Resolution No. 4936
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RESOLUTION NO. 4936
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING THE EXECUTION OF A FIFTH
CONTRACT BY AND BETWEEN BETHLEHEM STEEL
CORPORATION AND THE CITY OF VERNON WHICH
PROVIDES FOR ELECTRICAL SERVICES
6 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, 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 Bethlehem Steel
19 Corporation have entered into four previous agreements and it
20 is not necessary to enter into a fifth agreement to incorporate
21 the recommendations contained in Mr. Clay's rate report in
22 accordance with certain restrictions which would reimburse to
23 the City of Vernon all costs associated with providing said
24 services to Bethlehem Steel Corporation.
25 NOW, THEREFORE I BE IT RESOLVED BY THE CITY COUNCIL
26 OF 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
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.
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SECTION 3: That the City Clerk of the City of Vernon
9 shall certify to the passage of this Resolution and thereupon
10 and thereafter the same shall be in full force and effect.
11 APPROVED AND ADOPTED this 17th day of August, 1982.
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~~ ~>t)U!V
THOMAS A. YB~RA, Mayor Pro
Tem
ATTEST:
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BRUCE V. MALKENH RST, City Clerk
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SSe
1 STATE OF CALIFORNIA
2 COUNTY OF LOS ANGELES
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of
5 Verno.n, do hereby certify that the foregoing Resolution, being
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Resolution No. 4936
, was duly adopted by the City Council
7 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,
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August 17
I 1982.
&.~
BRUCE~ST .C~tYClerk
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FIFTH
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 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
BETHLEHEM STEEL CORPORATION
Pacific Coast Division
3300 East Slauson A.venue
Vernon, CA 90058
(hereinafter referred to as
"Bethlehem Steel ")
RECITALS
WHEREAS, the City in Ordinance No. 911 initially established
a special cont.ract 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 "on-pe<:l.k" periods; and
WHEREAS, the City 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
consult<:l.nt, Baker G. Clay of Baker G. Glay & Associates, Inc" cont<:l.ined
EXHIBIT J
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in his report on rate design heard and considered in a public hearing
on July 13, 1982; and
WHEREAS, the city and Bethlehem Steel have entered into four
previous agreements and it is now necessary to enter into a fifth
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 Bethlehem Steel.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS,
PROMISES AND CONDITIONS HEREINAFTER SET FORTH, THE PARTIES HERETO AGREE
AS FOLLOWS:
SECTION 1: Special Contract Operatin9 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: liOn-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.
c.ommencing 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, Thanksgiving Day, and Christmas.
SECTION 3: Billing Demanq.
The billing demand shall be the kilowatts of maximum lion-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.
~-qhere demand is intermittent or subj ect 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 ra.tes provided for
in said Ordinanc~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 by the Southern
California Edison Company. Therefore, new.rates including the surcharge
shall be effective in accordance with said resolution.
Bethlehem Steel agrees to pay the following rates and surcharg~
during the t~rm of this Agreement and City agrees to make the following
charges during the term of this Agre.ement.
PER METER
PER MONTH
Demand Charge:
First 6/000 KWS or less of billing d~mand
All excess KWS of billing demand, per KW
$ 135/000.00
$ 8.00
Demand Charge Including Surcharge:
first 6/000 KWS or less of billing demand
All excess KWS of billing demand, per KW
$ 143,937.00
$ 9.75
Energy Charge (to be added to Demand Charge) :
All KWH, per KWH
5.013~
Minimum Charge:
The monthly minimum charge shall be the
monthlY demand
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EnergyCost~djustment 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
ClPplied to the energy consumed by Beth~ehem Steel
in .thesame fashion as if Bethlehem Steel were
still.part of the A-8 classification.
Power Factor ~djustment:
The charges will be Cldjusted each month for reactive
demand. The charges will be increased by twenty cent.s
(20i) peJ:' 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 any30-minute metered interval in
the month. The kilovars shall be determined to .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 t.he
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 I no
adjustments will be made for a temporary discontinuance of service.
The customer prior to resuming service I after such service was
discontinued, will be required to pay all charges which would have
been billed if the service had not been discontinued.
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SECTION 8: Monthl\, 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.
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Part G of the Preliminary Statement. The applicable energy cost and
Cadjustment billing factors will be applied to KWH's billed 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 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
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, 911, 915 and 929 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 itsrelatiol)ship
to the Vernon A.-8 Schedule, said dispute shall be .resolvedby agreeJUent
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.
SECTION 12: Off-Peak Demand.
Bethlehem Steel's maximum demand during the off-peak period
sha11be 60,000 kW.
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IN WITNESS WHEREOF the parties hereto have executed this
Contract I or caused it to be executed as of the day, month and year
first above written.
CITY OF VERNON
By ~~a1J:~ Tern
ATTEST:
By
Bruce V. Nalkenhorst, City Clerk
BETHLEHEM STEEL CORPORATION
By
APPROVED AS TO FOR11:
City Attorney
By
David B. Brearley'
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