Resolution No. 4865
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RESOLUTION NO. 4865.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A CONTRACT
BY AND BETWEEN STEEL CASTING COMPANY AND THE
CITY OF VERNON WHICH PROVIDES FOR ELECTRICAL
SERVICES
6 WHEREAS, the City of Vernon in Ordinance No. 911
7 provided that an individual customer may enter into a contract
8 for electrical service if there are special circumstances which
9 can affect' its demand for electrical energy; and
10 WHEREAS, Steel Casting Company has requested the City of
11 Vernon to enter into a contract with said company to provide
12 electrical services at a special individualized rate which
13 would take into consideration the City of Vernon's cost savings
14 in supplying power during "off-peak" time periods; and
15 WHEREAS, Bruce V. Malkenhorst, Chief Executive Officer
16 of the Electrical Department, has submitted a report indicating
17 that a special individualized contract rate in accordance with
18 certain restrictions would reimburse to the City of Vernon all
19 costs associated with providing said electrical service to
20 Steel Casting Company; and
21 WHEREAS, the City of Vernon has offered to enter into
22 a contract to provide electrical service to Steel Casting
23 Company at a special rate which will reflect Steel Casting
24 Company's reduced demand for energy during "on-peak" periods.
25 NOW, THEREFORE, BElT RESOLVED BY THE CITY COUNCIL OF
26 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
28 hereby finds and determines that the recitals contained herein-
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1 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
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 19th day of January, 1982.
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ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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1 STATE OF.CALIFORNIA )
) SSe
2 COUNTY OF LOS ANGELES)
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4 I, BRUCE V.. MALKENHORST, City Clerk of the City o.f
5 Verno.n, do her~by c~rtify that the foregoing Resolution, being
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Resolution No. 4865
, 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 Tuesday,
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January 19
, 1982..
Lf~./~
BRUCE V. l>1ALKENHORST, c;i ty Clerk
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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
dayof February
, 19R.
original hereof for all purposes, and to be performed in Vernon, Cali-
fornia as of 1st
BY AND BETWEEN
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "City")
AND
STEEL CASTING COMPANY
5805 Downey Road
Los Angeles, CA 90058
(hereinafter referred to
as "Steel Casting")
RECITALS
WHEREAS, the City in Ordinance No. 911 provided that an individual
customer may enter into a contract for electrical service if there are
special circumstances which can affect its demand for electrical energy;
and
WHEREAS, Steel Casting has presented to the City facts demonstrating
that special circumstances exist at this time which affect its demand
for electrical energy; and
WHEREAS, Steel Casting's special circumstances have been its ability
to schedule furnace operations in the melting department so that power
EXHIBIT A
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would only be used for said operations during "off-peak" periods; an'!
WHEREAS, Steel Casting has proposed operating conditions which
would decrease the use of its furnaces during "on-peak" time periods;
and
WHEREAS, Steel Casting has indicated that if it decreases its use
of power during "on-peak" time periods, the City could decrease its
cost of supplying said power; and
WHEREAS, the City agrees that it will reduce its cost of supplying
power to Steel Casting if Steel Casting restricts its use of electrical
power during "on-peak" time periods; and
WHEREAS, Steel Casting has requested that the City enter into a
contract with said company to provide electrical services at a special
individualized rate which would take into consideration the City's
savings in supplying power during "off-peak" time periods; and
WHEREAS, Bruce V. Malkenhorst, Chief Executive Officer of the
Electrical Department, has submitted a report indicating that a special
individualized contract rate in accordance with certain restrictions
would reimburse to the City all costs associated with providing said
electrical service to Steel Casting.
WHEREAS, the City has offered to enter into a contract to provide
electrical service to Steel Casting at a special rate which will reflect
Steel Casting's reduced demand for energy during lion-peak" periods.
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.
Steel Casting hereby agrees to operate its facilities in such a
manner which will result in decreased electrical demand and energy needs
-2-
...
during the City's "on-peak" time periods.
SECTION 2: "On-Peak" Periods Defined~
The "on-peak" period is defined as weekdays from 1:00 p.m. to
7:00 p.m. commencing at 12:01 a.m. May 1 and continuing through
October 31 of each year and weekdays from 5:00 p.m. to 10:00 p.m.
commencing at 12:01 a.m. November 1 and continuing through April 30 of
the following year, each exclusive of holidays. Holidays include New
Year'$ Day, Washington's Birthday, Memorial Day, Independence Day,
Labor Day, Vetera~" s Day, Thanksgiving Day, and Christmas.
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.
Steel Casting agrees to pay the following rates during the term of
this Agreement and City agrees to make the followinq charges dur.inq the
term of this Agreement.
PER METER
PER MONTH
Demand Charge:
First 850 K~vS or less of billing demand
$12,222.40
All excess KWS of billing demand, per KW
$
g..00
-3-.
Energy Charge (to be added to demand charge):
All KWH, per KWH
Added Facilities Charge:
.Added facilities charge pursuant to Ordinance
No. 911 shall continue to be applicable
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 Steel Casting in the
same fashion as if Steel Casting were still part
of the A-8 classification.
Power Factor Adjustment:
The charge 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, indicated or recorded by metering to
be supplied by the utility during any 3D-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.
PER METER
PER MONTH
$
4.4llt
SECTION 7: Temporary Discontinuance of Service.
Where the use of energy is seasonable or intermittent, no adjustments
will be made for a temporary discontinuance of service. The customer
prior to resuming service, after such service was discontinued, shall be
required to pay all charges which would have been billed if the service
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,w
had not been discontinued.
SECTION 8: Monthly Billin9 Date.
'J;'he monthly billing ineter 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 HWH's billed pursuant to
this Contract.
SECTION 10: Term of Contract.
The initial term of this contract shall be for one (1) year from
February 1,1982, the effective date of this contract, to January 31,
1983, the termination date of said Contract. However, in the event that
the Federal Energy Regulatory Commission or Southern California Edison
Company takes any action which would increase the cost 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 the City
by Ordi~ance 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
-5-
,~
for services which will not reimburse the City for all of its costs
associated with providing said service to Steel Casting.
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:
STEEL CASTING CO~1PANY
By
BruceV. Malkenhorst, City Clerk
By
APPROVED AS TO FORM:
By
David B. Brearley, City Attorney
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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
fornia as of 1st
day of February
, 19~
original hereof for all purposes, and to be performed in Vernon, Cali-
BY AND BETWEEN
CITY OF VERNON, a t1unicipal
Corporation (hereinafter
referred to as "City")
AND
STEEL CASTING COMPANY
5805 Downey Road
Los Angeles, CA 90058
(hereinafter referred to
as "Steel Casting")
RECITALS
h'HEREAS, the City in Ordinance No. 911'provided that an individual
customer may enter into a contract for electrical service if there are
special circumstances which can affect its demand for electricalenergYi
and
WHEREAS, Steel Casting has presented to the City facts demonstrating
that special circumstances exist at this time which affect its demand
for electrical energYi and
WHEREAS, Steel Casting's special circumstances have been its ability
to schedule furnace operations in the melting department so that power
WHEREAS, Bruce V. Malkenhorst, Chief Executive Officer of the
.
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would only be used for said operations during "off-peak II periods j and
WHEREAS, Steel Casting has proposed operating conditions which
would decrease the use of its furnaces during lion-peak" time periodsj
and
WHEREAS, Steel Casting has indicated that if it decreases its use
of power during llon-peakll time periods, 'the City could decrease its
cost of supplying said powerj and
WHEREAS, the City agrees that it will reduce its cost of supplying
power to Steel Casting if Steel Casting restricts its use of electrical
power during llon-peaku time periods; and
WHEREAS, Steel Casting has requested that the City enter into a
contract with said company to provide electrical services at a special
individualized rate which would take into consideration the city's
savings in supplying power during <<off-peakll time periods; and
Electrical Department, has submitted a report indicating that a special
individualized contract rate in accordance with certain restrictions
WHEREAS, the City has offered to enter into a contract to provide
would reimburse to the City all costs associated with providing said
electrical service to Steel Casting.
electrical service to Steel Casting at a special rate whichwillreflec.t
Steel Casting's reduced demand for energy during llon-peakll periods.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES
AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO AGREE AS FOLLOWS:
-2-
SECTION 1: Special Contract Operating Conditions.
Steel Casting 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.
SECTION 2: "On-Peak" periods Defined.
The "on-peak" period is defined as weekdays from 1:00 p.m. to
7:00 p.m. commencing at 12:01 a.m. May 1 and continuing through
October 31 of each year and weekdays from 5:00 p.m. to 10:00 p.m.
commencing at 12:01 a.m. November 1 and continuing through APr:il 30 of
the following year, each exclusive of holidays. Holidays include New
Year's Day, Washington's Birthday, Memorial DaY1 Independence Day,
Labor Day, Veteran's Day, Thanksgiving Day, and Christmas.
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 3D-minute metered interval in the month. Where
demand is intermittent or subject to violent fluctuations, a 5-minute
interval may be userl.
SECTION 5: Rates.
Steel Casting agrees to pay the following rates during the term of
this Agreement and City agrees to make the following charges Q.urinq the
term of this Agreement.
PER METER
PER MONTH
Demand Charge:
First 850 K\vS or less of billing demand
$12,222.40
All excess KWS of billing demand, per KW
$
8.00
-3-
~
.
PER METER
PER MONTH
Energy Charge (to be added to demand charge):
All KWH, per KWH
$
Added Facilities Charge:
Added facilities charge pursuant to Ordinance
No. 911 shall continue to be applicable
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 Steel Casting in the
same fashion as if Steel Casting were still part
of the A-8 classification.
Power Factor Adjustment:
The charge 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, indicated or recorded by metering to
be supplied by the utility during any 3D-minute
metered interval in the month. Thekilovars 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.
4.411<6
SECTION 7: Temporary Discontinuance of Service.
Where the use of energy is seasonable or intermittent, no adjustments
will be made for a temporary discontinuance of service. The customer
prior to resuming service, after such service was discontinued, shall be
required to pay all charges which would have been billed if the service
-4-
..
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 syst~m 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 HWH's billed pursuant to
this Contract.
SECTION 10: Term of Contract.
The initial term of this contract shall be for one (1) year from
February 1, 1982, the effective date of this contract, to January 31,
1983, the termination date of said Contract. However, in the event that
the Federal Energy Regulatory Commission or Southern California Edison
Company takes any action which would increase the cost 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 the City
by 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
-5-
.
.
..
for services which will not reimburse the City for all of its costs
associated with providing said service to Steel Casting.
IN WITNESS VlHEREOF 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
ATTEST:
By 64~~/~~7~
Bruce . Malkenhorst, City Clerk
STEEL CASTING COMPANY
By~4/~'-
P~,Y
APPROVED AS TO FORM:
By D'8.~~~~aty
Attorney
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.January l4~1982
,..f
To: BruceV. Malkenhorst, City Administrator
From: Lewis R. Ada'ms ~ Operation f-/lanager Light & Power Department
Subject: SPECIAL RATE,fOtl STEEL CASTING COMPANY
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Attached are calculations for a special contract rate for Steel
Casting Company. The rate is based on the same cos~ figures developed
byiGb:G. ClaylLAssociates for previous special contract rates. Bdb
Clay basrevi~wed; the proposed. rate an~t is. in agreement.
The proposed rate provides a substantial. savings to Steel Casting
COl'l'lPany ~1'I.operatingoff-peak, while providing for recovery of all ,
qi tycosts . .'
Iti~reo01mlended that the special rate be presented to the City
CounctY'for co~Jderation. . .
'~~...~
LRA: la
Enclosure
!f"."ilV
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q ./ LEON IS C~~::::~::~ MAYOR
HILARIO GONZALES
WILLIAM M. MCCORMICK
THOMAS A. YBARRA
WILLIAM J. DAVIS
TELEPHONES
BRUCE V. MALKENHORST.
CITY ADMINISTRATOR / CITY CLERK
- 583-8811
- 587-5171
- 583-4821
583-8811
583-8811
- 583-8811
OFFICERS
DAVID B. BREARLEY,
CITY ATTORNEY
CITY CLERK. -
POLICE DEPT. . . - -
FIRE DEPT. - - - - -
BUILDING DEPT. - - -
PUBLIC WORKS DEPT. .
HEALTH DEPT.- - - .
ARTHUR E. NELSON,
DIRECTOR OF COM MUNITY SERVICES / HEALTH OFFICER
LEWIS R. ADAMS,
DIRECTOR OF WATER 8c POWER
GEORGE F. BASS.
FIRE CHIEF
AL ESPINOZA,
POLICE CHIEF
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
January 18, 1982
IN REPLY REFER TO:
City Council
City of Vernon
Honorable Members:
Transmitted herewith is a report which indicates that a special
individualized contract rate, in accordance with certain restrictions,
would reimburse the City all costs associated with providing said
electrical service to Steel Casting Company. This rate is based
on the same cost figures which were developed by Bob Clay and
Associates for previous special contract rates and Mr. Clay has
reviewed the proposed rate and is in agreement with same.
It is hereby recommended that a contract for electrical services at
this special rate by and between the City of Vernon and Steel
Casting Company be entered into as of February 1, 1982.
Yours truly,
~/$~
Bruce V. Malkenhorst
City Administrator/City Clerk
BVM/gjo
attachment
Ci ty of Vernon
Development of Special Contract Charges
Steel Castings Company
Monthly System Cost
(1) NCP Demand (KW)
(2) System Unit Cost
TOT f\L r.'iONTHL Y S Y ST H1 COST
Edison Demand Costs
(3) On Peak Demand (KW)
(4) Average Edison Demand Cost
(5) Total Demand Costs
TOTAL MONTHLY COSTS
4000
$ 1. 546/K~1
$ 6~184.00
850
$ 7 .104/K~'J
$ 6~038.40
$12,222.40
.
BAKER G, CLAY & ASSOCIATES,INC.
A PUBLIC UTILITY CONSULTING FIRM
165 CONDUIT STREET, ANNAPOLIS, MARYLAND 21401
PHONE, (301) Z67.63oo
FROM WASHINGTON. D.C. Z61.1769
November 11,1981
Mr. Lew Adams
Vernon City Hall
4305 Santa Fe Avenue
Vernon, California 90058
Dear Lew:
I have reviewed your letter of November 5, 1981 containing a
proposed TOU rate for Steel Casting and concur in your proposal.
In my opinion this rate has been correctly calculated and will
result in substantial savings for Steel Casting without reducing
Vernon's net income.
Sincerely
BGC:jc
,
CONTRACT FOR ELECTRICAL SERVICE
THIS AGREEMENT is made, entered into and e>tecuted 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, Cali-
fornia as of
day of
, 19
BY AND BETWEEN
CITY OF VERNON, a 11unicipal
Corporation (hereinafte.r
referred to as "City")
AND
STEEL CASTING COMPANY
5805 Downey Road
Los Angeles, CA 90058
(hereinafter referred to
as II Steel Casting.lI)
RECITALS
WHEREAS, the City in Ordinance No. 911 provided that an individual
customer may enter into a contract for electrical service if there are
special circumstances which can affect its demand for electrical energy;
and
WHEREAS,. Steel Casting has presented to the City facts demonst:r:-ating
that special circumstances exist at this time which affect its demand
for electrical energy; and
WHEREAS, Steel casting's special circumstances have been its ability
to schedule furnace operations in the melting department so that power
would only be used for said operations during "off-peak" periods; and
WHEREAS, Steel Casting has proposed operating conditions which
would decrease the us.e of its furnaces during uon-peakUtime periods;
and
WHEREAS, Steel Casting has indicated that if it decreases its use
of power during "on-peak" time periods, the City could decrease its
cost of supplying said power; and
WHEREAS, the City agrees that it will reduce its cost of supplying
powe.r to Steel Casting if Steel Casting restricts its use of electrical
power during "on-peak" time periods; and
WHEREAS, Steel Casting has requested that the City en.ter into a
contract with said company to provide electrical services at a spe~ial
individualized rate which would take into consideration the City's cost
SCtvings in supplying power during "off-peak II time periods; and
WHEREAS, .Bruce V. Malkenhorst, Chief Executive Officer of the
Electrical Department, has submitted a report indicating that .aspecial
individualized contract rate in accordance with certain restrictions
would reimburse to the City all costs associated with providing said
electrical service to Steel Casting.
WHEREAS, the City has offered to enter into a contract to provide
electrical service to Steel Casting at a special rate which will reflect
Steel Casting's reduced demand for energy during "on-peak" periods.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES
AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION 1: s~ecialContract Operating Conditions.
Steel Casting hereby agrees to operate its facilities in such a
manner which will result in decreased electrical demand and energy needs
-2-
during the City's "on~peak" time periods.
SECTION 2~ nOn~Peak" Periods Defined.
The "on-peak" period is defined as weekdays from 1:00 p.m. to
7:00 p.m. commencing at 12:01 a.m. May I and continuing through
October 31 of each year and weekdays from 5:00 p.m. to 10:00 p.m.
commencing at 12:01 a.m. November 1 and continuing thro\,lgh April 30 of
the following year, each exclusive of holidays. Holidays include New
Year's Day, Washington's Birthday, Memorial Day, Indep~ndence Day,
Labor Day, Veteran's Day, Thanksgiving Day, and Christmas.
SECTION 3: BillinqDemand.
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 av~rage
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, as-minute
interval. may be used.
SECTION 5: Rates.
Steel Casting agrees to pay the. following rates during the term of
this Agreement and City Agrees to make the following charges during .the
term of this Agreement.
PER METER
PER MONTH
Customer Charge:
$
Demand Charge:
All KWS of billing demand, per KW
$
8.00
~3~
PER METER
PER MONTH
Energy Charge (to be added to demand charge):
All KWH, per KWH
$
4.4l1~
Added Facili tie.s Charge:
Added facilities charge pursuant to. Ordinance
No. 911 shall continue to be applicable
Minimum Charge:
The monthly minimum charge shall be the
monthly customer charge
Energy Cost Adjustment Billing Factor:
Allenergyus.ed shall be charged the then current
energy adjustment billing demand factor adopted
by resolution of the City Council. Said energy
adjustment billing demand facto;r- shall be applied
to the energy consumed by Steel Casting in the
samefashi.on as if Steel Casting were still part
of the A-a classification.
Power Factor Adjustment:
The charge will be adjusted each month for
reactive demand. The charges will be increased
by twenty cents(20~) per kilovar of maximum
reactive demand imposed on the utility in
excess of twenty percent (20%) of the number of
kilowatts of.billing dema.nd.
The maximum reactive demand shall be the highept
co-incident measured maximum average kilovar
demand, indicated or recorqed by metering to
be supplied by the t:ltility 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.
SECTION 7: Temporary Discontinuance of Service.
Where the use of energy is seasonable O;r- intermittent, no adjustments
will be made for a temporary discontinuance of service. The customer
prior to resuming service, after such service was discontinued, shall be
required to pay.all charge:;; which would have been billed if the service
-4-
,
p
..
for services which will not reimburse the City for all of its costs
associated with providing said service to Steel Casting.
IN WITNESS WHEREOF the parties here.to 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. M~lkenhorst, City Clerk
STEEL CASTING CO~1PANY
By
APPROVED AS TO FORM:
By
David B. Brearley,. City Attorney
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.
CONTRACT FOR ELECTRICAL SERVICE
THIS AGREEMENT is made, entered into and executed in duplicate
originals, either copy of which maybe considered and used as the
original hereof for all purposes, and to be performed in Vernon., Cali-
fornia as of
/4day.Of j7~J
, 19.8.l::
BY.. AND BETWEEN
CITY OF VERNON, a !1unicipal
CorpQration (hereinafter
referred to .as "Cityll)
AND
STEEL CASTING COMPANY
5805 Downey :Road
Los Angeles, CA 90058
(hereinafter ~eferred to
as "Steel Casting")
RECITALS
WHEREAS, the City in Ordinance No. 911 provided that an individual
customer may enter into a contract for electrical service if there are
special circumstances which can affect its demand for electrical energy;
and
WHEREAS, Steel Casting has presented to the City facts demopstrating
that special circumstapces exist at this time which affect its demand
for electrical energy; and
WHEREAS, Steel Casting's special circumstances have been its ability
to schedule furnace operations in the melting department so that power
would only be used for said operations during "off-peak" periods; and
WHEREAS, Steel Casting has proposed operating conditions which
would decrease the use of its furnaces during "on-peak" time periods;
and
WHEREAS, Steel Castin9 has indicated that if it decreases its use
of power during "on-peak" time periods, the City could decrease its
cost of supplying said power; and
WHEREAS, the City agrees that it will reduce its cost'of supplying
power to Steel Casting if Steel Casting restricts its use of electrical
power during lion-peak" time periods; and
WaEREAS, Steel Casting has requested that the City entex; into.a
contract with said company to provide electrical services at a special
individualized rate which would take into consideration the City's cost
savings in supplying power during "off-peak" time periods; and
WHEREAS, BruceV. Malkenho.J:'st, Chief Executive Officer of the
Electrical Department, has submitted a report indicating that a special
individualized contract rate in accordance with certain restrictions
would reimburse to the City all costs associated with providing said
electrical service to Steel Casting.
WHEREAS, the City has offered to enter into a contract to provide
electrical service to Steel Casting ata special rate which will reflect
Steel Casting's reduced demand for energy during "on-peak" periods.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES
AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO AGREE AS FOLLOWS:
SECTION I: Special Contract Operatin9 Conditions.
Steel Casting hereby agrees. to operate its facilities in such a
manner which will result in decreased electrical demand and ener9Y needs
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during the City's I'on"'peak" time periods.
SECTION 2: "On-Pea.k" Periods Defined.
The "on"'peakll period is defined as weekdays from l:OOp.m to
7:00 p.m. commencing at 12:01 a.m. May 1 and continuing through
October 31 of each year and weekdays from 5:00 p.m. to 10:00 p.m.
commencing at 12: 01 a.m. November 1 a.nd continuing through A.pri130 'of
the fOllowing year, each exClusive of holidays. Holidays include New
Year's Day, WaShingt.on's Birthday, Memorial Day, Independence Day,
Labor Day, Veteran's Day, Thanksgiving Day, and Christmas.
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.
Steel Casting agrees to pay the following rates during the te:r-m of
this Agreement and City Agrees to make the following charges during the
term of this Agreement.
Customer Charge:
PER METER
PER MONTH
$ /2/ ?- 2 2.., t.kJ
Demand Charge:
A.Il KWS of billing demand, per KW
$
8..00
...3-
PER METER
PER MONTH
En,ergy Charge (to be added to demand charge):
All KWH, per KWH.
$
4 411tt
Added Facilities Cha~ge:
Added facilities charge pursuant to Ordinance
No. 911 shall continue to be applicable
Minimum Charge:
The monthly minimllm charge shall be the
monthly customer charge
Energy Cost Adjustment Billing Factor:
All energy used sha.ll be charged the then current
energy adjustment billing demand factor adopted
by resolution of the City Council. Said ene~gy
adjustment biL!..ing demand fagtor shall be applied
to the energy consumed by Steel Casting in the
same fa.shion as if Steel Casting were still part
of the A... 8 classification.
Power Factpr Adjustment:
The charge will be adjusted each month for
rea.ctive demand. The charges will be increased
by twenty cents (20tt) per kilovar of maximum
re.activedemand 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, indicated or recorded by metering to
be supplied by the utility during any 3D-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.
SECTION 7: Temporary Discontinuance of Service.
Where the use of energy is seasonable or intermittent, no adjustments
will be made for a temporary discontinuance of service. The customer
prior to resuming. service, after such service was discontinued, shall be
required to pay all charges which would have been billed if the service
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for services which will not reimburse the City for all of its costs
associated with p;roviding said servic~ to Steel Casting.
IN WITNESS WHEREOF the parties hereto have executed this Contract,
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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
STEEL CASTING COMPANY
By
APPROVED AS TO FORM:
By
David B. Brearley, City Attorney
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