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Home My WebLink About0228.095, . 'UDGET ~ 5 -9 tJ City of Palo Alto City Manager's Report TO: HONORABLE CITY COUNCIL ATI'DiTlON: FINANCE COMMITTEE FROM: CITY MANAGER DEPARTMENT:UT!LlTJES AGENDA DATE; May 1S, 1995 SUBJECT: Water Rate Decrease This IOpOrt requests Council adopIicn of • Resolution 10 reduc<: water rates approJ<i.m.ately lO pe"""'!. SIaff m.ommcnds Council'. approval of !be .ttached ,",oJuoon 10 ~ !be Water Fund _eme approJ<i.m.ately $1.38 million. or 10 pen:ent. effective July I. 1995. This rate propo<al may be revised durin8 !he budge! proo;ess if and wbc1l !he SOIl Francisco W3ler Oepartmenc (SPWD) umounces plans '" a<1just !be who!csale rues signific&Ill.'Y. roycy IMPLICA.TlONS This Water Fend revenue c!ecIeasc does _ ha,·. any policy implic.!.ticns. This action is witbin !be City policy 10 cbarge CUSlome", based on !beir sb= of !he cost. Tbe Water Fund reve_ teq\Iirement <.Omists of several COOlpO!>tlltS. ~hlding tbc cost 11> porehase water. !be <os! 10 operate and malnt:ai.n • reliable system, tiIJan<e an oppropri.ate level "'&olelJ ';' " of the capital improvements from ='" operating revenues, fund prudent reserve levels and prc<Iooe • retw'!I on investment wWcl! is then =term! 10 the City's Gen<raJ Fund. A ~ cIIange i.o. any of these fadon, as .. eD as • change in sal« level. may warrant • rate cllange. Since the droughI eucIed. ....ter sales have been rising at • moderate ralt and are projected to ccmin:!e to "".., in !be future. Sales for FY 1995-96 are forecast.:d at 6.2 millie. CCFs (CCf equah • hundred cubic feet}, or awro.timately 9.6 pen:ef1t below the 1987 base estabr1She<l clwins the drought. The projec!ed increase in !ales. coupkd wilb an increase in the intcIest earne4 on reserve balances, will increa. .. revenue. by .pproximately $800,000. In addition. Il><,. is • projcctccl =a .. vings of >ppro.timattly $500,000 in Il>< Water Fund operating budget. due 10 lower ,.015 wbicl! will have • fa"arable impact OIl the .... nue requirement. As • result of these (actors. the Ratc SUbilizatiOll Re=ve (RSR) level is projec1ed to exceed the maximum level for F'1i 1995-96. =fore, staff is propo5ing. 10 pet«1ll rate reductioo. WIIh I $1.38 million revenue decrease, tbc RSR is P""jec!cd at !be end of !he fuca! year 10 be below the maximum level but above its taIget level P2Io Ahc staff bas developed the pt(lJl(I.ed bodget and rate recommendatio'" for FY 1995-96 before the SfWD has anooutU<! any wlloiesak: rate adjustments. In !be evell! • signlficaDl SFWD rare proposal is announced, staff may revise Ibis retail rate proposal during !be budget process. AIl update on !be SFWD rare issue wiIl be provided duri.1g !be budget boarings. FISCAL IMPACT The fISCal impact of the 10 pereen! rare decrease or the SI.:.8 millioo revenue decrease will bring the RSR balm:<: belew the maximum level allowed under the n:serve guidelines for FY 1995-116. IMPA.CT OF THE RATE PFrRfASE ON CUsrol\.fEBS' RU J S The revenue dec= '''is spread unifvnnly between !be residential and oon-residenlial customer ct.sses. In order 10 continue !be transition from SIeepIy inverted rates, !be higbesl residential rate blocks received I greater decrease. Thus. a residentia! customer using an average amount of water (about 12 CCFs) ... ill experience • 10 percent reduction. O!ber customers ,.be use relatively smaller amounts of .... ter ".,11 experle"", I smaller decrease in !beir bill, as they are cha.-ged !be lowest ra .... As for !be Noo-Resideatiat Rate Scbedule (W-4)_ • 10 per<:e11t mb.'Iion "'as appIied 10 all rate blocks. A comparison of Palo Aho pr,~ customer bills ",ilh surrounding cities current customer biDs is illuma!ed by the atta<:':Ied graphs (Auacbmelll I). These comparisons iDlflCllte !hat P2Io AI-.o·s water rate< are competitive with Deighbori"8 cities. I . "~. -~" l' ,> " .' · . : .. /'-:.- ',e •. :' " __ ~. r " .' .. :,.--.... --., .... :" -<;, • PRESEN1' PROP. BilL S .,. ctTSTOME.J{ Cv.ss BilL DIFF. DlFf. Small RWdentW (4CCFs) $ 9.60 $ 9.20 (50.40) (OJ Small Residenlial (1CCF.) 13.80 13.10 ( 0.70) ( 5.1) Avl. ResidenOal (12CCF.) 24.6S 22.10 (B5) (lO.34) Large IIm<kntial (SOCCFs) IIS.7S 99.14 (16.61) (lOS) Small Comm. (9CCFs) 22.00 20.20 (1.80) (8.18) AVI. Comm. (3OOCCFs) 638.30 S7S.30 (63.00) (9.87) LarJle Comm. (12OOCC'Fs) 2,565.00 2,310.00 (255.00) (9.94) The adoption of the resolmioo does not constitule • project under the California environmental QuaIi!y Act.iberefore, 00 enviroomental assessmen! is required. AUACHMENIS Water BiD Coolparisons Resolufun. Rale Scbeduies W·l and W-4 PREPARED BY: Lucie Hlnnina, Maaager, Utilities Rates REVIEWED BY: Randy Baldschun. Ass1staDI DirecIO< of Utilities, Administrative Services CITY MANAGER APPIlOV AL:1JfcN~i:El;ttN'f61t i;y Manager Paa' 3 '" ) '. I I I ~r.(r) II£SID~llV<41l;1l BILL C~p Effective 1\pri/I 99s 'ARISON $M~thly8m$ --,/' -------------,- ,- .- ~ ~ ,~ ~ ·...c..z S/ .. 1 12 ~ z~ 20 RBSOLQ'I'ION NO. RBSOUFI'ICfi OF TK8 COllI/CIt. OF TI!ll CI1"{ OF PALO :UTO _lDJ trrlLl TY RATE SCiIBOO'..BS "·1 AND V·, OF TN!! CITY OF I>ALO ALTO 11TILITIES RATBS AND (:KARGES PSRTAIIiDIG TO GENERAL VATER SERVICE The Co-J.IlCil of t.he City ef Palo llto does hereby RBSOL'iO: as follows: SECTION 1. Pursuruot to section 12.20.010 of the Palo Alto ~eipal COde .. ScbeOule8 V~~ {C~eral Res1d$utial Water Service) ~ V·4 (General lIon-2eBidential Water Service) of the palo Alto Utilities Rates and Charges are hereby amended to read in accordance with Sheets V·1-1" V-4-1 and W-4-2-.. respectively .. att$Ched bereto and incorporated berein by reference. The foregoi~ Ocility Rate Sch~dule.. as amended. shall become effective on July 1~ 1~95. SSCTION 2 _ The CO'Jncil fi.nds that the rEvenue derived frem the authorized adjuetmer.ts of the several general "Bter service rates shall be used only for the puzpoees set forth in Article VII .. Section 2J of th~ Charter of the City of Palo Alto. s8CT 1QN 3. The coun-cil finds that the adoption of tbis resolution does not CODStitute a project under the California BDViroamental Quality Acf:: .. california Public Resources Code section 210i~. subdivision [.b)(8}. I1ITRO!XJCm) AND PASSIID: AYES: NOES: ABS8NT: ABSTE!/'l'IOI'lS : A'I"lEST, APPROVED: -city Clerk Mayor APpaO'VlID AS TO FORM: City Manager Senior Asst._ City Attorney Director of Utilities Director of Finance ,- A. APPUCABRJTY: GENERAL RESIDENTIAL WATER SERVICE UTIIJTY RATE SCHEDUlE WI This tct.edtJSe applies 10 aa residentiBl single family wale< service. 8. TERRITORY: ' Inside and OYIside !he incor]:>o<a1ed Imits o(!he City 0( Palo Alto and land owned « leased by !he cq.. C. RATES: SetvIce Charge: Per MeIer Per Month for 5I8--VIch me!6r ... __ . _ . _ ... _____ . _ . _ . __ . _ . ___ . _ • _ . _ _ $ 4.00 f« 3f4 inch mele< _ •.. __ • _ ...••.• _ • _ .' __ • _ •. _ •• '" . _. __ .• 4.00 For 1 inch meier ••••. _ ••••••••• __ • _ •.•• _ • _ . _ . _ ••.••• __ • C.SO Fo< 1 112 inch meIer. _ ... ' ...••••.•. __ .• _ ....•.... _ ...•.... 5.20 For 2-inoh mele< .• _ ., ••..••••••.. _ .•• _ •...•••. _ •• _. _ ••. 6.80 Fa 3-iI1chmeter .••.••.....•.• _ ••. _ .• _ •.. ____ .... ____ .11.30 F« 4-inch meier •••• ___ •• _ ••• _____ • ___ ..•. _ ••• _ •.• _ .• _ 16.20 F« 6-inch III8II!r __ •. _ •. __ •. _ •• ____ •••. ___ •. _____ . _ ••.. 30.00 For 6-inchmeler _.·_. _______ •• _. ______ •.. __ .. _____ ..... 46.75 F« 1~inc:h meier __ . ___ •. , __ . __ • __ . ____ • _. ___ .•. ___ • __ • 58.00 CommodjIy Rate: (To be adcfecf Servi<:e Charge and appIiCabJe 10 aa pres5IJle zones.) Per Hundred Cubic Feet AI Pressure Z9!le!! FII"St 1 Cd _. _ ...... __ .• _ . ____ ..•. _. _. _ . __ • _ . _______ $1.30 Next 1 Cd • _ .. _ . _ •.. _ . __ •. ___ . __ .... __ . __ .. _ .•. "'. 1.90 Ove< 14 Ccf _____ . _ • ______ •• _ .. _ .••• ____ . ___ •. _ . _ . _ _ 2.04 Ternpora.-y unmeIerecl service 10 residential subcr.-vision developers. per connedion ____ . _________ . _ _ _ _ _ _ _ $4.00 CITY OF PALO ALTO UTlUTlES Issued b~ !he City Coonci Supersedes Sheet No. W-1-1 dated 1·1-94 Effective 7-1-95 Sheet No. W-'-1 • < • • GENEAA~ NON·RESIOENT\A~ WATER SERVICE UTIIJTf RATE SCHEDUlE W-i A. APPLICABIUTY: This scl!e!Iule app!i<3s to non-residenlial waler seMce in !he Cily of Palo Alto and its dislTibution area. This sc/\ed4Jle is also apprlCable \0 mil1li-family residential cuslo<ne<$ seIV9d through a masler meier. 8. TERRITORY: Inside !he inco!poraled fimits of !he City of Palo Alto. "" land owned or leased by !he City. and ani' oilier land serviced by !he Palo Alto Water UtJTiIy. C. RATES: Service Charge P..-Meter Per ~\or.!h For 5I6-inch meier .....•.••.......•.• ' .. " .' .....•... " $ 4.00 For 314-inch meier ••...•.•••.••....••••..•..•..•..•...... 4.00 For f-lncll meier ••.••.•..•..••....••.••.•.........•.••. 4.50 For 1 112 inch meIer ....................... , ............... 5.20 For 2 ihch meter •....•..•.••..•••.•.••••.••.••.....•..• 6.80 For 3-inch meter ...................................... 11.30 For 4-inch meler ...................................... 16.20 For 6-inCIl meler •••...•...•.••....•.••.•••..•.•...••.• 30.00 F« &-ihch meier .•...•.....•..•......•.............•.. 46.75 For 1O-inch meter ...............•••..•......... , ....••. 58.00 Commodity Rates: (\Q be added 10 Se!yice Charge) Based on Meier Sizes Bale S!ruc!ure W-i A For Meter Sizes 5J8-1nch, 314 Inch. 1 L'lCh. 1-112 Inch Per Meier Per Moolh Per H<.'f1dred Cubic Feet All Pressure Zones First 30 Cd .•....••..•.••.•..•....••.......•.....•.. 51.80 Over 30 Cd •••...•...••....•....•••••......•.•....•• 2.04 CITY OF PALO ALTO UTILITIES IssUed by !he CiIy Council SUpen;ed&s Sheet No. W-4-1 da("d 7-'·94 Eff .... --ti.e 7·'·SS Sl1eet No. W-4-1 .-~ . ..-.. GENERAL HOH-RESfOENT1AL WATER SERVICE UTiliTY RATE SCHEDlU W-4 (ICoofinued) Co.-nmodiIy Bales· Ilo be addtd to Se!yioe Charge) 8ased on Meter Sizes RIte Struc!u!e W-i B For Meter Sizes 2 Inch, 3 Inch, 4 Inch Per Meier r.,.. Month Per Hundred CubIc Feet All pres" ere Zones Frs! 200 Ccf ..•••....•....••..•.........•........•.• $1.80 Over 200 Ccf . • . . • . • . . . . . . . . • . • . . . . . . . . . . • • • . . • . . . . . " 2. 04 Bale §lruc!ure w+c: For All Meters Greater than 4 Inch rerMe!er Per Mon1h Per Hundred CubIc Feet M Pressure Zones . Fnt 700 Ccf •••....••.•.. ' ••.. ' •..••..•.....•....... $f.80 Over 700 Ccf ••..• . • • • • . • • • . . . . . . • • • . . • • . . • . • . • • . . . . • 2.04 CfIY OF PALO ALTO UTIUTIES Issued by ihe C~y Cou<I<:I Supercedes Sheet Nc. W+1 dafed 7·1·94 ~ W Effedive 1·1·95 Sheet No. W-4-2 --'