HomeMy WebLinkAboutReso. 1979-040 Approving Certain Agreements Concerning the Acquisition by City of Pacific Gas and Electric Company's Electric Facilities in the Enterprise Annexation Area; Authorizing the Mayor and City Manager to Execute said Agreements on Behalf of City • . .
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RESOLUTION NO. 79 -�f0
A RF:SOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING CERTAIN AGREEMENTS CONCERNING THE ACQUISITION
BY CITY OF PACIFIC GAS AND ELECTRIC COMPANY ' S ELECTRIC
FACILITIES IN THE ENTERPRISE ANNEXATION AREA, AND
AUTHORIZING THE MAYOR AND THE CITY 6IANAGER TO EXECUTE
SAID AGREEMENTS ON BEHALF OF THE CITY.
WHEREAS, Pacific Gas and Electric Company has submitted
for approval a Purchase and Sale Agreement covering the transfer
of its electric facilities in the Enterprise Annexation area to the
City of Redding, a copy of which is attached hereto as "Exhibit A" ,
and
WHEREAS, P.G. & E. has also submitted a supplemental
letter agreement dated February 2 , 1979 , concerning the purchase
and sale of said electric facilities, a copy of which is attached
hereto as "Exhibit B" , and
WHEREAS, P.G. & E. has requested certain assurances reqard-
ing the source of funding for the acquisition by City of said
electric facilities , which assurances are contained in a letter
dated February 13, 1979, which is attached hereto as "Exhibit C" , and
wHEREAS, the City Council deems it to be in the best
interests of the City and its citizens that said agreements and
assurances be approved in the forms attached, so that the City ' s
acquisition of said electric facilities may be finalized, and
WHEREAS, it has been determined that this matter is
categorically exempt from the provisions of CEQA,
NOW, THEREFORE, BE IT RESOLVED by the City Council of
t
the City of Redding as follows : ''�
1. The Purchase and Sale Agreement between the City �
��
I
of Redding and the Pacific Gas and Electric Company covering '`�
c�
. . -i- .
. . . � �
the transfer of electric facilities in the Enterprise Annexation
area, which is attached hereto as "Exhibit A" , is hereby approved ,
and the Mayor is authorized to execute same on behalf of the City .
2 . , The supplemental letter agreement dated February 2 ,
1979 , concerning the transfer of said electric facilities , which
is attached hereto as "Exhibit B" , is also approved, and the City
Manager is authorized to execute the City ' s acceptance of same.
3. The letter dated February 13 , 1979 , from the City
to P.G. & E. , containing assurances regarding the funding for said
acquisition, which is attached hereto as "Exhibit C" , is also
approved, and the City Manager is hereby authorized to execute
same.
I HEREBY CERTIFY that the foregoing Resolution was intro-
duced and read at an adjourned regular meeting of the City Council
of the City of Redding on the 15th day of February , 1979 , and
was duly adopted at said meeting by the following vote :
AYES : COUtvC2Lt�tEr1: Fulton, Gard, Kirkpatrick, Pugh, and Demsher
NOES : COUNCILMEN: None
ABSENT: COUNCILMEN: NOn2
�. �-9_ --���.1--_�
ATTEST: ALD M. DEMSHER
/�Zc.���:�2`� Mayor of the City of Redding
.� �'r���-�i 1<��,
'MILDRED L. BRAYTON, City Clerk
' by Et/he,l A. Richter, Deputy
F 4`�PPROVFyD: �_ , '
: . _
C�t i� ✓
EARL D. MURPHY, 'City tt ney
I j �
-2�
. � . - • - -- - i
snasta GPI 189347
THIS AGREEi9EilT is made bet�,�een PACIFIC GAS APlD ELECTRIC C0�•1PANY, a
California corporation (PGandE) , and CITY Of REDDI�JG, a California municipal
corporation, Shasta_County, California (City) , collectively (Parties) .
P,EC?��.LS-
�: �f> OTl i'�OV2?7D2!' G� ,:/O� anne;<ed ?!1 unincorporat2(} dt'�d are��iiously
known as the Enterprise Public Utility �istrict. City has also annexed a num-
ber of smaller areas generally adjacent to the Enterprise area. These annexa-
tions were certified by the Secretary of 5tate of the State of California.
PGandE owns and operates electric distribution facilities which gener-
ally serve electricity to approximatel� 5,300 customers witnin the annexed
areas. PGandE also ouns and operates certain electric transmission and substa-
tion facilities within the annexed and other areas of City_ City has tne power
of eminent domain to acquire, by court action, tnese electric distribution,
transmission and substation facilities from PGandE/ In orCer to avoid a condzm-
nation suit and to compromise possible litigationl� PGandE is willing to se71 its
electric distribution, transmission, substation, and street lighting facilities
(faciliti2s) to City wi [hin the annexed and other areas of City under the te rtr,s
and conditions herein szt forth.
N04J, THEREfORE, IT IS h1UTU?,LIY AGREED AS FOLLOtJS:
1 . PGandE shall sell to City and City shall purcnase from PGand�,
the Facilities, property and property rights generally described as Pollows =
EXHIBIT A '
l :
,�,� .. . . ,., . - �- � --- . ., .�.��_:_....� -
' : . � a: The el�-ic distribution facilities i�e Enterprise area and
in the adjacent annexed areas as they existed on October 4, 1977,
the date of PGandE 's inventory, exclusive of certain electric
distribution facilities which will b2 either retained or rebuilt
by PGandE for joint ownzrship by City and PGandE (and the
telephone company, where existing jointly ewned facilities are
irvolv�� _� enahle "rSand_ :o serve its customers ou�;tde o` the
d!ii12X27 ?T235,. S =3i.i i:C117�7?S 2f2 S�IOh?I 0!1 ui2 i��20 3i.i.dCflc�
and made a part hereof as Exhibit "A".
b. The assignment in whole or in part of all private grants of
rights-of-way and easements for the electric distribution
facilities described in paragraph la above.
c . ?GandE 's existing Churn Creek Substation with all existing elzc-
tric apparatus, equipment and transformation facilities to9ether
with real property {0.818 acre) for such substation. A right-
of-way and easement for the us2, operation and maintenance of a
gas regulator station and apourtenances approximate}y 16 feet
41 feet at northwest corner of the substation real property shall
be reserved by PGandE.
d. That portion of PGandE 's existing (1) Kilarc-Redding 60 kv line
extending from PGandE's Redding Substation easterly approximately
3 miles to tne existing easterly city limits of City; and (�
that portion of PGandE 's existing Redding-I<2swick 60 kv lir.z
extending from Redding Substation westerly approximately b.25
miles to the intersection thereof with PGandE's existing
Sillwater-!Ceswick and Redding-!Ceswick 60 kv lines .
2:
--
..._� , .. .. . . - -- - _ »:-�., ,----,T
.�. _... .. : . . � . . .. . . _ � �=_ .--'-- = . � .. __. .
. ' e. The ass��ent in whole or in part of al �ivate grants of
"rights-ot-Nay and easements for the electric transmission
facilities descri�ed in paragraph ld above.
f. PGandE's Redding Substation real property (0.203 acre) , exclu-
sive of thz existing 60 kv facilities within the real property
which �aill bz removed by PGandE prior to conveyance to City.
Th� loca_ion of the Facilities is generally sho��n cn =xhibit "A".
r:_,
L. �.� _j SB�: i 'a�4 =� -.w:1CC d� :i0 pur.���s_ rrica ��ar =:a
Fzcilities and the cost of s2parating them from PGandE 's system, the sun of
$7,500,000 which, for the convenience of the Parties, shall be paid as follows :
a. An "initial " payment of $6,600,000 shall 6e paid by City to PGandc
within 1�0 calen��- d��; aiter the effective date of a written
order issued by the California Public Utilities Corrnission' s
(Cormission} authorizing tnz Parti2s io carry out the terms and
conditions of this agreement , as provided in paragraph l .
PGandE shall deliver to City the deed or deeds vesting ownzr-
ship in City to the facilities descri�2d in paragraph la and th2
assignment of land rights described in paragraph lb concurrerttly
with delivery by City to PGandE of said initial payment .
b. A "subsequent payment" of $1 ,000,000 shall be paid by City to
PGandE within 10 calendar days after eitner (i } the da�e that
PGandc is requested in writing to discontinue transmission
service delivzries at 12,000 volts for the United States
Department of En2rgy (�OE) to City at PGandE's Churn Creek Substa-
tion, as providzd in paragraph 7, or (2) three y2ars from and
after the date of cor,unencement of such transmission service,
3:
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. . _ . . ' . . . . . . .. .. .. . . .. .. . . .. ..lF'<�
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whichev�vent (1) or (2) first occurs. �andE siall deliver
to City the deed or deeds vesting ownership in city to tt;e
fecilities and real property described in paragraphs lc, ld and
lf and the assignment of land rights described in paragraph le
concurrently with delivery by City to PGandE of tne subsequznt
payment.
3. PGandE shall sell Lo City and City shall purchase from PGandE any
_�ditions *_o :hz =a�i' i=`_s -`,e= r2y `_ ,,zce �y °Gand� s;.�bse�ue�� :o Cc_eher
», iS77. Within i80 days ai�er the: e�fectiv> date or' the Corr�mission 's
written authorization of this agreement, City shall also pay to PGandE ("further
payment" ) the s�m of the following: (a) the net value, as determined in
accordance xith PGandE's standard accounting practice, of any additions to and
retirements from the Facilities that may be mad2 by PGandE subseGuent to
October 4, 1971 and prior to the conveyance of the Facilities to City, (b) 15p
of such rtet value, and (c} any severance costs that may he involv2d because of
the installation of such additions Lo and retirements frcm the Facilities.
There shall be added to or subtracted from the further payment the net of the
additional amounts eithzr due to or payablz by City as described in paragraph 4.
AGandE shall deliver to City the deed or deeds for such additions concurrently
with delivery by City to PGandE of said further payment.
4. Within 90 days after the effective date of the Commission' s
�ritten authorization o` this agreement, Cit� shall notify PGandE in writirg
of the City' s final plans for providing service in the pockets, islands and
peninsulas of unincorporated areas within or contiguous to the Enterprise and
adjoining areas wnich City has annexed and which have heen certified by tne
Secretary of State of the State of California subsequent to the date of this
4:
-- -- --- — -- .�. _. _
� . . " ' ' ' � � f a ..' '
' _ . . . , . .. y "
—� ._ .. .. . . . . . . . � - . . - - � . � . . . . ��.. ... .ras .ti.�.:r.
�M , agreement. •The purct�, s2verance and rearrangement�ts to implement any _
, further annezations are neiihzr included in the purchase price provided in
this Agreement nor shoNn on Exhibit "A. " Within b0 days after receipt of such
Nritten notice, PGandE shall calculate the additional amounts either due to
Ci`y or payable by City for (a) any additional severance or rearrangement work,
(6) the elimination of any severance or rearrangement work mad2 unnecessary
because of annexatian by �:ty of said pockets, islands ard penins��'as (c) the
c��i=ivnd� �urc�as.e. priC� •��' �':c^G_�5 aiar_^:C GiSL�i^L':1Cn idCili�i?i i� Shcd
annexed. pockets, islands and peninsulas, determined in the same manner as for
the additions to the Facilities as provided in paragraph 3.
, 5. Upon delivery by PGandE of the deed or deeds for the facilities
- described in paragraph la, City shall assume all public utility obligations of
PGandE to provide electric services to approximately 5,300 customers in the
ar2a now supplied fran such facilities, and any other custemers add2d by
PGandE prior to the delivery of such deed or deeds. City shall hold harmless
, and indemnify PGandE fran any and all liability arising from any failure' of
City to perform the utility obligations to such customers.
6. PGandE agrees to perform the necessary distribution severance and
rearrangement work on the distribution facilities in the annexed and adjacent
areas as shown on Exhibit "A" in such manner (a) as will pernit the maximum
nw�ber of electric customers in the annexzd areas to be served by City by
August 1 , 1979, and (b) as is consistent with good utility enyin2ering and
operating practice and which takes into account maximum circuit and transfo mer
loading capabilities.
5:
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,=.`5 � � 7. CorrcnenciT! with the first regular monthl�illing period
following recei.pt by PGandE o� a uritten request from COE and subsequent to
the effective date of in2 Corrm�ssion` s written autnorization of this agreement,
PGande" shall , provide temporary transmission service of C�:P power at 12,0�0
volts to City for DOE at PGandE's Churn Cre2k Substation ror a maximum period
of three years, f r�m-the -date such service is commenced, in accordance �.�itn
and suoject to Con�rac� :'lo. .--�.c_2rp-2o'3:, ber,�een �J� 3nd P��anc�, �xceot
:';e= _:�2 RI1f17rtItJlti �iilO�LhIJ �-ansz;�s>ion c`;ar;2 snall ^OT �? �eSS :tldll �1 ,Q�Q.
8. City shall open an escrow with a title company of its choice to
complete transfer of title solely to the real prooerty referred to in paragraphs
lc and lf. PGandE at its expense, shall procure and affix to the approPriate
instrument of conveyance any stamps representing stamp taxes imposed upon the
sale. The current ad valorem taxes for the tax year in wnich the Facilities
and any additions are conveyed to City shall b2 prorated as of the date of
' , conveyancev City shall acquire at its expense a policy of title insurance by
a title company of its choice for the real property referred to in paragrapns
lc and lf. The escrow holder, at the direction of City and prior to tne date o`
sale of real property to City, shall provide PGandE with a copy of a preliminary
title report regarding the real property referred to in paragraphs lc and lr.
Escrow charges, if any, shall he paid by City. Escrow instructions, as mutually
agreed to by City and PGandE, shall incorporate the terms of this ayreement and
shall in no way modify or suo2rsede this agreement. Such escrow instruc�ions
shall provide for delivery by PGandE of i �s grant dzed(s} conveying "marketable
title" to City concurrently �,aith the delivery by City of tne "subseyuent pay-
ment" as provided in para9raph 2b. �
G:
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� 9. Representatives of City and PGandF shall read all electric
meters as of the date(s) of sale of the distribution facilitizs described in
paragraphs la, and PGandE shall render closing bilis to its customer for the
period prior to the date(s) of sale.
10. This agreement shall not becom2 effective until the Comnission
shall , by its order, a�thorize PGandE to carry out thz ter�s a^d conditions of
_-is -cnr,2fii..
Dated: , 1979. .
PACIFIC GAS Afl� ELECTRIC C0�1P�1NY,
gY
I�s Executive Vice Presidznt
And By
S"ecretary
ATTEST: CITY OF ?.EDDI�G,
sy
(.ity er hiayor
7 : _
APPROXIMATE BOUNDARY OF ENTERPRISE :
ANNEXATION AREA � � � � � OCTOBER, 1977
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EXHIBIT A
SHEET I OF 4
+��.^r
'. � . , , ' _ _ ' _ _ __ - - .- ---
� . � REAL PROPERTY OF
. PACIFI GAS AI`7D ELECTRIC CO�PANY
' IN THE SY14 OF Nl�.'y OF SECTIO;I 5 T. 31 T!. R. 4 W. M. D. M. �
SHASTA COUNTY ' � .
CHURN CREEK SUBSTATION
- 2431-04-0976 .
� � Sold to County of 5hasta
�� � \ 10-23-73 f:ec. 1-78-74 .
� Bk. 1206 O.R. 'Pg. 80
I .,p' 0.132 .Ac. �
� • Reserving rights of way for existin
o ;!1 `'� electric transnission l.ines and
� � i � \ Communication purposes
� � 1 to 2 t�. 0°26'c. 24.7 '
� 2 to 3. N.88°14-i/2 'E. 193.8 '
� P ��e •1Q' � \ 3 to 4 S. 7°16-1/2' E. 33.0'
� � �r�� 55Q°�ti;'e.-i'?.o' .+� ' 4 to 1 N.89°28-1/2'bl.203 .0'
v �, -..
3 O . .
�
� o .
,�; $. 562-/70 \
W Sefh !,? Br�rrn ef ux �5� ��
o �.
� 9-20 SO r'j.C. f0-6-5�J S.x_c\ �+
. +° � lio% .337 C?R..P9 09 "`" `^ . �` \�o
C z 0.9�Acre � � � A -
� - Abs.2712 � �\ �;. 'ti
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i`%�� � IZ55 SACRA.v=fvi0 SfR?_7 • BOX 18?7 • R�OOI�QCA!IFOH�YIA 9j00! >
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February 2, 1479
"'r'. '�Ifl] iam 3ric�,+rcd.
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C:yo ur Receing
��0 %arXveik ,�venue
Redding, Ca. 90007
Gear Mr. Bricicwood: -
Ti�is iatter s�i11 confi m the understanding reached during our recent discussions
with your staff regarding the comr,encement of field ;-;ork by PacTfic Gas and
Electric Company (PGand�} for the future trans�er o` o��nership to tne City o` .
Redding (City) of the elect�ic distribution `acilities (Facilities) withirt the
Enta,*�rfsz and adjacent areas of City. These facilities are proposed to be sold
to City under a Purchasa and Sale Agr=�ment bet�deen City and ?Gand: (Agre=rrent)
to b� sntered into concurrently witn City's acc2ptance of tnis agresment_ Inis
let�er also sets forth the nanner in wnich PCanG� shall perforn the necessary
sev=rance and rearrangement �rork as provided in paragrapn 6 of the Agre�Tent.
Aut;iorizat?on by the Calirornia Public Jtilittes Cortmission (C?UC) will be re-
Guired berore title and possession of the Facilities can be �elivered to th� City.
PGand�'s application for such authorization is currently being prepared. Addition-
ally, considerable p'nysicai work in the field will be necessary to enable Cit� to
inittaliy recerve service at 12 kv from PGandE' s Chu rn Creek Substatior, and sub-
sequeniiy to integrate the Facili �i=s into City's own s�sLem artd further to e�able
PGandE to continue to serve its customers adjacznt to the Enterprise area_
In order to accomoodate City's desire to expedite the transfer of own�rship and
pending issuance of CPUC authorizei.ion, PGand� agrees to corrrenc� the field work
(Wor�) , shown on the attacned s<etcn and made a ?art her�f previded that Ci �y
shall agr�e to pay PGandc in adyance the sum of $SOp,OCO.
If AGand: anticipates t�at the y500,000 payment will 6= exhau;�ed in th= per-
forrance of �Aork prior to CPUC authorization o` `he Agreement, PGand� �,�iil ro�i �y
City o� :nat Tact and of tne additicnal payment reGuired to cempiet� tne wor:<.
Ir `{;e addiiienal �ayment is not received by PGande. witnin 15 days, PGand"c s4a11
stop �,aorti. Ir payment is thereafter received by PGandE, tne work wiTl 6e resured
witnin b0 days of receipt of such additional payrr,eni. - _
EYHIBIT S
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february 2, 1979 -
,� Page` �au � - - •
For tne purpose of this agreerrent, the Work shall be considered compieted. when
PGand� noti`ies City of tnat fact in writing. Upon autnor7zation by the CPUC
of ihe Agre_wnent, $500,000 plus any additional payment arount advanced to PGandc
by City shall be credited to tne total purcnase price of $7,600,GG0. If the
C?UC fails to autn�rize th= Agreement tnen PGand: shall retain that portfion of tne
�5Q0,000 plus any additional payrrent amount advanced to PGandE by City for wor!c
co����leted by PGand= and �he 5alance, if any, will bs re:'urded �o City_
•?'S' '�'?,'iC�?.+'�!1�S �:'� __.,�_._-�C� � _=Gl 2Ui,:?0�1?3i.70f1 �'�/ ?,^2 i.'r''�.:C ,.: ::12 r-5t'8?T211t
'rl i�?'D 0712 �/?31' 07 i..i? �id:� L:�� 'r'.jTd�'f.'B!1� 7 5 T 7�8� Al7 L[i T.�7? C'.��.�C.
TR �:ra ?V�llt �`.�idt `?7? .r.i�JC� CCi?5 !lOL ?J��`.1CT'i=2 L+i? nGTE?R`211t'',. Cli,'J 5(731T T'�7:TOU7"S?
PGancE `or aiT costs incurred by it in per`o ning ;Jork and in addition , sucn a��nunts
as shall be necessary to conpensate PGandE for restoration of its faciltties to .
thetr condition prior to commencement of any Work.
I` these arrangements are satis`acto r,� to Cit�, please indicate the City's
acceptance in the space provided beloW and return to ne two of t^e du�li�ate
copi�s of this letter, two copies of the Agreement signed .by the City togeth=r '
wit4 a copy of the City's resolu�ion authorizing it; execution and your cneck for
$500,000. On rnc2ipt thereof, we •�i17 schedule 'the co�renc2ment of the '�ork in .
comoliance with the provisions o� paragraph 6 of tne Agreerr.ent.
A ful ',y executed cooy of tne ?greement will bz furnisned to you af�er 1� has been
signed 6y PGandE managerrent.
Sincer�ly,
�i��-�
S. F. Svensson
ACCE°TED: , 1979
CITY OF R��DI�IG .
By
Ti�l e
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� ��FO R• � C A L I F O R N I A 4Yi1_I.I.4N 9RICFN'OOD
Mva�.oat
[I TY >AiN,1GER
February 13 , 1979
_�?r . Stua=� = . �v=::ss�,
__scric`_ .•[a-ac�= .
- =---'-c Gas =_-= Ei=_c-='-= -_-�z.-.;
_L7J j�cC:3:�lc"'ZLO Jt�Z2L ' _
��dding , Calitornia 9'0001
Re : Purcnasz by City of Redding of
P .G. & E. electric facilities _
Dear Mr. Svensson :
This is to advise you that the City of Redding has
suEficient funds to nay P. G. & E. the entire agreed upon $7 . 0
million purchase price for electric `acilities in thz Enterprise
ar=a. Sai� iunds consis't oi $5 million in general obliyation
bonds , authorized put unsold, and $2 . 6 nillion located within
. - L^ODligat�C�{ ill^�S 1't '�[ia Electric D20dZt.i:l2C1� }]��dget dRC� 1R t�'12
General Fund of th� City .
The City oE Redding will incur no indebtedness or
liability in any mann�r or for any nurpose , which would remove
from these stated sums any amounts wnich orould leave iasu=ficient
funds to pay P.G. & E . tne entire amou.t ow2d to it by the City
of Redding, as such amounts become due in relation to this
purchase and sale.
Very truly yours ,
L�. Bric'.cwood
City i�tanager
i�iB/ah
EXHIBIT C
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