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sr-101309-1bCity Council Meeting: October 13, 2009 Agenda Item: ~ ~~ To: Mayor and City Council From: Lee E. Swain, Director of Public Works Subject: Rule 15 Agreement with Southern California Edison for Mountain View Mobile Home Park Project Recommended Action Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute a Rule 15 agreement with Southern California Edison for installation of the new underground electrical distribution system to service the Mountain View Mobile Home. Park. Executive Summary Installation of the new underground electrical distribution system to service the Mountain View Mobile Home Park is nearly complete. Pursuant to California Public Utilities Commission Tariff Rule 15, the City is required to execute an agreement with Southern California Edison (SCE) for the new underground electrical distribution system. Discussion The Mountain View Mobile Home Park utility and site improvement project is currently in the final stages of construction. Installation of the new underground electrical distribution system to the mobile home park is nearly complete. The remaining construction process for the new electrical distribution system involves energizing the individual services and meters for each individual mobile home unit. Pursuant to California Public Utilities Commission Tariff Rule 15, SCE requires that the City execute an agreement for the new underground electrical distribution system prior to system activation. 1 Financial Impacts & Budget Actions There are no future budgets or financial impacts associated with the recommended actions in this report. Prepared by: Allan Sheth, Civil Engineering Associate Lee E. Swain, Director Department of Public Works Attachment: Resolution 2 Approved: Forwarded to Council: CONTRACT POR EXTENSION OP ELECTRIC DISTRIBUTION LINE RULE 15 7. PARTIES This Contract for Extension of Elecfric Distribution Line ("Contract") is issued this 04 day of Jun~2009 The Parties to this Contract are: SANTA MONICA CITY OF("Applicanf") and Southern California Edison Company ("SCE"). Applicant and SCE are referred to individually as "Party" and collectively as "Parties". 2. RECITALS Applicant has requested SCE, pursuant to SCE's Rule 15, Distribution Line P~fensions, to install an electric Dlstdbution Line Extension to the location or locations described as follows: 1930 STEWART SANTA MONICA CA 96404 (Hereinafter referred to as "Project") 3. AGREEMENT 3.7 Responsibilities of Applicant Construction Applicant shall, in accordance with SCE's specifications and timing requirements for the Project: • Perform route clearing, tree trimming, trenching, excavating, and backfilling and compacting; • Furnish imported backfill material and dispose of trench spoil as required; • Furnish, install and transfer ownership to SCE any substructures, conduit, and protective structures required other than the conduit portion of cable -in-conduit; • Obtain any necessary construction permits far all work performed by Applicant under this Contract. If Applicant elects to have SCE perform any part of this work, Applicant shall pay to SCE, as specified herein and before the start of construction, SCE's estimated-installed costs thereof. Rights of Way Applicant hereby grants fo SCE the rights of way and easements far the Distribution Line Extension over fhe shortest, most practical, available, and acceptable route within Applicant's properly for the purpose of making delivery of electric service hereunder. Such easement shall include the right of access and right to trim trees as necessary. Where formal dghts of way, easements, land leases, or permits are requiretl by SCE for installation of facilities on or over Applicants property, or the property of. others, Applicant understands and agrees that SCE shall not be obligated to install the Distribution Line Extension for the Project unless and until any necessary permanent rights of way easements, land leases, and permlis, satisfactory to SC, are granted to or obtained for SCE without cost to or condemnation by SCE Advances Applicant shall contribute or advance, before the start of consfruction, the refundable and non- refundable amounts as set forth in Appendix A fo this Contract. This includes the costs for substructures and conduits which SCE had previously installed at ifs expense in anticipation of the currant Distribution Line Extension. Any necessary riser conduit, conduit covering, and miscellaneous riser material required for the Distribution Line Extension shall be furnished or paid for by Applicant and shall be installed by SCE. All contributions and advances by Applicant are taxable and shall include an Income Tax Component of Contribution (ITCC) at the rate provided in SCE's Preliminary Statement. ITCC wil! be either refundable or non-refundable depending on whether the corresponding contribution or advance is refundable ornon-refundable. Joint Applicants. The total contribution or advance from joint Applicants wilt be apportioned 6y SCE among the members of fhe group in such manner as Applicants mutually agree. 3.2 Responsibilities of SCE Construction SCE shall install, own, operate, and maintain the Distribution Line Extension to serve the Project. SCE will install only those facilities that, in SCE's judgement, will be used within a reasonable fime ko serve permanent loads Refunds SCE shall make refunds to Applicant in accordance with the provisions of Rule 15. 3,3 Ownership of Facilities Title to and ownership of the Distribution Line Extension shall vest in SCE. Applicant does hereby agree that upon completion and acceptance by SCE of any Applicant-installed facilities, title to each and every component part thereof shall immetliately pass to SCE free and clear of all liens and encumbrances. 3.4 Service Facilities Service extensiens shall be installed pursuant to SGE's Rule 16, Service Extensions. 3.5 Street Lighting Facilities Street lighting and Distribution Line Extensions within the Project solely for service to street lighting equipment shall 6e installed in accordance with the appropriate street light tariff schedule. Street light revenues are not applicable toward allowances or refunds for Distribution Line Extensions. Electroliers shall be located at points determined by the governmental agency having jurisdiction aver streets to be dedicated to that agency or by Applicant far privately awned and maintained streets open to and used by the general public. 3.6 Non-Refundable ~iscoun# Op#ion In lieu of contributing the total refundable amount, Applicant has the opton of contributing, on a non-refundable basis, a percentage of such refundable amount as set forth in Appendix A to this Contract. Applicant has or has not chosen this option as indicated 5y signature on Appendix A. 3.7 Refunds The total refundable amount shall be subject to refund, without interest, in accordance with the provisions of Rule 15, which include the following: Residential. Refunds will be made on the bask of any new customer permanent load connected to the Distribution Line Extension which produces additional revenues to SCE. The refund will 6e deducted from the total refundable amount, and the remaining amount subject to refund will represent that portion of the Distribution Line Extension cost not supported by revenues. Non-Residential. Refunds will be made on the basis of Applicant or any new customer permanent load connected to the Distribution Line Extension which produces additional revenues to SCE. SGE shall be responsible to review Applicant's acfual net revenue forthe first three years from the date SCE is first ready to serve. Applicant shall be from the date SCE is first ready to serve. Such. review shall determine if additional net revenue justifies refunds to Applicant. Unsupported Distribution Line Extension Cost. When any portion of a refundable amount has not qualified for a refund at the end of twelve {12) months from the date SCE is first ready to serve, Applicant will pay to SCE an ownership charge on the remaining refundable balance. The difference between the total refundable advance and any refunds made or eligible to be made to Applicant shall serve as the basis of a monthly ownership charge ("base " ). Monthly ownership charges are calculated by multiplying the base times the SCE -financed added facilities percentage in Rule 2. Monthly ownership charges are distinct from the refundable amount and will normally be accumulated and deducted from refunds due to Applicant. This provision does not apply to individual residential Applicants. The monthly ownership charges herein shall automatically increase or decrease if the California Public Utilities Commission should subsequently authorize a higher or lower percentage rate for fhe monthly ownership charges, effective on the date of such authorization. Refund Period. The total refundable amount is subJect to refund for a period of fen (t0) years after the Distribution Line Extension is first ready to serve. Any unrefunded amount remaining at the end of the ten-year period shah become property of SCE. 3.8 Payment Adjustments Contract Compliance. If, after six (6} months following the date SCE is first ready to serve residential loads for which allowances were granted, one (t) year for non-residential loads, Applicant fails to take service, or fails to use the service contracted for; Applicant shall pay to SCE a additional contribution, based an fhe allowances for the loads actually installed. Excess Facilities. If the load information provided by Applicant results in SCE having installed facilities which are in excess of those needed to serve the actual loads, and SCE elects to reduce such excess facilities, Applicant shall pay to SCE its estimated total casts to remove, abandon, or replace the excess facilities, less fhe estimated salvage of any removed facilities. 3.9 Reimbursement to Applicant Where mutually agreed upon by SCE and Applicant, Applicant may perform SCE's work or install facilitiesnormally installed by SCE. Such work shall 6e in accordance with SCE's specifications and timing requirements. SCE shall reimburse Applicant SCE's estimated installed cost of such facilities and work by applying a credit toward Applicant's advance. Any amount not so credited shall be reimbursed to Applicant upon acceptance of the work and facilities by SCE. 3.70 Delays in Construction Force Majeure. SCE shall not be responsible for any delay in the installation or compiefion of the facilities 6y SCE resulting from the late performance of Applicant's responsibilities under this Contract, shortage of labor or material, strike, labor disturbance, war, riot, weather conditions, governmental rule, regulation or order, including orders or judgements of any court or commission, delay in obtaining necessary land rights, act of God, or any other cause or condition beyond the control of SCE. Resources. SCE shall have the right, in the event it is unable to obtain sufficient supplies, materials, or labor for all of its construction requirements, to allocate materials and labor to needs of its customers. Any delay in construction hereunder resulting from such allocation shall. be deemed to be cause beyond SCE's control. Contract Revision. If Applicant does not commence installation of any facilities which are Applicant's responsibility or SCE is prevented from commencing the installaton of the facilities for causes beyond its reasonable control avithin one year from the effective date of this Contract, SCE may, in its discretion, revise its cost estimate and recalculate the refundable and / or non- refundable amounts set forth herein. SCE will notify Applicant of such increased costs and give the option to either terminate this Contract or pay SCE the additional charges. 3.13 Contract Termination If at any time during the term of this Contract, SCE is not the sole deliverer of electrical requirements for the Project, this Contract may be terminated. Upon termination of the Contract, Applicant agrees to forfeit that portion of the advance paid to SCE for its expenses covering any engineering, surveying, right of way acquisition and other associated work incurred by SCE. If such expenses are greater or less than the refundable and/or non-refundable advance, Applicant shall pay to SCE, or SCE shall refund the balance to Applicant, without interest, as the case may be. 3.32 Indemnification Applicant shall, at its own cost, defend, indemnify, and hold harmless SCE, its officers, agents, employees, assigns, and successors in interest from and against anyand ail liability, damages, losses, claims, demands, actions, causes of action, costs including attorney's fees and expenses, or any of them, resulting from the death or injury to any person or damages to any property caused by Applicant or its contractor and employees, officers or agents of either Applicant or its contractor, or any of them, and arising out of the performance or nonperformance of their obligations under this Contract. 3.13 Assignment of Contract Applicant may assign this Confmct, in whole or in part, only if SCE consents in writing and the party to whom the Contract is assigned agrees in writing, to perform the obligations of Applicant hereunder. Assignment of the Contract shall not release Applicant from any of the obligations under this Contract unless otherwise provided therein. 3.34 Joint and Several Liability Where iwo or more individuals or entities are joint Applicants under this Contract, all Applicants shall be jointly and severally liable to comply with ail terms and conditions herein 3.15 Warranty Applicant warrants that all work and/or equipment furnished or installed by Applicant or its contmetor shall be free of defects in workmanship and material. The warranty period shall begin from the date of final acceptance by SCE and extend for one (1}year. Should the work develop. defects during tfiat period, SCE, at i#s election, shalt either (a} repair or replace the defective work andlor equipment, or {b} demand that Applicant repair or replace the defective work and/or equipment and, In either event, Applicant shall be liable for all casts associated with such repair andlor mplacement. Applicant upon demand by SCE, shall promptly correct, to SCE's satisfaction and that of any governmental agency having judsdic#ion, any breach of any wananty. 3.16 Contract Effective Date This ConVact shall not be effective unless it is {1) executed and delivered by Applicant to SCE together with payment required hereunder within ninety (90) days of the date in Paragraph 1 of this Contract and (2) accepted by SCE. This Contract shall then be effective on the date executed by SCE and shall take effect without further notice to Applicant. 3.17 Commission Jurisdiofion This Contract is subject to the applicable provisions of SCE's tariffs, including Rule 15, filed and authorized by the Califomia Public Utilities Commission. This Contract shall, at all times, be subject to such changes or modifications by the Public Utilities Commission of the State of Califomia, as said Commission may, from time to Yime, direct in the exercise of its jurisdiction. 3.18 Completion Date The completion date requested 6y Applicant is 4. SIGNATURE CLAUSE The signatories hereto represent that they have been appropriately authorized to enter into this Contract on 6ehaif of the party for whom they sign. APPLICANTfS} CORPORATION, PARTNERSHIP, OR NAME OF AUTHORIZED MAILING ADDRESS: TELEPHONE: ADDITIONAL SIGNATURES FOR JOINT APPLICANTS NAME OF AUTHORIZED MAILING ADDRESS: NAME OF AUTHORIZED MAILING APPORTIONMENT OF ADVANCE AMONG JOINT APPLICANTS: SOUTHERN CALIFORNIA EDISON COMPANY NAME OF AUTHORIZED INDIVIDUAL: TITLE: DATE EXECUTED: DATE SCE FIRST READY TO SERVE: PROJECT NO :81900 ASSOCIATED WORK ORDER NOS: 6442 3563 91049 Southern Califomia Edison Revised Cal. PUC Sheef No.24719-E` Rosemead, Califomia Cancelling Original Cal. PUC Sheet No. 19408-E CONTRACT FOR EXTENSION OF ELECTRIC DISTRIBUTION LINE RULE 15 FORM 16-330 (To be inserted by utility) Issued by (TO be inserted by Cal. PUC) Advice 1309-E John Fielder Date Filod Mav 04 1998 Decision 97-12-098, 97-12-099 Effective Jul 01.1998 16-330frm.doc Vice Presidenf Resolution Reference Contract No. 9127 (CCS) and Resolution No. 10428 (ccs).