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Home My WebLink About0262.093- ~ ..... . . ~ . , . . . ~:-, " May 6, 1993 THE HONORABLE CITY COUNCIL Palo Alto, California Attention: Finance Committee --------~-----------~ GUDGEl ~d:uctiO:1 of" • utilities ~esidC!llnti&l :Rate Jt.s • .1stane~~,~_ Members of the Council: Report in Brief This report recommends Council approval of the attache~i resolutior. authorizing a new Rate Schedule C-4, Utilities Residential Rate Assistance Proqrama This proposed utilities program will provide rate relief to accommodate the special needs of residential customers who lack adequate financial resources, as well as residents ~ho require water. gas, and/or electric utilities services for-medical re.asons. The Util ities Residential Rate Assistance Program (RAPj will provide a 15 percent rate reduction for qualifying residents.. This rate relief program 'Would becolIle effective durinq the second quarter of FY 93-94. Additionally, staft recommends Council approval of the attached ordinanc~ makjng it a violation fo"'C' utilities cust:Jmers seeking eligibility for any utility program to submit erroneous or fraudulent information to the City. IlA;..kgro un 4 Many investor-owned and municipally-owned utiljties o~fer reduced rates to residential cus~omers who qualify as ~low-income~ persons, as well as to customers who require life-sustaining equipment such as kidney-dialysis or iron lung machine~. pacific Gas & Electric (PG&E), Southern California Edison (SeE), San Diego Gas and Electric (SDG&E), Sacramento Municipal utilities District (SMUO), and Los Angeles Department of Light and Power (LADWP) are examples. To date, Palo Alto has not offered such rates for several reasons. First, the City already charges electric rates well below the "lo~ income" rates of other utilities. Secondly, once a special rate is made available for onE group of customers, other ratepayers with CKR:2u:n . ' - "some related need" will s~ek rate r€li~f and have to be denied . Thirdly, such "social ratentaking"' inv~lving sUbsidized rates is inconsistent with cost of sE-.rvice principles: and finO':lly, the adlllinistration of such programs can impose a substantial staff workload. There are also irofortant reasons for establishing utility programs to address the financial needs of the community and to recognize ~dditicnal utilit~~ usage re:quir£>ments of residents on life sustaining equipment. The first reason is humanitarian. In Palo Alto, there i5 a growing number of people experiencing financial hardship, especially the working poor, the recently ~nemployed, the elderly and the disabled. In recent years, the number of utility custo~er5 experiencing finan~ial difficulties has increased apprcximat~ly 40 percent. Additionally~ some residents require life support equipment which causes ele~tric consumption to rise, while other residents may require additional amounts of gas and vater for medical reasons. RegUlatory bcdies and the utility industry have increasingly recognized tbe import~nce of responding to these custome~ needs and astablished non-traditional p~ograms to help the neeoy, the enviror~ent, and the community. Similarly, the current Palo Alto city Council has assigned a high priority to developing programs to address t!People in Crisis". Accordingly; the proqram reco1lUrlended in this report reflects this "social responsibility objective~ to help the cO:ll'lmunity and better serve people with special hardships. A second r&ason for providing rate relief t,:, these customers relates to the fact that california law requires inve.stor-owned utilities to offer an energy discount to loW' income customers. Because these programs are widely av~ilable, some residents have questioned why Palo Alto does not offer a similar program. with regard to the administrative c~sts associated wit~ RAP, staff anticipates a significant: ""crklcad to admir.ister the p.r"ogram, but does not e>;.-pect pl.·ogram costs to be prohibitive or excessive. Rt..P is aimed to try and minimize such costs. For exarnple~ ~he Utilities Department plans to utilize the contractir,g services of the California Department of Economic opportunity (OEO) to handle and process applications, and thereby avoid the need to hiLe additional staff. This approach is mere cost effective~ Finally, with respect to lhe argument that Rsocial ratemaking" is a aeparture trom cost of service prineiples, it can be said that CQst of service is not the sole objective or function of ratemakinq. There exist other ratemaking principles (i.e. socio economic, value-of-service~ ability to pay~ competitive pricing, energy efficiency)~ which lead to a departure from a traditional cost ot service approach. Exampl.es ar~ load-retenticn rates, senior citizen rates, electriC vehicle rates, the recognition of L • - environmental externalities in De~and Side Management (OSM) evaluations, economic development r-ates, lifeline rates, loy-income rates, and as with the Bonngville Power Administration, industrial rateR vhich are linked to the price of aluminum. The Rropo ... 4 R •• idential P-I!l.t. ~.1AY.no" prQ.g:r..g In developj ng the Residential F.ate Assistance Progra:n, staff completed a ten-step review. 1. P.rto~ a rev! •• and evaluation ot similar program. ottere4 by other utiliti •• ~ ~~p is largely pattzrned after existing pr~rams of other California utilities. 2. Evaluation of the ability ot the current and futurG utilities COJiput.r :billinq ayatea to acc::omaor5at. the new proq:!:~. The existing utilities billing system would better a~commodate a program based en a percentage discevnt applied to a bill, rather than utilization of additional rate schedules at reduced charges. For that reason, and. to tacil itate the understanding of the customer, a percentage bill reduction approach is preferred to a separate rate schadules approach. The neW' utilities billing system -will accomruodate this pr09ram as .. ell. Introduct.ion of Rate Schedule C-4 ~ill identify ~-P, establish the applicable 15 percent rate dis.::o'Unt, and comply with the Cit'll siegal requirer:!ent to provide a rate schedule. 3. Dat_rain. which o.t tbe siz utili ties sbou14 apply to the program~ Of the six utilities, only electric, gas, and/or water may be required due to medical necessit)r ~ with regard to the "economic hard6hip" criteria, the same three utilities are recommended to apply to RAP~ These three utilities are among the three largest ccmpcnents of a total utili ties bill. FurtherIilore, the refuse utility is planning to introduce a new "mini-can" rate this year, 'Which ... ill alsa provide scme rate relief to residents experiencing economic hardship. For these reasol"'.s staff recQmmends tt-.at for this program, RAP should be applicable to ","ater, gas, and electric utilities only. 4. Determine the level of percentage discount bill reCS:uctioD~ Pacific Gas , Electric Company (PGSE) , San Diego Gas and Electric Company, and southern California Edison offer a 15 percent discount to lo ... -income ratepayers. Based on this yardsticK, the RAP level of rate reduction is recommended at 15 percent a~d is applicable to wa.'ter, gaS r and electric charges, tor q'..l.alifying customers \Who are eligible for financial assistance. Also~ residents whc consume. additional po .... er,. \ro'ater, or gas for medical reason!': would similarly receive: a 15 percent rate reduction on the applicable utility charge. The resident shall continue to pay the utility u:c;ers tal!: based on the gross utilities charges (before the discount is applied) . It is proposed that customers who meet both the CKR:262:" L i . L<' ~~, ... - financi~l and medical eligibility criteria receive the standard 15 pe~cent discount. Thus, to avoid "compounding discounts", customers who may qual ify for RAP based on Iileeting both the medical and the economic criteria could not receive a 30 percent discount. It is important to ncte that 'With this 15 percent rate disco'.mt, the resulting bill !Will continue to cover the utilities Department'So margi:'llil wholesale cOmI!Jooi ty cost 'trrith a sufficient margin. H. other .. ords, the proposed rate relief .. ill not put the utilities Department in ~ position 'Whereby services are sold at a loss. Therefore, utility sales through RAP will continue to make a. positive contribution to the utility's fixed costs, ... ·hich b~nefits ~ll ratepayers~ 5. Dati~. eligibi1ity criteria for the a.aid.oti.l aat. Aaaiatanee proqram. To qualify for RAP, a resident must provide proof of financial need 2X provid~ a physician's letter c~rtifyinq that the patient is in need of medical e~~ipment or indicating why additional amounts of util ities services are needed due to the patient's medical condition. Customers who qualify will need to be recertified annually to aS3ure that they continue to re~ain eligible. The C~lifornia Department of Econvmic opportunity (DEO) provides a certification service for customers applying fer PG&E's low-income rate assistance (LIRA). PG&E customers send their applications for LIRA directly to DEO and they are processed within 30 days. The utility and the customer are notified by DEC if an applicant qualifies. The current charge by DEO for this service is $2.60 per application. Staff has been in contact !With DEC and such services can be made available to Palo Alto as ... ·ell. Staff recommends that the City utilize OEO contract se~ices to certify eliqibility for RAP with one exception. Reslden't.s -who qualifjt for RAP, based on medical reasons, should apply directly to the Utilities Department's CUstomer Service Center. With regard t~ proof of financial need, the eligibility criteria beloW' are based on cri ter-ia adopted by th"! California Publ ic Utilities cOMmission for invEstor-owr.ed utilities. To q..:alify, proof .of at least one of the follo"Ming t)'pes of fina~cial assistance !Will be required: 1. Supplemental Security Income (5S1) or state Supplemental Payment (SSP), such as a copy of "statement of Benefits" for the c'..l.;Z:-r-ent yec:-.:r; 2. Food stamps with ~ritten verification from welfare office; 3~ Aid to Families With Dependent children (AFDC), (copy of the most recent ~Notice of Action" from County Department of Social Services); or 4. Veteran and Survivor Pension Benefits. CHR~2'2:'3 L • ! ! I ! f · i - Residents who p~Qvi~. such proof hav. already supplied appropriate hQusehold income documentation to the appropriate agency in order to qualify for the respective benefit. Thus, by accepting such proof of ~enefits to qualify for RAP, ~esidents ~ould not have to recertify income in thes~ cases. However ~ if none of the above can be provided, then verification of income yould be necessary. In such cases, an applicant can qualify for RAP, if household ir.co~e criter.1a as described belo'« can be documented such as through recent tax returns. FOl: pu.rposes of this program, the income le'l.-.els are k;lased on approximately 150 percent of the Federal Poverty Levels {same guideline used by PG&-E}. The gross annual income for all persons in the applicant's household may not excee~ the following le.·~'els: Number of Persons in HQusehold Maximum 1992 _.Gross AnDll"l HousehQl.d Income 1 or 2 3 4 5 6 7 each additional person $14/900 17,4-00 20,900 2~/4.0a 27,900 J 1. 400 add 3,500 For residents .. hOo have a medica! condition and/or are disabled, a physician IS lett.er documenting the patient's medical needs e.nd ri:lquirement for additional ""ater, gas, and/or electricity is require(~ to be submitted to the Ut.ilities Departxnent's Customer Serv ice Center. The perscn must be a full-time res ident, A paraplegic, hemiplegic I or quadriplegic person qualities. Similarly. a multiple sclerosis patient, or a s~leroderma patient ~ith special beating needs, qualifies, In many cases a qualifying r-esident ... il1 depend on life support equipment. Life support equipment. is defined as "equipment that uti] izes mechanical or artificial "means to sustain, restore, or supplan.t a vital fur.cticn, or mechanical equipment ~hich is relied upon for ~obility. Such equipment includes/ respiratcrs, iron lungs, nemodial)'sis lI".achines, suction machines, electr-ic ner ... e stilrtUlators~ pressure pads and pumps. aerosol te.nts, electrostatic and ultrasonic nebulizers, compre~sor$, rpPB machines, and motorized ~heelchairs (Senate Bill 987)~· To the ext.ent a C'.lstomer utiliZes equipmoent no+: contained on this list, a decision to extend the program to such customer would be made on a case by case basis. The key criteria is that a resident must demonstrate tnat additional amounts of water, gas l and/or electricity is needed because of a medical condition of a full-time household member~ 6~ Estimate the first year polled utility custc~ers, approximately 200 residents RAP pa.rticipa.tion. without having staff estimates that there are who require additional amounts of i r' ! • .' . 1 - "rater, gas, and/o!:" electricity for medical reasons:. For the first yeaI f staft projects a 50 percent participation rate. .l.ccordinq to a 1990 Census, 7.8 percent of all Palo Alto households have income less than 150 percent of the Federal Poverty LEvel guidelines. The current number of electric 1lletered households (including separately metered ~partm~nts} is approximately 27,000. The~efore. an est1~ate of the n~~er of potential qualifying customers is approximately 2,OJO. Of the 2,000 households at or bela....-150 percent ot the federal poverty 9uidelines, many viII elect not to apply for RAP or will 1!Jiss the ar:nouncements of it& ex.istence. Therefore, staff estiruates the level of first year participation at 50 percent or 1,000 customers. 7. oeter.a!ne at&ttinq r&quir.6menta and proqr~ coata to effectively adain!ster the proqr~9. RAP has been designed ~ith an aim to hold down progra!t operating costs. The goal is to. operate RAP 'Wit.h existing staff in a timely and effective manner. Given this goal, it "ill'as determined to nak.e the qualification and recertificat.ion process free ot lengthy staff 5.mrestigations into customer income and background. As m~ntioned earlier~ DEC ~il1 proceso a resident's RAP application fer $2.60. Thus, estimated ccsts to prC'vide this sErvice through DEO are approximately $2600-$3500 annually (some residents ~ill not qualify but will be proc~ssed and billed by DEO). Other costs associated W'ith administration of RAP include postaqe~ forns, advertising, etc. estimated at $2,000 year. If this program is approve~. staff would plan to move funds from existing programs to cover these cvsts, since the amounts are small relative to tr.e utilities Department I s tctal budget. Software program costs ~ill be absorbed in-house by the Information Resources Department and will not require additional tunding from the outside. 8. a.timet. the revenu. impact of RAP. As indicated above, staff estimates that the n'.lmber of first year participating residents -,-.rill be approximately 1/ DOD based cn the fir.ancial criteri3 and 100 based on mecHcal criteri~~ The prc·jected revenue declir.a. for approximately 100 residents 'Who ~eet the: medical criteria is $J,OOC/year. In addition, a 15 percent reduction for approximately 1,000 RAP customers who meet the financial criteria translates to an estimated annual revenue decline o~ approximately $35/000~ $20,000, and $40 /000 for Electric~ Water, and Gas Funds, respectively. From the perspective of an individual single-family household, the electric, Iro'ater f and gas bill savings are approximately $35/year ~ $30/}'ear, and $6o/year, respectively. However, it is expected that approximately 4-0 percent of the qualifying residents live in multi-'family housing where the only utility bill they pay is electric. The landlord typically pays tha w3ter and gas which are billed through a single master meter. In ~hese instances, a qualifying resident would receive a 15 percent reduction in the electric bill they pay, and the landlord would not receive a discount on the water or gas which also serves the entire CKlh262:93 .i J ! - housir.g complex. In terms of rate impact.~ these r~'lenue reCluctions represent 0.1 percent, 0.1 percent, and 0.2 percent for electric. ~ater, and gas respectively. Thus, t.he impact of this progralll em l..<tilities revenue or on non-participating c\.,;stome~s' bills is insignificant~ As mentioned earlier, administrative costs are not prcjected to be of siqnificance. Finally, as more qualifying customers a.pply in subsequent years J the revenue impact j s not. expected to be significant. 9. Evaluat. fundinq en6rqy erriciency _aaaures in lieu of a bill ~tsgount. It may be noted that one approach which ~as considered is to finance energy efficiency improvements fer qualifying residents, iT!stead of providing a perce!'ltage reduction on their bilL A prerequisite for RAP could also be that a customer mllst engage in a minimum al!lount of conservati on measures such as installed ..... ater heater insulation I sealed/i;,sulated ducts l "Weathar stripped doors, used tdgh efficiency showerhead I and so forth. Such an approach is consistent \{ith another uti Ii ties Department goal to promote resource efficiency. However, despite the appeal of this approach from a resource conservation perspective, it \{as rejected for this program for several ~easons~ The first reason relat.E-s t.o the high percentage of qual ifying customers 'Who rent and, therefore, ·~re not 1 ikely to invest in measures which improve the resource efficiency of a dwelling which they do not own~ Second, by qualifying for RAP, these individuals have serious financial problems and limited cash on hand. Taking out a loan is not going to be a valid alternative, nor is expending limi ted resources to reap resource conservat ion benefits over a longer tirr.efra!lle. From th-eir perspective, they need immediate rate relief 'Which is met through a bill rec:h.ction. Also, !Ilany are elderly who do not have the reSClurces or skills necessary to install many resource conservation measures. Third, current staffing levels are inade:q'..late to verify on-site resource conservation improver..ents. Presen!.lYJ there is one temporary staff person responsible for energy efficie:"lcy audits of residential dwellings. To perform audits effectively on approximately 1000 ho:es without long delays would re~~ire increasing staff or require significant private contractor cc~ts. A simpler approach could involve the resident providing receipts or bills to confirm that the requisite measures have been taken. Even assuming that residents kept all documentation, thjs approach could not be effectively addressed in a timely manner 'With eXistir.g stafL Fourth, customers 'Who are near the federal poverty guidelines are most likely not very large consumers of utilities. A cons~mption analysis indicates that residents who are nea.r the federal pover-ty line use approximately 30 percent less water, 35 percent less electricity, and 12 percent more gas than the residential system average. The higher gas usage can be attributed to the likelihood CJIll,262 , U - • I - that there is a high percentage of slderly in this grou;J, ...,ho generally require additional space heating in the ~inter. In s-.nm:nary ~ inclusion of resource conservation measures as a prerequisite for 'R);,p could "help promote: reSQu:::"ce efficiency but could result in lengthy delays for finar.cially-limited residents qualifying, and is impract.ical to administer given th~ goal cf operating R . .t\P with eXisting staff. However, there is certain appeal to 1 ir-.king the subsidization of resource conservation measures for financially-limited persons, a~d other programs that may be recommended in the futuce~ Establishing the RAP program could assist in targeting these customers for future r~source conservation p~·cgrams • .10. Dev.lop •• asures to lower the inci~ents of fraue!. T".'o measur-es are proposed to lower the incidents of fraudulent information supplied to the Util i ties Department. First, all annua 1 recertification .ill be conducted by DEO find staff to assure contl>lllinq eligibility of residents. Second .. staff recom.tlends the apprc-val of an ordinance making it unla .... ful for a utility customer to knowingly provide incorrect, inaccurate, false, or mi'31eadlng information of any kind in connection with an application fer this and other utility proqrarns. Since it ~ould become a violation of the municipal code, it could r-es'I.Olt in a penalty of up to six months in jailor a $1,000 fine .. or both. Such fines could be levied in addition to billing the customer to recoup tbe 15 percent discount. IaplpentatioD. If the Council approves this program, staff would follo~ up ~ith notification to all residents of the existence of RJ.P and provide forms to residents interested in the program. At the same time, the neces:;,.ary soft'Ware programming 'Would be performed to the utilities billing system to accomIllodate P..AF.. In preli-minary discussions ·..,ith OED, they have indicated that" they require some lead time to accomolish tasks on their end. Based on the foregoing, staff pro-jects that R.A.P ~oiJld not be fully i1t.plemented until tl1e second quarter of FY 9)-94. Since this is a new program, some fley.ibility in timing and budget is i~portant to deal 'With unfor-eseen circumstances. Accordingly, staff recommends an effective date of july 1, 1993 for the attached Rate Schedule C-4, which ~ould be implemented beginning with billing cycles durinq the second quarter of FY 9)-S4. Staff does not plan to pro-rate customer bills when initiating RAP, but ~ill establish the program's effective date 'With a cust.omer's entire month billing cycle. Retroactive billing adjus'tl'nents will not be prQvided~ L - -~----------- • o hcogy;@nOation Staff reco1:Jnends Co'Uncil approval of: 1. The attached resolutjon adopting Rate Schedule C-4 which provides rate rel ief tc qual ifying customers of tha Re6id~ntial Rate Assistance Program ~hich will be implemented d'llrirlq the second q'..larter of F'i 93-'94; and, 2. The atta~hed ordinance providing penalties for the submission of fraudulent informaticn to the City by utilities customers~ Respectfull}" submitted, ~ '\ -' -/) , -L) ./ U-"--d. """') ,,-~j L------ W. RANDY B.M..DSCH"'"uN Assistant Director of Utilities, Adm;i7i;;;z;;ces ED'HAR/;. MRIZEK E~Utiliti'S City Manager Attachme~ts: I:KIII 262 "3 Resolu'tion Ordinance Rate Schedule C-4 ~ I I i RESCliU1'ION NO. _______ _ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO AI,TO ADOPTING UTILITY RATE SCHEDlJLE C-4 OF THE CITY OF PALO ALTO UTILITIES RATES AN:) CHARGES FERTAINING TO 'l"'HE RESIDENTIAL R.~TE ASSIS';'ANCE PROGR.A.'Vl: WHEREAS. the Council has considered the need te, issue discounts to electric~ gas. and water utility customers who may qualify for 8ucn discounts ~nder prescribed terms and conditions; NOW, THEREFORE, th~ Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 14 Pursuant to Section 12.21].010 of the Palo A.1 to Municipal Code, utility Ratg Schedule C-4 (Residential Rate llBsistance Program) of the City of Palo Alto iJtil ities Rates and Cr.arges is hereby adoptee to read in accordance with the sheet captioned "Utility Rate Schedule C-4-1.· attached hereto a.nd incorporated herein by this reference. The foregoing Ut-ility Rate Schedule shall become effective on July 1, 1993. ~~. The Council finds that the discounts to be provided to electric. gas~ and water '!J.tility ::ustoillE:rS 'Who qualify for such discounts under prescribed terms and conditious estab lished by the City tJf..anager shall be used only for the purposes set forth in Article VII~ Section 2~ of the Cha:l';ter 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 Re~~lations. INTRODUCED AND P~~SED: AYES, NDBS, ABSENT: l'.BSTENTlONS : ATTEST, APPROVED: City Clerk Mayor APPROVED AS TO FORM, Senior Asst. City Attorney n1rector of Finance oi r~e-c-'t"o'-r'--o·f--'U-::t'-J.T' 1~i"t-"i-e"8=------ - ORDINANCE :!iO. ORDINA."lCE OF THE COUNCIL OF THEcrTY OF PALO ALTO A.l1BNDING CHAPTE'R 12.20 OP THE PALO ALTO Ml'JNICIPA!, CODE BY ADDING A NEW SECTION 12. 2D. 02'0 TO PROHIBIT THE KNOWING PROVISION OF FllSE !NFOR.""1P.TION IN COl't"llECTION WITH ANY .I!;.PPLICATION FOR OR RECEIPT OF ANY UT.ll·ITY SERVICE BY A UTILITY CUSTOMER, AND RBPEAL1NG SECTION 12.32.040 .AND RENUl'oBERING SECTION 12.32.050 OF CHAP'IER 12.32 OF TITLE 12 OF 'F.tIB PALO ALTO r-ruNICIPA..L CODE The Council of t~e City of ~alo Al to does ORDAIN as follows: ~}.-1. Chapter 12.20 of Title 12 of ~he Palo Alto Municipal Code is he:.:'eby amended t-o ar"id a ne-w section 12.20.020 to read as follows: 12.20.020 bowing-provision of false information. It shall be unlawful for the purchaser of any electricity; gas, or water from the City of Palo Alto, or the customer of any electric, gas, water~ wastewater. refuse, or storm drainage utility of the City of Palo Alto~ or any person receiving cr using such electricity, gas; or water or wastewater r refuse. or storm dr~inage utility service. to Jor...nowingly provide inc:orrectr inaccurate, false. or misleading inforrr~tion of any kind to the City of Palo ~to in connection with an application by suc~, purchaser. customer. or person for or receipt of electricity, gas, or ""ater, or any electric, gas, water, wastewater, refuse, or stonm drainage utility service, or in connection with ciny request for info~tion ~4de by the City of Palo Alto in accordance with the Palo Aleo Utilities R.ules and Regulations adopted by resolution of the Council pu:r-sua;lt to Section 12.2G.C10~ SEc:rICtJ'~. Se~t ion 12.32 _ O~O of Chapter 12.32 cf Title 12 of the palo Alto Municipal Code is hereby repealed in its entirec.y~ SECTION-l. S{ction 12.32.050 of Chapter 12.32 cf Title 12 of the Palo Alto MUI.icipal Code is hereby ren".liubered Section 1~.32.040 of Chapter 12 32 of Title 12 of the Palo Alto MUnicipal Code and ameLded to read as follows: i2.~2.040 Water efficient landscape ordinance. Pursuant to the Water Conservatio.D. in Landscaping Act, Gov-er ...... '1l.ent Code Section ~----&a it fie} Be amended---ft"effi t-iffle ts time, 65591 II ~'. j' as 'amended, the -ei1;-y---eel:1:l'1:il Council will adopt by resolution regulations or standards for landscape water efficiency in the City of Palo Alto. SECTION 4 ~ The Council finds that ordinance do not constitute a project Environmental Quality Act. 1 'L the provisions of this under t_he Cal i!ornia -,;::> '.,.'.~.'.;.".'. C.' _,,-~.:" ' __ .. ~I..: I .... .... . 1 I I j SECTION co~enc~~ent of adoption. I~1TRODUCED ! PASSED: AYES: NOES: }O...BSTBr.."TIONS: ABSFNT: AITEST: City Clerk s. This ordinance the thirty-firs: AP PROVED AS TO FOP.!>!: Senior Aset. Cit}" Attorney 2 shall be day after APPEOilED: ~ffective the date City Manager Director of Utilities on of the its ~, : ;: " ~-, - A. s. RESIDENTIAL RATE ASSISTANCE PROGRAM J.LTILIlY R..,IE SCHEDULE ~ APPLICABILITY: This schedule applies ,0 residentia;, premises (single-family dwefljng, separately metered flat 0< apartmenl) w~hin the City of Palo Alto limns which are served by the City and occupied by a tuU-time resident who qualifies for participation in the Utilities Residential Rate Assistance Program. RATES: A diSCO'Jnt of fifteen (15) percent on any appl'cable City of Palo Alto Utilities Rat. Schedule. C. SPECIAL CONDITIONS: 1. Residents may qualify for participation in the Residential Rate Assistance Program (RAP) for either meaical or economic reasons. To qualify for medical reasons, a resident must provide a physician's letter cer'Jfyjng to tile msdicaj condttion of the resident and the necessity for special med',cal equipment To qualify for economic reasons, a resident must provide proof of financial need as required by the City or rts authorized certification ags""Y. Residents participating in RAP based on economic reasons wHi be efigible to receive a 15 percent discount on watei, gas, and electric charges. Residents participating in RAP based on medica' reasons wi~ be eligible 10 receive a 15 percent dis<:ount en the applicable water, gas, a~d(or electric charges. 2. The 15 percent d1scount does not rel.leve the resident Of the obngation to pay tr,e Utility Users Tax. Such tax wiiJ be computed or: the gross utility charges before applying toe discount 3. It is un~awfo.;1 for a resident to knOWingly pro ..... ide trcorrec: or farse informatioo in connection with an application for participation in RAP. Such violation could resutt in a $1,000 fine or six months in jail, or bolt,. 4. The issuance of t~e discount shall be sublect to further reasonab!e rules and regUlations as may be prescribed by ihe City Manager. The procedure foe quamication and an interpretations as to the applicability of the prov'lsions of thiS schedule or such rules and regulations shaH be made by the Crty Manager or ner(his designee whose cetermination shall be ~nal. CITY OF PALO ALTO UTILITIES I ssued by the City Council ·L Effective 7 ·193 Original Sheer No. C-4·1