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).