HomeMy WebLinkAboutReso 161-1983 RESOLUTION NO. 161-83
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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.
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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
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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.
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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
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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
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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
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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.
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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"
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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
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