Resolution No. 5946
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RESOLUTION NO. 5946
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON ESTABLISHING A GAS
MUNICIPAL UTILITY DEPARTMENT
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 607 on May 6, 1947, which gave to Southern
California Gas Company (SoCalGas) a franchise to provide gas
service to properties located within the City of Vernon; and
WHEREAS, said franchise provided at Section 23, that
it was a nonexclusive franchise; and
WHEREAS, SoCalGas and the City of Vernon entered into a
stipulation in Los Angeles Superior Court Case No. BC 018540,
which provided that the City of Vernon may supply competing gas
service to customers located within the City of Vernon; and
WHEREAS, said stipulated judgment was approved by the
Los Angeles Superior Court on April 16, 1991; and
WHEREAS, on May 31, 1989, 19 businesses located within
the City of Vernon petitioned the City Council of the city of
Vernon to explore alternatives to SoCalGas natural gas service,
including municipalizing the gas service to provide municipal
gas service to these customers, a copy of said petition is
attached hereto as Exhibit "A" and incorporated herein by this
reference as though fully set forth at length; and
WHEREAS, the City of Vernon has intervened in CPUC
Docket No. A.91-03-039 (SoCalGas 1991 ACAP) a rate case filed by
SoCalGas for the setting of transportation and gas rates pending
before the California Public utilities commission; and
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WHEREAS, the City of Vernon hereby intends to establish
a Gas Municipal Utility Department in order to provide gas
utility services in the city of Vernon in competition with
SoCalGas.
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.
SECTION 2: The City Council of the city of Vernon
hereby establishes the City of Vernon Gas Municipal utility
Department and appoints the City Administrator/City Clerk to be
the Chief Executive Officer of said Department.
SECTION 3: The Gas Municipal Utility Department is
hereby authorized to intervene before the California Public
utilities commission to request that wholesale rate schedules be
established so that the City of Vernon can take wholesale
service from SoCalGas for resale to various customers within the
City of Vernon.
SECTION 4: The Chief Executive Officer of the Gas
Municipal utility Department is authorized to pursue alternative
gas supply options other than SOCalGas.
SECTION 5: The Chief Executive Officer of the Gas
Municipal Utility Department is authorized to assign tasks and
duties relating to the gas department to other employees in
other City departments.
III
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SECTION 6: The City Clerk of the city of Vernon shall
2 certify to the passage of this resolution and thereupon and
3 thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 20th day of June, 1991.
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ATTEST: ~
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BRUCE V. MALKENHORST, city Clerk
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// ..' ~EONI S c. MAL RG, Ma or
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. 5946, was duly adopted by the City Council of the
6 City of Vernon at an adjourned regular meeting of the city
7 Council duly held on Thursday, June 20, 1991, and thereafter
8 duly signed by the Mayor of the City of Vernon.
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BRUCE V.
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MALKENHORST, City Clerk
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EXHIBIT '
A
Hay 31, 1989
Bruce Halkenhorst,
City Administrator
4305 Santa re Avenue
Vernon, CA 90058
SUBJBC~. BRBRGY ALTBRRA~IVBS - CI~Y or VBRHOR
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Dear Sir.
The group of coapanies listed below represent a sizeable
portion of the natural gas used in the City of Vernon. We all
share a com.on concern over reasonable costs for our natural gas,
especially if Ho. ~ Oil is banned as an alternate fuel. While
natural gas is the preferred fuel, we are uneasy that reasonable
transportation rates for natural gas will be offered by SoCal Gas
if Ho. 6 Oil, the only cost effective alternative to natural gas
is eliainated by the South Coast Air Quality Board. In soae
cases, full transportation tariffs will put us at a disadvantage
with our coapetitors. The potential of closing soae our opera-
tions and aoving to a aore receptive area remains a real
possibility.
In order to preclude moving and, also entice new business,
especially industry, we respectfully request the city undertake a
feasibility study to explore alternatives to SoCal's natural gas
service. This option could include a methanol plant, by-pass gas
lines and the possibility of municipalization, putting the City of
Vernon on a wholesale level similar to Long Beach Hatural Gas. As
an industrial city with limited residents, municipalization may
represent a unique opportunity which could be advantageous to both
the city, and to industry. Additionally, as a municipality, the
City of Vernon may also explore the possibility of combining
efforts with the by-pass pipeline project currently under consid-
eration by the Los Angeles Department of Water and Power.
In any case, we request your assistance to explore energy alterna-
tives that will assure industry remains in Vernon.
Bruce Malkenhorst
City Adainistrator
Vernon, CA 90058
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~HUR ~ _
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Cameron A. Raether
Manager of Purchasing
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Del C. Brooks
Manager
PA~ ZA~PR~~S
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Robert Lowney
Plant Manager
Production
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Page .2
Very truly yours,
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Bruce Remz
Plant Mana9~r
ALUMINUM COMPANY OF AMERICA
William Kvochak
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; BERN~Y-KARP L--~~.p
V)d'~ ,:;J(c/i
William G. Cox (
Controller
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~ ;P~BR~RDRY CO. ,IRC
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~Roland B. Meckel -
General Managers
i1~~G COHPARY
William M. Gorman
General Manager
DARLING DELAWARE
~~~,('C4.::,
Ben Dow
General Manager
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Bruce Malkenhorst
City Adainistrator
Vernon, CA 90058
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F~::CK~~S
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Brian Parker
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Fe1 ix Teshinsky
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Page 13
ORS
PEERLESS PUMP
CCI Mayor Leonis Malburg
David Brearley, City Attorney
CAR I j 9
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George Plant
GNB INC.
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Tom Canter