HomeMy WebLinkAbout1996-03-26; City Council; 13569; SDG&E street light acquisition final phaseFINAL PHASE
RECOMMENDED ACTION:
Authorize Mayor to endorse the final bill of sale (in duplicate), and direct the Finance Director
to draft a check for $318,539.00 from the Street Lighting Budget account, finalizing the
purchase of 685 street lights from SDG&E.
ITEM EXPLANATION:
On February 14, 1995 Council adopted two resolutions: one approved the "Agreement for
Conveyance and Operation of Street Light Facilities," and the second approved the transfer
of $318,539.00 from the Street Lighting Zone fund balance to the active Fiscal Year 1994-95
Street Lighting budget for purchase in full of the 685 SDG&E-owned street lights. Those
monies have been advanced to the Fiscal Year 1995-1 996 for this purchase.
Background: f
The concept and preliminary study for purchase of the SDG&E-owned and maintained public
street lighting system began in 1989 with an audit and feasibility study. Three major
justifications for this purchase were first presented to City Council on January 1 1, 1991, and
acquisition of the system was approved in concept. The three justifications were:
J lower maintenance costs by City staff
J improved response time for repairs
J simplification of the Street Lighting Zone assessment formula (currently figured on two
base rate costs), by reducing 137 individual cost benefit formats to eight.
Following Council's approval on January 1 1 , 1991 , City staff negotiated price, inventory and
the "Agreement" format with SDG&E, and when a mutual endorsement was established,
results and action requests were presented to Council at its February 14, 1995 meeting.
Since Council approvals were received on that date a series of time-extending actions and
events have taken place. First, the "Agreement" was returned to SDG&E and additional
reports were prepared by the utility company as back-up information for its submittal to the
California Public Utilities Commission (CPUC) for approval (a required procedure for the
change in ownership of any California public utility). The submittal was sent to the CPUC in
May 1995. In July 1995 the CPUC processing was delayed by a protest to the sale filed by
Utility Consumer Action Network (UCAN) on a ratepayer issue. The CPUC dismissed the
protest and approved the sale in December 1995. The CPUC action was veriiied and
approved by the SDG&E Board of Directors at a major stockholders' meeting.
All necessary SDG&E reports and procedures have been completed and approved, and the
City has received the final invoice endorsement (Exhibit 1). Once the invoice and
accompanying check are received by SDG&E the sale will be complete, and the City will
assume ownership of the 685 street lights.
FISCAL IMPACT:
The total amount of $318,539.00 forthe purchase of the lights is available in the current Street
Lighting Zone budget and is so designated for that purpose. After the purchase, the
reduction in maintenance and energy costs is projected to save Street Lighting and
Landscaping District No. 1 $33,000 per year. This will reduce certain assessments in the
affected areas. Since the entire payment for the street lights will be paid from the special fund budget, there will be no impact on the City's General Fund.
EXHIBITS:
1. Bill of Sale (in duplicate), as per CPUC Decision NO. 95-12-048.
CPUC Decision No. 95-12-048
BILL OF SALE
SAN DIEGO GAS & ELECTRIC COMPANY, a California corporation
(“SDG&E”), in consideration of the sum of $3 18,539.00 received this date, hereby
acknowledges that effective upon the Closing Date, SDG&E does hereby sell, grant and
convey to the City of Carlsbad (“City”) its successors and assigns, all of SDG&E’s right,
title and interest in and to certain electric streetlight facilities (“System”), in the City
located within the County of San Diego, State of California, as described on the attached
detail list. The System is sold as is; no warranties, express or implied, shall accompany
this sale.
This Bill of Sale is executed pursuant to authorization contained in California
Public Utilities Commission Decision No. 95-12-048 and is subject to all terms and
conditions of the Agreement for Conveyance and Operation of Street Lighting Facilities
between City and SDG&E dated February 16,1995.
THE CITY OF CARLSBAD SAN DIEGO GAS & ELECTRIC COMPANY
F. H. @& Ault
Vice President and Controller
ATTEST :
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(SEAL)
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