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Resolution No. 4821 1 2 3 4 5 RESOLUTION NO. 4821 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING THE EXECUTION OF A THIRD CONTRACT SY AND BETWEEN BETHLEHEM STEEL CORPORATION AND THE CITY OF VERNON WHICH PROVIDES FOR ELECTRICAL SERVICES 6 ~.vHEREAS, the City of Vernon in Ordinance No. 911 7 provided that an individual customer may enter into a contract 8 for electrical services if there are special circumstances 9 which would affect its demand for electrical energYi and 10 WHEREAS, the City of Vernon and Bethlehem Steel 11 Corporation has entered into an agreement pursuant to Resolution 12 No. 4779 to provide electrical services and said ~greement 13 will expire on July IS, 1981; and 14 WHEREAS, Bethlehem Steel Corporation has requested 15 the City of Vernon to enter into a third contract to provide 16 electrical services at a special contractual ratei and 17 WHEREAS, Sruce V. Malkenhorst, Chief Executive Officer 18 of the Light .and Power Department, has submitted a report 19 indicatinq that a special contract rate in accordance with 20 certain restrictions would reimburse to the City of Vernon all 21 costs associated with providing said services to Sethlehem Steel 22 Corporationi and 23 WHEREAS, the City of Vernon has offered to enter into 24 a third contract to provide electrical services to Bethlehem 25 Steel corporation at a special rate which will reflect Bethlehem 26 Steel Corporation's reduced demand for energy during "on-peak" 27 periods and will recover the City of Vernon's full costs in 28 providing said services. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: That the City Council of the City of Verno 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 of the City of. Vernon. SECTION 3: That the City Clerk of the City of Vernon ~ shall certify to ,the passage of this Resolution and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 7th day of July, 1981. C. ATTEST: ~/~~ BRUCE V. MALKENHORST" City Clerk -2- 1 STATE OF CALIFORNIA ) ) SSe 2 COUNTY OF LOS ANGELES ) 3 4 I, BRUCE V. MALKENHORST, City Clerk of the City of 5 Verno.n, do hereby certify that the foregoing Resolution, being 6 Resolution No. 4821 , was duly adopted by the City Council 7 of the City of Vernon, and was approved by the Mayor of said 8 City ata regular mee,ting of the City Council held on Tuesday, 9 10 11 12 13 14 15 (SEAL) July 7 , 19'81. g~~~ BRUCE V. ~ffiLKENHORST, City Clerk 16 17 18 19 20 21 22 23 24 25 26 27 28 I I I I I Ii -3- THIRD CONTRACT FOR ELECTRICAL SERVICE THIS AGREEMENT is made, entered into and executed in duplicate originals, either copy of which may be considered and used as the original hereof for all purposes, and to be performed in Vernon, California as of the 15th day of .Tnly , 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 900S8 RECITALS WHEREAS, the City in Ordinance No. 911 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 energYi and WHEREAS, the City and Bethlehem Steel has entered into an agreement pursuant to Resolution NO. 4779 to provide electrical services and said agreement will expire on July 15, 1981i and EXHIBIT flb-J~"" \vlfEREAS, Bethlehe.m Steel has requested the City to enter into a third contract to provide el,ectrical services at a special contractual ratei and WHEREAS, Bruce V. Malkenhorst, Chief Executive Officer of the Light and Power Department, .has submitted a report indicating that a special contract rate in accordance with certain restrictions would reimburse to the City all costs associated with providing said services to Bethlehem Steeli and WHEREAS, the City has offered to enter into a third contract to Provide electrical services to Bethlehem Steel at a special rate which will reflect Bethlehem Steel's reduced demand for energy during "on-,peakll periods and will recover the City's full costs in providing said services. NOW, THEREFORE", IN CONSIDERATION OF THE r4UTUAL 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's "on-peak" time periods. -2- EXHIBIT If 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 S:OO p.m. to 10:00 p.m. Pacific Standard Time commencing November ISth 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 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. -3- EXHIBIT -A PER METER PER HONTH Demand Charge: First 6,000 demand KWS or less of billing $136,000.00 All excess KWS of billing demand, per KW $ 8.00 Energy Charge (to be added to Demand Charge) : All KWH, per KWH 4.411t Minimum Charge: The monthly minimum charge shall be the monthly demand. Energy Cost Adjustment Billing Factor: All enE:!rgy used shall be charged the then current energy adjustmE:!nt billing demand factor adopted by resolution of the City Council. Said energy adjustment 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 (20t) 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. Service will be supplied only at 66,000 volts of service. -4- EXHIBIT - ~r .... SECTION 7: Temporary Discontinuance ,of Service. Where the use of energy is seasonal or intermittent, no ad- justments will be made for a temporary discQntinuance 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 coincide with Edison Company's 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 PartG of the Preliminary Statement. The applicable energy cost and adjustment billing factors will be applied to K\'7H's billed pursuant to this Contract. SECTION 10: Term of Contract. This Contract ~hall be effective on July 15,1981 and shall continue through January 15, 1982. However, in the event that the Federal Energy Regulatory Commission or Southern California Edison Company takes any action which would increase the cost of providing -5- tXHIBIT....".--ft . .~~. said services to the .City, then the city 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 City Ordinance Nos. 895, 898, 905, and 911 except where inconsistent with any of the conditions provided for herein, shall be in effect. In the event there is a dispute concerning the interpretation of any of the terms or conditions of this Contract or its relationship to the vernon A-8 schedule, said dispute shall be resolved by agreement of the parties but under no circumstances shall the City be Obligated to apply. a rate for services which will not reimburse the City for all of its costs associated with providing said service to Bethlehem Steel. 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 Leonis C. Malburg, Mayor ATTEST: By Bruce V. Malkenhorst, City Clerk BETHLEHEM STEEL CORPORATION Byf}rk~ vt// APPROVED AS TO FORM: CITY ATTORNEY By v~ \),1;/~ ~ David B. Brearley -6- EXHIBIT A '1" . . THIRD CONTRACT FOR ELECTRICAL SERVICE THIS AGREEMENT is made, entered into and executed in duplicate originals, either copy of which may be. considered and used as the original hereof for all purposes, and to be performed in Vernon, California as of the 15th day of Ju1~ , 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 in Ordinance NO. 911 provided that an individual customer may enter into a contract for electrical services if there are spec::ial circumstances which would affect its demand for electrical energYi and WHEREAS, the City and Bethlehem Steel has entered into an agreement pursuant to Resolution NO. 4779 to provide electrical services and said agreement will expire on July 15, 1981i and WHEREAS, Bruce V. Malkenhorst, Chief Executive Officer of the Light and Power Department, has submitted a rep()rt indicating that a special contract rate in accordance with certain restrictions would reimburse to the City all costs associated with providing said services to Bethlehem Steeli anq WHEREAS, the City has offered to enter into a third 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 rmTUAL COVENANTS, PROMISES AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO AGREE AS FOLLOWS: -2- SECTION 2: "On-Peak" Periods Def ined. "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, an.d weekd.,ays 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 observed on the fOllowing Monday. SECTION 3: Billing Demand. The billing demand shall be the kilowatts of 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 S: 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 ~greement. -3- PER METER PER MONTH Demand Charge: First 6,000 demand KWS or less of billing $136,000.00 All excess KWS of billing demand, per KW $ 8.00 Energy Charge (to be added to Demand Charge) ~ All KWH, per KWH 4.411t 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 adjustment 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 (20t) 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. Service will be supplied only at 66,000 volts of service. -4- SECTION 7: Temporary Discontinuanc.e of Service. Where the use of energy is seasonal or intermittent, no ad- justments will be made for a temporary c;1iscontinuance 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 coincide with Edison Company's monthly billing meter reading times and dates for the Vernon system purchased power. SECTION 9: Energx'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. This Contract shall be effective on JUly 15, 1981 and Shall continue through January IS, 1982. However, in the event that the Federal Energy Regulatory, Commission or Southern California Edison Company takes any action which would increase the cost of providing -5- said services to the City, then the City shall be permitted to adjust the rates provided for abOVe in order to recover any such additional increases in costs. SECTION 11: Special Conditions. A.ll conditions of the Vernon A-8 Schedule as ~uthorized by City Ordinance Nos. 895,898, 905, and 911 ex,cept where inconsistent with any of the conditions provided for herein, shall be in effect. In the event there is a dispute concerning the interpretation of any of the terms or conditions of this Contract or its relationship to the Vernon A--8 schedule, said dispute shall be resolved by agreement of the parties hut under no circumsta.nces shall the City be obligated to apply a rate for services which will not reimburse the City for all of its costs associated with providing said service to Bethlehem Steel. 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 aY~. "Le nis C. Malburg,. ayo~ ... ... .. ........ ATTEST: By..6~~~ aruce v. Manenbo~st., pity ler~ ayaET;t2H;;-~~RPORATIOW APPROVED AS TO FORM: CITY ATTORNEY \)~17( \7~ David :a.. Brearl y By -6-