HomeMy WebLinkAbout1993-06-22; City Council; 12273; APPROVAL OF AGREEMENT WITH THE SOUTHERN CALIFORNIA GAS COMPANY FOR BATIQUITOS LAGOON ENHANCEMENT PROJECTf
OUTHERN CALIFORNIA GAS COMPANY FOR
ADOPT Resolution No. 93 -131 approving an agreement with the Southern CI
Gas Company for utility relocation planning and design services required
Batiquitos Lagoon Enhancement Project and appropriating funds subject
reimbursement of all City costs from the Port of Los Angeles.
ITEM EXPLANATION
The enclosed agreement between the City of Carlsbad and the Southern Califo
Company is the first in a series of agreements with a number of utility companie
existing facilities will be affected by the upcoming construction of the Batiquitos
Enhancement Project scheduled to begin in 1994. In the case of the Southern C
Gas Company, this utility owns and maintains an existing high pressure gas tran
line which crosses the western basin of the lagoon and requires relocation in COI
with the construction of the lagoon enhancement project. The existing elevatic
gas line is higher than the finished bottom depth of the western basin c
therefore, the line must be relocated.
The relocation plan includes installation of a new high pressure gas transmi!
extending westerly of its current entrance into the lagoon, into Carlsbad B
crossing within the new West Carlsbad Boulevard bridge structure, south on
Boulevard, and then east on La Costa Avenue until it reconnects with the existin
line near the AT&SF bridge over La Costa Avenue. The relocation plan is de
attached Exhibit 1. Following installation and activation of the new gas line, th
line will be removed from the lagoon where it conflicts with the project.
As is the case with most utility work, only the utility company itself wi
Phase I :
Phase 2:
Phase 3: Construction and inspection
Planning and design of the relocation
Ordering and delivery of materials
The enclosed agreement between the City of Carlsbad and the Southern Cali.
Company, referred to as the "Collectible Work Authorization," implements tt'
design work only. Additional agreements will require execution for the subse
(2) phases of this work. Approval of the Phase I agreement does not obliga
for the two (2) subsequent agreements in the event of postponement or terr
the lagoon project by the Port of Los Angeles. Staff recommends apprc
attached agreement and initiation of the utility design work.
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Page Two of Agenda Bill No. 12, a33
FISCAL IMPACT
The enclosed agreement with the Southern California Gas Company for the f
utility design work requires a City deposit of $ 40,000.00. The deposit and certa
related expenses are paid by the City and then reimbursed in full by the Por
Angeles under the terms of the existing reimbursement agreement. The Por
Angeles has already been invoiced by the City for this deposit.
The City Council previously appropriated $100,000 from the General
Construction (GCC) fund for upfront expenses. Insufficient funds exist in thc
account to fund this utility company deposit and an additional appropriation of <
is required at this time. The Port of Los Angeles is expected to reimburse the G
within a short period of time.
The Phase 2 and 3 portions of this utility work with the Southern Califor
Company will total approximately $ 800,000 and require similar upfront depo
to initiation of work. The Port of Los Angeles has indicated these major co:
along with all other incidental utility construction related costs, will be budgetc
Port in the next round of its project budget authorization through the Cit!
Angeles, Board of Harbor Commissioners. This will occur in approximately thr
four (4) months following completion of the overall Batiquitos project design.
will make direct deposits with the respective utility companies for the larger cc
related to procurement of materials and construction.
EXHIBITS
1. Location map.
2. City Council Resolution No. 9 3-('2 '1 approving an agreement
Southern California Gas Company for initiation of utility design work re(
the Batiquitos Lagoon Enhancement Project and appropriation of funds
Carlsbad-Southern California Gas Company agreement. 3.
EXISTING 12" GAS LINE
NEW GAS LINE
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PROJECT NAME;
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RESOLUTION NO. 93-177
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAR1
CALIFORNIA, APPROVING AN AGREEMENT WITH THE SOUTHERN CALI1
GAS COMPANY FOR UTILITY DESIGN SERVICES AND APPROPRIATING
SUBJECT TO REIMBURSEMENT FOR THE BATlQUlTOS LI
ENHANCEMENT PROJECT.
WHEREAS, the City Council of the City of Carlsbad, California, has prc
entered into an agreement with the City of Los Angeles, acting by and thrc
Board of Harbor Commissioners, for implementation of the Batiquitos
Enhancement Project; and
WHEREAS, said agreement includes provisions for the complete reimbu
of City costs for said project from the Port; and
WHEREAS, the Southern California Gas Company owns, operates, and r
an existing high pressure gas transmission line crossing said lagoon whict-
relocation in conjunction with said project; and
WHEREAS, an agreement has been prepared by the parties heret
initiation of required planning and design of said relocation; and
WHEREAS, the City Council of the City of Carlsbad hereby finds it r
desirable, and in the public interest to enter an agreement for the initiatil
planning and design services.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City o
California, as follows:
1. That the above recitations are true and correct.
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2. That an agreement between the City of Carlsbad and the S
California Gas Company for the initiation of required planning and design ser'
said project is hereby approved and the Mayor and City Clerk are author
directed to execute said agreement.
3. That following the Mayor's execution of said agreemc
accompanying indemnification forms, the City Clerk is further authorized and
to forward certified copies of this resolution and the original of the agreemenl
(2) originally signed copies of the accompanying indemnification form to the
California Gas Company, attention Mr. Larry Jacquez, Facility Planner, 81 4
Avenue, Playa Del Rey, California, 90293. One copy each of the resolutio
agreement and form is also to be sent to the Port of Los Angeies, Attentior
Sales, 425 South Palos Verdes Street, P.O. Box 151, San Pedro, Californil
and the Community Development Department.
4. The City Council does hereby appropriate the sum of $40,00(
unappropriated reserve of the General Capital Construction Fund to the
project account 300-820-1 890-3350.
5. That the City Council does hereby authorize the deposit of $ 1
with the Southern California Gas Company and directs staff to include this
the next regular reimbursement invoice from the City of Carlsbad to the F
Angeles for City costs related to this project.
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsb
Council held on the 22nd day of JUNE , 1993, by the followil
to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila
NOES: None
ABSENT: None
ATTEST:
lL.eL&B&
ALETHA L. RAUTENKRANZ, City Clerk )
(SEAL)
3.
I
SbUTPiERN CALIFORNPGAS COMPANY- COLLECT@4 WORK AUTHOWI&/
- To: Southern California Gas Cornpany Serial No.: P
File No.: sOuI?-IERN REX;ION
8141 GULANA AVENUE 9273;
PLAYA DEL RFI, CA 90293-7930
M. D. MIDDLEXUN Attention:
Project Title:. DATIQ~?Y>S..W-GGQE -P"W=P-- _----
' Tlic Southern California Gas Company [hereafter "Company"), is authorized to alter its facilities, and.-C!TL!!F- e!!isf?@ ..__._ __ .__ ._.__._ ._____[hereafter "Purchaser") agrees to reimburse the Company for the
work in connection with the __________-_.._-__-_- PIWE I OF THE BATIQUI-XIS LAGCON ENHANCEMENT PFOJKT.
The work contemplated and estimated reimbursable costs are: FOR P-G AND DEIGN, As~~~ w
TIE RELCCATION OF APPROXIMATELY 5,800 F" OF 12-INCH HIGH PRESSURE TRANSMISSION
#lo26 AND A CATHODIC PROTECTION RECIIFIER STATION. (EsI?MATED oc>ST $40,000. CI
TAX NOT INCLUDED. )
.
___- _. -.. .__~ . . . . _._.__....__ .__I_. --
IT IS llNDERSTOOD AND AGREED that the above description is general in nature, that this authorization covers all work necersitoled by the propo!
thut dcviolion Irorir Itic above description nioy be made by Ihe Company lo meet the practical requiremenls of installation such os sofety, avoidance <
government oulliorily cind Environnicntol Impact Reports when required.
Rcqucsls for cliongcs in Ilie above described work for Ihe convenience of lhe Purchaser may be rejected by the Company. If such chonger are accepte
uqrcer 10 reimburse llic Company for llic actual cast of such work unless otherwise agreed to in wriling.
1IIE ABOVE ESTIMATE IS FURNlStlED ONLY FOR THE CONVENIENCE OF THE PARTIES HERETO. IT IS INTENDED TO REFLECT THE COMPANY'S
EXPLHIENCE OF TIiE COST OF SIMILAR WORK UNDER FAVORABLE CONDITIONS. BECAUSE OF UNFORESEEN CONTINGENCIES AND OTHER
ACTUAL COST MAY BE CONSIDERABLY HIGHER OR LOWER THAN THIS ESTIMATE. THEREFORE, THE ESTIMATE IS NOT TO BE CONSIDERED A
TIIE COMPANY OF THE ACTUAL COST.
TIie ilctuol cosl. any agreed unit cost or any firm estimate shall include overhead coslr contained in the Company's oppropriale billing formula.
Poymcnt is due and poyoble upon presenlation of a bill to.--CI~-~.~,~~!,
2075 LQS. PAIW. DRIZTE, -.~R~~,.-~.~2~9~~~6.~~~~~ L--
In case of default or delay in payment, .-. .__.
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sticill pay to the Company all costs and expenses incurred in the collection of any sum due, including aitorney's fee and court costs. A deposit of 6-
has becn mode by Ihe Purchaser as poymenl loward all costs to be incurred by the Company for work performed pursuant to this agreement. Pur
puy, upon prescntution, each billing issued for work completed and to make additional advance deposits of $ - each whenev
dcletmincs the cost of the work complcted has substanlially equalled the amount of the deposit. If actual cos1 exceeds the deposit[r), the Purcha!
Company the difference; if !lie total cost is less than ihe deposil(s), then the Company shall refund the difference.
The Purchaser ogrces lhat any excavation made by him that is to be entered by Gas Company employees, agents or subcanlractars in performing t
by this agreement shall conform lo a11 requiremenls of State of California Construction Safety Orders, particularly the provisions of Article 6, Sectii
1547, wl>icIr rutole to tlic safe construction of lrenchcr and excavalions.
The Purcliuscr further agrees lo lakc all reasonable care in prolecting the Gar Company's property from damage. including )he use of procedur
place undue strain on pipes during excavation and backfill or cause damage to pipe proteclive coatings.
Thu'Purcharcr shall also indemnify the Gas Company against, and save and hold it harmless from, any and a11 liability, claims, demands, dami
c:vcvy kind and nuturc for inju,y to or dcalli of any and a11 persons, including, without limitation, employees or representalivcs of thc Gas Co
t'utchuwr, or any allicr person or pcrrons, and lor damage, dcslruction or loss, consequential or othcrwisa, lo or of any and all properly, real or pc
without liniitalion, properly of ttic Gas Company or of Ihe Purchaser, or of any other person or perrons, resulting from or in any manner oris1
connection with the pcrfotmonce of the work under lhir conlract. The Purchaser shall, also, upon request by the Gas Company, and ot no exp
Company, defend the Gas Company in any and a11 suits, concerning such injury to or dealh of ony and all persons, and concerning such dam05
loss, consequential or otherwise, to or of ony and all properly, real or personal, including, wilhout limilalion, suits by employees or reprerentalive
pony or of the Purchaser, or any other person or persons. Excluded from this paragraph are only lhose injuries to or deaths of persons and dama
loss, to or of properly arising from the sole negligence or willful misconduct of the Gas Company or its employees or representatives.
The undcrrigncd lrcrcby represent thot they ore aulhorized to execute this agreement on b
nil 111 cd.
Agreed to and accepted ttiis.-~ .... ___ .--...___
day of ....-...-----.-.---------, 19-.
SOUTHERN CALIFORNIA GAS COMPANY ForAity of Carlsbad
by-^-..__ .....- . ... .___~ ..-. .__--
3011.D
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FORM OF INDEMNIFICATION
An Agreement, dated this day of , 199 , by and between Southern California Gas Company (ltSoCalGastt) and City of Cai (hereinafter I1Customert1) .
Preliminary Statement - The Federal Tax Reform Act of 1986 made taxable the receipt by a utility of all Contributions in Aid of
Construction (ltCIAC") after 1986. By Decision No. 87-09-26, revisec Decision No. 87-12-028, the California Public Utilities Commission
(tlCPUC1t) determined the permissible methods for California utilities
collect the federal income tax on CIAC and stated that all contribu. and refundable advances should be assumed to be taxable until the
Internal Revenue Service (IIIRS") rules otherwise. The following
contributions from governmental agencies were assumed to be nontaxal for a two (2) year period where the agency has provided adequate wr.
assurance of payment (i.e., a contractual promise to pay): contribul
made (i) pursuant to condemnation proceedings; (ii) under threat of
condemnation; or, (iii) where the benefit of the public as a whole 1
the primary motivating factor for the contribution (hereafter the ltI
Benefit Exemptionm1). If a favorable determination from the IRS is
received within this period, the payment is to be deemed taxable.
Subsequent to the CPUC decisions, the IRS released Advance Not
87-82 addressing the tax treatment of various CIAC characterization
The IRS excluded from the public Benefit Exemption any payment that
reasonably relates to the provision of services by a utility, Custo.
believes, however, that an exemption from Federal Income Tax is pro
applicable to Customer's below-described job and plans to seek offii
confirmation that the payment is not taxable.
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, SoCalGas and Customer agrees as follows
A. Definitions -
1. "Benefit of the Public as a Whole" - Work done by or at the request of a governmental agency in public streets, propert rights of way pursuant to statutory right or common law pol power which does not reasonably relate to the provision of utility service.
2. t1Condemnation91 - Any lawful proceeding in condemnation unde
laws of California.
3. 11Contribution'1 - A payment in cash, transfer of facilities property, or the performance of labor or service for or in
of the utility.
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4. "Final DeterminationI1 - A published decision, issued by th
Treasury, IRS or a federal court, concerning the federal i taxation of CIAC which is applicable to the payments to So
for which an indemnity is provided by this agreement. A d
includes final or temporary income tax regulations, notice
revenue ruling and private letter rulings issued to Custom
SoCalGas.
5. "Governmental Agency" - Any agency of the federal or stat€
government, any organ of county government or incorporated and public transit authority, a redevelopment or special
assessment district or other special purpose agencies to t extent funded by appropriations of the state legislature, or incorporated city government.
6. "Threat of Condemnationn - Any plans made or agreed to fox utility work which could otherwise be accomplished by
condemnation.
B. Representations and Warranties of Customer - Customer represer
follows:
1. Customer is a governmental agency which has engaged or cai SoCalGas to do work more fully described in the attached ( SoCalGas' Collectible Work Authorization File No. 92737-Nt
incorporated herein by this reference (the 81Work11).
Customer believes that the Work primarily benefits the pu'
a whole within the meaning of applicable law, regulations revenue rulings, decisions, and notices. customer intend
seek or is seeking a Final Determination of the taxabilit:
2.
contribution made for the Work.
C. Indemnity - In consideration of SoCalGas not requiring at thi
any payment by Customer to SoCalGas to reflect Federal Income
liability on contributions by Customer to SoCalGas on the Wor: customer hereby agrees to indemnify SoCalGas and hold SoCalGa
harmless from and against any and all demands, claims, costs,
charges, liabilities and expenses relating to or arising from ultimate taxability of the contribution made to SoCalGas for Work. This indemnity shall last from the date of this agreem until the earlier of Final Determination, or payment is made to Section D3 below.,
D. Final Determination, Payment or Release -
1. In the event that the result of the Final Determination i
the contribution for the work is taxable as CIAC, Custome
agrees, promptly upon demand from SoCalGas, to pay SoCalG
full amount of tax, as well as any penalty and interest t
the IRS or to be due the IRS at the time the consolidated
for the group of which SoCalGas is a part is filed. Late
payments will accrue interest at the rate set by the IRS.
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2. In the event that the Final Determination renders the paynu nontaxable to SoCalGas, Customer will then be immediately i irrevocably released from its obligations herein, and this Agreement shall be without further force or effect.
3. If there is no Final Determination within two (2) years of date first written above, Customer hereby agrees, promptly demand from SoCalGas, to pay SoCalGas the full amount of ti
penalty and interest then due the IRS, or to be due the IR! the time the consolidated return for the group of which So( is a part, is filed.
E. CPUC - This Agreement is entered into pursuant to SoCalGas' Tal
Preliminary Statement Section L, on file with the CPUC, and th
Agreement shall at all times be subject to such changes or
modifications as the CPUC may direct in the exercise of its
jurisdiction.
Complete Agreement - This Agreement can only be modified or am
in writing signed by both parties.
IN WITNESS WHEREOF, this Agreement is entered into as of the d first above-written by duly authorized representatives of SoCalGas
F.
SOUTHERN CALIFORNIA GAS CO
By:
Title: Mayor Title:
City of Carlsbad Address: 1200 Carlsbad Via- Drive
Carlsbad, CA 92008