Resolution No. 6103
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RESOLUTION NO. 6103
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND RATIFYING THE
EXECUTION OF A PRO FORMA AGREEMENT FOR GAS
STORAGE SERVICE, ACCOUNT NO. V08, BY AND
BETWEEN THE CITY OF VERNON AND SOUTHERN
CALIFORNIA GAS COMPANY
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WHEREAS, the Southern California Gas Company
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("SoCalGas") is offering an "unbundled" storage service program
to enable customers to select a mix of storage services and pay
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only for the services it uses which will help meet the diverse
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storage needs of its customers; and
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WHEREAS, the City of Vernon desires to participate in
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this unbundled program because --
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(i) customers who do not bid for rights during the bid
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season opened by SoCalGas and approved by the CPUC on
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May 20, 1992, for customers to select their desired
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combination of services for a period of 25 years may be
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shut out from future participation;
(ii) it will protect the City against supply disruptions
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which could require burning more expensive diesel fuel,
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if permitted by the South Coast Air Quality District;
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( iii)
it will provide load balancing to offset month-end
imbalances which could cause penalties;
(iv) it may minimize overall cost of gas by allowing the
City to purchase gas when it is less expensive and use
it during periods when it would be more expensive; and
(v) it will provide experience in developing skills in a
small procurement program which will be valuable when
the gas utility is fully established.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
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hereby finds and determines that the recitals contained
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hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
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hereby approves the Pro Forma Agreement for Gas Storage Services,
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a copy of which has been presented to the City Council
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concurrently with this resolution, and the city council hereby
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orders said Agreement to be received and filed by the City
Clerk.
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SECTION 3: The City Council of the City of Vernon
hereby ratifies the execution of said Agreement by the City
Administratorlcity Clerk for, and on behalf of, the City of
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Vernon due to an imposed deadline of SoCalGas approved by the
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CPUC.
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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
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 2nd day of June, 1992.
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~THOMAS A.
~BM:}?;~~or Pro Tem
AT.T 4 /7EST.
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BRUCE V.
MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
I, BRUCE V, MALKENHORST, city Clerk of the city of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 6103, was duly adopted by the city council of the
City of Vernon at a regular meeting of the City Council duly
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II BRUCE V, MALKENHORST, City Clerk
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