HomeMy WebLinkAboutReso 91-004 - Approve purchase & sale agreement between PG&E Co & COR covering Electric Dist Facilities of PG&E within the Unincorporated area known as Old Alturas Rd Annexation No 89-1 & 89-7 i
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING PURCHASE AND SALE AGREEMENT BETWEEN PACIFIC GAS AND
ELECTRIC COMPANY AND THE CITY OF REDDING COVERING THE ELECTRIC
DISTRIBUTION FACILITIES OF PACIFIC GAS AND ELECTRIC COMPANY
WITHIN THE UNINCORPORATED AREA KNOWN AS "OLD ALTURAS ROAD,
ANNEXATION NOS. 89-1 AND 89-7 , " AND AUTHORIZING THE MAYOR TO
SIGN ALL NECESSARY DOCUMENTATION.
WHEREAS, by Resolution No. 89-453 , the City of Redding annexed
the unincorporated area known as the "Old Alturas Road, Annexation
No. 89-1" ; and
WHEREAS, by Resolution No. 89-451 , the City of Redding annexed
the unincorporated area known as the "Old Alturas Road, Annexation
No. 89-7" ; and
WHEREAS, said annexations were certified by the Executive
Officer of the Shasta County Local Agency Formation Commission on
December 18, 1989 ; and
WHEREAS, Pacific Gas and Electric Company (PGandE) serves
electricity to 45 domestic and four commercial customers within the
annexed areas; and
WHEREAS, PGandE is willing to sell its electric distribution
facilities within the annexed areas to the City of Redding;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1. That the City Council of the City of Redding hereby
approves Purchase and Sale Agreement for "Old Alturas Road,
Annexation Nos. 89-1 and 89-7" between PGandE and the City of
Redding, a true copy of which is attached hereto and incorporated
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herein by reference, on the terms and conditions set forth therein.
2. That the Mayor of the City of Redding is hereby authorized
and directed to sign said Purchase and Sale Agreement for "Old
Alturas Road, Annexation Nos. 89-1 and 89-7" and all necessary
documentation in connection therewith on behalf of the City of
Redding, and the City Clerk is hereby authorized and directed to
attest the signature of the Mayor and to impress the official seal
of the City of Redding on the aforesaid documents, when
appropriate.
I HEREBY CERTIFY that the foregoing Resolution was introduced
and read at a regular meeting of the City Council of the City of
Redding on the 2nd day of January , 1991 , and was duly adopted at
said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Dahl , Fulton, Moss & Buffum
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
AN j�' UFFUM, Mayor
Cit of Redding
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ATTEST:
ETHER A. NHO City Clerk
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FORM
PROVED•
R DALL A. HAYS, City Attorney
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Pacific Gas and Electric C016, i
Purchase and Sale Agreement COPIES:
❑ Buyer
❑ Region
❑ Marketing Services-RJR
REFERENCE:
GM NO.4817524
CDA NO. 12932
THIS AGREEMENT is made between PACIFIC GAS AND ELECTRIC
COMPANY, a California corporation (PG&E), and CITY OF REDDING, a California
municipal corporation, Shasta County, California (City);
RECITALS:
City, by Resolution Nos. 89-453 and 89-451, annexed an unincorporated area
known as "Old Alturas Road, Annexation Nos. 89-1 and 89-7, respectively. The annexation
was certified on December 18, 1989, by the Executive Officer of the Shasta County Local
Agency Formation Commission;
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PG&E serves electricity to 45 domestic and 4 commercial customers within the
annexed area;
PG&E is willing to sell its electric distribution facilities within the annexed
area to City;
NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
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1. PG&E shall sell to City and City shall purchase from PG&E, PG&E's electric
distribution facilities (Facilities), located in the annexed area. The location of the
Facilities are shown on the map attached hereto and made a para hereof as Exhibit
"A". In addition, the Facilities are further described on the List of Materials marked
Exhibit"B", attached hereto and made a part hereof.
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2. The Facilities are to be sold as is. PG&E does not warrant the condition of the
Facilities. PG&E also does not warrant that adequate land rights cover all of the
Facilities. In the absence of such land rights, City shall assume any and all liability in
connection therewith.'PG&E shall assign, in whole or in part, private grants of rights
of way and easements for the Facilities concurrently with the delivery of the Bill of
Sale deeds for the Facilities described in Sections 5 and 6 hereof.
3. City shall pay to PG&E as the purchase price for the inventoried Facilities, as of
September 21, 1990, the sum of$114,885 (excluding any sales tax legally due)which is
the value of the Facilities, including 15 percent for value as a going concern. In
addition, City shall pay to PG&E its severance costs of $4,804, including
Contributions-In-Aid-of-Construction (CIRC) tax, for a total amount of $119,689.
Further, City shall pay to PG&E (1) the net value, as determined in accordance with
PG&E's standard accounting practice, of any additions to and retirements from the
Facilities that may be made by PG&E subsequent to September 21, 1990, and prior to
the conveyance of the Facilities to City, and (2) 15 percent of such net value, and (3)
any severance costs that may be involved because of the installation of said additions
and retirements from the Facilities. PG&E shall deliver to City the Bill of Sale
provided for in Sections 5 and 6 concurrently with the payment by City of the purchase
price.
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4. The current ad valorem taxes for the tax year in which the Facilities and any additions
and betterments are conveyed shall be prorated as of the date of conveyance. City
shall pay to PG&E on demand such part thereof as is attributable to the portion of the
l tax year from and after delivery of the deed of conveyance hereunder. PG&E shall
supply City with a retention of the tax bill received from the County of
Shastan n
and any supporting documentation supplied by the State Board of
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Equalization.
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5. PG&E shall execute and deliver to City a Bill of Sale (a copy of which is attached as
Exhibit "C") conveying Facilities to City within the time set by order of the California
Public Utilities Commission(Commission), authorizing this agreement.
i 6. The facilities sold are presently subject to the lien of PG&E's First and Refunding
Mortgage Indenture. Within a reasonable time following execution of this agreement
and bill of sale, PG&E shall obtain the removal of this encumbrance from the trustee
of the indenture.
7. Upon execution and delivery by PG&E of the Bill of Sale, City shall assume all public
utility obligations of PG&E to provide electric service to the 49 customers in the area
i now supplied from the Facilities and any other customers added by PG&E prior to the
delivery of the Bill of Sale.
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8. City acknowledges that some of the Facilities sold under this agreement may contain
polychlorinated biphenyls (PCBs), a hazardous material. City warrants that any and
all of such Facilities that may contain PCBs are being purchased for its own use, and
not for resale. City warrants that, in the event that it ever sells such Facilities, it will
disclose, in writing, to all potential buyers, that such Facilities may contain PCBs. City
a shall obtain and comply with all permits necessary for the purchase, transportation,
use, handling, treatment, storage and/or disposal of the Facilities, whether as a result
of the PCB content or otherwise. City shall comply with all applicable federal, state
1 and local laws, standards, rules and ordinances, including, but not limited to: 15 USC,
Section 2601 et sea.; the Code of Federal Regulations, Title 40 Paragraph 761 et seq.;
the California Health and Safety Code, Section 25100 gt sM. and the California
Administration Code Title 22, Section 66100 gi jM Buyer is aware that
Environmental Protection Agency or other public agency regulation may require the
removal, replacement and/or relocation of this equipment at certain times.
9. From the date of conveyance forward, City shall assume all responsibilities of the
Facilities and City shall indemnify PG&E, its officers, agents and employees, against
loss, damage, expense and liability resulting from injury to or death of person,
including, but not limited to, employees of PG&E or City, or injury to property,
including, but not limited to, property of PG&E or City, arising out of or in any way
connected with City's ownership, operation and maintenance of the Facilities,
excepting only such injury or death as may be caused by the sole negligence or willful
misconduct of PG&E, its officers, agents or employees. City shall pay costs that may
be incurred by PG&E in enforcing this indemnity provision, including reasonable
attorney's fees. City.further agrees that any loss, damage, expense and liability that
arises out of or is in any way connected with the Facilities that may contain PCBs will
be assumed by the City from date of conveyance forward and is expressly within scope
of this indemnity.
10. Any action by City arising out of or in any way connected with the sale contemplated
by this agreement,whether sounding in tort, contract,strict liability or otherwise, must
i be commenced within two years after the cause of action therefore has accrued.
11. This writing is intended by the parties hereto as the final and complete expression of
their agreement concerning the sale of the Facilities described herein and there are
no warranties, terms or conditions not otherwise stated herein.
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12. No agent, employee or representative of PG&E has any authority to bind PG&E to
any affirmation, representation or warranty concerning the Facilities sold under this
agreement, and unless an affirmation, representation or warranty made by an agent,
employee or representative is specifically included within this agreement, it has not
formed a part of the basis of this bargain and shall not in any way be binding on
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PG&E or otherwise enforceable.
13. This agreement can be modified only by a writing signed by both parties.
14. This agreement and interpretation of the terms hereof shall be governed in all
respects by the laws of State of California.
15. For and in consideration of the receipt of the Facilities, City hereby releases and
J forever discharges PG&E, of and from any and all claims, demands, actions or causes
of actions, known or unknown, including all injuries, deaths and property damage
arising out of or in any way connected with the hazardous properties of the PCBs
which may be contained in the Facilities that occur after the date of conveyance of the
Facilities.
16. This agreement shall not become effective until the Commission shall, by its order,
authorize PG&E to carry out its terms and conditions.
Dated: ' 1990.
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ACCEPTANCE:
CITY OF REDDING PACIFIC GAS &ELECTRIC COMPANY
BY: BY:
Sr. V /and General Manager
TITLE: Distribution Business Unit
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AND BY: `-
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ATTEST: An- i a tart //Secretary
City Clerk APPROVED:
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MANAGER, MARKETING SERVICES DEPT.
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! EXHIBIT"C"
GM/WO NO.
CDA NO.
!
CPUC DECISION NO.
1 BILL OF SALE
{
,
I
PACIFIC GAS AND ELECTRIC COMPANY, a California corporation
(PG&E), in consideration of the sum of (severance costs and a value for going
concern is included), does hereby sell,grant and convey, as is, to the CITY OF
a California municipal corporation, County,
California(City), its successors and assigns, all of PG&E's right, title and interest in and to
certain electric distribution facilities (Facilities), located within annexation area known as
Annexation No. , in the location(s) shown on the
sketch attache hereto marked Exhibit"A"and as more in
described on the
attached List of Materials marked Exhibit"B". The Facilities are used to serve
approximately electric customers within the City's corporate limits.
1 This Bill of Sale is executed pursuant to authorization contained in the order
of the California Public Utilities Commission in its Decision No. dated
, and is subject to all the terms�onditions of the
Purchase an Sae Agreement between City and PG&E dated , 19—.
This Bill of Sale does not cover additions or betterments, if any, made to
Facilities by PG&E after , and is limited to the Facilities
described in Exhibits"A" an "B". AdJitions-a--ndbetterments, if any,will be covered by a
supplemental bill of sale to be delivered to City concurrently with the payment by City to
PG&E of the price thereof.
Dated: , 1990.
ACCEPTANCE:
PACIFIC GAS& ELECTRIC COMPANY
!
BY: BY:
Vice President, General Services
� TITLE:
AND BY:
ATTEST: Secretary
City Clerk
l