Resolution No. 5935
. '
I RESOLUTION NO. 5935
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
3 THE EXECUTION OF A GAS SERVICE AGREEMENT
BY AND BETWEEN THE CITY OF VERNON AND
4 SOUTHERN CALIFORNIA GAS COMPANY (SOCALGAS)
5 WHEREAS, SoCalGas is regulated by the California Public
6 utilities commission (CPUC) and provides gas service to the City
7 of Vernon Light and Power Department in order to operate two gas
8 turbines located at the Vernon Diesel Plant; and
9 WHEREAS, the CPUC has approved gas service agreements
10 for noncore customers in order to permit noncore customers to
II participate in the deregulated natural gas supply market
12 authorized by the United states Congress; and
13 WHEREAS, the new services approved by the CPUC require
14 the execution of a gas service agreement on or before June 10,
15 1991, for noncore customers who desire to make a service level 2
16 election; and
17 WHEREAS, the City of Vernon Light and Power Department
18 desires to exercise its rights pursuant to the services approved
19 by the CPUC and execute an agreement with the SoCalGas on or
20 before June 10, 1991; and
21 WHEREAS, a copy of said Gas Service Agreement is being
22 submitted herewith to the City Council concurrently with this
23 resolution.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
25 THE CITY OF VERNON AS FOLLOWS:
26
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.
.1
I
The City Council of the City of Vernon
SECTION 2:
2
hereby approves the Gas Service Agreement, a copy of which has
been presented to the City Council concurrently with this
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resolution subject to the City of Vernon making a service level
5
election, and the City Council hereby orders said Agreement to
6
be received and filed by the city Clerk.
7
SECTION 3:
The City Council of the City of Vernon
8
hereby authorizes Bruce V. Malkenhorst, the Chief Executive
Officer of the Light and Power Department, to execute said
Agreement for, and on behalf of, the city of Vernon, and further
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II
authorizes the selection of a gas service level consistent with
12
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the requirements for operation of the gas turbines.
SECTION 4: The City Clerk of the city of Vernon shall
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certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 4th day of June, 1991.
~~1?'
- ,LEONIS C. MA BURG, M yor
19
ATTEST:
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1/;1/
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21 BRUCE V.
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-2-
1 STATE OF CALIFORNIA )
)ss
2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 5935, was duly adopted by the City Council of the
6 ci ty of Vernon at a regular meeting of the City Council duly
7 held on Tuesday, June 4, 1991, and thereafter duly signed by the
8 Mayor of the city of Vernon.
9
Clerk
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12 (SEAL)
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14
BRUCE V.
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... -
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~0-Y~/
,
GAS SERVICE AGREEMENT
Priae Account Humber
18-2157-437-8771
June , 19-21-
COrporation (-Utility") and
, a
Municipal Corporation (-Customer"). The Customer desires gas
service and the Utility is willing to furnish such service as provided herein and
under the applicable Tariff Rate Schedule(s) and Tariff Rules which have been
filed with the Public Utilities Commission of the State of california (-CPUC").
It is mutually agreed as follows: customer'. gas service hereunder shall
commence on or after August 1,1991 (date) at CUstomer's facilities located
at: 3392 East 50th Street
Vernon, CA 90058
SIC code 4911
This agreement ("Agreement") is made this ~day of
between Southern California Gas Company, a California
City of Vernon
CUstomer's facility is classified as
,
electrical services
Article I
SerYice !.evels
1.1 Service Level I service (SL-1) shall be considered the first gas delivered
to Customer. Customers who meet tariff requirements may purchase and/or
transport SL-1 service requirements as provided in Attachment A-1.
1.2 Service Levels 2-5 (SL-2-5) will be provided as contracted for by the
CUstomer according to the attachments entitled Attachments A-2, A-3, A-4 and A-5.
Article II
Ga. Service.
2.1 Upon termination of any Attachment A, if a new attachment has not been
executed by CUstomer for those service requirements and CUstomer continues to
take service, such transportation service will be provided under Service Level 5
of the tariff applicable to Customer.
2.2 Transportation Points of Receipt and Delivery are listed in Attachment B.
2.3 Customer will identify its Authorized Marketer and/or agents that will be
responsible for Customer's transportation arrangements with Utility, in
Attachment C, Transportation Operations Contacts. .
2.4 In the event sufficient gas is not transported to meet the CUstomer's gas -
requirements, Customer will receive service according to the terms and conditions
of Utility's Tariff Rate Schedule which provides for gas balancing services.
2.5 Customer will be billed according to the Transmission Charges Billing
Schedule set forth in Attachment D. This will be modified, if necessary,
according to the remaining or additional terms whenever any Attachment A-1, A-2,
A~3, A-4 or A-5 is terminated andior added.
2.6 In the event of curtailment of service to customer, CUstomer shall be
billed according to Attachment F, curtailment Billing, if curtailment billing is
different from what i~ shown in Attachment D.
Article III
Rotice. .
3.1 Any formal notice, request, or demand concerning this Agreement shall be
given in writing by Customer or Utility, and shall be mailed by Registered or
Certified mail"or de~ivered in hand, or faxed with confirmation as set forth
below, to the other party a..follows:
Form 6533 - Rev. 5-14-91
To Customer:
City of Vernon'
4305 Santa Fe Avenue
Vernon, California 90058
Attention: Director; Light & Power Uepartment
Southern California Gas Company
810 S. Flower
To Utility:
Attention:
Fax Numbers:
or to such other address as the parties may designate by written notice.
Statements, invoices and billings, and routine communications shall be sent by
Utility to Customer by first class U.S. mail to:
To Customer:
City of Vernon
4305 Santa Fe Avenue
Vernon, California 90058
3.2 Notices delivered by hand shall be deemed received when delivered. Notices
sent by FAX shall be deemed received upon receipt but must be confirmed by mail
within seventy-two (72) hours. Notices delivered by first class mail shall be
deemed received forty-eight (48) hours (not including weekends and holidays)
after deposit, postage prepaid, in the U.S. mail, or if certified or Registered
mailing is used, as acknowledged by the receipt of the Certified or Registered
mailing.
3.3 Utility in. its sole discretion may provide notice concerning termination of
service under this Agreement to this premises, by public posting at, or by mail
to, the following:
NA
Article IV
Miscellaneous
4.1 This Agreement i. not transferable by the CUstomer and cannot be assigned
without the prior written consent of the Utility which will not be unreasonably
withheld.
4.2 The CUst~er agrees to pay the Utility for all natural gas supply and
transmission service under this Agreement at the rates and under the conditions
set forth in the then current applicable Tariff Rate Schedule(s), or revisions
thereof authorized by the CPUC. All mOnthly payments must be received 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 applicable tariffs.
4.3 Change. in gas transportation nominations .hould be made during normal
bu.iness hour. as described in Rule 30.
4.4 All natural gas service deliv.red under this Agreement shall be supplied in
accordance with the rule. of the CPUC, and under such rules as may be adopted by
the Utility and approved by the CPUC. This Agreement shall be subject at all
time to such changes or modifications by the CPUC a. it may from time to time
direct in the exercise of-its .jurisdiction.
Form 6533 - Rev. 5-14-91
- 2 -
4.5 If at any,time(s) a party does not exercise one or more of its rights under
this Agreement, this shall not be deemed a waiver of its right to exercise such
right(s) at a future time.
Each applicable Attachment listed below is incorporated herein and i. an integral
part of this Agreement. This Agreement with the following Attachments and the
SoCalGas authorized tariffs and tariff rules constitutes the entire Agreement of
the parties for natural gas service, and all terms and other representations made
between the parties are embodied in this written Agreement. This Agreement shall
not be modified or amended except by a document in writing and duly executed by
Utility and Customer. The AttaChments executed herein are indicated by an X
below:
Initially Included
Attachments
1. Attachment A-l - Service Level 1
2. Attachment A-2 - Service Level 2
3. Attachment A-3 - Service Level 3
4. Attachment A-4 - Service Level 4
5. Attachment A-5 - Service Level 5
6. Attachment B - Transportation Points of Receipt
and Delivery
7. Attachment C - Transportation Operations Contacts
8. Attachment D - Transmission Charges Billing Schedule
9. Attachment E - Curtailment Notification Information
10. Attachment F - curtailment Billing
x
x
x K\:rJ) 1/~/1'
x
x
In witness whereof, the authorized representatives have executed two
(2) copies of the Agreement.
CUSTOMER:
By: X
~~ UTILITY:
&~~ BY'~1~
Title: City Administrator Title: Uec.' WU~ ~.~
Rll~~6 June 18, 1,991 Date:--=llJ#t1
BYl.\) I ~. ~ /U2^. t::4._ 6
DAVID B. BREARLEY Completed By: {~ )~ 1dV""-
CITY ATTORNEY
DATED &- If-OJ I
'.
Form 6533 - Rev. 5-14-91
Agreement for Gas Service between the
Southern Ca~ifornia Gas Company and City of Vernon
Dated June 18, 1991
Prime Account Number 18-2157-437-8771
Attachment 1.-2
SERVICE LEVEL - 2 (SL-21
x
partial SL-2 service
full requirements SL-2 service
1.
customer elects:
II.
SL-2
A.
Core Subscription Service
CUstomer contracts to purchase gas from the Utility subject to the
rates, terms and conditions of Tariff Rate Schedule(s)
NA which is incorporated herein and is an integral
part of this Agreement.
SL-2 Core subscription Service commences on or after 6:00 a.m. on
(date) and terminates at 6:00 a.m. on
B.
(date) .
C. CUstomer's annual SL-2 Core Subscription Contract Quantity is
therms.
D. To the extent CUstomer is not awarded the volumes shown in Paragraph
II-C above, CUstomer's annual SL-2 Core Subscription Contract
Quantity shall ~qual the amount awarded by Utility in its Service
Level Open Season and HPQs in Paragraph I1-F below will be adjusted
in accordance with the open season award. In this event, the parties
will execute a new Attachment A-2. Any remaining quantities not
awarded will be served under SL-5 unless CUstomer executes the
appropriate attachment for service levels 3 through 5.
E. CUstomer's take-or-pay and use-or-pay obligations shall be calculated
using the annual SL-2 Core Subscription Contract Quantity set forth
in Paragraph 11-C above, and using the rates set forth in Customer's
applicable Tariff Rate Schedule set forth in Paragraph 11-F,
Reference Number ____ below.
F. CUstomer is entitled to Maximum Purchase Quantities (MPQ) for SL-2
Core Subscription Service as follows: .
Reference Rate CPUC
Number 1. Schedule Priority
Maximum Purchase Quantity (KPQ - therms/day):
Jan.199 May 199_ Sep. 199
- -
Feb. 199 June 199_ Oct. 199_
-
Mar.199 July 199_ Nov. 199_
. -
Apr. 199_ Aug_ 199 Dec. 199
-
Form 6533 - ReV.. 5-14-91
..
Agreem~nt for Gas Service between the
Southern california Gas 'Company and City of Vernon
Dated June 18, 1991
. Prime Account Number 18-2157-437-8771
Attachment 1.-2
SL-2 Core Subscription Service
Reference Rate CPUC
Number 2. Schedule Priority
Maximum Purchase Quantity (HPQ - therms / day) :
Jan.199 May 199 Sep. 199_
- -
Feb.199 June 199 Oct. 199
- -
Mar. 199 July 199 Nov. 199
- - -
Apr. 199_ Aug. 199 Dec. 199
-
III. SL-2 Transportation Service
A. Customer contracts to transport gas subject to the rates, terms and
conditions of Rate Schedule(s) GT-60 which is
incorporated herein and is an integral part of thi~ Agreement.
B. SL-2 transportation service commences on and after 6:00 a.m. on
August 1, 1991 (date) and terminates at 6:00 a.m. on
August 1, 1993 (date).
C. Customer's annual SL-2 Transportation COntract Quantity is
1,690,000 therms.
D. To the extent customer is not awarded the volumes shown in Paragraph
III-C above, Customer's annual SL-2 T~ansportation Contract Quantity
shall equal the amount awarded by Utility in its Service Level Open
Season and KDQs in Paragraph III-F below will be adjusted in
accordance with the open season award. In this event, the parties
will execute a new Attachment A-2. Any remaining quantities not
awarded will be served under SL-S unless Customer executes the
appropriate attachment for service levels 3 through 5.
E. Customer's use-or-pay obligations shall be calculated using the
annual SL-2 Transportation Contract Quantity set forth in Paragraph
III-C above and using the rates set forth in Customer's applicable
Tariff Rate Schedule set forth in Paragraph III-F, Reference Number
-L beloW.
F. For purposes of nominating transportation deliverie.,CUstomer is
entitled to Maximum Daily Quantities (MDQ) for SL-2 transportation
service as follows:
Form 6533 - Rev..5-14-91
Agreement for Ga~ Service between the
Southern California Gas 'Company and City of Vernon
Dated June 18, 1991
Prime Account Number 18~2157-437-8771
1\ttachment 1\-2
~L-2 TranspOrtation Service
Reference Rate CPUC
Number 1. Schedule GT-60 Priority 3
Maximum Daily Quantity (MDQ - therms/day) :
Jan. 199 2 5,052 May 1991 5,052 Sep. 1991 4,598
Feb.1992 5,052 June 1991 4,598 Oct. 1991 4,598
Mar.1992 5,052 July 1992 4,598 Nov. 1991 5,082
-
Apr. 1991 5,052 Aug. 1991. 4,598 Dec. 1991. 5,052
Reference Rate CPOC
Number 2. Schedule Priority
Maximum Daily Quantity (MDQ - therms/day) :
Jan.199 Kay 199 Sep. 199
- - -
Feb.199 June 199 Oct. 199
- - -
Mar.199 July 199 Nov. 199
- - -
Apr. 199_ Aug. 199 Dec. 199
-
APPROVED AS TO FORU
BY~.f/
DAV ID d. BREARLEY r
CITY ATTORNEY .
DATED (,~ 1l'-"l1_~
By ~to: ~
"title City Administrator'
Date June 18, 1991
~..d.~O' U~ili~y
;rue ~~~.-;..
Date .
Form 6533 - Rev. 5-14-91
6,
Agreement for Gas Service ~etween the
Southern California Gas 'Company and. City of Vernon
Dated June 18. 1991
Prime Account Number 18-2157-437-8771
Attachment 1'.-2
IV. Second Year of Contract
A. CUstomer's monthly KDQs for the second year of this Contract will be
established no later than Kay 29, 1992. Such KOQs will be based on
CUstomer's historic requirements.
B. In the event Customer's total annual Contract Quantity increases for year
2, SoCalGas will accept CUstomer'. additional requirements only if SL-2
capacity is available for that period. CUstomer's annual COntract Quantity
will not decrease more than 10\ unless CUstomer can demonstrate to
SoCalGas' satisfaction that CUstomer's requirements have changed because of
governmental regulations or operational changes required by change in
business. Use of an alternative fuel is not an operational change
hereunder.
C. Customer's take-or-pay and use-or-pay obligations for the second year will
be calculated using the quantities calculated herein.
APPROVED AS TO FORM
BY ~.I\7( ~~
DAV IDE. BREARLEY
CITY ATTORNEY
PArED t-~~I ~
By - - ~eed to~ ~ By ~ t~: Utility
Title City Admini trator Title 1~~(e~ ~
Date June 18. 1991. Date ..,I.ual
'.
Form 6533 - Rev. 5-14-91
Agreement for Gas Service between the
Southern California Gas Company and City of Vernon
Dated June 18. 1991
Prime Account Number 18-2157-437-8771
Attachment Jl,-S
,ERVICE IZVJ!:L - 5 tSL-51
I. Customer contract. for SL-5 transportation service as follow8:
A. Customer i. 8ubject to the terms and conditions of Tariff Rate
Schedule(8) which is incorporated herein and is
an integral part of this Agreement.
B. SL-5 transportation service commences on or after 6:00 a.m. on the
first day of the calendar month of August, 1991and shall continue
from month to month thereafter until terminated as provided in
CUstomer's Tariff Rate schedule.
c. For purposes of nominating transportation deliveries, CUstomer is
entitled to Maximum Daily Quantities (MDQ) for SL-5 transportation
service as follow8:
Reference
Number
Primary
Rate
Schedule
Quantity
MDQ
Therms/Day
CPUC
Priority
Transmission
Rate ~ltherm
Tariff Negotiated
.
1.
2.
3.
4.
SL-5 Total
APPROVED AS TO FORM
BY 1), fI;, fJ~ -DV
DAV ID B. BREARLEY l-
e ITY ATTORNEY
DATED {,By \~~./~t:-~
Title City Administrator -
Date June 18, 1991
Agreed to:
Utility
By
Title
Date
Form 6533 - Rev. 5-14-91
.
Agreement for Cas Service between the
Southern California Gas Company and City of Vernon
Dated June 18. 1991
Prime Account Number 18-2157-437-8771
Attachment B
TRANSPORTATION POINTS OF RECEIPT AND DELIVERY
As of
(Date)
SoCalGas CUstomer Code
Points of
. "Receipt
Kaximum Daily
Ouantitv
1.
2.
3.
Service
Level
Total
Point'. of Delh'ery
Maximum
Quantity
Therms/Dav
Rate (~/therml
Tariff or Neqotiated
by Account
Rate
Schedule
1.' Account #:
'Meter #:
2. Account #:
Meter #:
3. Account #:
Meter #:
Form 6533 - Rev. 5-14-91
Delivery
Pressure
Priority
Agreement for GaB Service between the
Southern California Gas Company and City of Vernon
Dated June 18, 1991
Prime Account Number 18-2157-437-8771
~ttachment 8
Rate
Schedule
date.
of Delivery by
Maximum Daily
Quantity
'Therms/Dav
Account
*To be completed at a later
Points
Service
l-evel
Account #:
Meter #:
Rate (~/therm)
'Tariff or Neaotiated
Priority
4.
5. Account #:
Meter #:
6. Account #:
Meter #:
7. Account #:
Meter #:
8. Account #:
Meter #:
9. Account #:
Meter #:
Form 6533 - Rev. 5-14-91
Agreement tor Gas Service between the
Southern California Cae Company and City of Vernon
Dated June 18, 1991
Prime Account Number 18-2157-437-8771
Attachment B
Service
1-eve1
10. Account I:
Meter I:
11. Account I:
Meter I:
12 . Account I:
Meter I:
13. Account I:
Meter I:
14. Account I:
M~ter II
15. Account I:
Meter I:
Point.
of Delh'ery by
Maximum Daily
Quantity
Therms/Dav
Account
Rate
Schedule
Rate fe/therm}
Tar}ff or Neaotiated
Form 6533 - Rev. 5-14-91
Priority
....
Agreement for Gas Service between the
Southern California Gas Company and City of Vernon
Dated June 18, 1991
Prime Account Number 18-2157-437-8771
Attachment B
~t.l For Previoudy Lhted Delivery Point. by Account
Service
~evel
Rate
Schedule
Maximum Daily
Quantity
Therms IDav
Rate (~/therml
Tariff or Neootiated
Priority
Total Maximum Daily 1ransportation Capacity CUstomer May
Nominate Under This Agreementl '1'herms
Utility will bill Account Number for any standby or
imbalance charges. Utility will bill Account Number
for any storage charges. This Attachment B will change in accordance with any
changes in service level attachments for the accounts listed above.
Form 6533 - Rev. 5-14-91
Agreement for Gas Service between the
Southern California Gas Company and City of Vernon
Dated June 18, 1991
Prime Account Number i8-2157-437-8771
Attachment 0
TRANSMISSION CBARGESBILLIHG SCHEDULE
The Billing Schedule below specifies the sequence in which transmission rates are
applied to the Customer'. monthly metered throughput. It will identify fixed
base quantities and percentages for quantities used in excess of the base. In
the event service terminates under anyone Attachment without being replaced,
those quantities will be served under SL-S transportation service and will be the
last billed, following all Customer's requirements
subject to other Attachments. This schedule is effective from August 1, 1991
through August 1, 1991
BILLING SCHEDULE
contracted
Billing
Sequence
'*/Th/Day
Primary
Rate
Schedule
CPUC
Priority
Rates (~/therml
Tariff or Negotiated
Otherwise
Applicable . CPUC
Rate Priority
1.
100%
GT-60
3
Tariff
2.
3.
4.
s.
6.
7.
B.
supplemental Accounts Numbers:
Special Billing Instructions:
* The pe==en~&~e ~eEi~~~es ~he pe==en~ o~ ~he ~o~~l me~e=ec th=ough?u~ o~
APPROVED AS rll~mi C~(:~ome= 's: 1I::=O-.:::~E 1.::1:5e= ~i.s .h;:=eeme~t.
BY ~I~' \L; ~Ar~n; 0. ~
DAVID B. BREA;;;;~
;~;;DATf.~R'i:~ '=:'. ;r~ ". vt~i::-=:' ~~:~'=~
T~~:"~ City Administrator ;.~.~:'}--:~ r w~les~ My
:;!:~~ June 18,' 1991 :Il'.~' ----=zJ1 l<t I
1'::::u
: :: ~ ~
.~.....
- ~t!'T.. !-.: ~._.; :
.
Agreement for Gas Service between the
Southern California Gas COmpany and City of Vernon
Dated June 18. 1991
Prime Account Number 18-2157-437-8771
Attachment E
Curtailment Notification Information
Contact Name Telephone
Manuel Garcia (213) 585-5192
street Address city Zip Code
3392 E. 50th Street Vernon 90058
Mailing Address City Zip COde
4305 Santa Fe Avenue Vernon 90058
Division
Central
Contact Personnel Information (For emeraencv or core Drocurement services)
Any of the persons listed below may be notified by Utility to curtail natural gas
use at the facility listed above: (At least two names should be submitted)
Name and Title Plant Phone Home Phone Shift Hours
Manuel Garcia (213 ) 585-5192 ( ) Dav
Carlos Fadimo ( 213 ) 585-5192 ( ) Day
Jim Siegert (213 ) 585-5192 ( ) Day
Dispatcher (213 ) 585-5070 ( ) 24 Hours
( ) ( )
FACSIMILE INFORMATION:
SoCalGas may provide curtailment notification information to my facility via the ~
following telefax number (213) 585-3119
ADPIT:iONAL OPERATING INFORMATION: AM AM
Our peak operating period i. from 1:00G'M)to10:00(PM) 5 days/week.
We understand that we must discontinue natural 9as us~ediately upon
curtailment notification, unless instructed otherwise.
Additional remarks (optional):
'.
By ~eed.~#~
Title City Administrator
Date June 18, 1991
APPROVED AST~OFORU
Form 6533 ..B~ l~i~l ~
DAVID B. BREARLEY
CITY ATTORNEY
1
DATED {P-IY- or I
....
~ to. Utility
By ~~
Title lJW,..~~" ~
Date ---=24.1q I