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RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC Ui1LIIIES BOARD OF PUBLIC U LITIES DATE: October 15, 2010 ITEM NO: 3 SUBJECT: UNh"'=: GROUND ELECTRIC LINE EXTENSION — DOLE FOODS DISTRIBUTION FA+C _ITY—WORK ORDER NO. 1023351 ISSUE: Board of Public Utilities approval is requested for Work Order No. 9023351. RECOMMENDATION: That the Board of Pub] c Utilities approve the estimated capital expenditure of $283,004 to install an underground electric l!-7e extension to serve the Dole Foods Distribution Facility located between Columbia and Palmyrita Avenues, westerly of Northgate Street. BACKGROUND: The project consists of extending underground facilities to serve three main services for the Dole Foods Distribution Facility loca-ed at 1100 Columbia Avenue and 990 Palmyrita Avenue. The project includes electric system improvements that would facilitate serving future developments and improve reliability. Engineering has been performed by staff and construction will be performed by either Utility staff or by contractors using the Utility Contractor's Panel. FISCAL IMPACT: Funds are budgeted and available for this project in the Distribution Line Extensions Account No. 6130000-470601. The applicant applied for a building permit on September 15, 2009. At that time, Electric Rules 10 and 1 provided that the applicant does not contribute to the cost of such facilities if the estimated increase in annual revenue from new commercial or industrial service will adequately offset the installation cost of such facilities, and Dale began their improvements in reliance upon that credit. Rule 11 provides that the applicant is not required to pay for the facilities until the facilities are to be constructed by the Utility. On May 4, 2010, the City Council approved the revision to Electric Rule 11 where this revenue test was removed. Therefore, in this specific situation, the applicant will not pay an electric service charge s=ince the anticipated electric revenue for the new buildings will completely offset the charges and the Rule 11 J revenue test was still in effect at time of application for and approval of service. Prepared by: Stephen H. Badgett, Public Utilities Deputy General Manager/Energy Delivery Approved by: David H. Wright, Public Utilities General Manager Approved by: Be inda J. Graham, Assistant City Manager Approved as to form: Gregory P. Priamos, City Attorney Certifies availability of funds: Reiko A. err Public Utilities Assistant General Manager Finance/Administration