Resolution No. 5911
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
1
RESOLUTION NO. 5911
2
3
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
THE EXECUTION OF THE CONTRACT FOR GAS
SERVICE BY AND BETWEEN THE CITY OF VERNON
AND SOUTHERN CALIFORNIA GAS COMPANY
4
5
6
7
WHEREAS, the City of Vernon purchases natural gas from
Southern California Gas Company for the operation of two Vernon
8
electric system gas turbines pursuant to a Contract for UEG Gas
9
Service dated May 4, 1988; and
WHEREAS, the natural gas supply to said gas turbines
was interrupted during the summer of 1990 due to shortages
experienced by Southern California Gas Company; and
WHEREAS, Southern California Gas Company has offered
the City of Vernon a new contract for the supply and delivery of
natural gas effective February 1, 1991, which will give a higher
priority to said gas turbines and reduce the possibili1:.Y of any
reduction of gas supplies during the peak summer months} and
WHEREAS, a copy of the Contract for Gas Service has
been submitted to the City Council of the City of Vernon
concurrently with this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City council of the city of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
III
III
10
11
12
13
14
15
18
17
18
19
20
21
22
23
24
25
28
27
28
1
SECTION 2: The City council of the city of Vernon
hereby approves said Contract for Gas Service retroactive to
February 1, 1991, which Contract has been presented to the City
2
3
4
Council concurrently herewith and orders said Contract to be
5
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
6
7
8
Contract for, and on behalf of, the city of Vernon.
9
SECTION 4: 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.
APPROVED AND ADOPTED this 16th day of April, 1991.
ATTEST:
~
BRUCE V.
--~~.
-2-
STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 5911, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the city Council duly
held on Tuesday, April 16, 1991, and thereafter was duly signed
by the Mayor of the City of Vernon.
(SEAL)
-3-
l i
h
.~... I I
~ f
-;)
.
SOUTHERN CAUFORNIA I g~S I COMPANY
~~Y//
.
~ ,
l.~
"".
l'
CONTRACT FOR GAS SERVICE
Prime Account Number 18-2157-437-8771
This contract ('Contraet") is made this 1st day of' · February ,'9 91 between Southern CalifornIa Gas Company. a
California corporation ("Utility" and
City of Vernon
a
municipal utility
r'Customer".
The Utility has filed wIth the Public Utilities Commission of tne State. of California ("CPUC'1 rate scneCIulesand rules
acplieable to service of natural gaswnich are Open to public inspection at tne offices of the Utility. The Customer aeslres gas
service and the Utility is willing to furnlSl'l such service under the applicable rate scnedule(s) and.rules specified belOW.
Now, therefore, it is mutually' agreecl as. follows:
Customer's gas service is primarily for ose for: electric qeneration
at Customer's facilities located at
3392 East 50th Street
Vernon, CA .. 90058
Customer's eQuIpment is described in AttaChment A wnich is attaened nereto andinco~rated hereIn.
-
Customer electS X ....s and/or tranaponation gas service (check one or both) as
proviaed here.n unaertne fOllOWing tariff ratescMdules wnien are aacned hereto and incorporated herean as an integral
part of tnis Contract
Customer agrees totne rates and eonditionSHt forth in the then cunent applicable rate Icnedute(s) and any reviltons
tnereof authonzed by tne CPUC.
GN-60
Customer's gas us.age is classified at tne pnorities set forth on tne Billing Schedule in Paragraon '.7 nere.n~ The Utility
reserves the right to reass.gn tne CustOmer'lpnority baNd on cnanges in the CuStomer's eQulOment and/or operations.
-1-
i\" ,
j'
ArtiCle'
GENERAL SERVICE
~ If.
.{ ...~. Customer Char;e:The Customer agrees to paymontnly Customer Charges wnlcn are. soecltlec" In Customer s
J aoollcaole tanff rate scneoules.
, ' ~ '
~.2 OemandCharge: Tne Customer snail also Day Demand Cnarges based on the total gas througnOut to,Customer
unoer Cwstomer's appilcao1esales andtransDortatlon rate scneduleswhich provide tor demand cnarges, These Quantities
may c:'lange monthly accorOlng to tne applicable tariff rate scnedules. ' '
~.3 Volumetric Charge: In addition. Customer Shall pay a per therm transmiSSIon Volumeu"iC Charge as soecitiea in
Custom~r's applicable tariff ratescnedule(s).This cnarge may cnange according to the applicabletanff ra1esetleOules.
'.4 The gas will.,be conSidered delivered for billing purposes in the Drder esuablished in the Billing Schedule. with core
vOlumes dehvered first, followed by core-elect volumes.
'.5 Minimum Charge: Customer's Monthly Minimum Charge shall be the total of all Customer Charges plus all Oemana
Charges applicable for that month. .
'.6 Termination: Customer must'provide twelve (12) monthS prior written notification to Utility of termination of Service
under rate seneoulessubject to demand Charges hereunder. At the end of the twelve (12) month penoa. if service is
terminated. the 0-1 and 0-2 Demand Charges will no longer be due and payeble.
~ .7 The Billing Scheaule belOW specifies the seQuence in which rates are applied to the Customer's usage. It will ioenttty
fixed base volumes ana percentages for volumes used in excess of the bese.
laLUNG SCHEDULE
18-2157-437-8771
Prime Account Numcer:
,. 100%
GN-60
3
OTHDWIK \ cpuc
~
RATE PRIORITY
NA \ NA
,
I
I
I
I
CONT'RACTED
IIWHG "QUINa
~ ! 'nIIM.
"'IIIARY
RATE
I.
CPUC
PIIIORrTY
2.
3.
10.
I
I
,
,
,
I
I
4.
s.
6.
.... i.
9.
NA
Supglemental Accounts Numbers:
Note: Cogeneration tranSDortatlon customers wnose mont"Iy facili1'i reQuirements exceed their tranSDOned Quantities will
procure gas unoer either rate ,eneaule NA or NA
-2-
..
~ '.
.
+,. r
Article Ii
GAS PROCUREMENT
(ApptlcaO/e to Customers procuring gas from theUtilit'l)
;r 2,' Cu stomer elects to purcnase gas from the following portfoliO(s),Custome' will pay tTle prOClJretnenf~at~s~:.:rre~!:i'
soecified in tTle applicaDle rate scnedules ,"addition to tne Customer Charges. Demand -Charges ano VOIUtnetrlcrates
speclhea In ArtiCle I.
a. Core Rate Schedule NA . Percentage of load: or Montnly FixeaQuantlty:
themls.Estimated An.nuat Core Contract Quantity: ttlerms. This core r8tewill be eQual to
the core rate specified on the appropnate ratescnedule. The first quantities of gas delivered to the Customereacn.montn will
be tnese core\tolumes.
b. Core-Elect RateScnedule(s) Nt A . Annual Contract Quantity: therms.TheAnnual
Contract Quantity will be broken down into Estimated Monthly Quantitie..asspecified below;
January therms. July therms.
February therms. August therms.
Marcn therms. September therms.
April therms. October thenns.
May therms. November thenns.
June therms. December therms.
The ratio of thehignest Estimated Monthly Quantity divided by the Annual Contract Ouantity may not exceed tne ratio of U'le
hignest monU'lly . usage in ltIe most recent '2 months' service to the total usage in ltIe most recent'2 monltls' service. Under
no conditions will ltIe Estimated MonU'llyQuantity be deferrec:tto later months.. Core-Elect quantities will be eonsidered the
first gas ltIrougntne Customer's meter each monltl after core votumes.
The Core-Elect rate will be equal to U'le core WACOG specified on the appropriate rate schedule. The term for Core-Elect
purenasesshallbe from to . If Customer does not purd1ase itsemire 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.
.
c. Non-core rate schedule(s):
NON-CORE
UTE SCHEDULE
~OF
LOAD
ESTIMATED ANNUAL
CONTRACT QUAHT1'TY
GN-60
100
180,;;MD'rH
~,
The rate(s) hereunder wiU be equal to U'le non-core WACOG specified on 1M appropriate rate schedule. These non-eorerates
are subject to reYiaion not more 1h8n twice monthly on five days notice to reflect Changes in Company's non-cote WACOG.
2.2 Gas purchases under this Contract will begin on . February 1, 1991. or as soon after as 1M Utility laready to
commence service to U'le Customer, but not before ten (10) working days after execution of this Contract u'.'l8SS special
Circumstances exISt.
2.3 Either U'le Utility or Customer may terminate U'Ie non-core procurement provisions of this contract by providing tnirty
(30) days prior ,wrmen notice. however. if terminated by customer. Customer and Demand Charges will be paid as provided I"
the applicable rate scnedule. .
-3-
., ":
'~.. .....~ ......'... ... ...'.. . Article III
TRANSPORTATION SERVICE
fAppllcaOle roCustomersprOcurmg gas trom sources ottler ttlan ttle Utility)
',/0'"
. \
.
.; 3.' In the event Customer IstransDortmg Customer-ow"ed gas, alt terms and conditions in Tariff Rule 30. "Tral')sportation
. 'of Customer PrOClJr~ Gas" are lncorpor,atedas. part CtthlS Contract as if fully set forth heretn. '
3.2 Transportation Service sha.1I commence on . NA and continue through and monttl-tO~tnonth
thereafter until tennlnated by either party onfift~n(1S)days written notice.
3.3 Customer wm deliver gas Into the utility<system aUhe Points of Receipt, and Utility will redefiver like Quantities. of gas to
Customer on a reasonably concurrent basis at the!"'QintsofOelivery. Points of Rectiptand 0eIiYet'y .....listed in.~ttachmel'ltB
whiCh is attaChed heretcand inCOrporated herein. In the eYent Cu$U)mer is nnsportino gas under more than.oneeontJ'aet.
the order of deliveries will be made. to Points of Delivery and rate schedules in the order lis18d on AUachmetlJ B. ...... ,>..
3.4 For every thenn of gas delivered tOiUtility and.redelivered to Customer. Cu~mer agrees to pay the VoIume1ric Rate as
specified in Paragraph'.3 and any other applicable Charges referenced in Customer's transportation rate sc:heduleresutting
from Customer's transportation of .Customer-owned gas.
3.5 Customer's Maximum Daily Transportation Capacity is 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.
3.7 Customer will identify in Attachment C any pipelines. shippers and/or brokers that will beinvolved.onbenalf of
Customer In transportation arrangements With Utility.
3.8 Changes in Gas nominatio"s should be made during normal business hours by contacting the Utility at (213l
689-2636." communication with .the Utility at other times is necessary. call (213) 689-7274. Utility reserves the nghtto cnange
these numbers at any time upon notification to Customer.
Article N
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 .s follows:
Ci tyof Vernon
,To Customer:
430S santa Fe Avenue
To Utility:
Vernon,.CA 900S8
Attn: Director, 'Light '& PoWer Dept.
Southern California Gas Company
810 South Flower Street
Los Angeles. California.. ...90017
~tion: Manager of Connel Sale. and Transponation
...
or to suCh other address as the parties may designate by written notice. Routine communicationS may be mailed by first dass
U.S. mall. Statements. inVOices and billings shall be Mnt by Utility to CustOmer by first etass mail to:
City of. Vernon
430S santa Fe Avenue
Vernon, CA 900S8
Attn: Director, 1.lght & PoWer Dept. .. .'. · . ..... . .
4.2 Notices delivered by.hana snail De aeemed etfectivewtlen delivered. Notices delivered by first class mad snail be
deemea deliverecl forty-elgnt (48) hours tnot including weekendS and hOlidays) atter deposit. Poage preoaid..i~ me U.S. mall.
or If Certlfiea or Reglsterea mal~ is used. .as aCknowledged by the receapt of the Certified or Reglsterecl mailing.
-4-
AnlCle v
MISCELLANEOUS
-,
:.1 !rtneeven: Customer" sgas usage c~anges so that the O\Jalifications
scneOUles are not met tne customer willnotltytnecompanymaccordancewitrl
5.2 ihlS Contract IS not transferaole oytneCustomer and cannot be assigned witl'lout tM prtorwnttenconsent of the
Utility Wnlcn wlllnotOe unreasonablywlttl.neld.
5.3 The Customer grants to the Utility for use as long as this Contract continues in force and for a .reasonable tIme
ttlereatter. sucn easements anongnts-of-waYIn tne I~~O ot t~e Customer.. tOQ.ather wIth Jueft nghts of ingress and egress
as may .benec~ssaryor. convenient to. enaDle the Utility to Install. oparata.l"soect. maintain. repair. change Or remove
meters. pIPelineS and all other equipment whicn the Utility mayinstail for the. purpose otfumishi"g gas service under thIS
Contract
5.4 The Customer agrees to pay the Utility tor all natural gas sales and.transmissior'lservlce uncerthis Contr'act at the
rate and under tne conditions setfonh in t~~ then current applicableseftedule(s). or revisions thereofautnonzed by the
CPUC. including but not limited to customer charges. commOdity rates.demandcharges.volumetr'icrates. billing accOunt
surcnargesand rate adjustments. All monthly bHls snail be paid at the office of th.e Utility with.in nineteen (19) days atter tne
date sucn bill is mailed. Late payments will be subject to any late payment ct)afges provided in the Tariff.
:.: 7Me Utilit)', shall not be obiigated to deliver gas except at times when. and at points where. the. caeaclty .of the
Utility's E!xlsting olstributlon system IS sufficient to supply the Customer wlthoutoebiment to then-existing servIce to
others.
5.6 a. Neither the Utility nor tne Customer snaill be liable for any failure Dt.perfDrmance. otherthantl'\e continuing
obligation to make payments due nereunder for periods prior to the avent ot force majeure. due to causes beyond its
reasonaDle .control and the occu.rrence ofwhi.cl'lit could not have prevented by the exercise of dueoiligence. Refusal of
~~r~~~.~it~ea~ec::f~~oof~;::"PC;~V~~il:~rers of labor unions. which. nconSi.d0rs.unreaSOnable .in itS.SOle.dlsCreti.onsnall
b.. If eitner party hereto is unable for any reason whatsoever to deliver or redeliver Quantities of Gas due to force
majeure. the party so unaDle to perform shall promptly advise the otherpartytnat suen condition e.xlsts. wnereoy tni!
partless"all SUsPend operations under this Agreement until.suefttime as the eve.nt ot force majeure is remedied and bott:
parties can once again deliver and. redeliver. respectively. Such force majeure event snail be remedied. as far as possible
with aU r~asOnabie dispatch. If the event of force majeure affectsonlya.pa~ 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 ma,eure as employed herein snail include events beyond tne reasonable control of the party
clalmang lorce maJeure whiCh could not nave Deen prevented by the exercise of due diligence including. Dut not be limitec
to.actsQf God: strikes or other industrial disturtlances:acts of the public enemy; the director indirect effect of
governmental ord.ers.actJonsor interferences: civil distumances:explosions.Jandslides. lightning. earthQuakes. fires.
storms. flood and wasnouts: breakage or accidents to maChinery or lines of pipe: unavailability of transDonation Which
unavadability.could not have been prevented: and the necessity for making ~ep~irs to oralterationsotmachinery or lines of
pipe (excePt tnat normal maintenance and repairs are specifically excluded). ' '
5.7 All natural gas delivered u.nder this Contract shall be measured in accordance with tne standard of the. Utility as set
tonnin its Tariff Rule No. 2. Any facilities necessary for service hereunder will be provided bya separate facilities
agreement All meters, gauges. pipelines. fittings. regulators and other eQuipment installed >on tnepremlses of tne
Customer, the cost of whieft .was borne by. or advanced to. or donated to the Utility. snail be the Utility's property. except as
otherwise specifically provided in the. then rules of the Utility filed. with theCPUC; sucn property may be' d'1anged or
removed by tne Utility at any time.
5.8 . All natural gas delivered under this Contract _U be supplied in accordance with tnerulesof the CPUC. and under
sucn rules as may De acopted by the Utility and approved by the CPUC. Thi.Centract snail be subject at aU timas to sucn
enanges or mOdifications by the CPUC as n may from time to.time dinictin.theexarciseof<lts.iurisdictiOn.
5.9 This Contract maybe terminated at any time upon prior written notice as prcMdedinArticles 1.6.2.3 and 3.2-
5.10 A waIver by a party at any time of its rights wnh respect to a default under this Contract. or wnh respect to any
otner matter In connection With thiS Contract. snail not be deeme<2 a waiver with resoect to any other or subSeQuent default
or maner.
ThiS Contract with the Attacnments listed below constitutes the entire agreement oftne parties for natural gas sales
SeNte:e. and all terms and otherrel)resentations made are anmodied in thiswntten Centract. This Contract snail not be
_~or amendecl except by a cocument in writing and duly executed by Utility and Customer.
~. Attacnment A - EQuipment
"\:). ~\ ~ 2. Attacnment B - Points of Receipt and Delivery
CITYCa~t . Attacnment C - Transportation Contract ~;~
l:~~~~~~~-
ATTEST: /l- , ~ ~~ . .
JOve: Rrll~p V M::!lkpnhnr~"", r.i....y r.le>-rk
~.~ -5-
~
By:
Title: j)Atlt\O.tp d~ ~OC. ~kth
Date:.~q(
. ..
. r
,
.
.
,
(/)
to-
Z
w
:E
w
a::
-
=
o
w
a::
.....;1
c W
1=
E u.
o
c; >-
< . !::
'E 0 a::
~ -! 0
&. ...-
U __0 a::
~ ....
.. -
;(
Co) w
E. (/)
. =
J:: I
'5 Q
: Z
w
a::
~ 0
u.
en
en
~
c
z
<
r
I
I
I
j .
I
i 0 I
1 0 I
\' i,
-I .
\ ~~ \8
I .
US.~ : ! , i i : I 'c-
o ~.:I. .'t:;. i . . 0 ~": '.. :. . .~:~~
I . , I ! I I I I I I ! I I I ",",
I ...1.....: . I , ! I 0 0 ! i ! , I '"1
1 . ~"".~ 1 : . : : 1 I ! . . I .
, , ! . , : !
\ ... ", ,
I . I ' I ,I 1 I : , I 1 , I ,i I 1 I \ I I I I ,. 1
I etJ=
x'" 7J7\~i71~1;\~\~ F I~ i ~1~i~I~I?I;\7.i?\~ 171;. :\:\.:p i~ ;:i~l:
III:
"',0
~:E
...
.~ 0)1 1.1..... .... \.. ,\ \ I 1 1 \ II l
~'"
o~
- ..
I ." ...' , 1 I I " 1 I \ \ \ III
...~ 0 0
Uo 0\
..- \.0 0\
\.0
. ~\ I 11\ hi \ I I \ \ \ \ III \ .\ I \ I I I I
c~
::10
~-
I 0 I
E-i I
r.J co ., 0
~ LO ~: 0
r- r-
0 , LO
0 ~t LO
.. ...
0\ ~ N N
g:l ..... .....
0 ()
LO
~ ... .
." 0
... . z .,..,
is r.J ~ ., 0
.. r- 0
ON U: ~ , r-
~O\ ...... LO
~M IU N ...
a:M 0 ..... N
U .....
...
."
.'. I ~
. ~
a 0
0 ....
..-1 .
~
lI3
'-l
., Q)
tit a
::I ~
0
..-1
'-l
~
0
Q)
.....
r.J
.
. ,
I.
..
!to -8
~
I ~ lI3
Q)
~ .....
r- ~
!to -.-I LO
8 .a
'-l a
., ~ 0 0
..... to co
r- ..-1 N
i r- to ..... \.0
co lB ~ ClV
I
r- I \ I
M NI\ I II \ I \ \ I \ I I I I I I \ \ \ I
a: .qo tit
... ..r.-. ... I ..
30 &: r- I ,
:ELO
Z i .....
5~ ...~ ..,1 I \ \ I \ I \ , \ \ \ \ \ I \ \ \ I I \ \ \ I \ \ \ I
~ H z'l u~
5!u 8-GO =>c 1 I
!!l u..... t..
U u
C I , I I I I I I I . , I I , .
-6-
. ..
~
· (,
.
"
.
..
2.
1.
2~
....
POINTS OF
AECEIP~
NA
POINTS OF
DEUVERY
Anacnment 6
..
-,-
MAXIMUM DAILY
QUANTITY
fIIAXIMUM DAILY
QUANTITY
OEUVEAY
PflE$SUAE
DWVUY
PMSSURI (uta to,
..
Attacnment C
TRANSPORTATION OPERAT10NS CONTACTS
I EMERGENCY PHONE NO;
I CONTACi,
!
I T'ElDNO;
! ,.
NA
BROKERS
tw.li
'--.~"""~..I
o Ves 0 No
crnISTAll.:
~
HAWE
1B.IX NO.; .
f'MOHE NO.:
CONTACT;
AOC)RESS;
f'MOHE NO;
TEI.IX NO.;
HAWE
.....a~;o ;,: \ CONTACT:
Ct1'Y ISTAll.:
AOOI'lESS.
PHONE NO;
I ~f'MOHE~
1B.IX NO.;
SHIPPERS
HAWE
. ,.,.,..,... ,... ., c..-: I
o Ves 0 No
crnISTAll.:
ACT;
AODRESS.
I"MONE NO;
EMERGENCY Pt.oHI ~
HAWE
......,.,.,..,...,...., ~ COHTAC'f;
o Ves '.0 No
crnlSTAll.:
ADORESS;
f'MONE NO.:
-
PIPEUNES
HAWE
crnlSTATI:
ADOMS$.
PHONE NO.;
TILIX NO.;
CQilrACT:
HAWE
crnlSTAll.:
AOONSS.
f'MONE NO.
I iMPGIHC't f'MOHl NO.;
.'1 Customer designates a Broker or Shi~per as an Authorized Agent. any communications made by luChperson snail be
binding' on CustOmer and snail prevail if there IS any conflict with infonnatJon regarding nominations of receiot$ from
Customer. SuCh person snail be considered an Authonzed Agent of CustOmer tor tne term of this Agreement unless a formal
written notification is receIved by Utility that suCh agency arrangement ~o longer existS.
-8-