HomeMy WebLinkAbout10-City Administrator
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: Fred Wilson, City Administrator
Subject: Resolution of the Mayor and
Common Council stating the City's
intention to grant a franchise to the
Southern California Gas Company.
OR\G\NAL
Dept: City Administrator's Office
Date: June 2, 2003
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 adopts Resolution 2003-37 granting a revocable license to
the Southern California Gas Company for its operations in the city.
May 5, 2003 - Council adopts Resolution 2003 - 100 authorizing Amendment NO.1 to
the revocable license of the Southern California Gas Company and extending the term
to September 30, 2003
Recommended motion:
IJ;/n
Signature
Adopt resolution
Contact person: Lori Sassoon
Phone: 384-5122
Supporting data attached: Staff report, resolution, other Ward: All
FUNDING REQUIREMENTS: Amount: None
Source: (Accl. No.)
(Accl. Description)
Finance:
Council Notes:
ftJ/llf) J /)3
.
Agenda Item No. 10
'~~?~-'\dS
STAFF REPORT
Subiect:
Resolution of the Mayor and Common Council stating the City's intention to grant a franchise to
the Southern California Gas Company
Backl!:round:
In the Spring of 2001, the City received notification from the Gas Company that the current
franchise would expire in January 2003. The franchise agreement was last adopted in 1953 and
had a term of fifty (50) years.
Staff began meetings with Gas Company representatives in June 2002, and then began working
to identify issues and topics for consideration in the new franchise. The City contracted with
attorney Don Maynor, who is experienced in the negotiation of utility franchises, to advise us
through this process.
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 provided 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 would 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
1,2003. Since the license was originally effective for 120 days, it would have expired on May
31,2003. On May 5, the Mayor and Council adopted a resolution approving an extension of the
revocable license for an additional 120 day period beginning June I, 2003, in order to allow
sufficient time for the franchise process to be completed.
Franchise negotiations have now been completed, and staff is recommending the granting of a
new franchise to Southern California Gas. The process of granting the franchise will require a
series of actions by the Council. The following outlines those steps and the anticipated dates for
consideration:
Action #1 (June 16): Adopt resolution of intention to grant a franchise; set public hearing
for not less than 20 days nor more than 60 days after passage ofthe resolution.
Action #2 (July 7): Hold public hearing; first reading of the ordinance granting the
franchise.
Action #3 (July 21): Second reading of the ordinance granting the franchise.
Terms of New Franchise/Other Issues:
Attached is a draft of the proposed franchise agreement. The following is a summary of the key
franchise terms:
. 20 year term - In its franchise application, the Gas Company had requested a 25 year term.
The company has now agreed to staffs recommendation of a 20 year term. The 25 year
franchise is the common length in other cities. However, given the changing nature of the
utility industry, the shorter term is more desirable for the City.
. New 2% franchise fee formula - The franchise fee will now be calculated on the basis of
2% of gross receipts from the sale of gas within the city limits. The previous franchise fee
calculation was based upon a complex formula know as the Broughton Act formula, which
calculated the fee based on 2% of the gross receipts arising from the possession of the
franchise. That computation was made based on the amount the number of miles of gas
pipelines in the City as a ratio of Southern California Gas' total pipeline mileage.
This change in the franchise fee formula will result in an increase in franchise fee revenue to
the City. Many cities have a I % gross receipts formula; the 2% gross receipts formula is the
highest franchise fee currently paid by Southern California Gas.
. Continued commitment to restoring utility cuts to City standards - The new franchise
retains the City's right to require the Gas Company to repair street cuts to the satisfaction of
the City Engineer. This language was included in the previous franchise, and has been
maintained in the new franchise.
Development Services staff is currently developing a new standard for the repair of street
cuts. When the new standards are completed, the franchise will require compliance with
those standard. The Gas Company has continually noted its willingness to work
cooperatively with the City in ensuring that street cuts are properly repaired.
In a separate issue but related to the exercise of the franchise, a separate agreement has been
reached for an encroachment permit requested by the Gas Company for the installation of a new
24" pipeline. This 6.5 mile pipeline will be constructed through the City in order to supply
natural gas to the Mountain View power plant in the City of Redlands. In recognition of the
impacts of this construction on City streets, the Gas Company has agreed to the following:
. The Gas Company will pay the City $71,100, which represents their estimated cost for
repairing a 8-foot wide section ofthe streets that will be trenched for this project in areas that
the City has a planned CIP project. This contribution will be used for this pavement
rehabilitation project along Tippecanoe and Mill streets.
. For streets not within the City's pavement rehab projects, the Gas Company will provide a
higher level of repair than is typically done, with a value of$I72,200.
. The Gas Company will pay the City $250,000 for the use of the last remaining cell in the
Tippecanoe Bridge for its pipeline purposes.
Financial Imoact:
There is no direct financial impact as a result of approval of the resolution of intention.
If the new franchise is granted, it will result in additional If'anchise revenue to the City. For
calendar year 2002, the gas franchise fee totaled $386,300. The City's consultants estimate that
the additional revenue will range from $140,000 to $400,000 annually. The actual revenue will
vary due to fluctuations in the cost and volume of gas sold. It is also impacted by the volume
and dollar value of the Gas Company's transportation of gas from non-regulated natural gas
providers to power plants and other consumers. For budget pmposes, this additional revenue has
already been assumed in the FY 2003-04 Preliminary Budget.
Recommendation:
Adopt resolution.
~ .,
Ben P. Pruitt
Franch,u and Fus ManaK"
The
Gas
Company'
April 30, 2003
Ms. Lori Sassoon
Assistant to the City Administrator
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418-0001
Re: Application to renew gas franchise
Dear Ms. Sassoon,
Enclosed you will find two copies of Southern California Gas Company's
application to renew its franchise agreement to use the City's public
streets for transmitting and distributing natural gas.
Please have one copy certified by the City Clerk as received, and return
the copy in the enclosed envelope. I have also enclosed for your
information, and use, a check list that I use to ensure that the required
documents are completed and certified copies returned for my file.
Should you have any questions, please feel free to contact me.
Sincerely,
enclosures
cc: Carol Consolver
Robert Visconti
I
SallthelD California
Gas Comp."y
555 W Fifth 5tr<<1
Los Angd~J, CA
900/J.IOll
Mailing AJdreJJ:
Bo.dJJ249, Cn6E2
LOJ Angr:l~s. CA
9005/-1249
tel 213 244-2522
for 2/J 244-4997
emu;l:
bpruelt@soca/gas.rom
APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY
FOR A GAS FRANCHISE PURSUANT TO THE PROVISIONS OF DIVISION 3,
CHAPTER 2 OF THE PUBLIC UTILITIES CODE OF THE STATE OF CALIFORNIA,
KNOWN AS THE FRANCHISE ACT OF 1937.
To the City Council, of the City of San Bernardino, California.
The undersigned applicant hereby makes an application, under and pursuant to
the provisions of Division 3, Chapter 2 of the Public Utilities Code of the State of
California, for a franchise, and, in compliance with the provisions of Section 6231
thereof, states:
(a) The name of the applicant is Southern California Gas Company. The
applicant is a corporation organized and existing under and by virtue of the laws of the
State of California and engaged as a public utility corporation in transmitting and
distributing gas for all purposes to consumers in various municipalities and
communities in the State of California, including the City of San Bernardino.
(b) The purpose for which the franchise herein applied for is desired is 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, as
the same now or may hereafter exist within the City of San Bernardino.
(c) The term for which the franchise herein applied for is definite (25 years).
(d) The applicant, if granted the franchise herein applied for, will pay to the
City of San Bernardino during the life of such franchise, two percent (2%) of the gross
annual receipts of applicant arising from the use, operation or possession of said
franchise; provided, however, that such payment shall in no event be less than two
percent (2%) of the gross annual receipts of applicant derived from the sale of gas
within the limits of the City of San Bernardino under said gas franchise.
Dated this 24 day of April, 2003
SOUTHERN CALIFORNIA GAS COMPANY
- /
1 /), /" /.
K f ( r-V(< L.--"- >.
R. M. Rawlings, Ser1)or V' resident
By
Attest:
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( Catherine C. Lee, Secretary
555 W. 5th Street
Los Angeles, California.
st?; OW 9- AVW rn.
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Address:
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF SAN BERNARDINO )
I, RACHEL G. CLARK, City Clerk in and for the City of San Bernardino,
DO HEREBY CERTIFY that the foregoing and attached copy of the
Application for Southern California Gas Company for a gas franchise is a
true and correct copy of that now on file in this office.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of San Bernardino this 6th day of May, 2003.
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file t'l _ kc: ;;." _ ,A.~ J - Jilt" !<--.
Rachel G. Clark, City Clerk
,'\1 17 1( ) /',1/'
U I { c/-' A..cl 'L '--. .;}-.c1.1.' (~."'-~
By: Michelle Taylor, De' uty City Clerk
CITY OF SAN BERNARDINO
DEVELOPMENT SERVICES
PUBLIC WORKS DIVISION
TO:
Fred Wilson, City Administrator
Michael W. Grubbs, Acting City Enginee~#-
FROM:
SUBJECT:
24" High Pressure Gas Line in Mill Street, Arrowhead Avenue and San
Bernardino Avenue
DATE:
June 13, 2003
CC:
James Funk, Director of Development Services; Lori Sassoon, Assistant
to the City Administrator;
Starting November I, 2003, the Gas Company will be installing a 24" high pressure gas line
across the City in Mill Street, Tippecanoe Avenue and San Bernardino. The 24" gas line will
begin at a booster station in Rancho Cucamonga and pass through the Cities of Fontana, Rialto
and San Bernardino in route to its destination at the Mountain View Power plant. The attached
map illustrates the alignment of the proposed gas pipeline.
Trenching in the streets for the pipeline will be approximately 8 feet wide and 6 feet deep. The
excavated soil will be reprocessed and used as backfill for the trench. The Gas Company's
contractor will restore the pavement over the area affected by the trenching.
At the following locations which overlap with trenching for the gas pipeline, the City is
proposing to rehabilitate the streets full width:
1. Tippecanoe A venue from Central A venue to Mill Street.
2. Waterman Avenue at the intersection of Mill Street (330 feet x 80 feet).
3. Mill Street from "G" Street to "H" Street.
4. Mill Street from Mt. Vernon Avenue to Bridge over railroad/channel.
5. Mill Street from Rancho A venue to Macy Street.
At the above locations, the Gas Company will repair the trench 8 feet wide and flush with the
existing surface. The City will follow later with a grind and overlay of the full roadway width
of the above streets. The Gas Company is contributing $71, 100 in cash which represents its
cost had it been required to provide a finished overlay at each of the above listed locations.
At locations not listed above, which are affected by the Gas Company's trenching, the Gas
Company will overlay the entire width of the lanes affected by the trenching so as to provide a
smooth finish within each of the traffic lanes. This proposed method of repair is enhanced over
the standard trench repair method which would require the Gas Company to overlay only the 8
foot width of the trench. The "enhanced" trench repair method being required of the Gas
Company is estimated to cost approximately $172,200 more than the cost of a standard trench
repair.
The Mountain View Power plant, located at the northeast corner of Mountain View Avenue and
San Bernardino A venue in the City of Redlands, will be a 1056 megawatt natural gas-fired
electric generating facility upon its completion in 2004. The plant is currently being repaired
and renovated by Bechtel Corporation under terms of a contract with the plant owner, InterGen
of Burlington, Maryland.
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(01/&/2003
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Final 5/08/03
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN BERNARDINO
GRANTING TO SOUTHERN CALIFORNIA GAS COMPANY, A CORPORATION, ITS
SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVILEGE AND FRANCHISE 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, AS THE SAME NOW OR MAY HEREAFTER EXIST, WITHIN SAID MUNICIPALITY.
The Mayor and Common Council of the City of San Bernardino do ordain as follows:
SECTION ONE
Whenever in this ordinance 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 "Grantee" shall mean Southern California Gas Company, and its lawful
successors or assigns;
(tJ) 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 putJlic 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;
(e) The word "franchise" shall mean and include any authorization granted hereunder
in terms of a franchise, priviiege, permit, license or otherwise to lay and use pipes and appurtenances for
transmitting and distritJuting gas for any and all purposes under, along, across or upon the putJlic streets,
ways, alleys and places in the City as more fully set forth in Section Two (a) tJelow;
(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, catJle, main,
service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, appliance, attachment, adjunct
communications line, appurtenance and any other property located or to tJe located in, upon, along,
across, under or over the streets of the City, and used or useful in, or in carrying on the tJusiness of,
transmitting and distritJuting gas; and
(h) The phrase "lay and use" shall mean to lay construct, erect, install, operate,
maintain, use, repair, replace, or remove.
(i) The phrase "adjunct communications line" shall mean any facility such as coaxial
catJle, optical fitJer, wire or other transmission lines or forms of transmission, and associated equipment
and devices located in, upon, along, across, under or over the streets of the City, the sole function of
which is to monitor or control the operation or safety of the gas system facilities via the distritJution of
video, audio, voice or data signals. An adjunct communications line shall not include any facility which
distritJutes, through any means, to sutJscritJers or persons other than grantee, the signal of one or more
Final 5/08/03
broadcast television or radio stations or other sources of video, audio, voice or data signals for a length in
excess of 1 ,000 feet.
SECTION TWO
(a) That the right, privilege and franchise, subject to each and all of the terms and
conditions contained in this ordinance, and pursuant to Chapter 14.04 (Sections 14.04.010 -14.04.030) of
the San Bernardino Municipal Code, is hereby granted to Grantee to lay and use pipes and appurtenances
for transmitting and distributing gas for any and all purposes, under, along, across or upon the streets of
the City. Any proposed telecommunication or other non-gas system uses must be approved by the City
under a separate franchise or other applicable City permit.
(b) The term or period of this franchise shall be 20 years from and after the effective
date hereof; that is to say, this franchise shall endure in full force and effect until the same shall, with the
consent of the Public Utilities Commission of the State of California, be voluntarily surrendered or
abandoned by its possessor, or until the State of California or some municipal or public corporation
thereunto duly authorized by law shall purchase by voluntary agreement or shall condemn and take under
the power of eminent domain, all property actually used and useful in the exercise of this franchise, and
situated within the territorial limits of the State, municipal or public corporation purchasing or condemning
such property, or until this franchise shall be forfeited for noncompliance with its terms by the possessor
thereof.
(c) City shall have the right to terminate this Franchise by ordinance, at any time,
should any of the following events occur: (i) the Grantee fails to comply with any material provision hereof
or (ii) the City purchases (through its power of eminent domain or otherwise) all of the franchise property
of Grantee. The Grantee shall be given thirty (30) days written notice prior to the beginning of any
termination proceeding.
SECTION THREE
(a) The Grantee shall pay to the City at the times hereinafter specified, in lawful
money of the United States, a total annual Franchise Fee, initially calculated as of January 1, 2003, and
paid in the following manner:
(i) Gross Receipts from the Sale of Gas. A fee that is equal to the higher of:
(A) Two percent (2%) of the gross annual receipts of the Grantee derived from the
use, operation or possession of this franchise (Broughton Act Formula); or,
(B) 2% of the gross annual receipts of the Grantee derived from the saie,
transmission, or distribution of gas within the limits of the City under this franchise.
(C) In the event the legislature amends the Franchise Act of 1937 (Public Utilities
Code !l6201-6302) or enacts any other state law which increases the franchise payment
to cities to a level greater than that provided in this Section 3 (a), then the City shall have
the option of prospectively employing the legislative formula, which shall apply for the
remaining term of this agreement instead of the payments set forth in Section 3 (a)
herein. If the City exercises said option, the legislative formula shall be prospectively
applied hereto on the later of the effective date of the legislation or January 1 of the
calendar year in which the City exercised said option.
(ii) The Municipal Public Lands Use Surcharge as provided by Public Utilities Code
Sections 6354 and following, as may be amended from time to time.
- 2 -
122171v!
Final 5/08/03
(b) The Franchise Fee (as described in subsections (a)(i) and (a)(ii) above) shall be
paid in four installments, each installment being equal to the total gross receipts of the preceding calendar
quarter employing the gross receipts formula, plus the amount of the In Lieu Fee for the preceding
calendar quarter. Each installment shall be paid to the City on or prior to the twenty-fifth (25th) day of the
second month following the respective quarter for which payment is made, except for the final quarterly
payment for the year, which shall be paid on or prior to March 31st. For example, the installment for the
first quarter of the year (January through March) shall be paid to the City on May 25th. Any overpayment
shall be recovered by Grantee by setoff against future installments, or, if the franchise has been
terminated, such overpayment, or the balance thereof, shall be payable by City to Grantee upon wrillen
demand.
SECTION FOUR
(a) Any notices 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 wrillen notice delivered in the manner provided for herein:
City of San Bernardino
300 N. "0" Street
San Bernardino, CA 92418
Telecopy: (909) 384-5158
Telephone: (909) 384-5002
Alln: City Clerk
With a copy to City of San Bernardino
300 N. "0" Street
San Bernardino, CA 92418
Telecopy: (909) 384-5138
Telephone: (909) 384-5122
Alln: City Administrator
Southern California Gas Company
555 West Fifth Street
Los Angeles, CA 90013-1011
P.O. Box 3249
Los Angeles, CA 90051-1249
Telecopy number: 213-244-8223
Confirmation number: 213-244-5701
Alln: Senior Vice President, Distribution Operations
and a copy to:
Southern California Gas Company
555 West Fifth Street
Los Angeles, CA 90013-1011
P.O. Box 3249
Los Angeles, CA 90051-1249
- 3 -
122171v8
Final 5/08/03
Telecopy number: 213-244-4997
Confirmation number: 213-244-2528
Attn: Fees and Tax Manager, Regional Public Affairs
(b) This grant is made in lieu of all other franchises owned by the Grantee, or by any
successor of the Grantee to any rights under this franchise, for transmitting and distributing gas within the
limits of the City, as said limits now or may hereafter exist, and the acceptance of the franchise hereby
granted shall operate as an abandonment of all such franchises within the limits of this City, as such limits
now or may hereafter exist, in lieu of which this franchise is granted. This grant also supersedes that
certain Resolution 2003-37, granting a revocable license to the Southern California Gas Company for its
operations in the City of San Bernardino, adopted at the Mayor and Common Council meeting of January
21, 2003 and the Revocable License between the parties executed pursuant to said Resolution.
(c) The Grantee of this franchise shall file with the Clerk of the City within three (3)
months after the expiration of the calendar year, or fractional calendar year, following the date of the grant
of this franchise, and within three (3) months after the expiration of each and every calendar year
thereafter, a duly verified statement showing in detail the total gross receipts of the Grantee, its
successors or assigns, during the preceding calendar year, or such fractional calendar year, from the sale
of the utility service within the City for which this franchise is granted, and any other information needed to
calculate the Franchise Fee in SECTION THREE. Any neglect, omission or refusal by said Grantee to file
such verified statement, or to pay said Franchise Fee, at the times or in the manner hereinbefore
provided, shall be grounds for the declaration of a forfeiture of this franchise and of all rights thereunder.
SECTION FIVE
The franchise granted hereunder shall not become effective until written acceptance
thereof shall have been filed by the Grantee thereof with the Clerk of the City. When so filed, such
acceptance shall constitute a continuing agreement of the Grantee that if and when the City shall
thereafter annex or consolidate with additional territory, any and all franchise rights and privileges owned
by the Grantee therein shall likewise be deemed to be abandoned within the limits of the additional
territory.
SECTION SIX
The franchise granted hereunder shall not in any way or to any extent impair or affect the
right of the City to acquire the property of the Grantee hereof either by purchase of through the exercise of
the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify
or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee;
nor shall this franchise ever be given any value before any court or other public authority in any proceeding
of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid
by it to the City therefor at the time of the acquisition thereof.
SECTION SEVEN
The Grantee of this franchise shall:
(a) construct, install and maintain all pipes and appurtenances in accordance with
and in conformity with all of the ordinances, rules and regulations heretofore, or hereafter adopted by the
legislative body of this City in the exercise of its police powers and not in conflict with the paramount
authority of the State of California, and, as to State highways, subject to the provisions of general laws
relating to the location and maintenance of such facilities;
- 4 -
122171v8
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(b) pay to the City, on demand, the cost of all repairs to public property made
necessary by any operations of the Grantee under this franchise;
(c) Grantee shall also be liable to the City for all damages proximately resulting from
the failure of Grantee to observe and perform the provisions of this Franchise. This subsection (c) shall
survive the termination or expiration of this Franchise and shall continue for so long as franchise property
of Grantee is located within the City.
(d) Grantee shall indemnify, defend and hold harmless City and its officers from any
and all liability for damages proximately resulting from any operations under this franchise; and be liable to
the City for all damages proximately resulting from the failure of said Grantee well and faithfully to observe
and perform each and every provision of this franchise and each and every provision of Division 3,
Chapter 2 of the Public Utilities Code of the State of California. Grantee acknowledges that any claims,
demands, losses, damages, costs, expenses, and legal liability that arise out of, result from, or are in any
way connected with the release or spill of any legally designated hazardous material or waste as a result
of the use or existence of the pipes and appurtenances that are the subject of this Franchise are expressly
within the scope of this indemnity, and that the costs, expenses, and legal liability for environmental
investigations, monitoring, containment, abatement, removal, repair, cleanup, restoration, remedial work,
penalties, and fines arising from the violation of any local, state, or federal law or regulation, attorney's
fees, disbursements, and other response costs are expressly within the scope of this indemnity. This
subsection (d) shall survive the termination or expiration of this Franchise and shall continue for so long as
franchise property of Grantee is located within the City.
(e) In the event the use of any franchise property is discontinued, Grantee shall
promptly notify the Engineer of any material discontinuance and remove from the street all such
discontinued property, unless the Engineer permits such property to be abandoned in place in accordance
with the requirements of the Engineer (subject to applicable requirements of the California Public Utilities
Commission). After abandonment, at the option of City, Grantee shall submit to the Engineer, an
instrument, reasonably approved by the City and Grantee, transferring to the City the ownership of such
franchise property.
(f) City shall have the right to change the grade, width or location of any street, or
improve any street in any manner, including but not limited to the laying of any sewer, storm drain,
drainage facility, or other pipe, or construct and install any pedestrian tunnel, traffic signal, street lighting
facility or other public improvement; provided, however, that nothing herein is intended to expand or limit
the duty of Grantee to relocate at its expense under Public Utilities Code Section 6297 or common law,
and as such law may change from time to time by judicial interpretation or by statutory enactment. If such
work shall require a change in the position or location of any of Grantee's facilities or equipment, Grantee,
at its sole expense, within ninety (90) days after written notice from the Engineer, shall commence the
work of doing any and all things to effect such change in position or location in conformity with the
Engineer's written instructions.
(g) This franchise may not be transferred (voluntarily, involuntarily, or by operation of
iaw), leased, or assigned by Grantee except by consent in writing of the Common Council, which shall not
be unreasonably withheld or unreasonably conditioned and unless the transferee or assignees thereof
shall covenant and agree to perform and be bound by each and all of the terms hereof; provided,
however, that the foregoing shall not apply to Grantee's including of the franchise as security under a
mortgage, deed of trust or other security agreement securing the repayment of bonds or notes. Grantee
shall file with the City Clerk and City Administrator of the City within thirty (30) days after any sale, transfer,
assignment, or lease of this Franchise, or any part hereof, or of any of the rights or privileges granted
hereby, written evidence of the same, certified thereto by the Grantee or its duly authorized officers.
SECTION EIGHT
The City Treasurer, or any certified public accountant, or qualified person designated by
the City, at any reasonable time during business hours, may make examination at Grantee's offices of its
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122171v8
Final 5/08/03
books, accounts, computerized data, and records, germane to and for the purpose of verifying the data
set forth in the statement required by SECTION FOUR hereof.
SECTION NINE
(a) Any pipes and appurtenances laid, located or maintained under said franchise
shall be so placed as not to interfere with the use of the streets by the traveling public or for public
purposes to any greater extent than is reasonably necessary; and in laying said pipes and appurtenances,
Grantee shall fill the trench and leave the surface of the streets in as good condition as it was prior to
excavating for laying said pipes and appurtenances; and any pipes and appurtenances laid or maintained
under said franchise shall be laid, located and maintained in conformity with instructions given by and to
the satisfaction of the Engineer; and Grantee, its successors and assigns, shall hold the City harmless
from all damage resulting from the laying, use or operation of said pipes and appurtenances.
(b) Where it is necessary to lay any underground pipes and appurtenances through,
under or across any portion of a paved or macadamized street, the same, where practicable and
economically reasonable, as determined by the Engineer, shall be done by a tunnel or bore, so as not to
disturb the foundation of such paved or macadamized street; and in the event that the same cannot be so
done, such work shall be done under a permit to be granted by the Engineer upon application therefor,
and Grantee shall restore such street, or portion of street, to as good a condition as existed before such
work was done and such restoration shall be completed to the reasonable satisfaction of the Engineer.
SECTION TEN
If any portion of any street shall be damaged by reason of defects in any of the pipes and
appurtenances maintained or constructed under this grant, or by reason of any other cause arising from
the operation or existence of any pipes and appurtenances constructed or maintained under this grant,
Grantee shall, at its own cost and expense, immediately repair any such damage and restore such portion
of such damaged street to as good condition as existed before such defect or other cause of damage
occurred, such work to be done under the direction of the Engineer, and to his reasonable satisfaction.
SECTION ELEVEN
(a) If the Grantee of this franchise shall fail, neglect or refuse to compiy with any of
the provisions or conditions hereof, and shall not, within ten (10) days after written demand for
compliance, begin the work of compliance, or after such beginning shall not prosecute the same with due
diligence to completion, then the City, by its legislative body, may declare this franchise forfeited.
(b) The City may sue in its own name for the forfeiture of this franchise, in the event
of noncompliance by the Grantee, its successors or assigns, with any of the conditions thereof. The
remedy of forfeiture shall be in addition to any other iegal rights, remedies, or causes of action the City
may have, including but not limited to, the right to terminate under Section Two (c).
SECTION TWELVE
The Grantee of this franchise shall pay to the City a sum of money sufficient to reimburse
it for all publication expenses incurred by it in connection with the granting of this franchise; such payment
to be made within thirty (30) days after the City shall furnish such Grantee with a written statement of such
expenses.
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SECTION THIRTEEN
After the publication of this ordinance, the Grantee shall file with the City Clerk a written
acceptance of the franchise hereby granted, and an agreement to comply with the terms and conditions
hereof.
SECTION FOURTEEN
The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its
adoption, shall cause the same (with a list of the Council members voting for and against) to be published
once in the
Attest:
City Clerk
Mayor
I, , City Clerk of the City of San Bernardino, hereby certify at a reguiar
meeting of the City Council, held on the day of , 19_, the foregoing
ordinance was adopted by the following votes:
AYES:
NOES:
ABSENT
City Clerk
Dated
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122171va
The Gas Company
May I, 2003
Ms. Lori Sassoon
Assistant to the City Administrator
City of San Bernardino
300 North "D" Street
San Bernardino, CA 92418-000 I
Re:
Southern California Gas Company Road Encroachment Permit
Application-Installation of Approximately 6.5 miles of 24-Inch
Natural Gas Pipeline.
Dear Ms. Sassoon:
With Ray Casey's departure from the City, I have been asked to direct this letter
to your office. Southern California Gas Company ("The Gas Company") applied to the
City about one year ago for the above-referenced permit. The issuance of the permit has
been held up pending resolution of several issues.
The Gas Company and various City representatives have met on several occasions
and spoken by telephone on numerous other occasions. Within the past few weeks, I
spoke several times to Ray Casey, the City's former Deputy Director / City Engineer,
regarding the outstanding issues: pavement repair and a fee for using a cell (for the
pipeline) in the Tippecanoe Bridge. The City had made a proposal to The Gas Company
in a letter dated October 22,2002 from Mr. Casey to Robert Visconti of The Gas
Company. I explained The Gas Company's objections to the proposed City requirements
and made the following proposal for the paving, which Mr. Casey indicated to me he
supported:
(I)
(2)
The width of the trench repair area (for which The Gas Company will be
responsible) will be 8 feet (trench plus 2-3 feet on either side, for a total of
8 feet);
Part of the proposed route for the 24-inch pipeline is within an area in
which the City is planning to perform paving rehabilitation projects.
These are shown in the top table (Table I) of the document included with
this letter, marked Attachment A. The paving requirements of the permit
will require The Gas Company to saw cut the pavement for the trench of
the proposed pipeline and base pave the trench in accordance with City
standards for material and thickness. The base paving of the trench will be
SouthemCalifornia
Gas Company
555 ~V. Fifth Strut
Los Angeles, CA
900B-lOll
Mailing Addrrss:
Box 3249
Los Angeles. CA
9U051-12-19
Ms. Lori Sassoon
May 1, 2003
Page 2 ofl
left approximately %-inch below adjacent street pavement, in order to
allow the City to complete its paving rehabilitation of the entire street.
The City would perform all final paving and other work related to street
paving within these areas of Table I. The Gas Company will pay the City
$71,091, representing The Gas Company's estimated costs of repairing an
8-foot wide section of the streets. The Gas Company will make this
payment to the City (to use in its pavement rehabilitation projects)
following the granting of the permit by the City, but prior to construction
of the pipeline in the City.
(3) For the streets not within the City's pavement rehabilitation projects, i.e.,
those shown in Table 2 of Attachment A, The Gas Company will agree to
make a permanent repair of the trench plus 2 to 3 feet of the street adjacent
to the trench. The 8-foot wide repair will consist of base paving of the
trench as described above plus The Gas Company (or its contractor) will
grind the adjacent 2 to 3 feet of the street and repave (I-inch thickness) the
entire 8 foot width of the affected streets. The City estimates the cost of
this repair at $172,163. The Gas Company, however, will be responsible
for actually performing the 8-foot wide repaving (not just a contribution of
money as for the streets in Table 1).
The Gas Company would also be willing to pay the City $220,000 for the use (for
its pipeline) of the last remaining cell in the Tippecanoe Bridge. The City has indicated
to The Gas Company that the City's Water Department was planning to use this cell
itself. The Gas Company would be willing to make this payment in order to obtain the
use of the cell itself. The Gas Company would make this payment to the City upon
commencement of construction of the pipeline in San Bernardino, at the same time as the
$71,091 is paid. Mr. Casey indicated to me that he would take this offer to the City, but
his new employment began before I heard back from him.
The City's consideration of this settlement proposal for the issuance of the permit
for The Gas Company's installation of its 24-inch pipeline is appreciated.
S~J<I{~
Ronald Bott
Enclosure
cc: Mr. Robert Visconti, Public Affairs Manager
Engineering & Technical Services
555 W. 5th 51. GT 23F1
Los Angeles, CA 90013
Mailing Address:
Box 513249
Los Angeles, CA 90051
FACSIMilE TRANSMITTAL I
To: Ray Casey
..7 7SfJ
Fax: 909-384 U711
From: Ron Bott
Date: April 17, 2003
Phone: 213-244-5423
Pages: 2 including cover sheet
Re: Paving Repair Plan
~:.
".;;~.;;;:;---;~~;.~~~~-~~;-,Jtii~~Lj,;; ;:..~~ILi{~-:..",2.1;:jJ;~~7;~':;!:f_
Ray,
Here is a marked up draft of the proposed paving rehabilitation table, The revisions are based on an 8 foot
wide grind and pave. We are developing a letter describing the details of the paving plan that will
accompany the fmal table.
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CCOfY
RESOLUTION NO. 2003-125
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO STATING THE CITY'S INTENTION TO GRANT A
FRANCHISE TO THE SOUTHERN CALIFORNIA GAS COMPANY
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1.
WHEREAS, the Common Council has received from Southern
California Gas Company, a corporation organized and existing under and by virtue of the laws
of the State of California, and engaged as a public utility corporation in transmitting and
distributing gas for all purposes to consumers in various municipalities and communities in the
State of California, including the City of San Bernardino, an application, under and pursuant to
the provisions of Chapter 14.04 of the San Bernardino Municipal Code and Division 3, Chapter
2 of the Public Utilities Code of the State of California, for a franchise, which said application
states that the purpose for which the franchise therein applied for is desired is 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, as the same now or may
hereinafter exist within the City of San Bernardino; and that the term for which the franchise
therein applied for is 25 years;
SECTION 2. WHEREAS, said application further states that the applicant, if granted
the franchise therein applied for, will pay to the City of San Bernardino, during the life of such
franchise, two percent (2%) of the gross annual receipts of applicant arising from the use,
operation or possession of said franchise; provided, however, that such payment shall in no
event be less than two percent (2%) of the gross annual receipts of applicant derived from the
sale of gas within the limits of the City of San Bernardino, under said gas franchise.
2003-125
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO STATING THE CITY'S INTENTION TO GRANT A
FRANCHISE TO THE SOUTHERN CALIFORNIA GAS COMPANY
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SECTION 3. NOW, THEREFORE, BE IT RESOLVED that the Common Council
under and pursuant to the provisions of Chapter 14.04 of the San Bernardino Municipal Code
and Section 6232 of the Public Utilities Code of the State of California, does hereby declare its
intention to grant to Southern California Gas Company the franchise so applied for; and
Monday, the 21st day of July, 2003, at four o'clock, p.m., at the place where the Common
Council usually meets, to wit the San Bernardino City Council Chambers, 300 North "D"
Street, San Bernardino, is hereby fixed as the day, hour and place when and where all persons
having any objection to the granting of such franchise may appear before the Common Council
and be heard thereon, (the time so fixed for such hearing being not less than twenty (20) nor
more than sixty (60) days after the date of the passage of this resolution); and,
SECTION 4. That the City Clerk is hereby directed to publish a notice at least once
within fifteen (15) days after the passage of this resolution. in a newspaper of general
circulation within the City of San Bernardino, to wit, in The Sun, in the words and figures as
follows:
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III
III
2
2003-125
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO STATING THE CITY'S INTENTION TO GRANT A
FRANCHISE TO THE SOUTHERN CALIFORNIA GAS COMPANY
"NOTICE OF INTENTION TO GRANT GAS FRANCHISE"
TO WHOM IT MAY CONCERN:
Notice is hereby given by the Common Council of the City of San
Bernardino that it intends to grant, under and pursuant to Chapter 14.04 of the
San Bernardino Municipal Code and Division 3, Chapter 2 of the Public Utilities
Code of the State of California, known as the Franchise Act of 1937, to Southern
California Gas Company, a corporation, a franchise 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 as the same now or may hereafter
exist within the City of San Bernardino. The 21st day of July 2003, at four
o'clock, p.m., at the place where the Common Council usually meets, to wit, San
Bernardino City Council Chambers, 300 North "D" Street, San Bernardino, is
hereby fixed as the day, hour and place when and where any and all persons
having any objection to the granting of said franchise may appear before the
Common Council and be heard thereon. At any time not later than the hour so
set for the hearing of objections, any person interested may make written protest,
stating objections against the granting of such franchise. Such protest must be
signed by the protestant and be delivered to the City Clerk.
The term for which said franchise is proposed to be granted is a definite
term (20 or 25 years).
The grantee of said franchise, and its successors and assigns, shall,
during the life of said franchise, pay to the City of San Bernardino two percent
(2%) of the gross annual receipts of the grantee and its successors and assigns
arising from the use, operation or possession of said franchise; provided,
however, that such payment shall in no event be less than two percent (2%) of
the gross annual receipts of the grantee, its successors and assigns, derived from
the sale of gas within the limits of the City of San Bernardino under said gas
franchise. Said percentage shall be paid in four installments (quarterly) and
shall be initially calculated as of January I, 2003, and in the event such payment
shall not be made, said franchise shall be forfeited.
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2003-125
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO STATING THE CITY'S INTENTION TO GRANT A
FRANCHISE TO THE SOUTHERN CALIFORNIA GAS COMPANY
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
j t.
Common Council of the City of San Bernardino at a reg. meeting thereof, held on the 16th
day of June
, 2003, by the following vote, to wit:
Council Members: AYES
NAYS
ABSTAIN ABSENT
ESTRADA
x
LONGVILLE
x
MCGINNIS
x
DERRY
x
SUAREZ
x
ANDERSON
x
MCCAMMACK
x
(A,c-^hl.. J.J ~,-L
Ci~lerk
The foregoing resolution is hereby approved this
day of June ,2003.
"~'/"'~
, ~-(>o t'-,~
'/
Susan Longville, Mayor Pro Tern
City of San Bernardino
Approved as to
Form and legal content:
JAMES F. PENMAN,
City Attorney
1
By: JJr~ 7 ./~
()
4
-
MThe
Gas
Company'
Robert Visconti
Public Affairs Manager
Southern California
Gas Company
624 W. 4th Street, Suite F
San Bernardino, CA 92410
)
A ~ Sempra Energy. company
Tel: 909.335.7941
James F. Penman, City Attorney
City of San Bernardino
300 North "D" Street
San Bernardino. Ca. 92418
June 16, 2003
Dear Mr. Penman,
] wanted to convey my appreciation to the City of San Bernardino for the professionalism
and dedication during the preceding 14 months of discussions and negotiations for the
renewal of our Franchise Agreement with the City.
The Gas Company accepts the terms and conditions of the final draft of the Franchise and
concurs with the City Administrator and Staff recommendation to adopt the resolution of
intent to grant franchise and respective ordinance.
Due to the time and resources required on behalf of the City and The Gas Company in
this process, we requested the term of the franchise agreement be 25 years, the maximum
allowed by city ordinance. We would like the City's agreement to the 25-year term, but
will not object to a 20-year term if the City Administrator and City Attorney do not make
this recommendation.
The Gas Company and the City of San Bernardino have a long-standing positive
relationship and I appreciate the many hours dedicated to this project by the City
Administrator, City Attorney and City Engineers offices and look forward to continuing
our relationship.
Sincerely,
~~
Robert A. Visconti
At~.&/i. .r~
=#/0
(" -/6-03
.
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
'ZC62:,-IZS
Absent e-
Meeting Date (Date Adopted): ~ -, b'Q:$ Item # I 0 Resolution #
Vote: Ayes ,- 'l Nays f2r Abstain A-
Change to motion to amend original documents:
Reso. # On Attachments: - Contract term:
Note on Resolution of Attachment stored separately: --=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
,-
Date Sent to Mayor: (, -1<;';-00:,
Date of Mayor's Signattue: l ., '1-CY3
Date of ClerklCDC Signature: ~ - :)C' -0 :<..
Date ~~r Sent for Signature:
60 Day Reminder Lelln S...8t Q" 10th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attacbed:
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:
NullNoid After: -
By: j'(\.~ \ tire...-
Reso. Log Updated: /
Seal Impressed: v/
Date Returned: -
Yes~ No By
Yes No~ By
Yes NOL By
Yes NO~ By
Yes No By
EDA
Finance
MIS
Others:
pti)m i,l.
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: ~
Date:
Revised 01/12/01