HomeMy WebLinkAboutAgenda Report - January 18, 2012 C-10AGENDA ITEM C4010
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COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Establishing a Fee Recovery Schedule for the Lodi Energy Theft
Diversion Program
MEETING DATE: January 18, 2012
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution establishing a fee recovery schedule for the Lodi
Energy Theft Diversion Program.
BACKGROUND INFORMATION: On November 16, 2011 a public hearing was conducted to introduce
an ordinance establishing a fee recover schedule for the Lodi
Energy Theft Diversion Program. At that time a presentation was
made to the City Council outlining the fees recommended by staff.
Ordinance No. 1855 entitled, "An Ordinance of the Lodi City Council Amending Lodi Municipal Code
Chapter 13.20.020, 'Energy Theft Diversion/Field Services Fee Recovery Schedule"' was adopted by the
City Council on December 21, 2011 and will be effective January 20, 2012. This resolution provides the
fee recovery schedule for the ordinance.
Since July, when staff began tracking numbers, the utility has randomly checked over 750 residential
customers who were sealed for non-payment of their City of Lodi electric utility bills. Of these customers,
46 were observed having restored their electricity without the City's prior knowledge or consent. As a
result of identifying these thefts, the City has received more than $45,000 in utility payments from
customers who were unlawfully receiving Lodi Electric Utility service, lessening the financial impact these
thefts have on ratepayers.
In an effort to fully recover costs associated with the energy theft diversion program, and to serve as a
deterrent to energy theft, staff recommends the fee recovery schedule as shown on Exhibit A, attached.
FISCAL IMPACT: It is anticipated that the utility will recover in excess of $75,000 annually as a result of
this aggressive energy theft diversion program, and the new fee recovery schedule
should garner an additional $50,000 in revenue, minimizing the amount of losses
absorbed by ratepayers.
FUNDING: Not applicable.
'EIiF6b4tffA. Kir ley
Electric Utility Director
PREPARED BY: Rob Lechner, Manager, Customer Service & Programs
EWRSUIst
APPROVED:
Manager
Exhibit A
Energy Theft Diversion/Field Services Fee RecoverySchedule
Service Fees (based on current fully burdened labor rates)
Theft Inspection Fee
$75.00
Field Services Field Trip Fee
$75.00
Service Cut -At -Pole Fee
$120.00
Meter Set Fee
$115.00
Damaged MeterTest Fee
$57.50
Material Fees (actual costs)
Meter Ring Fee
$17.00
Padlock Fee
$7.00
Meter Cover Fee
$3.00
Damaged Meter Replacement Fee:
Single-Phase/Poly-Phase
$60.00/$450.00
NightHawk Collar/Meter Replacement Fee
$300.00/$430.00
RESOLUTION NO. 2012-04
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING FISCAL YEAR 2011/12 ENERGY THEFT
DIVERSION AND CUSTOMER FIELD SERVICE FEE
RECOVERY SCHEDULE
WHEREAS, it is sound business practice to adjust fees annually to reflect the
current cost of doing business; and
WHEREAS, fees for customer field services and associated tasks have not been
revised in a number of years; and
WHEREAS, the City is now implementing an aggressive energy theft diversion
program and associated cost recovery schedule; and
WHEREAS, the City Council has previously approved the labor rate methodology
developed by MGTAmerica, Incorporated; and
WHEREAS, the labor rates for the Electric Utility Department have been
calculated using the MGTAmerica, Incorporated rate model; and
WHEREAS, annual approval of labor rates based upon the adopted budget is a
ministerial action.
WHEREAS, staff recommends that the City Council approve the following fee
schedule:
Ener2v Theft Diversion/Field Services Fee Recovery Schedule
Theft Inspection
$75.00
Field Services Field Trip Fee
$75.00
Service Cut -At -Pole Fee
$120.00
Meter Set Fee
$115.00
Damaged Meter Test Fee
$57.50
Meter Ring Fee
$17.00
Padlock Fee
$7.00
Meter Cover Fee
$3.00
Damaged Meter Replacement Fee: Single-
Phase/Poly-Phase
$60.00/$450.00
NightHawk Collar/NightHawk Meter
Re lacement Fee
$300.00/$430.00
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the fiscal year 2011/12 Energy Theft Diversion and Customer Field Service Fee
Recovery Schedule as outlined above; and
BE IT FURTHER RESOLVED that the 2011/12 Energy Theft Diversion and
Customer Field Service Fee Recovery Schedule will not take effect until January 20,
2012 (30 -days following the adoption of Ordinance No. 1855).
Dated: January 18,2012
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I hereby certify that Resolution No. 2012-04 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 18, 2012, by the following
vote:
AYES: COUNCIL MEMBERS— Hansen, Katzakian, Nakanishi, and
Mayor Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS—Johnson
ABSTAIN: COUNCIL MEMBERS ZHL
City Clerk
2012-04