Resolution No. 4934
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RESOLUTION NO. 4934
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A SECOND
CONTRACT BY AND BETWEEN STEEL CASTING COMPANY
AND THE CITY OF VERNON WHICH PROVIDES FOR
ELECTRICAL SERVICES
WHEREAS, the City of Vernon in Ordinance No. 911
initially established a special contract for electrical services
that would be tailored to an individual customer if the
individual customer had special circumstances or could adjust
its usage of electrical energy so as to affect its demand for
electrical energy during Ilon-peakll periods; and
WHEREAS, the City of Vernon in subsequent Ordinances
has continued this special contract classification and has
adopted Ordinance No. 929 which incorporates the recommendations
of the City's special rate consultant, Baker G. Clay of Baker G.
Clay & Associates, Inc., contained in his report on rate design
heard and considered in a public hearing on July 13, 1982; and
WHEREAS, the City of Vernon and Steel Casting Company
have entered into one previous agreement and it is now necessary
to enter into a second agreement to incorporate the recommenda-
tions contained in Mr. Clay's rate report in accordance with
certain restrictions which would reimburse to the City of Vernon
all costs associated with providing said services to Steel
Casting Company.
NOW I 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
28 hereby finds and determines that the recitals contained
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1 hereinabove are true and correct.
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SECTION 2: That the City Council of the City of Vernon
3 hereby approves the execution of the Contract which is attached
4 hereto as Exhibit "A" and incorporated herein as though fully
5 set forth at length and authorizes the Mayor and the City Clerk
6 to execute said Agreement for and on behalf of the City Council
7 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 17th day of August, 1982.
-/'/~,q.1/~~
~"~S A. YBA~RA, Mayor Pro Tem
ATTEST:
~4A~/~~
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
SSe
I, BRUCE V. MALKENHORST, City Clerk of the City of
Verno,n, do hereby certify that the foregoing Resolution, being
Resolution No. 4934 , 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,
August 17 I 19 82.
( SEAL)
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SECOND
CONTRACT fOR ELECTRICAL SERVICE
THIS AGREEMENT is made I entered into and executed in duplicate
originals, either copy of which may be considered and used as the
fornia as of the 1st day of September, 1982
original hereof for all purposes, and to be performed in Vernon, Cali-
BY AND BETWEEN
CITY OF VERNON, a Municipal
Corporation (hereinafter
referred to as "City")
4305 Santa Fe Avenue
Vernon, CA 90058
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 initially established a
special contract for electrical services that would be tailored to an
individual customer if the individual cU!iltomer had special circumstances
or could adjust its usage of electrical energy so as to affect its
demand for electrical energy during "on-peak" periods; and
WHEREAS, the City in subsequent Ordinances has continued this
special contract classification and has adopted Ordinance No. 929
~hich incorporates the recommendations of the City's specialr~te
consultant, Baker G. Clay of Baker G. Clay & Associates, Inc., contained
EXHIBIT -
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in his report on rate design heard and considered in a public hearing
on July 13, 1982; and
WHEREAS I the City and Steel Casting have entered into one
previous agreement and it is now necessary to enter into a second
agreement to incorporate the recommendations contaiped in Mr. Clay's
rate report in accordance with certain restrictions which would
reimburse to the City all costs associated with providing said services
to Steel Casting.
NOW I . THEREFORE , IN CONSIDERATION OF THE MUTUAL COVENANTS I
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 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.ID. 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's Day, v.lashington' s Birthday, Memorial Day I Independence Day,
Labor Day, Veteran's Day, Thanksgiving Day, and Christmas.
SECTION 3: Billing Demand.
The billing demand shall be the kilowatts of maximum non-peak"
demand established during the time this Contract is in effect.
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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 Plus Surcharge.
Section 4 of Ordinance NO. 929 authorizes the City Council
to. adopt a resolution to provide for a surcharge to the rates prbvideq.
for in said. Ordinance to recover the costs associated with a Step 2
rate increase authorized by the Federal Energy Regulatory Commission
in Docket No. ER82-427 if said increase is put into effec:t by the
Southern California Edison Company. The~efore, new rates including
the surcharge shall be effective in accordance with said resolution.
Steel Casting agrees to pay the following rates plus su~cha~ge
during the term of this Agreement and City agrees to make the following
charges during the term of this Agreement.
PER METER
PER MONTH
Demand Charge:
First 850 KWS or less of billing demand
All excess KWS of billing demand, per I<W
$ 12,240.00
$ 8.00
Demand Charge Including Surcharge:
First 850 KWS or less of billing demand
AlL excess KWS of billing demand, per KW
$ 13,731.00
$ 9.75
Energy Charge (to be added to demand charge):
All KWH, per KWH
5.0629!
Added Facilities Charge:
Added facilities charge pursuant to Ordinance
No. 929 shall continue to be applicable
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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
oftheA-8 classification.
Power Factor A.djustment:
The charge will be adjusted each month for
reactive demand. . The charges will be increased
by twenty cents >(20tt) 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 I indicated 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.
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 se.rvice.
The customer prio.r to resuming service I after such service was
discontinued I shall 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
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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
adjustment billing factors will be applied to KWH's bi.lledpuI:'suant to
this Contract.
SECTION 10: Term of Contract.
This Contract shall be effective on September 1, 1982 and
shall continue through August 31, 1983. However, in th~ event that
the Federal Ene.rgy Regulatory Commission or Southern California .Edison
Company takes any action which would increase the cost to th~ City,
then the City shall be permitted to adjust the rates provid~d for above
in order to recover any such additional increases in costs.
SECTION 11: Special Conditions.
All conditions of the Vernon A-8 Scheduled as authorized by
the City by Ordinance Nos. 895, 898, 905, 911, 915 and 929, except
where inconsist~nt 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 Contractor
its relationship to the Vernon A-8 Schedule I said dispute shall be
resolved by agreement of th~ parties, but under no circumstances shall
the City be obligated to apply a rate for services which will. <not
r~imburse the City for all of its costs associated with providing said
service to Steel Casting.
SECTION 12: Off-Peak Demand.
Steel Casting's .maximum demand during the off-peak periods
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shall be 4,000 kW.
IN WITNESS WHEREOF the par~ies hereto have executed this
first above written.
Contract, or caused it to be executed as of the day, month and year
ATTEST:
By
. Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM:
City Attorney
By
David B. Brearley
CITY OF VERNON
By -/~'-'A' /d:- C(, ..Z~ L t..wL/
. V-;6C)MiS'i: YBtR.RA~ vMa;or Pro .'l'em
STEEL CASTING COMPANY
By
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