HomeMy WebLinkAbout0478.093October 14# 1993
THE HONORABLE CITY COUNCIL
Palo Alto# California
'!'!ised 4&-nem ,aotor Ji1.1 Credit
Members of the CGuncilt
'PRO" in Bri.f
6
This report notifies the council of a revised gas therm factor bill
credit in t-.be amount of $152# 800 to be implementecS this tall and
rec01Ime:nds a"pproval of the attached Budget Amendment ordinance
authorizinq such distribution of funds.
h9:tgroppd.
On July .12, 1593, Council approved the distribution of a gas
customer tberm factor bill credit to refund an overcbarge in therms
billed between August 1990 and May 1993 (CMR:390:93). The therm
factor billed over the 34 month period had not been updated en a
monthly basis, resulting in a small percentage of therms overbille.d
to gas customers. The total gas bill credit which had been
calculated was $937,400.
However, further staff review has indicated that the original bill
crecHt computation had accounted only for-monthly therm factor
differences and did not take into account a "pressure correction
factor-. Thus, the projected -therm factors-in the analysis for
each month were overstated, which caus~ the credit to be
significantly overstated. With few exceptions, a gas meter
measures volume but dOGS not measure the density or heatinq content
o.t qas. To arrive at the billing units .tor gas expressed in
therms, a "pressure correction factor-", in addition to a therm
~actor, is computed by the utilities Billing System. A systemwide
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.pressure correction factor" is applied, since qas is deliverad at
hiqher than standard atmospheric prassure.
Tbe corrected gas therm factor hill credit is $152,800, wh.ich
ineludes interest and a refund of the utilities users tax paid~
This represents approximately a $3 one-time credit to residential
customers. ~~rrent plans are to distribute this one-time gas therm
factor bill credit simultaneously with the electric customer refund
next month ..
Remrr'p4atiion
staff recommends that Council approve the attached Budget Amendment
Ordinance authorizing a revised dis~ributio~ of funds in the amount
of $152,800 from the Gas Fund Rate Stabilization Re~erve to refund
a therm factor billing overcharqe to qas utility customers.
~espectfully submitted,
w~~~~~---
Assistant Director of utilities,
Administrative services
/./~ EDW~-J. M)UZE:K
l~es
c~ ty .Manager
Attachments: Budget Amendment Ordinance
CXlh47&.U
" ....
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ORDINANCE NO.
O~DINANCE OF THE COUNCIL OF THE CIT¥ OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1993-94
TO CREDIT GAS CUSTOMERS FOR OVERBILLINGS
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council O~ June
21, 1993 did adopt a bUdget for fiscal year 1993-94; and
WHEREAS. on July 12, 1993. Council approved the distribution
of a qas customer therm factor bill credit to refund an overcharge
in the.rms billed between Auqust 1990 and May 1993; and
WHEREAS, fUrther staff review has indicated that the projected
-therm factors· were overstated, and that therefore the estimated
refund amount ($937,400) was also overstated; and
~~s, the corrected gas therm tactor hill credit is
$152,800, which includes interest and a refund of the utilities
users tax paid; and
WHEREAS, this adjustment will also include City departments
which are customers of the Gas Fund;
NOW, THEREFORE, the council of the City of Palo Alto does
ORDAIN as follovs:
SRCTIQN 1. customer Sales is hereby increased by the sum of
Seven Hundred Eighty Four Thousand Six Hundred Dollars ($784.600)
in the Gas Fund, and the Gas Fund Rate Stabilization Reserve is
correspondinqly increased.
SECTION.J. This transaction will increase the Gas Rate
Stabilization Reserve from $8,618,703 to $9,40),303 as of June ~O,
1993.
SECTION 3. The sum of Two Thousand Five Hundred Seventy Five
Dollars ($2,575) is hereby increased in Public Works Department
allocated charges, and the sum of Four Thousand One Hundred Fifty
Five Dollars ($4,~55) is increased in community Services Department
allocated char-ges, and the General Fund BudgE:>t Stabilization
Reserve is corre.spor,dingly reduced.
~S'1E~CT~J~0'fN,,::--:4~. This transaction 'Wi 11 reduce the Budget
Stabilization Reserve trom $10,992,521 to $10,965,791 as of June
30, ~993~
SECTION 5. The sum of Five Thousand sixty Seven Dollars
CS5,067} is hereby increased in the allocated charges of the
..
Wastewater T~eatment Fund and the Wastewater Treatment Fund Rate
stabilization Reserv~ is correspondingly reduced.
SECTION 6. This transaction
Treatment Fund Rate Stabilization
$2,334,077 of June 30, 1993~
'Will reduce
R@serve from
the Wastewater
$2 1 3J9 ,144.· to
SECTION 7. The Council of the city of Palo ~lto hereby finds
that the er.actment of this ordinance is not a project under the
California Environmental Quality Act and, therefore, no er.vironmen
tal impact assessment is necessary.
SECTION 8.
Municipa 1 Code J
adoption.
As provided in Section 2.04.J75 of the Palo Alto
this ordinance shall become effective upon
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
city Clerk Mayor
APPROIIED AS TO FORM:
Sr. Asst. City Attorney
APPROVED:
city Manager-
D1rector of F~nance
D1rector of Utilities 91-4.10
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