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Resolution No. 8718 1 2 3 RESOLOT10N NO. 8718 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND RATIFYING THE EXECUTION OF AN AGREEMENT FOR LEAK RESPONSE WITHIN THE CITY OF VERNON BY AND BETWEEN THE,~ITY OF VERNON AND SOUTHERN CALIFORNIA GAS COMPANY 5 6 7 WHEREAS, the City of Vernon (~CityH) is constructing a 134 8 MW Combined Cycle Power Plant, the Malburg Generating Station for the 9 purpose of installing additional generating capacity that will yield 10 an efficient, cost-effective, and reliable source of electric 11 generation to the City's inhabitants; and 12 WHEREAS, the City has constructed a natural gas distribution 13 system served at two locations (Bandini/Downey and Fruitland/Downey) 14 from SoCalGas Transmission Line 756 and two regulator stations are 15 located at the two locations to distribute gas from the transmission 16 system into the distribution system located in the City (the ~Vernon 17 Gas SystemH); and 18 WHEREAS, the gas lines of the City and the Southern 19 California Gas Company (~SoCalGasH) run parallel to each other and 20 upon the commissioning of the Vernon Gas System, natural gas will be 21 flowing through the lines of the City and SoCalGas; and 22 WHEREAS, SoCalGas and the City desire to enter into an 23 agreement setting forth guidelines under which field personnel and 24 representatives of the City and SoCalGas respond ,to leaks and 25 emergency incidents (the ~GuidelinesH); and 26 WHEREAS, the purpose of the Guidelines is to provide for 27 prompt and efficient control of an incident, thereby ensuring the .28 safety of the public and employees and the protection of property; and 1 WHEREAS, in order to meet the urgent need for the Guidelines 2 prior to the upcoming start-up of the Vernon's Gas System, the City 3 Administrator executed an Agreement Between the City of Vernon & 4 S?uthern California Gas Company for Leak Response within the City of 5 Vernon March 10, 2005 (the "Agreement") dated March 22, 2005, subject 6 to ratification by the City Council; and 7 WHEREAS, on April 5, 2005, the Finance Committee considered 8 the recommendation of Bruce V. Malkenhorst, the Director of Finance, 9 dated March 31, 2005, that the actions of the City Administrator in 10 executing the Agreement with SoCalGas be ratified; and 11 WHEREAS, the City Council desires to approve and ratify the 12 Agreement, as executed by the City Administrator; and 13 WHEREAS, the City Council of the City of Vernon has 14 determined that, pursuant to the provisions of subsection (a) of 15 Section 2.27 of the Vernon City Code, it is in the public interest and 16 necessity to ratify entering into the Agreement with SoCa1Gas. 17 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 18 CITY OF VERNON AS FOLLOWS: 19 SECTION 1: The City Council of the City of Vernon hereby 20 finds and determines that the recitals contained hereinabove are true 21 and correct. 22 SECTION 2: The City Council of the City of Vernon hereby 23 ratifies the execution of the Agreement Between the City of Vernon & 24 Southern California Gas Company for Leak Response within the City of 25 Vernon March 10, 2005, dated March 22, 2005, a copy of which is 26 attached hereto as Exhibit A and incorporated by reference. 27 / / / 28 / / / - 2 - 18 19 20 21 22 23 24 25 26 27 28 1 SECTION 3: 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 13th day of April, 2005. 5 6 .~~iiW~~~~ff~t{-V ' ,/" LEONIS C. MAL RG, ~yor 7 ATTEST: A-- /~ BRUCE V. MALKENHORST, City Clerk 8 9 10 11 12 13 14 15 16 17 - 3 - 1 STATE OF CALIFORNIA 2 3 4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do ss COUNTY OF LOS ANGELES 5 hereby certify that the foregoing Resolution, being Resolution No. 6 8718, was duly adopted by the City Council of the City of Vernon at a 7 special meeting of the City Council duly held on Wednesday, April 13, thereafter was duly signed by the Mayor of the City of 8 2005, and 9 Vernon. 10 11 12 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ~/~ BRUCE V. MALKENHORST, City Clerk - 4 - EXHIBIT A . Agreement Between the City of Vernon & Southern California Gas. Company for Leak Response within the City of Vernon March 10,2005 This agreement ("Agreement") is entered into and effective as of .~ f'} }/(lJ~.. .2005' ("Effective Date"), by and between Veroon, a California'municipal corporation ("Vernon" or "City") and Southern California Gas Company, a California corporation ("SoCalGas" or "Company"), collectively, the "Parties" or, individually, the "Party". 1. Purpose The purpose of this document is to provide guidelines for Vernon and SoCalGas field personnel and representatives when responding to leaks and emergency incidents. The guidelines are provided to.provide for public and employee safety and protection of property, with prompt and efficient control of the incident. 2. Def"minons 2.1. Emergency Incident. Emergency incidents are unsafe conditions involving, or potentially involving, natural gas and Vernon or Company facilities or personnel. The incident may be, but is .not limited to a fire, damage to underground facilities, explosion, gas leak, injury or death, gas outage, gas pressure problem/overpressure condition, hazardous or toxic material spill, or respOnse requested by fire, police or other agency. 2.2. Hazardous Leak. Hazardous leaks are leaks that represent an existing or probable hazard to persons or property, and require iinmediate repair or continuous action until the conditions are no longer hazardous, Examples may be, but are not limited to: 2,2.1. 2,2.2, 2.2.3. 2.2.4, A leak that has gas indications under a building or a building.foundation. Blowing or ignited gas. A leak with gas indications over 3% in substructures that people can enter, A leak with gas indications over 3% in an enclosure containing electrical equipment. 1 . . 3. General A suspected.gas leak or emergency incident within Vernon may occur on or around SoCalGas and/or V ernon natural gas facilities, Since it is likely that It will not immediately be Clear which party's facilities are involved in an incident, it is critical that the employees frombothSoCalGas and Vernon follow the procedural steps and protocols contained in this document These steps help provide a safe and expeditious response to leaks and incidents, proper coordination between SoCalGas and Vernon, and above all, consideration of public ~e~. ' 3.1. While SoCalGas owns or operates faciljities within Vernon, it will respond to all calls within Vernon for reported gas leaks, odor complaints, and damaged facilities related to natural gas, regardless offacility ownership, .Vernon and members of the public can report a leak or incident via the SoCalGas emergency number 1-800-427-2200. If a fire is involved, customers and members of the public are urged to call the local Fire Department or 911. 3.2. Identifiable Area Breakout Mechanism When all customers along a street in Vernon transfer service from the SoCalGas system to the Vernon system, SoCalGas may elect to abandon its gas main related thereto if, in SoCalGas' 'sole judgment, it is no longer needed. When a sufficient number of abandoned mains occur, in SoCalGas' sole judgment, in an easily identifiable area (such as identified on a map) where all SoCalGas facilities are abandoned or do not exist, then SoCalPas,will no longer respond to reports of leaks or emergency incidents for that area. These identifiable areas will be communicated to Vernon on an annual basis and Vernon thereafter will be the natural gas leak ~d emergency incident responder for those areas.. 3.3. Concurrent with any part of the Vernon gas system being gasified(currently scheduled for April 1, 2005) and thereafter, both SoCalGas and Vernon representatives must be capable of providing immediate response to an emergency incident on their distribution, transmission, service lines, and station facilities within Vernon, 24 hours a day, each day of the year, . 304. Action Taken by Field Personnel 3.4.1. 3.4.2. All hazardous leaks must be controlled promptly. When on site in response to an incident, field personnel are to take continuous appropriate emergency response action until the source of leaking gas is accurately determined and eliminated or other measures are taken to positively eliminate any hazards. 3.4 .3. SoCalGas and Vernon field personnel should consider the following factors when determining the action to be taken: 2 3.4.3.1, Public Safety. .This involves evacuating and restricting people, as appropriate to the situation, from any hazardous area or buildings~ Proper liaison with police and fire departments, and between SoCalGas and Vemon, is essential. 3.4.3.2. EmploveeSafety. Perform all work related to the incident with the maximum regard for safety that the nature of the work permits. 3.4.3.3. Protection of Property, Second only to the safety of the public and employees.j , I 3.4.3.4, Inconvenience to Public, Consider the effects of interruption of service to hospitals, schools and similar institutions; however, at no time is inconvenience given priority over public safety,. Prolonged blowing of gas, noise at night in residential . areas, blocking of street traffic, etc., are factors to be considered. 3.4.3.5. Relative Costs. Savings in costs is a factor; however, it is never sufficient reason to risk personal injury, 4. Leak Response 4.1. Leaks Called in or Reported Sinc~it is not known without a leak investigation which party's facilities are causing the actual or suspected leakage, SoCalGas will respond to all reports of natural gas leakage or suspected leakage, on and near piping and customer premises in Vernon, subject to Section 3.2 above, . 4.2~ Leakage Surveys 4.2,}, Both Vemonand SoCalGas will conduct leakage surveys on their respectivenatura1 gas pipeline facilities as part of their normal operations and maintenance work. 4.2.2. When SoCalGas is performing leakage surveys or other routine maintenance of its system and leakage is detected, SoCalGas will determine at the time of detection and based on its operating policies and procedures if the leak will be monitored or scheduled for repair. The City of Vernon will be notified of the decision, 4.2.3. If during the survey process the SoCalGas representative suspects the leak is from the Vernon gas system, or if while completing repairs it is revealed 3 . , that the leak is from the Vernon gas system, a SoCalGas representative will contact Vernon regarding the leak per Section 4.3 below, 4.3, Leak Investigations 4.3.1. When, during a leakage investigation or survey, a Vernon representative identifies leakage from a SoCalGas facility within Vernon, Vernon will notify SoCalGas via the provided emergency number (1-800-427-2200) and report the location of the leak. A SoCalGas representative shall respond to that location and take appropriate action. 4.3.2. When, during a leakage investigation or survey, a SoCalGasrepresentative identifies leakage :from a Vernon facility, SoCalGas will notify Vernon via the provided emergency number (1-323-585-5192 or 323-826-1461) and report the location of the leak. A Vernon representative shall respond to that location and take appropriate action. 5. Emergency Response 5.1. When SoCalGas and Vernon representatives are both on site in response to an incident, and prior to a determination that the incident is attributable to Vernon's facilities and that SoCalGas facilities are not affected, SoCalGas will take the lead in coordinating the parties' response to the incident. At the time it is determined that the incident is attributable to Vernon's facilities, and SoCalGas facilities are not affected, Vemon will assume responsibility for the conduct of the emergency response operation :from SoCalGas. 5,2. The first Company or City representative on the scene has an important role. That person's action may minimize or eliminate the potential for, or severity of, the hazards involved in an incident. The following actions apply to both SoCalGas and Vernon personnel as the first respondent on site for an incident. . Field personnel should evaluate and take the following actions, as appropriate, and in the order indicated by the situation: 5,2,1. Request Assistance. When conditions warrant such action, immediately request additional personnel and equipment. 5,2.2. Area Limits. Determine the area limits where escaping gas is present. Although gas from a leak or line break may appear 'to be venting safely to the atmosphere, it may also be migrating underground. M~e a perim~ter check to determine if gas is migrating into substructures or surrounding buildings, either through the ground or through the air. (Air intakes for commercial or home air conditioners are possible routes for gas to enter buildings. ) 4 5.2.3, 5.2.4, 5.25. Concentration of Gas. Determine if the concentration of escaping gas is . sufficient to make ignition a possibility, especially in or under structures, whether from underground migration or air movement. If a combustible gas indicator is not immediately available, a judgment decision should be made .00 the need to evacuate the area. Evacuation of People. Evacuate and restrict people from any hazardous area, particularly buildings, if the concentration of gas indicates ignition is a possibility. Determine the need for traffic control (rerouting or blocking of vehicular and pedestrian traffic). I Sources ofI21rition. .Elimin,ate and keep all sources of ignition from the restricted area, and warn persons against operating electric switches, internal combustion engines, electric motors, smoking, etc. NOTE: If working on a potentially flammable leak at night and lighting is required, use only Class 1, Division 1 (explosion proof) lighting. When necessary, contact Vernon Light & Power at (1-323-585-5192 or 1- 323-826-1461) for assistance ifany of the following conditions exist: 5.2.5.1, An electrical service should be de-energized to abuilding or group of buildings to mitigate danger of explosion, fire, or other threats to public or employee safety. I 5.2.5.2, To prevent re-ehergizingof electrical service to a building or group of buildings until danger of explosion, fIre or other threats to safety have passed. .5,2,5.3. Damaged gas line is in joint trench with a local electrical line. 5.25.4. Ina situation where there is a possibility that assistance by the V emonelectric department may be required, but no immediate action is necessary. 5.2.6. Reporting. When reporting incident information to the SoCalGas emergency number, report on all of the following to the extent known: 5.2.6.1. Cause of damage, 5.2.6.2. Damaged by Contractor or Company/City crew, and type of equipment used, 5.2.6.3. Size and type of line, ifknown. 5.2.6.4. Approximate depth of facility. 5.2.6.5. Any known injuries. 5 5,2.7. 5.2.8. .5.2.9. 5.2.6,6. Damage to property. 5.2.6.7. Ifpipeline liquids are released to the atmosphere and if Polychlorinated Biphenyls (PCBs) are suspected. 5.2.6.8. Need for Fire Department, Police Department, etc. 5.2.6.9. Was pipeline marked out? 5,2.6.10. In case ofMSA, were there barricades? Police and Fire Departments, Contact police andlor fire personnel on scene as soon as possible. Explain the situation, and give andlorask for assistance. Gas Migration, Check perimeters of the area of hazard to determine ifgas is migrating into sUrrounding buildings, Maintain Surveillance. Continue to maintain surveillance ofuncontrolled escaping gas using a combustible gas detector to.minimizethepotential hazard to the general public until assistance arrives. Continually monitor and review the situation to insure it does not escalate to a greater hazard, Continue to keep SoCalGas informed of conditions until assistance arrives. 5.3. When Vernon is First Respondent 53.1. 5.3,2. 533, 53.4. If a natural gas emergency incident occurs, and Vernon personnel or representatives are the first respondents on site, they shall notify SoCalGas immediately via the emergency number provided above and report the location to the responsible individual. A SoCalGas representative will respond to that location shortly thereafter. Upon arrival of the SoCalGas representative on site at the location of the incident the SoCalGas representative(s) will take the lead in responding to the incident. The Vernon representative(s)on site Will make themselves immediately available to brief the SoCalGas representative(s) of the incident and pertinent events and information. Vernon personnel or representatives shall not attempt to pinch or install fittings to any main or service facility belonging to SoCalGas or operate any valve in an effort to alleviate the conditions, When on site prior to SoCatGas, Vernon personnel should immediately secure the area, perform traffic control, and stand by for a SoCalGas Company representative to arrive. Upon arrival, a SoCalGas representative will survey the incident and make the necessary arrangements to alleviate the conditions. 6 5.3.5. While standing by for SoCalGas representatives to arrive, Vernon ' personnel can begin preliminary leak investigation via their procedures after they have secured the area. However, they shall not excavate using powered equipment (boring/trenching) within 24 inches of a SoCalGas underground facility. They can continue excavating near the SoCalGas facility only by hand to expose a pipeline. If it is revealed that the incident is attributable to a SoCalGas facility, Vemon personnel shall cease excavation and stand by for SoCalGas to arrive on site. 504, When SoCalGas is First Respondent I I If a natural gas emergency incident OC<1urs, and SoCalGas personnel or representatives are the first respondents on site, SoCalGas crews will begin leak ' investigation. If either by hand exposing the facility and identifying, or through leak investigation methods, it is revealed that the incident is attributable to a Vernon facility, SoCalGaspersonnel shall take the following steps: 5.4.1. SoCalGas personnel or representatives will notify Vernon immediately by calling the emergency number at (1-323-585-5192 or 1-323-826-1461) and report the location to the responsible individual, A Vemon representative and/or crew shall respond to that location to alleviate the condition. 5.4,2. SoCalGas personnel or reRresentatives will not pinch any main or service facility belonging to Vernqn or operate any valve in an effort to eliminate a condition, ' 5.4.3. SoCalGas personnel will secure the area, perform traffic control, and stand by for a Vernon representative to arrive on site. Upon arrival, theVemon representative shall survey the incident and make the necessary arrangements to alleviate the conditions. 6. Compensation 6.1. Reimbursement. 6.1.1. SoCalGas will seek and Vernon will pay to SoCalGas as provided below, compensation for incidents SoCalGas responds to that are determined to be on or as a result of the Vernon gas system when SoCalGas crews and/or supervisor are required to work the incident (after business hours of 7 am to 3 pm Monday through Friday, the starting time is the initial call to personnel) in excess of one (1) hour, except when the incident is determined to be caused by a third party. All work associated with leak identification, centering leakage, securing the area, performing traffic control, and other tasks performed by SoCalGas personnel or representatives to help alleviate an emergency condition, will be tabulated 7 6,1.2, 6,1.3. , . and billed to Vernon for compensation. This includes all associated costs relative to hourly labor rates, equipment, call outs, and any other associated costs related to the emergency, Vernon will seek and SoCalGas will pay to Vernon compensation for incidents Vernon responds to that are determined to be on or as.l.iresult of the SoCalGas gas system when Vernon crews and/or supervisor are required to work the incident (after business hours of 7 am to 5 pm Monday through Thursday, the starting time is the initial call to personnel) in excess of one (1) hour, except when the incident is determined to be caused by a third party. All work associated with leak identification, , centering leakage, securing the area, performing traffic control, and other tasks performed by Vernon personnel or representatives to help alleviate an emergency condition, will be tabulated and billed to SoCalGas for compensation, This includes all associated costs relative to hourly labor rates, equipment, call outs, and any other associated costs related to the emergency. Refer to Attachment B, Response Scenario Matrix, incorporated herein by reference, for examples of potential response scenarios where either Party would be submitting a bill for collection of costs related to Sections 6.1.1 and 6,1.2 above. This matrix is not meant to be a complete listing of all possible scenarios, and in any event the terms of this contract will supersede.Atfuchment B w:hen two are in conflict. 6.2. Charges for Services, The price to be charged and reimbursed under section 6.1 for each incident shall be determined according to Attachment A, Rate Schedule for Leak Response Services, as escalated in accordance with Section 6.4 below. Attachment A shall apply to both SoCalGas and the City of V ernon. 6.3. Price Escalation. AttachmentA, Rate Schedule for Leak Response ServiceswiU be escalated every 12 months, The charges shall be increased by an amount equal to any percentage change between the Customer Price index, All Urban Consumer, City Average ("CPI") as published by the Bureau of Labor Statistics of the United States Department of Labor for the twelve-month period ending three (3). full months prior to the anniversary, multiplied by the charge for each service. For example, the percentage change for the first anniversary assuming an Effective Date of February 1, 2005, shall be determined by subtracting the November 1, 2004 CPI from the November 1,2005 CPI and dividing the result o(such subtraction by the November 1, 2004 CPI to determine the CPI percentage change, which shall then be used to increase the charges for each service for the year beginning February 1,2006. 6.4. Billing/Pavrnent. 8 . .." .. .. 6.4.1. 6.4.2, SoCalGas shall. render Vernon an invoice for services rendered as a result of Vernon system incidents, All services shall be fully itemized as to the date of the incident, description of each service rendered, and the cost of each service, Vernon shall pay SoCalGasany outstanding balance due for all services provided by SoCalGas within nineteen (19) -calendar days of the mailing date ofSoCalGas' invoice. Vernon shall render SoCalGas an invoice for services rendered as a result of SoCalGas system incidents. All services shall be fully itemized as to the date of the incident, description of each service rendered, and the cOst of each service. SoCalGas $hall pay Vernon any outstanding balance due for all services provided by iV emon within nineteen (19) calendar days of the mailing date of Vernon' sin voice. 65. Late Charges. 6.5.1. 65.2. 7. Termination In the event that SoCalGas does not receive payment of any amount invoiced hereunder within the time frame set forth above in Section 6.4.1, such amount shall be subject toa late payment. charge of 15% of such amount (minimUm $50) for each month or portion thereof that it remains unpaid. ; . In the event that Vernon does not receive payment of any amount invoiced hereunder within the time frame set forth above in Section 6.4,2, such amount shall be subject to a late payment charge of 1 ~5% of such amount (minimum $50) for each month or portion thereof that it remains unpaid. With 24 months prior written notice, either party can elect to terminate this Agreement. 8. Notices Any notice, demand, infonnation, invoice, report or item otherwise required, authorized, or provided for this Agreement, unless otherwise specified herein, shall be deemed properly given if delivered in person, sent by telecopy during normal business hours with a confirmation copy mailed on the same bUsiness date, or sent by United States Mail, First Class postage prepaid. 'If sent by telecopy, notice shall be deemed received when the telecopy is sent and if sent by mail, notice shall be deemed received two business days after mailing: To SoCalGas: Southefll California Gas Company 555 West Fifth Street, ML GT22AI 9 . , Los Angeles, CA 90013 Attention: Title: Telephone: Telecopy: To Vernon: Martha Garcia Account Manager, Wholesale & Municipalities 213/244-3695 213/244-8222 Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Title: Telephone: Telecopy: 9. Miscellaneous Daniel Garcia Bulk Power Manager (323) 826-1422 (323) 826-1425 9.1. Interpretation. The interpretation and performance of this Agreement shall,he.in accordance with the laws of the State of California. 9.2. Amendment or'Modification. Except as required to conform with Californi~ law, and the orders, rules and regulations of the CPUC (to the extent it shall assert jurisdiction over this Agreement or any terms thereof), no amendment or modification shall he made to this Agreement except by an instrument in writing executed by authorized parties hereto, and no amendment or modification shall he made by.cou1-seof performance, course of dealing or usage of trade. 9.3, Waiver, No waiver by any party of one or more defaults under this Agreement shall operate or he construed as waiver of any other default or defaults, whether of a like or different character. 9.4, Damages. No party under this Agreement shall be assessed any special, punitive, consequential, incidcmtal, or indirect damages, whether in contract or tort, for any actions or inactions arising from or related to this Agreement. 9.5. Assignment. Except for a transfer to a successor in interest acquiring substantially all the assets of either party, this Agreement (and any rights or obligations related ' thereto) shall not be assigned without the prior written consent of the other party, which consent shall not he withheld unreasonably; provided, however, that the non- assigning party may require that any assignee confirm in writing its express assumption of all rights and obligations hereunder and, establish the assigneels creditworthiness to perform and discharge such rights and obligations, Assignment 10 shall be permitted only of the entire Agreement, and not any portion thereof (or rights related to a portion of this Agreement). 9.6. Force Maieure. Notwithstanding any other provision hereof and except for Vemonls obligations to make payments to SoCalGas, in the event that either SoCalGas or Vernon is rendered unable by an event or condition of Force Majeure to carry out, wholly or in part, its obligations under this Agreement, on such partyls giving notice and full particulars of such event or condition of Force Majeure to the other party as soon as possible after the occurrence of the event or condition relied on, the obligations of the party affected by such event or condition of Force Majeure, other than the obligation to make payments hereunder, shall be suspended during the continuance of any such inability. Such event or condition of Force Majeure shall, so far as reasonably possible, be remedied by the party claiming Force Majeure with all reasonable dispatch. However, the obligation to remedy Force Majeure events or conditions with all reasonable dispatch shall not require the settlement by either party of any strikes, lockouts or similar labor disputes by acceding to such demands when ' such action is inadvisable in the opinion of the party having the difficulty, For the av.oidance of doubt, settlement of any strikes, lockouts or similar labor disputes shall be entirely at the discretion of the party having the difficulty. For purposes of this Agreement IIForce Majeure" shall mean unanticipated events or conditions beyond the reasonable control of the party claiming Force Majeure which could not have been prevented by the. exercise of due diligence. 9.7. Covenant of Assurances. Each party shall do all necessary acts, and execute and deliver such written instruments, as ,sliall be reasonably required from time to time to carry out the intent and terms of this Agreement, including without limitation any , non-material changes to this Agreementnecessary to make it enforceable consistent with the intent of the parties and to conform to law. 9.8. Nondiscrimination. In connection with the performance of this Agreement and subject to applicable. rules and regulations, the parties shall not discriminate against any person or employee, or fail to provide any service on the basis of race, religion, national origin, color, age, sex, sexual orientation, AIDS, AIDS related condition, handicap, disability, or Vietnam Era veteran status. The parties shall ensure that applicants are employed, and that employees are treated during their employment, without regard to these bases. In connection with the performance of this Agreement, the parties shall be in compliance with all applicable provisions of the Americans with Disabilities Act (ADA). This section does not create a duty on either party to insure performance of the other party under this section. 9.9. Entire Agreement. This Agreement sets forth the entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes and replaces any and all prior and contemporaneous contracts, understandings, negotiations and discussions, whether written or oral regarding such subject matter. 9 ,} 0, Counterpart Execution. This Agreement may be executed in counterparts, and shall be deemed to be executed fully when representatives of each party have signed on 11 behalf of such party on counterpart signature pages for this. Service Agreement. Appendices or Amendments to this Agreement may be executed in the future consistent with this Section, 9,11. Confidentiality. Any and all pricing information (concerning the services SoCalGas provides pursuant to this Agreement) is the confidential, trade secret infonnationof SoCalGas, Vernon agrees not to disclose any pricing information to third parties, subject, however, to the requirements of the Public Records Act. IN WITNESS WHEREOF, the authorized representative(s) of the parties have executed both duplicate originals as of the date written above. VERNON SOUTHERN CALIFORNIA GAS COMPANY By: .~.. . /~ By' . . \;::' . Nmne: Bruce V. Malkenhorst Name: Title: City Administrator. Title: Date: March 22. 2005 Date: 12 Attachment A Rate Schedule for Leak Response Services 2-Person Crew 3-Person Crew Supervision * Straight time is time worked by an employee during their normal eight (8) hour shift. Time and One Half is overtime work, when an employee is requested to work past their . eight (8) hour shift, regardless of the time their shift Started or the day of the week. Double time is excessive overtime work, when an employee is requested to work in excess of twelve (12) continuous hours or twelve (12) cumulative hours occurring atdifferent intervals since the employee's last period of eight (8) or more hours off the job. ** t t Response personnel are trained to perform~efollowing duties:' .. Performs duties to. Company guidelines and established safety procedures · Ensure customers understand and are satisfied with work completed. · Performs locate and mark, job observation, and pipeline patrol activities · On some assignments, operates three inch and larger pressure control equipment. · On some assignments, performs gas welding and uses other plastic joining methods, · Responds to emergency incidents and.initiates appropriate action. · Performs large industrialMSA work, · Operates and maintains a wide variety of tools and instruments. · Responsible for accurate documentation and reporting of work completed. · Able to operate pipe locator, leak detector, hand held electronic instruments, heavy construction equipment and construction hand tools, gauges, pressure control equipment and all protective safety equipment, as well as hand and power tools. Permit fees required to perform work will be invoiced at cost to obtain the permit. 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S~~ CI) g. ~ :>:=c::s CI)'fI) ~ ~ ._~ ..c= >. ~ ~ -as .....o"tj 5 E ~ :-E'~ ~ g ~ l::S _fI)U . . .. - -. . . . . . . . .. ..... ~ ~ 00 "t:S 5 ~ ~ s:: o S (I) :> ~ CI) ....:l "t:S - fI) s:: :g s:: s:: o 0 t: 0 fE- ~ cg .~ CI) t\:l CI) bl) ~''3 P-4't5 oSEoCl) ~._ u ~ _0000_ ~ CI) ,.:..:j fI) E cSs:: I-t 0 CI)'- ~tiS s:: .~ Ot:i S CI) CI) > :>.:= t s:: ~ e s> .- s:: ~ 0 bl) .- ~' ~ 9 >cS .$fI)>- ~ .-C,.-:=: 't\:l ~,:;:: CI) t\:l 0 ....:l~~ . . . ~ CI) ....:l 00 S g 0.- "etiS Cl)bl) ~''::: o~ u~ 00 _ e CI) ~o s::u o"en .~ s:: bl)0 . _ "t:S ~ S >cS ':=00>- ~ .....::E CI)~'9 ....:l...2<.l:':: -.::t . . . ,~ CI) ....:l 00 S cSs:: """ 0 CI)'- ~tiS s:: .~ o~ S CI) CI) ~ :>- SUPPORTING DOCUMENTS , , Agreement Between the City of Vernon & Southern California Gas Company for Leak Response within the City of Vernon March 10, 2005 This agreement ("Agreement") is entered into and effective as of 3 /1- ]/(D ~ , 2005 ("Effective Date"), by and between Vernon, a California municipal corporation ("Vernon" or "City") and Southern California Gas Company, a California corporation ("SoCalGas" or "Company"), collectively, the "Parties" or, individually, the "Party". 1. Purpose The purpose of this document is to provide guidelines for Vernon and SoCalGas field personnel and representatives when responding to leaks and emergency incidents. . The guidelines.areprovidedto,provide for public and employee safety and protec~ion of property, with prompt and efficient control of the incident. 2. Definitions 2.1. Emergency Incident. Emergency incidents are unsafe conditions involving,. or potentially involving, natural gas and Vernon or Company facilities or personnel. The incident may be, but is not limited to a fire, damage to underground facilities, explosion, gas leak, injury or death, gas outage, gas pressure problem/overpressure condition, hazardous or toxic material spill, or response requested by fire, police or other agency. 2.2. Hazardous Leak. Hazardous leaks are leaks that represent an existing or probable hazard to persons or property, and require immediate repair or continuous action until the conditions are no longer hazardous. Examples may be, but are not limited to: 2.2.1. A leak that has gas indications under a building or a building foundation. 2.2.2. Blowing or ignited gas. 2.2.3. A leak with gas indications over 3% in substructures that people can enter. 2.2.4. A leak with gas indications over 3% in an enclosure containing electrical equipment. 1 t ., 3. General A suspected gas leakor emergency incident within Vernon may occur on or around SoCalGas andlorVernon natural gas facilities. Since it is likely that It will not immediately be clear which party's facilities are involved in an incident, it is critical that the employees from hothSoCalGas and Vernon follow the procedural steps and protocols contained in this do~ument, These steps help provide a safe and expeditious response to leaks and incidents, proper coordinationhetween SoCalGas and Vernon, and above all, consideration of public safety. 3.1. While SoCalGas owns or operates faciljities within Vernon, it will respond to all calls within Vernon for reported gas leaks, odor complaints, and damaged facilities related to natural gas, regardless of facility ownership. Vernon and members of the public can. report a leak or incident via the SoCalGas emergency number 1-800-427-2200. If a fire is involved, customers and members of the public are urged to callthe local Fire Department or 911. 3.2. Identifiable Area Breakout Mechanism When all customers along a street in Vernon transfer service from the SoCalGas system to the Vernon system, SoCalGas may elect to abandon its gas main related thereto if, in SoCalGas'sole judgment, it is no longer needed. When a sufficient number of abandoned mains occur, in SoCalGas' sole judgment, in an easily identifiable area (such as identified on a map} where all SoCalGas facilities .are abandoned or do not exist, then SoCaltGas, will no longer respond to reports of leaks or emergency incidents for that area. These identifiable areas will be communicated to V emonon an annual basis and Vernon thereafter will be the natural gas leak and emergen~y incident responder for those areas. 3.3. Concurrent with any part of the Vernon gas system being gasified (currently scheduled for April 1, 2005) and thereafter, both SoCalGas and Vernon representatives must be capable of providing immediate response to an emergency incident on their distribution, transmission, service lines, and station facilities within Vernon, 24 hours a day, each day of the year. 3.4. Action Taken by Field Personnel 3.4.1. All hazardous leaks must be controlled promptly. 3.4.2. When on site in response to an incident, field personnel are to take continuous appropriate emergency response action until the source of leaking gas is accurately determined and eliminated or other measures are taken to positively eliminate any hazards. 3.4.3. SoCalGas and Vernon field personnel should consider the following factors when determining the action to be taken: 2 1, 3.4.3.1. Public Safety. This involves evacuating and restricting people, as appropriate to the situation, from any hazardous area or buildings, Proper liaison with police and fire departments, and between SoCalGasand Vernon, is essential. 3.4.3.2. EmoloyeeSafety. Perform all work related to the incident with the maximum regard for safety that the nature of the work permits. 3.4.3.3. Protection of Property. Second only to the safety of the public and employees. I , I 3.4.3.4. Inconvenience to Public. Consider the effects of interruption of service to hospitals, schools and similar institutions; however, at no time is inconvenience given priority over public safety. Prolonged blowing of gas, noise at night in residential areas, blocking of street traffic, etc., are factors to be considered. 3.4.3.5. Relative Costs. Savings in costs is a factor; however, it is never sufficient reason to risk personal injury. 4. Leak Response 4.1. Leaks Called in or Reported Since it is not known without a leak investigation which party's facilities are causing the actual or suspected leakage, SoCalGas will respond to all reports of natural gas leakage or suspected leakage, on and near piping and customer premises in Vernon, subject to Section 3.2 above. 4.2. Leakage Surveys 4.2.1. Both Vernon and SoCalGas will conduct leakage surveys on their respective natural gas pipeline facilities as part of their normal operations and maintenance work. 4.2.2. When SoCalGas is performing leakage surveys or other routine maintenance of its system and leakageis detected, SoCalGas will determine at the time of detection and.based on its operating policies and procedures if the leak will be monitored or scheduled for repair. The City of Vernon will be notified of the decision. 4.2.3. If during the survey process the SoCalGas representative suspects the leak is from the Vernon gas system, orif while completing repairs it is revealed 3 that the leak is from the Vernon gas system, a SoCalGas representative will contact Vernon regarding the leak per Section 4.3 below. 4.3. Leak Investigations 4.3.1. When, during a leakage investigation or survey, a Vernon representative identifies leakage from a SoCalGas facility within Vernon, Vernon will notify SoCalGas via the provided emergency number (1-800-427-2200) and report the location of the leak. A SoCalGas representative shall respond to that location and take appropriate action. 4.3.2. When, during a leakage investigation or survey, a SoCalGasrepresentative identifies leakage from a Vernon facility, SoCalGas will notify Vernon via the provided emergency number (1-323-585-5192 or 323-826-1461) and report the location of the leak. A Vernon representative shall respond to that location and take appropriate action. 5. Emergency Response 5.1. Whe.n SoCalGas and Vernon representatives are both on site in response to an incident, and prior to a determination that the incident is attributable to Vernon's facilities and that SoCalGas facilities are not affected, SoCalGas will take the lead in coordinating the parties' response to the incident. At the time it is determined that the incident is attributable to Vernon's facilities, and SoCalGas facilities are not affected, Vernon will assume responsibility for the conduct of the emergency response operation from SoCalGas. 5.2. The first Company or City representative on the scene has an importantrole. That person's action may minimize or eliminate the potential for, or severity of, the hazards involved in an incident. The following actions apply to both SoCalGas and Vernon personnel as the first respondent on site for an incident. Field personnel should evaluate and take the following actions, as appropriate, and in the order indicated by the situation: 5.2.1. Request Assistance. When conditions warrant such action, immediately request additional personnel and equipment. 5.2.2. Area Limits. Determine the area limits where escaping gas is present. Although gas from a leak or line break may appear to be venting safely to the atmosphere, it may also be migrating underground. Make aperim~ter check to determine if gas is migrating into substructures. or surrounding buildings, either through the ground or through the air. (Air intakes for commercial or home air conditioners are possible routes for gas to enter buildings. ) 4 l .,. 5.2.3. Concentration of Gas. Determine if the concentration of escaping gas is sufficient to make ignition a possibility, especially in or under structures, whether from underground migration or air movement. Ifa combustible gas indicator is not immediately available, ajudgment decision should be made' on the need to evacuate the area. 5.2.4. Evacuation of People. Evacuate and restrict people from any hazardous area, particularly buildings, if the concentration of gas indicates ignition is a possibility. Determine the need. for traffic control (rerouting or blocking of vehicular and pedestrian traffic). I 5.2.5. Sources of Ignition. ElimilVlte and keep all sources of ignition from the restricted area, and warn persons against operating electric switches, internal combustion engines, electric motors, smoking, etc. NOTE: If working on a potentially flammable leak at night and lighting is required, use only Class 1, Division 1 (explosion proof) lighting. When necessary, contact Vemon Light & Power at (1-323-585-5192 or 1- 323-826-1461) for , assistance if any of the following conditions exist: 5.2.5.1. An electrical service should be de-energized to abuilding or group of buildings to mitigate danger of explosion, fire, or other threats to ,public or. employee safety. 5.2.5.2. To prevent re-ehergizingof electrical service to a building or group of buildings until danger of explosion, fire or other threats to safety have passed. 5.2.5.3. Damaged gas line is in joint trench with a local electrical line. 5.2.5.4. In a situation where there is a possibility that assistance by the V ernonelectric department may be required, but no immediate actionis necessary. 5.2.6. Reporting. When reporting incident information to the SoCalGas emergency number, report on all of the following to the extent known: 5.2.6.1. Cause of damage. 5.2.6.2. Damaged by Contractor or Company/City crew, and type of equipment.used. 5.2.6.3. Size and type ofline, ifknown. 5.2.6.4. Approximate depth of facility. 5.2.6.5. Any known injuries. 5 5.2.6.6. Damage to property. 5.2.6.7. Ifpipeline liquids are released to theatmosphereandif Polychlorinated Biphenyls (PCBs) are suspected. 5.2.6.8. Need for Fire Department, Police Department, etc, 5.2.6.9. Was pipeline marked out? 5.2.6.10. In case ofMSA, were there barricades? 5.2.7. Police and Fire Departments. Contact police and/or fire personnel.on scene as soon as possible. Explain the situation, and give. and/or ask for assistance. 5.2.8. Gas Migration. Check perimeters of the area of hazard to determine ifgas is migrating into sUrrounding buildings, 5.2.9. Maintain Surveillance. Continue to maintain surveillance of uncontrolled escaping gas using a combustible gas detector to minimize thepotentilrl hazard to the general public until assistance arrives. Continuallym()nitor and review the situation to insure it does not escalate to a. greater hazard. Continue to keep SoCalGas informed of conditions until assistance arrIves. 5.3. When Vernon is First Respondent 5.3.1. 5.3.2. 5.3.3. 5.3.4. If a natural gas emergency incident occurs, and Vernon personnel or representatives are the first respondents on site, they shall notify SoCalGas immediately via the emergency number provided above and report the location to the responsible individual. A SoCalGas representative will respond to that location shortly thereafter. Upon arrival oftbe SoCalGas representative on site at the location.ofthe incident the SoCalGas representative(s) will take the lead in responding to the incident. The Vernon representative(s) on site will make themselves immediately available to brief the SoCalGas representative(s)oftbe incident and pertinent events and information. Vernon personnel or representatives shall not attempt to pinch or install fittings to any main or service facility belonging to SoCalGas.or operate any valve in an effort to alleviate the conditions. When on site prior to SoCalGas, Vernon personnel should immediately secure the area, perform traffic control, and stand by for aSoCalGas Company representative to arrive. Upon arrival, a SoCalGas representative will survey the incident and make the necessary arrangements to alleviate the conditions. 6 5.3.5. While standing by for SoCalGas representatives to arrive, Vernon personnel can begin preliminary leak investigation via their procedures after they have secured the area. However, they shall not excavate using powered equipment (boring/trenching) within 24 inches of a SoCalGas underground facility. They can continue excavating hear the SoCalGas facility only by hand to. expose a pipeline. If it is revealed that the incident is attributable to aSoCalGas facility, Vernon personnel shall cease excavation and stand by for SoCalGas to arrive on site. . ... 504. .When SoCalGas is First Respondent I If a natural gas emergency incident oCGurs, and SoCalGas personnel or representatives are the first respondents on site, SoCalGas crews will begin leak ' investigation. Ifeither by hand exposing the facility and identifying, or through leak investigation methods, itisrevealed that the incident is attributable to a Vernon facility, SoCalGaspersonnel shall take the following steps: 5.4.1. SoCalGas personnel or representatives will notify Vernon immediately by callingthe emergency number at (1-323-585-5192 or 1-323-826-1461) and report the location to the responsible individual. A Vernon representative and/or crew shall respond to that location to alleviate the condition. 5.4.2. SoCalGas personnel or representatives will not pinch any main or service facility belonging to Vernqn or operate any valve in an effort to eliminate a condition. 5.4.3. SoCalGas personnel will secure the area, perform traffic control, and stand by for a Vernon representative to arrive on site. Upon arrival, the Vemon representative shall survey the incident and make the necessary arrangements to alleviate the conditions. 6. Compensation 6.1 Reimbursement. 6.1.1. SoCalGas will seek and Vernon will pay to SoCalGas as provided below, compensation for incidents SoCalGas responds to that are determined to be on or as a result of the Vernon gas system when SoCalGas crews and/or supervisor are. required to work the incident (after business hours of 7 am to 3 pm Monday through Friday, the starting time is the initial call to personnel) in excess of one (1) hour, except when the incident is determined to be caused by a third party. All work associated with leak identification, centering leakage, securing the area, performing traffic control, and other tasks performed by SoCa1Gas personnel or representatives to help alleviate an emergency condition, will be tabulated 7 6.1.2. 6.1.3. and billed to Vernon for compensation. This includes all associated costs relative to hourly labor rates, equipment, call outs, and .any other associated costs related to the emergency. Vernon Will seek and SoCalGas will pay to V ernoncompensation for incidents Vernon responds to that are determined to be on or asa result of the SoCalGas gas system when Vernon crews and/or supervisor are required to work the incident (after business hours of 7 am to 5 pm Monday through Thursday, the starting time is the initial call to personnel) in excess of one (1) hour, except when the incident is determined to be caused by a third party. All work associated with leak identification, centering leakage, securing the area, performing traffic control, and other tasks performed by Vernon personnel or representatives to help ,all~viate an emergency condition, will be tabulated and billed to SoCalGas for compensation. This includes all associated costs relative to houtly labor rates, equipment, call outs, and any other associated costs related to the emergency. Refer to Attachment B, Response Scenario Matrix, incorporated herein by reference, for examples of potential response scenarios where either Party would be submitting a bill for collection of costs related to Sections 6.1.1 and 6.1.2 above. This matrix is not meant to be a complete listing of all possible scenarios, and in any event the terms of this contract will supersede Attachment B when two are in conflict. 6.2. Charges for Services. The price to be charged and reimbursed under section 6.1 for each incident shall be determined according to Attachment A, Rate Schedule for Leak Response Services, as escalated in accordance with Section 6.4 below. Attachment A shall apply to both SoCalGas and the City of Vernon. 6.3. Price Escalation. AttachmentA, Rate Schedule for Leak Response Services will be escalated every 12 months. The charges shall be increased by an amount equal to any percentage change between the Customer Price index, All Urban Conswner,City Average ("CPI") as published by the Bureau of Labor Statistics of the United States Department of Labor for the twelve-month period ending three (3) full months prior to the anniversary, multiplied by the charge for each service. For example, the percentage change for the first anniversary assuming an Effective Date of February 1, 2005, shall be determined by subtracting the November 1,2004 CPI from the November 1, 2005 CPI and dividing the result of such subtraction by the November 1, 2004 CPI to determine the CPI percentage change, which shall then be used to increase the charges for each service for the year beginning February 1, 2006. 6.4. Billing/Payment. 8 6.4.1. SoCalGas shall render Vernon an invoice for services rendered as a result of Vernon system incidents., All services shall be fully itemized as to the date of the incident, description of each service rendered, and the cost of each service. Vernon shall pay SoCalGasany outstanding balance due for all services provided by SoCalGaS within nineteen (19) ,calendar days of the mailing date ofSoCalGas' invoice. 6.4.2. Vernon shall render SoCalGas an invoice for services rendered as aresult ofSoCalGas system incidents. All services shall be fully itemized as to the date of the incident, description of each service rendered, and the cost of each service. SoCalGas$hall pay Vernon any outstanding balance due for all services provided by 'N ernon within nineteen (19) calendar days of the mailing date of Vernon' sinvoice. 6.5. Late Charges. 6.5.1. In the event that SoCalGas does not receive payment of any amount invoiced hereunder within the time frame set forth above in Section 6.4.1, such amount shall be subject toa late payment charge of 1.5% of such amount(minimum $50) for each month or portion thereof that it remains unpaid. '[ 6.5.2. In the event that Vernon does not receive payment of any amount invoiced hereunder within the time frame set forth above in Section 6.4.2, such amount shall be subjectto a late payment charge of 1.5% of such amount (minimum $50) for each month orportioil thereof that it remains unpaid. 7. Termination With 24 months prior written notice,. either party can elect to terminate this Agreement. 8. Notices Any notice, demand, information, invoice, report oritem otherwise required, authorized, or provided for this Agreement, unless otherwise specified herein, shall be deemed properly given if delivered in person, sent by telecopy during normal business hours with a confirmation copy mailed on the same business date, or sent by United States Mail, First Class postage prepaid. If sent by telecopy, notice shall, be deemed received when the telecopy is sent and if sent by mail, notice shall be deemed received two business days after mailing: To SoCalGas: Southern California Gas Company 555 West Fifth Street, ML GT22Al 9 Los Angeles, CA 90013 Attention: Title: Telephone: Telecopy: To Vernon: Martha Garcia Account Manager, Wholesale & Miliiicipalities 213/244-3695 213/244-8222 Vernon 4305 Santa Fe Avenue Vernon, CA90058 Attention: Title: Telephone: Telecopy: 9. Miscellaneous Daniel Garcia Bulk Power Manager (323) 826-1422 (323) 826-1425 9.1. Interpretation. The interpretation and performance of this Agreement shall be in accordance with the laws of the State of California. 9.2. Amendment of Modification. Except as required to conform with Califomi~ law, and the orders, rules and regulations of the CPUC (to the extent it shall assert jurisdiction over this Agreement or any terms thereof), no amendment or modification shall be made to this Agreement except by an instrument in writing executed by authorized parties hereto, and no amendment or modification shall be made by course. of performance, course of dealing or usage of trade. 9.3. Waiver. No waiver by any party of one or more defaults under this Agreementshall operate or be construed as waiver of any other default or defaults, whether of a like or different character. 9.4. Damages. No party under this Agreement shall be assessed any special, punitive, consequential, incidental, or indirect damages, whether in contract or tort, for any actions or inactions arising from or related to this Agreement. 9.5. Assignment. Except for a transfer to a successor in interest acquiring substantially all the assets of either party, this Agreement (and any rights or obligations related thereto) shall not be assigned without the prior written consent of the other party, which consent shall not be withheld unreasonably; provided, however, that the non- assigning party may require that any assignee confirm in writing its express assumption of all rights and obligations hereunder and, establish the assignee's creditworthiness to perform and discharge such rights and obligations. Assignment 10 shall be permitted only of the entire Agreement, and not any portion thereof (or rights related toa portion of this Agreement). Force Maieure. Notwithstanding any other provision hereof and except for Vernon's obligations to make payments to SoCalGas, in the event that either SoCalGasor Vernon is rendered unable by an event or condition of Force Majeure to carry out, wholly or in part, its obligations under this Agreement, on such party's giving notice and full particulars of such event or condition of Force Majeure to the other party as soon as possible after the occurrence of the event or condition relied on, the obligations of the party affected by such event or condition of Force Majeure, other than the obligation to make payments Hereunder, shall be suspended during the continuance of any such inability. Such event or condition of Force Majeure shall, so far.as reasonably possible, be remedied by the party claiming Force Majeure with all reasonable dispatch. However, the obligation to remedy Force Majeure events or conditions with all reasonable dispatch shall not require the settlement by either party of any strikes, lockouts or similar labor disputes by acceding to such demands when such action is inadvisable in the opinion of the party having the difficulty. For the av.oidanceof doubt, settlement of any strikes, lockouts or similar labor disputes shall be entirely at the discretion of the party.havingthe difficulty. For purposes ofthis Agreement "Force Majeure" shall mean unanticipated events or conditions beyond the reasonable control of the party claiming Force Majeure which could not have been prevented by the exercise of due diligence. 9.7. Covenant of Assurances. Each party shall do all necessary acts, and execute and deliver such written instruments, assllallbe reasonably required from time to time to carry out the intent and terms of this Agreement, including without limitation any non-material changes to this Agreementnecessary to make it enforceable consistent with the intentofthe parties andto conform to law. 9.8. Nondiscrimination. In connection with the performance of this Agreement and subject to applicable rules and regulations, the parties shall not discriminate against any person or employee, or fail to provide any service on the basis of race, religion, national origin, color, age, sex, sexual orientation, AIDS, AIDS related condition, handicap, disability, or Vietnam Era veteran status. The parties shall ensure that applicants are employed, and that employees are treated during their employment, without regard to these bases. In connection with the performance of this Agreement, the. parties shall be in compliance with all applicable provisions of the Americans with Disabilities Act (ADA). This section does not create a duty on either party to insure performance of the other party under this section. 9.9. Entire. Agreement. This Agreement sets forth the entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes and replacesany,and all prior and contemporaneous contracts, understandings, negotiations and discussions, whether written or oral regarding such subject matter. 9.10. Counterpart Execution. This Agreement may be executed in counterparts, and shall be deemed to be executed fully when representatives of each party have signed on 11 behalf of such party on counterpart signature pages for this Service Agreement. Appendices or Amendments to this Agreement may be executed in the future consistent with this Section. 9.11. Confidentiality. Any and all pricing information (concerning the services SoealGas provides pursuant to this Agreement) is the confidential, trade secret,infonnation of SoCalGas, Vernon agrees not to disclose any pricing information to third parties, subject, however, to the requirements of the Public Re,cords Act. IN WITNESS WHEREOF, the authorized representative(s) of the parties have executed both duplicate originals as of the date written above. VERNON SOUTHERN CALIFORNIA GAS COMPANY By: ~../~BY: Name: Bruce V. Malkenhorst Name: Title: City Administrator Title: Date: March 22. 2005 Date: 12 Attachment A Rate Schedule for Leak Response Services 2~Pe:rSoh Crew 3-Person Crew Su ervision * Straight time is time worked by an employee during their normal eight (8) hour shift. Time and One Half is overtime work, when an employee is requested to work past their eight (8) hour shift, regardless of the time their shift started or the day of the week. Double time is excessive overtime work, when an employee is requested to work in excess oftwelve (12) continuous hours or twelve (12) cumulative hours occurring at different intervals since the employee's last period of eight (8) or more hours off the job. ** t t Response personnel are trained toperformtpe following duties: · ,Performs duties to, Company guidelines and established safety procedures · Ensure customers understand and are satisfied with work completed. · Performs locate and mark, job observation, and pipeline patrol activities · On some assignments, operates three inch and larger pressure control equipment. · On some assignments, performs gas welding and uses other plastic joining methods. · Responds to emergency incidents and,initiates appropriate action. · Performs large industrial MSA work. · Operates and maintains a wide variety of tools and instruments. - Responsible for accurate documentation and reporting of work completed. · Able to operate pipe locator, leak detector, hand held electronic instruments, heavy construction equipment and construction hand tools, gauges, pressure control equipment 'and all ,protective safety equipment, as well as hand and power tools. 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