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HomeMy WebLinkAbout9-3 Attachment - JP Pole attachment fee resolutionR e so lu t io n 2 0 1 5 -0 3 1 R ES O L U TIO N No . 2015 - 03 E S TABL IS HI N G FEE S F O R THI RD P AR T Y AT T AC H M E NTS TO P OL ES OW NE D B Y TH E TRU CK EE D ON NE R P U D W H E R E A S , o n O c to b e r 8 , 2 0 1 1 , t h e g o v e r n o r s ig n e d A B 1 0 2 7, w h i c h a d de d S e c ti o n s 9 5 1 0 -95 1 9 to th e P u bli c U t ili ti e s C o d e A B 1 0 2 7 w h i c h r e q u ir e s lo c al p u b li cl y o w n e d u tiliti e s to m a k e a p p r op ri a t e sp a c e a n d c a p a city o n a n d i n th o s e s tru c tu r e s to thi r d p a r ty s e r v i ce p r o v id e r s on a n o n d i s c ri m i n a to r y b a sis ; a n d W H E R E A S , A B 1 0 2 7 a l l o w s p u b lic l y o w n e d u t ili ti e s to r e c o v e r th e c o s t s o f p r o vid in g s u c h s p a c e an d c a p a c ity ; a n d W H E R E A S , T r u c k e e D o n n e r P U D l e a s e s a v a i l a bl e s p a c e o n i ts el e c tr i c di s tri b u tio n p o l e s t o c o m mu n i c a ti o n s p ro vi d e r s u n d e r l o n g -te r m a g r e e m e n t s ; a n d W H E R E A S , A B 1 0 2 7 , a s i t a ppl ie s t o th e T ru c k e e D o n n e r P U D , r eq u i r e s th a t th e fe e s c h a r g e d b y th e T r u c k e e D o n n e r P U D fo r p o l e a tta ch m e n ts b e b a s e d o n T ru c k e e D o n n e r P U D ’s “c o s t o f o w n e r s h i p ,” a s t h a t t e r m i s d e fi n e d in A B 1 0 2 7 ; an d W H E R E A S , A B 1 0 2 7 s t a te s th a t th e p o l e a t ta c h m e n t f e e s a n d s e r v i c e c o n d i ti o n s d e t e r m i n e d p u r s u a n t to A B 1 0 2 7 s h a ll n o t a ffe c t p o l e a t t a c h me n t a g r e e m e n t s e xe c u te d p r io r to J a n u a r y 1 , 20 1 2 ; an d W H E R E A S , A B 1 0 2 7 s h a ll n o t p ro h i bi t a l o c al p u b l i cl y o w n e d el e c tr i c u ti li ty fr o m r e q ui ri n g a o n e -ti me f e e t o p r o c e s s a r e q u e st f o r a tta ch me n t, i f t h e on e -ti me fe e d o e s n o t e x c e e d th e a c tu a l c o s t of p r o ce s si n g the re q u e s t; a n d W H E R E A S , A B 1 0 2 7 s ta t e s th a t a jo i n tl y o w n e d p ol e i s no t i n cl u d e d w i t h i n th e r e q ui r e m e n ts o f t h i s s e c ti o n , i f a jo i n t o w n e r o th e r th a t th e l o c a l p u bli cl y o w n e d e l e c tri c u tilit y h a s co n t r o l o f a c c e s s to the s p a ce tha t w o u l d b e u s e d b y th e c o m mu n i c a tio n s s e r v i ce p r o v id e r ; a n d W H E R E A S , A B 1 0 2 7 s t a te s th a t a l o c al p u b li cl y o w n e d e l e c tri c u ti li t y ma y r e q u ir e a n a d d it io n a l o ne -ti m e c h a r g e e q u al to th re e y e a r s o f th e an n u a l fee d e s c ri be d i n A B 1 0 2 7 , fo r a tta c h me n t s r e a s o n a b l y s h o w n to h a v e b e e n w i t h o u t au th o ri z ati o n th a t ha s b e e n d i s c o v e r e d o n o r a ft e r J a n u a r y 2 0 1 2 ; a n d R e so lu t io n 2 0 1 5 -0 3 2 W H E R E A S , T r u c k e e D o n n er P U D B o a r d m e m o , w h i c h i n clu d e d d i s cu s si o n to e s ta bli s h th e T ru c k e e D o n n e r P U D ’s v a ri o u s pol e a tta c h me n t fe e s i n a c c o r d a n c e w i th th e r e q ui r e m e n ts o f A B 1 0 2 7 , w a s r e v i e w e d a n d c o n s i d e r e d b y t h e D is tri c t a t i ts r e g u la rl y s c h e d u l e d pu bli c m e e ti n g o n Ja n u ar y 2 1 , 2 0 15 ; a n d W H E R E A S , i n c o n for m a n c e w i th A B 1 0 2 7 , th e d a t e o f t hi s R e s olu ti o n i s M a r c h 1 8 2 0 1 5 , wh i c h i s m o r e th a n 3 0 d a y s a fte r th e p u b li c m e e t i n g r e fe re n c e d a b o v e , a n d th e e ff e c ti v e d a t e o f th e fe e s a d o p te d b y t h i s R e s o l u ti on i s M a y 1 7 , 2 0 1 5 , w h i c h i s 6 0 d a y s a ft e r th e d a te o f thi s R e so l u ti o n . N O W T H E R E F O R E , B E IT F U R T H E R R E S O L V E D B Y T H E T R U C K E E D O N N E R P U D A S F O L L O W S : 1 . A n a n n u a l fe e o f $1 9 p e r fo o t o f p ol e att a c h me n t a s d e s c r i b e d i n t h e M a r ch 1 8 , 2 0 1 4 s ta ff r e p o r t, a c o p y o f w h i c h i s a t ta ch e d h e re t o a s E xh i b it “A ” i s h e r e b y e s ta bl i sh e d ; a n d 2 . A o n e -ti m e fe e to p r o c e s s a r e q u e s t f o r n e w a t ta c h me n ts b a s e d o n a c tu a l c o s t s o f $1 1 0 p e r po l e a t ta ch m e n t i s h e re b y e s t a b li sh e d ; a n d 3 . A p e n a l ty fo r a t ta c h m e n t s , r e a s o n a b l y s ho w n to h a v e b e en u n a u th o ri z e d a n d a r e d i s c o v e r e d o n o r a ft e r J a n u a r y 2 0 1 2 , o f t h r e e ti m e s th e a n n u a l a tta c h m e n t fe e p l u s th e on e -ti m e p r o c e s s i ng fe e o f $1 1 0 p er a t ta c h m e n t , i s h e r e b y e s t a b li s h e d ; a n d 4 . T h a t tru e a n d co r re c t c o p i e s o f thi s R e s ol u ti o n s h a ll be k e p t o n file i n t h e O ffi ce o f th e D i s tri c t, u n til fu r t h e r a m e n d e d o r r e p l a ce d , b e o p e n to p u b li c i n v e s ti g atio n a n d i n s p e ctio n d u ri n g t h e r eg ul a r bu si n e s s h ou r s o f s u c h o ffi c e s ; a n d 5 . C o n s ti tu ti o n ali t y , s e v e r a b ili ty . If a n y s e c ti o n , su b s e c ti o n , s e n ten c e , c la u s e , p hr a s e , o r w o r d o f th i s R e s o lu ti o n i s fo r a n y r e a s o n h e l d b y a c o u rt o f c o m p e te n t ju r i s d i cti o n t o be u n c on s ti tu ti o n a l o r i n v ali d fo r a n y r ea s o n , s u ch d e ci si o n sh all n o t a ff e c t th e v ali di ty o f th e r e m a i n i ng p o rtio n s o f th e R e s o l u ti o n . T h e T r u c k ee D o n n e r P U D , h e r e b y d e c la r e s th a t i t w o u l d ha v e p a ss e d thi s R e s ol u tio n a n d e a c h s e c ti o n , s u b s e c ti o n , s e n te n c e , c la u s e , p h r a s e , a n d wo r d th e r e o f , ir r e s p e c ti v e o f th e fa c t th a t a n y o n e or mo r e s e c t i o n (s), s u b s e c ti o n (s ), s e n te n c e(s ), cl a u s e (s ), p h r a s e(s ), o r w o r d (s ) be d e cl a r e d i n v ali d ; a n d 6 . E ffe c ti v e d a te . T h i s th e d a t e o f thi s R e s olu ti on i s M a r c h 1 8 , 20 1 5 , w h i c h i s mo r e th a n 3 0 d a y s a fte r t h e p u bli c m e e ti n g r ef e r e n c e d a b o v e , a n d th e e f fe c ti v e d a te o f th e fe e s ad o p t e d b y th i s R e s o lu ti o n i s M a y 17 , 2 0 1 5 , wh i ch i s 6 0 da y s a f t e r t h e d a t e o f th i s R e s o l u ti o n . R e so lu t io n 2 0 1 5 -0 3 3 P A SS E D A N D A D OP T E D b y th e Bo ard of D ire c to rs of D ire c to rs a t a m ee ting d u ly c a lle d a nd h eld w it h in th e D istrict on th e e igh te en th day of Ma rch 2 01 5 b y the fo llo w in g ro ll ca ll v o te: A YE S : N O E S : A B S TA IN : A B SE N T : T R U C K E E DO N N E R P UB LIC U TIL IT Y D IS T R IC T B y _____________________________________________ J o s ep h A . A gu e ra , V ice P re s ide nt of th e Bo a r d of D irec t o rs A T TE S T: ________________________________________ Mic h a el D . H o lley, C le rk o f t he B o a rd of D ire cto rs Truckee Donner PUD Annual Cost Space Occupied Net Pole Investment 85% Annual Cost of Ownership per Foot of Usable Space (13.5 ft)Per Foot Usable Space Total Number of Poles Annual Cost 1 $4,959,566 85%32.48% Per Foot 13.5 5,442 Space Occupied ft. = 1 Usable Space ft. =13.5 Annual Cost of Ownership Per Foot =$19 Net Pole Investment $4,959,566 $911 per pole with appurtenances Account 364 = $18,065,003 Account 108 Depr.=$13,105,438 Accum Def. Income Tax = $0.00 Total Number of Poles from Account 364 units 5,442 An adjustment to a utility's net pole investment 0.85 $775 per pole without appurtenances (15% for electric utilities) is necessary to eliminate the investment in crossarms and other non-pole related items. Carrying Charge Rate 32.48% Administrative Element 5.50% Total General and Admin. From 12/31/13 Fin. Report $2,339,169 Gross Plant $61,443,787 Accumulated Depr. (Acct 108)$18,908,019 Accumulated Deferred Taxes - Maintenance Element 1.95% Account 593 From 12/31/13 Financial Report $209,980 Account 364 Poles $18,065,003 Account 365 OH Conductors & Devices $6,773,310 Account 369 Services $2,075,367 Accumulated Depreciation of Account 364 $13,105,438 Accumulated Depreciation of Account 365 $2,360,216 Accumulated Depreciation of Account 369 $667,109 Accumulated Deferred Income Tax $0 Depreciation Element 11.04% Gross Pole Investment (Account 364)$18,065,003 Net Pole Investment (Account 364-Account 108)$4,959,566 Depreciation Rate for Gross Pole Inventory *3% * 33 Year Life from Accounting Cost of Borrowing 4.00% Required Rate of Return 10.00% CPUC Formula multiplied by a carrying charge. x x x= =x x x Carrying Charge Rate The CPUC formula is really just a version of the FCC formula. The 7.4% of the annual cost of ownership for the pole comes from Space Occupied divided by the Usable Space on a pole or 1/13.5 feet. The annual cost of the pole could be defined as the Net Pole Investment divided by number of poles