Resolution No. 4869
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RESOLUTION NO. 4869
A RESOLUTION OF THE CITY COVNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A FOURTH
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. 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 energy; and
WHEREAS, the City of Vernon and Bethlehem Steel
Corporation has entered into an agreement pursuant to
No. 4821 as amended by Resolution No. 4845 to provide
services and said agreement will expire on January 15, 1982;
WHEREAS, Bethlehem Steel Corporation has requesteo
the City of Vernon to enter into a fourth contract t~ provide
electrical services at a special contractual rate; and
WHEREAS, Bruce V. Malkenhorst, Chief Executive
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 of Vernon all
costs associated with providing said services to Bethlehem
Steel Corporation; and
~vHEREAS, the City of Vernon has offered to enter into
a fourth contract to provide electrical services to Bethlehem
Steel Corporation at a special rate which will reflect Bethlehem
Steel Corporation's reduc~d demand for energy during "on-peak"
periods and will recover the City of Vernon's full costs in
providing said services
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1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
2 OF THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of tne City of Vernon
4 her~by finds and determines that the recitals contained herein....
5 above ar.e true and correct.
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SECTION 2: That th~ City Council of the City of Vernon
7 hereby approves the execution of .the Contract which is attached
8 hereto as Exhibit "A" and incorporated herein by this reference
9 as tho\lgh fully set forth at. length and authorizes the Mayor
10 and the City Clerk to execute said Agreement for and on behalf
11 of the City Council of the City of Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
13 shall certify to the passage of this Resolution and thereupon
14 and thereafter the same shall be in full force and eff~ct
15 Al?PROVED AND ADOPTED this 5th day of January,. 1.9a?
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;-......
--~ EONIS C.
ATTEST:
&~/4~Y~~
BRUCE v. f.1ALKENHORST, City Clerk
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1 STATE OF CALIFOUNIA
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2 COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORS'l' , City Clerk of the City of
5 Verno.n, do. hereby certify that the faregoing Resolution, being
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Resolutian No.
4869 , was duly adapted by the City Council
7 of the City of Vernan, and was .approved by the M~yor of said
8 City (It a regular mectingaf the City Council held on TUeday,
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15 (SEAL)
Janua.ry 5
, 1982,
Le:~
BRuce v. NALKDNHORS'l', City. Clerk
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-3-
FOURTH
CONTRACT FOR ELECTRICAL SERVICE
THlS AGREEMENT is made, entered into and executed in dupliqate
originals, either copy of which may be considered al'ld us,ed as t:h.e original
hereof for. all purposes, and to be performed in Vernon, California, <as . of
the 15th day of January, 1982
BY AND BETtN'EEN
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "City")
430S'Santa Fe Avenue
Vernon, CA 900S8
AND
BETHLEHEM STEEL CORPORATION
(hereinafter referred to as
"Bethlehem Steel")
Pacific Coast Division
3300 East Slauson Avenue
Vernon, CA 9005B
RECITALS
NHEREAS, 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
energy; and
WHEREAS, the City and Bethlehem Steel has entered into an
agreement pursuant to Resolution 4821 to provide electrical services
and said agreement will expire on. January lS, 1982; and
ElHlB'T ~ .k-
WHEREAS, the City and.Bethlehem Steel entered into an amended
agreement pursuant to Resolution No. 4845 which became effective on
October 7, 1981; and
WHEREAS, Bethlehem Steel has requested the City to enter into
a fourth contract to provide electrical services at a special contractual
rate; and
tv-HEREAS, 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 Steel; and
WHEREAS, the City has offered to enter into a fourth 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 FOLLONS:
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.
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
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the following year, each exclusive of holidays. Holidays include New
Year's Day, Washington's Birthday, ~lemor ial Day, Independence Day, Labor
Day, Veteran's Day, Thanksgiving Day, and Christ.mas.
SECTION 3: Billing Demand.
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The billing demand shall be the kilowatts of maximum "on-peak"
demand established during the time this contract is in effect.
SECTION 4:r1aximum Demand.
The maximum demand in any month shall be measured maximum average
kilowatt imput, indicated or recorded by instruments to be supplieq by
Cit.y, 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 followinq rates during the
terms of this Agreement and City agrees to make the following charges
during the. term of this Agreement.
PER METER
PER nONTH
Demand Charge:
First, 6,000 KWS or less of billing demand
All excess KWS of billing demand, per KW
$136,000.00
$ 8.00
Energy Charge (to be added to Demand Charge) :
All KWH, pe r KWH
4.411t
Minimum Charge:
The monthly minimum charge shall be the monthly dem~nd
Energy Cost Adjustment Billing Factor:
All energy used shall be charged the then current
energy adjustment billing demanq factor adopted
by resolution of the City Council. Said energy
adjustment billing demand factor shall be applied
to the energy consl.lmeq by Bethlehem Steel in the
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same fashion as if Bethlehem Steel were still part
oftheA-B 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 tinit. A device will beinstalledDn each
kilovar of meter to prevent reverse operation,o.f the
meter.
SECTION 6: Voltaqe Service.
Service will be supplied only at 66,000 volts of service.
SECTION 7: Temporary Discontinuance of Service.
Where the use of energy is seasonal .or intermittent, no adjustments
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 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
Part G of the Preliminary Statement. The applicable energy cost and
adjustment billing factors will be;applied to KNH'sbilled pursuant to
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this Contract.
SECTION 10: Term of Contract.
This Contract shall be effective on January 15, 1982 and shall
continue through December 31, 1982. However, in the event that the
Federal Energy Regulatory Commission or Southern Cal1.fornia Edison
Company takes any action which would increase the cost of providing
said services to the City, then the City shall be permitted to aqjust
the rates provided for above in order to recover any such additional
increases ,in costs.
Bethlehem Steel shall have the right to reopen negotiations on
the rate structure should its business picture change.
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
o:fthe conditions provided for herein, shall be in effect. In the event
there isa'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
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for services which will not reimburse the City for all of its costs
associated with providing said service to Bethlehem Steel.
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IN WITNESS WHEREOF the parties. hereto have executed this Cop,tract,
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 Glet"k
BETHLEHEM STEEL CORPORATION
By
APPROVED.AS TO FORM:
CITY ATTORNEY
By
Oavid .B. Brearley
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FOURTH
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 January, 1~82
BY AND' BETWEEN
CITY OF VERNON, a Ml,lnicipal
Corporation · (hereinafter
referred to as "Cityll)
4305 Santa Fe Avenue
Vernon, CA 90058
AND
BETHLEHEM STEELCO:RPORATION
(hereinafter referred tQ as
"Bethlehem Ste.el")
Pacific Coast Division
3300 East Slauson Avenue
Vernon, ,CA 90058
RECITALS
wt-IE:REAS, 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
energy; and
WHEREAS, the City and Bethlehem Steel has entered into an
,agreement pursuant to Resolution 4821 to provide electrical services
and said agreement will expire on January 15, 1982; and
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the following year, each exclusive of holidays. Holidays include New
Year's Day, Washinqton's Birthday, Hemorial Day, Independence Day, Labol:'
Day, Veteran's Day,. 'l'hanksgivinq Day, and Christmas.
SECTION 3: Billing Demand.
The billing demand shall be the kirowatts of maximum ~on-peak"
demand,e::;tablished during the time this contract is in effect.
SECTION 4: Maximum Demand.
The maximum demand in any month shall be measured maximum averag~
kilowatt imput, ,indicated or recm;ded by instruments to be supplied by
Ci ty, during any 3D-minute metered interval in the .month. J~here
demand is intermittent or subject to violent fluctuations, a'. S...minute
interval may be used.
SEC'l'ION 5: Rates.
Bet.hlehem Steel agrees to pay the followino rates during the
term::; of this Agree:rnent and Ci ty agrees to make the following charges
during the term of .this Agreement.
PER METER
PER HONTH
Demand Charge:
First 6,000 KWS or less of billing demand
Arl excess Kt.JS of billing demand, per KW
$136,000..00
$ 8.00
Energy Charge (to be added to Demand Charge) :
All K\1H, per KWH
4.4l1t
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 adj.ustment billing demand factor adopted
by resolution of the City Council. Said energy
adju::;tment billing demand factor shall be applied
to the energy consumed by Bethlehem Steel in the
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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 kilovarof 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-
incidentmeasur~d maximum average kilovar demand, in-
dicated or recorded by metering to be supplied ,by the
utility during any 30-minute rneter.ed interval in the
month. The kilovars .shall be determined to the
nearest unit. A deVice >will be installed on each
kilovar of 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 seasonal. or intermittent, no adjustments
will be made fora 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 coincide
with Edison Company's monthly billing meter reading times and dates.. for
the Vernon system purchased power.
SECTION 9: Ener<;:ry Cost Adjustment..
The rates above are subject to adjustment as provided for in
Part G of the preliminary Statement. The applicable energy cost ana
adjustment billing factors will be applied to Kl'lH's billed pursuant to
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this Contract.
SECTION 10: Term of Contract.
This Contract shall be effective on January 15, 1982 and shall
continue through December 31, 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
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
Bethlehem Steel shall have the right to reopen negotiations on
increases in costs.
the rate structure should its business picture change.
SECTION 11: Special Conditions.
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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.
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IN WITNESS WHEREOF the parties hereto have executed this Contract,
written.
or caused it to be executed as of the day, month and year first above
ATTEST:
By ff~ ,;//?1~
Bruce V.Malkenhorst, City Clerk
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CITY OF VERNON
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By-- ~ ,". ,,' "
-,,- O~iS~~, !
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By
BEM STEEL CORP:~TION
January 4, 1982
To: Bruce V. Malkenhorst, City Administrator
From: Lewis R. Adams, Operations Manager Light & Power Dept.
Subject: SPECIAL CONTRACT RATE FOR BETHLEHEM STEEL CORPORATION
The third contract between Bethlehem Steel Corporation and
the City of Vernon which provides for special electrical rates,
approved by the City Council by Resolution No. 4821, expires on
January 15, 1982. A review of the contract rate has been made
and the desired result of providing savings to Bethlehem Steel
Corporation while recovering all city costs has been achieved.
It is anticipated the Southern California Edison1s resale
rates to the City will remain at present level for the next
twelve months and that other conditions will also remain static.
It is recommended, therefore, that a fourth contract be pre-
sented to the City Council for approval \^Jith all rates and
conditions reamining the same, except that the term be for a
twelve month period, expiring on January 15, 1983.
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