HomeMy WebLinkAbout1998-06-22 City CouncilBUDGET
’98- ’99
City
City of Palo Alto
Manager’s Report
REVISED
4
TO:HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: UTILITIES
AGENDA DATE: JUNE 22, 1998 CMR:241:98
SUBJECT:PROPOSED INCREASE TO UTILITY SERVICE
CONNECTION AND CALL FEES
REPORT IN BRIEF
This report requests Council approval to increase fees for new Water, Gas, Sewer, and
Electric utility service connections as well as Utility service call fees.
CMR:241:98 Page 1 of 6
RECOMMENDATION
Staff recommends that Council adopt the attached resolutions to amend Utility Rate
Schedules E-15, W-5, G-5, S-5, and C-1. The effective date for Rate Schedules E-15, G-5,
and C-1 is July 1, 1998. In accordance with Government Code Section 66017, the effective
date for Rate Schedules W-5 and S-5 is September 1, 1998, to meet the code requirement
for a minimum 60 day delay in implementation after Council approval applicable to water
and sewer development fees.
BACKGROUND
The Utilities Department provides service connections to its distribution network in order to
meet new customers’ needs for electric, gas, water, and sewer services. Connections are
usually finalized after the City inspects and approves all equipment installed by the customer
(i.e. contractor or developer) and usually after the customer pays the required fees as set
forth in the connection fee rate schedules.
Connection fee rate schedules are developed to recover costs that the Utilities Department
incurs to provide installation and connection services to new customers. Connection fees and
related fees are based on a methodology which sums the cost of labor, materials, overhead,
street paving, meter costs where applicable, landfill dump charges, equipment, and overhead
charges. The current connection fees schedules were last revised on July 1, 1994 and are
based on a cost-of-service analysis performed at that time. This year an updated cost-of-
service study has been completed and the results indicate that current fees are not recovering
all costs. Therefore, staff recommends that connection fees as well as fees for utility service
calls be increased.
DISCUSSION
WGW Connection Fees:
The proposed increases in water, gas, and sewer connection fees are due to a combination
of factors which include an increase in labor hours, labor rates, and material costs. To ensure
total recovery of connection costs and to help keep retail water and gas rates competitive,
staff proposes that in addition to connection fees, new water and gas service connections
include payment for the cost of the meters. Currently, the costs of new meters are recovered
through retail rates from all ratepayers. Other cities including Santa Clara, Mountain View,
Menlo Park, and Redwood City include the cost of the meters in their connection fees.
Tables 1, 2, and 3 show the proposed connection fee increases for water, gas, and sewer
CMR:241:98 Page 2 of 6
Tables 1, 2, and 3 show the proposed connection fee increases for water, gas, and sewer
respectively. The proposed increases in water, gas, and sewer connection fees range from
14 percent to 48 percent. With the added cost of the meter, proposed water connection fees
would increase between 40 percent to 82 percent, depending on the size of connection. With
regard to gas, the additional, cost of the meter results in an overall percentage increase in
connection fees between 25 percent and 75 percent, depending on the size of connection.
While these percentages are high, they are consistent with the range of percentage increases
which normally result from revised connection fees. For example, in 1994 the percentage
increases ranged from 10 percent to 40 percent. This proposal is higher primarily due to the
inclusion of the water and gas meter costs.
To the extent practical, fees are developed to cover standard connections under basic
assumptions. In reality, a number of special customer requirements arise with regard to
connections, and in such cases, the appropriate fees are generally subject to an engineering
estimate. With respect to water, gas, and sewer services, new fees have been standardized
and added to the connection fee rate schedules. Previously these standard services were
charged on an estimated basis. Standardizing new fees eliminates the process of estimating
new connections, which will help shorten the permit issuing process.
Electric Connection Fees:
Unlike certain water, gas, and sewer fees which can be standardized, there are many types
of electric connections, which vary in cost. Accordingly, most of the electric Connection fees
are proposed to be established by an engineering estimate. Nonetheless, for those
connections which are fairly straightforward, new fees are proposed to be established. For
example, staff proposes a fee of $340 for a basic underground service connection.
Currently, the fee is $1120 and represents an average of standard and non-standard service
connection costs. Under the staff proposal, customers will pay considerably less for standard
connections, while customers requiring an unusual connection will pay the actual cost for
that connection. In such cases, a customer may pay more or less than the existing fee of
$1120. At this time, staff does not propose to add the meter cost to electric connection fees
because non-standard meters are recovered on specific rate schedules through a monthly
service charge. Table (4) shows the proposed electric connection fee increases.
A significant proposed change to the electric connection fee schedule is the elimination of
the economic justification clause applicable to extension or reinforcement of electric
facilities constructed to accommodate a subdivision or other development. This subsidy has
outlived its usefulness since promoting growth in Palo Alto has not been considered a
priority in a number of years. To keep Palo Alto’s electric rates competitive under
CMR:241:98 Page 3 of 6
deregulation, the economic justification clause is proposed to be eliminated in Rule and
Regulation Number 16 as part of staff’s pending recommendation to revise Utility Rules and
Regulations (CMR: 196:98). In addition, an advance engineering fee is proposed. The
advance engineering fee must be paid prior to receiving an estimate for a service. It will
allow the engineers to schedule connection projects more efficiently. This fee will be
applied towards the estimated cost of the project.
With regard to Utilities service calls on Rate Schedule C-l, the hourly rates to perform
certain service calls, such as restoring service following a turn-off for non-payment, have
been revised to reflect updated labor costs. In addition, a field collection fee is proposed to
mitigate the cost of collecting late payments and to discourage customers from purposely
delaying payments.
RESOURCE IMPACT
The staff recommendations are estimated to increase annual connection fee revenues
approximately 33 percent or $55,000, $93,000, and $51,000 in the Water, Gas, Wastewater
Collection Funds respectively. The exclusion of the economic justification clause is
estimated to increase Electric Fund revenue approximately $125,000-$200,000 on an annual
basis. In addition, by charging fees based on site specific estimates, electric connection fee
revenue is estimated to increase $30,000 annually.
ENVIRONMENTAL ASSESSMENT
Adoption of this resolution does not constitute a project under California Environmental Air
Quality Act; therefore, an environmental assessment is not required.
POLICY IMPLICATIONS
The proposals of this report are consistent with the Council approved policies regarding
recovering costs of service. The elimination of the electric economic justification clause and
the proposed inclusion of meter costs as part of the gas and water connection fees represents
a change in methodology that shifts the costs from all ratepayers to the new customer or
developer. This reflects a continuing change in the industry to discontinue subsidizing new
development and growth in areas of high density.
CMR:241:98 Page 4 of 6
ATTACHMENTS
Tables 1,2,3,4
Resolution applicable to water and sewer
Resolution applicable to electric, gas, and service calls
Utility Rate Schedules W-5, G-5, S-5, E-15 and C-1
PREPARED BY:Jose Jovel, Utilities Engineering Estimator
Tomm Marshall, Electric Engineering Manager
Lucie Hirmina, Manager Utilities Rates
DEPARTMENT HEAD REVIEW:
CITY MANAGER APPROVAL:
EDWA!~ J. MP,~EK
Director ~-UCilities
~_J City Manager~
CMR:241:98 Page 5 of 6
Table (1)
Water Connection Fees
Rate Schedule W-5 Existing Proposed Difference With Meter Difference
Distribution Ext. Fees: (per ft.)
-For 6" Main
Connection Fees: (Domestic)
-I inch
-I 1/2 inch
-2 inch’
-4 inch
-6 inch
Connection Fees: (Fire)
-4 inch
-6 inch
-8 inch
Connection Fees: (Combination)
-4 inch x I inch
-6 inch x I inch
-8 inch x I inch
-4 inch x 1 I/2 inch
-6 inch x 1 I/2 inch
-8 inch x I 112 inch
-4 inch x 2 inch
-6 inch x 2 inch
-8 inch x 2 inch
-6 inch x 4 inch
-8 inch x 4 inch
Add. Meters:
-New Connection
-Existing Connection
-5/8 inch x 3/4 inch
-1 inch
-1 1/2 inch
-2 inch
-3 inch
-4 inch
-6 inch
Manifold:
-2 inch
-Small Service <2 inch
-Large Service > 2 inch
Fire Hydrant:
-Install New without Lateral
-Install New with Lateral
-Relocate and Lateral
Other Fees: (per hr.)
-Engineering Fee
-Utilities Inspection Fee
$7o.oot
1,820.00
2,500.00
2,800.00
5,300.00
5,900.00
4,100.00
4,700.00
5,100.00
4,500.00
5,000.00
5,400.00
4,800.00
5,300.00
5,700.00
5,100.00
5,600.00
5,900.00
6,900.00
7,300.00
200.00
300.00
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/Ai
$85.00I
2,694.00
3,177.00
3,586.00i
6,050.00[
6,872.00
4,695.00!
5,244.001
5,841.00
5,652.00
6,201.00
6,798.00
5,923.00
6,472.00
7,069.00
5,992.00
6,541.00
7,138.00
9,002.00
9,599.00
240.00
350.00
35.00
103.00
325.00
420.00
1~08.00
2,603.00
3,881.00
507.00
743.00
1,078.00
2,061.00
7,305.00
3,095.00
80.00
77.00
21%
48%
27%
28%
14%
16%
15%
12%
15%
26%
24%
26%
23%
22%
24%
17%
17%
21%
30%
31%
20%
17%
New
New
New
New
New
New
New
New
New
New
New
New
New
New
2,797.00
3,502.00
4,006.00
8,653.00
10,753.00
5,755.00
6,304.00
6,901.00
6,248.00
6,797.00
7,394.00
6,412.00
6,961.00
7,558.00
11,605.00
12,202.00
54%
40%
43%
63%
82%
28%
26%
28%
30%
28%
30%
26%
24%
28%
68%
67%
Table (2)
Gas Connection Fees
Rate Schedule G-5
Distribution Ext. Fees: (per ft.)
-For 2" Main
Connection Fees:
-1 inch
-2 inch
Existing
$60.00
1,720.00
2,500.00
Proposed
$80.001
2,056.00
2,995.00
-Difference
33%
20%
20%
rr.x~e~d.P.l:~: (per ft.)
-1 inch
-2 inch
Add. Meters:
-New Connection
-Existing Connection
-250 CFH Diaphragm
-400 CFH Diaphragm
-675 CFH Diaphragm
-500 CFH Rotary-Residential
-800 CFH Rotary-Residential
-500 CFH Rotary-Commercial
-800 CFH Rotary-Commercial
-1000 CFH Rotary-Commercial
-1500 CFH Rotary-Commercial
-2000 CFH Rotary-Commercial
-3000 CFH Rotary-Commercial
-5000 CFH Rotary-Commercial
-7000 CFH Rotary-Commercial
-11000 CFH Rotary-Commercial
-16000 CFH Rotary-Commercial
-Electronic Volume Corrector
13.00
13.00
50.00
125.00
N/A
N/A~
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
15.00
17.00
67.00
137.00
87.00
196.00
652.00
865.00
952.00
865.00
1,019.00
1,009.00
1,014.00
1,247.00
1,560.00
1,966.00
2,235.00
2,842.00
3,492.00
5,378.00
15%
31%
34%
10%
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
New
-Existing PE Pipe
Curb Meter Relocation:
-Riser Reloc. on Exist
-Riser Reloc. on Same
-New Service
Other Service Fees:
-Engineering Fee
-Utilities Inspection Fee
300.00
N/A
N/A
N/A
N/A
N/AI
560.00
421.00
812.00
998.00
80.00
77.001
87%
New
New
New
New
Table (3)
Sewer Connection Fees
Rate Schedule S-5
Collection Ext. Fees For 8" Main: (per ft.)
-Service Area I & 2
-Service Area 3 & 4
Connection Fees:
-4 inch
-6 inch
-4 inch Lateral > 6ft deep
-6 inch Lateral > 6ft deep
-Manhote up to 6ft deep
-Manhole > 6ft deep
-Sewer Lateral
Other Fees: (per hr.)
-Engineering Fee
-Utilities Inspection Fee
$80.00
100.00’
3,200.00
3,800.00
Proposed
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$I 10.00
130.00
3,900.00
4,349.00
4,871.00
5,514.00
4,685.00
6,149.00
990.00
80.00
77.00
38%
30%
22%
14%
New
New
New
New
New
New
Table (4)
Electric Connection Fees
l te ScheduleE 15
.~:l~2d~: (Underground)
No Estimate required
-Residential (Basic Connection)
-Mult/Com/Ind (Basic Connection)
Estimate Required
Advance Engineering Fees:
-Residential
-Mult/Com/Ind (400 amps max)
-Mult/Com/Ind (over 400 ampF)
Connection Fees:
-Residential (over 200 amps)
-Mult/Com/Ind (200 amps max)
-Mult/Com/Ind (over 200 amps)
On-site Distrib. : ,[Under, round)
-Residential
-Mult/Com/Ind
Off-site Distrib. : ,RJnder£~round)
-Residential (4 lots or less)
-Residential (other)
-Mult/Com/Ind (Transfr. on lot)
-Mult/Com/Ind (other)
Overhead Renlacement:
-Residential (200 amps max)
-Residential (over 200 amps)
-Mult/Com/Ind (200 amps max)
-Mult/Com/Ind (201-400 amps)
=Mult/Com/Ind (over 400 amps)
Temporary Services:
-Overhead (200 amps)
-Overhead (over 200 amps)
-Underground (200 amps)
-Underground (over 200 amps)
N/A
N/A
N/A
N/A
N/A
ESTIMATE
800.00
ESTI MATE
ECONOMIC JUST
ESTI MATE
Proposed
$340.00
540.00
ESTIMATE
ECONOMICJUST.
ECONOMICJUST,
ESTIMATE
300.00I
ESTI MATE
300.00
ESTIMATE
ESTI MATE
440.00
300.00
ESTIMATE
300.00
600.00
ESTIMATE
ESTIMATE
ESTIMATE
ESTI MATE
ESTIMATE
ESTIMATE
ESTI MATE
ESTIMATE
ESTI MATE
ESTI MATE
460.00
ESTIMATE
670.00
670.00
ESTI MATE
620.00
ESTI MATE:
500.00
ESTIMATE
Difference
New
New
New
New
53%
123%
41%
67%
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING UTILITYRATE SCHEDULESW-5 AND S-5 OF THE
CITY OF PALO ALTO UTILITIES RATES AND CHARGES
PERTAINING TO SERVICE CONNECTION FEES AND UTILITY
SERVICE CALLS
The Council of the City of Palo Alto does hereby RESOLVE
as follows:
~. Pursuant to Section 12.20.010 of the Palo Alto
Municipal Code, Schedules W-5 (Water Service Connection Fees) and
S-5 (Sewer Service Connection Fees) of the Palo Alto Utilities Rate
and Charges are hereby amended to read in accordance with Sheets
W-5-1, W-5-2, W-5-3, W-5-4, S-5-I, S-5-2 and S-5-3, respectively,
~attached hereto and incorporated herein by reference. The
foregoing Utility Rate Schedules, as amended, shall become
effective on September I, 1998.
~2ALT~. The Council finds that the revenue derived from
the authorized adjustments of the several general water service
rates shall be used only for the purposes set forth in Article VII,
Section 2, of the Charter of the City of Palo Alto.
~.~LT~.~ The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act, California Public Resources Code section
21080, subdivision (b) (8).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT :
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Utilities
Director of Administrative
Services
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING UTILITY RATE SCHEDULES G-5, E-15, and C-I
OF THE CITY OF PALO ALTO UTILITIES RATES AND
CHARGES PERTAINING TO SERVICE CONNECTION FEES
AND UTILITY SERVICE CALLS
The Council of the City of Palo Alto does hereby RESOLVE
as follows:
~J~]~l. Pursuant to Section 12.20.010 of the Palo Alto
Municipal Code, Schedules G-5 (Gas Service Connection Fees), E-15
(Electric Service Connection Fees), and C-I (Utility Service Calls)
of the Palo Alto Utilities Rate and Charges are hereby amended to
read in accordance with Sheets G-5-1, G-5-2, G-5-3, G-5-4, E-15-1,
E-15-2, E-15-3, E-15-4, E-15-5, E-15-6 and C-l-I, respectively,
attached hereto and incorporated herein by reference. The
foregoing Utility Rate Schedules, as amended, shall become
effective on July i, 1998.
~TI~D~_~. The Council finds that the revenue derived from
the authorized adjustments of the several general water service
rates shall be used only for the purposes set forth in Article VII,
Section 2, of the Charter of the City of Palo Alto.
~.T!.Q~_~. The Council finds that the adoption of this
resolution does not constitute a project under the California
Environmental Quality Act, California Public Resources Code section
21080, subdivision (b) (8).
INTRODUCED ’AND PASSED:
AYES:
NOES:
ABSENT :
ABSTENTIONS:
ATTEST:APPROVED:
CiZy Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
Mayor
City Manager
Director of Utilities
Director of Administrative
Services
980527 syn 007071414
GAS SERVICE CONNECTION FEES.
UTILITY RATE SCHEDULE G-5
A. TERRITORY:
Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City of Palo
Alto.
B. FEES:
All fees must be paid prior to the scheduling of any construction. Depending on material availability
and scheduling constraints, utility service will be installed between 30 and 40 days following receipt
of full payment.
1. DISTRIBUTION SYSTEM EXTENSION CHARGE:
Street frontage charge per foot ....................................$80.00/ft.
CONNECTION CHARGE FOR SERVICE INSTALLED ON EXISTING MAIN:
1-inch connection ............................................$2,056.00
2-inch connection .............................................2,995.00
Above 2-inch connection ...................................Utility Estimate
Excess Length Fee: An additional charge ($15.00/foot for a 1-inch connection and $17.00/foot for
a 2- inch connection) will apply to an extension greater than forty feet from the street property line
to the gas meter location, measured along a line perpendicular to the street property line.
Service Location: The service line will be installed along the shortest, most practical route,
as determined by The Utilities Department (from the gas main in the adjoining street, alley,
lane road, or easement to the nearest suitable meter location at the building or structure).
3. METER CHARGES:
250 CFH Diaphragm ............................................$87.00
400 CFH Diaphragm ............................................196.00
675 CFH Diaphragm ............................................652.00
500 CFH Rotary-Residential .......................................865.00
800 CFH Rotary-Residential .......................................952.00
500 CFH Rotary-Commercial ,. .....................................865.00
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. G-5-1 dated 7-1-94
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No G-5-1
GAS SERVICE CONNECTION ~ES.
UTILITY RATE SCHEDULE G-5
{Continued}
800 CFH Rotary-Commercial.
1000 CFH Rotary-Commercial
1500 CFH Rotary-Commercial
2000 CFH Rotary-Commercial
3000 CFH Rotary-Commercial
5000 CFH Rotary-Commercial
..................................... 1,019.00
.................................... 1,009.00
1,014.00
.................................... 1 247.00
.................................... 1 560.00
.................................... 1 966.00
7000 CFH Rotary-Commercial .........." ........... ................2 235.00
11000 CFH Rotary-Commercial ....................................2 842.00
16000 CFH Rotary-Commercial ....................................3 492.00
Electronic Volume Corrector System ................................5 378.00
Other Meter Sizes .........................................Utility Estimate
ADDITIONAL METERS ON CONNECTION:
(Applies to small meters up to 400 SCFH)Per Meter
With new connection ............................................$67.00
On existing metered connection .....................................137.00
Charges for meters above 400 SCFH, will be based on the Utility’s estimate2
5. SERVICE RELOCATION:
Service riser relocation ..........................................$560.00
Service riser relocations will only be performed on polyethylene pipe services. All "other material
pipe" services must be replaced from the main to the meter at the fees listed in Section B(2) of this
rate schedule.
Curb Meter- Riser relocation on existing pe pipe .........................$421.00
Curb Meter- Riser relocation on same alignment of existing service .............812.00
Curb Meter- New service from main to house ............................998.00
6. RELOCATION OF FACILITIES:
Approved relocation of service and other facilities will be done at the cost of the person requesting
the re-location. Deposit of estimated cost is required before relocation work begins. After the City
completes the work, a f’mal billing based on actual costs will be sent to the person requesting the
relocation of facilities.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. G-5-2 dated 7-1-92
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No G-5-2
GAS SERVICE CONNECTION FEES
UTILITY RATE SCHE DULE G-5
{ Continuea)
C.OTHER CONDITIONS:
1. SERVICE CHARGES:
(A)Additional service connections are available with payment of additional service connection
charges shown in Section B.
Replacement of service connections made necessary because of ordinary wear and
deterioration will be made without charge. However, if the need for replacement arises due
to meeting an increase in load, the new service will be charged as a new service under
Section B.
(c)In commercial or industrial areas where a surface meter installation is impractical, meters
may be placed in underground vaults. Vaults must be provided and installed by the owner
in accordance with the gas utility’s specifications. The vault lid sections shall not exceed
70 pounds. All lids shall be centered above the gas meter to allow visibility of the meter
face for meter reading purposes.
2. UNDER UNUSUAL CONDITIONS:
(A)A condition which, in the opinion of the Engineering Manager, Water-Gas- Wastewater will
result in a cost higher than the fees in Section B, will be classified as unusual. The charge
for an unusual installation will be based on the Engineering Manager, Water-Gas-
Wastewater estimate of the total costs of all materials, labor, and other costs incidental to
the installation.
O3)In the event gas service to a premises is requested and insufficient capacity exists to provide
such service, the applicant shall bear the total cost for designing and enlarging the
distribution system to accommodate serving the applicant. The Engineering Manager,
Water-Gas-Wastewater may require the applicant to make arrangements for the design and
construction of said expansion in accordance with City standards and specifications.
Alternatively, the Engineering Manager may elect for City forces or contractors to design
and install respectively such facilities at the applicant’s expense. Full credit to the applicant
will be provided for any over sizing or extra facilities installed to meet service demands
above the specific capacity needs of the applicant as def’med in the Utility’s rules and
Regulations.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. G-5-3 dated 7-1-92
CI’fY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No G-5-3
GAS SERVICE CONNECTION FEE
UTILITY RATE SCHEDULE G-5
{Continued}
3. EXCEPTIONS:
Gas Service Area 2, connections served directly from supply main: The distribution system charges
(Section B) will be based on a maximum frontage of 660 feet. This exception applies to single
applications of service and does not apply to subdivisions or tracts.
4. MASTER METERED GAS SERVICE
For master meter services using high volumes of gas, the applicant must provide all required
meters, sending units, regulators, and other necessary flow control equipment as specified by the
City and approved by the Engineering Manager, Water-Gas- Wastewater.
OTHER SERVICE CHARGES:
1. OTHER SERVICE FEES:
The following fees will apply to utility work performed by outside contractors:
(A) Engineering Service Fee ...................................$80.00/hr
03) Inspection Service Fee ....................................$77.00/hr
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. G-5-4 dated 7-1-92
CITY OF PALO ALTO,
UTILITIES
Effective 7-1-98
Sheet No G-5-4
ELECTRIC SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE E-15
A. APPLICABILITY:
This schedule applies to all connections, expansions, and upgrades to the City’s electric distribution
system except those which serve street lighting or traffic signals.
B. TERRITORY:
All territory within the incorporated limits of the City and land owned or leased by the City.
ADVANCED ENGINEERING FEES:
Advanced engineering fees must be paid to start the engineering process and are non-refundable.
The engineering fees will be credited against the estimated job cost prior to the collection of
construction fees. Advance engineering fees will not be collected for service connections that do not
require a job estimate.
ESTIMATED CONSTRUCTION AND SERVICE CONNECTION FEES:
All estimated on-site, off-site distribution system, and service connection fees must be paid prior
to the scheduling of any construction or connections to the City’s electrical distribution system.
SUMMARY OF FEES:
The following schedule is for summary purposes. Section F herein describes the specific fees and
conditions in detail.
1.UNDERGROUND SYSTEMS:
(A) Service Connections Which Do Not Require an Estimate
Service Connection Fees
(1) Residential .......................................$340
(2) Multi-Family/Commercial/Industrial 400A or Less ..............$540
(3) Multi-Family/Commercial/Industrial Greater Than 400A By Estimate
03)Service Connections that Require Estimates
(1) Residential
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Advance Engineering Fees
....................................... $300
Supersedes sheet No. E-15-1 dated 7-1-97
CI]’Y OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No E-15-1
ELECTRIC SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE E-15
{Continued}
(2) Multi-Family/Commercial/Industrial 400A or Less .............$600
(3) Multi-Family/Commercial/Industrial Greater Than 400A ....By Estimate
On-Site Distribution System Fees
(1) Residemial .......................................N/A
(2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate
(3) Multi-Family/Commercial/Industrial GreaterThan 400A .....By Estimate
Off-Site Distribution System Fees
(1) Residential ..................................By Estimate
(2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate
(3) Multi-Family/Commercial/Industrial Greater Than 400A ....By Estimate
OVERHEAD SYSTEMS:
All service connection fees are based on a 100 foot service length. If additional service
length is required there may be additional fees.
Service Connection Fees
(1) Residential .......................................$460
(2) Multi-Family/Commercial/Industrial 400A or Less ..............$670
(3) Multi-Family/Commercial/Industrial Greater Than 400A .....By Estimate
TEMPORARY SYSTEMS:
Temporary service charges 200A maximum, 250V maximum, 3-wire service, 100’ in length
are shown in the following table. Fees for services requiring greater voltage or capacity will
be determined by estimate.
Overhead Service Connection Fees
(1) Residential .......................................$620
(2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate
(3) Multi-Family/Commercial/Industrial Greater Than 400A ....By Estimate
Underground service connection fees
(1) Residential .......’ ................................$500
(2) Multi-Family/Commercial/Industrial 400A or Less ........By Estimate
(3) Multi/Commercial/Industrial Greater Than 400A ....By Estimate
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. E-15-2 dated 7-1-97
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No E-15-2
FEES:
ELECTRIC SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE E-15
{Continued}
1.UNDERGROUND SYSTEMS
Connection fees for new or replacement services to the underground electrical system consist
of one or more of the following: Service Connection Fee, On-Site Distribution System Fee
and/or Off-Site Distribution System Fee.
(A)System Connection Fees:
Where the City connects any Customer to the electrical distribution system, a service
connection fee shall be charged. A waiver of this fee is granted for services
connected during an underground conversion district.
(1) Residential - Single Family
These fees apply to development in which electric metering will be on single-
family basis.
(a) For a 250 volt, 200 ampere maximum service .. ......... $340
(b)For any connection requiring greater capacity, the fee shall be the
estimate of the installation cost or $340, whichever is greater.
(2)Commercial/Industrial
These fees apply to commercial, industrial, multi-family residential services.
(a) For a 250 volt, 400 ampere maximum service .......... $670
(b)For any connection requiring greater capacity, the fee shall be the
estimate of the installation cost or $670, whichever is greater.
03)On-Site Distribution System Fees:
Where the City installs or will install the underground conductors (primary or
secondary), switches or transformers in and on facilities provided by the developer
within the boundaries of a subdivision or other development, an on-site distribution
system fee shall be charged. The fee shall be the estimate of the installation costs.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. E-15-3 dated 7-1-97
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No E-15-3
(c)
ELECTRIC SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE E-15
{Continued}
Off-Site Distribution System Fees:
Where the City installs or will install an electric distribution system, system
extension, or system reinforcement outside the boundaries of a subdivision or other
development to be served, an off-site distribution system fee shall apply. The fee
shall be the estimate of the installation costs.
2.OVERHEAD SYSTEMS
Overhead services that do not require the addition of poles to the system will be the standard
service for residential areas not in Underground Districts. Underground Service will be
required for all new industrial, commercial, and multi-family residential construction. No
new construction that will require new poles to be added to the system shall be permitted
except with the approval of the electrical Engineering Manager and only after a f’mding that
an underground service is not feasible. Replacement of existing overhead services with new
overhead services will be allowed as long as the new service does not exceed the size of the
existing service or 200 Amperes for single-family residential or 400 amperes for all others,
whichever is greater.
(A)Overhead Service Connection Replacement Fees:
(1) Residential - Single Family
These fees apply to development in which electric metering will be on a
single-family basis.
(a)For a 250 volt, 200 ampere, 3 wire,
100 feet in length Maximum services ............$460
(2)Commercial/Industrial
(3)
These fees apply to commercial, industrial, multi-family residential services.
(a) For a 250 volt, 400 ampere, 3 and 4 wire services,
100 feet in length maximum service ................$670
Replacement of Overhead Services of greater voltage, other than described
above when done for the customer benefit, or when required due to damage
by customer, shall be the estimate of the installation costs.
CITY OF PALO ALTO UTILITIES
~Issued by the City Council
Supersedes sheet No. E-15-4 dated 7-1-97
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No E-15-4
TEMPORARY SERVICE
ELECTRIC SERVICE CONNECTION FEES
. UTILITY RATE SCHEDULE E-15
{Continued}
G. NOTES:
A fee shall be charged to connect temporary service. The customer shall furnish all
equipment up to the designated point-of-service. This point -of-service will usually be the
weatherhead for overhead temporary services in overhead distribution areas or the secondary
connection box for underground temporary services in underground distribution system
areas. The City will not supply overhead temporary services in underground service areas
or underground temporary services in overhead distribution areas. The City will supply:
overhead conductors and meter for overhead temporary services; and meter only for
underground temporary services. The City will connect both overhead and underground
services to the City’s electrical distribution system. Any additional off-site facilities or work
required shall be provided and removed by the utility at the customer’s expense.
(A) Overhead Temporary Service Fees:
(1)For a 250 volt, 200 ampere, 3-wire service,
100 feet in length maximum service .....................$620
(2)The fees for a temporary service of greater length and capacity or voltage
shall be the estimate of the installation or removal costs or $620, whichever
is grater.
03)Underground Temporary Service Fees:
(1)For a 250 volt, 200 ampere, 3-wire maximum service,
If a service box is available at the property, ..............’.. $500
(2)
(3)
If a service box is available at the property, the charges to provide a service
box will be at the customer’s expense.
The fees for a temporary service of greater length and capacity or voltage
shall be the estimate of the installation or removal costs or $500, whichever
is grater.
1.These fees apply to all vacant land except where the fees are recorded as previously paid.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes sheet No. E-15-5 dated 7-1-97
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No E-15-5
=
o
ELECTRIC SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE E-15
{Continued}
The Customer is responsible for the installation of all equipment from the facility to the
designated point-of-service. For underground systems, this includes Conduit and conductors.
For overhead systems, because the point-of-service is the weatherhead or point of attachment
to the facility, this includes the mast or riser and all conductors therein.
When the City replaces a service, the Customer is obligated to accept a shutdown of service
during regular working hours. The time of the shutdown shall be agreed upon as mutually
acceptable.When, for the convenience of the Customer, the shutdown is during other than
regular working hours, it shall be done entirely at the Customer’s expense. The Customer
shall pay the entire cost of the overtime labor, not the incremental cost.
The City can generally provide service availability from 30 to 45 days after all fees are paid
except when long lead-time equipment or materials are required. Consult the City for
estimated lead-times.
The City cannot be held liable for delays in service connection caused by conditions beyond
it’s control, including, but not limited to, delays in the arrival of equipment such as
transformers, switches and cable.
{end}
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-15-6 dated 7-1-97
CITY OF PALO ALTO
UTILITIES
Effective 7-1-98
Sheet No E-15-6
A. TERRITORY:
SEWER SERVICE CONNECTION FEES
UTILITY RATE SCHEDU.LE S-5
Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City
of Palo Alto.
B. FEES:
All fees must be paid prior to the scheduling of any construction. Depending on material
availability and scheduling constraints, utility service will be installed between 30 and 40 days
following receipt of full payment.
1.COLLECTION SYSTEM EXTENSION CHARGE:
For City Standard 8" MainCharges
Wastewater Service Areas 1 & 2 ....................................$110.00
Wastewater Service Areas 3 & 4 .....................................130.00
2. CONNECTION CHARGES:
4-inch connection ..............................................$3,900.00
6-inch connection ...............................................4,349.00
4-Inch lateral depth more than 6 feet .................................4,871.00
6-inch lateral depth more than 6 feet .................................5,514.00
Sewer laterals over 25 feet in length will be charged for the additional footage at a rate of
$100/Ln. Ft. for 4 inch connections and $104/Ln. Ft for 6 inch connections.
Special arrangements must be made to provide for the cost of a connection larger than six-
inch. The City will estimate the cost which will serve as the basis for a customer deposit.
Upon receipt of this deposit the City will install the connection andthe customer shall pay
the actual cost net of the deposit.
3. RELOCATION OF FACILITIES:
Approved relocation of service, and other facilities will be done at the cost of the person
requesting the re-location. Deposit of estimated cost is required before relocation work
begins. After the City completes the work, a final billing based on actual costs will be sent
to the person requesting the relocation of facilities.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. S-5-1 dated 7-1-94 C|3"Y OF PALO ALTO
UTILITIES
Effective 9-1-98
Sheet No S-5-1
SEWER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE S-5
{Continued}
C.OTHER CONDITIONS
1. SERVICE CHARGES:
(A)Additional service connections are available with payment of additional service
connection charge as shown in Section B2.
(B)Replacement of service connections made necessary because of ordinary wear and
deterioration will be made without charge. Replacement due to inadequacy
because of increased demand or load will be charged as a new connection.
2. INSTALLATION UNDER UNUSUAL CONDITIONS:
(A)Any condition which, in the opinion of the Engineering Manager, Water-Gas-
Wastewater will result in a cost higher than the charges set forth in B above will be
classified as unusual. The charge for an unusual installation will be based on the
Engineering Manager’s estimate of the total costs of all materials, labor, and other
costs incidental to the installation.
(B)In the event wastewater service to a premises is requested and insufficient capacity
exists to provide such service, the applicant shall bear the total cost for flow
monitoring the existing main to determine remaining capacity, design of new sewer
main and construction cost for enlarging the collection system to accommodate
serving the applicant. The Engineering Manager, Water-Gas-Wastewater may
require the applicant to make arrangements for the design and construction of said
expansion in accordance with City standards and specifications. Alternatively, the
Engineering Manager, Water-Gas-Wastewater may elect for City forces or
contractors to design and install respectively such facilities at the applicants
expense.
3. PUMPING PLANTS:
Where pumping facilities are needed to drain wastewater into the wastewater collection
system, the capital cost of construction of the pumping plant and the on-going plant
operation and maintenance costs will be at the expense of the developer.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. S-5-2 dated 7-1-92 CITY OF PALO ALTO
UTILITIES
Effective 9-1-98
Sheet No S-5-2
SEWER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE S:5
{Continued}
4. EXCEPTIONS:
(A)Wastewater Service Areas 3 & 4, connections served directly from trunk mains: The
collection system charges (Section B) will be based on a maximum frontage of 660
feet. This exception applies to single applications for service and does not apply to
subdivisions or tracts.
D=
(B)The developer will furnish and install the wastewater system at his or her expense and
in accordance with City’s specifications.
OTHER SERVICE CHARGES:
1.INSTALL MANHOLE:
(A) Depth less than 6 feet .....................................$4,685.00
(B) Depth more than 6 feet ..................- ...................6,149.00
2.ABANDONMENT:
(A) Sewer Lateral ............................................$990.00
OTHER SERVICE FEES:
The following fees will apply to utility work performed by outside contractors:
(A) Engineering Service Fee (Per Hour) ...........................$80.00
(B) Inspection Service Fee (Per Hour) ..............................77.00
{End}
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. S-5-3 dated 7-1-92 CITY OF PALO ALTO
UTILITIES
Effective 9-1-98
Sheet No S-5-3
WATER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE W-5
A. TERRITORY:
Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City
of Palo Alto.
B. FEES:
All fees must be paid prior to the scheduling of any construction. Depending on material
availability and scheduling constraints, utility Service will be installed between 30 and 40 days
following receipt of full payment.
1. DISTRIBUTION SYSTEM EXTENSION CHARGE
For City Standard. 6" Main, charge per foot ............................$85.00
2. SERVICE CONNECTION CHARGES:
Category 1 - Domestic Water Service
Size Amount
1-inch connection ...............................................$2.694.00
1-1/2 inch connection .............................................3.
2-inch connection ................................................3.
4-inch connection ................................................6.
6-inch connection ................................................6
Category 2 - Fire Service
Size
4-inch Connection
6-inch connection
8-inch connection
177.00
586.00
050.00
872.00
Amount
............................................... $4,695.00
................................................ 5,244.00
................................................ 5,841.00
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. W-5-1 dated 7-1-94 CITY OF PALO ALTO
UTILITIES
Effective 9-1-98
Sheet No W-5-1
. WATER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE W-5
{Continued}
Category 3 - Combinat,ion Domestic Water Service and Fire Se~ice
These charges apply to the following combination of Water Service (W.S.) and Fire Service
(F.S.):
Siz____~e 1" W.S.1 ½" W.S 2" W.S.4" W.S.
4" F.S.$5,652 $5,923 $5,992 N/A
6" F.S.$6,201 $6,472 $6,541 $9,002
8" F.S.$6,798 $7,069 $7,138 $9,599
Category 4 - Master Water Service
Approval by the Director of Utilities is required for a connection that serves domestic water
service and fire protection through a detector meter. The charge for master water service
will be based on the Engineering Manager’s, Water-Gas-Wastewater, estimate of the total
costs of all materials, metering not listed in Section B(4), labor and other costs incidental
to the installation.
For service connections of 4-inch through 8-inch sizes and meter sizes of 3-inch through
8-inch, the new owner must provide and install a concrete vault with meter reading lid
covers to house meters and other required control equipment in accordance with the Water
Utility’s specifications.
An approved backflow prevention device with bypass assemblies must be provided by
owner on all fire services.
3. METER CHARGES:
518 Inch x 3/4 Inch ...................¯ .............................$35.00
1 Inch ..........................................................103.00
1 ½ Inch ........................................................325.00
2 Inch ..........................................................420.00
3 Inch .........................................................1,408.00
4 Inch .............................. ...........................2,603.00
6 Inch .........................................................3,881.00
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. W-5-2 dated 7-1-94 Cl3"Y OF PALO ALTO
UTILITIES
Effective 9-1-98
Sheet No W-5-2
4. ADDITIONAL METERS ON CONNECTION:
WATER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE W-5
{Continued}
With new connection ...........................................$240
On existing connection ...........................................350
5.RELOCATION OF FACILITIES:
C=
Approved relocation of service, hydrants,, or other facilities will be done at the cost of the
person requesting the re-location. Deposit of estimated cost is required before relocation
work begins. After the City completes the work, a final billing based on actual costs will
be sent to the person requesting the relocation of facilities.
OTHER CONDITIONS
1.SERVICE CHARGES:
(A)Additional Service connections are available with payment of additional service
connection charge as shown in Section B.
(B)Replacement of service connection made necessary because of ordinary wear and
deterioration will be made without charge. Replacement due to inadequacy because
of additional demand orload will be charged as a new service connection.
2. INSTALLATION UNDER UNUSUAL CONDITIONS:
Any condition which, in the opinion of the Engineering Manager, Water-Gas-
Wastewater will result in a cost higher than the charges set forth in Section B will be
classified as unusual. The charge for an unusual installation will be based on
Engineering Manager, Water-Gas-Wastewater’s estimate of the total costs of all
materials, labor and other costs incidental to the installation.
(B)In the event water service to a premises is requested and insufficient capacity exists
to provide such service,, the applicant shall bear the total cost, for enlarging the
distribution system to accommodate serving the applicant. The Engineering Manager,
Water-Gas-Wastewater may require the applicant to make arrangements for the
design and construction of said expansion in accordance with City standards and
specifications. Alternatively, the Engineering Manager, Water-Gas-Wastewater may
elect for City forces or contractors to design and install respectively such facilities at
the applicants expense.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
~\~"Effective 9-1-98
Supersedes Sheet No. W-5-3 dated 7-1-92 CITY Or PALO ALTO Sheet No W-5-3
UTILITIES
3. EXCEPTIONS:
WATER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE W-5
{Continued}
(A)Water Service Areas 3 & 4, connections served directly from supply main: The
distribution system charges (Section B) will be based on a maximum frontage of 660
feet. This exception applies to single applications for service and does not apply to
subdivisions or tracts.
(B)The subdivision developer will furnish and install the water system at his or her
expense and in accordance with City’s specifications.
D. OTHER SERVICES:
1. MANIFOLD:
(A) 2 Inch .....................................................$507.00
2. ABANDONMENT:
(A) Small service less than 2 Inch ..................................$743.00
(B) Large service more than 2 Inch ........................- .........1,078.00
3. FIRE HYDRANT:
(A) Install New Hydrant without Lateral .............................$2,061.00
(B) Install New Hydrant with Lateral .................................7,305.00
(C) Relocation behind curb (up to 5 feet) .............................3,095.00
Relocations more than 5 feet will require a New Lateral and the existing Lateral will be
disconnected and abandoned at the main,
4. OTHER FEES:Per Hour
The following fees will apply to utility work performed by outside contractors:
(A) Engineering Fee ..............................................$80.00
(B) Utility Inspection Fee ...........................................77.00
{End}
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. W-5-4 dated 7-1-92 CITY OF PALO ALTO
UTILITIES
Effective 9-1-98
Sheet No W-5-4