TITLE
Recommendation to authorize City Manager to execute Schedule A, Intrastate Transmission Service, which is an attachment to the current long-term Master Services Contract No. 26729 between the City and Southern California Gas Company for the transmission of natural gas. (Citywide)
DISCUSSION
The City of Long Beach (City) utilizes intrastate pipelines owned by the Southern California Gas Company (SoCaIGas) to transport City-owned natural gas from the California border to the City's gas utility distribution system. The City contracts for the purchase of an out-of-state natural gas supply which is transported by interstate pipelines to the California border.
On January 18, 2000, the City Council authorized the City Manager to execute a long-term Master Services Contract (No. 26729) in conjunction with Schedule A, the Intrastate Transmission Service Agreement, between the City and SoCalGas. Schedule A sets forth the terms and conditions of intrastate transmission service and the applicable tariff rate schedule as published in the SoCalGas Tariff and approved by the California Public Utilities Commission (CPUC). The Master Services Contract states that the term of the Contract shall continue for the term set forth in Schedule A, and in any other service Schedule attached from time to time. The current Schedule A expires on October 31,2009. The new Schedule A will amend the existing term from November 1, 2009 to November 1, 2011, and will continue to be an attachment to the long-term Master Services Contract.
This matter was reviewed by Deputy City Attorney Richard Anthony on September 10, 2009 and by Budget and Performance Management Bureau Manager David Wodynski on September 11,2009.
TIMING CONSIDERATIONS
City Council action is requested on October 6, 2009, as the existing Schedule A expires on October 31, 2009. To ensure continuation of transmission services on SoCalGas' system, a new Schedule A must be executed prior to November 1,2009.
FISCAL IMPA...
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