Resolution No. 1289
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1 RESOLUTION NO. 1289
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON EXERCISING
ITS OPTION CONTAINED IN THAT CERTAIN LEASE AGREEMENT BETWEEN THE
3 CITY OF VERNON AND THE SOUTHERN CALIFORNIA EDISON COMPANY, ,LTD.
DATED February 23, 1937.
THE CITY COUNCIL OF THE CITY OF VERNON DOES RESOLVE AS FOLLOWS:
THAT, WHEREAS, the Southern California Edison Company,
Ltd. has heretofore filed an application with the Railroad Com-
mission of the State of California, bearing application No. 26791
to have determined by said Commission that public convenience and
necessity require the Southern California Edison Company, Ltd.,
to supply alternating current electric service to all of its
consumers with a unified system frequency of sixty cycles, and
said CommiSSion has rendered its decision No. 38090 authorizing
such change of frequency subject to the terms and conditions
set forth therein, and
WHEREAS, the Southern California Edison Company, Ltd.
by letter dated August 24, 1945 addressed to the City of Vernon,
did notify and advise the City of Vernon that it desired to
change the cycle frequency on the electric generating and dis-
tributing system of the City of Vernon, which generating and
distributing system of the City of Vernon is being operated
by Southern California Edison Company, Ltd., under a lease agree-
ment dated the 23rd day of February, 1937; and
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WHEREAS, said Southern Californfa Edison Company, Ltd.
did thereafter on January 3, 1946 by letter addressed to said
City of Vernon, signed by W. N. Johnson, Manager, Frequency-
Change Department of saiq Southern California Edison Company,
Ltd., advise the City of Vernon that in the event said City
exercised its option to have its system cut-over, the Edison
Company would absorb all expenses incurred in cutting over the
city and consumer-owned equipment to sixty cycle operation, no
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1 no portion of such expense to be charged to the City of Vernon
2 or to the capital accounts which are subject to possible re-
3 imbursement by the City upon the termination of said lease
4 agreement; and
5 WHEREAS, under the terms and conditions of said lease
6 agreement the City of Vernon has the option to determine as to
7 whether or not such change of frequency shall be made to the
8 generating plant and distributing system of the City of Vernon:
9 NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. That the City Council of the City of Vernon
does hereby in the name of the City of Vernon exercise the option
contained in that certain lease agreement between the City of
Vernon and the Southern California Edison Company, Ltd. dated
February 23, 1937, and elects to have its elatric generating
plant and equipment and its electric distributing system covered
by said lease agreement reconstructed and changed so as to
Supply the consumers supplied by said system with sixty cycle
electric energy in the place and stead o.f the fifty cycle energy
presen~ being supplied, subject to the following terms and
conditions:
1. That the Southern California Edison Company, Ltd.
make all changes necessary and pay for and/or absorb all
costs and expenses in such cycle frequency change to sixty
cycle, including specifically, but not limiting the gener-
ality thereof, all costs and expenses of reconstructing,
changing, altering and/or adding to the electric generat-
ing plant and distributing system of the City of Vernon
and for said purpose, that no portion of such cost or
expenses shall be charged to the City of Vernon or other
capital accounts which are subject to possible reimbursement
by the City of Vernon under the lease agreement between the
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City of Vernon and Southern California Edison Company,
Ltd. dated the 23rd day of February, 1937.
2. That the consumer owned equipment supplied by
the distributing system of the, City of Vernon be re-
constructed, changed and/or added to so as to operate at
a sixty cycle frequency under the same terms and condi-
tions as such changes made elsewhere on the system of the
Southern California Edison Company, Ltd., and without cost
charge or expense to the City of Vernon.
3. That the Southern California Edison Company, Ltd.,
secure by proper order or decision of the Railroad Com-
mission of the State of California, authority in form and
.
substance satisfactory to the City of Vernon authorizing
Southern California Edison Company, Ltd., to make the
aforesaid changes in said electric generating plant and
distributing system of the City of Vernon and equipment
of consumers supplied by said distributing syste~ under
the terms and conditions hereinbefore set forth.
Section 2.
The City Clerk of the City of Vernon
is hereby directed to cause a certified copy of this resolution
to be delivered to the Southern California Edison Company, Ltd.,
and also cause a certified copy of this resolution to be delivered
to the City Electrical Engineer, of the City of Vernon.
Section 3. The City Clerk is hereby directed to
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
ADOPTED AND APPROVED,
February 19, 1946.
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1 S~TE OF CALIFORNIA )
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2 COUNTY OF LOS ANGELES )
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I, T. J. FURLONG, City Clerk of the City of Vernon,
do hereby certify that the foregoing Resolution No. 1289, was
duly adopted by tpe City Council of the City of Vernon, and
6
approved by the Mayor of said City at a regular meeting of the
City Council held on Febr~ry 19, 1946~
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4.
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JIr. W.o. Mullendo" I P1'8s1dent
Southern Qa I1tornla Bdison Oompany,.
Edison Building,
Los Angeles,Oalitornia.
Dear )I~.
:t am herew1th
Resolut-.on 10. 1889, adopted by-the Oity Oouncil of the Oit1
or Vernon on Peb:rua17 19, 1946, exercising
lease agreement be,tween 01 ty ot Yernon and
Edison Oompany, Ltd. regaeding ohange in cyole frequenoy.
City of Vernon
Vernon, California
Attention Mr. T. J. Furlong
Dear Mr. Furlong,
This is in reference to your letter of September 6th,
1945 regarding the change over from 50 oyc,le to 60 cyole
energy by the Southern Califor:cia Edison vompany.
The papers were referred to Stanley W. Guthrie,
attorney for the Assooiation, for review. I am returning
herewith all the papers transmitted to me and in addition
thereto the original signed opinion of Mr. Guthrie and also
of Mr. W. C. Mullendore, president of Southern California
Edison Company confirming the powers of W. N. Johnson and a
copy of the resolution that Mr. Guthrie thinks should be
adopted by the oity.
Yours very truly,
VERNON" INDUSTRIAL DEV. ASSO.
'-'\,.
CRS/rs
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OFFICERS AND DIRECTORS
BRUCE F. BROWN. PRESIDENT
JOS. CEREGHINO. VICE.PRESIDENT
JOHN B. LEONIS. JR. SECRETARy.TREAsURER
FRED ISAACS. DIRECTOR
A L. LUNDIN. DIRECfOR
C. R SMURR MANAGER
HASKINS & SEllS. AUDITORS
3 7 1 5 SANTA F E AVENUE
VERNON. CALIFORNIA
TELEPHONE LAFAYETTE 6520
February 18, 1946
IN REPLY
REFER TO
VERNON
INDUSTRIAL
DEVELOPMENT ASSOCIATION
. ,
LAW 0 PFICES
STANLEY W. GUTHRIE
HUGH W. DARLING
EDWARD S. SHATTUCK
GUTHRIE, DARLING & SHATTUCK
737 PACIFIC MUTUAL BUILDING
WILLIAM H. EILERS
LOS ANGELES 14
February 15, 1946
Vernon Industrial Development Association
3713 Santa Fe Avenue
Vernon, California
Attention: Mr. C. R. Smurr, Manager
Gentlemen:
In reply to your request for our opinion relative
to the proposal of Southern California Edison Company to
change frequency on the Vernon generating and distributing
plant's system from 50 to 60 cycle energy and the effect
thereof on the City of Vernon by reason of the outstanding
Lease Agreement with said company, we wish to advise as
follows:
We have checked the opinion rendered by the Rail-
road Commission of the State of California under their
Decision No. 38090, Application No. 26791 of Southern Cali-
fornia Edison Company, Ltd., for permission to change frequency
over their system and find that the Edison Company has been
given permission to make such change of frequency from 50 to 60
cycle under certain terms and conditions therein set forth, and
that the Commission has retained jurisdiction in the matter in
order to determine such other factors as may become involved in
connection with such change.
In the order issued in connection with such opinion,
Edison Company was authorized and directed "to assume in addi-
tion to the conversion costs of its own equipment, the direct
costs of adapting consummers' appliances for proper operation
at a frequency of 60 cycles, provided that when a consummer
desires to replace the appliances with new equipment or the
remaining life of the appliances does not justify adjusting
same, the consummer shall pay an amount to be determined in ac-
cordance with the principles to be established by supplmental
order herein."
Section 9 of the Lease Agreement between the City of
Vernon and Southern California Edison Company, Ltd., provides,
as follows:
Vernon Industrial Development Association
Page Two - February 15, 1946
"It is distinctly understood and agreed that if
Edison, its successors or assigns, herea~ter changes
the cycle frequency under which it distributes its
electric energy in all or any part of Los Angeles
County, including any incorporated territory therein,
(excepting only where power at said changed cycle
~requency is wholesaled by Edison only), Edison will
immediately, at the option o~ Vernon, commence, and
thereafter proceed diligently until completed, to
reconstruct the generating equipment in the Vernon
generating plant so that electricity will be generated
thereat at the changed cycle ~requency, and to make a
corresponding change in the cycle frequency under which
it distributes electric energy to all consumers within
the City of Vernon, under the same terms and conditions
as such change is made elsewhere on the system of Edison,
its successors or assigns, and subject to the same terms
and conditions as are herein provided for extensions,
additions, alterations and improvements made to the
leased property, and as set ~orth in Sections 7, 13 and
14 hereo~.iI
The proposed change in frequency will require Changes
in the generating plant of the City of Vernon, as well as eon-
summers' equipment. A question arises as to whether the
ehanges made to the generating plant will extend the life o~
the plant by reason of the necessary ehanges to various parts
of the operating equipment and as to whether by reason thereof
a portion of such costs should be charged against the City of
Vernon under the provisions applicable to payments to be made
by the City upon the termination of the Lease Agreement.
It is our understanding that this latter question has
been discussed by Mr. Carl Heinze, Consulting Engineer for the
City, with the officials of Edison Company, and that the Edison
Company now agrees that such ehanges to the generating equip-
ment will not extend the li~e of such equipment and the costs
thereof should be ehargeable to the Edison Company as an opera-
ting charge and no part thereof charged against the City upon
the termination of the agreement.
We also have examined the letter o~ W. N. Johnson,
Manager, Frequency Change Department, of Edison Company, dated
January 3, 1946, addressed to the City of Vernon, stating that
"in the event the City of Vernon exercise its option to have
its system cut over, Edison Company proposes to absorb the
expenses incurred in cutting over the City and consumer-owned
equipment; no portion of such expense being charged to the
capital accounts which are subject to possible reimbursement
by the City upon the termination of the lease." The under-
Signed, Stanley W. Guthrie, called Mr. Gail C. Larkin, Vice
President and General Counsel, to ascertain the authority of
W. N. Johnson to commit the Edison Company as above re~erred
, Vernon Industrial Development Association
Page Three - February 15, 1946
$
to and was advised that he had authority so to do and that
a letter to such effect would be forwarded confirming the
same as the act of Edison Company, the original of which
letter was received and is attached- hereto.
Although there is some ambiguity in the wording
of the lease agreement relative to the question of charge
against the City for alterations to the generating equipment,
it is our opinion that unless the life of said equipment is
extended by reason of such alterations that no charge is per-
missible against the City for such alterations. The referred
to letters of Edison Company denote their acquiescence therein,
and their discussions with Mr. Heinze indicate that they have
agreed with Mr. Heinze's conclusions that the life of the
plant would not be extended by such alterations.
Under the above referred to order of the Railroad
Commission and under the powers conferred upon them, said
Commission has authority and jurisdiction to allow or disallow
Edison Company to charge the costs of changing frequency
against consumers and others, and the question might be raised
by said Commission as to whether or not Edison Company should
pay the costs of alteration to the generating equipment.
Based on the opinion of Mr. Heinze and the acquiescence of
Edison Company therein, we are of the opinion that the facts
justify and recn:tire the pa~ent of these costs by Edison
Company. Mr. ~ail C. Larkln, Vice President and General
Counsel of Edison Company, has advised the writer orally
that in the event the matter became an issue before the
Railroad Co~~ission, Edison would contend that such costs be
borne by Edison Company.
Tne above referred to opinion of the Railroad
Commission (Decision No. 38090) does not contain any reference
to, or give any decision as to the situation in the City of
Vernon, or authorize Edison Company to pay the cost of change-
over on the City of Vernon leased plant and system, and we
believe that while we are inclined to the view that these costs
are chargeable to Edison, in the event the City elects to have
such change in frequency made such consent should be condition-
ed upon the payment and/or absorption of said costs by Edison
and the securing by Edison of an approval by the Railroad
Commission therefor by supplemental order.
We are enclosing herewith a suggested draft of a
resolution to be adopted by the City authorizing such change in
frequency to be used in the event the City elects to have such
change made, and to be changed, amended, or added to as the
City Attorney may deem advisable.
~ Vernon Industrial Development Association
Page Four - February 15, 1946
We are returning herewith your file as forwarded
to us.
In the event we can be of any further service in
connection with this matter, kindly advise us.
Yours very truly,
GUTHRIE, DARLING & SHATTUCK
SWG : PEJvI
BY.#-
Stanley W
SOUTHERN CALIFORNIA EDISON COMPANY LTD.
EDISON SUI LDING
W. C. MULLENDORE
LOS ANGELES,CALlFORNIA
PRESIDENT
February 8, 1946
Mr. Stanley W. Guthrie
Attorney at Law
737 Pacific Mutual Bldg.
523 West Sixth st.
Los Angeles-14, Calif.
Dear Mr. Guthrie:
~~. Larkin advises me that you are writing
an opinion in connection with the possible cut-over of
the City of Vernon from fifty to sixty cycles. He
advises me that you have called his attention to the
fact that the letter of January 3, addressed to the
City of Vernon, is signed by "We N. Johnson, Manager,
Frequency-Change Department", and that Mr. Johnson is
not an officer of the Company. I wish to confirm
Mr. Larkin's statement to you that Mr. Johnson was
authorized on behalf of the Company to write this
letter, which states in part:
"In the event the City of Vernon exercise
its option to have its system cut over, Edison
Company proposes to absorb the expense incurred
in cutting over the City and consumer-owned
equipment; no portion of such expense being
charged to the capital accounts which are subject
to possible reimbursement by the City upon the
termination of the lease."
Very truly yours,
WCM-H
President.
." ._-~ <'#01.
SOUTHERN CALIFORNIA EDISON COMPANY LTD.
EDISON BUILDING
LOS ANGELES,CAUFOR NIA
August 24, 1945
Ci ty of Vernon
4305 Santa Fe Avenue
Vernon, California
Gentlemen:
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Under date of July 27, 1945, the Railroad Commis-
sion of the State of California approved the Company's app-
lication to serve all of its customers at a uniform system-
wide frequency of six~y cycles, and accordingly issued an
order upon the Company to cease delivering fifty cycle energy
at the time sixty cycle energy is available.
The program and SCheduling of the cut-over areas
of the Company's system was based upon our ability to divide
the system for fifty and sixty cycle energy delivery and the
assumption that war, manpower and material procurement con-
ditions would permit starting field conversion in the numer-
ical order of areas as shown on Map Exhibit I attached. The
program called for starting field conversion in December, 1946,
with completion scheduled in the latter part of 1949.
In view of the earlier termination of the war than
was anticipated, it is now desired to accelerate the starting
date of this program by taking advantage of the lower demands
for electric energy now being experienced during the reconver-
sion of industry and commerce from war to peace. The lower
demands for electric energy make it possible to isolate certain
of our 66 kv lines for the delivery of sixty cycle energy, in
limited amounts, into the Los Angeles County areas as shown on
Map Exhibit II attached. This will permit delivering sixty
cycle energy from our third Boulder line into our Chino sub-
station and from there to our LagunaBell and Eagle Rock sub-
stations with a tie to our Long Beach steam plant.
As there are a number of postwar projects now planned
for immediate construction in this area, as well as a reconver-
sion of plants now served from our 66 kv lines out of our Laguna-
Bell substation, it is desired to supply these plants with sixty
cycle energy at this time so as to avoid having to frequency-
change these projects at a later date, which would not only be
costly but would slow down our whole program of conversion.
City of Vernon
2.
August 24, 1945
In the event City desires to exercise its option
to have the diesel plant and distributing system cut-over
to sixty cycles, we are of the opinion that upon the making
of such determination, the programming of the cut-over should
be carefully arranged between City and the Company so that
service to consumers within the City of Vernon, through the
facilities. of City, will not be at any time subject to serious
interruption. In this connection, it is our belief that
City'S diesel plant should first be cut-over to operate at
sixty cycles and that orders be placed with manufacturers for
the necessary parts.
Yours very truly,
Vv'NJ":_ S
att'd - 2
~~7~ ~
Vi. ~..J ohnson, Manager
Frequency-Change Department
J. B. LEON IS. MAYOR
OFFICERS
TELEPHONES
T. J. FURLONG. CLERK
F. G. FRENCH. TREASURER
THOMAS V. CASSIDY. CITY ATTORNEY
FRANCIS BATES. CITY ENGINEER
ERNEST GILES, CHIEF OF POLICE
DR. H. F. BECKER. HEALTH OFFICER
C. B. HUBBARD. POLICE JUDGE
F. H. DONNELLY, FIRE CHIEF
.
CITY~. COUNCIL
C. H. MAILLIARD
C( W. TROWBRIDGE
G. H. ANDERSON
J. J. POXON
CITY CLERK LAFAYETTE 8878
POLICE DEPT. 8964
ENGR. DEPT. 2415
FIRE DEPT. KIMBALL 2522
HASKINS & SELLS. AUDITORS
G. A. ANDERSON. DEPUTY CITY CLERK
CITY HALL
4305 SANTA FE AVENUE
IN REPLY REFER TO:
VERNON"'1.1., CALIFORNIA
January 19, 1946
Vernon Industrial Development Association
3713 Santa Fe Avenue
Vernon, Oalifornia.
Attention: O.R.Smurr
Manager
Gentlemen:
At a meeting of the Oity Oounoi1, held on January 15,
1946, the attaohed oopy of a comm1\mioation from Mr. W. N. Johnson,
Manager of the Frequency-Ohange Department of the Southern Oalifornia
Edison Company was referred to your Association.
is a supplement to their oommunication forwarded to you about the
lhis communioation
4th of September, 1945.
Yours very truly,
~
.
COpy
'"
SOUTHERN CALIFORNIA EDISON COMPANY, LTD.
Edison Building
Los Angeles 53, California
January 3, 1946
City of Vernon
4305 Santa Fe Avenue
Vernon, California
Gentlemen:
Request has been made for a supplemental statement
to our letter of August 24, 1945, covering the accounting proced-
ure proposed to be followed by Edison Company in so far as Vernon
accounts are concerned.
In the event the City of Vernon exercise its option
to have its system cut over, Edison Company proposes to absorb
the expense incurred in cutting over the City and consumer-owned
equipment; no portion of such expense being charged to the
capital acco~nts which are subject to possible reimbursement by
the City upon the termination of the lease.
, There are several major changes to be made at the
Diesel plant, incl~ding the installation of new field coils at
an estimated cost of $96,500. In addition to the Diesel plant
Edison Company proposes to cut over all of the City and consumer-
owned equipment served by the Company at the time of cutover,
including the meters owned by the City.
It is understood that before any orders are placed
for the purchase of equipment, the recommendations of Company
engineers with respect to the major changes in the Diesel plant
shall be first approved by Mr. Heinze on behalf of the City.
Yours very truly,
Signed by
W. N. Johnson
W. N. Johnson, Manager
Frequency-Change Department
WNJ-H
COP Y