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HomeMy WebLinkAboutAgenda Report - November 16, 2011 G-03 PHAGENDA ITEM in% CITY OF LODI %W COUNCIL COMMUNICATION im AGENDA TITLE: Conduct a Public Hearing to Introduce an Ordinance Establishing a Fee Recovery Schedule for the Lodi Energy Theft Diversion Program MEETING DATE: November 16,2 011 PREPARED BY: Electric Utility Director RECOMMENDEDACTION: Conduct a public hearingto introduce an ordinance establishing a fee recovery schedule for the Lodi Energy Theft Diversion Program. BACKGROUND INFORMATION: Earlierthis year, the Electric Utility Department launched the first phase of a program designed to curb the theft of electricity. Since July, when staff began tracking numbers, the utility has randomly checked 660 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 $42,100 in utility payments from customers who were unlawfully receiving Lodi Electric Utility service, lessening the impact these thefts have on our ratepayers. In an effort to fully recover costs associated with our energy theft diversion program, and to serve as a deterrent to energy theft, staff is recommending a new fee recovery schedule as shown on Exhibit A, attached. This fee schedule is the subject of this public hearing. 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. EI' abeth ley Electric Utility Director PREPARED BY: Rob Lechner, Manager, Customer Service & Programs EK/RSLAst APPROVED: t_ A I\ onradt Bartlam, City Manager Exhibit A Energy Theft Diversion/Field Services Fee Recovery Schedule 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 Meter Test 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 Vehicle & Equipment Fees Based upon the current City of Lodi Electric Utility Department Rules and Regulations. RESOLUTION NO. 2011- 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 associat ks have not been revised in a number of years; and WHEREAS, the City is now implementing an aggressive energy TWdiversion program and associated cost recovery schedule; and A�l law WHEREAS, the City Council has previouslldhwrovekthe labor rate methodology developed by MGT America, Incorporated; and WHEREAS, the labor rates for the Electric LA& Department have been calculated using the MGT America, Incorporated rate model; WHEREAS, annual approval ministerial action. WHEREAS, staff recommends th schedule: gervi P. FP.P.0 thaCP.d an' based upon the adopted budget is a CityKouncil approve the following fee F eel lahnr rated Theft InspedW Inspect $75.00 ices Field T e Serve t -At -Pole VlEe $75.00 $120.00 Me et Fee In $115.00 llq&ma ed ter Test Fee $57.50 im 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/NightHawk Meter Replacement Fee $300.00/$430.00 Based upon the current City of Lodi Electric Utilitv D NOW, THEREFORE, BE IT RESOLVED tha e L3di City Council doWhereby approve the fiscal year 2011/12 Energy Theft Dive n and*Customer Field S rvice Fee Recovery Schedule as outlined above; and BE IT FURTHER RESOLVED, that the 2011/1 Customer Field Service Fee Recovery Schedule will take adoption Ordinance No. 1855. Dated: , 2011 ------------------------------- ------------------------------- I hereby certify that Resolution No. City Council of the C' di in a regular following vote: AYES: R�c L MEMBERS — COUNQKL MEMBERS — COUNCIL MEMBERS — 2011- Theft Diversion and 0 -days following the was passed and adopted by the held , 2011, by the RANDIJOHL City Clerk ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 13.20 — ELECTRICAL SERVICE — BY ADDING SECTION 13.20.020, "ENERGY THEFT DIVERSION/FIELD SERVICES FEE RECOVERY SCHEDULE" -------------------------------------------------- -------------------------------------------------- BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. Lodi Municipal Code Section 13.20 — Electrical Service is hereby amended by adding Section 13.20.020 "Energy Theft Diversion/Field Services Fee Recovery Schedule," and shall read as follows: Section 13.20.020 Energy Theft Diversion/Field Services Fee Recovery Schedule A. PURPOSE: The Lodi City Council finds and determines that there is and has been a rise in utility theft in the City of Lodi whereby electricity services are being obtained without payment, including but not limited to, shutoff costs, meter tampering, damage to or removal of meter locking devices, energy diversion or theft of electric service, resulting in substantial monetary losses to the City's ratepayers in the form of, including but not limited to, loss of revenue, replacement of damaged meters, meter testing fee and other related equipment replacement or repair costs, personnel time in investigating and remedying theft matters, investigative costs and attorney's fees. The purpose of this ordinance is to establish clear guidelines for the processing and recovery of revenues related to theft as well as costs, fees and expenditures incurred by the City as a result of utilities theft as described herein. B. ADOPTION OF FEES: The Lodi City Council shall from time to time establish by Resolution fees to be charged to utility account holders where the City incurs costs as a result of nonpayment, meter tampering or actual or attempted theft of energy. Costs shall not exceed actual cost. Fees shall be limited to the following: 1) Theft Inspection Fee - shall be charged upon an inspection that shows that the meter has been tampered with or that the meter has been bypassed. 2) Field Services Field Trip Fee - shall be charged on accounts that are sealed for nonpayment. 3) Service Cut -At -Pole Fee — shall be charged on accounts that cannot be turned off at meter box when sealed for nonpayment or on accounts that the meter has been bypassed or tampered with. 4) Meter Set Fee — shall be charged when a meter must be replaced when the meter has been tampered with or bypassed. 5) Damaged Meter Test Fee — shall be charged when a meter must be tested after the meter was tampered with or bypassed. 6) Meter Ring Fee — shall be charged when meter ring must be replaced after the meter was tampered with or bypassed. 7) Padlock Fee — shall be charged when padlock must be installed or replaced after the meter was tampered with or bypassed. 8) Meter Cover Fee — shall be charged when meter cover must be replaced after the meter was tampered with or bypassed. 9) Damaged Meter Replacement Fee — shall be charged when meter is unrepairable and must be replaced after meter was tampered with or bypassed (separate fees for Single -Phase and/or Poly -Phase). 10) Nighthawk Collar/ Nighthawk Meter Replacement Fee — shall be charged when Nighthawk Collar and/or Nighthawk meter must be replaced after the meter was tampered with or bypassed. 11) Vehicle & Equipment Fees — shall be charged based upon the current City of Lodi Electric Utility Department Rules and Regulations, Appendix A, page A- 1. SECTION 2. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 3. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 4. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 5. This ordinance shall be published pursuant to law and shall become effective 30 days from the date of passage and adoption. Approved this day of , 2011 BOBJOHNSON Attest: Mayor RANDIJOHL City Clerk 061 State of California County of San Joaquin, ss. I, Randi Johl, City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held November 16, 2011, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2011, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. RANDI JOHL City Clerk Approved to Form: D. STEPHEN SCHWABAUER City Attorney Lodi City Council Public Hearing November 16, 2011 �tiEC�gr� Purpose of new fee schedule: — Recover costs associated with energy theft cases and seal of service for non-payment — Deter future energy thefts and reduce seals for non-payment %] Statistics — theft diversion (as of Nov. 14, 2011): — 745 customer inspections — 48 energy thefts observed (6%) — $42,171 collected as a result of service being terminated a second time 3 Proposed Fee Recovery Schedule: Fee Theft Inspection Field Services Field Trip Service Cut -At -Pole Meter Set Damaged Meter Test Meter Ring Padlock Meter Cover Damaged Meter Replacement: Single-Phase/Poly-Phase Nighthawk Collar/Meter Replace OF Current $0 $33 $68 $84 $0 $0 $0 $0 $0 $0 Proposed $75 $75 $120 $115 $57.50 $17 $7 $3 $60/$450 $300/$430 4 Proposed Fee Recovery Schedule (continued): — Customers will also be charged "Vehicle & Equipment Fees" based upon Electric Utility Department Rules & Regulations: • Line truck $15 • Service truck $ 4 • Van/passenger vehicle $ 3 5 How do some of these fees compare?: M Lodi MID TID Alameda Theft Inspection $75 $145 $250* Actuals Field Services Field Trip $75 $55 $75* $175 Services Cut -At -Pole $120 $155 $125* $125 Meter Ring $17 $12.50 $13 N/A Padlock $7 $9.50 $13.50 N/A Meter Cover $3 $9.50 $5 N/A *per call M Please immediately confirm receipt of this fax by calling 333-6702 CITY OF LODI P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUBJECT: PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE ESTABLISHING A FEE RECOVERY SCHEDULE FOR THE LODI ENERGY THEFT DIVERSION PROGRAM PUBLISH DATE: SATURDAYY OCTOBER 8,2011 TEAR SHEETS WANTED: Three (3) please SEND AFFIDAVIT AND BILL TO: RANDI JOHL, CITY CLERK City of Lodi P. 0 Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, OCTOBER 6,2011 ORDERED BY: JENNIFER MUROBISON, CMC ASSISTANT CITY CLERK RANDIJOHL CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK Verify Appearance of this Legal in the Newspaper — Copy to File Faxed to the Sentinel at 369A084-' "(t.y 6n (date) (payesj LNS Phoned to confirm receipt of all pages at: (time) JMR MB (niitialsl formAadvins.doc DECLARATION OF POSTING PUBLIC HEARING TO CONSIDER INTRODUCING ORDINANCE ESTABLISHING A FEE RECOVERY SCHEDULE FOR THE LODI ENERGYTHEFT DIVERSION PROGRAM On Thursday, October 6, 2011, in the City of Lodi, San Joaquin County, California, a Notice of Public Hearing to consider introducing ordinance establishing a fee recovery schedule for the Lodi Energy Theft Diversion Program (attached and marked as Exhibit A), was posted at the following locations: Lodi Public Library Lodi City Clerk's Office Lodi City Hall Lobby Lodi Carnegie Forum I declare under penalty of perjury that the foregoing is true and correct. Executed on October 6, 2011, at Lodi, California. i JeAIFER ROBISON, CMC ASSISTANT CITY CLERK N:\Administration\CLERK\Fonns\DECPOSTEUD2.DOC ORDERED BY: RANDIJOHL CITY CLERK MARIA BECERRA ADMINISTRATIVE CLERK • CITY OF LODI Carnegie Forum 305 West Pine Street,. Lodi Date: November 16, 2011 Time: 7:00 p.m. For information regarding this notice please contact: Rand! Johl City Clerk Telephone: (209) 333-6702 NOTICE OF PUBLIC HEARING Lir x- �1- b _J r NOTICE IS HEREBY GIVEN that on Wednesday, November 16, 2011, at the hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council will conduct a public hearing at the Carnegie Forum, 305 West Pine Street, Lodi, to consider the following matter: a) Introduce an ordinance establishing a fee recovery schedule for the Lodi Energy Theft Diversion Program. Information regarding this item may be obtained in the Electric Utility Department, 1331 South Ham Lane, Lodi, (209) 333-6762. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk, City Hall, 221 West Pine Street, 2"d Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 221 West Pine Street, at or prior to the close of the public hearing. By the Lodi City Council: Ra City Clerk Dated: October 5, 2011 Approved as to form: D. Stephen Schwabauer City Attorney CLERKTUBHEAR\NOTICESInoteud2 doe 1015/11