The URL can be used to link to this page

Home My WebLink About0315.093Kay ?D, 199.3 ' ... "HE HONORABLE CITY COFNCIL Palo ~lto, california Attention: Finance Committ~e uti] lty Rule Revision to P..;.-crate All Rate Changes Member~ of the council: ihll2Qrt in Brief This report recommends approval of the attached resolution to revise Utility Rule and Regulation 6, "Meter Reading and preparation .:If Bills c . The proposed change provides that refuse, 'Wastewater, and storm drain bills 'Will be prorated during rate changes and said change should improve customer rel~tiQns. Background utility Rule and Regulation 6 addresses meter reading and preparation of bills. section F discusses the :manner in ....-hich utility bills are prorated between rate changes for ~ater, gas, and electric but not for refuse or wastewater. It provides that flat rates for refuse and ~aste.ater are not prorated ~hen rates change. The apparent reason fo~ this practice, which has existed for at least 40 years, is an intent to avoid confusing customers .hen chs!':Iges occur to flat rates. 'I'he confusion can occur under proration when the uti.lity indicates the new flat rate in the notice to the customer but the rate seer: on the bill by the customer would b~ different for that month. piscussion Proration refers to the billing practice of calculating a bill between rate changes, based en the number of days in the customer's billing cycle at the old rates and the number of days in the cycle CDz31.5:93 , .' .. ;' ;.,. -J i I 4 ~I r I ;-! , - - unaer the new rates. In this ~dr.ner, equity is achieved since it avoids charging 4 customer the new rates for the entire billing cycle~ even thOllgh a portion of the customer's billing cycle is represented by the previous rate. There have been j'.lstifiable complaints from customers ...,.ho receive refuse or ~aste.ater bills for a billing period ~hen rates change and their entire billing cycle is at the ne... (higher) rate. CUstomers perceive this as an inequity and have requested that refuse and wastewater bills be prorated during rate changes tc mDre accurately reflect the period of their billing cycle when the old and new rates 'Were effectiY€. '1'0 accomodate this legitimate custoner concern, staff recommends discontinuing this practice and applying proration to all util i ties during rate changes4 The proposed change deletes the section referring to exclusion of refuse and 'Wastewater from proration and provides that all utilities will be prorated 'When rates change. Staff recommends adoption of the attached resolution revising Utility Rule and Regulation 6. Respectfully submitted, ~.R~_tf}~ W. RANDY ilfLDSCHUN Assistant Director of Utilities, Adruinistrative Services // . ~WARD J. l( II. ,,' , .~' ~E FLElM{NG ( l City Manager 'j Attachments: Resolution U~ility Rule and Regulation 6 CHR:315:93 -" o RESOL1..;"'TION APPROVING GOVERNING RESOLUTIDN NO. OF TEE COUNCIL OF THEe ITY OF P.~O ALTO AND ADOPTING RULES ~,~ REGULATIONS tITILITY SERVICES ANTI io"EES k"ID CHAH_GES EFFECTIVE JULY 1, 1993 WHEREAS, pursuant to Chapter 12. 2:D of tl-Je palo A.l to MunJcipal Code the City Council may by re301ution adr.)pt r",les and regulations governing utility s,=rvicl?s other than cor!lrnunications seI'Vices in the city and the fees and charges therefore; a!'ld WHEREAS. the City Council has deten':'li!1'2:Q to revise the existing rules and regulations and to adopt:. ncw ru1es a!ld regula tions, to be effective July 1, 1993 NOW, THEREFORE 1 the Cou 4 cll of the City of Palo ~ta dces hereby RESOLVE as follows: SKCTIQ1:L.l~ Pursuant to SF;ction 12.20.010 of the PalD Alto Municipal Ccde l the amended and new rules and regulation~ governing utility selvices, other than communication services i~ the city. and the fees and charges therefore, attached hereto and incorpo rat.ed herein; are hereby approved and adopted. Except as specifically amended by this re-sol utian, all existing t.<tility r-,;.1.es and regulations remain in full fOLee a:r.d effect as of the date of their original adoption~ SECTION {. This Council finds that none of the provisions of this resolution will have a significa::1t enviroI1JnE"ntal irr!pact. SECTION 3. The. foregoing changes shall become effective July 1, 1993. INTRODUCED ~u PASSRLr: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FOR .... : Ci ty Managet: City Attorney Di r ector of --}j;-rna:=n-=c"e:------- Interim Director of Utilities 93051S tide 0050B9! • - E. CUSTOMER READS OWN METERS; (continued) METER RE .... DING AND PREP .... RATION OF BILLS B_ULE6NQ REGULATION 6 (Coolinuedj for the reading 0' !he City meters located on their prope:1)/. The ut~lity customer notes the readif'gs found On their meters or. index cards provided by the City. These cards are then sent to the City for entry ir'lto the computer bWing system. 1, If a cuslorr,er reading is no! received by t~e Cit, in t'me fO( billing, an estimated read(s) wi!! be made by the City, so that bHling will take p:ace. (A) ContinJed failure to provide meter read cards by the customer could f'S's:.rit in a fie~d investigation, access to the me!er(s) by Utilities personnel, or denying the customer participation in t~e Customer Reads Own Meter prog(am. 2 On a periOdic basis the UtWties Department wi!! notify customers of an intent to read t"e meters as required for vermcation. For such purposes, meler access by Utilities personnel at reasonable hours must be provided by the customer. In the event access is denied, section 02 of this rule Sh3!\ apply. F. PREPAlIATION OF BILLS; 1. Bms fO( t.mHty Ser\i(CBS win be pre.pa~e.d in accordance with t.J'""!e rate schedule appEcable to the premises served, as detenr.ined by the Department of Utilities. 2. The mo.'"'!thly minimum or ser"llice charge for metered water (and related wastewater), gas, or eiectric services, as well as the consumption "b:OCKS· n applicable for opening. closing, or regular bliis, will be prorated on t.~e basis of t~e number of days in U-Ie service period to trie r,umber of days in an averar;1e month. TI"le number of days in an av·erage month will be taken as 30.4. The effect of such proration will be to ptoduce a unl10rm aversge unit cost for the eommocHy regardless Of the nurr.ber of days in the service period. 3. I., the event that water, gas, electric, refuse, wastewater and/or storm drain rates c,"'ange during the serv;ce period, charges wtl1 be prorated on the basis of the number 01 days covered by "tile previous. rate schedule to U"le number of days col/ered by the new rate scnedule 4. Trle monthry (Of bimonthly) flat-rete charge for refi.Js.e, storm drain and wastewater or other no~meteied services will be bi!leo 12 ttmes per year> or equivalent thereof on regular bills, Suc/'. charges w,:; only be prorated on opening or closing bills and when rates change CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No, 6-3 dated 7·'·92 L Effective 7"-93 Sheet No, 6-3 'Ji