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Resolution No.
Resolution of the Council of the City of Palo Alto Deferring CPAU Late Fees and Collection Actions for Certain Customers Affected by the Ongoing Federal Government Shutdown
R E C I T A L S
A. Since October 1, 2025 the Federal Government has been operating without funding appropriations.
B. Until appropriations are approved and go into effect, the Federal Government is “shutdown.”
C. During the shutdown many payments normally made by the Federal Government have been suspended; these suspended payments include wage payments to federal employees and payments to states that support certain food assistance and other programs.
D. It is not clear at this time how long the shutdown will persist.
E. Many Palo Alto residents are federal employees or are recipients of assistance that has been disrupted by the shutdown.
F. The City’s utility and public work enterprises provide vital services, including electricity, natural gas, water, sewer, stormwater, and refuse services, to the households of these residents.
G. As a result of the shutdown-related disruption to household cashflow, many of these households are anticipated to encounter temporary difficulty in paying their bills.
H. It is vital to the public health and safety that the City not disrupt public services to those most affected by the shutdown.
I. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
J. The City Council desires to defer certain consequences of non-payment of utility bills for residential customers that are most directly affected by the shutdown.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. During the Shutdown Period and the Recovery Period as it pertains to charges incurred during the Shutdown Period, the City will not, in connection with an Enrolled Account: (i) apply late charges, (ii) take collection actions such as referring an account to a
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collection agency or bringing civil action, (iii) initiate termination or disconnection of services, (iv) lower the internal credit risk assessment for the accountholder or account, or (v) report non-payment to any external credit reporting agency.
SECTION 2. For any accountholder of an Enrolled Account, the Administrator may create a payment plan for the Enrolled Account that requires that the balance unpaid at the end of the Shutdown Period be paid in installments during the Recovery Period.
SECTION 3. The Administrator is authorized to promulgate procedures and rules for the administration of this Resolution consistent with the provisions of this Resolution. The Administrator may require that any request made by an accountholder pursuant to this Resolution be made in a manner or in a format required by the Administrator.
SECTION 4. For purposes of this Resolution, the following terms have the following meanings:
A. “Administrator” means: The Utilities Director or his designee.
B. “Enrolled Account” means: Any residential CPAU Account (other than a multifamily account that covers more than one dwelling unit) that either (i) is enrolled in the CPAU Rate Assistance Program or (ii) serves a Federal Employee Dwelling Unit, where the accountholder applies to the City for such treatment, and establishes that a dwelling unit served in connection with the account is a Federal Employee Dwelling Unit, in a manner to be designated by the Administrator.
C. “Federal Employee Dwelling Unit” means: A residential dwelling unit at least one of the occupants of which was employed by the United States Government on October 1, 2025.
D. “Shutdown Period” means: The period beginning on October 1, 2025 and ending on the day that an appropriations bill funding the federal government becomes law.
E. “Recovery Period” means: A 365-day period that begins on the day following the end of the Shutdown Period.
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SECTION 5. The Council’s adoption of this Resolution and the actions taken herein do not require review under the California Environmental Quality Act because they do not meet the definition of “project” set forth in Public Resources Code Section 21065 nor the CEQA Guidelines, 14 CCR section 15378(b)(5).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services