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APPROVE MOTION TO AUTHORIZE A REFUND OF ENCROACHMENT PERMIT CHARGES - AT&T CALIFORNIA
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RECOMMENDATION
It is recommended that the City Council approve a motion:
1. Authorizing a partial refund in the amount of $48,895.21 for fees connected to Encroachment Permit EP23-0985 paid by AT&T California.
2. Authorizing the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the motion.
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Summary
In February 2024, AT&T California paid $94,798.33 in permit fees for the installation of 25,581 lineal feet of new conduit in city right of way under EP23-0985 (Attachment A). Due to favorable conditions in the field, the installing contractor found several existing conduits that were vacant therefore reducing the construction costs to be installed to 12,319 lineal feet. AT&T California has requested a refund of fees paid for the lineal footage that was not installed in the City’s right of way. Because the full scope of work under permit EP23-0985 was never installed, staff recommends that the Council approve the requested refunds.
DISCUSSION
Background
AT&T California paid $94,798.33 for permit EP23-0985 (Attachment B). Due to the reduction in lineal footage during construction, AT&T California decided to pursue a refund for the difference in footage once the project was completed and accepted by Public Works Inspection. AT&T California submitted a refund request form in the amount of $48,895.21 (Attachment C) on October 1, 2024. A copy of the revised invoice is attached (Attachment D).
Refund Analysis
Per the adopted FY 2024/25 Fee Schedule, Utility(ies) Encroachment Permits up to 50 lineal feet are charged $547.00 with $3.25 for each additional linear foot thereafter. In addition to fees per lineal feet, there is a Technology Fee - Engineering of $.075 of the permit fee and Community Rating System Admin Fee of $0.06 of the permit fee.
The reduction of 13,262 lineal feet from the original permit reduced the Utility Line total by $43,101.50, therefore affecting and reducing the total of the Technology Fee by $3,232.62 and the Community Rating System Admin Fee by $2,586.09. A copy of the revised invoice is attached (Attachment D).
The City’s adopted Fee Schedule provides that refunds may be subject to a processing fee - 10% of refund total (not to exceed $25.00).
The calculated refund amount, minus the refund processing fee, amounts to $48,895.21 (see Table 1 below for a breakdown).
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Table 1 |
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EP23-0985 |
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Fee Item Description |
Fees Paid |
Refund Amount |
|
Utility Line - 25,581 LF |
$ 83,522.75 |
$ 43,101.50 |
|
Technology Fee |
$ 6,264.21 |
$ 3,232.62 |
|
Community Rating System Admin Fee |
$ 5,011.37 |
$ 2,586.09 |
|
Total |
$ 94,798.33 |
|
|
Refund |
$ 48,920.21 |
|
Processing Fee |
$ - 25.00 |
|
Total Refund |
$ 48,895.21 |
The general refund process under Stockton Municipal Code (SMC) 3.60.020 provides that refunds of $20,000 or more require City Council approval.
Because the original scope of work to install 25,581 lineal feet of conduit was reduced to 12,319 lineal feet, staff recommends that the Council approve the refund of $48,895.21 for the revised lineal footage (Attachment E).
FINANCIAL SUMMARY
There are sufficient funds available in the Development Services Fund to process this refund in the amount of $48,895.21 to AT&T California. There is no financial impact to the General Fund.
Attachment A - EP23-0985 Permit Cover
Attachment B - Original Permit Invoice
Attachment C - Refund Request Form
Attachment D - Revised Permit Invoice
Attachment E - Fee and Payment History