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Home My WebLink About4/16/2003 - STAFF REPORTS (10) DATE: March 26, 2003 TO: City Council FROM: Director of Finance &Treasurer RE: Treasurer's Investment Report as of February 28, 2003 Attached is the Treasurer's Investment Report as of February 28, 2003. The report includes the face value and coupon rate (if applicable) of the investments and the source for the market value estimate. Also included is information on the investments of Bond Issue reserve funds, and on loan repayment programs managed by a bank. The investments, in type, maturity and as a percentage of the total portfolio, are in compliance with the existing City Council-approved investment policywith one exception: the FICO notes($500,000, 4/16/18, 9.8%) exceed the 5 year limitation on maturities (Detail of Investments, Long Term Investments, Mortgage Pass Thru's). The investment in question was purchased prior to the adoption of the 5-year limitation. Since it appears to represent no additional risk either because of credit-worthiness or liquidity, earlier councils decided to allow it to be retained in the investment pool because the yield is higher than attainable under current market conditions. We recommend that this exception to the policy be continued. State law requires this report to be submitted within 30 days of the end of the quarter. Because all of the City's bank accounts may not be completely reconciled, there may be minor adjustments to the cash on hand in the checking account and to the valuation of the bond issue's money market investments. All other amounts are actual. The weighted average maturity(WAM) of the portfolio is 555 days. The maximum WAM allowed by the Investment Policy is 1095 days. The current portfolio and expected revenue cash flow will be sufficient to meet budgeted expenditure requirements for the next six months and the foreseeable future thereafter. Submitted by: Thomas M. Kanarr Treasurer treasrep CITY OF PALM SPRINGS 3/26/2003 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS FEBRUARY 28, 2003 On Call Deposits Adjusted Basis Category Total Percentage Checking Account $ 1,951,447 State Pool 18,390,000 $ 20,341,447 54.87% Short Term investments (1 year or less) Time Deposit 250,000 250,000 0.67% Medium Term Investments (1 year tv 3 years) Corporate Notes 994,130 U.S.Gov't Agencies 7,988,430 Time Deposit 1,000,000 9,982,560 26.93% Lang Term Investments U.S.Gov't Agencies 6,498,594 6,498,594 17.53% Total Invested Cash $ 37,072,601 100.00% *Some investments made pnor to the implementation of die current Investment Pohcy exceed the 5 year limit. treasrep TREASURER'S MONTHLY REPORT 3/26/22003 DETAIL OF INVESTMENTS FEBRUARY 28, 2003 Coupon Yield Adjusted (memo only) Prom Qm Par Value Ham Hatlmg Maturity to Mat,my Cost Has,, Camgory TOml N1,11Oet Value Source Maket Value On Call De osim Chafing-Bank-of America S N/A varebli, AAA open 116% $ 1,951,44] $ 5 1,951,447 $ 1,963,157 Local Agency Invest Food(LAIF) 18,390,000 variable N/A Open L95% 18,390,000 18,390,000 LAIF 15,390,OW 20,341,44J Short Tam wvcsmenis (1 ear or Tess) Corporate Notes Bear Steams Co.,Inc I,OW,000 6.13% A2A+ G2101103 6.21% 0 0 SHY Western Tr 1,002,940 Tome Deposit Downey Savings&Loan 250,W0 3.20% AAA 11/18/03 320% 250,000 250,000 Dovmey Savings 250,000 250,000 Medium Term Investments (1= a ears) Corporate Noe, GE Capital COT. 110001000 2 991 AAA 10/03/05 3.20% 994,130 1,015,400 BNY Western Tr I,W9,830 U.S Gov't Agency Sesu toes Federal National Morgage Assaiston 1,000,000 3.28% N/A 07/I5/04 3.28% 1,"," 1,II06,875 BNY Western Tr 1,010,312 Federal National Mortgage Association 1,"," 370% N/A 09/10/04 3]0% 1,1100,000 1,006,250 BNY Western Te 1,010,312 Federal National Mortgage Asmemman I,000,000 350% N/A 09/27/04 350% I,lligo' 0 1,006,875 BNYWestem Tr 1,010,625 Federal Home Loin Hood 1,"," 3.701 N/A 01/11/05 370% 1,000,WO 1,008,125 BNY Wesmm Tr 1,011,875 Federal National Mortgage Assecisdan 1,"," 4.05% N/A 0321/05 4.05% 989,680 1,001,563 BNY Western Te 1,W5,937 Federal Home usm Mortgage COT. I,WO,WO 4]0% N/A 12/06/05 4.70% 1,"," 1,007,100 BNY Wesmm Tr 1,011,710 Federal Nimial Morgage Assamtian 1,"," 2.75% N/A 02/06/05 275% 1,OW,000 I,003,750 ➢NY Wesmm Tr 0 Federal National Mortgage Association I,W0,000 2.65% N/A 02/13/06 2.65% 999,750 1,002,813 BNY Wesmm Tr 0 Time Deposit Washington Mutual Bail 1,000,In 3.47% AAA 01/28/06 3.47% I,OW,o00 I'M," Wasnngmm Mutual 0 9,982,560 Long Term Investment (3 ears w 5 ears) US Gov't Ageny Seeuvi fe Federal Hame Loam Hail 1,000,000 3.35% N/A 09/18/06 335% I,000,OW 1,010,312 BNYWesmm Tr 1,013,125 Federal Home Loan Bail 1,"," 5.15% N/A 02/06/07 5 15% 0 _ 0 BNY Westerm Tr 1,003,750 Federal Home Loan Bank 1,000,000 3.13% N/A 02/07/07 3.13% l'"'M 1,017,5W BNYWO,k.Tr 0 Federal Home Loan Hate: 1,"," 5455 N/A 03/28/07 5.45% 1,OW,000 I,002,812 HNY Wesmm Tr 1,009,66 Federal Natlomn Mmr aiam yaKe Asson 1,000,000 4.00% N/A Il/OS/OJ 4.00% l,000,000 1,018,125 BNY W.C.Te 1,020,0o0 Federal National Mortgage A,mckmom 1,",w 4.107, N/A 1226/07 4.107, 11000,000 1,021_50 BNY Wesmm Tr 1,021,250 Federal Home Loan Ban: 1,IIOo,0o0 380% N/A 02/04/08 3.90% 1,000,000 1,015,625 BNY Wesmm Tr Financing Camoration(FICO) 50Q00 0 0 990% N/A N106118 9.80% 498,594 J62,500 NamosBatd 750,62 6,498,594 Total Invesmtl Cash - $ 37,0J2,601 S 3J,498,321 S 31,395,135 treasrep TREASURER'S MONTHLY REPORT 3/26/2003 MISCELLANEOUS AND TRUST ACCOUNTS FEBRUARY 28, 2003 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Total Invested Cash & 37,072,601 $ 37,072,601 $ 37,072,601 Miscellaneous Accounts Petty Cash 2,625 N/A N/A open none 2,625 Revolving Fund-Bank of America -833 N/A N/A open none -833 Trust&Agency-Bank of America 897,745 N/A N/A open none 897,745 1911 Assessment Funds-Bank of America 0 N/A N/A open none 0 Rehab Loans(CDBG)-Washington Mutual 57,494 variable N/A open 0.65% 57,494 Downpymt.Asst.(Housing Fund)-Washington Mutual 32,960 variable N/A open 0.65% 32,960 - 989,991 Deposits Held In Trust Time Deposits (FDIC Insured) Downey S&L(Cat Cyn Country Club) 61,354 1.395. N/A 2/12/2004 1.39% 61,354 Downey S&L(Cohen,Mark) 15,499 1.19% N/A 9/2/2003 1.19% 15,499 Downey S&L(Donovan Bequest) 17,613 1.54% N/A 6/16/2003 1.54% 17,613 Downey S&L(Palmer Cable TV) 4,765 L34% N/A 1/19/2004 1.34% 4,765 Guaranty Bank(Coyote Springs Apt) 16,696 2.08% N/A 6/24/2003 2.08% 16,696 115,927 Total Cash Deposited $ 38,178,519 TREASURER'S MONTHLY REPORT treasrep CALCULATION OF INVESTMENT LIMITATIONS 03/26/03 FEBRUARY 28, 2003 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 N/A $20,591,447 1 year to 3 years 0.00% 50.00% 26.93% 3 years to 5 years 0.00% 30.00% 16.19% over 5 years N/A N/A 1.34% By Type of Investment: Bankers Acceptance - in total N/A 40.00% 0.00% Bankers Acceptance - single bank N/A 20.00% 0.00% Commercial Paper N/A 15.00% 0.00% Negotiable Certificates of Deposit N/A 30.00% 0.00% Corporate Notes N/A 20.00% 2.68% Money Market Mutual Funds N/A 10.00% 0.00% U.S. Government Agencies N/A 50.00% 39.08% Mortgage Pass Thru's N/A 10.00% 0.00% tteasrep TREASURER'S MONTHLY REPORT 03/26103 BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS FEBRUARY 28,2003 Ceo,a Yield Adju9ed tmemo only) Pri0r Qw. Par Value Ram Raring Mammy onMmm'.ty Cos[Basis Camgory Toml M,nket Value Source mnrke[Value 1989 AVas¢wetzrMlasmr Iease AIM Gaver=cot&Agency Po[if Private 2,193,025 v.Nble AAA Open 0.92% 2,193,025 2,193,025 BNY Western Tr 2,190,58E 2,193,025 1991/97/01 Cnttvenuon Center Cash I 1 I BNY Weamtu Tr I ABd Govenon'w&Agency Por[f Private 28,126 atiablo AAA .,on 0.92% 29,126 28,126 BNY Westom Tr 28,095 AIG luvesonent Agreement 3,536,955 v6.68% AAA 11/t/21 5.36% 3.536,955 3,536,955 BNY W.io,m To 3,536,955 3,565,082 1992 Atrpart Cash 1 I I BNY Wesmm To 100,385 ABM Shar[-Term lnveahnen[Trsy Pri.� 2W,799 .iable AAA open 0.92% 20Q999 20Q799 BNY Wes¢m Tr 804,557 13,erische Investment A,,. 1,207,600 vE.00% AAA 01/01M E.00% 1207,600 1207,600 BNY Western Tr 1,20E,M) 1,408,400 2WI Series B-Housing Cash 192 182 182 BNY Western Tr 182 AIM Govermnent&Agency PortfP,wete 3,838 vanahle AAA upon 0.92% 3,838 3,838 BNYWesWm Tr 3,833 AIG Toes..Agreement 468,105 5.22% AAA 08/01/21 5.22% 468,105 469,105 BNY Western Tr 469,105 4E2,125 IW4 Series A&B AIM Govonunent&Agency Pnrtf Private 1261,863 unable AAA open 0.92% 1261,863 1,261,863 BNY Weslem To E63,029 TMG Insurance lnvesbnenl Agr. 1,7W,935 v6.84% AA 0101/17 6,84% 1,7W.935 1,100,935 BNY Wesrern Tr 1,7W,935 2,962,798 1996 Multiple Captml Fncdiues Projeot AIM Gnvevtunmr&Agency Portf Prn,. 360 miable AAA open 0 92, 30 360 BNY Western Tr 359 AMBAC Investment Agreement 1,930,000 v6.40% AA 04/01/27 6.40% 1,E30,000 1,E30,M BNY Wesmm To 1,E30,000 1,730,360 1998 Anp0a GARB AIG lnveshnent Agn-Reserve 561221 5.50% AAA O1101/28 569% 561,221 561,221 BNYW.Wra Tr 561,221 AM Goverrunent&Agency Port Private 93,559 variable AAA open 9.20% 93,559 93,559 BNY Western Tr 389,86E 654,E80 Q=azr=p TREASURER'S MONTHLY REPORT 03/26/03 BOND ISSUE,RESERVE, DEBT SERVICE&RELATED FUNDS FEBRUARY 28, 2003 Coupon Yteld Adlosred (me our,lY) Priar Qa. Par Wn Rare Ra-g Mmrity I.MaWrlry Cast Burs Category Toml Makt Value Source Market Value 1998 Anport PFC AIGlnvesanem Agr -Reserve M9,728 570% AAA Ol/01/28 5.]0.%, 849,728 849,728 BNY Western Tr 849,728 AIM Govermiei[&Agency Porrf Nnw 142,089 vazUI. AAA open 0.92% 142,089 142,089 BNY Wee..Tr 5W,545 1998 Mul[ipte Capiml Wasmwarer 991,817 AIM Govetmnent&Agenry Portf Privam 301,212 vazi.ble AAA open 0.92% 301,212 301,212 BNY Wesmm Tr 30Q877 t998 Assessment Dismc[155 A&B 01,212 Cash 108,381 108,381 108,381 BNY Wesmm Tr 0 AIM GOvemme l&Agency Porrf Pnvare 307,709 vazmble AAA open 0.927, 30],]O9 30],]08 BNY Wesmm Tr 307,366 2001 Assessmen[Disvict 157/156 416,089 Cuh 207,401 207,401 207,401 BNY Western Tr 1,482 AIM Government&Agenry Portf Pnvam 162,923 variable AAA open O.T_% I62.823 162,823 BNY Western Tr 162,&12 370,224 Us,s X]-Vehicles Wells Forgo Govetmnent Money Mullet 856 vanable AAA open 956 856 Wells Argo 855 856 202 Palung Siocmre AIM Govetmnent&Agency Portf Private 1,149,383 variable AAA open 0.92% 1,149,383 1,149,383 BNY PJeeWm Tr 1,3W,564 1,149,383 ToaW, S 16,216,151 8 16,216,IS1 S I7,005,]]0 T-112 P.001/002 F^438 Mar-81-2003 04;28pm From- SOU&FRN CALIFORNIA - - Karhlnen DeRosa E D I S O N� Ration Manag r An EDISUN INTFIiNA!'IpNN_Ju campnny ' : I, Mr- Tom Kanarr City of Palm Springs 3200 E.Tahquitz way Palm Springs, CA 92262 March 31, 2002 Re: Franchise Statements Dear TOM: The attached Franchise Statement for the calendar year that ended on Dec. 31, 2002, is based on either gross annual receipts or the total miles of transmission and distribution lines located within your Jurisdiction. Routinely, we deliver the annual Franchise Statement no later than March 3V of each year. Due to my heavy work schedule today and not wanting to intrude on your time unexpectedlV, I will not be hand delivering this years statement_ I would like to Cali you next week and discuss any questions you may have. The funds will be electronically wired to the appropriate City account. In fact, you may have already been contacted to verify account information so the transfer can take place accurately-, This transfer will take place on or before the fifteenth of April, We have been asked to have the applicable city acknowledge receipt of the statement whether deliver by hand or by fax, I would appreciate it if you would acknowledge receipt of the year 2002 Franchise Statement by signing below and returning it to me via fax at (760) 202-4136. Sinc eiy, K thleen DeRosa P bliC Affairs Region Manager Received by� Date: 36100 Cajheclral Canyon M. Cathedral CITY,CA 92254 700.202-4211 Pax 76C-202.4I36 Mar-31-2003 04:26pm From- T-112 P 002/002 F-438 .JLr mu We 1k SV U 1HERN CALIFORNIA EDISON COMPANY FRANCIUS) STATEMENT For the Calendar Year Ended December 31,2002 City of Palm Springs Franchise Ordinance No. 824 Computation of franchise payment: Two percent (2%) of gross annual receipts arising from use, operation, or possession of franchise, but not less than one percent(1%) of gross annual receipts derived front sale of electricity within limits of City. Item a. Gross annual receipts derived from sale of electricity within limits of City. $ 83,699,739.89 b. One percent(1%) of gross annual receipts derived from sale of electricity within limits of City. L 836.997.40 Item 1. Gross annual receipts derived from sale of electricity in all service areas. $11,095,324,800 2. Original cost of electric plant, exclusive of electric plant held for future use,intangible plant, new construction work not yet in operation and rental properties. $20,981,467,785 3. Original cost of transmission and distribution systems,consisting of towers, poles,underground conduits, conductors,line transformers, services and appurtenances, $ 8,230,653,115 4, Gross annual receipts allocable to transmission and distribution systems: Item 1 x Item 3 $ 4,352,575,172 Item 2 5, Total miles of transmission and distribution systems. 71,245.40 6, Miles of transmission and distribution systems under franchise in City. 132.49 7. Gross annual receipts arising from use, operation, or possession of franchise: Item 4 x Item 6 $ 8,094,174.28 Item 5 8. Two percent (2%) of item 7. $ 161.883.4� FRANC USE PAYMENT $ 836.997.40 VERIRCATION CERTIRCAl,`E State of California County of Los Angeles I hereby certify that the foregoing `QQ Franchise Statement is based on the iL On March 2003,before me,Loretta C.Elkhaldy,personally appeared Company's accounting records for the Paul Alcala,personally known to me(or proved to me on the basis of year ended December 31,2002,and satisfactory evidence)to be the person whose name is subscribed to the accurately reflects the use of such within instrument and acknowledged to me that he executed the same in his records in the preparation thereof to authorized capacity,and that by his signature on the instrument,the person, the best of my knowledge and belief, or the entity upon behalf of which the person acted,executed the instrument. „y r WITNESS my hand and official seal. LORERA C.ELKHAtf3Y �r l o' Commisadw 01250135 ySignature •rifiJ �. Notay"Ic l ollfomfa E P ul cola ` Lm Ar4Wet county Ir Comm dues ton 16 Assistant Controller 0 rI David L.Steele o,. r _ r Principal Tax Advisor Tax Services • The Gas :{� Company, Southern California �'f�c„•. p Y _ Gas Company 101 Ash Street A�SempraEnergy'rompany Mad Loc.HQ06e San Diego,CA 9 2101-3 017 Tel:619-696-2246 Fax 619-696-2999 dsteele@sempra com March 26, 2003 City Clerk City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263-2743 Dear Sir or Madam: Enclosed is the certified franchise statement of Southern California Gas Company showing an amount due pursuant to Ordinance No. 59 of$128,376.79 for the calendar year 2002. Also enclosed is a statement showing the municipal surcharge due of$28,290.82 for the calendar year 2002. The total amount due of$156,667.61 will be paid by Electronic Fund Transfer to be initiated on April 15, 2003, and will settle into the City's bank on the following business day. The following banking information will be used to process your EFT payment: Bank Name: Bank of America ABA Number: 121000358 Account No.: 1431882000 If your banking information is incorrect or has changed, please contact me immediately. Sincerely, Enclosures SOUTHERN CALIFORNIA GAS COMPANY STATEMENT FOR THE CALENDAR YEAR 2002 PURSUANT TO THE FRANCHISE GRANTED BY THE CITY OF Palm Springs BY ORDINANCE NO. 59 SECTION A Computation of payment equivalent to two percent (2%) of the gross receipts of the grantee for the above period arising from the use, operation or possession of the franchise computed in accordance with the decision of the Supreme Court of the State of California in the cases of County of Tulare vs. City of Dinuba, et al., 188 Cal. 664 and County of Los Angeles vs. Southern Counties Gas Company, 42 Cal. 2d 129. A. Gross receipts applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties . . . . . . . . . . . . . . $ 6,436,436,558 Investment in Distributing Agencies in: Public and Private Rights of Way. . . . . . . . . . . . . . . . . $ 2,899,623,145 Public Highways only . . . . . . . . . . . . . . . . . . . . . . . . . . $ 719,479,714 Percent of Distributing Agencies to Total for: Public and Private Rights of Way . . . . . . . . . . . . . . . . . 45.04859% Public Highways only . . . . . . . . . . . . . . . . . . . . . . . . . . 11.17823% Total Gross Receipts from Operations for Period: Gross Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,621,263,376 Less: Uncollectible Bills . . . . . . . . . . . . . . . . . . . . . . . $ (6,564,877) Total Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,614,698,499 Gross Receipts applicable to Distributing Agencies in: Public and Private Rights of Way (45.04859% x$2,614,698,499) . . . . . . . . . . . . . . . . $ 1,177,884,807 Public Highways only (11.17823% x$2,614,698,499) . . . . . . . . . . . . . . . . . $ 292,277,012 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System . . . . . . . . . . . . . . . . . . 48,501.5511 mi. Mileage in Highways . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,905.3640 mi. Percent of Mileage in Highways to Total Mileage . . . . . 82.27647% Gross Receipts applicable to Mileage to Highways for: Public and Private Rights of Way (82.27647% x$1.177,884,807) . . . . . . . . . . . . . . . . . $ 969,122,040 Public Highways only (100%x$292,277,012) . . . . . . . . . . . . . . . . . . . . . . . $ 292,277,012 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,261,399,052 Total Mileage in Highways as above . . . . . . . . . . . . . . . . 39,905.3640 mi. Mileage in Highways of this Franchise 197.7732 mi. Percent of Mileage of this Franchise to Total Mileage in Highways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.49561% C. Gross Receipts applicable to this Franchise (0.49561%x$1,261,399,052) . . . . . . . . . . . . . . . . . . . $ 6,251,620 D. Amount due based on 2% of the above applicable Gross Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 125.032.40 Palm Springs SECTION B Computation of payment of one percent(1%) of the gross receipts of the grantee for the period derived from the sale of gas within the limits of the city. Gross Billings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,891,698.86 Less: Uncollectible Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (54,019.89) Gross Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,837,678.97 Amount due based on (1%) of the above Gross Receipts . . $ 128,376.79 AMOUNT PAYABLE The Company is required to make payment on the basis of the larger of the two amounts shown above, namely, the amount due under Section B in the sum of$128,376.79. 2 • SOUTHERN CALIFORNIA GAS COMPANY MUNICIPAL PUBLIC LANDS USE SURCHARGE STATEMENT FOR CALENDAR YEAR 2002 MUNICIPAL SURCHARGE DUE TO THE CITY OF Palm Springs SECTION A Computation of payment equivalent to two percent (2%) of the imputed revenue of transportation customers of the grantee for the above period in accordance California Public Utilities Code § 6354(b). A. Imputed Revenue applicable to Distributing Agencies in Highways of which this Franchise is a part Total Investment in Physical Properties . . . . . . . . . . . . . . . $ 6,436.435,558 Investment in Distributing Agencies in: Public and Private Rights of Way . . . . . . . . . . . . . . . . . . $ 2,899,623,145 Public Highways only . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 719,479.714 Percent of Distributing Agencies to Total for: Public and Private Rights of Way . . . . . . . . . . . . . . . . . . 45.04869% Public Highways only . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.17823% Total Imputed Revenue from Transportation Customers for Period: Imputed Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 560,280,679 Imputed Revenue applicable to Distributing Agencies in: Public and Private Rights of Way (45.04859% x$660,280,679) . . . . . . . . . . . . . . . . . . . $ 252,398,546 Public Highways only (11.17823% x$560,280,679) . . . . . . . . . . . . . . . . . . . $ 62,629,463 B. Mileage of Main in Pipeline System Total Mileage in Pipeline System . . . . . . . . . . . . . . . . . . . 48,501.5511 mi. Mileage in Highways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,905.3640 mi. Percent of Mileage in Highways to Total Mileage . . . . . . 82.27647% Imputed Revenue applicable to Mileage to Highways for: Public and Private Rights of Way (82.27647%x$252,398,546) . . . . . . . . . . . . . . . . . . . $ 207,664,614 Public Highways only (100% x$62,629,463) . . . . . . . . . . . . . . . . . . . . . . . . $ 62.629,463 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 270,294,077 Total Mileage in Highways as above . . . . . . . . . . . . . . . . . 39,905.3640 mi. Mileage in Highways of this Franchise 197.7732 mi. Percent of Mileage of this Franchise to Total Mileage in Highways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,49561% C. Imputed Revenue applicable to this Franchise (0.49561% x$270,294,077) . . . . . . . . . . . . . . . . . . . . . . $ 1,339,604 D. Amount due based on 2% of the above applicable Imputed Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,792.08 Palm Springs SECTION B Computation of payment of one percent(1%) of the imputed revenue of the grantee for the period derived from the transportation of gas within the limits of the city. Imputed Transportation Revenue within the city . . . . . . . . . . . . $ 2,277,186.01 Amount due based on (1%) of the above Imputed Revenue . . . $ 22,771.86 MUNICIPAL SURCHARGE AMOUNT PAYABLE PURSUANT TO CPUC § 6354(b) The amount due is the larger of the two amounts shown above, namely, the amount due under Section A of. . . . . . . . . $ 26,792.08 The total amounts calculated and collected pursuant to Public Utilities Code §6353 were greater than the total amounts calculated pursuant to Public Utilities Code§ 6354(b). Your share of this difference. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,556.04 ----------- --------- Total amount due . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,348.12 Municipal Surcharge Bad Debts . . . . . . . . . . . . . . . . . . . . . . . . $ (57.30) --------------------- Netamountdue . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28.290.82 2 CERTIFICATION I, the undersigned, say: am Tax Manager, Corporate Tax for Sempra Energy and its subsidiary Southern California Gas Company. I am duly authorized to prepare and file the foregoing statement on its behalf; and I hereby verify that the same is true and correct to the best of my knowledge and belief. I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on March 25, 2003, at San Diego, California. Terry—F.F. Tax Manager, Corporate Tax If additional information is required, please address inquiries to: Southern California Gas Company ATTN: Tax Manager - Transactional 101 Ash Street/ HQ06B San Diego, CA 92101-3017