HomeMy WebLinkAboutSR - RTFY - R25590B - Entrada del PaseoContract No. R25590B
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: RATIFY THE EXECUTIVE DIRECTOR'S APPROVAL OF THE
CONTRACT FOR EXTENSION OF ELECTRIC DISTRIBUTION
LINE RULE NO. 15 AT ENTRADA DEL PASEO WITH THE
SOUTHERN CALIFORNIA EDISON COMPANY
SUBMITTED BY: MISSY WIGHTMAN, PROJECT COORDINATOR
CONTRACTOR: SOUTHERN CALIFORNIA EDISON
36100 CATHEDRAL CANYON DR.
CATHEDRAL CITY, CA 92234
DATE: 25 JANUARY 2007
CONTENTS: CONTRACT FOR EXTENSION OF ELECTRIC DISTRIBUTION
LINE RULE NO. 15
Recommendation:
By Minute Motion, that the Agency Board ratify the Executive Director's
approval of the contract for extension of electric distribution line at Entrada
del Paseo with the Southern California Edison Company.
Executive Summary:
By approval of the staff recommendation, the Agency Board will ratify an agreement
approved and executed by the Agency's Executive Director for the extension of an
electric distribution line at Entrada del Paseo. The new construction of the future
development of the La Spiga Restaurant and the Phase Two Civil Improvements will
require an extension of the electric service from the existing system in place.
Discussion:
The Palm Desert Redevelopment Agency has been continuously developing the 12-
acre site known as Entrada del Paseo. To date, approximately half of the site has been
developed and four major construction projects will soon be under way concurrently.
The Henderson Community Building has already begun construction, and the design for
several acres of landscaping surrounding this site is nearing completion. The Phase
Two Civil Improvements are scheduled to begin towards the end of this month to create
additional site access to the Henderson Community Building and to La Spiga, the new
fine dining restaurant in the back corner of the property near the intersection of Painters'
Staff Report
Ratify the Executive Director's Approval of the Contract for Extension of Electric
Distribution Line Rule No. 15 at Entrada del Paseo with the Southern California Edison
Company
Page 2
25 January 2007
Path and the Palm Valley Storm Channel. These civil improvements will also create a
building pad that the Agency is obligated to construct. In order to prepare the site for
development, the electric distribution lines need to be extended from the original system
built at the Entrada del Paseo site. Southern California Edison issued an invoice to
complete these line extensions for a total paid in full of $1,414.75.
Agency staff proposes to extend these electric distribution lines now, so that the site
work can move ahead as scheduled. These executed documents are hereby presented
to the Agency Board for ratification.
Submitted by:
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Missy an
Project Coordinator
Department Head:
Dave Yrigoyen
Director of Redevelopment/Housing
Carlos 40e , Executive Director
OW" gy RDA
ON 1-a5- 0r1
VERIFIED BY
Original on file with City Clerk's Office
Lauri Aylaian
Redevelopment Manager
Approval:
Paul S. Gibson, Director of Finance
GArda\Melissa Wightman\La Spiga\Civil\Staff Report- SCE Ratification. doc
CONTRACT FOR EXTENSION OF ELECTRIC DISTRIBUTION LINE
RULE NO. 15
PARTIES
This contract for Extension of Electric Distribution Line ("Contract") is issued this 15th day of DECEMBER
2005. The Parties to the Contract are:
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and Southern California Edison Company ("Edison"). Applicant and Edison are referred to individually as
"party' and collectively as "Parties".
2, RECITALS
Applicant has requested Edison, pursuant to Edison's Rule No. 15, Distribution Line Extensions, to Install an
electric distribution line extension ("Line Extension") to the location or locations described as follows:
72557 S 72559 HIGHWAY 111
. PALM DESERT, CA 92200
SCE AI# 6-2206
(Hereinafter referred to as "Project")
3. AGREEMENT
3.1 Responsibilities of Applicant
Construction
Applicant shall, in accordance with Edison's specifications and timing requirements for the Project:
• Perform route clearing, tree trimming, trenching, excavating, and backrilling and compacting;
• Furnish imported backflll material and dispose of trench spoil as required:
° Furnish, install and transfer ownership to Edison any substructures, conduit, and protective
structures required other than the conduit portion of cable in -conduit;
• Obtain any necessary construction permits for all work performed by Applicant under this
Contract -
If Applicant elects to have Edison perform any part of this work, Applicant shall pay to Edison, as
specified herein and before the start of construction, Edison's estimated -installed cost thereof.
Rights of Way
Applicant hereby grants to Edison the rights of way and easements for the Line extension over
the shortest, most practical, available, and acceptable route within Applicant's property for the
purpose of making delivey of electric service hereunder_ Such easement shalt include the right
of access and right to trim trees as necessary. Where formal rights of way, easements, land
leases, or permits are required by Edison for installation of facilities on or over Applicant's
property, or the property of others, Applicant understands and agrees that Edison shall not be
obligated to install the Line extension for the Project unless and until any necessary permanent
rights of way, easements, land leases, and permits, satisfactory to Edison, are granted.to or
obtained for Edson without cost to or condemnation by Edison.
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Advances
Applicant shall contribute or advance, before the start of construction, the refundable and non-
refundable amounts as set forth in Appendix A to this Contract. This includes the costs for .
substructures and conduits, which Edison had previously installed at its expense in anticipation
of the current Line Extension. Any necessary riser conduit, conduit covering, and miscellaneous
riser material required for the Line Extension shall be furnished or paid for by Applicant and shall
be installed by Edison.
All contributions and advances by Applicant are taxable and shall include an Income Tax
Component of Contribution (ITCC) at the rate provided in Edison's Preliminary Statement. ITCC
will be either refundable or non-refundable depending on whether the corresponding contribution
or advance is refundable or non-refundable.
Joint Applicants, The total contribution or advance from joint Applicants will be apportioned by
Edison among the members of the group in such manner as Applicants mutually agree.
3.2 Responsibilities of Edison
Construction
Edison shall install, own, operate, and maintain the Line Extension to serve the Project. Edison will
install only those facilities that, in Edison's judgment, will be used within a reasonable time to serve
permanent loads.
Refunds
Edison shall make refunds to Applicant in accordance with the provisions of Rule No. 15.
3.3 Ownership of Facilities
Title to and ownership of the Line Extension shall vest in Edison. Applicant does hereby agree that
upon completion and acceptance by Edison of any Applicant -installed facilities, title to each and
every component part thereof shall immediately pass to Edison free and clear of all liens and
encumbrances.
3.4 Service Facilities
Service extensions shall be installed pursuant to Edison's Rule No. 16, Service Extensions.
3.5 Street Lighting Facilities
Street lighting and Line Extensions within the Project solely for service to street lighting equipment
shall be installed in accordance with the appropriate street light tariff schedule. Street light
revenues are not applicable toward allowances or refunds for Line Extensions. Electroliers shall be
located at points determined by the governmental agency having jurisdiction over streets to be
dedicated to that agency or by Applicant for privately owned and maintained streets open to and
used by the general public.
3.6 Non -Refundable Discount Option
In lieu of contributing the total refundable amount, Applicant has the option 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 by 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 No. 15, which include the following:
Residential. Refunds will be made on the basis of any new customer permanent load connected to
2
the Line Extension, which produces additional revenues to Edison. The refund will be deducted
from the total refundable amount, and the remaining amount subject to refund will represent that
portion of the 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 Line Extension, which produces additional revenues to Edison. Edison shall
be responsible to review Applicant's actual net revenue for the first three years from the date
Edison is first read to serve. Applicant shall be responsible for notifying Edison if new, permanent
load is added the fourth through tenth year from the date Edison is first read to serve. Such review
shall determine if additional net revenue justifies refunds to Applicant.
Unsupported 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 Edison is first ready to serve, Applicant will
pay to Edison 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 Customer -financed added facilities percentage in Rule No. 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 the
monthly ownership charges, effective on the date of such authorization.
Refund Period. The total refundable amount is subject to refund for a period of ten (10) years after
the Line Extension is first ready to serve. Any unrefunded amount remaining at the end of the ten-
year period shall become property of Edison.
3.8 Payment Adjustments
Contract Compliance. If, after six (6) months following the date Utility is first read to serve
residential loads for which allowances were granted, one (1) year for non-residential loads,
Applicant fails to take service, or fails to use the service contracted for, Applicant shall pay to
Edison an additional contribution, based on the allowances for the loads actually installed.
Excess Facilities. If the load information provided by Applicant results in Edison's having installed
facilities which are in excess of those needed to serve the actual loads, and Edison elects to reduce
such excess facilities, Applicant shall pay to Edison its estimated total costs to remove, abandon, or
replace the excess facilities, less the estimated salvage of any removed facilities.
3.9 Reimbursement to Applicant
Where mutually agreed upon by Edison and Applicant, Applicant, may perform Edison's work or
install facilities normally installed by Edison. Such work shall be in accordance with Edison's
specifications and timing requirements. Edison shall reimburse Applicant Edison'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 Edison.
3.10 Delays in Construction
Force Majeure. Edison shall not be responsible for any delay in the installation or completion of
the facilities by Edison 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 judgments of any court or commission,
delay in obtaining necessary land rights, act of God, or any other cause or condition beyond the
control of Edison.
Resources. Edison 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
construction projects, which it deems, in its sole discretion, most important to serve the needs of its
customers. Any delay in construction hereunder resulting from such allocation shall be deemed to
be cause, beyond Edison's control.
Contract Revision. If Applicant does not commence installation of any facilities which are
Applicant's responsibility or Edison is prevented from commencing the installation of the facilities for
causes beyond its reasonable control within one year form the effective date of the Contract, Edison
may, in its discretion, revise its cost estimate and recalculate the refundable and/or non-refundable
amounts set forth herein. Edison will notify Applicant of such increased costs and give the option to
either terminate this Contract or pay Edison the additional charges.
3.11 Contract Termination
If at any time during the term of this Contract, Edison is not the sole supplier 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 Edison for its expenses covering any
engineering, surveying, right of way acquisition and other associated work incurred by Edison. If
such expenses are greater or less than the refundable and/or non-refundable advance, Applicant
shall pay to Edison, or Edison shall refund the balance to Applicant, without interest, as the case
may be.
3.12 indemnification
Applicant shall, at its own cost, defend, indemnify, and hold harmless Edison, its officers, agents,
employees, assigns, and successors in interest from and against any and all 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 Contract, in whole or in part, only if Edison 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.
3.14 Joint and Several Liability
Where two or more individuals or entities are joint Applicants under this Contract, all Applicants
shall be jointly and severally liable to comply with all terms and conditions herein:
3.15 Warranty
Applicant warrants that all work and/or equipment furnished or installed by Applicant or its
contractor shall be free of defects in workmanship and material. The warranty period shall begin
from the date of final acceptance by Edison and extend for one (1) year. Should the work develop
defects during that period, Edison, at its election, shall either (a) repair or replace the defective work
and/or 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 costs associated with such repair
and/or replacement. Applicant upon demand by Edison, shall promptly correct, to Edison's
satisfaction and that of any governmental agency having jurisdiction, any breach of any warranty.
3.16 Contract Effective Date
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This Contract shall not be effective unless it is (1) executed and delivered by Applicant to Edison .
together with payment required hereunder within ninety (90) days of the date in Paragraph 1 of this
Contract and (2) accepted by Edison. This Contract shall then be effective on the date executed by
Edison and shall take effect without further notice to Applicant.
3.17 Commission Jurisdiction
This Contract is subject to the applicable provisions, of Edison's tariffs, including Rule IVo. 15, filed
and authorized by the'Callfomia 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 California, as said Commission may, from time to time, direct In the
exercise of its jurisdiction.
3,18 Completion Date
The completion date requested by Applicant is X 0q _ 01 . 07
SIGNATURE CLAUSE
The signatories hereto represent that they have been appropriately authorized to enter Into this Contract on
behalf of the party for whom they sign.
APPLICANTStSI
CORPORATION, PARTNERSHIP, OR DBA: eFPf-eF PALM DESERT 9,�PL-viz-�P,/1F-sN i M; aNGY
NAME OF AUTHORIZED INDIVIDUAL: Carlos L. Ortega,
SIGNATURE: v `�` -
TITLE: V Executive Director
MAILING ADDRESS: 73510 FRED WARING DRIVE. PALM DESERT CA 92260
TELEPHONE: 760-346-0611
ADDITIONAL SIGNATURES FOR JOINT APPLICANTS
NAME OF AUTHORIZED INDIVIDUAL:
SIGNATURE:
TITLE:
MAILING ADDRESS:
TELEPHONE:
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NAME OF AUTHORIZED INDIVIDUAL:
SIGNATURE:
TITLE:
MAILING ADDRESS:
TELEPHONE:
APPORTIONMENT OF ADVANCE AMONG JOINT APPLICANTS,
SOUTHERN CALIFORNIA EDISON COMPANY
NAME OF AUTHORI ED INDIVIDUA FRANK JASSO
SIGNATURE:n., 0'!�
TITLE: PLANNING SUPERVISOR
DATE EXECUTED:
DATE EDISON FIRST READY TO SERVE:
WORK ORDER NO. 6979-2380 6-2206
ASSOCIATED WORK ORDER NOS.
Form No, 16-330
G950424.03
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