The URL can be used to link to this page

Home My WebLink AboutA2723 - SO CAL GAS UTILITY OWNERSHIP AD 155 So Calif Gas Co AD 155 Utility Ownership z1a 3 AGREEMENT #2723 / CITY OF PALM SPRINGS Res 16785 6-7-89 c-,-- ASSESSMENT DISTRICT NO. 1- - - -- - - -- �^ /Zaln� NATURAL GAS IMPROVEMENTS ��V,(C �- ✓� �7) SOUTHERN CALIFORNIA GAS COMPANY THIS AGREEMENT is made by and between the CITY OF Palm Springs , a municipal corporation ("City") , and SOUTHERN CALIFORNIA GAS COMPANY, a California corporation ("SoCalGas") . 1. RECITALS : This agreement is made with reference to the following facts, among others ; 1. 1 The City Council. of the City has undertaken proceedings pursuant to the Municipal Improvement Act of 1913 , to form a special assessment district known and designated as ASSESSMENT DISTRICT NO. 155 (hereinafter referred to as the "Assessment District" or "District") , and the area proposed to be included within said Assessment District is set forth and shown on the map marked Exhibit "A" attached hereto and incorporated by this reference. 1. 2 The City Council has, by Resolution, authorized the initiation of the proceedings for the Assessment District. 1. 3 SoCalGas is subject to the jurisdiction and regulation of the California Public Utilities Commission and has been issued a certificate of public convenience and necessity authorizing it to provide natural gas service to the territory within the Assessment District. 1. 4 The improvements to be constructed and installed include, among other things, the installation of natural gas facilities (collectively referred to hereinafter as the "Natural Gas Improvements") which are shown on Exhibit B attached hereto and incorporated herein by this reference. 1. 5 In accordance with Streets and Highways Code Section 10110, the parties desire to enter into an agreement to provide for the design, construction and installation of the Natural Gas improvements which are to be owned and managed by SoCalGas, and to provide for the payment of: its construction costs. 2 . AGREEMENT: NOW, THEREFORE, in consideration of the recitals and mutual obligations of the parties as herein expressed, City and SoCalGas agree as follows: 2 . 1 This Agreement shall become effective upon receipt by City of the proceeds from the sale of any bonds or bond anticipation notes for the Assessment District, and City shall so advise SoCalGas of such receipt. • _2- 2 . 2 Upon receipt of written notice from City that City has confirmed the assessment for the Assessment District, has ordered the construction and installation of the Natural Gas Improvements, has sold the bonds therefore, and has available the necessary funds in the District's special improvement fund, SoCalGas shall construct or cause to be constructed the Natural Gas Improvements according to the plans and specifications shown on Exhibit "B. " 2 . 3 SoCalGas has provided the City with an estimate of the cost of the construction and installation of the Natural Gas Improvements. Said estimate is based upon the cost of such construction, if SoCalGas were to proceed with the construction thereof as of the date of this Agreement. Said estimate and the cost of construction includes a cost component to cover SoCalGas' liability for federal taxes as authorized by the California Public Utilities Commission. In the event the federal tax rate changes, or if the State of California imposes a tax based upon the value of the Natural Gas Improvements, the cost of construction shall include the amount of any such tax: Upon receiving the proceeds from the sale of the bonds for the Assessment District, and prior to construction of the Natural Gas Improvements, City shall pay from the special improvement fund for the Assessment District to SoCalGas a deposit in an amount equal to SoCalGas ' estimate of the cost of the construction and installation of the Natural Gas Improvements. SoCalGas shall utilize the amount of such deposit solely for the purpose of the construction and installation of the Natural Gas Improvements and for no other purpose. Upon the completion of the construction of the Natural Gas Improvements, SoCalGas shall refund to City any excess of the amount of such deposit over the actual cost of the construction and installation of the Natural Gas Improvements. However, if the actual cost of the construction and installation of the Natural Gas Improvements exceeds the amount of said deposit, City shall pay such excess within thirty (30) days after receipt form SoCalGas of an invoice for such excess. 2 . 4 SoCalGas shall make refunds to City pursuant to its Rule 20 on file and approved by the California Public Utilities Commission, as the same may be revised from time to time. Said Rule 20 is incorporated herein as a part of this Agreement. 2 . 5 The use, maintenance and operation of the Natural Gas Improvements within the public streets of the City shall be subject to all of the terms and conditions of the franchise granted to SoCalGas by City as set forth in Ordinance No. 59 of City. 2 . 6 SoCalGas shall furnish and supply or cause to be furnished and supplied by others, all plans, specifications, drawings, administration, supervision, inspection or any other services required for the construction and installation of the Natural Gas Improvements by SoCal Gas. - 3 - 2 . 7 SoCalGas shall coordinate the work it performs or causes to be performed with other work to be done by City or its general contractor . 2 . 8 The work to be performed by SoCalGas under this Aareement shall not be changed, except as approved by City . Any changes required by City shall be paid for by City. Prior to ccmpletion of the work , SoCalGas , at its own cost and expense, may enlarge or alter all or any part of the Natural Gas Improvements to be constructed pursuant to this Agreement; provided that such enlarged or altered facilities perform a function eaual to or better than the function proposed to be provided by the Natural Gas Improvements shown on Exhibit S . 2 . 9 Upon completion of the installation and construction of the Natural Gas Improvements by SoCalGas , title to the Natural Gas Improvements shall be permanently and irrevocable vested in SoCalGas and constitute part of its system and shall thereafter be used, operated and maintained by it as part of its system. 2 .10 This Agreement shall at all times be subject to such changes or modifications by the Public Utilities Commission of the State of California ( "CPUC" ) as said Commission may direct , from time to time, in the exercise of its jurisdiction. 2 . 11 SoCalGas shall construct all subsequent natural gas system extensions and services in accordance with its rules then on file with and approved by the CPUC. SOCalGas agrees that it shall not enter into any main extension refund agreement with a developer pertaining to facilities installed pursuant to this Agreement . 2 .12 Any notice authorized or required by this Agreement shall be deemed to have been sufficiently given if and when sent by United States mail , postage prepaid, addressed as follows: To City: City of palm Springs 3200 E. Tahquitz-McCallum Way (Palm Springs, California KM2 Attention : John Mangione 0 - 4 - To SoCalGas : Southern California Gas Company 211 N. Sunrise Palm Sprinns, California g2Z62 Attention: Kpith lnhncnn 2 . 13 The provisions of the Agreement shall inure to the benefit of and be binding upon each of the parties and their successors and assigns . IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year written below . CITY OF Palm Springs Date : P1, City Manager ATTEST: Y A1u7 Y City—Clerk B" is ,. R"y',, v!(n...'7`��Y.,..�.'-?-4� APPROVED AS TO FORM: City Attorney, City of rp,41,., BY: SOUTHERN CALIFORNIA GAS COMPANY (, r Date : lf� a 6 1 By: _. _.� � ) ��. �.,A�_r,j —� Pamela M. Fahey Title : Manager of area Sales