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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Dept: City Administrator's Office
Date: April 15, 2003 ORIGINAL
Subject: Resolution of the Mayor and
Common Council authorizing
Amendment No. 1 to the revocable
license of the Southern California Gas
Company and extending the term to
September 30, 2003.
From: Fred Wilson, City Administrator
Synopsis of Previous Council Action:
December 12, 2002 - Council adopts Ordinance MC 1135 - An ordinance of the City of
San Bernardino amending sections of Municipal Code Chapter 14.04 regarding granting
of utility franchises
January 27,2003 - Council approves Resolution 2003-37 granting a revocable license
to the Southern California Gas Company for its operations in the city.
Recommended motion:
Adopt resolution
Contact person: Lori Sassoon
Phone: 384-5122
Supporting data attached: Staff report, resolution
Ward: All
FUNDING REQUIREMENTS:
Amount: None
Source: (Accl. No.)
(Accl. Description)
Finance:
Council Notes:
5/5 J{)3
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Agenda Item No. -i
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STAFF REPORT
Subiect:
Resolution of the Mayor and 'Common Council authorizing Amendment No. I to the revocable
license of the Southern California Gas Company and extending the term to September 30, 2003.
Back!!round:
In the Spring of 2001, the City received notification from the Gas Company that the current
franchise will expire in January 2003. The franchise agreement was last adopted in 1953 and
had a term of fifty (50) years.
Staff had a preliminary meeting with Gas Company representatives in June 2002, and then began
working to identify issues and topics for consideration in the new franchise. In the fall of 2002, it
became apparent that franchise negotiations and the Council actions needed to adopt the new
franchise could not be completed prior to the expiration of January 30, 2003. In order to provide
for the Gas Company's continued operations in the interim, Section 14.04 of the Municipal Code
was amended by the Council on December 12, 2002. The new ordinance language provides for
the issuance of a revocable license that will be given to the Gas Company until the franchise is
granted. Franchise payments under the revocable license will be made pursuant to the terms that
will be agreed upon in the new franchise.
On January 21, 2003, the Mayor and Council adopted Resolution 2003-37 authorizing the Mayor
to sign a revocable license with Southern California Gas for its operations commencing February
I, 2003. Since the license is effective for 120 days, it will expire on May 31, 2003.
Franchise negotiations with the Gas Company are nearly completed. However, approval of the
new franchise requires a series of actions by the Mayor and Council over the course of four (4)
Council meetings. As a result, it is now apparent that this process will not be completed prior to
the expiration of the revocable license on May 31.
To address this issue, it is recommended that a resolution be adopted approving an extension of
the revocable license for an additional 120-day period beginning June I, 2003 through
September 30, 2003. Staff anticipates that this will allow sufficient time for the franchise
process to be completed. The financial terms of the new franchise will be retroactive to the
original expiration date of January 30, 2003.
Financial Imoact:
There is no direct financial impact as a result of this action. By extending the revocable license,
the Gas Company will continue to provide services, and the City will be entitled to receive
franchise fees resulting from operations during this interim time period.
Recommendation:
Adopt resolution.
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
TO:
James F. Penman, City Attorney
FROM:
Henry Empefio Jr., Senior Deputy City Attorney
DATE:
May 1, 2003
RE:
Resolution Authorizing Amendment No. 1 to the Revocable License of the
Southern California Gas Company and Extending the Term to September 30,
2003. Agenda Item No.8, Council Meeting on May 5, 2003
The above-referenced Amendment No. 1 will only modify the existing Revocable License
by extending the term an additional 120 days, up to and including September 30, 2003.
The Resolution authorizing the Revocable License was adopted by the Mayor and Council
on January 1, 2003 without your signature of approvaL You previously raised the question as to
whether this License, once granted, can be terminated at will by the City. 1 called outside counsel
Donald Maynor who informed me that he is not aware of any legal authorities prohibiting such a
license agreement with a provision allowing termination at will. Mr. Maynor also said that Southern
California Gas Company has agreed to the terms of the Revocable License, and would be bound to
the provision allowing the City to terminate for any reason.
Both Mr. Maynor and 1 recommend approval of Amendment No. I as to legal form and
content. ~~
Henry Empefio Jr.,
Senior Deputy City Attorney
HE/cJ[RWeSLMeml
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1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING
AMENDMENT NO. I TO THE REVOCABLE LICENSE OF THE SOUTHERN
3 CALIFORNIA GAS COMP ANY AND EXTENDING THE TERM TO SEPTEMBER 30, 2003.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BER."lARDINO AS FOLLOWS:
5
6 SECTION I, The Mayor is hereby authorized to sign Amendment No, I to the Revocable
7 License of the Southern California Gas Company for its operations in the City of San Bernardino,
B Amendment No, I, attached hereto and incorporated herein as Exhibit "A", extends the term of the
9 Revocable License adopted by the Mayor and Common Council as Resolution No, 2003-37 and
10 attached hereto as Exhibit "B", for an additional one hundred twenty days, up to and including
11 September 30, 2003,
12 SECTION 2, This Amendment No, I is rescinded if the parties to the Revocable License
13 fail to execute it within sixty (60) days of the passage of the Resolution,
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HE/Cj[SouthemCalGas. Res] 1
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING
AMENDMENT NO. 1 TO THE REVOCABLE LICENSE OF THE SOUTHERN
2 CALIFORNIA GAS COMPANY AND EXTENDING THE TERM TO SEPTEMBER 30, 2003.
3 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
4 Common Council of the City of San Bernardino at a
meeting thereof, held on the _day
5 of
,2003, by the following vote. to wit:
6
COUNCIL MEMBERS: AYES
7
ESTRADA
8
LONGVILLE
9
MCGIN'NIS
10
DERRY
11
SUAREZ
12
ANDERSON
13
MC CAMMACK
14
15
16
NAYS
ABSTAIN ABSENT
Rachel Clark. City Clerk
17
The foregoing Resolution is hereby approved this _ day of
,2003.
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Approved as to fonn
23 and legal content:
24
JAMES F. PENMAN
25 City Attorney
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H EicJ [SouthemCalGas. Res] 2
JUDITH VALLES.
Mayor City of San Bernardino
EXHIBIT A
AMENDMENT NO.1 TO REVOCABLE LICENSE
Whereas, the City of San Bernardino through its Mayor and Common Council has issued a
Revocable License to the Southern California Gas Company ("Licensee") pursuant to Resolution No.
2003-37, for its operations in the City of San Bernardino (copy attached and incorporated herein as
Exhibit "B"); and
Whereas the City now wishes to extend the term of the Revocable License for an additional
one hundred twenty (120) days; now therefore
I. Section II (A) of the Revocable License is hereby amended to read as follows:
"A. Pursuant to San Bernardino Municipal Code Chapter 14.04, the City does hereby
issue a revocable license to Licensee to temporarily use its existing pipes and
appurtenances, in their existing locations, for transmitting and distributing gas for any
and all purposes, under, along, across or upon the streets of City for a period of one
hundred twenty (120) days commencing February 1,2003, and for an additional one
hundred twenty (120) days, up to and including September 30, 2003."
2. All other restrictions, terms, and conditions of the Revocable License shall rem am
unchanged.
CITY OF SAN BERNARDINO
Judith Valles, Mayor
Date
SOUTHERN CALIFO~"lIA GAS COMPANY
Date
II E/cJ [SollthemCa lGasExhlbit. A]
EXHIBIT "B"
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RESOLUTION NO. 2003-37
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO GRANTING A REVOCABLE LICENSE TO THE
SOUTHERN CALIFORNIA GAS COMPANY FOR ITS OPERATIONS IN THE CITY
OF SAN BERNARDINO.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERI"IARDINO AS FOLLOWS:
SECTION I. The Mayor is hereby authorized to SIgn a revocable license with
Southern California Gas Company for its operations in the City of San Bernardino commencing
February I, 2003 for 120 days, a copy of which is attached hereto, marked Exhibit "A" and
incorporated herein by reference as though fully set forth at length.
SECTION 2. This Resolution is rescinded if the parties to the Revocable License fail to
execute it within sixty (60) days of the passage of the Resolution.
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2003-37
I
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO GRANTING A REVOCABLE LICENSE TO THE
3 SOUTHERN CALIFORNIA GAS COMPANY FOR ITS OPERATIONS IN THE CITY
OF SAN BERNARDINO.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
jt.
and Common Council of the City of San Bernardino at a reg. meeting thereof, held on the
21stdayof January, 2003, by the following vote, to wit:
Council Members: AYES
ESTRADA X
LIEN LONGVILLE X
-
MCGINNIS X
DERRY X
SUAREZ X
ANDERSON X
MCCAMMACK X
-
NAYS
ABSTAIN ABSENT
.>12r1i (utJi1Pdi no.
. I
CIty Clerk
,
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The foregoing resolution is hereby approved this J 7n'
day of January
. .)-/
(." ;/ /---.
/ /-
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Neil Derr~ Pro Tern
City of San Bernardino
,2003,
Approved as to
Form and legal content:
JAMES F, PENMAN,
City Attorney
By:
EXHIBIT A
2003-37
REVOCABLE LICENSE
Whereas, the gas franchise agreement of Southern California Gas Company ("Licensee") expires as of
January 30,2003, and Licensee has requested, but has not yet obtained, a new franchise agreement;
Whereas, Licensee, pursuant to San Bernardino Municipal Code Chapter 14.04, has made a written
application requesting the Major and Common Council to issue the Licensee a written revocable license,
for a term not to exceed one hundred-twenty (120) days from the expiration of the License, permitting the
Licensee to continue to locate its existing facilities in or upon public property in the City during the term of
the license.
Whereas, the Mayor and Common Council has determined that it is in the public interest to issue a
revocable license to Licensee, subject to the following restrictions, terms, and conditions:
I. DEFINITIONS
Whenever the words or phrases hereinafter in this section defined are used, they shall
have the respective meanings assigned to them in the following definitions (unless, in the given instance,
the context wherein they are used shall clearly import a different meaning):
(a) The word "Licensee" shall mean Southern California Gas Company, and its lawful
successors or assigns;
(b) The word "City" shall mean the City of San Bernardino, a Charter City and a
municipal corporation of the State of California, in its present incorporated form or in any later reorganized,
consolidated or reincorporated form;
(c) The word "streets" shall mean the public streets, ways, alleys and places as the
same now or may hereafter exist within said City;
(d) The word "Engineer" shall mean the City Engineer of the City;
(e) The word "License" shall mean and include any authorization granted hereunder
in terms of a License, privilege, permit, license or otherwise to lay and use pipes and appurtenances for
transmitting and distributing gas for any and all purposes under, along, across or upon the public streets,
ways, alleys and places in the City, and shall include and be In lieu of any existing or future City
requirement to obtain a license or permit for the privilege of transacting and carrying on a business within
the City;
(f) The word "gas" shall mean natural or manufactured gas, or a mixture of natural
and manufactured gas;
(g) The phrase "pipes and appurtenances" shall mean pipe, pipeline, cable, main,
service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment,
appurtenance and any other property located or to be located in, upon, along, across, under or over the
streets of the City, and used or useful in, or in carrying on the business of, transmitting and distributing
gas;
2003-37
II. REVOCABLE LICENSE.
A. Pursuant to San Bernardino Municipal Code Chapter 14.04, the City does hereby issue a revocable
license to Licensee to temporarily use its existing pipes and appurtenances, in their existing locations, for
transmitting and distributing gas for any and all purposes, under, along, across or upon the streets of City
for a period not to exceed one hundred twenty (120) days, commencing February 1, 2003.
B. City shall have the right to revoke this License, without cause, and at any time, by giving Licensee thirty
(30) days prior written notice of revocation.
C. Except as otherwise specifically provided herein, the terms and conditions of the existing gas franchise
agreement dated January 30, 1953, are hereby incorporated in this License.
D. Licensee shall pay the City, as compensation for this License, the higher of: i) that amount calculated
using the compensation formula established in the new gas franchise agreement; or, ii) 2% of the gross
receipts of the Grantee derived from the sale, transmission, or distribution of gas, or from providing any
other service, within the limits of the City during the term of this License.
E. Any notices under this License shall be in writing and be delivered by courier service or by certified
mail, return receipt requested, or by telecopy with a confirming copy mailed (first class mail) by the next
business day, to the other party at the address shown below or at such other address as the party may
designate by written notice delivered in the manner provided for herein:
City of San Bernardino
Attn: City Cierk, City Administrator
300 North D Street
San Bernardino, CA 92418
Southern California Gas Company
Attn: License Manager
555 West Fifth Street
P.O. Box 3249
Los Angeles, CA 90051-1249
Telecopy number: 213-244-8212
Confirmation number: 213-244-5060
C,~"O
Neil DerrytM{yor Pro Tern
Date: January ,2003
NIA GAS COMPANY
/
Date: January ,2003
- 2 -
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, C.M.C. - CITY CLERK
300 North "0" Street. San Bernardino' CA 92418-0001
909.384.5002' Fax: 909.384.5158
www.ci.san-bernardino.ca.us
May 9,2003
Southern California Gas Company
555 West 5th Street
P.O. Box 3249
Los Angeles, CA 90051-1249
Attn: License Manager,
At the Mayor and Common Council meeting of May 5, 2003, the City of San Bernardino
adopted Resolution 2003-100 - Resolution authorizing Amendment No. 1 to the revocable
license of the Southern California Gas Company and extending the term to September 30.2003.
Enclosed is one (I) original agreement. Please sign in the appropriate location and return the
original agreement to the City Clerk's Office, Attn: Michelle Taylor, P.O. Box 1318, San
Bernardino, CA 92402, as soon as possible.
Please be advised that the resolution and agreement will be null and void if not executed
within 60 days, or by July 7, 2003.
If you have any questions, please do not hesitate to contact me at (909)384-5002.
Sincerely, A
c/71 t G /c ~}<"'/'(,"
Mi~helle T:ylor . .J . -
Senior Secretary
Enclosure
CITY OF SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity' Accountability' Respect for Human Dignity' Honesty
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
June 5, 2003
TO:
Lori Sassoon, Assistant to the City Administrator
FROM:
Michelle Taylor, Senior Secretary
RE:
Resolution 2003-100 - Southern California Gas Company
CC:
Attached is a fully executed copy of Amendment No. 1 to the revocable license of the Southern
California Gas Company extending the term to September 30, 2003. The original agreement is
on file in the City Clerk's Office.
If you have any questions, please call me at ext. 3206.
,
lr-" .
** FOR OFFICE USE ONLY.. NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): 5' S '0.3 Item # ~
Vote: Ayes \- 'I Nays h
ZeD 3 - I (JO
Absent ..Q-.
Resolution #
Abstain .B-
See Attached:/ Date Returned: (, -5-0 ')
See Attached:
See Attached:
Change to motion to amend original documents: .--.
Reso. # On Attachments:
/
-t1'ILl\
Contract term: q - 30 . o:~
Note on Resolution of Attachment stored separately: ~
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: 5 - to . c 3,
Date of Mayor's Signature: :5 J) -C 3
Date of C1erk/CDC Signature: 5 - '\ -03
Date Memo/Letter Sent for Signature:
'5,9'63
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
City Attorney ,./
Parks & Rec.
Code Compliance Dev. Services
Police Public Services Water
Notes:
Nul\JVoid After: loa OA-J5, 1']-'1-03
.
By: -
Reso. Log Updated:
Seal Impressed:
,/
y/
Yes L No By
Yes No -L-- By
Yes No ,/ By
Yes ,/ By
N07
Yes No
EDA
Finance
MIS
Others: P<-D ('(\ IN.
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: Mf'
Date: &-5 '03
Revised 01/12/01