DRAFT 8/6/24 BM/KG:sa/sr
Date
Mr. Matthew C. Ballantyne
City Manager
ity of Fontan:
353 Sierra Avenu
Fontana, CA 92335
Subject: Installation of Water Facilities
6585 Cherry Avenue
Fontana, California
Our Job No. 7002F
Dear Mr. Ballantyne:
In accordance with your request, we have prepared plans, priced materials, and obtained contract labor proposals to install the water facilities required to serve the subject location. Our estimate of the cost to install those facilities and the required deposit are as follows:
Item Estimated Cost
Main Extension Contract Form 5E (Form 388) $1,315,090.00 Application for Private Fire Service (Form 308) 167,610.00 for the installation of one 10-inch diameter private
fire service connection
Fire Hydrant Installation Agreement (Form 344FW) 28,350.00 for the installation of one 6-inch fire hydrant
Service Installation Agreement (265) (Form 440FW) 72,500.00 for the installation of one 4-inch domestic
service with 3-inch meter
Service Installation Agreement (265) (Form 440FW) 5,040.00 for the installation of one 1-inch landscape
service with I-inch meter
Mr. Matthew C. Ballantyne DRAFT 8/6/24 BM/KG:sr/sa
Date
Item Estimated Cost
Applicable Facilities Fees 132,650.00
Total estimated cost and required deposit $1,721,240.00 Less deposit previously received (21,000.00)
Balance of estimated cost and required deposit 1,/00.240.0 Under current income tax regulations, payments to water utilities for the installation of certain water service connections are taxable income to the utility. Therefore, the estimated cost shown above includes $13,681.00 for the tax applicable to your project.
Please sign the enclosed Main Extension Contract Form 5E (Form 388), Application for Private Fire Service form (Form 308), Fire Hydrant Installation Agreement (Form 344FW), Service Installation Agreements (265) (Form 440FW), and Service Applications and return them along with a signed copy of this letter and wire the balance of the estimated cost and required deposit to the bank account according to the wiring instructions described on Attachment "A." Upon receipt of the foregoing, we will procure the necessary materials and schedule the work which can follow approximately two weeks thereafter. When such work is completed, the deposit is subject to adjustment or refund.
The required deposit must be received within 180 calendar days of the date of this letter. If the final deposit is not received within 180 calendar days, San Gabriel Valley Water Company ("San Gabriel") may cancel your project and require that a new application be submitted along with the full submittal of all current and approved development plans.
The company's rules require that each applicant for a new water service provide, at the applicant's expense, a shut-off valve for the discharge side of the water meter. Such a valve is also required by the Uniform Plumbing Code. Please furnish us a valve for the domestic and landscape services so we may install them at the time the services are installed.
The property owner and its contractors, agents, and representatives may not modify or alter any of San Gabriel's facilities prior to, during, and following construction.
Mr. Matthew C. Ballantyne DRAFT 8/6/24 BM/KG:sr/sa
Date
Also enclosed herewith for your review and file is a copy of our construction plans which show the size and location of the facilities we plan to install for this development. If you have any question about our plans or any of the foregoing, please contact me, at (909) 201-7375 or [email protected].
Very truly yours,
Bryant Marroquin, P.E.
Director of Engineering
BM:sr
Enclosures
ACKNOWLEDGMENT
I am the signing authority for the city
below and we hereby acknowledge receipt of
this letter and enclosures and agree to the
terms and conditions therein.
CITY OF FONTANA,
a Municipal corporation
Signature
Full Name_
Title
Date
Attachment "A"
SAN GABRIEL VALLEY WATER COMPANY
INSTRUCTIONS FOR INCOMING DOMESTIC WIRE TRANSFER
Bank: Bank of America
333 South Hope Street, Suite 300
Los Angeles, CA 90071
(213) 621-7382
Wire Routing No: 026 009 593
Account No: 14592-00268
Beneficiary: San Gabriel Valley Water Company
11142 Garvey Avenue
El Monte, CA 91733
The wire transfer reference must include our job number for your project and your business name as shown on this Service Agreement. Once your wire transfer is complete, please send an e-mail to Chris E. Schiewe, San Gabriel Valler Nater Company's Project Administration Supervisor, at [email protected] confirming your transfer.
If you have any questions regarding the wire instructions, please contact Chris via the above e-mail or phone at (909) 201-7358.
Form 5E
MAIN EXTENSION CONTRACT
SUBDIVISIONS, TRACTS, HOUSING PROJECTS, INDUSTRIAL DEVELOPMENTS,
COMMERCIAL BUILDINGS, OR SHOPPING CENTERS
Fire Plovitution Plant - Sical Mect ice celera pite SNo. 103 Utility
Name San Gabriel Valley Water Company District Fontana Water Company Address _P.O. Box 6010, El Monte, CA 91734 P.O. Box 987, Fontana, CA 92334 Applicant
Name_ City of Fontana, a Municipal corporation
Address 8353 Sierra Avenue, Fontana, CA 92335
Description_Owner/Developer
Preliminary Statement
This Contract is entered into pursuant to the requirements of, and in accordance with the various applicable provisions of, Utility's Main Extension Rule in effect and on file with the California Public Utilities Commission, a copy of which is attached hereto and made a part hercof, hereinafter "Rule." This Contract does not, therefore, require specific authorization of said Commission, to carry out its terms and conditions.
Purpose of Contract
Applicant hereby applies for a water main extension. The Distribution Plant and/or Special Facilities described in attached Exhibit B shall be installed by Utility, and those described in Exhibit C by Applicant. Such Distribution Plant and/or Special Facilities will be used for the purpose of furnishing public utility water service to that certain property known as:
Job No. 7002F
6585 Cherry Avenue
Fontana, California
and delineated on that map attached hereto as Exhibit A. Utility agrees that it will, as soon as necessary materials and labor are available, and necessary permits, franchises, licenses or other governmental authorizations have been obtained, commence and prosecute to completion with all reasonable diligence the work of installing the Distribution Plant and/or Special Facilities and when complete and accepted will provide utility service in accordance with Utility's tariffs.
Fire Protection
The distribution system is designed to meet the fire flow requirements established pursuant to Section VIII. 1(a) in the California Public Utilities Commission General Order No. 103 as ordered by Decision 82-04-089 dated April 21, 1982.
-1-
Form 5B
(Continued)
MAIN EXTENSION CONTRACT
SUBDIVISIONS, TRACTS, HOUSING PROJECTS, INDUSTRIAL DEVELOPMENTS,
COMMERCIAL BUILDINGS, OR SHOPPING CENTERS
Distribution Plant - Special Facilities (Together or Separately) Fire Flow Requirements Either Meet or Exceed General Order No. 103 Contributions Not Subject to Refund - Distribution Plant and/or Special Facilities Applicant agrees to contribute the amount of $1,315,090.00 to cover the cost of facilities described in commenced, subject to revision of the amount contributed pursuant to Section A.6.e. of Rule Applicant also agrees to contribute the cost of installed facilities described in Exhibit C, pursuant to Section C.l.c. of Rule.
Refunds
All costs are contributed and are not subject to refund.
Conditions
The Utility will not be required to make extensions under this Contract where the casements, rights of way or streets are not kept free from other interfering construction or street work during installation of said water system. Applicant agrees to use its best efforts to assist Utility to obtain any and all permits, franchises or other governmental authorizations which may be required for the installation of the facilities. Applicant will provide any easements or rights of way required for the installation.
Successors and Assigns
The obligations of the Applicant shall be joint and several. This agreement shall bind and inure to the benefit of the heirs, representatives, executors, administrators, successors and/or assigns of the respective Parties hereto.
Jurisdiction of the Public Utilities Commission
This Contract shall at all times be subject to such changes or modifications by the Public Utilities Commission of the State of California as said Commission may, from time to time, direct in the exercise of its jurisdiction.
The effective date of this Contract shall be_ → 20-
Signatures
Utility Applicant
FONTANA WATER COMPANY, a division of CITY OF FONTANA,
San Gabriel Valley Water Company a Municipal corporation By - By.
TitleVice President - Engineering Title.
Date Date
388 (PUC Form 5E) -2-
Fontana Water Company Service Area
Sycamore
Curyon
Job 7002F
Texas Hill Exhibit "A"
717 m
COUNTY OF
SAN BERNARDINO
Rocent
COUNTY OF Ranch
SAN BERNARDINO
San Bernardine Napocal Forest
North Etiwanda
Preserve Riverside Avenue
(emex
Lytle Creek
Jerra Avenue
Rancho
Etivanda Soreadina Coyote
Vulc
Target San Bern
import/ Plar
Distribution:
Center
Airi Valley
Sanitary
Banyan Stre Candy!
Sierro Lakes
Foothill Freeway 63A 1G7
Project Site
Wainit Renoissance
Village
Roncho
Fantona
Village.
oftHeritage CITY OF
FONTANA
Rialto
AtON Route
Fontana
Specowoy COUNTY OF
Commerce SAN
Center BERNARDINO
California
Steel Industries: EAR
COUNTY OF
BERNARDNO
San Bernard-no Avenue SAN
BERNARDINO
Kali er Commerce
Cente: Boomington
20 Sao Remarding Freetes0 3a
Yord
Slavre Avenue
East Aliport OrNe Slover Avenue
Fontana Stover Central
Gateway Slover West Manufocturing /
Industrial Industrial.
District District
CITY OF Sycamore
ONTARIO Citrus AveniN
North Research
and Development- Jurupa Avenue overside Avenue
District
Jurupo
ith Industriol Southridoe Neuck Yards
Distilet Villoge
Open Space
Reserve 549 m Peak 1913
San Bernardino County
583 m
Riverside County COUNTY OF Rattlesnake
408 m Mount
Mountai
RIVERSIDE Jurupa Aguo Manso
459 m
673 г
Park
Service Layer Crediss OpenStreelMap (and CO-BYS Suerra Avenue
EXHIBIT B
MAIN EXTENSION CONTRACT
Job No. 7002F
FACILITIES TO BE INSTALLED BY UTILITY:
Quantity Description Estimated Cost
2654 Linear feet of 12-3/4-inch diameter water main
and
379 Linear feet of 17-3/8-inch diameter water main $999,612.00 Total Labor and Material $999,612.00
Overheads 195,924.00
Contingency 119,554.00
Subtotal $1,315,090.00
Income Tax Component (21.43%) N/A
Total Estimated Cost - Required Deposit $1,315,090.00
276 (Rev 5/01)
EXHIBIT C
MAIN EXTENSION CONTRACT
Job No. 7002F
FACILITIES TO BE INSTALLED BY APPLICANT:
Quantity Description Estimated Cost
NOT APPLICABLE TO THIS PROJECT
APPLICATION FOR PRIVATE FIRE SERVICE
FONTANA WATER COMPANY (Utility) acknowledges the request of
CITY OF FONTANA
(Applicant) for the installation of one 10-inch private fire service connection to the following property:
6585 Cherry Avenue
Fontana, California
Utility agrees to procced with this installation following receipt of $167,610.00, the estimated cost of the private fire service facilities, and upon Applicant's acceptance, as evidenced by his signature below, of the terms and Special Conditions of Schedule FO-4, attached, which Schedule is subject to change from time to time by the Public Utilities Commission of the State of California. The present authorized rate for this service is $146.20 per month.
Adjustment of any difference between the actual cost of the installation of the private fire service facilities and the amount paid herewith shall be made either by additional payment by Applicant or by refund to Applicant within sixty days after the actual completed cost has been determined by utility. Thereafter, no refunds will be made.
No bills will be rendered for service until Applicant has requested Utility to turn on the private fire service connection. Applicant warrants that his private fire system will be in proper condition to receive water when such request is made, and Applicant releases and agrees to hold harmless Utility from all claims, loss, expense, or liability arising from turning on the service.
APPLICANT UTILITY
CITY OF FONTANA, FONTANA WATER COMPANY, a division of
a Municipal corporation SAN GABRIEL VALLEY WATER COMPANY By By
Matthew C. Ballantyne Matt Y. Yucelen, P.E.
Title City Manager Title: Vice President - Engineering
Date Date
308 (PUC 9a) 12/98
FIRE HYDRANT INSTALLATION AGREEMENT
FONTANA WATER COMPANY, a division of SAN GABRIEL VALLEY WATER COMPANY, (Utility") acknowledges the request of
CITY OF FONTANA
("Applicant") for the installation of one 6-inch fire hydrant(s) as required by San Bernardino County Fire Department
at or near the following location and/or within the following tract or property:
6585 Cherry Avenue
Fontana, California
Upon receipt of the sum of $28,350.00, the estimated cost of said fire hydrants), and upon approval and acceptance of the terms and conditions of this agreement, Utility agrees to construct said hydrants). Adjustment of the above sum shall be made, either by additional payment by Applicant or by refund by Utility of any difference between the above sum and the actual completed cost, within sixty (60) days after said cost has been determined by Utility.
Thereafter, no refunds will be made.
FONTANA WATER COMPANY, a division of
SAN GABRIEL VALLEY WATER COMPANY
By
Matt Y. Yucelen, P.E.
Title Vice President - Engineering
Date
APPROVED AND ACCEPTED BY
APPLICANT:
CITY OF FONTANA,
a Municipal corporation
By -
Title
Date
344FW (Rev 6/99)
FONTANA WATER COMPANY
SERVICE INSTALLATION AGREEMENT (265)
Date Deposit $72,500.00
By Matt Y. Yucelen, P.E. Service Size 4-inch
Applicant_City of Fontana
Service Address_6585 Cherry Avenue, Fontana, CA 92336
Collection Address 8353 Sierra Avenue, Fontana, CA 92335 Description _Installation of one 4-inch domestic service with 3-inch meter.
The amount deposited herewith is the estimated cost of installing the water facilities necessary for providing the requested service. The deposit will be adjusted to actual cost after installation of the water facilities is completed. If the deposit is insufficient to cover the actual cost of installation, Applicant will pay the difference upon presentation of a bill.
Refund of any excess deposit is to be made to Applicant by check mailed to the above collection address.
Under current income tax regulations, payments to water utilities for the installation of certain water service connections are taxable income to the utility. Guidelines prescribed by the Public Utilities Commission require that the deposit shown above includes $12,793.00 for the tax applicable to your project.
APPLICANT
CITY OF FONTANA,
a Municipal corporation
By -
Title
Date
Connection No. L
Job No. 7002F-04
Account No. 265F $59,707.00
Account No. 228F $12,793.00
If no specific job number is assigned, use
Company Service Job No. 2600F.
440FW (Rev 6/03)
FONTANA WATER COMPANY
SERVICE INSTALLATION AGREEMENT (265)
Date Deposit $ 5,040.00
By_Matt Y. Yucelen, P.E. Service Size 1-inch
Applicant_City of Fontana
Service Address_6585 Cherry Avenue, Fontana, CA 92336
Collection Address 8353 Sierra Avenue, Fontana, CA 92335 Description Installation of one 1-inch landscape service with 1-inch meter.
The amount deposited herewith is the estimated cost of installing the water facilities necessary for providing the requested service. The deposit will be adjusted to actual cost after installation of the water facilities is completed. If the deposit is insufficient to cover the actual cost of installation, Applicant will pay the difference upon presentation of a bill.
Refund of any excess deposit is to be made to Applicant by check mailed to the above collection address.
Under current income tax regulations, payments to water utilities for the installation of certain water service connections are taxable income to the utility. Guidelines prescribed by the Public Utilities Commission require that the deposit shown above includes $888.00 for the tax applicable to your project.
APPLICANT
CITY OF FONTANA,
a Municipal corporation
By .
Title
Date
Connection No.
Job No. _7002F-06
Account No. 265F $4,152.00
Account No. 228F $888.00
If no specific job number is assigned, use
Company Service Job No. 2600F.
440FW (Rev 6/03)
FONTANA WATER COMPANY
SUMMARY OF SCHEDULE NO. FO-4
PRIVATE FIRE SERVICE
APPLICABILITY
Applicable to water service furnished to private fire systems and to private fire hydrants.
TERRITORY
Portions of Fontana, Rancho Cucamonga, Rialto and vicinity, San Bernardino County.
RATE Total
For each inch of diameter of service connection... $14.62
SPECIAL CONDITIONS
1. The customer will pay, without refund, the entire cost of the private fire service facilities.
2. The private fire service facilities shall be installed by the utility or under the utility's direction and shall be the sole property and subject to the control of the utility, with the right to alter, repair, replace and the right to remove upon discontinuance of service.
3. The minimum diameter for the private fire service connection will be 4-inches. The maximum diameter shall not be larger than the diameter of the water main to which the private fire service facilities are attached unless said main is circulating, in which case with the approval of the utility the maximum diameter may be larger by not more than 2-inches than the diameter of said circulating main.
4. If a water main of adequate size is not available adjacent to the premises to be served, then a new main from the nearest existing main of adequate size will be installed by the utility at the cost of the customer. Such cost shall not be subject to refund.
5. The private fire service facilities will include a detector check valve or other similar device acceptable to the utility which will indicate the use of water. The facilities may be located within the customer's premises or within public right of way adjacent thereto. Where located within the premises, the utility and its duly authorized agents shall have the right of ingress to and egress from the premises for all purposes related to said facilities. In the event the installation is solely a private fire hydrant facility, the requirement for a detector check valve or other similar device may be waived.
6. No structure shall be built over the private fire service facilities and the customer shall maintain and safeguard the area occupied by the private fire service facilities from traffic and other hazardous conditions. The customer will be responsible for any damage to the private fire service facilities whether resulting from the use or operation of appliances and facilities on customer's premises or otherwise.
Subject to the approval of the utility, any change in the location or construction of the private fire service facilities as may be requested by public authority or the customer will be made by the utility following payment to the utility of the entire cost of such change.
8. The customer's installation must be such as to separate effectively the private fire service facilities from that of the customer's regular domestic water service. Any unauthorized use of water from the private fire service facilities will be charged for at the applicable tariff rates and may be grounds for the utility's discontinuing private fire service without liability to the utility.
Effective 7/1/24
9. There shall be no cross connection between the systems supplied by water through the utility's private fire service facilities and any other source of supply without the specific approval of the utility. The specific approval, if given, will at least require at the customer's expense, a special double check valve installation or other backflow prevention device acceptable to the utility. Any unauthorized cross connection may be grounds for immediately discontinuing private fire service without liability to the utility.
10. The utility will supply only such water at such pressure as may be available from time to time as a result of its operation of the system. The customer shall indemnify the utility and save it harmless against any and all claims arising out of service under this schedule and shall further agree to make no claims against the utility for any loss or damage resulting from service under this schedule. Section 774 of the Public Utilities Code limits the liability of the utility resulting from a claim regarding adequacy of pressure or supply for fire protection service.
11. The customer shall be responsible for the periodic testing of any backflow prevention devices as required by public authority or the utility. Any repair or replacement of such devices or of any other facilities installed to provide private fire service shall be done at the customer's expense. Any refusal to comply with the above requirements may be grounds for the utility's discontinuing private fire service without liability to the utility.
12. All bills are subject to the reimbursement fee set forth on Schedule No. AA-UF.
Effective 7/1/24
SCHEDULE NO. FO-FF
Fontana Water Company
FACILITIES FEES
APPLICABILITY
Applicable to all applicants for installation of service connections to serve new customers and private fire service connections under Rule 15, Rule 16, and other tariff provisions. Applicable to all applicants for service from the Utility in the territory served for premises not previously connected to its distribution mains, for additional service connections to existing premises, and for increases in the size of meters and private fire service connections to existing premises at the customer's request.
TERRITORY
The sch de the builiable within the entire entitory served by Fontana Water Company RATES
Facilities Fees for each Meter or Private Fire Service Connection:
Fire Services All Others
For 5/8 x 3/4-inch $5,000.00 $8,000.00
For 3/4-inch $5,000.00 $9,000.00
For 1-inch $6,650.00 $12,000.00
For 1-1/2-inch $10,000.00 $24,000.00
For 2-inch $13,350.00 $33,000.00
For 3-inch $20,000.00 $54,000.00
For 4-inch $26,650.00 $84,000.00
For 6-inch $40,000.00 $159,000.00
For 8-inch $53,350.00 $249,000.00
For 10-inch $66,650.00 $354,000.00
For 12-inch $80,000.00 $504,000.00
SPECIAL CONDITIONS
1. Facilities fees are payable in addition to and do not limit any charges that may be applicable under Rule 15, Rule 16, and other tariff provisions.
2. These fees are not subject to the Public Utilities Commission Reimbursement Fee surcharge in Schedule UF.
3. Facilities Fees shall only be used for the repair and replacement of existing infrastructure or the installation of new infrastructure and shall not be used for the cost of the service connection or the meter.
4. An estimate of the Facilities Fees shall be included in any deposit required of the applicant under Rules 15 and 16, or otherwise. The tariff sheet in effect at the time the statement of actual construction costs is provided to the applicant under Rules 15 or 16, or otherwise, shall determine the applicable amount of the Facilities Fees.
Effective 8/19/2020
The Facility Fee applicable for increases in the size of existing meters or the diameter of private fire service connections shall be computed as the difference between the Facility Fee applicable to the existing meter size or private fire service connection size and the larger meter size or private fire service connection size requested by the customer.
6. Facilities Fees are based on meter size, except for private fire service connections, for which the Facilities Fees are based on the diameter of the private fire service connection.
Effective 8/19/2020
Rule No. 15
MAIN EXTENSIONS
A. General Provisions and Definitions
1. Applicability
a. All extensions of distribution mains, from the utility's basic production and transmission system or existing distribution system, to serve new customers, except for those specifically excluded below, shall be made under the provisions of this rule unless specific authority is first obtaine rom the Commission to deviate therefrom. A main extension contrac shall be executed by the utility and the applicant or applicants for the main extension before the utility commences construction work on said extensions or, if constructed by applicant or applicants, before the facilities comprising the main extension are transferred to the utility. b. Extensions primarily for fire hydrant, private fire protection, resale, temporary, standby, or supplemental service shall not be made under this rule.
c. The utility may, but will not be required to, make extensions under this rule in easements or rights-of-way where final grades have not been established, or where street grades have not been brought to those established by pubic authority. If extensions are made when grades have not been established and there is a reasonable probability that the existing grade will be changed, the utility shall require that the applicant or applicants for the main extension deposit, , at the time of execution of the main extension agreement, the estimated net cost of relocating, raising or lowering facilities upon establishment of final grades.
Adjustment of any difference between the amount so deposited and the deposit representing actual cost is not subject to refund. The entire deposit related to the proposed relocation, raising or lowering shall be refunded when such displacements are determined by proper authority to be not required.
2. Limitation of Expansion
a. Whenever the outstanding advance contract balances reach 40 percent of total capital (defined, for the purpose of this rule, as proprietary capital, or capital stock and surplus, plus debt and advances for construction) the utility shall so notify the Commission within thirty days. 1 b. Whenever the outstanding advance contract balances plus the advance on a proposed new extension would exceed 50 percent of total capital, as defined in Section A.2.a. plus the advance on the proposed new extension, the utility shall not make the proposed new extension of distribution mains without authorization of the Commission. Such authorization may be granted by a letter from the Executive Director of the Commission.
c. Whenever the outstanding advance contract balances reach the above level, the utility shall so notify the Commission within thirty days.
3. Definitions
a. A "bona-fide customer," for the purposes of this rule, shall be a customer (excluding any customer formerly served at the same location) who has given satisfactory evidence that service will be reasonably permanent to the property which has been improved with a building of a permanent nature, and to which service has commenced. The provision of service to a real estate developer or builder, during the construction or development period, shall not establish him as a bona-fide customer. b. A "real estate developer" or "builder," for the purposes of this rule, shall include any individual, association of individuals, partnership, or corporation that divides a parcel of land into two or more portions, or that engages in the construction and resale of individual structures on a continuing basis.
c. The "adjusted construction cost," for the purposes of this rule, shall be reasonable and shall not exceed the costs recorded in conformity with generally accepted water utility accounting practices, and as specifically defined in the Uniform System of Accounts for Water Utilities prescribed by the Commission, of installing facilities of adequate capacity for the service requested. If the utility, at its option, should install facilities with a larger capacity or resulting in a greater footage of extension than required for the service requested, the "adjusted construction cost," for the purpose of this rule, shall be determined by the application of an adjustment factor to actual construction cost of facilities installed. This factor shall be the ratio of estimated cost of required facilities to estimated cost of actual facilities installed.
4. Ownership, Design, and Construction of Facilities
a. Any facilities installed hereunder shall be the sole property of the utility.
In those instances in which title to certain portions of the installation, such as fire hydrants, will be held by a political subdivision, such facilities shall not be included as a part of the main extension under this rule, and will 2 neither be owned by the utility nor subject to refund under the provisions of Section C.2. of this rule.
b. The size, type, quality of materials, and their location shall be specified by the utility; and the actual construction shall I be done by the utility or by a constructing agency acceptable to it.
c. Where the property of an applicant is located adjacent to a right-of-way, exceeding 70 feet in width, for a street, highway, or other public purpose, regardless of the width of the traveled way or pavement; or on a freeway, waterway, or railroad right-of-way, the utility may elect to install a main extension on the same side thereof as the property of the applicant, and the estimated and adjusted construction costs in such case shall be based upon such an extension.
d. When an extension must comply with an ordinance, regulation, or specification of a public authority, the estimated and adjusted construction costs of said extension shall be based upon the facilities required to comply therewith.
e. If the following provisions for water conservation are included in local building codes and/or ordinances the main extension contract shall contain these provisions.
1) All interior plumbing in new buildings shall meet the following requirements:
a) Toilets shall not use more than 3½ gallons per flush, except that toilets and urinals with flush valves may be installed. b) Shower heads shall contain flow controls which restrict flow to a maximum of approximately 3 gallons per minute.
c) Kitchen and lavatory faucets shall have flow controls which restrict flow to a maximum of approximately 2 gallons per minute. 2) All new parks, median strips, landscaped public areas and landscaped areas surrounding condominiums, townhouses,
apartments, i and industrial parks shall have a well-balanced automatic irrigation system designed by a landscape architect or other competent person, and shall be operated by electric time controller stations set for early morning irrigation.
5. Estimates, Plans, and Specifications
3 a. Upon request by a potential applicant for a main extension of 100 feet or less, the utility shall prepare, without charge, a preliminary sketch and rough estimates of the cost of installation to be advanced by said applicant.
b. Any applicant for a main extension requesting the utility to prepare detailed plans, specifications, and cost estimates shall be required to deposit with the utility an amount equal to the estimated cost of preparation of such material. The utility shall, upon request, make available within 45 days after receipt of the deposit referred to above, such plans, specifications, and cost estimates of the proposed main extension.
If the extension is to include oversizing of facilities to be done at the utility's expense, appropriate details shall be set forth in the plans, specifications, and cost estimates.
c. In the event a main extension contract with the utility is executed within 180 days after the utility furnishes the detailed plans and specifications, the deposit shall become a part of the advance, and shall be refunded in accordance with the terms of the main extension contract. If such contract is not so executed, the deposit to cover the cost of preparing plans, specifications, and cost estimates shall be forfeited by the applicant for the main extension and the amount of the forfeited deposit shall be credited to the account or accounts to which the expense of preparing said material was charged.
d. When detailed plans, specifications, and cost estimates are requested, the applicant for a main extension shall furnish a map to a suitable scale showing the street and lot layouts and, when requested by the utility, contours or other indication of the relative elevation of the various parts of the area to be developed. If changes are made subsequent to the presentation of this map by the applicant, and these changes require additional expense in revising plans, specifications, and cost estimates, this additional expense shall be borne by the applicant, not subject to refund, and the additional expense thus recovered shall be credited to the account or accounts to which the additional expense was charged.
6. Timing and Adjustment of Advances
a. Unless the applicant for the main extension elects to arrange for the installation of the extension himself, as permitted by Section C.1.c., the full amount of the required advance or an acceptable surety bond must be provided to the utility at the time of execution of the main extension agreement.
b. If the applicant for a main extension posts a surety bond in lieu of cash, such surety bond must be replaced with cash not less than ten calendar 4 days before construction is to commence; provided, however, that if special facilities are required primarily for the service requested, the applicant for the extension may be required to deposit sufficient cash to cover the cost of such special facilities before they are ordered by the c. An applicant for a main extension who advances funds shall be provided with a statement of actual construction cost and adjusted construction cost showing in reasonable detail the costs incurred for material, labor, any other direct and indirect costs, overheads, and total costs; or unit costs; or contract costs, whichever are appropriate.
d. Said statement shall be submitted within sixty days after the actual construction costs of the installation have been ascertained by the utility.
In the event that the actual construction costs for the entire installation shall not have been determined within 120 days after completion of construction work, a preliminary determination of actual and adjusted construction costs shall be submitted, based upon the best available information at that time.
e. Any differences between the adjusted construction costs and the amount advanced shall be shown as a revision of the amount of advance and shall I be payable within thirty days of date of submission of statement.
7. Assignment of Main Extension Contracts
Any contract entered into under Sections Band C of this rule, or under similar provisions of former rules, may be assigned, after settlement of adjusted construction costs, after written notice to the utility by the holder of said contract as shown by the utility's records. Such assignment shall apply only to those refunds which become due more than thirty days after the date of receipt by the utility of the notice of assignment. The utility shall not be required to make any one refund payment under such contract to more than a
8. Interpretations and Deviations
In case of a or in cice of alise rene the eatin on are pers unreasonable to either party, the utility, applicant or applicants may refer the matter to the Commission for determination.
B. Extensions to Serve Individuals
1. Payment
5 Extensions of water mains to serve new individual customers shall be paid for and contributed to the utility by the individual customer requesting the main extension. Calculation of payment shall be on the basis of a main not in excess of 6" in diameter, except where a larger main is required by the special needs of the new customer. The utility shall be responsible for installing and paying for service pipes, meter boxes and meters to serve the new individual customer.
2. Refunds
If subsequent applications for water service are connected directly to the main extension contributed by the original individual customer, such subsequent applicants shall pay to the utility an amount equal to the cost of 100 feet of the original extension. Such amounts shall be immediately refunded by the utility to the initial customer who originally paid for and contributed the main extension to the utility. Total payments to the initial customer by subsequent applicants for water service shall not exceed the original cost of the extension. No refunds shall be made after a period of ten years from the completion of the main extension.
C. Extensions to Serve Subdivisions, Tracts, Housing Projects, Industrial Developments, Commercial Buildings, or Shopping Centers
1. Advances
a. Unless the procedure outlined in Section C.1.c. is followed, an applicant for a main extension to serve a new subdivision, tract, housing project, industrial development, commercial building, or shopping center shall be required to advance to the utility, before construction is commenced, the estimated reasonable cost of the extension to be actually installed, from the nearest utility facility at least equal in size or capacity to the main required to serve both the new customers and a reasonable estimate of the potential customers who might be served directly from the main extension. The costs of the extension shall include necessary service stubs or service pipes, fittings, gates and housing therefor, and meter boxes, but shall not include meters. To this shall be added the cost of fire hydrants when requested by the applicant for the main extension or required by public authority, whenever such hydrants are to become the property of the utility.
b. If special facilities consisting of items not covered by Section C.1.a. are required for the service requested and, when such facilities to be installed will supply both the main extension and other parts of the utility's system, at least 50 percent of the design capacity (in gallons, gpm, or other appropriate units) is required to supply the main extension, the cost of such special facilities may be included in the advance, subject to refund, 6 as hereinafter provided, along with refunds of the advance of the cost of the extension facilities described in Section C.1.a. above. c. In lieu of providing the advances in accordance with Sections C.1.a. and C. 1.b., the applicant for a main extension shall be permitted, if qualified in the judgment of the utility, to construct and install the facilities himself, or arrange for their installation pursuant to competitive bidding procedures initiated by him and limited to the qualified bidders. The cost, including the cost of inspection and supervision by the utility, shall be paid directly by applicant. The applicant shall provide the utility with a statement of actual construction cost in reasonable detail. The amount to be treated as an advance subject to refund shall be the lesser of (1) the actual cost or (2) the price quoted in the utility's detailed cost estimate. The installation shall be in accordance with the plans and specifications submitted by the utility pursuant to Sect ion A.5.b.
d. If, in the opinion of the utility it appears that a proposed main extension will not, within a reasonable period, develop sufficient revenue to make the extension self-supporting, or if for some other reason it appears to the utility that a main extension contract would place an excessive burden on customers, the utility may require nonrefundable contributions of plant facilities from developers in lieu of a main extension contract. e. If an applicant for a main extension contract who is asked to contribute the facilities believes such a request to be unreasonable, such applicant may refer the matter to the Commission for determination, as provided for in Section A.8. of this rule.
2. Refunds
a. The amount advanced under Sections C.1.a., C.1.b., and C.1.c. shall be subject to retund by the utility, in cash, without interest, to the party or parties entitled thereto as set forth in the following two paragraphs. The total amount so refunded shall not exceed the total of the amount advanced and for a period not to exceed 40 years after the date of the contract.
b. Payment of refunds shall be made not later than June 30 of each year, beginning the year following execution of contract, or not later than 6 months after the contract anniversary date if on an anniversary date basis. c. Whenever costs of main extensions and/or special facilities have been advanced pursuant to Sections C.1.a., C.1.b., or C.1.c., the utility shall annually refund to the contract holders an amount equal to 2½ percent of the advances until the principal amounts of the contracts have been fully repaid.
7 d. Whenever costs of special facilities have been advanced pursuant to Sections C.1.b. or C.1.c., the amount so advanced shall be divided by the number of lots (or living units, whichever is greater) which the special facilities are designed to serve, to obtain an average advance per lot (or living unit) for special facilities. When another builder applies for a main extension to serve any lots for which the special facilities are to be used, the new applicant shall, in addition to the costs of his proposed main extension, also advance an amount for special facilities. This amount shall be the average advance per lot for special facilities for each lot to be used less 2½ percent of the average advance for each year in which refunds have been due and payable on the original contract, prorated to June 30 or the contract anniversary date, on a monthly basis. e. The amount advanced to the utility by the new applicant shall be immediately refunded to the holder of the original contract, which included the cost of the special facilities, and the original contract advance will be reduced accordingly. The utility will thenceforth refund 2½ percent annually on each of the contract amounts, as determined above, to the holders of the contracts.
f. Advances and refunds based on additional builder participation will be determined in a similar manner.
g. In no case shall the refund on any contract exceed the amount advanced.
3. Termination of Main Extension Contracts
a. Any contract whose refunds are based on a percentage of the amount advanced may be purchased by the utility and terminated provided that the terms are mutually agreed to by the parties or their assignees and Section C.3.c. and Section C.3.d. are complied with. The maximum price that may be paid by the utility to terminate a contract shall be calculated by multiplying the remaining underfunded contract balance times the appropriate termination factor set out below. No contract that has been in effect for less than 10 years shall be terminated without prior Commission approval.
8 Termination Factors
Years Years Years Years
Remaining Factor Remaining Factor Remaining Factor Remaining Factor .8929 11 .5398 21 .3601 31 .2608
2 .8450 12 .5162 22 .3475 32 2535
3 .8006 13 4941 23 .3356 33 .2465
4 .7593 14 4734 24 .3243 34 .2399
5 .7210 15 .4541 25 .3137 35 .2336
6 . 6852 16 .4359 26 .3037 36 .2276
7 . 6520 17 4188 27 .2942 37 .2218
8 .6210 18 .4028 28 .2851 38 .2136
9 .5920 19 .3877 29 .2766 39 .2111
10 .5650 20 .3729 30 .2685 40 .2061
b. Any contract with refunds based upon percentage of revenues and entered into under Section C. of the former rule, may be purchased by the utility and terminated, provided the payment is not in excess of the estimated revenue refund multiplied by the termination factor in the following table, the terms are otherwise mutually agreed to by the parties or their assignees and Section C.3.c. and Section C.3.d. hereof are complied with. The estimated revenue refund is the amount that would otherwise be refunded, at the current level of refunds, over the remainder of the twenty-year contract period, or shorter period that would be required to extinguish the total refund obligation. It shall be determined by multiplying 22 percent of the average annual revenue per service for the immediately preceding calendar year by the number of bona fide customers at the proposed termination date, times the number of years or fractions thereof to the end of the twenty-year contract period or shorter period that would be required to refund the remaining contract balance.
Termination Factors
Years Years
Remaining Factor Remaining Factor
.8929 11 .5398
.8450 12 .5162
. 8006 13 .4941
.7593 14 4734
.7210 15 .4541
.6852 16 .4359
.6520 .4188
.6210 18 .4028
.5920 .3877
10 .5650
9 c. The utility shall furnish promptly to the Commission the following information in writing and shall obtain prior authorization by a formal application under Sections 816-830 of the Public Utilities Code if payment is to be made other than in cash:
(1) A copy of the main extension contract, together with data adequately describing the development for which the advance was made and the total adjusted construction cost of the extension.
(2) The balance unpaid on the contract and the calculation of the maximum termination price, as above defined, as of the date of termination and the terms under which the obligation was terminated. (3) The name of the holder of the contract when terminated. d. Discounts obtained by the utility from contracts terminated under the provisions of this section shall be accounted for by credits to Ac. 265, Contributions in Aid of Construction.
D. Extensions Designed to Include Fire Protection
1. The cost of distribution mains designed to meet the fire flow requirements set forth in Section VIII. 1(a) of General Order No. 103 is to be advanced by the applicant. The utility shall refund this advance as provided in Sections B.2. and C.2. of this rule.
2. Should distribution mains be designed to meet fire flow requirements in excess of those set forth in Section VIII. 1(a) of General Order No. 103, the increase in cost of the distribution mains necessary to meet such higher fire flow requirements shall be paid to the utility as a contribution in aid of construction.
3. The cost of facilities other than hydrants and distribution mains required to provide supply, pressure, or storage primarily for tire protection purposes, or portions of such facilities allocated in proportion to the capacity designed for fire protection purposes, shall be paid to the utility as a contribution in aid of construction.
E. Income Tax Component of Contributions and Advances Provision
1. Contributions in Aid Of Construction (CIAC), including Facilities Fees, and Advances for construction (AIAC) shall include, but are not limited to, cash, services, facilities, labor, property, and income taxes thereon provided by a person or an agency to the utility. The value of non-cash contributions and advances shall be based upon the utility's estimates. Contributions and 10 advances shall consist of two components for the purpose of recording transactions as follows:
a. Income Tax Component (ITC), and
b. The contribution or advance.
2. The ITC shall be calculated by multiplying the appropriate portion of the contribution or advance by the following tax factors:
LA FWC
a. For CIAC: 21.54% 21.43%
b. For AIAC: 22.58% 22.49%
3. The tax factors are established using Method 5, as set forth in Decision No. 87-09-026 in 1.86-11-019.
4. The formula to compute the ITC tax factors include:
a. Federal income tax rate: 21.00%
b. State franshise tax rate: 8.84%
c. Discount rate: 8.49%
d. Pre-tax rate of return: 10.98%/10.96%
e. Cost of debt: 6.26%
f. Debt:equity ratio: 37:63
g. Net-to-gross multiplier: 1.404184/1.400992
5. The ITC tax factors have been derived from the above-listed tax rates and will remain in effect until changes to those rates would increase or decrease the ITC tax factors by five percentage points or more. When and if that occurs, the utility will file a Tier 1 advice letter showing the new rates and cancel this sheet.
6. The utility shall inform the Applicant of the final cost of the installation of all facilities and the resulting tax paid thereon.
7. In the event the utility collects an ITC using an incremental tax rate that is more than its incremental tax rate as determined on a taxable year basis, without consideration of a tax credit or tax loss carryforward, the difference between what was and what should have been collected will be refunded to the Applicant.
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