HomeMy WebLinkAboutReso. 1988-439 - Approving the purchase and sale agreement, cda no. 12820, between pacific gas and electric company •
RESOLUTION NO. 88. 1/n
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE PURCHASE AND SALE AGREEMENT, CDA NO. 12820 ,
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 "LEMA ROAD AREA, ANNEXATION NO. 85-11 , "
AND AUTHORIZING THE MAYOR TO SIGN ALL NECESSARY
DOCUMENTATION.
WHEREAS , on January 6 , 1986 , by Resolution No. 86-9 , the
City of Redding annexed the unincorporated area known as the
"Lema Road Area, Annexation No. 85-11" ; and
WHEREAS , the Shasta County Board of Supervisors ordered the
reorganization on April 29 , 1986 , by Resolution No. 86-101 ; and
WHEREAS, said Annexation was approved by the Shasta County
Local Agency Formation Commission on May 7 , 1986 ; and
WHEREAS, Pacific Gas and Electric (PGandE) serves
electricity to 48 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. 12820 , 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
and directed to attest the signature of the Mayor and to impress
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the official seal of the City of Redding on the aforesaid
documents, when appropriate.
II 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 20th day of December, 1988 , and was
duly adopted at said meeting by the following vote :
AYES: COUNCIL MEMBERS: Buffum, Carter, Dahl , Fulton, & Johannessen
NOES: COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS : None
ABSTAIN: COUNCIL MEMBERS : None
r
K. MA RICE JOHANNESSEN, Mayor
City of Redding
ATTEST:
ETHEL A. NICHOLS, City Clerk
FO•u rPPROVED:
RA 'DALL A. HAYS, ity Attorney
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DISTRIBUTION REFERENCE
,/Buyer
Region CDA NO. 12820
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) .
RECITALS:
On April 29, 1986, the Shasta County Board of Supervisors, by Resolution
No. 86-101, and pursuant to Resolution No. 85-11, ordered the reorganization of
an unincorpor' ted area known as Lema Road to be incorporated into the City of
Redding. The annexation was certified by the Executive Office of the Shasta
County Local Agency Formation Commission on May 7, 1986.
PG&E serves electricity to 48 customers within the annexed area.
The City desires to extend its electrical distribution service
territory to include 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
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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.
3. City shall pay to PG&E as the purchase price for the inventoried
Facilities, as of June 27, 1988, the sum of $93,500 (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 $9,178, including Contribution-In-Aid-To-Construction (CIAC) tax, for
a total amount of $102,678. 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 June 27, 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
nay 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
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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 48 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,
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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 et IN; the Code of Federal Regulations,
Title 40 Paragraph 761 et sec ; the California Health and Safety Code, Section
25100 et seq and the California Administration Code Title 22, Section 66100 et
seq. 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.
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Ill 411
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.
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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.
CITY OF REDDING PACIFIC GAS AND ELECTRIC COMPANY
BY: BY: IrriA_____
ice President eneral Services
TITLE: AND BY:
4:17.171-a ec etary
ATTEST:
City Clerk
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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 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 attached hereto 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 and Sale Agreement between City and PG&E
dated
�i1 I
�I I
• 4 • •
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" and "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: , 1988.
CITY OF PACIFIC GAS AND ELECTRIC COMPANY
BY: BY:
Vice President General Services
TITLE: AND BY:
Secretary
ATTEST:
City Clerk
-2-