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HomeMy WebLinkAboutReso 161-1983 RESOLUTION NO. 161-83 . . CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH PG&E FOR THE INSTALLATION OF GAS MAINS ON GATEWAY BOULEVARD (GATEWAY ASSESSMENTD!.STRIC~. NO. ST-82-2) that: BE IT RESOLVED by the City Council of the City of South San Francisco 1. Execution of Agreemen_t. Execution of an Agreement between the City of South San Francisco and Pacific Gas and Electric Company for the installation of gas mains and service facilities on Gateway Boulevard is hereby authorized, and a copy of said Agree- ment is attached hereto as Exhibit "A". 2. Signature The City Manager is authorized to execute said Agreement on behalf of the City, and the City Clerk attest his signature thereto. I hereby certify that the foregoi.ng Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the 16thday of November.. , 1983, by the following vote' AYES' Councilmembers Ronald G~ .A.¢osta, M. ark N. A_ddiego, .Emanu~.l~ N..r)~monte, Gus Nicolopulos; and Roberta Cerri Teglia NOES- None ABSENT' None COPIES ~XCity Division Commercial Department District Customer Accounting Construction Accounting REFERENCE GM 4337366 THIS AGREEMENT made by CITY OF SOUTH SAN FRANCISCO, a municipal corporation (City) and PACIFIC GAS AND ELECTRIC COMPANY, a California corporation (PGandE). RECITALS: A. City, pursuant to the provisions of the Municipal Improvement Act of 1913, under its Resolution of Intention No. 74-82 adopted July 7, 1982, which, as amended, provides for the formation of a special assessment distriCt desig- nated The Gateway Assessment District No. ST-82-2 (District) to accomplish, among other things, the installation of gas distribution mains on Gateway Boulevard between East Grand Avenue and Oyster Point Boulevard, South San Francisco. B. The gas facilities contemplated for construction within the District include all gas mains that are to be connected to PGandE's existing gas distribution system (Gas Facilities) as shown on the sketch marked Exhibit "A", copy attached and made a part hereof. This gas main extension is required by PGandE to connect the Gas Facilities to PGandE's existing gas distribution sys- tem within the District. The installation of the Gas Facilities does not include additions and modifications required to provide gas service at a later date when service locations and connected loads are finally determined. C. Under the special District proceedings referred to above, all of the Gas Facilities, as shown on Exhibit "A", to be installed within the District shall be constructed by PGandE. · D. The final design and installation of any additional Gas Facilities cannot be completed at this time since the gas loads and service locations can- not be determined until land is sold or leased in the District t~ v~rious enterprises which may install gas loads and apply to PGandE for gas service. E. The ownership of the Gas Facilities installed by PGandE shall vest in PGandE in accordance with the provisions of Sections lOl09, lOllO and lOlll of the Streets and Highways Code of the State of California: NOW, THEREFORE, IT IS MUTUALLY AGREED~AS FOLLOWS: 1. PGandE shall furnish and install the Gas Facilities shown on Exhibit "A" in accordance with Section E.7 of PGandE's Gas Rule No. 15 {Gas Extension Rule}, a copy of which is attached hereto and made a part hereof. 2. The Gas Facilities to be installed hereunder shall be designed to meet estimated gas, loads within the District, as indicated by the City to PGandE. 3. City shall pay PGandE upon demand and in advance of construction of the requested Gas Facilities a refundable amount of $33,207 {Gas Extension Advance} which represents the total cost of the Gas Facilities {$48,678} less a credit for the gas share of the trench of $15,471 which trenching shall be per- formed by the City in accordance with PGandE's plans and specifications. Refunds are to be made according to Sections 5 and 6 of this agreement. 4. In addition to the Gas Extension Advance, City, in lieu of a monthly cost of ownership charge, shall also pay'PGandE $51,591 {Gas Ownership Fund} representing the present worth of the annual cost to PGandE to own, operate and maintain the requested Gas Facilities, equal to 19.2 percent of the total cost of the Gas Facilities times the present worth factor of 5.52 based on 12.57 percent interest for a period often years. Such interest rate shall be equal to PGandE's authorized rate of return on the date of this agreement. 5. (a) In the event that PGandE shall make refunds of the Gas Extension Advance as provided for in Section 3 hereof, PGandE shall also adjust -- the Gas Ownership Fund. Refunds and adjustments of the Gas Extension Advance and Gas Ownership Fund will be made annually on the anniversary of the date ser- vice is first made available. For the purpose of this agreement, the first year shall end one year after the date PGandE is ready to supply gas service from the Gas Facilities as shown on Exhibit "A" ' , as such date is established in PGandE s records. (b) Interest at the rate of 12.57 percent annually will be added to the unamortized balance of the Gas Ownership Fund before the current year's cost of ownership charges have been deducted. 6. The total cost of the Gas Facilities of $48,678 shall be subject to refund to the city, without interest, in the manner and as provided in the applicable section of the gas main extension rule in effect at the time service is established to each applicant in the District. Such refunds will be made annually following the anniversary of the date PGandE was first ready to supply service from the Gas Facilities, for a period of ten years. Any unrefunded balance of the Gas Extension Advance will be retained by PGandE at the end of such ten-year period. Any unused balance of the Gas Ownership Fund will be refunded to the City at the end of such ten-year period. 7. Any rearrangements, relocation, addition to or modification of the Gas Facilities as shown on Exhibit "A" after commencement of construction required for any reason other than the sole convenience of PGandE shall be paid for on demand and in advance by City. o 8. City shall, upon the installation of the Gas Facilities, execute and deliver to PGandE a deed or deeds in the form attached hereto as Exhibit "B" conveying the Gas Facilities to PGandE. 9. All Gas Facilities installed hereunder shall be and remain the property of PGandE. 10. PGandE shall, subject to all of the terms and conditions hereof, operate and maintain the Gas Facilities and provide gas service in accordance with PGandE's applicable rates and rules established by PGandE, from time to time, and on file with and authorized by the California Public Utilities Commission (Commission). 11. PGandE shall not be responsible for any delay in construction of the Gas Facilities resulting from shortage or labor or materials, strikes, labor disturbance, war, riots, weather conditions, governmental rule, regulation or order, including orders or judgments of any court or commission, delays in obtaining necessary rights of way, act of God, or any cause of condition of like or unlike characteristic which is beyond the control of PGandE. PGandE shall have the right, in the event it is unable to obtain supplies, materials or labor for all of its construction requirements, to allocate materials and labor to con- struction projects which, in its sole discretion, it deems most important to serve the needs of its customers and delay in construction hereunder resulting from such allocation shall be deemed a cause beyond PGandE's control. 12. (a) In the event that City has not completed its obligation under Sections 3 and 4 of this agreement within twelve (12) months following the date of this agreement, and PGandE is unable to proceed hereunder, PGandE shall have the right to terminate and/or supersede this agreement upon thirty (30) days' written notice to City and calculate any refundable or nonrefundable amounts that ay be due based on that portion of the Gas Facilities then completed, utilizing 4: the estimated costs developed by PGandE for this agreement. The superseding agreement, if any, shall be in the same form as this agreement, be executed by both parties hereto and shall provide that costs be allocated to the portion of the Gas Facilities then completed, if any, consistent with those costs estimated i)y PGandE for this agreement. (b) If this agreement is terminated as set forth above, City further agrees to reimburse PGandE for any engineering, surveying, right of way acquisition and other associated expenses incurred by PGandE. If such reimbur- sable expenses are greater or less than the excess of the refundable and/or nonrefundable payments, City shall pay to PGandE or PGandE refund, without interest, to City, as the case may be. 13. City hereby grants to PGandE all necessary rights of way and easements to install, operate, maintain, replace and remove the Gas Facilities on property within District along the routes shown upon the attached plans and specifications and City agrees to execute such other grants, deeds or documents as PGandE may require to enable it to record such rights of way and easements. If any part of the Gas Facilities is to be installed on property owned by others, City shall, if PGandE is unable to do so without cost to it, first procure from owners thereof in the name of PGandE, all necessary permanent rights of way and easements for the construction, operation, maintenance and replacement of the Gas Facilities upon such property in a form satisfactory to PGandE and without cost to it. ~ 14. This agreement does not provide for the installation of any gas . service extensions extending from the Gas Facilities to any existing or proposed building within the District by PGandE other than as provided in the attached plans and specifications. The obligations of both the property owners and PGandE 5: under PGandE's Gas Rule No. 16 on file with the Commission, relating to service installations, are not included in this agreement. 15.: City shall make any advance payments due PGandE under Sections 3 and 4 hereof only.from the proceeds of assessments levied and bonds sold in the assessment district proceedings. There shall be no liability upon City to make such advance paymentq from any other source of funds. PGandE shall not be obligated to proceed hereunder until sufficient funds have been made available and all advance payments due PGandE have been made. 16. (a)'City'shall indemnify PGandE, its officers, agents and employees, against all loss, damage, expense and liability resulting from injury to or death of person, including, but not limited to, employees of PGandE or City, or injury to property, including, but not limited to, property of PGandE or City, arising out of or in any way connected with the performance of this agreement, excepting only such loss, damage, expense or liability as may be caused by the sole negligence,or willful misconduct of PGandE. (b) PGandE shall indemnify City, its officers, agents and employees, against all loss, ~amage, expense and liability resulting from injury to or death of Person, including, but not limited to, employees of PGandE or City or injury to property, including, but not limited to, property of PGandE or City, arising out of or in any way connected with the performance of this agreement, excepting only such loss, damage, expense or liability as may be caused by the sole negligence or willful misconduct of City. 17. This agreement shall not be assignable, by operation of law or otherwise, unless both parties first consent thereto in writing and the assignee, in writing, assumes and covenants to perform all of the assignor's obligations hereunder. 6: 18. This agreement shall, at all times, be subjected to such changes or modifications by the Commission as the Commission may, from time to time, direct in the exercise of its jurisdiction. IN WITNESS WHEREOF, the parties have executed this agreement the day and year written below. Dated this 17th day of November , 1983. CITY OF SOUTH SAN FRANCISCO PACIFIC GAS AND ELECTRIC COMPANY · Walter Birkelo, City Manager (~anager, Commercial Department ATTEST: Mailing Address: City Hall 400 Grand Avenue South San Francisco, CA 94080 ~ttachments: Gas Rule No. 15 Exhibit "A" Exhibit "B" 7: EXHIBIT "~1" DEED OF CONVEYANCE - CITY OF SOUTH SAN FRANCISCO, a municipal corporation of the State of California, for good and valuable consideration, does hereby grant, bargain, sell and convey to PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, free .and clear of all liens and encumbrances, those certain gas distribution facilities heretofore installed and constructed within the Gateway Assessment District No. ST-82-2 pursuant to proceedings conducted by the City of South San Francisco under Resolution of Intention No. 74-82, adopted July 7, 1982 and as subsequently amended in the approximate locations shown on the sketch attached hereto marked Exhibit "A" and composed of the materials more particularly described thereon. Da ted: , 1983. ATTEST: CITY OF SOUTH SAN FRANCISCO BY: City Clerk Mayor THIS EXHIBIT IS NOT TO BE SIGNED ,