HomeMy WebLinkAbout9 Southwest Gas Contract Agenda Item # 9
Public Utility District
ACTION
To: Board of Directors
From: Kathleen Neus
Date: September 16, 2009
Subject: Consideration of a Contract with Southwest Gas
1. WHY THIS MATTER IS BEFORE THE BOARD
Board approval is required for expenditures in excess of $15,000.
2. HISTORY
Over the last year staff has been looking for opportunities for cost savings at the
District. It has been identified that a transition from propane to natural gas for heating
the District offices will provide a significant opportunity for savings.
3. NEW INFORMATION
Southwest Gas has informed the District that all costs associated with bringing natural
gas to the District complex will be borne by Southwest Gas Corp once the service
application contract (attached) is completed. The new gas line will cross from the
south side of Donner Pass Rd. into the building. Southwest Gas will also set the
meter at the building. Once the contract is signed, Southwest Gas needs 3-5 weeks
to schedule a crew and to complete the work.
The District is responsible for all internal piping work and equipment conversion from
propane to natural gas. This portion of the work is discussed in Board Item # 10.
4. FISCAL IMPACT
There is no fiscal impact associated with the installation of a natural gas service lateral
to the building.
There is a fiscal impact associated with the purchase of natural gas for heating needs.
Based upon 2009 dollars the District could realize up to a 50% reduction in the cost of
fuel estimated at $21,000.
5. RECOMMENDATION
Approve the contract with Southwest Gas Corporation to provide a natural gas service
and fuel to the District's Office Complex.
Michael D. Holley
General Manager
A SOUTHWEST GAS [ORPORATIOn OFFICE USE ONLY
w® CONTRACT FOR INSTALLATION OF NATURAL GAS Mtr. 4 Footage 140
PIPELINE FACILITIES-INGRESS AND EGRESS SR Code Tile No.
Work ork Request
Service Address 11570 Donner Pass Rd City or Location Truckee
Name of Applicant Truckee Donner Public Utility District Tract
Mailing Address PO Box 309 APN and/or Lot#s
City,State&ZIP Code Truckee,CA 96161 Email:
Daytime(or)Work Phone 530 587-3896 Evening(or)Home Phone
Appliances Agreed Input Total Input Main Service
Type of Service Rev/Rate To Be Installed Qtv- Cfh Ea. Cfh Allowance Allowance
❑ Residential 200/340 Space Heating, 12 50 600
❑ Single Family Vr Heating 5 150 750
❑Multifamily Range
❑Manufactured Home Clothes Dryer
® Commercial Fireplace
❑ Industrial Barbecue
❑Transportation Pool/Spa
❑ Other Heating, 2 630 1260
❑New Construction 2610 $ $
® Conversion (® Propane ❑ Oil ❑Electric)
Applicant will provide trench? Yes ❑ No
If trench is provided for joint use,check all that apply: []Cable []Telecommunications ❑Electric ❑Other
Notes:
Contract Conditions:
1. The Applicant, as owner or authorized agent for the owner, hereby requests Southwest Gas Corporation ("the Company")to install its natural gas
pipeline facilities to and upon the aforementioned premises,in accordance with the provisions of its Rules as filed with the California Public Utilities
Commission("Commission")having jurisdiction over the Company's operations,and hereby grants to the Company such rights of ingress and egress
as may be necessary or convenient to enable the Company to install,operate,inspect,maintain,repair and remove meters,gauges,pipelines,fittings
and regulators and all other equipment and apparatus which the Company may elect to install for the purpose of furnishing natural gas service to the
aforementioned premises or adjoining premises, or to make a survey of the number and type of appliances and equipment installed on the aforesaid
premises.No permanent obstructions will be placed over the pipeline.
2. The Applicant agrees to install and utilize the natural gas appliances and/or equipment indicated above.The justification of any applicable allowance
granted the Applicant is based on the usage of the installed appliances and/or equipment (indicated above). If the appliances and/or equipment
(indicated above)for natural gas service are not installed and utilized for residential service within six months or for nonresidential service within
three years,the Company may bill the Applicant for the cost of the Applicant's natural gas service and/or main line installation.
3. This Contract shall at all times be subject to such changes or modifications by the Commission as said Commission may from time to time direct in
the exercise of its jurisdiction.
4. The Applicant agrees to grant or otherwise provide to the Company,at no cost to the Company,easements and/or rights of way which are adequate,
in the opinion of the Company, for the location, installation, operation,maintenance and removal of the subject pipeline facilities. When required,
the Company will submit the appropriate easement and/or right of way forms to the owner for signature.
I have been informed by the Company of the applicant installation and design options whereby the installation and/or
design of natural gas pipeline facilities could be performed by a qualified contractor of my choice in accordance with the
Company's design, specifications and requirements.
(Check one.) (Check one.)
® I have elected to have the Company perform the installation.I hereby authorize the ® I have elected to have the Company design
installation of natural gas pipeline facilities and agree to pay any cost of installation in the installation.
excess of the allowable investment of the Company as defined in its filed rules and regulations. ❑ I have elected the applicant design option.
❑ I have elected the applicant installation option.
APPLICANT SOUTHWEST GAS CORPORATION
By Date By Date
❑ Owner or Authorized Agent ❑Builder Title
Form 334.0(0812008) 170--Word