Resolution No. 4779
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RESOLUTION NO. 4779
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A SECOND
CONTRACT BY AND BETWEEN BETHLEHEM STEEL CORPO-
RATION AND THE CITY OF VERNON WHICH PROVIDES
FOR ELECTRICAL SERVICES
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WHEREAS, the City of Vernon in Ordinance No. 905
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provided that an individual customer may enter into a contract
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for electrical services if there are special circumstances which
9 would affect its demand of electrial energy; and
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WHEREAS, the City of Vernon and Bethlehem Steel Corpo-
ration had entered into an agreement pursuant to Resolution No.
4754 to provide electrical services and said agreement will
expire on March 20, 1981; and
WHEREAS, Bethlehem Steel Corporation has requested
the City of Vernon to enter into a second contract to provide
electrical services at a special contractual rate; and
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WHEREAS, the City of VernOn has offered to enter into
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a second 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 and will recover the City of Vernon's full costs in
providing said services.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
~HE CITY OF VERNON AS FOLLOWS:
SECTION 1: That the City Council of the City of Vernon
26 hereby finds and determines that the recitals contained herein-
27 above are true and correct.
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SECTION 2: That the City Council of the City of Vernon
1 hereby approves the execution of the Contract which is attached
2 hereto as Exhibit "A" and incorporated herein as though fully
3 set forth at length and authorizes the Mayor and the City Clerk
4 to execute said Agreement for and on behalf of the City Council
5 of the Ci ty of Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
7 shall certify to the passage of this Resolution and thereupon
8 and thereafter the same shall be in full force and effect.
9 APPROVED AND ADOPTED this 17th day of March, 1981.
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BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 4779
, was duly adopted by the City Council
of the City of Vernon, and was approved by the Mayor of said
City at a regular meeting of the City Council held on Tuesday,
March 17
, 19 81.
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BRUCE V. HALKI::NHORST, City Clerk
( SEAL)
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SECOND
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 March
1981
BY AND BETWEEN
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "City")
4305 Santa Fe Avenue
Vernon, CA 90058
AND
BETHLEHEM STEEL CORPORATION
(hereinafter referred to as
"Bethlehem Steel")
Pacific Coast Division
3300 East Slauson Avenue
Vernon, CA 90058
RECITALS
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 for
electrical energy; and
WHEREAS, the City and Bethlehem Steel had entered into an
agreement pursuant to Resolution No. 4754 to provide electrical services
and said agreement will expire on March 20, 1981; and
WHEREAS, Bethlehem Steel has requested the City to enter into
a second contract to provide electrical services at a special contractual
rate; and
EXHIBIT "A"
WHEREAS, Mr. Lewis R. Adams, Director of Water and Power, has
submitted a report indicating that a special contract rate in accordance
with said restrictions would reimburse to the City all costs associated
with providing said services to Bethlehem Steel; and
WHEREAS, the City has offered to enter into a second contract
to provide electrical services to Bethlehem Steel at a special rate which
will reflect Bethlehem Steel's reduced demand for energy during "on-peak"
periods and will recover the City's full costs in providing said services.
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 ~anner which will result in decreased electrical demand and energy needs
during the City's "on-peak" time periods.
SECTION 2: "On-Peak" 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. 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 qbserved on the following Monday.
SECTION 3: Billing Demand.
The billing demand 'shall be the kilowatts of maximum "on-peak"
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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 City, 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 City agrees to make the following charges
during the term of this Agreement.
Demand Charge:
Per Heter
Per Month
First 11,200 KWS or less of billing
demand
$100,000.00
All excess KWS of billing demand, per KW
6.913
Energy Charge (to be added to Demand Charge) :
All KWH, per KWH
2.5l0~
Minimum Charge:
The monthly minimum charge shall be the monthly demand.
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.
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Power Factor Adjustment:
The charges will be adjusted each month for reactive
demand. The charges will be increased by twenty cents
(20t) perkilovar 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 supplLed 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 ad-
justments will be made for a temporary discontinuance of service. The
customer prior to resuming service, after such service was discontinued,
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 coinci?e
with Edison Company's monthly billing meter reading times and dates for
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IN WITNESS WHEREOF the parties hereby have executed this
Contract, or caused it to be executed as of the day, month and year
first above written.
CITY OF VERNON
By r- c~...z.,~
eonis C. Mal
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ATTEST:
By
Bruce V. Malkenhorst, City Clerk
BETHLEHEM STEEL CORPORATION
By
APPROVED AS TO FORM:
CITY ATTORNEY
By
David B. Brearley
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