HomeMy WebLinkAboutFinal-Staff-Report-ID-3133_Amendments-to-Util-Rate-Schedule-E-16
City of Palo Alto (ID # 3133)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 10/15/2012
City of Palo Alto Page 1
Summary Title: Amendments to Utility Rate Schedule E-16
Title: Adoption of Resolution Relating to Amendments to Utility Rate
Schedule E-16 (Unmetered Electric Service)
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the City Council adopt a resolution approving an amended Utility Rate
Schedule E-16 (Unmetered Electric Service), as attached.
Executive Summary
Utility Rate Schedules are updated as required to: comply with changes in laws and regulations
governing utilities operations; align utilities revenues with budgeted expenses as part of the
annual budget process; add new provisions; delete outdated sections or schedules; update
language for clarity; reflect changes to practices and procedures; or recover increases in
operating costs.
Background
On July 25, 2011, Council reviewed CMR ID #1756 (Summary Title: Master License Agreement)
and adopted:
1. Resolution No. 9192 amending Utility Rate Schedule E-16 to create a new License Fee for
mounting communication equipment on utility poles, including distributed antenna
systems (“DAS”).
2. Resolution No. 9193 approving Master License Agreement (the “MLA”) and Exhibits for
third party access to and use of City-controlled spaces on utility poles and streetlight poles
and in conduits for the purpose of providing wireless communications facilities in Palo Alto.
City of Palo Alto Page 2
Discussion
When Resolutions No. 9192 and No. 9193 were adopted by Council, telecommunications law
relating to pole attachments was in a state of flux at the Federal and State level and further
changes were highly likely. At the State level, Assembly Bill 1027 (“AB 1027”) was pending
before the California Legislature. Subsequently, AB 1027 was enacted and went into effect on
January 1, 2012. AB 1027 places limitations on the City in dealing with parties wishing to attach
antennas to poles in regard to fees. The License Fee adopted in July 2011 in Utility Rate
Schedule E-16 for DAS attachments was $1,500 per pole per year.
After enactment of AB 1027, staff worked with the City Attorney’s office to recalculate the
annual License Fee for wireless facilities attachment to utility poles, effective January 1, 2012,
to be consistent with provisions of the law related to imposing attachment fees for wireless
facilities. Based on the recalculation of the License Fee for mounting communication
equipment including DAS on utility poles, the annual fee was revised from $1,500.00 per pole
per year to $270.00 per pole per year.
Staff also proposes amendments to Schedule E-16 to adjust fees for use of City-owned conduit
and utility pole attachments, other than DAS equipment. License Fees for exclusive and non-
exclusive electric conduit usage and License Fees for utility pole attachments based on usable
space on the pole are separate from the annual License Fee for mounting communication
equipment, including DAS on utility poles. These fees are intended to recover the City’s actual
or reasonable estimated costs for the installation and maintenance of these facilities. These
costs are based on a 42 year life for underground substructures and 35 year life for poles.
These fees were last updated in March 2009. The proposed changes reflect increases in labor,
materials, and equipment costs incurred by the City.
Resource Impact
The MLA represents an increased work load for Utilities. As required by law, staff will review
and administer the installation, inspection and billing associated with these wireless
communication facilities as additional priority work. The annual License Fees for DAS
attachments to be charged are contingent on the number of antennas that are attached by
wireless communications service providers. The various service and facilities-based providers
have applied for or are anticipated to apply for attachment to approximately 200 out of 6,000
poles in Palo Alto. Assuming all antenna attachments are processed, the approximate annual
revenues will be $54,000 ($270 x 200 poles).
The adoption of recommended changes to License Fees for electric conduit usage and usable
space for utility pole attachments, in addition to recommended changes to the one-time
Processing Fee for utility pole attachments will result in an increase in annual revenues of
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approximately $34,000. This increase of $34,000 in annual revenues is separate from the
projected annual revenues of $54,000 generated by the License Fee for mounting
communication equipment including DAS on utility poles.
Policy Implications
This recommendation does not represent a change to current City policies.
Environmental Review
These changes in Utility Rules and Regulations and Utility Rate Schedules are not subject to the
California Environmental Quality Act (CEQA), pursuant to California Public Resources Code
Section 21080(b)(8) and Title 14 of the California Code of Registration Section 15273(a)(1) and
(3).
Attachments:
Attachment A: Resolution Utilities Rate Schedule E-16 (PDF)
Attachment B: E-16 effective 10-16-12 (PDF)
*NOT YET APPROVED*
120926 dm 0073772
Resolution No._____
Resolution of the Council of the City of Palo Alto Amending
Utility Rate Schedule E-16 of the City of Palo Alto Utilities
Rates and Charges Pertaining to Electric Rates
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rate Schedule E-16 (Unmetered Electric Service) is hereby amended to read in
accordance with sheet E-16-1 through E-16-4, attached hereto and incorporated herein. The
foregoing Utility Rate Schedule, as amended, shall become effective October 16, 2012.
SECTION 2. The Council finds that the revenue derived from the authorized
adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section
2, of the Charter of the City of Palo Alto.
SECTION 3. 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:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Senior Assistant City Attorney City Manager
____________________________
Director of Utilities
____________________________
Director of Administrative Services
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 10-16-20127-26-2011
Supersedes Sheet No.E-16-3 dated 7-26-20117-01-2009 Sheet No. E-16- 1
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
A. APPLICABILITY:
This rate schedule is applicable under the terms and conditions of the City of Palo Alto
Utilities Department to Customers who contract with the City for unmetered electric
service for billboards, unmetered telephone services, telephone booths, railroad signals,
cathodic protection units, traffic cameras, wireless antenna and related equipment,
community antenna television and video systems, cable TV power supplies, and
automatic irrigation systems and also applies to other miscellaneous Electric Utility fees
to various public agencies and private entities.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and land owned or leased by the City.
C. NET MONTHLY BILL:
1. Customer Charge: $9.00 per month
2. Energy Charge:
(for all kWh supplied) using Electric Rate Schedule E2 plus all applicable riders
3. Minimum Charge:
Minimum monthly charge will be the Customer Charge.
D. DETERMINATION OF ENERGY REQUIREMENTS:
a. Initial Inventory
Customer shall enter into a contract for service under this Schedule and provide a written
inventory of all equipment at each of service requested, including the type and nameplate
rating for each piece of equipment. The billing energy for each point of service will be
determined by the Utilities Electric Engineering Division estimation of the kWh usage based
on the type, rating and quantity of the equipment provided by the Customer.
Monthly bill will be based on the following calculations:
1. Total Wattage.
2. Total Wattage times estimated annual operating hours as set in the contract equals
annual watt hours.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 10-16-20127-26-2011
Supersedes Sheet No.E-16-3 dated 7-26-20117-01-2009 Sheet No. E-16- 2
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
3. Annual watt hours divided by 1000 hours equals annual kilowatt hours (kWh)
4. Annual kWh divided by twelve (12) months equal monthly kWh.
5. Monthly kWh times current rate per kWh = monthly bill for each unmetered service
location or equipment.
b. Updating Inventory
Customer will update its inventory by informing the Utilities Electric Engineering Division
in writing of changes in type, rating and/or quantity of equipment as such changes occur, and
billings will be adjusted accordingly. Upon Utilities Electric Engineering Division request,
but no later than the one year anniversary of the date on which Customer first takes service,
Customer shall provide an updated inventory of all equipment at each point of service.
c. Test Metering
The Utilities Electric Engineering Division may, at its discretion, test meter the load at
various types and ratings of the Customer’s equipment to the extent necessary to verify the
estimated kWh usage used for billing purpose and, where dictated by such test metering,
Utilities Electric Engineering Division will make prospective adjustments in estimated usage
for subsequent billing purposes; however, Utilities shall be under no obligation to test meter-
the load of Customer’s equipment. Utilities’ decision not to test meter the load of Customer’s
equipment shall not release Customer from the obligation to provide to Utilities Electric
Engineering Division, and to update, annually as provided in section b, an accurate inventory
of the types, rating and quantities of equipment upon which billing is based.
d. Inspection
The Utilities Electric Engineering Division shall endeavor to inspect the equipment at each
point of service annually as close to the anniversary date of the contract as is practical, and
make prospective adjustments in billing as indicated by such inspections; however, Utilities
shall be under no obligation to conduct such inspections for the purpose of determining
accuracy of billing or otherwise. Utilities decisions not to conduct such inspections shall not
release Customer from the obligation to provide to Utilities Electric Engineering Division,
and to update, an accurate inventory of the types, rating and quantities of equipment upon
which billing is based.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 10-16-20127-26-2011
Supersedes Sheet No.E-16-3 dated 7-26-20117-01-2009 Sheet No. E-16- 3
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
e. Billing for Service
As the service described in this schedule is unmetered, Customer agrees to pay amounts
billed in accordance with the current inventory, regardless of whether any of the installations
of the Customer’s equipment were electrically operable during the period in question and
regardless of the cause of such equipment failure to operate.
E. MISCELLANEOUS RATES:
Service Description Rate *
1. Traffic Signal maintenance and energy costs
(A) Controller $522.26 ea
(B) 8" Lamp (LED) $1.85 ea
(C) 12" & PVH Lamp (LED) $2.16 ea
(D) Pedestrian Head (LED) $5.58 ea
(E) Vehicle, System and
Bike Sensor Loop $43.22 ea
2. License Fee for Electric Conduit Usage
(A) Exclusive use $1.941.40/ft/yr
(B) Non-Exclusive use $0.970.70/ft/yr
3. Processing Fee for Electric Conduit Usage Actual Cost
4. License Fee for Utility Pole Attachments
(A) 1 ft. of usable space $29.5924.41/pole/yr
(B) 2 ft. of usable space $32.3926.86/pole/yr
(C) 3 ft. of usable space $35.1829.32/pole/yr
(D) 4 ft. of usable space
$31.7737.98/pole/yr
5. Processing Fee for Utility Pole Attachments $54.0055.00/pole
6. License Fee for mounting communication equipment
including distributed antenna systems on utility poles
$1,500.00270.00/pole/yr
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 10-16-20127-26-2011
Supersedes Sheet No.E-16-3 dated 7-26-20117-01-2009 Sheet No. E-16- 4
* Rates are monthly unless otherwise indicated.
F. NOTES:
The fees set forth in Section E.1 through E.6, inclusive, are subject to adjustment annually in
accordance with fluctuations in the Consumer Price Index (CPI), if any. The base for computing
the adjustment is the Consumer Price Index for All Urban Consumers (CPI-U) for the San
Francisco-Oakland-San Jose MSA, which is published by the U.S. Department of Labor, Bureau
of Labor Statistics for the month of December of a base year, which falls within the year in which
a master license agreement is signed by the City and the licensee. The adjustment shall be
calculated, if there is an increase or decrease between December of a base year (when the rate(s)
is/are first applicable) and December of any subsequent base year.
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