Resolution No. 5751
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RESOLUTION NO. 5751
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
THE EXECUTION OF A CONTRACT FOR GAS
SERVICE BY AND BETWEEN THE CITY OF VERNON
AND THE SOUTHERN CALIFORNIA GAS COMPANY
PROVIDING FOR THE CITY'S PURCHASE OF GAS
FROM OTHER SUPPLIERS (PRIME ACCOUNT NUMBER
142-011)
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WHEREAS, the Southern California Gas Company
8 ("SoCalGas") has filed with the Public utilities commission of
9 the State of California ("CPUC") rate schedules and rules
10 applicable to service of natural gas which are open to public
11 inspection at the offices of SoCalGas; and
12 WHEREAS, the City of Vernon has installed two gas
13 turbines for electric generation at its Vernon Diesel Plant; and
14 WHEREAS, the City of Vernon and SoCalGas have entered
15 into a previous agreement which provides for the sale of gas to
16 Vernon by SoCalGas; and
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WHEREAS, the City of Vernon desires to enter into a
18 Contract for Gas Service with SoCalGas to provide for gas sales
19 and transportation service and SoCalGas is willing to furnish
20 such service under the terms and conditions as set forth in said
21 agreement and the applicable CPUC rules and rate schedules; and
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WHEREAS, this new agreement will replace the existing
23 agreement.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
25 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
27 hereby finds and determines that the recitals contained
28 hereinabove are true and correct.
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SECTION 2: The City council of the City of Vernon
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hereby approves the Contract for Gas Service, a copy of which
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has been presented to the City Council concurrently with this
resolution and the City Council hereby orders said Contract to
be received and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
Contract for, and on behalf of, the City of Vernon.
SECTION 4:
The City Council hereby delegates to the
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City Administrator or, in his absence, the Director of Light and
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Power, the authority to execute purchase orders for natural gas
with other third party sellers in order to reduce the cost of
fuel for the operation of Vernon's electric generation
equipment.
SECTION 5: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 15th day of May, 1990.
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MALKENHORST, City Clerk
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~ '_ ~ (X#:tf.J::[/U/
THOMAS A. YB ,Mayor Pro Tem
ATTEST:
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23 BRUCE V.
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STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 5751, was duly adopted by the City Council of the
ci ty of Vernon at a regular meeting of the City Council duly
held on Tuesday, May 15, 1990, and thereafter duly signed by the
Mayor of the City of Vernon.
A-
BRUCE V. MALKENHORST, City Clerk
(SEAL)
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CITY COUNCIL
OFFICERS
LEONIS C. MALBURG, Mayor
THOMAS A. YBARRA, Mayor Pro- Tern
Wm. "BILL" DAVIS
H. "LARRY" GONZALES
W. MICHAEL McCORMICK
BRUCE V. MALKENHORST,
City Administrator/City Clerk
DAVID B. BREARLEY,
City Attorney
TELEPHONES
VICTOR H. VAlTS,
Director of Community Services
CITY C LE RK.................................583-8811
POLICE DEPT. .............................587-5171
FIRE DE PT. .... ...............................583-4821
BUILDING DEPT. ........................583-8811
PUBLIC WORKS DEPT. ............583-8811
HEALTH DEPT. ...........................583-8811
LEWIS R. ADAMS,
Director of Water & Power
LARRY SPADT,
Fire Chief
CITY HALL
LOUIS ROSENKRANTZ
Police Chief
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
August 30, 1990
III Reply Refer to:
City Council
City of Vernon
Honorable Members:
At the City Council Meeting held May 15, 1990, approval was granted for
the execution of a Contract for Gas Service by and between Southern
California Gas Company and the City of Vernon providing for the City's
purchase of gas from other suppliers. Due to the fact the the
negotiations with PSI, Inc. and Mock Resources, Inc. are at a standstill,
it is hereby recommended that Resolution No. 5751, adopted on May 15,
1990, be rescinded.
~verY truly ,yours,
; \... -..- - .- I ,/-~
. - - //./ --, - //
i . t /, / /)..c.{~____ ./."d.:.':'/~'~
<::.---/ _ 1'7 ---'--c!..--' ~
ruce V. Malkenhorst
City Clerk
BVM/hr
#..",
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~THERN CAUFORNIA I gt I COMPANY
CONTRACT FOR GAS SERVICE
Prime Account Number
142-011
This contract C'Contract'1 is made this 15 t h day of
MAY
,19 90 between Southern California Gas Company, a
California corporation ("Utility'1 and
CITY MUNICIPAL
CITY OF VERNON
a
r'Customer'1.
The Utility has filed with the Public Utilities Commission of the State of California r'CPUC'1 rate schedules and rules
applicable to service of natural gas which are open to public inspection at the offices of the Utility. The Customer desires gas
service and the Utility is willing to furnish such service under the applicable rate schedule(s) and rules specified below.
Now, therefore, it is mutually agreed as follows:
Customer's gas service is primarily for use for:
ELECTRIC GENEP~TION
at Customer's facilities located at
3392 E. 50th STREET
VERNON, CA 90058
Customer's equipment is described in Attachment A which is attached hereto and incorporated herein.
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Customer elects sales and/or transportation gas service (check one or both) as
provided herein under the following tariff rate schedules which are attached hereto and incorporated herein as an integral
part of this Contract GT-60
Customer agrees to the rates and conditions set forth in the then current applicable rate schedule(s) and any revisions
thereof authorized by the CPUC.
Customer's gas usage is classified at the priorities set forth on the Billing Schedule in Paragraph 1.7 herein. The Utility
reserves the right to reassign the Customer's priority based on changes in the Customer's equipment and/or operations.
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Article I
GENERAL SERVICE
1.1 Custome, Ch.rge: The Customer agrees to pay monthly Customer Charges which are specified in Customer's applicable
tariff rate schedules.
1.2 Demand Cherge: The Customer shall also pay Demand Charges based on the total gas throughput to Customer under
Customer's applicable sales and transportation rate schedules which provide for demand charges. These quantities may change
monthly according to the applicable tariff rate schedules.
1.3 Volumetric Ch.rge: In addition, Customer shall pay a per therm transmission Volumetric Charge as specified in Customer's
applicable tariff rate schedule(s). This charge may change according to the applicable tariff rate schedules.
1.4 The gas will be considered delivered for billing purposes in the order established in the Billing Schedule, with core volumes
delivered first, followed by core-elect volumes.
1.5 . Minimum Cherge: Customer's Monthly Minimum Charge shall be the total rJ all Customer Charges plus all Demand Charges
applicable for that montr..
1.6 Termln.tlon: Customer must provide twelve (12) months prior written notification to Utility of termination of Service under
rate schedules subject to demand charges hereunder. AJ. the end of the twelve (12) month period, if service is terminated, the 0-1
and D-2 Demand Charges will no longer be due and payable. .
1.7 The Billing Schedule below specifies the sequence in which rates are applied to the Customer's usage. It will identify fixed
base volumes and percentages for volumes used in excess of the base. .
BIWNG SCHEDULE
Prime ACcount Number:
142-011
CONTRACTED OTHERWISE
IllLUNG SEQUENCE PRIMARY CPUC APPLICABLE CPUC
~ ThIMo RATE PRIORITY RATE PRIORITY
1. 100 GT-60 5 GN-60 5
.
2.
3.
4.
5-
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7.
8.
9.
10.
Supplemental .Accounts Numbers: N / A
Note: Cogeneration transportation customers whose monthly facility requirements exceed their transported quantities will procure
gas under either rate schedule or
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SOUTHERN CAlIFORNIA GAS COMPANY 6412
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Article II
GAS PROCUREMENT
(Applicable to Customers procuring gas from the Utility)
2.1 Customer elects to purchase gas from the following portfoIiO(s). Customer will pay the procurement rates currently
specified in the applicable rate schedules in addition to the Customer Charges, Demand Charges and Volumetric rates
specified in Article I.
a. Core Rate Schedule N / A . Percentage of load: or Monthly Fixed Quantity:
therms. Estimated Annual Core Contract Quantity: therms. This core rate will be equal to
the core rate specified on the appropriate rate schedule. The first quantities of gas delivered to the Customer each month will
be these core volumes.
N/A
b. Core-Elect Rate Schedule(s) . Annual'Contract Quantity: therms. The Annual
Contract Quantity will be broken down into Estimated Monthly Quantities as specified below:
January therms. July therms.
February therms. August therms.
March therms. September therms.
April therms. October therms.
May therms. November therms.
June 1herms. December therms.
The ratio of the highest Estimated Monthly Quantity divided by the Annual Contract Quantity may not exceed the ratio of the
highest monthly usage in the most recent 12 months. service to the total usage in the most recent 12 months' service. Under
no conditions will the Estimated Monthly Quantity be deferred to later months. Core-Elect quantities will be considered the
first gas through the Customer's meter each month after core volumes.
The Core-Elect rate will be equal to the core WACOG specified on the appropriate rate schedule. The term for Core-Elect
purchases shall be from to . If Customer does not purChase its entire Annual
Contract Quantity or discontinues or terminates core-elect procurement, Customer is liable for all applicable Customer and
Demand Charges plus Company's unavoidable costs including .any storage costs, but excluding any costs allocated to
transmission charges.
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c. Non-core rate schedule(s):
NON-COAE
flATE SCHEDULE
"OF
LOAD
ESTIMATED ANNUAL
CONTRACT QUANTITY
The rate(s) hereunder will be equal to the non-core WACOG specified on the appropriate rate schedule. These non-core rates
are subject to revision not more than twice monthly on five days notice to reflect changes in Company's non-core WACOG.
2.2 Gas purchases under this Contract will begin on , or as soon after as the Utility is ready to
commence service to the Customer, but not before ten (10) working days after execution of this Contract unless special
circumstances exist
2.3 Either the Utility or Customer may terminate the non-core procurement provisions of this contract by providing thirty
(30) days prior written notice, however, if terminated by customer, Customer and Demand Charges will be paid as provided in
the applicable rate schedule.
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Article III
TRANSPORTATION SERVICE
(Applicable to Customers procuring gas from sources other than the Utility)
3.1 In the event Customer is transporting Customer-owned gas, all terms and conditions in Tariff Rule 30, "Transportation
of Customer Procured Gas" are incorporated as part of this Contract as if fully set forth herein.
3.2 Transportation Service shall commence on 5/1/90 and continue through 5/31/90. and month-to-month
thereafter until terminated by either party on fifteen (15) days written notice.
3.3 Customer will deliver !las into the utility system at the Points of R6ceipt, and Utility will redeliver like quantities of gas to
Customer on a reasonably concurrent basis at the Points of Delivery. Points of Receipt and Delivery are listed in Attachment 8
which is attached hereto and incorporated herein. In the event Customer is transporting gas under more than one contract,
the order of deliveries will be made to Points of Delivery and rate schedules in the order listed on Attachment 8.
3.4 For every therm of gas delivered to Utility and redelivered to Customer. Customer agrees to pay the Volumetric Rate as
specified in Paragraph 1.3 and any other applicable charges referenced in Customer's transportation rate schedule resulting
from Customer's transportation of Customer-owned gas. I' (~-L. /, ,'. i ' . ./-;1' j " ! . . .'
3.5 Customer's Maximum Daily Transportation Capacity is 9, 1 00 ~ therms.
3.6 In the event sufficient gas is not transported to meet the Customer's gas requirements. Customer will be billed for such
volumes at the applicable sales rate schedule as specified in the Billing Schedule in Paragraph 1.7.
3.1 Customer will identify in Attachment C any pipelines. shippers and/or brokers that will be involved on behalf of
Customer in transportation arrangements with Utility. .
. 3.8 Changes in Gas nominations should be made during normal business hours by contacting the Utility at (213)
689-2636. If communication with the Utility at other times is necessary. call (213) 689-7274. Utility reserves the right to change
these numbers at any time upon notification to Customer.
Arti cle IV
NOTICES
4.1 Any formal notice. request or demand concerning this Contract shall be given in writing by Customer or Utility, and
shall be mailed by Registered or Certified mail or delivered in hand to the other party as follows:
CITY OF VERNON
To Customer:
4305 SANTA FE AVENUE
VERNON, CA 90058
ATTN: DIRECTOR LIGHT & PO\~R DEPT.
To Utility:
Southern California Gas Company
810 South Flower Street
Los Angeles. California 90017
Attention: Manager of Contract Sales and Transportation
or to such other address as the parties may designate by written notice. Routine communications may be mailed by first class
U.S. mail. Statements, invoices and billings shall be sent by Utility to Customer by first class mail to:
CITY OF VERNON
4305 SANTA FE AVE~UE
VERNON, CA 90058 ATTN: DIRECTOR LIGHT & PO~ER DEPT.
4.2 Notices delivered by hand shall be deemed effective when delivered. Notices delivered by first class mail shall be
deemed delivered forty-eight (48) hours (not including weekends and holidays) after deposit, postage prepaid. in the U.S. mail,
or if Certified or Registered mail is used. as acknowledged by the receipt of the Certified or Registered mailing.
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Attachment B
POINTS OF
RECEIPT
1.
EL PASO NATURAL GAS PIPELINE INTERTIE
WITH SO. CAL GAS AT TOPOCK
EL PASO NATURAL GAS PIPELINE INTERTIE
WITH SO. CAL GAS AT BLYTHE
2.
3. NEEDLES RECEIPT POINT - interconnection
between SoCalGas and Transwestern Pipeline
at the borderline between Arizona and
California near Needles, California
4. TOPOCK-PG&E - interconnection between SoCal
Gas pipeline and PG&E at Meter No. F-21
and F-22 near Topock, Arizona
5. KERN RIVER - interconnection between SoCalGa~
pipeline and PG&E at Mile 280.58 on PG&E's
line 300A near SoCalGas Line 7200 in Kern
County, California
TOTAL
POINTS OF
DEUVERY
1.
3392 E. 50th STREET
VERNON, CA 90058
2.
ACCT. # 18-2157-437-8771
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MAXIMUM DAILY
QUANTITY
9.1 MTH
9.1 MTH
MAXIMUM DAILY
QUANTITY
9.1 KTH
DEUVERY
PRESSURE
600 psig
615 psig
800 psig
615 psig
700 psig
DEUVERY
PRESSURE (up to)
TdE EXISTENCE
GAS DELIVERY
PRESSURE NOW
BEING SUPPLIED
AT THE GENERATING
STATION UNDER
THE VERL~ON' S
GN-60 GAS SERVICE
CONTRACT.
Attachment C
TRANSPORTATION OPERATIONS CONTACTS
MER:
CITY OF VER.....'WN
PHONE NO"
EMERGENCY PHONE NO"
213/ 585-5192
BROKERS
213/ 583-8811 ext. 214
MOCK RESOURCES, INC
ADDRESS:
4 EXECUTIVE CIRCLE, SUITE 200, IRVINE, CA 92714
"en.. i. AulrlonzlIcl Agent tor ~
DYes Ltl No
CITY ISTA TE:
NAME
DANNY GARCIA
TELEX NO"
213/ 583-1983
BRIEN BATES
PHONE NO"
415-460-9977
EMERGENCY PHONE NO" TELEX NO"
-en.. .. AulhoriDcI Agent tor Cu~ CONTACT:
o Yes No SONJA LONNEVIK
I ATE:
NAME
P.S . 1.
ADDRESS:
1044 NORTH 115th STREET
PHONE NO"
402-498-4541
OMAHA, NEBRASKA 68154
EMERGENCY PHONE NO" TELEX NO"
-en.. i. AuItloriHll Agent tor eu.eon.: CONTACT:
DYes 0 No
CITY ISTA TE:
NAME
ADDRESS:
PHONE NO"
EMERGENCY PHONE NO" TELEX NO"
SHIPPERS
i. AulhoriDcI Agent tor CONTACT:
DYes 0 No
CITY ISTATE:
NAME
ADDRESS:
PHONE NO"
EMERGENCY PHONE NO" TELEX NO"
-S/IiJlper i. AultloriUCI Agent tor eu.eon.: CONTACT:
DYes 0 No
CITY ISTATE:
NAME
ADORES$:
PHONE NO.:
EMERGENCY PHONE NO" TELEX NO"
PIPELINES
NAME
ADORES$:
PHONE NO"
EMERGENCY PHONE NO"
NAME
ADDRESS:
PHONE NO.:
EMERGENCY PHONE NO"
CITY ISTATE:
CITY ISTATE:
CONTACT;
TELEX NO"
CONTACT;
TELEX NO.;
*If Customer designates a Broker or Shipper as an Authorized Agent, any communications made by such person shall be
binding on Customer and shall prevail if there is any conflict with information regarding nominations of receipts from
Customer. Such person shall be considered an Authorized Agent of Customer for the term of this Agreement unless a formal
written notification is received by Utility that such agency arrangement no longer exists.
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Article V
MISCELLANEOUS
5.1 In the event Customer's gas usage changes so that the qualifications under the Customer's selected rate
schedules are not met, the customer will notify the company in accordance with Tariff Rule 19.
5.2 This Contract is not transferable by the Customer and cannot be assigned without the prior written consent of the
Utility which will not be unreasonably withheld.
5.3 The Customer grants to the Utility for use as long as this Contract continues in force and for a reasonable time
thereafter, such easements and rights-of-way in the land of the Customer, together with such rights of Ingress and egress
as may be necessary or convenient to enable the Utility to install, operate, inspect, maintain, repair, change or remove
meters, pipelines and all other equipment which the Utility may insta!' for the purpose of furnishing gas service under this
Contract
5.4 The Customer agrees to pay the Utility for all natural gas sales and transmission service under this Contract at the
rate and under the conditions set forth in the then current applicable schedule(s), or revisions thereof authorized by the
CPUC, including but not limited to customer charges, commodity rates, demand charges, volumetric rates, billing account
surcharges and rate adjustments. All monthly bills shall be paid at the office of the Utility within nineteen (19) days after the
date such bill Is mailed. Late payments will be subject to any late payment charges provided in the Tariff.
5.5 The Utility shall not be obligated to deliver gas except at times when, and at pOints where, the capacity of the
Utility's existing distribution system is sufficient to supply the Customer without detriment to then-existing service to
others.
5.6 a. Neither the Utility nor the Customer shall be liable for any failure of performance, other than the continuing
obligation to make payments due hereunder for periods prior to the event of force majeure, due to causes beyond its
reasonable control and the occurrence of which it could not have prevented by the exercise of due diligence. Refusal of
either party to accede to demands of laborers of labor unions which it considers unreasonable in its sole discretion shall
not deny it the benefits of this provision.
b. If either party hereto is unable for any reason whatsoever to deliver or redeliver Quantities of Gas due to force
majeure, the party so unable to perform shall promptly advise the other party that such condition exists, whereby the
parties shall suspend operations under this Agreement until such time as the event 9f !orce majeure is remedied and both
parties can once again deliver and redeliver, respectively. Such force majeure event shall be remedied as far as possible
with all reasonable dispatch. If the event of force majeure affects only a part of either party's ability to perform hereunder,
performance will be excused only for the portion affected. No force majeure event will change the term of this Agreement
c. The term force majeure as employed herein shall include events beyond the reasonable control of the party
claiming force majeure which could not have been prevented by the exercise of due diligence including, but not be limited
to, acts of God; strikes or other industrial disturbances; acts of the public enemy; the direct or indirect effect of
governmental orders, actions or interferences; civil disturbances; explosions, landslides, lightning, earthquakes, fires,
storms, flood and washouts; breakage or accidents to machinery or lines of pipe; unavailability of transportation which
unavailability could not have been prevented; and the necessity for making repairs to or alterations of machinery or lines of
pipe (except that normal maintenance and repairs are specifically excluded).
5.7 All natural gas delivered under this Contract shall be measured in accordance with the standard of the Utility as set
forth in its Tariff Rule No.2. Any facilities necessary for service hereunder will be provided by a separate facilities
agreement All meters, gauges, pipelines, fittings, regulators and other equipment installed on the premises of the
Customer, the cost of which was borne by, or advanced to, or donated to the Utility, shall be the Utility's property, except as
otherwise specifically provided in the then rules of the Utility filed with the CPUC; such property may be changed or
removed by the Utility at any time.
5.8 AU natural gas delivered under this Contract shall be supplied in accordance with the rules of the CPUC, and under
such rules as may be adopted by the Utility and approved by the CPUC. This Contract shall be subject at all times to such
changes or modifications by the CPUC as it may from time to time direct in the exercise of its jurisdiction.
5.9 This Contract may be terminated at any time upon prior written notice as provided in Articles 1.6, 2.3 and 3.2.
5.10 A waiver by a party at any time of its rights with respect to a default under this Contract, or with respect to any
other matter in connection with this Contract, shall not be deemed a waiver with respect to any other or subsequent default
or matter.
This Contract with the Attachments listed below constitutes the entire agreement of the parties for natural gas sales
service. and all terms and other representations made are embodied in this written Contract This Contract shall not be
modified or amended except by a document in writing and duly executed by Utility and Customer.
1. Attachment A - Equipment
2. Attachment B - Points of Receipt and Delivery
3. Attachment C - Transportation Contract Contacts
CUSTOMER CITY OF VERNm~ UTILITY
By:
By:
Title:
Title:
Date:
Date: