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HomeMy WebLinkAbout7 Public Hearing Electric Feesenda Item # PUBLIC HEARING To: Board of Directors From: Joe Horvath Date: May 16, 2018 Subject: Conduct a Public Hearing Related To Amending Electric Connection Fees and Consideration of Adopting Ordinance 2018-01 Amending Electric Connection Fees 1. WHY THIS MATTER IS BEFORE THE BOARD It is the Board's purview to conduct a Public Hearing and to approve District Ordinances, 2. HISTORY On March 7, 2018 a workshop was presented to the Board to discuss the existing Electric Connection Fee schedule and proposed fee adjustments based on an updated evaluation of the costs to provide services. Evaluation by District staff revealed that the costs to provide these services have increased substantially since previous updates. The last time these fees were revised was in 2008 with a small inflationary adjustment occurring in 2014. The Board directed staff to propose the fee increase over a period of time, and to include an escalation factor to account for inflation. On April 4, 2018 the Board set a public hearing at the May 16, 2018 meeting for the purpose of receiving public comment on the proposed adoption of adjustments to the Electric Connection Fee schedule. The public process has proceeded according to the following schedule: • March 7, 2018 - Workshop to discuss proposed adjustments to the Electric • Connection Fee Schedule; • April 7, 2018 - Set a Public Hearing at the May 16, 2018 Board meeting; • May 16, 2018 - Public Hearing (tonight); and • May 16, 2018 - Consideration of Adoption of an Ordinance amending the Electric Connection Fee Schedule (tonight) 3. NEW INFORMATION District staff met with representatives of the Contractors Association of Truckee Tahoe (GATT) to discuss the proposed changes to the electric connection fees and ways to mitigate the impact of the fee increase on the building community. District staff and GATT mutually agreed to propose the implementation of the fee increase in equal amounts spread over a 2-year period. The first increase is proposed to become effective on September 1, 2018 to allow customers to pay the existing fees through the current construction season. An inflation adjustment (IA) factor based on the Engineering News -Record 20-City Construction Cost Index is also proposed to be applied starting on September 1, 2019 and subsequent years. Existing and proposed fees are shown the attached District Ordinance 2018-01 and in the following table: Size and Tvpe of Service Single Phase, 120/240 Service — 200 amp 1) Permanent connection to structure 2) Temporary connection and permament transfer Single Phase, 120/240 Service —400 amp 1) Permanent connection to structure 2) Temporary connection and permament transfer Three phase, 208v, 240v or 480v service 1) Permanent connection to structure 2) Temporary connection and permament transfer OH to UG Service Upgrade, 200 amp panel Overhead Service Relocation Upgrade Service to 400 amp UG Service Relocation, 200 amp UG Service Relocation, 400 amp Temporary overhead service OH to UG upgrade, 200 amp panel, incl. Temporary Set 35' Service Pole Set 35' Service Pole and Anchor 50% Step Existing Fee 9/1/2018 9/1/2019 $1,248 $11656 $2,063 + IA $1,534 $2,145 $2,755 + IA $2,364 $2,515 $2,665+IA $2,649 $3,003 $3,357+IA Actual Cost Actual Cost Actual Cost Actual Cost Actual Cost Actual Cost $11248 $1,749 $2,250+IA $467 $576 $684 +IA $11854 $1,841 $1,841+IA $1,248 $1,464 $1,680+ IA $21364 $1,680 $1,680+ IA $11248 $1,525 $1,802 + IA $11534 $2,216 $2,898+IA $11300 $1,397 $1,493 + IA $21000 $2,192 $2,384+IA 4. FISCAL IMPACT There is no fiscal impact associated with holding a public hearing. The proposed changes to the Electric Connection Fee Schedule will more accurately reflect the actual costs incurred by the District to provide these services. 5. RECOMMENDATION 1) Conduct a Public Hearing on the proposed changes to the Electric Connection Fee Schedule; and 2) Waive the reading and adopt District Ordinance 201 &01 amending the Electric Connection Fee Schedule. This ordinance will take effect on September 1, 2018. C Joe Horvath Electric Utility Director Michael D. Holley General Manager TRUCKEE DONNER Public Utility District Ordinance No. 2018 = 01 AMEND ELECTRIC CONNECTION FEE SCHEDULE WHEREAS, The District last moed the Electric Connection Fee Schedule in 2016; and WHEREAS, District staff analyzed the cost to provide the various services performed by District employees as listed on the Electric Connection Fee Schedule; and WHEREAS, on March 7, 2018, a workshop was shown on the Electric Connection Fee Schedule, increased: and held to recommend an increase to the fees as the cost to provide these services have NOW, THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District as follows: Section 1. ELECTRIC CONNECTION &FEE SCHEDULE Fee Effective September 1, 2019 Fee Effective Size and Type of Service September 1, 2018 plus Inflation Adjustment (IA) Single Phase, 120/240 Service - 200 amp 1) Permanent connection to structure $1,656 $2,063 + IA 2) Temporary connection to customer -owned power pole and subsequent transfer to $2,145 $2,755 + IA structure Single Phase, 120/240 Service - 400 amp 1) Permanent connection to structure 2) Temporary connection to customer -owned $2,515 $2,665 + IA power pole; removal of same and $3,003 $3,357 + IA installation of underground permanent service to structure Three phase, 208v, 240v or 480v service 1) Permanent connection to structure Actual Cost Actual Cost 2) Temporary single phase 120/240 service for Actual Cost Actual Cost construction purposes to become three- phase permanent service to structure Overhead to Underground upgrade or relocate, up to $1,749 $2,250 + IA 200 amp panel Overhead Relocation $576 $684 + IA 400 amp upgrade $1,841 $1,841 + IA Underground Relocation up to 200 amp $1,464 $1,680 + IA Underground Relocation 400 amp $1,680 $13680 + IA Temporary overhead service $1,525 $1,802 + IA 1 Ordinance 2018-01 Overhead to Underground upgrade or relocate, up to 200 amp panel, with TPP (Temp to Permanent $2,216 $2,898 + IA Installation) Set 35' Pole $1,397 $1,493 + IA Set 35' Pole and Anchor $2,192 $2,384 + IA Section 2. Inflation Adjustment (IA) -Commencing on September 1, 2019, Electric Connection Fees shall be adjusted annually on September 1 of 2019 and successive years to reflect the impact of inflation upon the fees. Such inflation adjustments shall be based on the August value of the Engineering News -Record 20-City Construction Cost Index (ENRCCI). The ENRCCI value for August, 2019, shall be used as the baseline for the Electric Connection Fees that become effective on September 1, 2019. The change in ENRCCI from August, 2019 to August, 2020 shall be used to calculate the Electric Connection Fees that become effective September 1, 2020. Successive years shall utilize a similar calculation. Section 3. This ordinance shall take effect on September 1, 2018, after adoption by the Board of Directors of the District. Section 4, The Clerk of the District shall cause a copy of this ordinance to be published in a newspaper of general circulation and be made available during regular business hours. Section 5. The provisions of other ordinances shall remain if effect to the extent that they do not conflict with this ordinance. PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a meeting duly called and held within the District on the sixteenth day of May, 2018 by the following roll call vote: AYES: NOES: ABSTAIN ABSENT: Directors: None. None. None. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Tony Laliotis President of the Board ATTEST: Shanna D. Kuhlemier, CMC, District Clerk 2 Ordinance 2018-01