Resolution No. 2012-190RESOLUTION NO. 2012-190
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
i
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AMENDED INTERIM INTERRUPTIBLE SERVICE RATE
AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
MATHESON TRIGAS
WHEREAS, the City of Vernon provides interruptible electric
service to Matheson Trigas ("Matheson") pursuant to an Interruptible
Service Agreement (the "Agreement") executed on September 18, 2006;
and
WHEREAS, under the Agreement, Matheson agrees to disconnect
its load within thirty (30) minutes of receiving notice from the Light
& Power Department; and
WHEREAS, under the Agreement, Matheson receives a monthly
bill credit per kW -month for all interruptible demand Matheson
committed to curtail at the time of interruption and
WHEREAS, on August 21, 2012, the City Council of the City of
Vernon adopted Resolution No. 2012-166 approving an Interim
Interruptible Service Rate.Agreement (the "Interim Agreement") to
provide an incentive to Matheson to keep its operations in Vernon and
maintain its electricity usage at historical levels while further
studies are conducted; and
WHEREAS, the City and Matheson agreed that the City Attorney
may review and revise the Interim Agreement provided that the
negotiated provisions of sections one through five shall not be
substantively changed; and
WHEREAS, by memorandum dated September 20, 2012, the
Director of Light & Power has requested the approval of the revised
Interim Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the revised Interim Interruptible Service Rate Agreement (the
"Interim Agreement") with Matheson Trigas, in substantially the same
form as the copy which is attached hereto as Exhibit A.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute the Interim
Agreement, for and on behalf of, the City of Vernon; and the Acting
City Clerk, or Deputy City Clerk, is hereby authorized to attest
thereto.
SECTION 4: The City Council of the City of Vernon hereby
instructs the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution,
including but not limited to, making any non -substantive changes to
the Interim Agreement attached herein.
SECTION 5: The City Council of the City of Vernon hereby
directs the Acting City Clerk, or the Acting City Clerk's designee, to
send a fully executed Interim Agreement to Matheson.
_2-
SECTION 6: The Acting City Clerk of the City of Vernon
shall certify to the passage, approval and adoption of this resolution,
and the Acting City Clerk of the City of Vernon shall cause this
resolution and the Acting City Clerk's certification to be entered in
the File of Resolutions of the Council of this City.
ATT
APPROVED AND ADOPTED this 2nd day of October, 2012.
, Acting City Clerk
Name: William J. Davis
Title: crf--/ Mayor Pro-Tem
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Dana Reed, Acting City Clerk of the City of Vernon, do hereby.
certify that the foregoing Resolution, being Resolution No. 2012-190,
was duly passed, approved and adopted by the.City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Tuesday, October 2, 2012, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this LIII% day of October, 2012, at Vernon, California.
(SEAL)
D a Reed, Acting City Clerk
_4-
EXHIBIT A
INTERIM INTERRUPTIBLE SERVICE RATE AGREEMENT
This Interim Interruptible Service Rate Agreement ("Interim Agreement") is entered into this
Day of , 2012 by and between the CITY OF VERNON ("Vernon")
and Matheson Tri-Gas, Inc. ("Customer").
WHEREAS, Vernon provides interruptible electric service to Customer, under Schedule TOU-1
pursuant to an Interruptible Service Agreement executed on September 181h, 2006 ("2006
Agreement"); and,
WHEREAS, pursuant to the 2006 Agreement, Customer agreed to disconnect load within 30
minutes of receiving notice from Light and Power Department; and,
WHEREAS, under Schedule TOU-I, Customer receives monthly bill credit per kW month for all
interruptible demand Customer committed to curtail at a time of interruption; and,
WHEREAS, at Customer's request, Vernon staff reviewed the interruptible service bill credit
offered by another utility where Customer's other facility is located; and,
WHEREAS, Vernon staff analysis confirmed that the bill credit offered by Vernon is lower than
the credit offered by the other utility; and
WHEREAS, Exhibit -IA to this Interim Agreement shows the additional billing under the currently
effective Vernon rate schedule; and,
WHEREAS, Vernon has committed to conduct further studies to determine terms and
conditions for the provision of interruptible services in the future; and,
WHEREAS, Customer is among the largest electric users in Vernon; and,
WHEREAS, this Interim Agreement will provide incentive for Customer to keep'its operations in
Vernon and maintain its electricity usage at historical levels while further studies are
conducted; and,
WHEREAS, the interruptible service purchased by Customer is a resource to Vernon as it is a
component of Vernon's resource adequacy requirement compliance portfolio; and,
WHEREAS, this Interim Agreement gives Vernon sufficient time to study terms and conditions
for the provision of interruptible services in the future.
NOW, THEREFORE IT IS AGREED AS FOLLOWS:
1. Subject to approval by the Vernon City Council, this Interim Agreement will be in effect
for the twelve (12) month period beginning July 1, 2012 and ending June 30, 2013.
2. Customer Agrees to continue receiving interruptible electric service pursuant to the
terms and conditions of the 2006 Agreement and the TOU-I rate Schedule, except as
provided for below.
3. Customer agrees to maintain a minimum monthly electricity and demand usage level no
lower than Customer's lowest monthly electricity usage and lowest peak demand set
during the period between July 1, 2011 and June 30, 2012 ("Minimum Load").
4. Customer's monthly bill will be credited $14.70 per KW month for all kW in excess of the
Customer specified Firm Demand level as described in the 2006 Agreement.
5. If for any month, except February, the Customer's usage falls below the Minimum Load
level, unless due to Acts of God or war, civil disturbance, labor problems, beyond
Customer's control, or other reasons beyond Customer's control (but specifically
excluding economic issues experienced by Customer), Customer will not be entitled to
the monthly bill credit as contemplated in Section 4 above.
6. Vernon has appointed anew City Attorney who is scheduled to assume office on
September 10, 2012. Vernon and Customer agree that the new City Attorney may
review and revise this Interim Agreement; provided, however, that the negotiated
provisions of Sections 1-5 above shall not be substantively changed.
CITY OF VERNON
M
William Davis, Mayor Pro Tern
ATTEST:
Dana Reed, Acting City Clerk
APPROVED AS TO FORM:
Nicholas Rodriguez, City Attorney
MATHESON TRI-GAS
BY:
BY:
IWAMIMINIM
Month
Billing Difference
January
$152,285.90
February
$152,900.95
March
$139,969.47
April
$152,172.67
May
$183,814.94
June
$55,878.63
July
$269,188.56
August
$209,172.14
September
$259,272.17
October
$187,041.83
November
$153,899.70
December
$152,229.44
Total
$2,067,826.40
RECEIVED
SEP252012
CITY CLERK'S OFFICE
STAFF REPORT
LIGHT & POWER
DATE: September 20, 2012
TO: Honorable Mayor and City Council
FROM: Carlos R. Fandino, Jr., Director of Light & Power C w
RE: MathesonTri-Gas Interim Interruptible Agreement
PURPOSE
RECEIVED
SEP 2 4 2012
CITY ADMINISTRATION
On August 21, 2012, City Council, by Resolution No. 2012-166, adopted an Interim
Interruptible Service Agreement with Matheson Tri-Gas which increased the bill credit
per kW month for all interruptible demand.
Vernon and Matheson Tri-Gas agreed that the City's new City Attorney may review and
revise this Interim Agreement provided that the negotiated provisions of Sections 1-5
shall not be substantively changed. Matheson Tri-Gas proposed to add additional
language to section number 5 of the agreement. The Interim Agreement has been
revised to reflect the additional language, and approved as to form by the City Attorney.
RECOMMENDATION
It is recommended that the Matheson Tri-Gas Interim Interruptible Agreement be
considered for approval by City Council at the October 2, 2012 meeting.
CRF:ah
Attachment
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�Vf'iY fNOJ
CITY ATTORNEY'S OFFICE
INTER -DEPARTMENT MEMORANDUM
DATE: September 24, 2012
TO: Carlos Fandino, Director of Light & Power
FROM: Nicholas Rodriguez, City Attorney
RE: Matheson Tri-Gas Interim Interruptible
The amended interim interruptible service rate agreement for the
above -referenced matter is approved as to form.
NR:em
Enclosures
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INTERIM INTERRUPTIBLE SERVICE RATE AGREEMENT
This Interim Interruptible Service Rate Agreement ("Interim Agreement") is entered into this
Day of , 2012 by and between the CITY OF VERNON ("Vernon")
and Matheson Tri-Gas, Inc. ("Customer").
WHEREAS, Vernon provides interruptible electric service to Customer, under Schedule TOU-1
pursuant to an Interruptible Service Agreement executed on September 18t', 2006 ("2006
Agreement"); and,
WHEREAS, pursuant to the 2006 Agreement, Customer agreed to disconnect load within 30
minutes of receiving notice from Light and Power Department; and,
WHEREAS, under Schedule TOU-I, Customer receives monthly bill credit per kW month for all
interruptible demand Customer committed to curtail at a time of interruption; and,
WHEREAS, at Customer's request, Vernon staff reviewed the interruptible service bill credit
offered by another utility where Customer's other facility is located; and,
WHEREAS, Vernon staff analysis confirmed that the bill credit offered by Vernon is lower than
the credit offered by the other utility; and
WHEREAS, Exhibit -IA to this Interim Agreement shows the additional billing under the currently
effective Vernon rate schedule; and,
WHEREAS, Vernon has committed to conduct further studies to determine terms and
conditions for the provision of interruptible services in the future; and,
WHEREAS, Customer is among the largest electric users in Vernon; and,
WHEREAS, this Interim Agreement will provide incentive for Customer to keep its operations in
Vernon and maintain its electricity usage at historical levels while further studies are
conducted; and,
WHEREAS, the interruptible service purchased by Customer is a resource to Vernon as it is a.
component of Vernon's resource adequacy requirement compliance portfolio; and,
WHEREAS, this Interim Agreement gives Vernon sufficient time to study terms and conditions
for the provision of interruptible services in the future.
NOW, THEREFORE IT IS AGREED AS FOLLOWS:
1. Subject to approval by the Vernon City Council, this Interim Agreement will be in effect
for the twelve (12) month period beginning July 1, 2012 and ending June 30, 2013.
2. Customer Agrees to continue receiving interruptible electric service pursuant to the
terms and conditions of the 2006 Agreement and the TOU-1 rate Schedule, except as
provided for below.
3. Customer agrees to maintain a minimum monthly electricity and demand usage level no
lower than Customer's lowest monthly electricity usage and lowest peak demand set
during the period between July 1, 2011 and June 30, 2012 ("Minimum Load").
4. Customer's monthly bill will be credited $14.70 per KW month for all kW in excess of the
Customer specified Firm Demand level as described in the 2006 Agreement.
5. If for any month, except February, the Customer's usage falls below the Minimum Load
level, unless due to Acts of God or war, machinery breakdowns, civil disturbance, labor
problems, beyond Customer's control, or other reasons beyond Customer's control (but
specifically excluding economic issues experienced by Customer), Customer will not be
entitled to the monthly bill credit as contemplated in Section 4 above.
6. Vernon has appointed a new City Attorney who is scheduled to assume office on
September 10, 2012. Vernon and Customer agree that the new City Attorney may
review and revise this Interim Agreement; provided, however, that the negotiated
provisions of Sections 1-5 above shall not be substantively changed.
CITY OF VERNON
William Davis, Mayor Pro Tern
ATTEST:
Dana Reed, Acting City Clerk
APPROVED AS TO FORM:
Nicholas Rodriguez, City Attorney
MATHESON TRI-GAS
BY:
EXHIBIT - IA
Month
Billing Difference
January
$152,285.90
February
$152,900.95
March
$139,969.47
April
$152,172.67
May
$183,814.94
June
$55,878.63
July
$269,188.56
August
$209,172.14
September
$259,272.17
October
$187,041.83
November
$153,899.70
December
$152,229.44
Total
$2,067,826.40
INTERIM INTERRUPTIBLE SERVICE RATE AGREEMENT
2. Customer Agrees to continue recewing interruptible electric service pursuan"t to the
Month
Billing Difference
January
$152,285,90
February
$152,900.95
March
$139,969.47
April
$152,172.67
May
$183,814.94
June
$55,878.53
July
$269,188.56
August
$209,172.14
September
$259,272.17'
October
$187,041.83
November
$153,899,70
December
$152,229.44
Total
$2,067 8'26.40
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
October 2, 2012
Bill Tolen
Matheson Tri-Gas
5555 District Blvd.
Vernon, CA 90040
Re: Interim Interruptible Service Rate Agreement
Dear Bill:
Attached are two (2) originals of the Interruptible Service Rate Agreement. Please have
your authorized officers execute both originals and return to my attention via overnight
courier:
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attn: Carlos R. Fandino, Jr.
(323) 583-8811
Sinc
erely,
`DaJr.
Director of Light & Power
CF:df
Attachments
Two (2) original Agreements
Exhibit— 1A
Excfusivefy Industriaf
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
October 29, 2012
Bill Tolen
Matheson Tri-Gas
5555 District Blvd
Vernon, CA 90040
RE: Resolution No. 2012-190 — A Resolution of the City Council of the City of Vernon
Approving and Authorizing the Execution of an Amended Interim Interruptible Service Rate
Agreement By and Between the City of Vernon and Matheson Trigas
Dear Mr. Tolen:
Transmitted herewith is a copy of the material that was approved by City Council on October 2,
2012. Please be advised that the enclosed agreement includes the revised language as approved
by City Council.
If you have any questions regarding this matter, please contact me at (323) 583-8811 ext. 286
Very trul ours,
Ana Barcia
Deputy City Clerk
AB/yb
Enclosure
C: Carlos R. Fandino
Audra Hunter
Tania Tolmasoff
Resolution No. 2012-190
Exclusively Industriaf
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: October 29, 2012
TO: Carlos R. Fandino, Director of Light and Power
FROM: Ana Barcia, Deputy City Clerk �O
RE: Resolution No. 2012-190 — A Resolution of the City Council of the City of Vernon
Approving and Authorizing the Execution of an Amended Interim Interruptible Service
Rate Agreement By and Between the City of Vernon and Matheson Trigas
Transmitted herewith is a copy of Resolution No. 2012-190 referenced above, which was approved by
City Council on October 2, 2012.
Thank you.
Attachment
c: Resolution No. 2012-190
Audra Hunter
Tania Tolmasoff