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RES 20-21-LCU008 ALL SIGNED LAS CRUCES UTILITIES BOARD RESOLUTION NO. 20-21-LC0008 A RESOLUTION AUTHORIZING LAS CRUCES UTILITIES STAFF TO MAKE REVISIONS TO THE LAS CRUCES NATURAL GAS MAIN EXTENSION POLICY SCHEDULE. The Board of Commissioners for the City of Las Cruces Utilities, on behalf of the City of Las Cruces, is informed that: WHEREAS, on October 15, 2015, the Las Cruces Utilities ("LCU") Board of Commissioners ("Board") approved Resolution No. 15-16-LC0009, which authorized LCU to make administrative revisions to the terms and conditions within the Natural Gas Tariff, so that all schedules are consistent and uniform in presentation and with processes in MUNIS Utility Billing System; and WHEREAS, LCU recommends approval and authorization to make administrative revisions to the document structure and revisions to the Natural Gas Main Extension Policy Sheet No. G-2021; and WHEREAS, LCU recommends approval and authorization to revise terms and conditions to Gas Main Extension Assessment and Standard Allowance administration; and WHEREAS, Utilities staff is recommending the LCU Board approve the implementation of the revised Gas Main Extension Policy as attached in Exhibit "A"; and WHEREAS, the Utilities Natural Gas Main Extension Policy Sheet No. G-2021 schedule will be effective on September 1, 2020. NOW, THEREFORE, Be it Resolved by the Board of Commissioners for the City of Las Cruces Utilities, on behalf of the City of Las Cruces: LCU FY20 06/20 Rev. 4 LCU Board Resolution No. 20-21-LC0008 Page 2 of 2 �I) THAT the proposed Natural Gas Sheet No. G-2021, as attached hereto as Exhibit "A", and made it part of this Resolution is hereby accepted and approved. (II) THAT City staff is hereby authorized to do all deeds necessary in the accomplishment of the herein above. DONE AND APPROVED this 13th day of August 2020. APPROVED: By Board Chair ATTEST: Secretary VOTE: Chair Little: Moved by Vice-Chair Archuleta: Commissioner Bencomo: Seconded by Commissioner Carmichael: Commissioner Hardee: Commissioner Johnson: Commissioner Sorg: APPROVED AS TO FORM: Sr. Assistant City Attorney LCU FY20 06/20 Rev. 4 EXHIBIT "A" LAS CRUCES UTILITIES Sheet Number G-2021 Revision Approval Date: August 13,2020 Effective Billing Date: September 1, 2020 LCUB Resolution Number 20-21-LCU008 NATURAL GAS NATURAL GAS MAIN EXTENSION POLICY APPLICABILITY Natural gas main extensions necessary to any location within the City of Las Cruces ("City")service area that Las Cruces Utilities("LCU")determines is economically feasible and does not cause an unreasonable incremental cost to existing customers. The design of this policy is based on the following objectives: 1.) Extension of natural gas service to customers in underserved areas, and 2.) Constructing total gas system distribution reliability and redundancy. Standard Connection Allowance To determine if a gas main extension from an existing distribution infrastructure is economically feasible, LCU will evaluate the Standard Connection Allowance "Standard Allowance" and the total cost of a specific gas main extension to an unserved area in the City's gas service area. The Standard Allowance is based on the expected 5-year base revenue stream from potential customers of a gas main expenditure that may be incurred for an "average" customer without significant adverse effect to existing customers. The Standard Allowance will be based on a system wide average consumption level of 80 dekatherms per year and rounded to $1,400.00 and revised as cost of service gas rate charges are updated. Gas Main Extension Assessment and Standard Allowance Administration LCU will calculate the Cost of Gas Main Assessment per parcel based on the total project estimated cost and the number of parcels that will benefit from the gas main extension. At the discretion of LCU, the calculation of the Cost of Gas Main Assessment will be determined based on the units of parcels or service points (Calculated Gas Main Extension Total Project Cost/Number of parcels that benefit from gas main extension = Cost of Gas Main Assessment). When the project has been accepted, LCU will notify all parcel property owners benefiting from the gas main extension. The date of this letter will serve as the Notification Date for purposes of the provisions below. The letter shall inform the parcel property owners that construction is complete and of the process for requesting connection, paying the assessment, and other provisions of this policy. The Cost of Gas Main Assessment minus the Standard Allowance generally satisfies the Cost of Gas Main Assessment. In the event the Cost of Gas Main Extension project cost is less than the Standard Allowance, there will be no Remaining Assessment Balance. Upon completion of the project, parcel property owners will be advised by letter of the availability of natural gas service and to contact the LCU Department's New Connections program within 3-months of the Notification Date. EXHIBIT "A" Where gas main extension projects are impacted, or encounter external factors associated with existing property development constraints, and/or non-economic permitting construction requirements an additional process will be conducted to quantify the cost impact of noted constraints and/or restrictions. Project scoping reports conducted for construction of a gas main extension from an existing gas distribution system will apply the Standard Allowance described above to the affected gas main extension cost per parcel to quantify the incremental excess cost per parcel. This excess cost per parcel is defined as the projects External Cost Balance "ECB", which is attributable to constraints and requirements. A gas main project extending existing distribution infrastructure contributes to the total distribution system redundancy and reliability in parallel with extending gas availability in underserved areas where the ECB is deemed a system cost and not associated to the individual property parcels. Developed Property The parcel property owner will have 3-months after the notification date to contact the LCU to finalize connection and receive gas service, in order to utilize the Standard Allowance. This does not include Connection Fees as outlined in the New Connection Charges Schedule of the LCU Gas Tariff. The connection charges and all applicable fees will be due at the time of connection. After 3-months from the Notification Date the Standard Allowance terminates and the parcel property owner will be required to pay the full Cost of Gas Main Assessment amount or elect the installment payment option. Undeveloped Property In the instance where there is an undeveloped parcel or parcels with no existing structure within developed areas benefiting from a gas main extension, the parcel property owner will have 10 years from the Notification Date to utilize the Standard Allowance. The utilization of the Standard Allowance will then be solely contingent on the parcel property owner connecting and receiving gas service within 3-months after a Certificate of Occupancy has been issued. This does not include Connection Fees as outlined in the New Connection Charges Schedule of the LCU Gas Tariff. The connection charges and all applicable fees will be due at the time of connection. A parcel property owner that elects to utilize the Standard Allowance before building on their undeveloped parcel will be required to pay the full amount of the Remaining Assessment Balance and will not have the installment payment option. General Terms For parcel property owners who agree to pay the assessment under the installment payment option, whether they are the LCU's customer or not(in the case of renters/lessees), the monthly payment amount will be billed to the parcel property owner. Should the parcel property owner fail to pay all monies due, as herein provided, the City may exercise any or all of the following remedies: terminate all City utility service to the parcel property; file a municipal lien on the parcel property; and pursue in any other collection remedy available. In the event the parcel property owner sells or transfers ownership of the parcel property when there is an assessment balance due, the full unpaid balance is due on or before City utility service for the parcel property is transferred to a new customer. The "due on sale or transfer" EXHIBIT "A" requirement also applies to foreclosure, deed in lieu of foreclosure, or short sales, and to probate or death transfers. The payment obligation due resides with the parcel property owner who agreed to the installment payment option until paid in full. No penalties will be assessed for early payment of the assessment amount. This policy does not apply to newly constructed subdivisions as of the initial approval date of this tariff schedule. EXHIBIT "B" LAS CRUCES UTILITIES Sheet NoNumber:G-24U2021 Revision Approval Date: Oeta er- 15, 2 August 13, 2020 Effective Billing Date: 241-5September 1, 2020 LCUB Resolution NoNumber:SFr 920-21-LCU008 NATURAL GAS NATURAL GAS MAIN EXTENSION POLICY APPLICABILITY Natural gas main extensions necessary to any location within the C—i-ty's City of Las Cruces("City")service area area that Las Cruces Utilities ("LCU") determines is economically feasible and does not cause an unreasonable incremental cost to existing Ecustomers. The design of this policy is based on the following objectives- 1) extension rExtension of natural gas service to customers in underserved areas-in the eity'^ ent and nth-2.) eConstructing total gas system distribution 2yfItLa reliability and redundancy. Standard Connection Incentive-Allowance To determine if a--gas main extension from an existing distribution infrastructure is economically feasible, LCU will evaluate the Standard Connection tee-Allowance"Standard Allowance"and the total cost of a specific gas main extension to an unserved area in the City's gas service areater-r-iter-y. The Genneetion incentive Standard Allowance is based on the expected frve45)_year base revenue stream from potential customers of a gas main expenditure that may be incurred for an "average" Custom customer without significant adverse effect to existing Gustemer-scustomers. The_Standard Cefi eeti n ine tive Allowance will be based on a system wide average consumption level of 80 dekatherms per year and rounded to $1,400.00 and revised as cost of service as rate charges are updated. sef:viee base fates are Fevi-^a reyef4stheeenstfuetion of a . Thus, will the,�rr ic-h is nthe 'sat a zero costbeeauseitis ethe ' Gas Main Extension Assessment and Standard Connection Inventive-Allowance Administration LCU will calculate the Cost of Gas Main Assessment per parcel based on the total project estimated cost and the number of parcels that will benefit from the gas main extension. At the discretion of LCU, the calculation of the Cost of Gas Main Assessment will be determined based on the units of parcels or service points (Calculated Gas Main Extension Total Project Cost/Number ofparcels that benefitfrom gas main extension = Cost of Gas Main Assessment)_ When the project has been accepted, LCU will notify all parcel property owners benefiting from the gas main extension. The date of this letter will serve as the Notification Date for purposes of the provisions below. The letter shall inform the parcel property owners that construction is complete and of the process for requesting connection, paying the assessment, and other provisions of this policy. EXHIBIT "B" The Cost of Gas Main Assessment minus the Standard Conne^tion r eenti.,o Allowance generally satisfies the4 Cost of Gas Main Assessment.is the Remainin ' t Bahr^^ that^ n be raid in full sixty '6n` month a by the p el p pefty owner. In the event the Cost of Gas Main Extension �.,.,� .11:,.1111 E,.,r�o project cost is less than the Standard Ganneetion h -en4vc Allowance, there will be no Remaining Assessment Balance. Upon completion of the project„ parcel property owners will be advised by letter of the availability of natural gas service and to contact eentae-ts-the iesLCU Department's New Connections pprogramsectim Gity of Las C fuee within 3-months of the Notification Date. Where gas main extension projects are �dimpacted or encounter external factors associated with existing property development constraints,and/or non-economic permitting construction requirements-an additional process will be conducted to quantify the cost impact of noted constraints and/or restrictions. Project scoping reports conducted for construction of a gas main extension from an existing as distribution system; will apply the Standard Allowance described above- to the affected gas main extension cost per parcel will be eondu^t^a an "41 to -quantify the incremental excess cost per parcel. This excess cost per parcel is defined as the projects External Cost Balance"ECB", which is attributable to constraints and requirements. A f-xas main -.Aetidinj� existinF-, distribution ififfastmetur-e is qontribtttifif� to the tot-! distribution system Fedundaney and f@li-abi-lity li l tL *e,.din availability d d �- TC�TCCfCTCGTIRTIS�rt r.!-JGTPG�-CITG2TT Ther-efefe, the EGB is therefore deemed to a system cost and not asseeiated to the to the4n4i-,�4� movoA ols Developed Pr-oper-ty The pafeel pr-operty owner-will have three (3) months after-the notification date to eantaet the City of Las Allowanee. This does not inelude Genneetion Fees as eutlined in the Ne", Conneetion Ghafges Schedule of the Las Cruees Utilities Gas Tariff. The eenneetion chafges and all applieable fees will be due at the time of conneetion. and the par-eel pfoper-ty owner-will pay r-equir-ed to the full Cost of Gas Main Assessment amount or- elel+l ll1L installmento EXHIBIT "B" LAS CRUCES UTILITIES Sheet No.G-2015 10 Effective Billing Date! OetebeF44—,241-5 T C B Resolution No 1 C 14 T P i!1!1(1 NATURAL GAS NATURAL GAS MAIN EXTENSION POLWY A gas main project extending existing distribution infrastructure is-contributes to the total distribution system redundancy and reliability in parallel with extending gas availability in underserved areas.. where the T-here€er&,4hc ECB is deemed a system cost and not associated to the individual property parcels. Developed Property The parcel property owner will have three43-months after the notification date to contact the C-ResLCU to finalize connection and receive gas service, in order to utilize the Standard Allowance. This does not include Connection Fees as outlined in the New Connection Charges Schedule of the LCU Gas Tariff. The connection charges and all applicable fees will be due at the time of connection. • After three43-months from the Notification Date;the Standard Allowance terminates;and the parcel property owner will gybe required to pay the full Cost of Gas Main Assessment amount or elect the installment payment option. Undeveloped Property In the instance where there is an undeveloped parcel(s) or parcels with no existing structure within developed areas benefiting from a gas main extension, the parcel property owner will have teu-(10)years from the Notification Date to utilize the Standard Connection i ,.e ti„e Allowance. The utilization of the Standard Cone on in e, ti.,e Allowance will then be solely contingent on the parcel property owner connecting and receiving gas service within three-(3-months after a Certificate of Occupancy has been issued. This does not include Connection Fees as outlined in the New Connection Charges Schedule of the Las Gniee r rtilit.esLCU Gas Tariff. The connection charges and all applicable fees will be due at the time of connection. • A parcel property owner that elects to utilize the Standard Genneetion in e„ti..e Allowance before building on their undeveloped parcel; will be required to pay the full amount of the Remaining Assessment Balance;and will not have the installment payment option. Contr-ibutions ffem the pafeel pFeper-ty owner- will be eategefized as an assessment with the installme payment eption to pay up to sixty(60)monthly payments at Gas Main Extension Assessment annual interest that will begin to aeer-ue .,t the time of eenneetion. General Terms For parcel property owners who agree to pay the assessment under the installment payment option, whether they are the LCU's customer or not(in the case of renters/lessees), the monthly payment amount EXHIBIT "B" will be billed to the parcel property owner. Should the parcel property owner fail to pay all monies due, as herein provided, the City may exercise any or all of the following remedies: terminate all City utility service to the parcel property; file a municipal lien on the parcel property; and pursue in any other collection remedy available. In the event the parcel property owner sells or transfers ownership of the parcel property when there is an assessment balance due, the full unpaid balance is due on or before City utility service for the parcel property is transferred to a new customer. The "due on sale or transfer" requirement also applies to foreclosure, deed in lieu of foreclosure, or short sales, and to probate or death transfers.The payment obligation due resides with the parcel property owner who agreed to the installment payment option until paid in full. No penalties will be assessed for early payment of the assessment amount. This policy does not apply to newly constructed subdivisions as of the initial approval date of this tariff schedule. EXHIBIT "C" LAS CRUCES UTILITIES Sheet No. G-2021 Revision Approval Date: August 13, 2020 Effective Billing Date: September 1, 2020 LCUB Resolution No. 20-21-LCU008 NATURAL GAS TABLE OF CONTENTS Residential Service Sheet G-2015 Small Commercial Service Sheet G-2015 -------------------------------------------------------------------- Irrigation Pumping Service --------------------------------------------------------------- Sheet G-2015 Large Commercial Service------------------------------------------------------- ------------ Sheet G-2015 Industrial Service Sheet G-2015 ----------------------------------------------------------------------------------- High Volume Service---------------------------------------------------------------------------- Sheet G-2015 Cost of Gas Schedule Sheet G-2015 ----------------------------------------------------------------------------- Connection Charges------------------------------------------------------------------------------- Sheet G-2015 Natural Gas Main Extension Policy------------------------------------------------------ Sheet G-2021 EXHIBIT "D" LAS CRUCES UTILITIES Sheet No. G-2W[620214 Revision Approval Date: Oete er 15, 20 5August 13, 2020 Effective Billing Date: GetobeF 1, 204-2September 1, 2020 LCUB Resolution No. 15 16 r C 00-920-21-LCU008 NATURAL GAS TABLE OF CONTENTS Residential Service Sheet G-2015-2 Small Commercial Service Sheet G-2015-3 Irrigation Pumping Service _________________________________________________ _____________ Sheet G-2015-4 Large Commercial Service____________________________________________________________________ Sheet G-2015-5 Industrial Service ... Sheet G-2015-6 High Volume Service----------------------------------------------------------------------------- Sheet G-2015-7 Cost of Gas Schedule Sheet G-2015-8 Connection Charges------------------------------------------------------------------------------- Sheet G-2015-3 Natural Gas Main Extension Policy..................................................... Sheet G-2 1-f2021 (Pages City of Las Cruces MOUNTAINS OF OPPORTUNITY LAS CRUCES UTILITIES BOARD OF COMMISSIONERS ACTION FORM For Meeting of August 13, 2020 (Adoption Date) TITLE: A RESOLUTION AUTHORIZING LAS CRUCES UTILITIES STAFF TO MAKE REVISIONS TO THE LAS CRUCES NATURAL GAS MAIN EXTENSION POLICY SCHEDULE. BACKGROUND: On October 15, 2015, the Las Cruces Utilities ("LCU") Board of Commissioners ("Board") approved Resolution No. 15-16-LC0009, which authorized LCU to make administrative revisions to the terms and conditions within the Natural Gas Tariff, so that all schedules are consistent and uniform in presentation and with processes in MUNIS Utility Billing System. LCU recommends approval and authorization to make administrative revisions to the document structure and revisions to the Natural Gas Main Extension Policy Sheet No. G- 2021. Also, to revise terms and conditions to Gas Main Extension Assessment and Standard Allowance administration. Utilities staff is recommending the LCU Board approve the implementation of the revised Gas Main Extension Policy as attached in Exhibit "A." The Utilities Natural Gas Main Extension Policy Sheet No. G-2021 schedule will be effective on September 1, 2020. SUPPORT INFORMATION: 1. LCU Resolution No. 20-21-LC0008. 2. Exhibit "A" - Proposed Natural Gas Main Extension Policy Sheet No. G-2021 schedule, effective September 1, 2020. 3. Exhibit "B" - Existing Natural Gas Main Extension Policy Sheet No. G-2021 with red line. 4. Exhibit "C" - Proposed Table of Contents for Natural Gas Regulations Sheet No. G-2021. Continue on additional sheets as required Name of Drafter: �„ (� Department: Phone: Jose F. Proven cio Utilities 575 528-3508 Account Number: Amount of Expenditure: Budget Amount: N/A N/A N/A Strategic Plan Goal / Objective / Strategy Addressed: By 2023, 15% additional natural gas customers will be serviced through the Las Cruces Utilities Department. Performance Bud et Goal / Qbjective Addressed: N/A Department Si nab re . Phone Department Signature Phone /Y/1- J Utilities 528-3512 Budget U7 541-2300 V- j ' Assistant Legal `� -- iz- - 541-2128 City Mana er 541-2271 City Manager 541-2076 LCU 5/18 Rev.4 LCU Board Action Form Page 2 5. Exhibit "D" - Existing Table of Contents for Natural Gas Regulations Sheet No. G-2021 with red line. BOARD OPTIONS: 1. VOTE "'YES" - Will approve Resolution No. 20-21-LC0008 and approve the Natural Gas Main Extension Policy Sheet No. G-2021 schedule. These changes will become effective on September 1, 2020. 2. VOTE "NO" - Will not approve Resolution No. 20-21-LC0008 and the Natural Gas Main Extension Policy Sheet No. G-2021 schedule will not be approved. Staff will require strategic guidance. (Continue on additional sheets as required) cruces- MOUNTRINS OF OPPORTUNITY LAS CRUCES UTILITIES BOARD ACTION FORM AND RESOLUTION ROUTING SLIP The purpose of this Routing Slip will help ensure the highest quality of work is presented to the LCU Board of Commissioners for action on the Resolution. As the drafter of a Las Cruces Utilities (LCU) Board Action Form (BAF) and Resolution (RES) you are responsible to ensure all documents submitted for the Utilities Director's approval are without errors. Please identify a Utility associate to review the entire BAF/RES packet, including any Exhibits and/or Attachments; followed by your Deputy Director. The FINAL COMPLETE BAF/RES packet is required no later than 8:00am 15- working days before the Board Meeting. The additional time is required to obtain all final signatures from City Hall and create the agenda packet in order to distribute to the Board Members. For Meeting of: August 13 2020 Resolution, 20-21-LCU008 (Date) UTILITY STAFF REVIEWERS PRINT NAME INITIALS DATE 1. Drafter Jill Summerlin �, 2. Selected by Drafter Domoni ue Rodriguez -_ `Z- 1 3i A-ZO — 7 k - 3 -Le 3. Deputy Director Jose Provencioi--� ` �� 4. Senior Office Manager Alma Ruiz _ _ zz 5. Assistant Utilities Director Delilah A. Walsh g ero.rtae creees LCU BAHRES ROUTING SLIP FY20 06/2020 R2