HomeMy WebLinkAboutReso 46-17 MOU with City of Vallejo for Rule 20A Credits RESOLUTION NO. 46 — 17
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING A MEMORANDUM OF UNDERSTANDING WITH CITY OF VALLEJO
FOR THE PURCHASE OF RULE 20A CREDITS
WHEREAS, Staff completed plans and specifications for the Dublin Boulevard Rule 20A
Underground Utility District 2013-1 "Sierra Court to Dublin Court", Project No. ST1012
("Project"). The Project includes eliminating overhead utility lines on wooden poles on both sides
of Dublin Boulevard between Sierra Court and Dublin Court, installing the utilities underground,
and reconnecting overhead services to customers with new underground service connections;
and
WHEREAS, the total cost of the Phase 1 utility undergrounding work is estimated at
$3,350,000. After accounting for the Rule 20A funds (existing and borrowed), and the
contributions from AT&T and Comcast, Staff identified a funding gap of $691,000; and
WHEREAS, to address that gap, Staff negotiated with the City of Vallejo to acquire
PG&E credits at a reduced rate. The Rule 20A program allows for agencies to purchase or
trade credits with other agencies; and
WHEREAS, the cities of Vallejo and Dublin have drafted a Memorandum of
Understanding (MOU) for the City of Dublin to purchase up to 750,000 PG&E Rule 20A credits
from the City of Vallejo at a rate of $0.40 per PG&E Rule 20A credit for use of undergrounding
PG&E utilities within District 2013-1.
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Dublin
hereby approves the Memorandum of Understanding with the City of Vallejo for the purchase of
Rule 20A credits.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the MOU
with the City of Vallejo, which is attached hereto as Exhibit A to this Resolution.
PASSED, APPROVED AND ADOPTED this 2nd day of May 2017, by the following vote:
AYES: Councilmembers Biddle, Goel, Gupta, Hernandez and Mayor Haubert
NOES:
ABSENT:
ABSTAIN:
i
Mayor
ATTEST:
City Clerk
Reso No. 46-17, Adopted 5/2/2017, Item No. 4.7 Page 1 of 1
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF VALLEJO AND THE CITY OF DUBLIN TO
TRANSFER PG&E RULE 20A CREDITS
This Agreement is made and entered into this day of , 2017, herein
referred to as the "Effective Date"by and between the City of Vallejo, a municipal corporation herein
referred to as "Vallejo" and the City of Dublin, a municipal corporation herein referred to as "Dublin"
and collectively referred to as the "Parties."
RECITALS
WHEREAS, PG&E collects and annually allocates Rule 20A work credits to communities for
the purpose of directing a portion of their anticipated capital budget towards the undergrounding of
electric facilities within an approved Underground Utility District; and
WHEREAS, Dublin is actively planning a project to underground overhead electric facilities
that qualifies for the application of Rule 20A work credits, however, City has encountered a shortfall
in the number of work credits necessary and desires to obtain an additional allocation of Rule
20A work credits to fund their projects; and
WHEREAS, PG&E currently holds an allocation of Rule 20A work credits for the benefit of
Vallejo, a portion of which represents a surplus that is not being utilized; and
WHEREAS, Dublin desires to purchase up to $750,000 from Vallejo surplus Rule 20A work
credit allocation to be used for their undergrounding projects and Vallejo desires to sell Rule 20A work
credits to Dublin in the amount of 40cents per Rule 20A work credit("Acquisition Price"); and
WHEREAS,the Parties now desire to enter into this Agreement to transfer PG&E Rule 20A
work credits.
AGREEMENT
NOW THEREFORE,the Parties agree as follows:
1. Vallejo agrees to transfer and assign its rights and interest in a portion of its Rule 20A work
credits allocation to Dublin at the Acquisition Price. This Agreement shall be subject to the approval of
the City Council of the City of Vallejo and the City Council of Dublin and shall become effective on the
date when both such approvals have been obtained(the "Effective Date").
2. Within five(5)business days from receipt of payment from Dublin for the Rule 20A
credits,Vallejo shall deliver a written letter to PG&E,with a copy to Dublin, making a formal request
to transfer and assign up to $750,000 of Rule 20A work credits contained in Vallejo's allocation to and
for the benefit of Dublin, and to provide any additional documentation or information that is reasonably
requested by PG&E to complete the transfer. Dublin is working with PG&E to determine the actual
amount of Rule 20A work credits that the city needs to acquire. It is anticipated that an initial amount
of credits will be acquired by Dublin in May 2017 and a final balancing amount of credits will be in
acquired January 2018. Dublin acknowledges and agrees that it has conducted its own investigation as
to the applicability and transferability of Vallejo's work credit allocation for use in Dublin's
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proposed projects and that Vallejo has not made any representation or warranty to Dublin with respect
to the same. The actual use of the Vallejo allocation of work credits by City shall be subject to the
rules and procedures adopted by PG&E and such other conditions or requirements set forth in the
Public Utilities Code.
3. All notices pursuant to this Agreement shall be delivered by First Class Mail to the
attention of the Parties set forth below. Notice shall be effective upon receipt. Notice may also be
given by electronic means,provided that such notice shall not be deemed effective unless it is
acknowledged by the recipient.
City of Vallejo City of Dublin
555 Santa Clara Street 100 Civic Plaza
Vallejo,CA 94590 Dublin, CA 94568
Attn: Jill Mercurio, Interim Director Attn: Gary Huisingh, Director of
of Public Works Public Works
j ill.mercurio @cityofvallejo.net gary.huisingh@dublin.ca.gov
(707) 648-4301 (925)833-6630
4. Term of Agreement: This Agreement shall commence as of the Effective Date and
shall terminate on June 30,2018.
5. Vallejo and Dublin are separate subdivisions of the State of California and are
independent contractors with respect to each other. This Agreement is not intended to,and shall not
be construed to,create the relationship of agent, servant, employee,partnership,joint venture,or any
other similar association. Nothing in this Agreement shall be construed to create an employment
relationship between Vallejo and any employee of Dublin or between Dublin and any employee of
Vallejo. Each party shall be solely responsible for the acts or omissions of its officers,agents,
employees, and subcontractors. Neither party's employees shall be entitled to any employee benefits
from the other party.
6. Each agency shall hold harmless, defend,and indemnify the other agency and its
governing body,officers,employees,agents and volunteers from and against any and all liability, loss.
damage,expense and costs(including without limitation costs and fees of litigation)of every nature
arising out of or in connection with the performance of the terms hereunder, or failure to comply with
any of the obligations in this Agreement,except such loss or damage caused by sole negligence or
willful misconduct.
7. This Agreement shall constitute the entire agreement between the Parties relating to the
subject matter of this Agreement, and shall supersede any previous agreements,promises,
representations,understanding and negotiation,whether oral or written,concerning the same subject
matter. Any and all acts which may have already been consummated pursuant to the terms which are
embodied in this Agreement are hereby ratified.
8. No addition to, or alteration of,the terms of this Agreement shall be valid unless made in
writing and signed by the Parties.
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9. This Agreement shall be governed and construed in accordance with the laws of the State
of California. Any dispute arising hereunder or relating to this Agreement shall be litigated in the
County of Alameda and the prevailing party will be entitled to reasonable attorney's fees,which may be
set by the court in the same action or in a separate action brought for that purpose, in addition to any
other relief to which the party may be entitled.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.
CITY OF VALLEJO CITY OF DUBLIN
By: By:
Daniel E. Keen Christopher L.Foss
City Manager City Manager
Attest: Attest:
By: By:
Dawn Abrahamson Caroline Soto
City Clerk City Clerk
Approved as to form:
By: By:
Claudia Quintana John Bakker
City Attorney City Attorney
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