Ordinance No. 11221'i
2I
3''
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
ORDINANCE NO. 1122
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING THE CODE OF THE CITY OF VERNON,
CALIFORNIA, 1959, BY ADDING A NEW CHAPTER 31
RELATING TO THE CITY OF VERNON'S NATURAL GAS SYSTEM
AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES
IN CONFLICT THEREWITH
WHEREAS, the City of Vernon (the "City") is a municipal
corporation and a chartered city of the State of California organized
and existing under its Charter and the Constitution of the State of
California; and
WHEREAS, the City Council has the authority to operate a gas
system, to make rules and regulations, and to establish rate schedules
therefore pursuant to Article XI, Section 9, of the California
Constitution; and
WHEREAS, on June 20, 1991, the City Council of the City of
Vernon adopted Resolution No. 5946 approving the establishment of a Gas
Municipal Utility Department; and
WHEREAS, the City of Vernon intervened before the California
Public Utilities Commission to request the establishment of wholesale
rate schedules so that the City can take wholesale service from Southern
California Gas Company for resale to various customers within the City
of Vernon; and
WHEREAS, the City Council of the City of Vernon desires to
amend the Vernon City Code to add a new Chapter 31, Articles I and II
to the Code relating to the City of Vernon's na"--ral gas distribution
system.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
land correct.
SECTION 2: The City Council of the City of Vernon hereby
adds a new Chapter 31, Articles I and II, to the Vernon City Code as
set forth in Exhibit A which is attached hereto and incorporated by
reference.
SECTION 3: Any ordinance, part of an ordinance, or code
section in conflict with this Ordinance is hereby repealed.
SECTION 4: If any section, subsection, sentence, clause,
phrase or word of this Ordinance is for any reason held to be void or
unconstitutional, such decision shall not affect the validity of the
remaining portions of this Ordinance; it being the intention of the
City Council of the City of Vernon to pass and adopt this Ordinance and
each section, subsection, sentence, clause or phrase thereof
irrespective of the fact that one or more of the sections, subsections,
clauses, sentences or phrases thereof may be declared to be invalid or
unconstitutional.
SECTION 5: There being no newspaper printed, published or
circulated in the City of Vernon, the City Clerk is hereby directed to
certify to the passage of this Ordinance and shall post the same, or
cause the same to be posted, within fifteen (15) days after its passage
in accordance with Section 36933 of the Government Code, in three (3)
of the most public places in the City of Vernon, to wit: the northwest
corner of 38th Street and Santa Fe Avenue, the northeast corner of
Leonis Boulevard and Pacific Boulevard, and on the bulletin board
located outside on the wall near the second floor entrance to the City
- 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Hall of said City, located at 4305 Santa Fe Avenue, all in the City of
Vernon, County of Los Angeles, State of California.
SECTION 6: This Ordinance shall be in full force and effect
thirty (30) days from and after its passage of the same.
APPROVED AND ADOPTED this to day of September, 2006.
ATTEST:
BRUCE V. MALKENHORST, JR.
Acting City Clerk
LEONIS C. MALEWRG, Mayor
- 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Ordinance, being Ordinance
No. 1122 was duly and regularly introduced at a regular meeting of the
City Council of the City of Vernon, held on Wednesday, August 16, 2006,,
and thereafter finally adopted at a regular meeting of the City Council'.
held on Tuesday, September 5, 2006, and thereafter was duly signed by
the Mayor of the City of Vernon, by the following vote:
(SEAL)
AYES: Councilmen: Mayor Malburg, Ybarra, Davis,
Gonzales
NOES: Councilmen: None
ABSTAINED: Councilmen: None
ABSENT: Councilmen: McCormick
&�7=
BRUCE V. MALKENHORST, JR.
Acting City Clerk
- 4 -
EXHIBIT
0
1
2
3
4
5
6
7!
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
EXHIBIT "A"
CHAPTER 31. VERNON NATURAL GAS SYSTEM
ARTICLE I. Gas Distribution.
Sec. 31.1. Title.
The natural gas generation, transmission and distribution system
of the City of Vernon shall be referred to as the Vernon Natural Gas
System.
Sec. 31.2. General rates.
Any rates or change in the rates to be charged and collected for
gas supplied by the Vernon Natural Gas. System shall be set by
resolution of the city council.
Sec. 31.3. Maintenance of rate schedules.
The city clerk is hereby directed to keep and maintain three
copies of the rate schedules applicable to the Vernon Natural Gas
System in the office of the city clerk, and to make them available on
request for examination in said office.
Sec. 31.4. Reserved.
Sec. 31.5. Reserved.
Sec. 31.6. Reserved.
Sec. 31.7. Reserved.
Sec. 31.8. Reserved.
Sec. 31.9. Reserved.
Sec. 31.10. Reserved.
Sec. 31.11. Reserved.
Sec. 31.12. Reserved.
Sec. 31.13. Reserved.
iA21
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Sec. 31.14. Reserved.
Sec. 31.15. Reserved.
ARTICLE II. Rules for Gas Service.
Sec. 31.16. Maintenance of rules.
The city clerk is hereby directed to keep and maintain three
copies of the rules for gas service of the Vernon Natural Gas System
in the office of the city clerk and to make them available on request
for examination in said office.
Sec. 31.17. Adoption of rules.
The rules for gas service for the Vernon Natural Gas System shall
be adopted by resolution of the city council.
A-2
SUPPORTING
DOCUMENTS
mm
CERTIFICATE
STATE OF CALIFORNIA )
SS
COUNTY OF LOS ANGELES)
I, Manuela Giron, Deputy City Clerk of the City of Vernon,
County of Los Angeles, State of California, hereby certify that
the attached is a full and complete copy of:
ORDINANCE NO. 1122 - AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF VERNON AMENDING THE CODE OF
THE CITY OF VERNON, CALIFORNIA, 1959, BY ADDING A
NEW CHAPTER 31 RELATING TO THE CITY OF VERNON'S
NATURAL GAS SYSTEM AND REPEALING ALL ORDINANCES OR
PARTS OF ORDINANCES IN CONFLICT THEREWITH
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official Seal of the City of Vernon, County of Los Angeles,
State of California, on this llth day of September 2006.
SEAL:
Manuela Giron
Deputy City Clerk
September 27, 2006
Coded Systems
Attn: Mary Beth Smith
120 Main Street
Avon, New Jersey 07717
Dear Ms. Smith:
Enclosed herewith is a copy of Ordinance No. 1122 to be incorporated
into the Vernon Municipal Code.
Prior to the final incorporation of this supplement, please FAX or
mail us a draft copy for our review. Our fax number is 323/826-1438.
We will notify you at our earliest convenience if we are in
concurrence, or of any discrepancies.
After final review, forward 66 sets of the supplement to my attention.
If you have any questions, please call me at 323/583-8811 ext. 266.
Very truly yours,
Nelly Giron,
Deputy City Clerk
NG:dr
c: Ordinance No. 1122
Coded Systems File
i
!i
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: September 27, 2006
TO: Ali R. Nour, Fiber Optic Manager/Gas System Manager
FROM: Nelly Giron,,Deputy City Clerk
RE: Ordinance No. 1122 - An Ordinance of the City Council
of the City of Vernon Amending the Code of the City of
Vernon, California, 1959, By Adding a New Chapter 31
Relating to the City of Vernon's Natural Gas System
and Repealing All Ordinances or Parts of Ordinances in
Conflict Therewith
Transmitted herewith is a copy of Ordinance No. 1122 referenced
above, which was approved by City Council on September 5, 2006.
Thank you.
NG:dr
c: Ordinance No. 1122
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss
CITY OF VERNON
I, Manuela Giron, Deputy City Clerk, of the City of Vernon do hereby
certify that on the 12 th day of September, 2006, 1 did post three
copies of:
ORDINANCE NO. 1122 - An Ordinance of the City Council of the City
of Vernon Amending the Code of the City of Vernon, California,
1959, By Adding a New Chapter 31 Relating to the City of Vernon's
Natural Gas System and Repealing all Ordinances or Parts of
Ordinances in Conflict Therewith.
On each of the following places, to wit: on the bulletin board outside
the main entrance to the City Hall of the City of Vernon located at
4305 Santa Fe Avenue; at the northwest corner of 38 th Street and Santa
Fe Avenue; the northeast corner of Leonis Blvd., and Pacific Blvd.,
all in said City, there being no newspaper of general circulation
printed and publis ed in the City of Vernon.
Date:
Manuela Giron
Deputy City Clerk
State of California )
)ss
County of Los Angels)
On ko\ m1a, before me, VC)
personally appeared Manuela Giron I
personally known to me (or proven to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the
instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity, and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal
MARTS. VALEN HA SZUELA
COMM41494711
NOTARY PUBLIC-CALIFORNIA UI
Los Angeles C My Comm. Expires JUNE&Y6 j
CITY OF VERNON
NATURAL GAS TRANSPORTATION AGREEMENT
This Agreement is entered into this first day of December, 2006, by and between the CITY OF
VERNON, hereafter referred to as "Vernon" or "City" or "COV" and BAKER COMMODITIES
INC, a Delaware Corporation, hereafter referred to as "Customer."
NOW THEREFORE, in consideration of the mutual undertakings set forth below, the parties
agree as follows:
SECTION 1- TERM
This Agreement shall be effective the latter of 1) when COV is first able to physically connect to
and deliver natural gas service to Customer's facility, or 2) December 22, 2006, and may
terminate not sooner than midnight on January 31, 2007. At the end of the initial term, this
Agreement shall continue on a month to month basis unless terminated by 30 day written notice
from one party to the other.
This Agreement shall be subject to prior termination pursuant to (or consistent with) any final
order of a federal, state or local government entity having jurisdiction over this arrangement or
the parties herein by mutual agreement. Such termination shall not relieve either parry of the
obligation to discharge any financial obligations arising hereunder prior to or as a result of
termination or to correct any then -existing gas imbalance between deliveries and receipts arising
during the term hereof (to the extent not prohibited by such final order).
SECTION 2 - RATES
Customer requests and the City will provide gas service(s) in accordance with Schedule G-3
(Large Commercial Gas Transportation) and City gas rules and regulations. Customer has
reviewed and inspected the applicable City rates, rules, and regulations for gas service(s) and
agrees to comply therewith. This Agreement shall at all times be subject to the rules and
regulations of the City of Vernon, which may be changed or modified by the City Council from
time to time in the exercise of its jurisdiction.
Page 1 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 3 - SCOPE
The City of Vernon, or an authorized agent in service to Vernon, shall accept into the SoCalGas
system Gas nominated on behalf of Customer. Customer gas shall be transported on SoCalGas
using firm service under Vernon's wholesale transportation agreement with SoCalGas. The City
shall use its own transmission and/or distribution system to provide delivery to Customer within
the City of Vernon. The Gas delivered to the Customer will not necessarily be the Gas that the
Third -Party Supplier delivered into SoCalGas for delivery to City of Vernon, but will be
equivalent in value on a Btu basis.
The terms and conditions of the transportation service to be provided by City to Customer shall
be as set forth in the applicable rate schedules of the City of Vernon.
Customer shall provide City its monthly and annual expected natural gas consumption, as well as
its maximum daily contract quantity based on its currently -installed gas -burning equipment
(Exhibit A, attached hereto). Customer shall revise these quantities whenever it experiences
significant changes in its expected gas usage.
SECTION 4 FINANCIAL OBLIGATION
A. Monthly Billing Statement. Each month on or before the twentieth (20th) day of the month
Vernon shall send Customer an invoice for the net charges payable hereunder for the preceding
month. Such charges shall be based upon this Agreement and the appropriate prevailing Vernon
Rate Schedule. All net charges for gas delivered to Customer shall be billed to Customer at the
billing address designated hereunder.
B. Payment. Customer payments must be received no later than (20) days of receipt by
customer. Failure to timely pay may result in immediate termination of gas service to Customer.
Customer may, at City of Vernon's sole discretion, be charged a late charge on any delinquent or
unpaid balance, according to the then prevailing Vernon Municipal Code applicable ordinances
and/or resolutions.
C. In -Lieu of Tax and Franchise Fee: The base rates and charges have been increased by 3
percent to reflect payments in -lieu of tax and franchise payments.
D. Adjustments. All gas quantities transported and/or delivered to Vernon under this Agreement
shall be billed based on the best information available to Vernon at the time of billing, but shall
be subject to adjustment based on subsequent adjustments.
Page 2 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 5 - RELATED OBLIGATIONS
A. Title/Indemnity. Customer warrants title to all gas delivered to Vernon on behalf of
Customer. Customer shall indemnify and hold harmless Vernon, agents serving Vernon, and
SoCalGas from and against any and all claims, actions, liabilities, taxes, royalties, liens, charges,
damages or costs (including reasonable attorneys' fees for in-house or outside counsel) related to
gas delivered or failed to be delivered to the allocation points which have been nominated and
confirmed with Vernon and SoCalGas hereunder, and arising out of or on account of this
Agreement in general, except for claims arising out of the gross negligence of Vernon.
B. Replacement of Gas. Vernon shall have no obligation to notify Customer or to replace or
substitute for Customer any quantities of gas not delivered to SoCalGas or accepted by SoCalGas
in connection with this Agreement.
C. Assignment of Rights and Obligations. The rights and obligations under this Agreement
shall not be assigned by either party without the prior written consent of the other party, which
consent may be withheld at the sole discretion of Vernon.
D. Customer Responsibility. Vernon shall bill and Customer shall pay any costs incurred by
Vernon because of any failure by third parties, acting as agents for Customer, to perform their
obligations related to this Agreement (including reasonable attorneys' fees whether for in-house
or outside counsel). Vernon shall bill and Customer shall pay any and all penalties, taxes, or
other related or similar charges or fees incurred by Vernon or SoCalGas under an interstate or
intrastate supplier contract as a result of this Agreement and accommodating transportation
service shall be paid by the Customer. Under no circumstances shall Vernon be liable to any
third -parry producer, marketer, broker, or other supplier of gas under this Agreement for any
portion of the purchase price for the Customer's natural gas supplies, including but not limited to
the gas commodity, transportation, tariffs, taxes, fees, and surcharges.
E. Regulatory. This Agreement, including but not limited to Vernon's Natural Gas Rates
Schedules and Rules, are subject to revision and modification as a result of legislative or
regulatory action, including CPUC and/or Federal Energy Regulatory Commission proceedings
and orders.
The rates and terms of firm transmission service on the SoCalGas system are now under review
at the CPUC in Application No. A. 04-12-004 concerning the establishment of firm access rights
(FARs) on the SoCalGas system. Should the CPUC create FARs on the SoCalGas system,
Customer and the City of Vernon shall cooperate to ensure that the City of Vernon has access to
the FARs that may be associated with the Customer's historical use of the SoCalGas system.
Such cooperation may include the assignment of the Customer's FARs to the City of Vernon.
F. Consequential Damages. Except as provided herein, neither party shall be assessed any
special, punitive, consequential, incidental, or indirect damages, whether in contract or tort, for
any actions or inactions related to this Agreement or the delivery or non -delivery of gas,
curtailment or transportation thereof.
Page 3 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 6 — NOTICES, BILLING, CUSTOMER CONTACT
Any notice, request, demand, or statement provided for in this Agreement shall be in writing and
shall be sent to the parties hereto at the following addresses, and shall be effective upon receipt:
Notice, correspondence, and statements:
Customer: Vernon:
Attn: Dennis Luckey Attn: Gas System Manager
Executive Vice President City of Vernon
Baker Commodities, Inc. 4305 Santa Fe Avenue
4020 Bandini Blvd City of Vernon, CA 90058
Los Angeles, CA 90023 Phone (323) 583-8811
Office Phone (323) 268-2801 Fax( 323) 587-7596
Fax (323) 267-3614
Operations and Nominations Contact
Customer: Vernon:
Attn: Carl Baclit (Same as above)
Office Manager
Baker Commodities, Inc.
4020 Bandini Blvd
Los Angeles, CA 90023
Office Phone (323) 268-2801
Fax (323) 268-5166
Billing:
Customer:
Attn: Carl Baclit
(Same as above)
SECTION 7 JURISDICTION
This Agreement shall be governed and construed in accordance with the laws of the State of
California.
Page 4 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
SECTION 8 - CAPTIONS AND ORGANIZATION
The various headings and numbers herein and the groupings of the provisions of this Agreement
are for the purpose of convenience only and shall not be considered a part hereof, and shall have
no effect on the construction or interpretation of any part of this Agreement.
SECTION 9 - ENTIRE AGREEMENT
This Agreement in conjunction with Vernon's Gas Rates and Rules set forth the entire
understanding of the parties and supersedes any prior understandings or discussions (whether
written or oral) and incorporated herein by reference all Vernon Municipal Codes, ordinances
and resolutions existing or as amended from time to time. In the event of a conflict between this
Agreement and Vernon's Gas Rates and Rules, the language of this Agreement shall prevail.
This Agreement shall only be amended by an instrument in writing properly executed by both
parties or as superseded by changes in the City of Vernon Municipal Code, resolutions,
ordinances, or other applicable rules and regulations.
IN WITNESS WHEREOF, the authorized representatives of the parties have executed this
agreement in duplicate originals.
CUSTOMER:
Customer Name Baker Commodities Inc.
Signed
Printed lv'in /s —lo_ckeU
T,
TitleecZl.l
CITY OF VERNON:
Signed
Printed
Title-<-��L�t�V�
Page 5 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06
NATURAL GAS TRANSPORTATION AGREEMENT
EXHIBIT A
Location name
Baker Commodities Inc
Location address
4020 Bandini Blvd, Vernon, CA
Contact person
Carl Baclit Office Manager
Office phone
(323) 268-2801
Cell phone
24 hr #1 (323) 353-6918
Emergency phone
24 hr #2 (323) 353-6917
Natural gas supplier
BP
Supplier contact
Joe Alves
Supplier phone
(949) 251-8696 x108
Estimated Monthly Quantities 210,000 Therms per Month
Estimated Annual Quantity
2,520,000 Therms per Year
Maximum Daily Quantity
Not Applicable
Regular days of operation
Monday through Saturday
Page 6 of 6
City of Vernon Council Resolution 9134, Ordinance 1122, effective 10/6/06