Resolution No. 4754
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RESOLUTION NO. 4754
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
,OF VERNON APPROVING THE EXECUTION OF A CONTRACT
BY AND BETWEEN BETHLEHEM STEEL CORPORATION
AND THE CITY OF VERNON WHICH PROVIDES FOR
ELECTRICAL SERVICES
WHEREAS, the City of Vernon in Ordinance No. 905
provided that an individual customer may enter into a contract
for electrical services if there are special circumstances which
would affect its demand of electrical energYi and
WHEREAS, Bethlehem Steel Corporation has requested
the City of Vernon to enter into a contract to provide electrical
services at a special contractual rateiand
\iVHEREAS, the City of Vernon has offered to enter into
a contract to provide electrical services to Bethlehem Steel
Corporation at a special rate which will reflect Bethlehem
Steel Corporation's reduced demand for energy during "on-peak"
periods.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: That the City Council of the City of Vernon
21 hereby finds and determines that the recitals contained herein-
22 above are true and correct.
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SECTION 2: That the City Council of the City of Vernon
hereby approves the execution of the Contract. which is attached
hereto as Exhibit "A" and incorporated herein as though fully
set forth at length and authorizes the Mayor and the City Clerk
to execute said Agreement for and on behalf of the City Council 0
the City of Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
2 shall certify to the passage of this Resolution and thereupon and
3 thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this l6th.day of September, 1980.
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ATTEST:
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BRUCE'V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES )
ss.
4 I, BRUCE V. MALKENHORST, City Clerk of the City ot
5 Verno.n, do hereby certify that the foregoing Resolution, being
6 Resolution No. 4754 , was duly adopted by the City Council
7 of the City of Vernon, and was approved by the Mayor of said
8 City at a regular meeting of the City Council held on ~uesday,
September 16
, 19' 80.
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BRUCE V. ~~LKENHORST, C~ty Clerk
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CONTRACT FOR ELECTRICAL SERVICE
THIS AGREEMENT is made, entered into and executed in
duplicate, and to be performed in Vernon, California as of the 20th
day of September, 1980
BY AND BETWEEN
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "City")
AND
BETHLEHEM STEEL CORPORATION
Pacific Coast Division
3300 East Slauson Avenue
Vernon, California (hereinafter
referred to as "Bethlehem
Steel" )
RECITALS
WHEREAS, the City of Vernon in Ordinance No. 905 provided
that an individual customer may enter into a contract for electrical
service if there are special circumstances which would affect its
demand for electrical energy; and
WHEREAS, Bethlehem Steel has presented to the City of Vernon
facts demonstrating that special circumstances exist at this time
which affect its demand for electrical energy; and
WHEREAS, Bethlehem Steel's special circumstances have been
a substantial reduction in the use of their productive capacity within
its plant caused by the current recession; and
WHEREAS, Bethlehem Steel has proposed operating conditions
which would decrease the use of the productive capacity in its plant
E;<HjfJIT~L-Jt
during "on-peak" time periods; and
WHEREAS, Bethlehem Steel has indicated that if it decreased
its use of power during "on-peaklJ time periods, the City could decrease
its cost of supplying said power; and
WHEREAS, the City of Vernon agrees that it will reduce its
cost of supplying power to Bethlehem Steel if Bethlehem Steel restricts
its use of electrical power during lJon-peaklJ time periods; and
WHEREAS, Bethlehem Steel has requested the City to enter into
a contract to provide electrical services at a special contractual
rate which. would take into consideration the City's cost savings
in supplying power during off-peak time periods; and
WHEREAS, Mr. Lewis Adams, Director of Utilities, has sub-
mitted a report indicating that a special contract rate in accordance
wi th said restric.tions would reimburse to the City all costs
associated with providing said services to Bethlehem Steel.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS,
PROMISES AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO
AGREE AS FOLLOWS:
SECTION 1: Special Contract Operating Conditions.
Bethlehem Steel hereby agrees to operate its facilities in
such a manner which will result in decreased electrical demand and
energy needs during the City of Vernon's lJon-peaklJ time periods.
SECTION 2: IJOn-PeaklJ Periods Defined.
"On-peak" period is defined as weekdays from 12 noon to
6:00 p.m. Pacific Standard Time commencing on May 15th and ending on
November 14th of each year, and weekdays from 5:00 p.m. to 10:00 p.m.
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Pacific Standard Time commencing November 15th and ending on May 14th
of the following year, each exclusive of holidays. Holidays include
New Year's Day, Washington's Birthday, Memorial Day, Independence Day,
Labor Day, Veteran's Day, Thanksgiving Day, and Christmas. Any
holiday falling on a Sunday shall be observed on the following Monday.
SECTION 3: Billing Demand.
The billing demand shall' be the kilowatts of maximum "on-peak"
demand but not less than fifty percent (50%) of the highest maximum
"on-peak" demand established during the time this contract is in effect.
SECTION 4: Maximum Demand.
The maximum demand in any month shall be measured maximum
average kilowatt imput, indicated or recorded by instruments to be
supplied by Vernon, during any 30-minute metered interval in the month.
Where demand is intermittent or subject to violent fluctuations, a
5-minute interval may be used.
SECTION 5: Rates.
Bethlehem Steel agrees to pay the following rates during the
terms of this Agreement and Vernon agrees to make the following charges
during the term of this Agreement.
Demand Charge:
First 11,200 KWS or less of billing
demand
Per Meter
Per Month
$77,425.60
All excess KWS of billing demand, per KW
6.913
Energy Charge eto be added to demand charge):
All KWH, per KWH
2.5l0jt
Minimum Charge:
The monthly minimum charge shall be the monthly demand.
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Energy Cost Adjustment Billing Factor:
All energy used shall be charged the then current
energy adjustment billing demand factor adopted by
resolution of the City Council. Said energy ad-
justment billing demand factor shall be applied to
the energy consumed by Bethlehem Steel in the same
fashion as if Bethlehem Steel were still part of
the A-8 classification.
Power Factor Adjustment:
The charges will be adjusted each month for reactive
demand. The charges will be increased by twenty cents
(20ft) per kilovar of maximum reactive demand imposed on
the utility in excess of twenty percent (20%) of the
number of kilowatts of billing demand.
The maximum reactive demand shall be the highest co-
incident measured maximum average kilovar demand, in-
dicated or recorded by metering to be supplied by the
utility during any 30-minute metered interval in the
month. The kilovars shall be determined to the nearest
unit. A device will be installed on each kilovar meter
to prevent reverse operation of the meter.
SECTION 6: Voltage Service and Voltage Discount.
Service will be supplied only at 66,000 volts of service and
charges before adjustments will be reduced by five percent (5%) for
all energy delivered and metered at 66,000 volts.
SECTION 7: Temporary Discontinuance of Service.
Where the use of energy is seasonal or intermittent, no
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adjustments will be made for a temporary discontinuance of service.
The customer prior to resuming service, after such service was dis-
continued, will be required to pay all charges which would have been
billed if the service had not been discontinued.
SECTION 8: Monthly Billing Date.
The monthly billing meter reading times and dates shall
coincide with Edison Company monthly billing meter reading times and
dates for the Vernon system purchased power.
SECTION 9: Energy Cost Adjustment.
The rates above are subject to adjustment as provided for
in Part G of the Preliminary Statement. The applicable energy cost
and adjustment billing factors will be applied to KWH's billed pursuant
to this contract.
SECTION 10: Term of Contract.
The initial term of this contract shall be for six (6) months
from September 20, 1980, the effective date of said contract. However,
in the event that the Federal Energy Regu1atory.Cornrnission or Southern
California Edison Company takes any action which would increase the
cost to the City of Vernon then the City of Vernon shall be permitted
to adjust the rates provided for above in order to recover any such
additional increases in costs.
SECTION 11: Special.Conditions.
All conditions of the Vernon A-8 sChedule as authorized by
the City of Vernon Ordinance Nos. 895, 898 and 905, except where in-
consistent with any of. the conditions provided for herein shall be in
effect. In the event there is a dispute concerning the interpretation
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of any of the terms or conditions of this contract or its relationship
to the Vernon A-a schedule, said dispute shall be resolved by agreement
of the parties but under no circumstances shall .the City of Vernon be
obligated to apply a rate for services which will not reimburse the City
of Vernon for all of its costs associated with providing said service
to Bethlehem Steel.
IN WITNESS WHEREOF the parties hereto have executed. this
contract, or caused it to be executed as of the day, month and year
first above written.
CITY OF VERNON
By
Leonis C. Malburg, Mayor
ATTEST:
By
Bruce V. Malkenhorst, City Clerk
By
BETHLEHEM STEEL CORPORATION
J2F~k
G/:A/E/U7L p~Hn$JNG
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APPROVED AS TO FORM:
CITY ATTORNEY
By
OavidB. Brearley
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