HomeMy WebLinkAboutReso 91-154 - Approve purchase & sale agreement No. CDA 12936 between PG&E CO & COR covering Electric Dist Facilities of PG&E Co - airstip Rd Area Annexation No 89-9 RESOLUTION NO. -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING PURCHASE AND SALE AGREEMENT NO. CDA 12936 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
"AIRSTRIP ROAD AREA ANNEXATION NO. 89-9," AND AUTHORIZING
THE MAYOR TO SIGN ALL NECESSARY DOCUMENTATION.
WHEREAS, on December 5, 1989, by Resolution No. 89-450, the
City of Redding completed the process of annexing the unincorpo-
rated area known as "Airstrip Road Area Annexation No. 89-9" ; and
WHEREAS, said annexation was certified by the Executive
Officer of the Shasta County Local Agency Formation Commission on
December 18 , 1989; and
WHEREAS, Pacific Gas and Electric (PGandE) serves
electricity to 5 domestic and 10 commercial customers within the
annexed area; and
WHEREAS, PGandE is willing to sell its electric distribution
facilities within the annexed area to the City of Redding;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
i the City of Redding as follows:
1. That the City Council of the City of Redding hereby
approves, Purchase and Sale Agreement No. CDA 12936 between PGandE
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and the City of Redding, a true copy of which is attached hereto
and incorporated 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
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and all necessary documentation in connection therewith on behalf > j
of the City of Redding, and the City Clerk is hereby authorized
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and directed to attest the signature of the Mayor and to impress
the official seal of the City of Redding thereto.
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 16th day of April , 1991 , and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Arness, Dahl, Fulton, Moss and Buffum
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
f�
N CYFUM, M or
City Redding
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ATTEST:
ETHEL A. NICHOLS, City Clerk
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FORM PROVED:
� Q
I
R DALL A. HAYS, C ty Attorney
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Pacific Gas and Electric Comp
Purchase and Sale Agreement COPIES:
❑ Buyer
❑ Region
❑ Service Planning-RPJ
REFERENCE:
GM/WO NO.4817649
CDA NO. 12936
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 No. 89-450, annexed an unincorporated area known as
"Airstrip Road Area, Annexation No. 89-9". The annexation was certified on December 18,
1989, by the Executive Officer of the Shasta County Local Agency Formation Commission;
PG&E serves electricity to 5 domestic and 10 commercial customers within the
annexed area;
PG&E is willing to sell its electric distribution facilities within the annexed
area to City;
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NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
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 part 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.
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.
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3. City shall pay to PG&E as the purchase price for the inventoried Facilities, as of
October 29, 1990, the sum of$55,340 (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 $3,509, including Contributions-In-Aid-
of-Construction (CIRC) tax, for a total amount of $58,849. 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 October 29, 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.
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
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
Shasta and any supporting documentation supplied by the State Board of
Equalization.
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.
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 15 customers in the area
now supplied from the Facilities and any other customers added by PG&E prior to the
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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
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
and local laws, standards, rules and ordinances, including, but not limited to: 15 USC,
Section 2601 gt sM; the Code of Federal Regulations, Title 40 Paragraph 761 et aeq-..;
the California Health and Safety Code, Section 25100 et sec and the California
Administration Code Title 22, Section 66100 gi sect.. 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
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
PG&E or otherwise enforceable.
13. This agreement can be modified only in 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
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.
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Dated: 11990.
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ACCEPTANCE:
CITY OF REDDING PACIFIC GAS & EL CTRIC COMPANY
j BY: BY:
- Vice President, Ge ral Services
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TITLE:
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AND BY:
ATTEST: A i s tangy ecretary
APPROVED:
City Clerk
M Manager,Service Planning Department
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EXHIBIT"C"
GM/WO NO.
CDA NO.
CPUC DECISION NO.
BILL OF SALE
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 an 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 attached ereto marked Exhibit "A" and as more particularly 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.
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 and conditions of the
Purchase an Sae Agreement etween 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". Additions and betterments, 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: 11990.
ACCEPTANCE:
j PACIFIC GAS & ELECTRIC COMPANY
i
BY: BY:
Vice President, General Services
TITLE:
AND BY:
ATTEST: Secretary
City Clerk
I