:":tors for construction, ma.intenance, and other Ilses where general service is not available. In order for a contractor-or any customer to use a fire hydrant as a source of water, the customer must obtain a six-month hydrant met2r permit, place a deposit with the City for use of a fire hydrant meter, and use a public hydrant in accordance with instructions issued by the utilities Department. However, staff has noticed instances where water is being drawn from a fire hydrant either without the hydrant meter hooked-up, or ~~e meter was installed by the customer in a fashion which ~oes not reco~d consumption. To remedy this problem~ staff proposes the addition of two provisions on Rate Schedule W-2. First l that a notice that. illegal hydrant ... ater use be subject to criminal • \ -'j ~ . . I , 1 I "j I i ! --'. >.' - pro$ecution~ Second, that a! minimum. rr.onthly charg'e shall be applied based on the size of 'Water line Wlhich exists or .. ill exist at the site. Finally, staff reco~~ends a commodity charge of $2~75 per unit of water ta):e~ eithe:-legally or ill€'gally froiD a fire hrdrant, unless it is tak.en to extinguish a fire. These proposed. revisions arE reflected on Water Rate Schedule W-2. Wit~ regard to Fire Service Connection Rate Sch~dule W-J, si~ilar provisions are recommended to assure that only ..... ater used for fire extinq'.Jishinq purposes or to test fire equiplnent facilities is allowed. Altho-.:gh it is infrequent._ staff has noticed unauthorized water usage ~n fire s~rvice connections. Currently, there are ~o provisions to add~ess this illegal use of ~ater. To make matters worse, these kinds of connections are designed to detect .... ater flow f not accuratel}~ meter it for billing purposes, si.nce the p:cesumption is that there is a fire and in such cases water is tree. For Rate Schedule W-J, staff recommends the addition of a commodity charge of $10 per unit and notice that criminal prosecution may result to deter th~ unautho~ized use of water from a fire ser~ice connection. The necessary aroendment to Palo Alto Municipal Code Sect!en 12.20.010 acco~panies CMR:257:92 pertaining to Proposed Revisions to Utilities Rules and Reg1.1latiei'ls. status Qf Schoo' Dist~ict Wat~_Rates A related issue ~hich council has expressed an interest in is the School District Water Rates. There has been a concern that ~aybe school yater bills were "soaring" under the steeply inverted drought rate 6tr-uctures adopted Jul}? I, 1992. There 'Was an additional concern that tne City charqed higher rates to schools. In response, a staff report was prepared or. the merits of ~lteri~g the drought rates specifjcally for the School District (OIR: 3a6~91). That r-eport provided a background discussior. and recommended that the School District not be given a discounted vater rate, but continue to be served like all other non residenti31 customers under Rate Schadule W-7. The Utilities Department was not approach~d on this matter by a representative of the Palo Alto Unified School Oistri~t until a letter 'Was received dated 5-6-92 from walter Freeman. Mr~ Freeman has requested that ftour applicable ~ater rates be reduced substantially~· staff intends to meet with Mr. Freeman on this matter. A recent staff review indicates that the perception tb.at scheol bills have soared is unfcl;ndecJ. We have performed an aud it of the water accounts within the Schoel Pistrict and concluded that school water bills have changed little over the past three years. The staff's findinqs are as follows: L • .. ~ ..... " "i~';; . '.;~~~ ~'iJ"' .. , - • The Palo Alto Unified School District has app~oximately 33 watilr service acco'.Jnts lrIIith the t.hree l~rgest each using over a million gallons a ~onth during some summer periods. The top ten water users ~ithin the School District ~ere found to have water bills fo~ the current fiscal year 1 percent ~ their water bills for the corresp.:mdinq period in FY ~0-91. Cons~mption was 3 percent less than the previous year. ThesE ten schOOlS account for slightly over half ot all the usage ~ithin the School District. For all 33 water service accounts f the comparable water bills for the pe~iod August through April for FY 91-92, F~ 90-91, and FY 89-90 are $119,000, $121,000, and $120,000 respectively~ staff recommends Council approval of the attached Resolution increasing water revenue approximately 34 percent effactive 7-1-92. Respectfully submitte~, 'tJ.4-")7 JJ,,;. ...... -- W. RANDY BALOSCHUN Manager, Rates and customer Services , tc~ :Out,~ Director of Utilities qwu.-~y. JUNE FLEMING Assistant city Manager Attachme.nts! CHR,ZU'9Z Fi~res 1-7 Resolution Rate Sch::.dules W-l~ W-2, W-3, W-6, W-7 . , , i , f '.' I i I: I .' , :--1 - "::-r 1 ".----_.",. --,. CITIES WATER FL'l'iJ) BUDGETS ary OF f>.A.LO AlTO BUDGET TOTAL -$ 13,754,UOO 19,000 ACCOUNTS on- Lo~rd""'" '" MENLO PARK WATER BUDGET TOTAL ~ $ 2.918,000 3,800 "-CCO~TS _ .. """" '" '... ,.. CITY OF SANTA ClARA BUDGET TOTAL -$ 15,053,000 204,.523 ACCOUNTS "'-, •• LOS ALTOS CAL 'WA.TEfl BUOOET TOTAl. -$ 7,':;90,000 5 CrnES REDWOOO CITY BUDGET TOTP.,L -$; 9,290,000 21,000 ACCOI.'NTS MTN VIEW WATER BUDGET TOTAL -$10,100,000 15,000 ACCOUNTS I .. , ,. . .•.. \ : ' ~ , ~! f / " , , '~ ____ . __ ~~_ •.. ,L,~ Figure l! Water Expenditures and Water Sales/Usage Analysis 14:-"'-"'--""'~-' ,"" ""-, .. "'--., .. ----~'--" .. ~-,'" ,~,~, --, ~-~ -~.,~ '-'I I 121 I lOl- I 8'''· ... I '", 6 t''- I 41 ~~~ ---.. -- 2, /,/+-~ ~-.!---., 'Y ,~ / -k / _----A-----._-(_ ........... ~+~ .-. "7 J , -+'--+ ,_. '. ,> .. ---~.-------. / ___ .....-_ .. _r4. __ o L~_L .. ,_L~.J_"""~_L~ .. , "_,_,,'~,"L l~., .. ' ~ ___ , __ _ I J ,~ -'--'~'i---. ___ J I. 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 YEARS "'-, Annllal Wtr Expenses ,,'-. Annual Water Sales 'UIII',..",Olllol" of Ottfj",,,) IUIIHa.fH>O'. 01 (jCn ·.~:<>,~ ',J , ; . \ J , , . ',-;.;.~ ,:, .. ·r·-;,., ' . i , i'=lgura 3 Residential Water Usage Profile FY 90-91 and FY 91-92 Number of Residential Customers 8 ,-------->--.-----.--------.----------1 I 7600 \ 1-I 6 4 I 21 I o 0-7 8-14 15-20 Over 20 Customer Usage (CCF) Ending in these Rate Blocks _ FY 91-92 r""'~l -i,"",,:. F Y 90-91 , .~.>---"~ ... -...... - u ) :' !;~j)" ~\ \, ". ' >,:: ',,, ;: {'~~\~t,~. ~ s: \ .,,1 ',-:;'b:l',' , I . ,',,-. ,t ,{;~1,1 ',l;-• ~'\ ", ,,.,,'1," .' i~~' dtl;, \' . '". f •• " .'" l J ~l\i~~'~)"l';: ;)f' 11 ~ -~ ,,'x,f .... 1.~~~"1!"") , 'A/ .' V }, ';f1';.,' ""f, . -\ I " ',} ,j., • I, " , I , ,I' ",' ': , . 1 ! ~ , J -,::_\.:}~;i\j~. ""i~'~ ',:' ",' ,:,ji,'1.~;;:,;:,., .' ;, ~;':i;'-· '. ." '':, -, ,,~ .~ «f':,\":), ! I I i . , I 'r'! I -i ---------~----~ i I r i ( .~ ___ ~~.~ ___ ~_~ ... _.f_'~·_ . -"'. Figura 4 Residential Water Usage Profile FY 90-91 and 91-92 Percent of Residential Usage 70 r------~-... ----------- I 63 601 I I 50 40/ 301 20 10 o -_. 0-7 24 25 8-14 15-20 -~~----'-~--I ! I Over 20 Rate Blocks (CCF Usage) .- _ FY 91-92 52)] FY 90-91 " '~J . J ) .>-., , ",f .-~; "ri I , , ! ! f --------------,-----._._._ -_. ______ •• _ -,._.'~ • ___ . __ ~.~..L. ____ _ Figure 5 Residential Sales Revenue Profile FY 91-92 60 1 --.----. __ ._---_ .. _-.. _-----------.. _-- ---.---~----, I 51 50 i k,·.,;;"! 40/ % 30! 20 18 10 o -- 0-7 8-14 15-20 Rate Blocks <CCF Usage) Over 20 -Percent of Revenue kit] Percent of Customers .' .'0","'." \ \,j ) , I ! r' ( \ j May 8.1992 Figure 6 WATER RATE COMPARISON RESIDENTIAL $ Monll71y Bill ,-------40.0.0. ---'.-----. -----1 aD, 00 . .'30. Go. ?D.CO ,~-JO.OO . 15,0.0 Jo.{)O - ,~.'.oo - 000 / -Palo Alto Proposed 92/93 33.68 17.34 20.99 19.13 16.82 20.38 .9 I je' jr",' , I (I' ,("I (f':rFj' l_ l.)t __ ,'-i' __ J 1_ ,_" V jJ ~ __ "'_./ Rii;j Menlo Park Existing 91/92 1=: Mountain View Existing 91192 1.) 27,98 12 -Los Altos EXisting 91/92 Note: Avera~e residential water usc in I'alo Alto is 9 cCf/month. , ___ _ .,,..... ~i-"·\.~ -',~r~ -~~ -li.,,' rJ', ,J '~-,'I"'''' . ) , 'j:'"i:';" k~.I~"! ' " ~,,!;t"\ :., ',' :' "i(~' t If };~,/fl" ~'t?&~!;~ i:lf~ ~:~' •. :. 'I I [,~~f.. :t;r~~:1"'" ,'\ I _,11t\~ ,t '/' '. ~". 011, .". . ' , ' , " I' ,.' , • .1 .• , I • > , . 1 f ! , t ;' '. f May 8, 1992 .-.. -------'-.'-.--.-~----~-----------. -. Figure 7 WATER RATE COMPARISON RESIDENTIAl: $ Monthly WI/ 500. 00 -(,----.. ------------------------.. ------. 4 . .fS--:-72----------_·---; .10.0. 00. .j I ;lOo.OOj I 20000 -j 1 Co. 00 oc)o _--~ I 263.12 79.52 53,23 37.10 -C1 35, "0 -··-~-:--_~L-~:---_-. ;.JQ ,Jb ,~~-;() Usago L OVO/ (C'C'r) _ Palo Alto proposed 92/9'3 rates riSk] Menlo Park existing 91192 rates l---=.] Mountain View eXisting 91192 rates -Los Altos existing 91/92 rates j _ ........ _-1._._ . ",' " , <"i , RESOWTIOH' NO. RESOLlnION OF THE COUNCIL OF THE CITY OF PAUl .'LTC ADOPTING UTILITY RATE SCHEDULES W-l.. W-2, W-J, W-6, AND W-7 IN' ORDER TO !KPLElttNT DRCOGHT RATE SCHEDULES FOR T"rlE CI'1'¥ WH~, the Council of the city of Palo Alto has conducted a public hearing and declared in Ordinance No. 3960 that a water shortaqe e~erger.cy exists; WHERLAS r existence. such water shortage emergency rel:ainl; in NOW, THEREFORE, the council of the City of PalQ Alto docs hereby RESOLVE as followst SFC7ION-1. Pursuant to section ~2.20.010 of the palo Alto Municipal Code, Utility Rate Schedules W-l, .... -2, W-3, W-5, and W-7 are hereby approved i5nd adopted as shown on Sheets W-l-l, W-2-1, W-2-2, W-3-1 .. W-3-2, W-6-1, W-6-2, W-6-J, W-7-1, W-7-2 and W-7-3 attached hereto ana incorporated herein. SECTION 2. The foreqoir:g rate schedules shall become effective as of July 1, 1992. SECTION 3. The Cocncil find!:! th.at the revenue derived fr-om the authorized adjustments of said rates by the City Manager shall :t:e used only for the purposes set forth in the Palo Alto City Charter, Article VI!, section 2, entitled -Public utilities Revenue.~ The adoption of this Resolution is, therefore, specifi cally exempted under the Public P.esou.r.ces Cod>2 Section 210BO{b) (8) from the requirements of CEQA. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FOR!{: City Manager city Attorney Director of Fina"nc-c=e------ Di rector ot Ut i"1'-1"· t~i:;e:;s:---- , . - GENERAL WATER SERVICE UTIUTY RATE SCH~DUlE W:J A. APPLICABIUTY: This schedule applies 10 a~ water service and may complernent Drought Rate Schedule W~ and W-7 when a water sJ;ortgge emergency exists in the City of Palo hla. S_ TERRITORY, Inside and =ide the incorporated flmits of the City of Paio Alto and land owned or leased by the City_ C_ RATES: Service Charge; Per Meter P.ff.Month For SIB-inoh meter ___ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. S 4.00 For 3/4 inch meter ....................................... 4.00 For 1 inch meter ..•.................................... 4.50 For 1 1/2 inch meter ..................................... 5.20 For 2-inoh meter ....................................... 6. SO For 3-inoh meter ............... _ . . . . . . . . . . . . . . . . . . . 11.30 For 4-inoh meter ...................................... 16.20 For 6~nch meter ...................................... 30.00 For 8-inoh meter .................................. 46.75 For lO-inoh meter ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. SS.OO Commodity Rate: (To be added! Service Charge and applicable 10 all pressure zones.) Commcxflty Charge ........................... . Temporary urvnetered seNice to residential Per Hundred Cubic Feet ...... $2.00 subdivision developErs, per connection ........................ $4.00 per mont' CITYOF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-l·l dated 7-1-91 "OiL • . '~':'" ' Effective 7 -1-92 Sheet No. W-1-1 .1~~J<t;::-; -,~",.,/p'. ~-:<~t~"t::~t~~ :,~ - WATER SERVICE FROM FIRE HYDRANTS A. APPUCABIUTY: This schedute applies to an water taken from fire hydrants f<x COl1~truction, maintenance, and other uses in conformance wrth provisions of a Hydrant Meter Pe-rmrt. B. TERRITORY: Wr!hin the water service are of the City of Palo Alto C. RATES: 1. Mooth~1 Minimum SeTvic_§' Charge. METER SIZE MONTHLY MINIMUM ~RYlCE CI-'ARGE 5/8 inch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 50.00 3/4 inch .............................................. 50.00 1 inch .............................................. 7500 1 1/2 inch ............................................. 75.00 2 inch ............................................. 100.00 3 inch ............................................. 125.00 4 inch ..........•.............•.................... 150.00 6 inch ............................................. 200.00 a inch ........ '.' ................................... 250.00 10 inch .....•....................................... 300.00 2. Commodity Rale: [per hundred cubic feet) ...................... $2.75 D. SPECIAL. NOTES: 1. My ar:;plicant using a hydrant without obtaining a Hydrant Meter Permit or any pennittee using a hydrant without a Hydrant Meter Perm~ shal! pay a fee 01 $50.00 for each day of suo; use in addition of all other costs and fees provided in this SChedule. "hydrant permit may be denied ot revoked lor failure 10 pay such lee. CITY OF PALO ALTO UTiUTIES Issued by the City Counal Supersedes Sheet No. W·2·1 daled 7·11·88 Effective 7·1·92 Sheet No. 1'1·2·1 - WATER SERVICE FROM FIRE HYDRANTS UTILITY RAI~C1::I.!;;Q\.JlE W·2 (Ccntinued) 2. A meter deposit of $500.00 may be charged any appi;canl lor a Hydrant Meter Permit as a prerequisite to 1he issuance of a permit and meter. A charge of $50.00 per day wil: be added for delinquent rsturn of hydrant meters. 3. Any person 0'-company usrng a frre hydrant as deSCfibed in 01 C!bove G( who draws water 10rm a hydrant without a meter instal!e-d aM properly recording usage shan. in addition to an other appncable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal C-ode. CITYOF PALO ALTO UTiliTIES Issued by the City Councl ENactive 7·1·92 Original Sheet No. W·2·2 i i , ~ 1 i , FIRE SERVICE CONNECTIONS A. APPUCABIUTV: This schedule appfles to ail publ,c tire hydrants and private fire seiVice connect;ons. B. TERRITORY: Inside the ,"lCQ,-porated fimitS 01 the City of Palo Alto and on land owned or leased by the City wilhln a~ service areas. C. RATES: Public F~e Hydrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............ 55.00 Private F"e Service: 4-inch connecticn . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 4.20 6·jnch connection ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.00 B-ind1 connection ..... _ ................................... 10.75 1O-inch connection .. .. .. .. . .. . . . . .. . . .. .. . . . .. . . . . . .. . 15.75 2. Commodity (To be added to Service Charge Q(1.J~~ ..vater is used fOf fire extinguishing or testing purposes) AI1 water usage SPECIAL NOTES: ~r H; .. Jr.dr~_Q_J;ubic Fe~ .......................... $10.00 1. Service ~'flder this schedule may be disconUnued if water is .u~.eQ for any purpose Q!b~ lh.an fire extinguishing or water used in testing and repairing the fI~e extingulsning facilities. Such water used for other purposes is illegal and wili be subject to tI",e commoOny charge as noled above and fines. 2. No commodity charge will apply for water used for fire extinguishing purposes. 3. For a combination water and fire s8iVice. tr.e general water servECE! scheOOre sha!1 apply. CITY OF PALO ALTO UTIUTIES Issued by the City CounOl Effective 7-1· 92 Sheet No. W-3-1 . ..--..-..--------_ .. - L - • . :,;::: ." .. ~ -- FIRE SERVICE CONNECTIONS UTlUIY RAT!' SCHEDULE W-3 SPECIAL NOTES· (Coord) 4. UtHities Rule and Regulation No. 21 A provides additional t.'lrormation on Automatic F,re Services. 5. Repairs and testir..g of fire extinguishing faciJrties 8ie not considered unauthorizod use of water rt records and documentation is suppl:ed by the customer. 6. Unauthorized use of water wh1ch is unrelated to fire protection is subject to criminal prosecution pursuant to the Paro Alto Municipal COOe. CITYOF PALO ALTO UTILITIES Issued by the Ci:y Counc~ EffecliVe 7-1-92 Original Sheet No. W-3-2 i I "1 , J 1 ! ! - .' .'t:, Y.'. _ o A. APPUCABIUTY: DROUGHT RATE SCHEDUL-E .\.!T!UTYRAIE SCHEDULE Wf5 This schedule complements Rate $Coedu!e W-1 8nd appl,es to single family residential water service during a period when a water shortage emer£ency condltion exists in the City of Palo Alto and its o1stributiC'.n area. B. TERRITORY: Inside the inco<porated fimits of the City of Palo Alto, 00 land owned 0< I~ased by ~"e City, and a'ly other land serviced by :he Palo Aho Water Utility. C. RATES: Service Char9~ Per Meter Per Month For 5(B-inch meter ....................... __ .. ___ . . . . . .. $ 4.00 For 3(4·inch meter ..... _ .. _ . . . . ... _ . _ .. __ ..... _ . _ . _ ... 4.00 For 1-Inch meter . _ . _ . _ . _ ...................... _. . ..... 4.50 For 1 1/2 inch meter .. _ ................................... 5.20 For 2 inch meter ....................................... 6.80 For 3-lnch meter ................. .. _ . . . . . . . . . . . . . . . 11.30 For 4·inch meter .................. .. . . . . . . . . ....... ' 16.20 For B-inch meter .......• _ . . . . . . . . . . . . . . . . . . . . . . . 30.00 For 8-inch meter ...................................... 46.75 For 1o-inch meter .... , ... _ ............................. 58.00 .QQm..m0itt Ra\e~o be add~'ID'jc~ Charge) Per Meter Per Mooth Per H~;ndred Cubic Feet AIl Pressure ZQn~_~ FITSt 7 ccf (Baseline Allowaoce) . _ ........................ " $ 1.33 e cd -14 ccf .... ___ ............ _ ....................... 2.91 15 ccf -20 ccf ........................................... 7.64 Over ·20 ccf _ .... _ ...... _ ............ __ ........ ___ .... 12.24 CITY OF PALO ALTO UTiUTIES Issued by the City CcuncD Supersedes Sheet No. W-S-1 dared 7·1·91 --------- Elfectve 7-1-92 Sheet No W-$·1 D. HARDSHIP EXCEPTIONS: ,.--~ DROUGHT RATE SCHEDULE .\lIlliTY RATE SCliEQl.1.bKW-6 (Continued) Any person seeking an exception to any prc.,,;S.lo"l of this rate schedule shaJ' file a written app~cation with the Supervisor, Utilities Customer Serv',~e C-enter. The ~Superv1sor" or his /her designee may act upon said app~ication, seek. further lnfor;r,at:on, or hold an informal hearing. The burden of establishing a hardship shall be upon t'" applicant. AppriCatJons sha~ be granted only aher the customer has adopted aTI practicable; water conservation measures, and ~ the applicant estabflshes that this rate schedule or itS application to applicants s~uation creates or would tend to create: a) a detrimental condition affecting the heal-J1, santtation 0< safety of \he applicant or the general public. or b) have an extraordinary or unusual adVerse economic i."TlpaC1 Such as ;OS'S of production or jobs, or c) t'1e appilcant has six or more fun time permanent resfdents at the dweiting and comprtes wtt" t>1e Utility Departments cr~eria for a "per capita· allowance. Based on It,e applicant establishing that one or more of the 1oregolng hardsnip conditions exists, the ·Supervisor" may adjust the customers bili Of ser"e surJl customer under an a~_emate water rate schedule. The ·Super'l'isor'" may deny an applicants reqves~ for an exemption to this rate schedule H he 0< she deems that granting such exemption is inequitable. administratively impracticable, CJ( materially impacts the U~lrty system costs in an adverse manner. Applications denied by the ·Supervisor" may be appealed to the Director of UUliiies within ~ve days thereafter. The decision of the Director of UtiliVes shall be final. E. CHARGES FOR FLOW RESTRICTING DEVICES: Under certain conditions, customers who use in excess of 50 cd/month may be subjected to instanation of a flow restricting dBVic6. in the event it becomes neces.s.ary to ~sta~ or remove a flow·restricting device on the service line of any customer 'o:iora!Jng any provisions of '\he Ctty's ordinance on water use or exceed;,ng the "maximlJm C'8p~ of 50 cd jmonth, the fonowing charges will apply for installation of flow-restricting dey~ces or for restoring S8rv~ce: Meter Si2e 5/S' to '" ",/2" to 2" 3' and larger Instanation ~t $25.00 50.00 Actual Cost Removal Cost $2500 50.00 Actual CoS\ Actual cost will include all material, labor, equipmsnt, and overhead charges. CITY OF PALO ALTO \JTlUTIES Issued by the City Council Supersedes Sneet No. W-6·2 dated 7-1·9; Effective 7·'·92 Sheet No. W-8-2 , . <" ..... -"---....... ---~."-.~ - F. DISC0N11NUANCeOF WATER SERVICE: DROUGHT RATE SCHEDULE UTILITY RAT,E_SJ::t1EOULE Vi.:6 (Continued) Continued water cor.sumption ~.., violatioll of the Crty's ordinance 00 Water Use Restrictions may rasui! in the discontinuance of water service by the City. A charge of $250 shall be paid prior 10 reactivating lila service. CITY OF PALO ALTO UTILITIES Issued by 1he City Cwnal j . l E!fec~ve 7 -1·92 ,I Original Sheet No. W-e-3 - DROUGHT RATE SCHEDULE l.l.IILITYRATE SCHEDULE Vj-7 A. APPUCABIUTY: This schedule complements Rate Schedule W-1 and applies to non-resitie'")tial water seMC':e during a pt3riod when a water shortage emerger1Cy condJtlon exists in the CIty Of Palo Atto and its distribution area This schedule is aiso app!;cable to multi-fami1y residential customers served through a master meter and in some esses, single famiiy residerrtiar customers who have been granted an examptfon trom service under Rate Schedu~e V./..f;. 8. TERRITORY: Inside Ihe it1<:o<pOrated limits of the City of Palo Ma, or1 land owned or leased by the City, and any other land serviced by the Palo Mo Water UUlitf. C. RATES: Ser-Jice Chame Per Meter £'~i.N!Qnth For S/S·inch meter .......•........................... " $ 4.00 F()( 3i4-inCh meter. . . . . . . . . . . . • . . . . . . . . . . . . . . ........ 4.00 For I-inch meter .•••.•..•............•.•............•.• 4.50 F()( 1 1/2 inch meter ...................................... 5.20 For 2 inch meter ....................................... 6.80 Fer 3-inCh meter ...................................... 11.30 For 4-inCh meter ...•.........•............. . . . . . . 16.20 For 6-inch meter ...................................... 30.00 For a·inch meter ......•............................... 46.75 For 1Q-!nch ",eter ...................................... 58.00 .c:om......moc:fily Rates: (to be edded 1Q Service Chara~) Proportioo of 8ase~ne Consumption l!1lQw.'lC!l (aCA! Per Hundred Cubic Feet ~_lJ..Eressure Zones o to .90 BeA ........................................ " $ 2.00 .90 to 1.50 BCA ........ " ............. " ............. " .' 295 1.50 to 2.0 BeA ......................................... 5.30 Over 2 BCA .......................................... " 12.24 CITY OF PALO ALTO UTILITIES Issued by 1he City Council Superse<ie~ Sheel No. \V·7·1 dated 7·1·91 L '~~'f;C{ .. -.}~ , !~ Effective 7·1-92 Sr,eet No. ""·7·1 L I: NOTES: DROUGHT RATE SCHEDULE UTILITY BATE.SQHEDULE 'N·7 {Contl"ued) The Baseline Consumption Allowance (SCA) is ir.tended to represent a customer's monthlv essential water consumption requlremel'1t for indOOf use or business operatfuns. The BCA is based on the average consumption On unr--.s of hLJndred cubic feet} for an individual customer (meter) durirg the bilhng peric-ds of February acd March 1990. Under certain circumstances, such as the unal/arlabi'ity of bi~ljng data or the grantlng of 8 customers request for a var~.:;ce, the Utifrty may sefect alterna~ive months or rr;et~s to arrive at a reasonable BCA VariaflC8s riley be granted based on a demonstration of seasonal fluctua!ions in tnternal bus,ness water needs, evidence of economical business hardship or safety considerations. (SeB Hardship Exceptions below.) HARDSHIP EXCEPTIONS: Any person seeking an excsption to any provision of th~s rate schedule shaJi fi~e a written a'PPfication with t:J-.e SuperviSO(. Utilities CustOr1ef Service Center. The "Supervisor" Of his/her design9€' may act upon said applicatjQfl. seek further information, ()( hold an informal hearing. The burden 01 establishing a hardship sha!1 be upon the applicant Appflcations shall be granted anty after the customer has. adopted aH practicable water conservation measures, ane! ~ the appflcant eSlabnshes that this r"te schedule Of its appflcation to applicants snuation creates or would tend to create: a)" detrimental cond"l!ion affecting the health, sanitation or safe!y oft,e applicant or the general public, or b) have an extraordinary Of unusual adverse economic impaC1 s ueh as loss of proouctioo of jobs. Based on the appflcact establishing that one Q( more of the foregoing hardship conditions exists, the ·Supervisor-may adjust the customer's bil: incfudtng the baseline corlsumption a!lowance or ser.re such customer under an alternate water rate schedule. The LSupervisor" may deny an appncan:s request for an exemption to thrs rate schedu~e it he or she deems that granUng such exemption is inequitabiB, administratively im~racticable, or materially impacts the Utility system costs in an adverse man"er. Applica1ions denied by the 'Supervisor" may be appealed to the Oire~-tor of Utjilties within five days thereafter. The decision of the Director of U@ies shal! be final. CHARGES FOR FLOW RESTRICTING DEViCES, Under certain condit~Ofis, customers who use in excess of 5 times their BCA may be subjected to ",staHation of a ~ow restricting device. In the event rt becomes "ecassa", to instan 0( remove a flow~restricting device on the service line of any customer (Corlt'd) CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W·7·2 dated 7·1·91 L Effecbve 7·1·92 Sheet No. W·7·2 - .' DROUGHT RATE SCHEDULE CHARGES FOR FLOW RESTRICTION DEVICES, (Contd) vollatlng any p~o'v'isions ot the Cfty's ordinance on water use Of exceeding the "maxImum cap-of 5 BCA pH month, ~'1e following charges wHi apply for installation of flOW-i9stricti:1g devices or for re=:!oring service: Meter Size 5/S'to I' 1-1/2' to 2' 3' ao"1d larger lostanatiofl ~ $25.00 50.00 Actual Cost $25.00 50.00 Actual Cost Actual cost will i"1C1ude aH mate.ial, labor. equipment, and overhe3:d cha~ges. DISCONTINUANCEOF WATER SERVICE: Continued water consumption in violaLon of the City's ordinance on Water Use Restrictions may result in the discc-ntjnuaric:e of water service by the Cit,.. A charge of $250 snail be paid piior to reac'Jveting the service. CITY OF PALO ALTO UTtllTIES Issued by the City Council Supersedes Sheet No. W-7-3 dated l-t-St Effective 7-1-92 Sheet No. W-7-3