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HomeMy WebLinkAboutRES NO 125-13RESOLUTION NO 125- 13 A RESOLUTION OF THE CITY OF BAKERSFIELD ACCEPTING THE APPLICATION OF SOUTHERN CALIFORNIA GAS COMPANY REQUESTING A GAS FRANCHISE WHEREAS, in March 1964, the City granted to Southern California Gas Company ( "SCG ") a franchise to lay and use pipes and appurtenances for transmitting and distributing natural gas with the City; WHEREAS, the franchise has a term of 50 years and is set to expire on or about March 23, 2014; WHEREAS, SCG has submitted the attached formal application to the City requesting a new franchise with an indeterminate term; WHEREAS, under the proposed franchise, SCG will pay to the City the greater of 2% of the gross annual receipts received by SCG from the use, operation, or possession of the franchise or 1% of the gross annual receipts derived by SCG from the sale of natural gas within the City limits; WHEREAS, SCG will also pay City a 1% surcharge of gross annual receipts derived from the sale of natural gas with the City limits from all ratepayers except for those customers participating in SCG's California Alternative Rates for Energy (CARE) program; provided, however, that the payment of this surcharge by SCG to City is contingent on approval of the surcharge by the California Public Utilities Commission; WHEREAS, if the franchise requested by SCG is granted, the terms of the franchise and the related fees and surcharge obligations will be essentially the same as those found in the current Pacific Gas & Electric natural gas franchise. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bakersfield as follows: 1. That the above recitals, incorporated herein, are true and correct; and 2. That SCG's application for a natural gas franchise within the City limits is hereby accepted. ---------- 000---- - - - - -- S:\ COUNCIL\ Resos\ 13- 14 \SCG.Franchise.Accept.App.docx v -P -- Page 1 of 2 Pages -- -; OF131 G1NALr HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on September 25, 2013, by the following vote: AY NOES: ABST ABS APPROVED COUNCILMEMBER RI COUNCILMEMBER_ COUNCILMEMBER_ COUNCILMEMBER_ SEP 2 5 2013 ✓ ✓ ✓ MAXWELL, WEIR, SMITH, I SU LIVAN, . CITY CLERK and Ex Officio C of the Council of the City of Bakersfield Mayor APPROVED AS TO FORM: VIRGINIA GENNARO, CITY ATTORNEY By " —0 ANDREW HEGLUN Deputy City Attorney AH /vl:dll S:\COUNCIL\Resos\13-14\SCG.Franchise.Accept.App.docx -- Page 2 of 2 Pages -- 0PK``9 CJ >. m Southern California Gae Company A 0/ )Sempra Energy uway° rt f1• `3 L, APPLICATION OF SOUTHERN CALIF, GAS COMPANY FOR A GAS FRANCHISE PURSUANT TO THE PROVISIONS OF DIVISION 3, CHAPTER 2 OF THE PUBLIC UTILITIES CODE OF THE STATE OF CALIFORNIA, KNOWN AS THE FRANCHISE ACT OF 1937 To the City Council of Bakersfield, California Ladies and Gentlemen: The undersigned applicant hereby makes an application, under and pursuant to the provisions of Division 3, Chapter 2 of the Public Utilities Code of the State of California, for a franchise, and, in compliance with the provisions of Section 6231 thereof, states: (a)The name of the applicant is Southern California Gas Company. The applicant is a corporation organized and existing under and by virtue of the laws of the State of California and engaged as a public utility corporation in transmitting and distributing gas for all purposes to consumers in various municipalities and communities in the State of California, including the City of Bakersfield. (b)The purpose for which the franchise herein applied for is desired to lay and use pipes and appurtenances for transmitting and distributing gas for any and all purposes, under, along, across, or upon the public streets, ways, alleys and places, as the same now or may hereafter exist within the City of Bakersfield. (c)The term for which the franchise herein applied for is desired for an indeterminate term, pursuant to Section 6264 of the Public Utilities Code of the State of California. (d)The applicant, if granted the franchise herein applied for, will pay to the City of Bakersfield during the life of such franchise, the greater of (1) two per cent of the Gross Annual Receipts received by applicant from the use, operation or possession of said Franchise or (2) one per cent of the Gross Annual Receipts derived by applicant from the sale of Gas within City's limits under the Franchise. Applicant shall apply to the California Public Utilities Commission for authority to implement a franchise fee surcharge to be charged solely on Bakersfield ratepayers excluding those customers participating in Applicant's California Alternative Rates for Energy (CARE) Program or successor low- income assistance program, to recover an additional one percent (1 %) of gross annual receipts derived for the sale of gas within the limits of the City of Bakersfield. Dated this � day of 12013 SOUTHERN CALIF RNIA GAS COMPANY Be -�.`� Y Richard M. Morrow Vice Preside t Engineering & Operations Staff Abe J. Garcia Seni r C unsel s- �_ fTi I"- tJ O ORIC)INA,i_