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HomeMy WebLinkAboutReso. 1988-406 - Approving the 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 RESOLUTION NO. J 8.ya„ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE 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 THE "DEBBIE LANE AREA, ANNEXATION NO. 86-12 , " AND AUTHORIZING THE MAYOR TO SIGN ALL NECESSARY DOCUMENTATION. WHEREAS, on May 5 , 1987 , by Resolution No. 87-138 , the City of Redding annexed the unincorporated area known as the "Debbie Lane Area, Annexation No. 86-12" ; and WHEREAS , said Annexation was approved by the Shasta County Local Agency Formation Commission on September 17 , 1987 , by Resolution No. 87-13 ; and WHEREAS, the Shasta County Board of Supervisors ordered the reorganization on December 1 , 1987 , by Resolution No. 87-296 ; and WHEREAS, PGandE serves electricity to 55 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 the City of Redding as follows : 1 . That the City Council of the City of Redding hereby approves the Purchase and Sale Agreement, CDA No. 12831 , between PGandE 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 and all necessary documentation in connection therewith on behalf of the City of Redding, and the City Clerk is hereby authorized ill 4 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 15th day of November , 1988 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Buffum, Carter, Fulton, & Johannessen NOES : COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: None f K. MAURICE JOHANNESSEN, Mayor City of Redding ATTEST: ,6•4.ea ETHEL A. NICHOLS , City Clerk FARM (00 ROVED: 7aelle4a,-11/42 RANDALL A. HAYS , Ciiir Attorney -2- I DISTRIBUTION REFERENCE Vuyer Region CDA NO. 12831 Marketing & Customer Services - KNA (2) PURCHASE AND SALE AGREEMENT 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) . Shasta County Local Agency Formation Commission approved by Resolution No. 87-13, dated September 17, 1987, the annexation of an unincorporated area known as "Debbie Lane, Annexation No. 86-12". The Shasta County Board of Supervisors ordered the reorganization by Resolution 87-296 on December 1, 1987. PG&E serves electricity to 55 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: 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: -1- • . • 410 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 July 13, 1988, the sum of $35,190 (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 $442, including Contribution-In-Aid-To-Construction (CIAC) tax, for a total amount of $35,632. 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 July 13, 1988, 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 afterdelivery of the deed of conveyance hereunder. PG&E shall supply City with a retention of the -2- S 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, 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 55 customers in the area now supplied from the Facilities and any other customers added by PG&E prior to the delivery of the_Bill of Sale. 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 -3- • • not limited to: 15 USC, Section 2601 et seq; the Code of Federal Regulations, Title 40 Paragraph 761 et seq; the California Health and Safety Code, Section 25100 et seq and the California Administration Code Title 22, Section 66100 et s�ce . 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 or 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. -4- 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. 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 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 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. -5- • 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: , 1988. r CITY OF REDDING ' 1 . PACIFIC GAS AND ELECTRIC COMPANY BY: :6Y: V ce President neral Services TITLE: AND BY: r •• tant Secretary ATTEST: - City Clerk -6- ;ic n. .40.,..--,...\,,, -..-7.7.7----ir-,-,---EZEIPial sz• -. -, & C} u•zc;---L------'tT EGU0N. 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