Resolution No. 4935
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RESOLUTION NO. 4935
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A FOURTH
CONTRACT BY AND BETWEEN BYRON JACKSON PUMP
DIVISION, BORG - WARNER CORPORATION, AND THE
CITY OF VERNON WHICH PROVIDES FOR ELECTRICAL
SERVICES
WHEREAS, the City of Vernon in Ordinance No. 911
7 initially established a special contract for electrical services
8 that would be tailored to an individual customer if the
9 individual customer had special circumstances or could adjust
10 its usage of electrical energy so as to affect its demand for
11 electrical energy during "on-peak" periods; and
12 WHEREAS I the City of Vernon in subsequent Ordinances
13 has continued this special contract classification and has
14 adopted Ordinance No. 929 which incorporates the recommendations
15 of the City's special rate consultant, Baker G. Clay of Baker G.
16 Clay & Associates, Inc., contained in his report on rate design
17 heard and considered in a public hearing on July 13, 1982; and
18 WHEREAS, the City of Vernon and Byron Jackson Pump
19 Division, Borg - Warner Corporation, have entered into three
20 previous agreements and it's now necessary to enter into a fourth
21 agreement to incorporate the recommendations contained in ~1.r.
22 Clay's rate report in accordance with certain restrictions which
23 would reimburse to the City of Vernon all costs associated
24 with providing said services to Byron Jackson Pump Division,
25 Borg - Warner Corporation.
26 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
27 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
1 hereby finds and determines that the recitals contained
2 hereinabove are true and correct.
3 SECTION 2: That the City Council of the City of Vernon
4 hereby approves the execution of the Contract which is attached
5 hereto as Exhibit "A" and incorporated herein as though fully
6 set forth at length and authorizes the Mayor and the City Clerk
7 to execute said Agreement for and on behalf of the City Council
8 of the City of Vernon.
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SECTION 3: That the City Clerk of the City of Vernon
10 shall certify to the passage of this Resolution and thereupon
11 and thereafter the same shall be in full force and effect.
12 APPROVED AND ADOPTED this 17th day of August, 1982.
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~~fa~ Pro Tern
ATTEST:
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BRUCE V. MALKENHORST, City Cl rk
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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,. bej,ng
Resolution No. 4935 I was duly adopted by the City Council
of the City of Vernon, and was approved.by the Mayor of saj,d
City at a regular meeting of the City Councilhelct on Tl.1esqa.Yi
August 17 , 1982.
(SEAL)
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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 Vern.on, Cali...
fornia as of the 1st day .of September I 1982
BY AND BETWEEN
CITY OF VERNON, a Municipal
Corporation (Hereinafter
referred to as "City")
4305 Santa Fe Avenue
Vernon, CA 90058
AND
BYRON JACKSON PUMP DIVISION
Borg... t'larner Corporation
2300 East Vernon Avenue
Los Angeles, Ca.lifornia
(hereinafter referred to
"Byron Jackson")
RECITALS
WHEREAS, the City in Ordinance No. 911 initially establisl1ed
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 lion-peak" periods; and
WHEREAS, the City in subsequent Ordinances has continued this
special contract .classification and has adopted .Ordinance No. 929 which
incorpOJ;:'ates the reconunendations of the City's. special-rate consultaJ1t,
BakerG. Clay of Baker G. clay & Associates, Inc., contained in his
EXHIBIT 11"
report on rate design heard and considered in a public hearing on
July 13, 1982; and
.WHEREAS, tpe City and Byron Jackson have entered into three
previous agreements. and it's now necessary to enter into a fourth
agreement to incorporate the. recommendations contained 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 Byron Jackson.
NOW,'rHEREFORE, IN CONSIDERATION OF THE r-1UTUALCOVENANTS,
PROMISES AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO AGREE
AS FOLLOWS:
SECTION 1: Special Contract Operating Conditions.
'Byron Jackson hereby agrees 1::0 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: "0n~Peak" Periods Dei ined.
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's Day, Washington's Birthday, Memorial Day, Independence Day,
Labor Day, Veteran's Day I 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.
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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 provided
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 effect pythe
Southern. California Edison Company. Therefore, new rates including
the surcharge shall be effective in accordance with said resolution.
Byron Jackson agrees.to pay the following rates plus surcharge
during the terms of this Agreement and City agrees to make the following
charges during the term of this Agreement.
A. . KINETIC ~reTER FACILITY (ACCOUNT #9522005)
PER METER
PER MONTH
Customer Charge:
$ 30,780.00
Demand. Charge:
All KWS of billing demand, per KW
$
8.00
Demand Charge Including Surcharge:
All KWS of billing demand I per KW
$
9.75
Energy Charge (to be added to demand
charge) :
All KWH, per KWH
5.062ft
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Added Facilities Charge:
Added facilities charge pursuant to
Ordinance No. 929 shall continue to
be applicable
Minimum Charge:
The monthly minimum charge shall be
the monthly customer charge
Energy Cost Adjustment Billing Factor:
All energyuped shall be charged the then
current energy adjusting billing demand
factor adopted by resolution of the City
Council. Said energy.adjustment billing
qemand factor shall be applied to the
energy consumed by Byron Jackson (Kinetic
Meter Facility) in the same fashion as if
Byron Jackson (Kinetic Meter Facility) were
still part of the A-8 classific::ation.
Power Factor Adjustment:
The charges will be adjusted each month for
reactive demand. The charges will be increased
by twenty cents (20i) 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 30-minute
metered interval in the month. The kilovars
shall be determined to the nearest unit. A
device will be installed on each kilovarmeter
to prevent reverse operation of the meter.
B. BYRON JACKSON ( "BEE JAY") METER FACILITY (ACCOUNT #9523015)
PER METER
PER MONTH
Demand Charge Including Surcharge:
All KWS of billing demand, per KW
Energy.Charge (to be added to demand charge):
All KWH, per KWH
$
9.75
c:ustomer Charge:
$ 13/680.00
Demand Charge:
All KWS'of billing demand, per KW
$
8.00
5.261i
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Added Facilities Charge:
Added facilities charge pursuant to
Ordinance No. 929 shall continue tQ
be applicable
Minimum Charge~
The monthly minimu~ charge shall be
the monthly customer charge
Energy Cost Adjustment Billing Factor:
All energy used shall be charged the then
current energy adjustment billing demand
factor a.dopted by resolution of the C:ity
Council. Said energy adjustment billing
demand factor shall be applied to the energy
consumed by Byron Jackson ("Bee Jay" Meter
Facility) in the same fashion as if Byron
Jackson ("Bee Jay" Meter Facility) 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 (20i) 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-incident measured maximum average kilovar
demand, indicated or recorded by metering to be
suppliecl 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.
A. KINETIC METER FACILITY:
Service will be supplied only at 66,000 volts of service.
B. BYRON JACKSON ("BEE JAyn)METE~FACILITY:
Service will be suppl:ied onlY at 4,000 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
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customer prior to resuming service, after such service was discontin\.le<1,
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 re.ading times and dates shall coinci<1e
with Edison Company monthly billing meter reading times a,nd date~ fo:J:'
the Vernon system purchased power.
SECTION 9: Ener']y Cost Adjustment.
The rates above are subject to adjustment as provided for in
Part G of the Preliminary Statement. The applicable ene:J:'gy cost and
ad..just.ment hilling factors will be applied to KWH' sbilled pursuant 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 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 additional increase 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, 911, 915 and 929, except where in-
consistent with any of the conditions provided for herein, shall be in
effect. In the event there is a dispute concerning the interpretati.on
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 a.greement
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of the parties but under no circumstances shall the City be obligated
to apply a rate for services which will.not reimburse the City fo.r .all
of its costs associated with providing said service to Byron Jackson.
SECTION 12: Off-Peak Demand.
Byron Jackson's maximum demand during the off-peaj{ periods
shall be 18,000 kW at its Kinetic Meter Facility and 8/000k~v at its
Bee Jay Meter Facility.
IN WITNESS WHEREOF the parties hereto have executed this
CITY OF VERNON
BY~~Up~
~HO . .SA. YBA ..' ~yorPro
Tern
Contract, or caused it to be executed as of the day, month and year
first above written.
ATTEST:
By
Bruce V. Malkenhorst, City Clerk
BYRON JACKSON PUMP DIVISION
Borg - Warner Corporation
By
APPROVED AS TO FORM:
City Attorney
By
David a.Brearley
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