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Home My WebLink About0233.094April 20, 1994 TaP. HOnORABLE CITY COUNCIL Palo Alto, California Attention: Finance committee Nembers of the Council: Report in :Brief \ .',', Buntin 94 -95 This report recommends Council approval of the attached Resolution revising Util it)' connection fees effective July 1, 1994. It provides information on the increased cost of ma;king utility service connections for new customers in recent year's. The Utilities Department provides service connections to its diatribution network, in qrder to meet a customer's needs for water. wastewater, electric, and/or gas service. These connections are ~~de after the City inspects and approves all equipment installed by the customer (i.e. contractor) and after the applicant pays the required connection feeB as set forth in' the specific connection fee schedule. Connection fee revenues account for less than 1/100 of one percent of the total utilities budget for FY 1994-95. These connection fee schedules are intended to recover the (;osts that the Utilities Department incurs when providing faciJities to serve new customers. The cut'rent Connection Fee Schedules W-5, 0- 5. E-5. and S-5 became effective July 1992 and are based on a cost- CMR:233 :94 1 . , -,',. of-Bervice analysis performed at that time. Considering, the City's polic~' of full cost recovery, another Btndy has been completed .recently to compare the current connection fees with the actual costs incurred by the utl1ities Department. This study suggests tho need for revising some of these fees to reflect actual coste. A primary r.ea8on for the required increase in Water, Ga8~ and Wastewate:t:· connection fees is that the Utilities will begin on ,July 1, 1994, to pay fees to the Recycling Center for the disposal of di rt, concrete and construction material. Other factors cont.ributing to this requh-ed increase are the increase in the cost of. repaving trenches, equipment rental, and a 6 percent increase in labor cost over the past tt ... o yeal.-S since the last connection fees }'ate adjw3tment. In the Electric Utility's case, a review of actual costs reveals that the cost l.-ecovery for residential projects is about 74 percent lowel-than estimated_ In estimating the cost of underground construction for a new or existing singlf.! family eel-vice, the number of connections to the system was projected to be four or six propertie.9, Based on this assumption, the estimated cost of an underground project was divided by the projected number of future connections. However, t_he actual number of connections has generally not exceeded two properties. Therefore, staff recommends revising ·the residential single-family service connection fee from $800 to $1,120 or 40 percent, 'l'he specific fee increases range from 10 percent to' <10 percent. Despite the proposed increases, Palo Alto's connection fees compare fa.vorably wH_h fees charged in surrounding cities, ["'or example, the single family service connection fee in Palo Alto is 25 percent belo'.o1 the City of Santa Clara charge, which is $1,500. Attached is a table summarizing the existing fees, together wi th the proposed charges. CNR: 233: 94 2 Staff r-ecor.:.r...onds Council approval of the attached Resolution l:evi&ing Utility ,connection feel> effective July 1, 1994. R~ctfuIIy.aUbffl!ttod, ~0!--...:.-' LU(:18 IlIRNltlA lit i 11 t iN' Rat e /lnal l'ot E£t~~ 1 ector of -lities AttacnfMmt: Resolution R~te Schedules w-s, s-s~ G-5~ and E-S CMR:233:94 3 ', .. \ ,""'., 'J RBSOLUTION NO. n ,.:' RBSOLUTIOIi OF 'I1lB COUNCIL OF THECrn OF PAl» AVN> l\MBNDING UTI LIn RATS SCHHDULSS W-S, C-S, S-S AIID R·5 OF THE Clno~' PALO ALTO UTI.!,tTIBS RATBS AND CHARGBS PBRTAINING TO WATER, CAS, III\.STh"WATER AND ELECTRIC CONNBcrION FERS The Council of the City o( Palo Alto does her<:by RESOI;VE as follows: IDlcrlQ/Ll.. PUrsuarit to Section 12.20.010 of the Palo Alto Municipal Code, Schedule W·5 (Water Service Connection), Sche:dule G-S (Gas Service OonnectiQn) I Sch,edulo B· 5 (B'lectric Servico Connection) I and Schedule s-5 (WaBte\l'at.cl: $t:nvice Connection) of the Palo Alto Utilities. Rates and Chin"ges nl'-e hereby attended to re<td in accordance ~1th Sheets "ri'-S·'_ W·S·~# G·S·l~ Ii·5.l and s-5-1, attached hereto and incorpoi",Ued he-rein by ref~ronce. The foregoing Utility Rate Sclwdulcs, a(l ,;ur.ende.d. ahall b!:ico:1'.o effective July 1, 1994. ~1li.:rIQtl..2.. The Council finds that ttle revellue del"lve\! from the authorized adjustreents of the xcspcctivc '\.I,1.ter Ger,ice connection, gas sen'ice connection, ""dstc\o(,\tcr conn~ction. and electric connection fees shall be used only for the p".n.-poses set forth in Article VII, Section 2f of the Chartt!:r of. the Cily o[ Slalo Alto. S.BCTIOi'L.1. The Council finds that the adopt 10n of this resolution does not con8titute a project t;nder tho Cnlitol'nia Envirorut1ental Quality Act, CalifOl::nia Public Resources Code section 21080, subdivision (b) (8). INTRODUCBD AND PASSED: AYBS: NOES: ABSBNT: ABSTSN'J'lONS: ATTEST: APPROVBD: City Clerk APPROVED AS TO FORB: 9~211yn ooro,l.!S ", ! i I. , i L r-, f" .\ o A,TERRITORY: o WATeR SERVICE CONNECTION FEES UTlLlD' RATE SCHEDU~ Inside thelncorporaled lim~s of the City of Palo Aho and on land owned or leasad by th8 City of Palo Alto. B. FEES: All fees mUsl be paid prior 10 the scheduling of any conslruction. Depending on material availability and scheduling (:onstraints, utility service will be inslalled belween 30 end 45 deys follOwing receipt of full paymenl. 1. DISTAIBlfflON SYSTEM EXTENSION CHARGE Street frontage c1,argo per tool " ......... , .. "............. $70.00 2. SF-RVICE CONNECTION CHARGES: Category 1 -DQm~1eLS.~J;!! ·I·inch connoction .. , , ... , , ...... , ..... , ..... , .... , . , $1,820 1-1/2 inch connection ............. , , . , ... , , .... , ... , .... ,. 2,500 2-inch conMclion ... , ... , , , ... , , ........ , ............... , 2,800 4·inch connection, .. , ........... , . , ... , ... , , . , .. , . . 5,300 6·inch connection, , .... , ................ , ........ , .. , .... 5,900 8-lnchconnection .. " .. "." "'" .... ,., .. , .... ,. , ....... 6,900 Gategmy 2 -Fire Service 4-inch connection . , . . . . . . . . . . . . . . . . . . . . . . . . $4,100 6-inch connection ... , , . , , .. , .. , , .... , ... , .... , , .... 4,700 a·inch connection .. , , , , , , , , , .. , , ....... , ... , , ... , . , ... , ., 5,100 -----~----- C.ITY OF PALO ALTO UTILITIES Iss lJed by the City Council Supersedes Sheet No. W-5·1 dated 7-1-92 Effective 7-1-94 Sheet No W-S-l t· I r: . I \ WATER SERVICE CONNECTION FEES UTILIJY RATE SCHEDULE W·5 (Continued) ~IY 3 . Corntlination Domestic water Servi"" aod Eire Servi"" Thasa charges apply to the following combination of Water Service (IN.S.) Bnd Fire Service (F.S.): .sizJ! j'W.S . 1 112' W.S ~ ~ 4' 1'.$, $4,500 $4,800 $5,100 N/A 6' F.S. 5,000 5,300 $5,600 $6,9()0 B' F.s, 5,400 5,700 $5,900 $7,300 ~ry 4 -MastQJ: water Servi"" Approval by the Director of Utilities is required for a connection that servos domestic water service and fire proteCIion through a detector meter. The charge for master water service will be based 00 the engineering manager, wator-gas-wastewater's estimate of the total costs of all materials, labor and other costs incidental to the installation. For service connections of 4-inch through a-Inch sizes, the new owner must provide and inslall a concmte vauh wtth meter reading lid covers to house melers and other required control equipment in accordance wtth the Water Utility's speCifications, An approved backftow prevention device w~h bypass assemblies must be provided by Ownsr on all fire services, An exception may be made where only an automatic fire sprinkler system Is served, provided the sprinkler control equipment is w~hin ten feet of tile end of the stree! portion of the fire service. In this instance, a detector meter may be installed around the sprinkler syslem check valve. 3, ADDITIONAL METERS ON CONNECTION: Par Mater With newconneclion .' .. "." ..... ,",.", ..... ', ...... " $200 On existing connection .. , ' . , , , , ' ...... , , . , , , , ..... , ...... , 300 CITY OF PALO ALTO UTILITIES Issued by the City Council SupersedBS Sheet No, W·5·2 dated 7·1-92 Effective 7-1·94 Sheet No W-5-2 I I ) , ! . ! I . :'c>-'" : .. o A, TERRITORY: o QAS SERVICE CONNf:CTION FEES UTlL!JY RATE SCHEJlW.E.~ InsiOO tho Incorporated limHs 01 the City of palo AHo and on land owned or leased by the City 01 Palo Mo, 1;1. FEE$~ All fees must be paid p<i(){ to the scheduling of any construction, Oepending on material avs.!,lllilily pn<:l scheduling constraints, utility saNioe will be installed between 30 end 45 days following receipt 01 full payment. 1. DISTRIBUTION SYSTEM EXTENSION CHARGE: Stroot Irontage charge per foot . . . . . . . . . . . . . . . . . . . " $6O,OO/fi. 2. CONNECTION CHARGE FOR SERVICE INSTALLED ON EXISTING MAIN: Hnch COOIlOction ...... " ...... , ........ , ...... " .. , 1,720,00 2·1tlch conrnJction ............... , ....... , .. ,',..... 2,500.00 Ii,cess length Fee: An additional charge 01 $t3.00/foot l'Iill apply to an extension {/feater than forty (40} feet from the street property line to the gas meter location, measured along 8 ~ne perpendicular to the street property line. SeMce Location: Tne service line will be installed along the shortest, most practica', rouw. as dotenninell by lhe Utilities Departmont, from the gas rna in in the adjoining street, alley, lane road, or easement to tho nearest suHable meier location at the building or structure, Servloes requiring a connection greater than 2 inch shall be based on the Utility estimate. 3. ADDITIONAL MeIERS ON CONNECTION: Wrth new connection ... . , , . . . . . . , , ........ , . . . , ... . On existing metered connection ...... , ...... ,.,.,""',. CITY OF PALO ALTO UTILITIES Issued by Iho City Council SVperSOO8S Sheet No. G·S·I dated 7·1·92 _l, .. , .' , ~ ~ $ 50,00 t25,OO Effective 7-1-94 Sheet No G-S-l ...... -, __ .• l.-,,_, I I .:" . , ELECTRIC SERViCE CONNECTION FEES !.!.llLUYfiAJE SCH EPU lE E-5 A. APPLICABILITY: ThIs schCduJo app/'I&S to !1ft COMactiooS, expansions, and upgr ados to the City's electric distribut!ol1 system except lhose which S6fYa streollighting or tratrlC signals. B. TERRITORY: AlIIeiT\tOlY withi;> tho IIlCorpo<ated IlInits oJ tho City and land owned or klased by the City, C. PREPAYMENT OF FEES: N1 1000 mUSI be paid ~ to tha sche<luiing of any construction or oonnectiOlls to the C~y's elec!ric<ll distribulion syS1am. Cusiomer is responsiblo for Iha a~1u.aI oosts where an estimate I~ shown herOin. AdjUstments y;ill be made ~ aclual oo51s vary signirlCantly Irom estimated costs, O. SUMMARY 01' FEES: The fol'<lwit>g schad"", is for summai)' purposes, SectiOn E heroin describes thB specific fe9 and oonditioos In delail, 1. UNDERGROUND SYSTEMS: (Al Service Connecton Fee ResiQonUal • Single Family 200 ll/llPIlfe maximum ".', .... , ... " .... ,.', $1,120,00 Oth$t .•• , •... , .• , •..•.•.•.•... ,.,',.,' By Estimate Commercial/Industrial 200 &mpefo maximum ...........•............. $800.00 Other ...... '.' .... ' ........ , .. '., ...... By ESlimate (8) Qn.s~e Distribtrtion Syst~m Fee.· Und&rground Resldontial -Single Family ., .• , ............ , . .. By Estimate Commorciai!thdustlial ... , , ........ ' ...... , , " By Estimate (e) OH·s~a Disltibulion System Fea • Underground Residential. Slnglo Family Four loiS 01 loss ., ... ' ... , ............. ' .. By Estimate Other •............. ,......... Per Aule & Regulation 17 Commercial/lnduslrlal T(an~rormer on 101 ..... ,.,'..... Per Rule & Regulation 17 Other ." ..... , .... , ... ,.", ....... " ... By Estimate ---_. __ . __ ..... _._ ..... _-----_ .. CITY OF PALO ALTO UTlLI'fIES Issuac by the City Council Effective 7·1-94 Sheet No, 1'-5-1 , .'-:-~:iJ-T_~"-- , ~ ';::, ".'~"', .. "'/ ~;:.:,~~;:;';':".', -" . , ,,YO. 1\ . " . . '_ ~ '~':"':"'''~''.':':'''l'%-,?d~_~~~~-, ·~m:'~~~i~::~.t~:~~~~. : i o o WASTEWATER SERVICE CONNECTION FEES .\.!JJLlD' RATE SCHEDULE S·5 A. TERRITORY: Inside tI1e incorporated limas of tha cay of Palo Mo end Q(I land owned Ol leased by lila City of Palo Alto. B. FEES: All fess must be paid prior to the sc/leduling of any construction. D<>p&n<flll(J on ~Wial availabilay and scI1eduling constraints. utility service will be iflsta~ed between 00 and 45 days foflowing receipt of full payment 1. COLLECTION SYSTEM EXTENSION CHARGE: .$J!.el1LfJ:Q!iliI,~~,[gllS f~ Wastewater Service Areas 1 & 2 . . . . . . . . . . . . . . . . . . . . . . . .. S 00.00 Wastewater Service Areas 3 & 4 . . . . . . . . . . . . . . . . .. 100.00 2. SERVICE CONNECTION CHARGES: 4·inell connaction ...................................•... $3.200.00 a·inch connection ....................................... 3.8OCtoo Sewer laterals over 25 feet in length will be eIlarged lor t~~ addilional loot&1)6 81 a rate of $loo/IJl. Fl. for 4 inell connections and $104/Ln. Fl fQ( 6 inoh connoctions. SpeCial arrangements must be made to provide for the cost of 8 connection larger IlIao six·lnch. The cay wiil estimate the cost wl1iell will serve as the basls 10( a ctlstonml depos'~. Upon receipt of !his deposit the cay will install the connection end tM cuslO<nSr shall pay the aelual cost nel of the deposit. 3. RELOCATION OF FACILITIES: Approved relocation of services or other raCii~ieswill be done at the COS! of the parson requesting the relocation of facilities on services. Deposit 01 the estimated cost is required before work begins. CITY OF PALO ALTO UTILITIES IGsuad by the cay Council Supersedes Sheet No. S·5·1 dated 7·1·92 Effoctivo 7·1·94 Sheet No S '5-1 \'I ,