HomeMy WebLinkAbout2006/09/19 Item 18
COUNCIL AGENDA STATEMENT
Item:
Meeting Date:
10
9/19/06
ITEM TITLE:
Public Hearing: Consideration of an amendment to the Master Fee
Schedule to reflect a modification to the Utility Permit Fee schedule.
Resolution Amending the Master Fee Schedule to Modify the Utility
Permit Fee Portion of the Schedule
SUBMITTED BY:
Resolution Approving a Manual of Administrative Practices Between
the City of Chula Vista and San Diego Gas and Electric Company and
authorizing the Mayor to execute said Manual.
A. D. fE.. \.t.... t.....t..-5
chng lfector 0 ngmeenng 1"'"'0
/:
Interim City Manager dl (4/5ths Vote: Yes No X )
REVIEWED BY:
On October 12, 2004, by Resolution No. 2004-333, Council approved the Memorandum of
Understanding (MOU) between the City of Chula Vista and San Diego Gas and Electric
regarding proposed terms for the gas and electric franchises. One of the requirements of the
MOU was the preparation of the Manual of Administrative Practices Between the City of Chula
Vista and the San Diego Gas and Electric Company. Tonight, Council will consider approving
this Manual. Council will also consider a proposed amendment to the City's Master Fee
Schedule. The proposed amendment will allow the City to provide for the processing of certain
minor utility permits through a separate, Council-approved, written agreement between the City
and the permittee.
RECOMMENDATION: That Council conduct the public hearing and adopt the Resolutions.
BOARDS AND COMMISSIONS: Not applicable.
DISCUSSION:
Back!!round
On October 12, 2004 the City and San Diego Gas and Electric (SDG&E) entered into an MOU to
provide for specific community-wide benefits and new gas and electricity franchise agreements
between the City and SDG&E. On November 16,2004, the City adopted Ordinance Nos. 2987
and 2988 (the "Ordinances"). By Ordinance No. 2987, the City granted SDG&E a franchise to
"construct, maintain and use poles, wires, conduits and appurtenances, including communication
circuits, necessary or proper for transmitting and distributing electricity to the public for any and
all purposes in, along, across, upon, under and over the public streets, ways and places within"
the City. By Ordinance No. 2988, the City granted SDG&E a franchise to "construct, maintain
and use in the streets of [the] City all pipes and appurtenances for transporting, transmitting and
distributing gas to the public for any and all purposes within" the City. The Franchises
commenced on January 1, 2005.
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Page 2, Item
Meeting Date 9/19/06
18
In consideration for the granting of the Franchises, SDG&E agreed to pay the City franchise fees
and collect certain taxes and charges, as detailed in the Ordinances.
The initial term of each Franchise is ten years. After the initial ten-year term, each Franchise
will automatically renew for an additional twenty-year term, if SDG&E materially satisfies its
obligations of the MOU.
The MOD and the terms of the Franchises require the preparation of a standards manual for
expedited permit processes and requirements for utility projects and maintenance work. Further,
the Ordinances require the Manual to include administrative practices to govern the permitting,
installation, maintenance, repair and removal of SDG&E' s facilities in the streets of the City.
The Manual
In accordance with the MOD, City staff and SDG&E have worked together to create the Manual
of Administrative Practices that is before Council tonight for consideration (Exhibit "A").
Highlights of the Manual include the following:
· Definitions to clarify what is considered scope of work in streets, and differences
between emergency work, minor work and ordinary work.
· Define what work performed by SDG&E requires permits from the City and when fees
will be collected.
. Defines what responsibilities the City has in inspecting the work performed by SDG&E.
. Terms of the Manual are in effect throughout the term of the Franchises.
· Defines how SDG&E is required to notify the City prior to doing work in City streets,
when City-issued utility permits are required and the cost of these permits.
. Traffic Control. Defines what type of work by SDG&E requires traffic control plans and
how SDG&E is to implement said plans.
· Street and sidewalk repair. Defines how and when SDG&E is to repair City streets after
the utility work is done.
The terms of the manual will allow SDG&E to do emergency work and minor work without
obtaining a utility permit or paying permit fees to the City. However, SDG&E will notify the
City at least two days prior to commencing minor work and within two days of performing
emergency work. In the past, SDG&E has obtained permits and paid a nominal flat fee (currently
$300 per permit) for work now considered as minor work. The City will lose approximately
$5,000 to $7,000 per year in revenue by not charging for these permits. The nature of the work
under the minor work definition will involve minimal inspection services by the City and permit
processing staff time will be reduced. SDG&E contends that together with the increased
franchise fee, the one-time fee submitted for the preparation of the manual and in the spirit of
expedited processing all as called out in the MOD, they should not be required to pay for
emergency and minor work. Staff agrees with SDG&E that permit fees for emergency and
minor work could be eliminated with little impact to the City. SDG&E will still be required to
obtain a permit and pay fees for larger projects under the ordinary work definition.
Amendment to the Master Fee Schedule
The Master Fee Schedule currently provides for a utility permit fee of $300 for jobs for which
the replacement cost of the surface improvements within the City right-of-way is estimated to be
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Page 3, Item ?S
Meeting Date 9/19/06
days in duration; (iii) does not require trench shoring; (iv) is not constructed on a road wider than
two lanes; and (v) is not near a signalized intersection, the City may provide for utility permit
processing and fees, if any, in a separate written agreement between the City and the permittee.
The written agreement must be approved by the City Council before it becomes effective."
ENVIRONMENTAL REVIEW:
The Environmental Review Coordinator has reviewed the proposed activity for compliance with
the California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defmed under Section 15378 of the State CEQA Guidelines; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no
environmental review is necessary.
DECISION MAKER CONFLICTS: Staff has reviewed the decision contemplated by this
action and has determined that it is not site specific and consequently the 500 foot rule found in
California Code of Regulations section I 8704.2(a)(1) is not applicable to this decision.
FISCAL IMPACT: There is no impact to the General Fund. As required by the MOD, SDG&E
has paid the City a one-time fee in the amount of $250,000 for the development of the Manual.
SDG&E will no longer be required to pay a utility permit fee (currently $300 per permit) for
minor work. This may result in a loss of permit fee revenue to the City of up to $7,000 per year.
Attachments:
Exhibit A: Manual of Administrative Practices Between the City of Chula Vista and San Diego Gas & Electric Company
J:\Engineer\AGENDA \CAS2006\Q8.22-06\SDGE Admin Manual.doc
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RESOLUTION NO. 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA AMENDING THE MASTER FEE
SCHEDULE TO MODIFY THE UTILITY PERMIT FEE
PORTION OF THE SCHEDULE
WHEREAS, the City of Chula Vista previously adopted a Master Fee Schedule,
setting forth fees for "all services administrative acts and other legally required fees" (the
"Schedule"); and
WHEREAS, pursuant to its terms, the Schedule may be amended by resolution,
which shall be effective upon first reading and approval; and
WHEREAS, chapter IX, section CA of the Schedule sets forth fees pertaining to
Utility Permits and subsection a. of that section provides for a $300 fee for surface
improvements within the City right-of-way for which the replacement cost is estimated to
be less than $10,000; and
WHEREAS, the City Council held a public hearing on September 19, 2006, at
which it considered amending the Schedule to allow the City to provide for certain fees
within section IX.CA.a. of the Schedule through a separate written agreement; and
WHEREAS, the proposed amendment would retain that $300 utility fee but
would provide the following: "For work which falls within this category and which: (i)
includes less than 150 feet of excavation; (ii) is less than 7 days in duration; (iii) does not
require trench shoring; (iv) is not constructed on a road wider than two lanes; and (v) is
not near a signalized intersection, the City may provide for utility permit processing and
fees, if any, in a separate written agreement between the City and the permittee;" and
WHEREAS, the City Council has determined it would be in the City's best
interest to amend the Schedule, as set forth above.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Chula Vista herby amends section IX.C.4.a. of the Master Fee Schedule to add the
following paragraph, after the first paragraph in that section:
"For work which falls within this category and which: (i)
includes less than 150 feet of excavation; (ii) is less than 7
days in duration; (iii) does not require trench shoring; (iv)
is not constructed on a road wider than two lanes; and (v) is
not near a signalized intersection, the City may provide for
utility permit processing and fees, if any, in a separate
written agreement between the City and the permittee;"
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Resolution No. 2006-
Page 2
Presented by
Leah Browder
Acting Director of Engineering
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Approved as to form by
, ~~fJtL2
Ci Attorney
RESOLUTION 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A MANUAL OF
ADMINISTRATIVE PRACTICES BETWEEN THE CITY OF
CHULA VISTA AND SAN DIEGO GAS AND ELECTRIC
COMPANY AND AUTHORIZING THE MAYOR TO EXECUTE
SAID MANUAL
WHEREAS, On October 12, 2004 the City and San Diego Gas and Electric
entered into a Memorandum of Understanding (the "MOU") to provide for specific
community-wide benefits and new gas and electricity franchise agreements (the
"Franchises"); and
WHEREAS, the MOU and the terms of the Franchises required the preparation
of a standards manual for expedited permit processes and requirements for utility projects
and maintenance work; and
WHEREAS, the City and SDG&E have worked together to develop the "Manual
of Administrative Practices Between the City of Chula Vista and San Diego Gas &
Electric Company," (the "Manual") to meet the requirements of the MOU and the
Franchises; and
WHEREAS, the Manual sets guidelines for the City of Chula Vista and SDG&E
to follow regarding construction, maintenance, and use of facilities where the easement
crosses the City right-of-way; and
WHEREAS, the City Council has determined that adoption of the Manual is in
the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Chula Vista hereby approves the "Manual of Administrative Practices Between the City
ofChula Vista and San Diego Gas & Electric Company,"
BE IT FURTHER RESOLVED, that the Mayor of the City of Chula Vista is
hereby authorized to execute the Manual on behalf of the City ofChula Vista.
Presented by
Approved as to form by
Leah Browder
Acting Director of Engineering
H:\ENG INEER\RESOS\Resos2006\09-19-06\SDGE AdminManual.doc
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THE A TT ACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
Ann Moore
City Attorney
Dated: -=r)l<t)n;;;.
Manual of Administrative Practices
Between the City of Chula Vista and
San Diego Gas & Electric Company
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ATTACHMENT
Manual of Administrative Practices
Between the City of Chula Vista
And San Diego Gas & Electric_Company
Section I - Introduction
This Manual of Administrative Practices ("Manual") is entered into by and between the
City of ChuIa Vista (the "City") and San Diego Gas & Electric Company ("SDG&E")
(collectively, the "Parties"). This Manual has been prepared pursuant to the
Memorandum of Understanding ("MOU") between the Parties, dated October 12, 2004,
and the franchises that the City granted to SDG&E, effective January 1, 2005 (the
"Franchises"). In accordance with the MOU and the terms of the Franchises, this Manual
will govern the permitting, installation, maintenance, repair and removal of SDG&E's
facilities in City streets.
Section 11- Purpose
The purpose of this Manual is to establish standardized and expedited permit processes
and requirements for utility proj ects and maintenance work consistent with California
Public Utilities Commission ("CPUC") regulation and generally accepted industry
standards,
In furtherance of this purpose, this Manual will, among other things, provide
administrative procedures for the use of the public rights-of-way within the City in order
to:
(a) Clarify the responsibilities and authority of the City and SDG&E relative to
SDG&E's Work within the public rights-of-way within the City;
(b) Formalize the understanding regarding the circumstances under which SDG&E will
notify the City of its intent to conduct any public utility facility installation, modification,
maintenance or repair Work;
(c) Defme the circumstances under which SDG&E will apply for a permit issued by the
City ("Utility Permit") prior to initiating its Work;
(d) Clarify the responsibilities of SDG&E regarding the field supervision and control of
Work forces;
(e) Maintain safe conditions while minimizing inconvenience to the public; and
(f) Establish a cost recovery mechanism for municipal inspection and Traffic Control
Plan review. h.'.
Section II1- Background
A. The MOD and the Franchises.
On October 12, 2004, the City and SDG&E entered into the MOU to provide for
"specific community-wide benefits and new gas and electricity franchise agreements
between the" City and SDG&E. On November 16,2004, the City adopted Ordinance
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govern the practices of City and the Grantee in issuance of permits and
installation, maintenance and removal of Grantee's facilities in streets of
City."
It is in compliance with these provisions that tins Manual is developed.
B. Compliance With Laws.
All Work performed by SDG&E pursuant to this Manual shall be accomplished in
accordance with the ordinances, rules and regulations of City, now or as hereafter
adopted, consistent with such rules and regulations as are promulgated under state law, or
order of the California Public Utilities Commission or other governmental authority
having jurisdiction.
C. Approval by City Council.
Pursuant to Section 7(a) of each Ordinance, this Manual must be approved by the Chula
Vista City Council before it becomes effective.
Section IV - Definitions
Whenever words or phrases are used in this Manual they shall have the respective
meanings assigned to them in the following definitions:
(a) The word "Work" shall mean an action to constmct, erect, install, maintain, repair, or
replace electric or gas facilities including pipelines, poles, wires, conduits and
appurtenances thereto in, upon, along, across, under or over the public right-of-way, and
shall also include Excavation. The word "Work" shall not apply to actions such as meter
reading, switching, locating, marking, or patrolling of utility facilities for which the City
has not consistently received notification in the past and which do not have any
significant impact on traffic flow within the City. The word "Work" shall also exclude
the installation of cable in a conduit installed for service by an applicant if such cable
installation does not have any impact on traffic flow, pedestrian access and flow, parking
in a commercial area, or bicycle flow.
(b) "Excavation" or "Cut" shall mean any operation in which earth, sand, gravel, rock,
asphalt, concrete, or other materials in the ground are moved, by using tools for grading,
trenching, digging, ditching, drilling, augering, tunneling, cable or pipe plowing, or other
similar activity.
(c) "Emergency Work" shall mean any Work that is urgent in nature, and is initiated so
that the City and SDG&E can provide the necessary customer service to the residents and
businesses within and surrounding the City. For purposes of this Manual, Work that is
"urgent" in nature shall be limited to Wotk that is necessary to"correct an interruption or
to avoid an imminent interruption of gas or electric service, or that must be performed for
safety reasons. This Work will be completed within a short time frame, with SDG&E
providing the City with notification as soon as possible but not to exceed two business
days after the Work is performed. SDG&E will not be required to obtain a permit or pay
inspection or permit fees for Emergency Work.
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(d) The phrase "Minor Work" shall mean any utility Work performed by SDG&E
provided that such Work includes less than 150 feet of excavation, is less than 7 days in
duration, does not require trench shoring, is not constructed on a road wider than two
lanes and is not near a signalized intersection. Any Minor Work that ultimately extends
beyond these parameters (e.g., continues 7 days or longer, entails trench shoring, etc.)
shall become Ordinary Work, as defined below. SDG&E will notify Engineering and
PWOPSlInspection of the scope of the Work at least two business days prior to
commencing Minor Work. A Standard Traffic Control Plan will be submitted if Work
impacts the safe flow of vehicular or pedestrian traffic. The City shall approve or amend
the standard Traffic Control Plan for Minor Work within two business days of receiving
notification. If SDG&E has followed the "Notice Procedures" set forth in Section VII
below and has not received a response from the City within two business days, SDG&E
shall be allowed to proceed with the Minor Work. SDG&E shall not be required to
obtain a Utility Permit or pay permit fees or inspection fees for Minor Work.
(e) The phrase "Ordinary Work" shall mean any Work that includes excavation of 150
feet or more, lasts 7 days or longer in duration, or requires trench shoring. Ordinary Work
also includes Work on roads wider than two lanes or near signalized intersections. These
projects may also require coordination between another utility or governmental agency;
or be conducted at unusual times. SDG&E shall apply for a City Utility Permit prior to
commencing Ordinary Work and submit a standard Traffic Control Plan for review and
approval at least 5 business days prior to beginning construction. If SDG&E has
followed the "Notice Procedures" set forth in Section VII below and has not received a
response from the City within five business days, SDG&E shall be allowed to proceed
with the Ordinary Work.
Section V - Inspections
The City retains its rights and authority to conduct inspections of SDG&E's Work over
which it has jurisdiction, including: structural and surface repair of Excavations;
placement of above-ground facilities as related to line of sight; obstruction of pedestrian
walkways; traffic control implementation; shoring and steel bridge plating; and all ADA
regulations.
Section VI - Term The administrative procedures included in this Manual are
effective from the last date of execution below and shall remain in effect throughout the
term of the Franchises. Pursuant to Section 7(a) of the Ordinances, once each year
following adoption of this Manual, the City and SDG&E will review and update the
administrative practices contained in this Manual. Any revision to the Manual shall be
subject to approval by the Chula Vista City Council.
Section VII - Notification
,.,-~ .'--.
· Minor Work - At least two business days prior to performing Minor
Work, SDG&E will provide to the City notice of the Work to be
performed. The City will be notified of Minor Work by fax and by
electronic mail.
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· Ordinary Work - Prior to performing Ordinary Work, SDG&E will
provide to the City notice of the Work to be performed in the form of a
Utility Permit application and advise the City of the circumstances and
magnitude of the Work. SDG&E will submit construction drawings,
detailed standard Traffic Control Plans, if needed, and other deviations
from standard procedures such as alternative working hours, as part of its
application for a Utility Permit. SDG&E will apply for the business
permit at least 5 days prior to commencing construction. The City will
notify SDG&E of any special permit requirements within 3 business days
of SDG&E applying for the Utility Permit and return to SDG&E an
approved Utility Permit within 5 business days of receiving application.
. Emergency Work - Notification of Emergency Work will take place as
soon as possible, but no later than two business days following such Work.
· Capital Improvement Projects - On an annual basis, SDG&E shall
advise the City of all upcoming major capital improvement projects
planned within the City for the next 12 months. SDG&E will malce
reasonable efforts to notify the City as soon as such Work is planned, with
the understanding that it is subject to change depending upon funding and
system load conditions. SDG&E will attempt to coordinate such Work
with planned municipal improvements. Additionally, the City will
provide SDG&E notification of street restoration and rehabilitation
projects.
. Notice Procedures - Unless otherwise provided, all notices to the City
required pursuant to this Section shall be deemed valid and sufficient if
faxed to the attention of Inspections at: 619-397-6254. Notices regarding
Minor Work and Ordinary Work must also be faxed to Engineering at
619-691-5171, and sent by electronic mail, in PDF format, to the
following e-mail addresses:(i)engpermits@.ci.chula-vista.ca.us; (ii)
pwinspections@ci.chula-vista.ca.us; and (iii) PWFrontCounter@ci.chula-
vista.ca.us. Traffic control plans and construction plans will be delivered
via fax, mail or hand delivery to the Engineering Permits Section. Notice
shall be deemed given as of the date notice is received by the City.
Section VIII - Traffic Control
For all Work within the public right-of-way, SDG&E will abide by appropriate traffic
control standards (Traffic Control Plan) for the safe movement of traffic and pedestrians
upon highways and streets, in accordance with the State Vehicle Code and pursuant to the
State of California Manual of Traffic Control and the Work Area Traffic Control
Handbook (WATCH).
Any deviation from the WATCH traffic control plans will require City approval.
Reference to any of the stated traffic manuals as part of the notice of intent to commence
Work is appropriate and acceptable. Notice will be provided in accordance with Section
VII. The City Engineer and/or the Director of Public Works Operations shall have the
right to require changes to the traffic controls based upon actual field conditions.
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SDG&E will be required to use ramped steel plates in streets where the speed limit does
not exceed 40mph. In streets with speed limits in excess of 40mph, SDG&E and City
shall work cooperatively to identify the appropriate installation of steel plates. SDG&E
shall use steel plates with a dmable, non-skid surface. The City will not unre::tsonably
restrict SDG&E' s use of steel plates, except in cases in which the use of steel plates
longitudinally within a travel lane creates a potential hazard. SDG&E's notification to
the City as outlined in Section VII above, shall indicate the thickness of all trench plating
to be used. In no case shall steel plates be left in place for more than 5 calendar days
without the prior written approval of the City Engineer.
Section IX - Street and Sidewalk Repair and Adjustment of At-Grade
Facilities
The City has the right to expect that any Excavation in a right-of-way by SDG&E will be
restored to a usable manner within a reasonable time period, as specified by the Standard
Specifications for Public Works Construction. For those sections of the public right-of-
way excavated by SDG&E, SDG&E will repair or replace such section of the right-of-
way to an equal or better condition and wananty such repair for the design life of the
street. Traffic signal loops damaged by SDG&E during such Excavations shall be
restored within five (5) days of completion of work at the site.
Upon notice by City to SDG&E, SDG&E shall begin repairs within thirty (30) days on
any permanent trench repair or at grade facility that settles below the adjacent
undisturbed pavement or becomes a safety hazard. Upon receiving notice from City
regarding any at-grade facilities that are not compliant with ADA requirements, SDG&E
shall promptly begin to make repairs according to SDG&E and ADA standards.
SDG&E will cooperate with the City to avoid, where possible, excavation of any fully
resurfaced street for a three-year period or surface-treated streets for one year. SDG&E
shall be granted exemptions to ensure that the health and safety of its employees and the
general public, as well as system reliability, are not negatively impacted by such a
moratorium. Such exemptions include, but are not limited to, performance of Emergency
Work, work initiated by municipal improvement projects, the installation of new
customer service, and work mandated by City, State or Federal requirements.
Section X - Graffiti Removal
SDG&E will use reasonable efforts to work with the City's Director of Public Works
Operations and SDG&E' s contractor to remove graffiti in accordance with the City's
Graffiti Ordinance.
Section XI - Log of SDG&E Activities in City Righf.'of-Way
SDG&E shall submit a quarterly report of SDG&E's activities within City of rights-of-
way that required notification by SDG&E to the City's PWOPS Construction Inspection
Section as defmed in Section VII.
Section XII - Utility Undergrounding Program
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Chapter 32 of Title IS of the Chula Yista Municipal Code (CYMC) outlines the City's
regulations associated with the undergrounding of utilities. The regulations outline the
City's and the utility companies' obligations and responsibilities and the process of
district formation. City Council Policy Number 585.01 also outlines the City's policy on
the "Use of Utility Funds for Underground Conversion of Private Service Laterals." The
process of District formation and private property conversion shall be executed in
accordance with CPUC Regulations, the CYMC, the City Council Policy, the MOU and
SDG&E Rule 20A
Section XIII - Dispute Resolution
If, during the term of this Manual, a difficulty is encountered, related to the terms of the
Manual, which cannot be settled by the City Engineering Staff and SDG&E Construction
Management staff, it shall become the responsibility of the City Engineer and SDG&E's
Public Affairs to promptly conclude the dispute with a reasonable solution.
IN WITNESS WHEREOF, the Parties have executed this Manual of
Administrative Practices by their duly authorized representatives as of the last date of
execution below.
CITY OF CHULA YISTA, a chartered Dated:
municipal corporation
By:
Stephen C. Padilla
Mayor, City of Chula Yista
Attest:
Approved as to form:
-
Susan Bigelow, City Clerk
-
Ann Moore, City Attorney
,.......
SAN DIEGO GAS & ELECTRIC Dated:
COMPANY, a California corporation _
BY~~,,_ .\'{:'~~
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