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HomeMy WebLinkAboutStaff Report 213-06City of Palo Alto C ty Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER 8 DEPARTMENT: UTILITIES DATE: SUBJECT: MAY 1, 2006 CMR: 213:06 APPROVAL OF A RESOLUTION AMENDING VARIOUS RATE SCHEDULES RELATED TO RECOVERING COSTS THROUGH CONNECTION FEES FOR NEW METERS IN LARGE DEVELOPMENTS CAPABLE OF AUTOMATED METER READING, GAS VENT LINES,AND BOLLARD PROTECTION FOR METER SETS FROM FINANCE COMMITTEE MEETING OF APRIL 18, 2006 RECOMMENDATION Staff recommends that the City Council adopt the attached resolution to amend fees for Utility connection schedules E-15, G-5, and W-5. In accordance with Government Code Section 66017, the effective date for these rate schedules is July 1, 2006, to meet the code requirement for a minimum 60-day delay in implementation after Council approval applicable to water connection fees. For consistency, rate schedules E-15 and G-5 are similarly effective July 1, 2006. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS The Finance Committee reviewed this recommendation and approved it unanimously at the April 18, 2006, meeting. This recommendation is consistent with the Council-approved Utilities Strategic Plan to provide superior financial performance to the City and invest in utilities infrastructure to deliver reliable service. There was, however, a request for clarification regarding compatibility between Automated Meter Reading (AMR) systems if the City wants to change vendors. There is generally "open architecture" between AMR hardware/software vendors and meter manufacturers, which would allow the City to move an existing AMR system to a different meter manufacturer, if the City changes meter vendors. However, each AMR vendor currently integrates their software with proprietary hardware (the "Encode, Receive, Transmit" device or ERT), which is attached to the meter, and formats and processes meter data in a unique fashion. There is utility industry pressure on AMR vendors to develop and install "open architecture" ERTs capable of being read by competing AMR software systems. Until this hardware modification is made, replacing AMR vendors may require that both the AMR software and its associated ERT hardware be replaced. Staff will continue to follow this issue which would be discussed in any AMR full-deployment recommendation to Council. CMR:213:06 Page 1 of 2 PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: Lucie Hirmina, Tom Auzenne ~A dm~~ Assistant City Manager ATTACHMENTS Attachment 1: CMR: 184:06 Attachment 2: Excerpt of Minutes from the Finance Committee meeting of April 18, 2006 CMR:213:06 Page 2 of 2 ATTACHMENT 1 City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL ATTENTION:FINANCE COMMITTEE FROM:CITY MANAGER DEPARTMENT: UTILITIES DATE: SUBJECT: APRIL 18, 2006 CMR: 184:06 RESOLUTION AMENDING VARIOUS RATE SCHEDULES RELATED TO RECOVERING COSTS THROUGH CONNECTION FEES FOR NEW METERS IN LARGE DEVELOPMENTS CAPABLE OF AUTOMATED METER READING, GAS VENT LINES, AND BOLLARD PROTECTION FOR METER SETS RECOMMENDATION Staff recommends that the City Council adopt the attached resolution to amend fees for Utility connection schedules E-15, G-5, and W-5. BACKGROUND The Utilities Department provides service connections to its distribution network in order to meet new customer’s 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 utility connection fee rate schedules. The connection fee schedules are developed to recover costs that the Utilities Department incurs to provide installation and connection services to new and existing customers. In cases where new types of equipment or services are introduced, new fees must be created if they are not included in current utility rate schedules. The Utilities Department is introducing new fees for the installation of automated meter reading equipment for water and gas meters in large developments, as well as bollards and vent lines to provide better gas meter safety. In addition, clarification has been made to language in the current electric connection fee schedule, as it is somewhat vague and subject to incorrect interpretation. CMR:!84:06 Page 1 of 3 DISCUSSION Gas Safetw Features (Bollards and Vent lines) Gas meter sets have regulators that vent to atmosphere in case of overpressure situations. The Utilities Department needs to install a regulator vent line if the gas regulator location does not meet the WGW Utilities Standards (e.g., the regulator is too close to where gas can accumulate and become a hazard, such as a window, electric panel, etc). The Utilities Department also requires steel bollards be installed when the gas meter is in danger of vehicular damage. These charges have been added to Schedule G-5 to allow the utility to recover its cost of installation in a timely manner. Automated Meter Reading The City of Palo Alto initiated a pilot program for Automatic Meter Reading (AMR) in 2005 (CMR 187:05). The Utilities Department either purchased meters with factory-installed AMR "Encoder Receiver Transmitters" (ERTs) or retrofitted the ERTs in the field. These installations were put in service at meter locations that are time consuming to read, hard to access, frequently read, hazardous to read, in remote locations, and/or in sites with large numbers of meters. If the City should decide to deploy AMR in the future, any non-ERT equipped meters will have to be retrofitted in the field or replaced with new meters containing ERTs. In order to avoid having to retrofit or replace non-ERT meters in the future for new, large developments (30 units or more) and having to recover those costs in future rates, the Utilities Department is proposing to require large developments to have meters with factory-installed AMR- ERTs. While these meters can be read by the current, manual meter reading methodology used in the field, their fifteen-year battery life allows them to be used in future AMR applications. Until the test period is over and a full cost-effectiveness analysis for Automated Meter Reading is completed, the Utilities Department is not recommending purchasing all future replacement meters with ERT-equipped replacements. Electric Connection Fees Language regarding a one-time waiver of connection fees when connecting services during the construction of an underground district has been clarified. Previous wording could have been interpreted to give a permanent fee exemption for service connections within established underground districts. In addition, language was introduced clarifying that connection fees will only be charged on new overhead system services or upgrades exceeding 200 amperes. For simple disconnects and reconnects of services 200 amperes or less, the cost to perform this service is much less than the established fee for new services that involve more staff time. In this case, charging the fee can discourage customer replacement of obsolete service equipment and contribute to the customer/contractor attempting to make the live connections themselves without calling City staff. CMR: 184:06 Page 2 of 3 RESOURCE IMPACT The estimated increase in annual connection fee revenues is approximately $20,000 and $10,000 for the Gas and Water Funds, respectively. Implementing these charges will allow for meter reading staff to be better utilized and will avoid the need for additional staff increases. The language changes to schedule E-15 are meant to forestall possible future issues and do not have a financial impact. POLICY IMPLICATIONS These recommendations do not represent a change in current City policies. ENVIRONMENTAL REVIEW The adoption of the resolution does not constitute a project under the California Environmental Air Quality Act; therefore, no environmental assessment is required. PREPARED BY:Tom Auzenne, Roger Cwiak, Roland Ekstrand, Lucie Hirmina, Tomm Marshall, Sam Zuccaro DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: Resolution CARL Director,Services HARRISON Assistant City Manager CMR: 184:06 Page 3 of 3 * * * NOT ATTACHMENT A YET APPROVED*** RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING UTILITY RATE SCHEDULES E-15,G-5, AND W-5 OF THE CITY OF PALO ALTO UTILITIES RATES AND CHARGES PERTAINING TO SERVICE CONNECTION FEES The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION i.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Schedule E-15 (Electric Service Connection Fees) of the Palo Alto Utilities Rates and Charges is hereby amended to read in accordance with Sheets E-15-1, E-15-2, E-15-3, E-15-4, E-15-5, and E-15-6, respectively, attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedule, as amended, shall become effective on July i, 2006. SECTION 2.Pursuant to Section 12.20.010 of the Palo Alto Municipa! Code, Schedule W-5 (Water Service Connection Fees) of the Palo Alto Utilities Rates and Charges is hereby amended to read in accordance with Sheets W-5-1, W-5-2, W-5-3, W-5-4, and W-5-5, respectively, attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedule, as amended, shall become effective on July i, 2006. SECTION 3.Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Schedule G-5 (Gas Service Connection Fees) of the Palo Alto Utilities Rates and Charges is hereby amended to read in accordance with Sheets G-5-1, G-5-2, G-5-3, and G-5-4, respectively, attached hereto and incorporated herein by reference. The foregoing Utility Rate Schedule, as amended, shall become effective on July i, 2006. SECTION 4.The Council finds that the revenue derived from the authorized adjustments of the several electric 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. // // // 060317 cs 0072690 ***NOT YET APPROVED** * SECTION 5. resolution doesthis California Environmental Quality Act, California Resources Code section 21080, subdivision (b) (8). INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: The Council finds that the adoption of not constitute a project under the Public City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Utilities Director of Administrative Services 060317 cs 0072690 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 ................................................................ 2.SERVICE CONNECTION CHARGES: $103.00 Category_ 1 - Domestic Water Service Size Amount 1-inch connection ................................................................................................... 1-1/2 inch connection ................................................................................................... 2-inch connection ................................................................................................... 4-inch connection ................................................................................................... 6-inch connection ................................................................................................... Category_ 2 - Fire Service Size 4-inch connection 6-inch connection 8-inch connection $3,648.00 4,226.00 4,715.00 6,975.00 7,776.00 Amount $6,288.00 7,044.00 7,790.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-1 dated 7-1-2005 CITY OF PALO ALTO UTILITIES Effective 7-1-2006 Sheet No. W-5-1 WATER SERVICE CONNECTION FEES Categorg 3 - Additional Domestic or Irrigation Services UTILITY RATE SCHEDULE W-5 (Continued) For service installations connecting to a pre-existing, larger service. 1-inch connection 1-1/2 inch connection 2-inch connection 4-inch connection Category_ 4 - Combination Domestic Water Service and Fire Service $1,369.00 1,652.00 1,740.00 4,011.00 For requests of combination domestic and fire water services, two service connection charges will apply: the charge for connection of a fire service and the charge for domestic service installation connection to a larger service. Category_ 5 - 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: 5/8 Inch x 3/4 Inch .................................................................................................................$63.00 1 Inch ..................................................................................................................................151.00 1 ½ Inch ..................................................................................................................................396.00 2 Inch ..................................................................................................................................500.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-2 dated 7-1-2005 Effective 7-1-2006 Sheet No. W-5-2 WATER SER~CE CONNECTION FEES UTILITY RATE SCHEDULE W-5 (Continued) 3 Inch ...............................................................................................................................2,272.00 4 Inch ...............................................................................................................................3,880.00 6 Inch ...............................................................................................................................4,901.00 AM~ Encoder Receiver Transmitter .........................................................................................100.00 4. ADDITIONAL METERS ON CONNECTION: With new connection .......................................................................................................$298.00 On existing connection .........................................................................................................725.00 RELOCATION OF FACILITIES: 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. 6.CAPACITY FEES: Domestic: 5/8 Inch x 3/4 Inch ............................................................................................................$1,200.00 1 Inch ...............................................................................................................................2,250.00 1 ½ Inch ...............................................................................................................................4,500.00 2 Inch ...............................................................................................................................9,000.00 3 Inch ......................................................................By estimate at $30~U ($66,750 at capacity) 4 Inch ....................................................................By estimate at $30/FU ($176,333 at capacity) 6 Inch ....................................................................By estimate at $30/FU ($339,667 at capacity) Note: FU is fixture unit (1 FU=15gpd) Fire Service: 4 Inch .............................................................................................................................$8,250.00 6 Inch ...........................................................................................................................$19,970.00 8 Inch ...........................................................................................................................$36,300.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-3 dated 7-1-2005 Effective 7-1-2006 Sheet No. W-5-3 WATER SER~CE CONNECTION FEES UTILITY RATE SCHEDULE W-5 (Continued) If a customer is upgrading the capacity of an existing service, then the capacity charge will be the difference between the new service size and the existing service size. C. OTHER CONDITIONS 1.SERVICE CHARGES: (A)Additional Service connections are available with payment of additional service connection charge as shown in Section B. 03)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 or load will be charged as a new service 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 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. 3. EXCEPTIONS: (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. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-4 dated 7-1-2005 Effective 7-1-2006 Sheet No. W-5-4 WATER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE W-5 (Continued) (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 ............................................................................................................................$567.00 2.ABANDONMENT: (A) Small service less than 2 Inch .......................................................................................$882.00 (B) Large service more than 2 Inch ....................................................................................1,281.00 3.METER INSTALLATION: Charges for meter installations by third parties, i.e. contractors, homeowners, etc. 5/8 Inch to 2 Inch ....................................................................................................................$76.00 3 Inch to 6 Inch .......................................................................................................................228.00 4. FIRE HYDRANT: (A) Install New Hydrant without Lateral .........................................................................$2,621.50 (B) Install New Hydrant with Lateral ................................................................................9,061.83 (C) Relocation behind curb (up to 5 feet) .......................................................i ..................3,946.16 Relocations more than 5 feet will require a New Lateral and the existing Lateral will be disconnected and abandoned at the main. 5. OTHER FEES:Per Hour The following fees wilt apply to utility work performed by outside contractors: (A) Engineering Fee ..............................................................................................................$86.00 (B) Utility Inspection Fee ........................................................................................................83.00 {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. W-5-5 dated 7-1-2005 Effective 7-1-2006 Sheet No. W-5-5 GAS SER~CE CONNECTION FEES UTILITY RATE SCHEDULE G-5 go TERRITORY: Inside the incorporated limits of the City of Palo Alto and on land owned or leased by the City of Palo Alto. 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: Charge per lineal foot ............................................................................$86.00/ft. 2. CONNECTION CHARGE FOR SERVICE INSTALLED ON EXISTING MAIN: Size 1-inch connection ...............................................................................................................$2,562.00 2-inch connection .................................................................................................................3,583.00 Above 2-inch connection .........................................................................................Utility Estimate Excess Length Fee: An additional charge ($18.00/foot for a 1-inch connection and $20.00/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: 175-400 CFH Rotary-Residential ........................................................................................$167.00 675 CFH Rotary .....................................................................................................................474.00 675 CFH Rotary- Curb Installation ........................................................................................785.00 1000-1500 CFH Rotary-Commercial ..................................................................................1,156.00 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.G-5-1 dated 7-1-2005 Effective 7-1-2006 Sheet No. G-5-1 GAS SERVICE CONNECTION FEES UTILITY RATE SCHEDULE G-5 (Continued) 2000 CFH Rotary-Commercial ............................................................................................1,500.00 3000 CFH Rotary-Commercial ............................................................................................1,766.00 5000 CFH Rotary-Commercial ............................................................................................2,172.00 7000 CFH Rotary-Commercial ............................................................................................2,441.00 11000 CFH Rotary-Commercial ..........................................................................................3,116.00 16000 CFH Rotary-Commercial ..........................................................................................3,766.00 Electronic Volume Corrector System ..................................................................................5,378.00 AMR Encoder Receiver Transmitter- diaphra~.~n meter .................................................................75.00 AMR Encoder Receiver Transmitter-rotary meter ......................................................................120.00 Vent line for gas regulator ...............................................................................100.00 Bollard (to protect gas meter) installation Fee .............................................................................150.00 Other Meter Sizes ....................................................................................................Utility Estimate ADDITIONAL METERS ON CONNECTION: (Applies to small meters up to 400 SCFH)Per Meter With new connection ..............................................................................................................$80.00 On existing metered connection .............................................................................................165.00 Charges for meters above 400 SCFH, will be based on the Utility’s estimate. SERVICE RELOCATION: Service riser relocation .........................................................................................................$752.00 Service riser relocations will only be performed on one inch (1") and larger polyethyleneXp_~ 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 l"pe pipe ............................................................$540.00 Curb Meter- Riser relocation on same alignment of existing service .....................................877.00 Curb Meter- New service from main to house ....................................................................1,280.00 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 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.G-5-2 dated 7-1-2005 Effective 7-1-2006 Sheet No. G-5-2 GAS SERVICE CONNECTION FEES UTILITY RATE SCHEDULE G-5 (Continued) C. OTHER CONDITIONS: 1. SERVICE CHARGES: (A)Additional service connections are available with payment of additional service connection charges shown in Section B. 03)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) (B) 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. 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 defined in the Utility’s rules and Regulations. CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No. G-5-3 dated 7-1-2005 Effective 7-1-2006 Sheet No. G-5-3 GAS SERVICE CONNECTION FEES 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. D. OTHER SERVICE CHARGES: 1. OTHER SERVICE FEES: The following fees will apply to utility work performed by outside contractors: (A)Engineering Service Fee ........................................................................................$86.00/hr (B)Inspection Service Fee ...........................................................................................$83.00/hr CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No.G-5-4 dated 7-1-2005 Effective 7-1-2006 Sheet No. G-5-4 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDLrLE E-15 Ao APPLICABILITY: This schedule applies to all connections, expansions, and upgrades to the City’s electric distribution system except those that 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. C. ADVANCE ENGINEERING FEES Advance 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. D. 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. E. SUMMARY OF FEES: The following schedule is for summary purposes. Section F herein describes the specific fee and conditions in detail. 1. UNDERGROUND SYSTEMS: (A) Service Connections Which Do Not Require an Estimate Service Connection Fees (1) Residential .....................................................................................................$410 (2) Residential: Rear Easement .............................................................................$670 (3) Multi-Family/Commercial/Industrial 400A or Less ......................................$670 (4) Multi-Family/CommercialAndustrial Greater Than 400A .................By Estimate CITY OF PALO ALTO UTILITIES Issued by the City Council Supercedes Sheet No. E-15-1 dated 7-1-2005 Effective 7-1-2006 Sheet No.E-15-1 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 (Continued) (B) Service Connections That Require Estimates Advance Engineering Fees (1) Residential ....................................................................................................$300 (2) Multi-Family/Commercial/Industrial 400A or Less ........................................$600 (3) Multi-Family/Commercial!Industrial Greater Than 400A .................By Estimate On-Site (1) (2) (3) Distribution System Fees Residential ....................................................................................................N/A Multi-Family/Commercial/Industrial 400A or Less ...........................By Estimate Multi-Family/Commercial/Industrial Greater Than 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 2. 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 Colmection Fees (1) Residential ....................................................................................................$580 (2) Multi-Family/Commercial/Industrial 400A or Less ......................................$840 (3) Multi-Family/Commercial!Industrial Greater Than 400A .................By Estimate 3. TEMPORARY SERVICES: Temporary service charges 200A maximum, 250 V maximum, 3-wire services 100’in length ~Mtt-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 ....................................................................................................$790 (2) Multi-Family/Commercial/Industrial 400A or Less ...........................By Estimate (3) Multi-Family/Commercial/Industrial Greater Than 400A .................By Estimate CITY OF PALO ALTO UTILITIES Issued by the City Council Supercedes Sheet No. E-15-2 dated 7-1-2005 Effective 7-1-2006 Sheet No.E-15-2 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDI~E E-15 (Continued) FEES: Underground Service Connection Fees (1) Residential ....................................................................................................$630 (2) Multi-Family/Commercial/Industrial 400A or Less ...........................By Estimate (3) Multi-Family/Commercia!/Industrial Greater Than 400A .................By Estimate 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) Service Connection Fees: Where the City connects any Customer to the electrical distribution system, a service connection fee shall be charged. A one-time waiver of this fee is granted for services connected during the construction of an underground conversion district. (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 maximum, 200 ampere maximum service .............................. $410 (b) For any connection requiring greater capacity the fee shall be the estimate of the installation cost or $410 whichever is greater. (c) For a 250 volt maximum, 200 ampere max service from a rear easement $670 (d) For any connection requiring greater capacity the fee shall be the estimate of the installation cost or $670, whichever is greater. (2) CommerciaVindustrial These fees apply to commercial, industrial, multi-family residential services. (a) For a 250 volt maximum, 400 ampere maximum service .............................. $670 (b) For any connection requiring greater capacity, the fee shall be the estimate of the installation costs or $670, whichever is greater. CITY OF PALO ALTO UTILITIES Issued by the City Council Supercedes Sheet No. E-15-3 dated 7-1-2005 Effective 7-1-2006 Sheet No.E-15-3 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E- 15 (Continued) (B) 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 sub-division or other development, an on-site distribution system fee shall be charged. The fee shall be the estimate of the installation costs. (C) 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 sub-division 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 Connection fees shall apply for all new services or for service up~ades exceeding 200 amperes. 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 finding that an underground service is not feasible. Replacement of existing overhead services with new overhead services will be allowed so 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 other, whichever is greater. Replacement of 250 volt, 200 ampere maximum, 3-wire overhead residential service drops to existing structures will be done by the City at no cost to the customer providin~ such a replacement does not require relocation of the comaection at the pole or mid-spma, does not require relocation at the house by more than 10 feet, and does not exceed 100 feet in length. (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 .......................................................$580 CITY OF PALO ALTO UTILITIES Issued by the City Council Supercedes Sheet No. E-15-4 dated 7-1-2005 Effective 7-1-2006 Sheet No.E-15-4 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E-15 (Continued) (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 ...................................................$840 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. 3. TEMPORARY SERVICE 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 system areas. The City will supply: overhead conductors and meter for overhead temporary services; and meter only for underground temporary services. The Citywill 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 ...............................................................$790 (2)The fees for a temporary service of greater length and capacity or voltage shall be the estimate of the installation and removal costs or $790, whichever is greater. CITY OF PALOALTO UTILITIES Issued bythe City Council Supercedes Sheet No. E-15-5 dated 7-1-2005 Effective 7-1-2006 Sheet No.E-15-5 ELECTRIC SERVICE CONNECTION FEES UTILITY RATE SCHEDULE E- 15 (Continued) (B)Underground Temporary Service Fees: (1) NOTES: (2) (3) For a 250 volt, 200 ampere, 3-wire maximum service, If a service box is available at the property ....................................................$630 Ifa service box is not 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 shal! be the estimate of the installation or removal costs or $630, whichever is greater. These fees apply to all vacant land except where the fees are recorded as previously paid. 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 Supercedes Sheet No. E-15-6 dated 7-1-2005 Effective 7-1-2006 Sheet No.E-15-6 ATTACHMENT 2 Excerpt from Finance Committee Meetinq of April 18, 2006 e Resolution Amending Various Rate Schedules Related to Recovering Costs through Connection Fees for new Meters in Large Developments Capable of Automated Meter Reading, Gas Vent Lines, and Bollard Protection for Meter Sets Administrative Services Director Carl Yeats introduced Sam Zuccaro, Interim Electric Engineering Manager, to answer any questions on the item. The primary purpose for the change is that any new large developments would be fitted with Automated Meter Reading (AMR) devices when they are built out rather than going back and retrofitting. Interim Electric Engineering Manager, Sam Zuccaro, added the fee is nominal for meters that are more difficult to retrofit. It makes sense to include the extra costs up front. There is a high degree of certainty the AMR project will be successful and, therefore, it makes sense to install them in the type of projects that fall within the purview of the AMR pilot project. Council Member Beecham added the AMR technology is generic and, therefore, the meters can be purchased from any manufacturer. Mr. Yeats agreed and mentioned the fee structure is also being changed for the "bollards" that are u-shaped pipes that go over meters. Council Member Mossar questioned the transition plan if the City decides to convert to AMRs throughout the City. Mr. Zuccaro said at this point it is still a pilot program and there isn’t a transition plan. Once the pilot program is complete, staff would return to Council with a transition plan. Council Member Mossar confirmed there would be a period of time when both technologies would be in use. Mr. Yeats agreed. Chair Kishimoto questioned if the various connections in the rate schedule are tiered in terms of capacity or just in terms of recovering the costs. Mr. Yeats said the fee is only for the connection and is not related to the amount of water, just the size of the meter. Chair Kishimoto asked if there is a separate capacity fee to discourage large users of water. Mr. Yeats explained that under Proposition 218, the City is able to charge only for metered water sales, which means there can’t be a flat capacity fee, a standby fee, or a baseline charge. Chair Kishimoto questioned if there was a policy to discourage high water capacity, when one house is sized for a large amount of water usage. Mr. Yeats stated he would check on this issue, but believes there may be tiers in service based on the size of the meter. A large meter user would be billed more than a small meter user, but they are not related to consumption. Council Member Beecham stated there is no set capacity charge, but there is a charge for the metering, the piping, etc. Council Member Mossar said during the drought of the 1980’s, the City implemented a type of commodity pricing where people paid more for using over a certain amount of water. Mr. Yeats said Proposition 218 requires a proportional charge based upon use. As water prices are currently increasing, there is the realization that no methodology is in place to encourage savings or cut back on water usage. Staff is studying how to legally change the rate structure for water usage. Council Member Klein questioned the statement that all meters are generic, as well as gas and electric meters. Mr. Yeats clarified that the AMR technology would fit all the meters that are installed. Council Member Klein stated therefore there wouldn’t be a problem with using any manufacturer. Mr. Zuccaro said he was not certain, but it would come out in the trial program and the manufacturer would be evaluated. He wasn’t certain if other manufacturers are being tried. Council Member Klein said if we are asking manufacturers to do certain things and it turns out we need a different manufacturer, there is a problem. Chair Kishimoto asked for a response to Council Member Klein’s concern before the item goes back to Council. Mr. Yeats confirmed they would answer the question for all metering technology. Council Member Beecham stated normally there are industry standards that every manufacturer meets. MOTION-" Council Member Beecham moved, seconded by Klein, that the City Council adopt the resolution to amend fees for Utility connection schedules E-15, G-5, and W-5 MOTION PASSED 4-0.