HomeMy WebLinkAboutAgenda Report - October 1, 2003 I-02CITY OF LODI
2=o
COUNCIL COMMUHICATION
AGENDA TITLE: Adopt a resolution authorizing the City Manager to execute new contracts between
current industrial contract customers and/or new contract customers and the City of
Lodi (EUD) that will transition these customers to a standard rate over a three or four
year period (EUD)
MEETING DATE: October 1, 2003
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute new
contracts between current industrial contract customers and/or new
contract customers and the City of Lodi (EUD) that will transition these
customers to a standard rate over a three or four year period.
BACKGROUND INFORMATION: Before the energy crisis of 2001, contracts were undertaken with large
industrial customers at a time when power costs were substantially
below today's costs. Also, when these contracts were
undertaken, a non -permanent economic development incentive was part of the contract structure. Some of
these contracts were at retail rates on the order of 5 cents a kilowatt-hour and have not changed forover 5
years. These rates are substantially below our cost of power currently, 7 to 8 cents a kilowatt-hour. Other
customers have seen substantial bill change in the last two years.
These contracts have expired. The Electric Utility Department (EUD) proposes to transition these
customers to a regular EUD rate over a four-year period that the customer is eligible for given their level of
consumption. Most of these contracts will transition to 1-1. This 1-1 rate is highly competitive and is the rate
that General Mills is under. The four-year transition period should allow these customers to adjust. In
addition, new significant customers will be transitioned in a similar manner as an economic development
tool.
The following customers will be under a transition rate contract:
o f
CertainTeed
Schaefer Systems, Inc
Pacific Coast Producers
The contract methodology that specifies the transition is the same across all contracts. A sample contract
is attached. The actual transition rates vary by customer; each customer transition rate sheet is attached.
The following customer is under a significant new customer contract:
Epic Plastics
APPROVED:
H. Dixon Flynn - City Manager
CITY OF LODI
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The Epic contract is attached.
COUNCIL COMMUNICATION
FUNDING: None:
/ jz4�lk
Alan N. Vailow
Electric Utility Director
PREPARED BY:
ANVIBPAst
C: City Attorney
Finance Director
Boris Prokop, Power Supply & Rates Manager
Apmovm
H. Dixon Flynn - City Manager
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt a resolution authorizing the City Manager to execute new contracts between
current industrial contract customers and/or new contract customers and the City of
Lodi (EUD) that will transition these customers to a standard rate over a three or four
year period
MEETING DATE: October 1st, 2003
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute new
contracts between current industrial contract customers and/or new
contract customers and the City of Lodi (EUD) that will transition
these customers to a standard rate over a three or four year period.
BACKGROUND INFORMATION: Before the energy crisis of 2001, contracts were undertaken with large
industrial customers at a time when power costs were substantially
below today's costs. Also, when these contracts were
undertaken, a non -permanent economic development incentive was part of the contract structure. Some
of these contracts were at retail rates on the order of 5 cents a kilowatt-hour and have not changed for
over 5 years. These rates are substantially below our cost of power currently, 7 to 8 cents a kilowatt-
hour. Other customers have seen substantial bill change in the last two years.
These contracts have expired. The Electric Utility Department (EUD) proposes to transition these
customers to a regular EUD rate over a four-year period that the customer is eligible for given their level of
consumption. Most of these contracts will transition to 1-1. This 1-1 rate is highly competitive and is the rate
that General Mills is under. The four-year transition period should allow these customers to adjust. In
addition, new significant customers will be transitioned in a similar manner as an economic development
tool.
The following customers will be under a transition rate contract:
Cottage Bakery
Lodi Iron Works
CertainTeed
Schaefer Systems, Inc
Pacific Coast Producers
The contract methodology that specifies the transition is the same across all contracts. A sample contract
is attached. The actual transition rates vary by customer; each customer transition rate sheet is attached.
The following customer is under a significant new customer contract:
Epic Plastics
The Epic contract is attached.
APPROVED:
H. Dixon Flynn - City Manager
yC
Q
CITY OF I
l /FO S
The Epic contract is attached.
FUNDING: None:
COUNCIL COMMUNICATION
Alan N. Vallow
Electric Utility Director
PREPARED BY: Boris Prokop, Power Supply & Rates Manager
ANVIBPIIst
C.- City Attorney
Finance Diredor
APPROVED:
nn - city Manager
RATE AGREEMENT
BETWEEN
Cottage Bakery
AND
THE CITY OF LODI
This Agreement is made by and between Cottage Bakery ("Customer") and the CITY OF LODI ("City"),
collectively called "the Parties" and individually as "Parry". This Agreement supersedes the City's mandatory
Rate Schedule assignment for this Customer.
WITNESSETH:
WHEREAS, City operates an electric utility system supplying electric power to City customers; and
WHEREAS, Customer is a customer whose rate agreement contract between the City has expired; and
WHEREAS, City desires to transition the Customer to their eligible rate schedule over a four year period so
as to mitigate the immediate effects of coming under the eligible rate; and
NOW, THEREFORE, the Parties hereto agree as follows:
Section 1. Definitions. Whenever used in this Agreement, in either the singular or plural number, the
following temps shall have the following respective meanings
1.1 "Agreement" is this contract.
1.2 "City" is the City of Lodi, a California Municipal Corporation.
1.3 "Customer" is "Facility" is the Customer's facility receiving service as defined in Exhibit A.
1.4 "Account" is defined in Exhibit A for the Customer.
1.6 "Parties" are collectively Customer and City.
1/8
1.7 "kWh" is a kilowatt-hour, an energy charge billing unit.
1.8 'billing cycle" is the monthly bill.
1.9 "Force Majeure", as used herein, means unforeseeable causes beyond the reasonable control of
and without the fault or negligence of the Parry claiming force majeure. Such an occurrence may
include, but is not limited to, acts of God, labor disputes, sudden actions of the elements, actions
or inactions by federal, state and municipal agencies, and actions or inactions of legislative,
judicial, or regulatory agencies.
1.10 "eligible rate" is the scheduled rate at which the Customer would qualify given historical
consumption as per accounts totalized in Exhibit A.
1.11 "totalization" is the aggregation of individual meter data so as to create a single billed account
under a single rate schedule.
1.12 "current actual average rate winter/summer" is the average based on the total energy charges,
demand charges and special discounts totaled divided by total energy (kWh) that apply to the
contract accounts defined in Exhibit A for a typical actual monthly bill in the season designated
for the annual period before the start of the anticipated phase of rate transition.
1.13 "current eligible average rate winter/summer" is the average based on the total energy charges,
demand charges and market cost adjustments and other normal applicable charges totaled
divided by total energy (kWh) that apply to the contract accounts defined in Exhibit A for the
eligible rate utilizing actual billed energy and demand available from the current actual bill average
rate determination by season.
2/8
Section 2. Rate Application.
2.1 The billing cycle charge for the Customer shall transition to the eligible rate for the Facilities and Accounts
defined in Exhibit A over a four year phased transition. Exhibit A also defines what Facilities and Accounts will
be totalized or treated as individual facilities for Billing purposes. There shall be four phases to the transition to
M billing under the eligible rate as follows:
oo Phase I October 1, 2003 to September 30th, 2004, Phase Setting = 3
oo Phase II October 1, 2004 to September 30th, 2005, Phase Setting =3
oo Phase III October 1, 2005 to September 30th, 2006, Phase Setting =2
oo Phase IV October 1, 2007 on
The first three phases will provide a transition rate that is at a discount of the current eligible. At the fourth phase the
Customer will be at the eligible rate and the contract will expire with normal rate procedures applying. In the two
months before the commencement of Phases I to III, a determination of the phased rates will be made. The current
average winter rate and average summer rate will be determined. The average eligible winter rate and summer rate
will be determined for the eligible rate schedule. The transition rates will be the eligible rate schedule by season
discounted by the transition percentage. The transition percentage is calculated by season and is determined as
follows:
Where "A" equals seasonal average rate;
"E" equals seasonal eligible rate;
"P" equals phase setting from above;
"/" Is a divide operator;
"*" Is a multiply operator;
66^99 Is a to the power operator;
Transition Percentage = (A*(E/A)^(1/P))/E
3/8
The transition percentage holds only for the coming phase. A new transition percentage is determined before the
start of each phase. If the transition percentage exceeds 100%, the eligible rates apply. The City shall provide the
Customer a copy of the determined transition discounted rates before the start of a new transition Phases I to III.
Section 3. Term of Agreement.
3.1 Upon signing by all Parties, this Agreement shall be binding for bills rendered on or after October
1st, 2003, and shall remain in effect subject to Paragraphs 3.2 and 3.3 below, for bills rendered
through September 30th, 2007.
3.2 If either party fails to perform any of the provisions of this Agreement, the other party may, by
written notice given within thirty days of such failure to perform, terminate this agreement.
Customer may appeal such termination in writing to the Electric Utility Director. This is in
addition to any other legal recourse Customer may have.
3.3 This Agreement cannot be terminated without mutual consent of the Parties.
Section 4. Force Maieure.
4.1 If either Party because of Force Majeure is rendered wholly or partly unable to perform its
obligations under this Agreement, that Party shall be excused from whatever performance is
affected by the Force Majeure to the extent so affected, provided that:
The nonperforming Party, within two weeks after the occurrence of the Force Majeure, shall
give the other party a written report describing the particulars of the occurrence.
The suspension of performance is of no greater scope and of no longer duration than is required
by the Force Majeure.
4.2 No obligations of either Party which arose before the occurrence causing the suspension of
performance are excused as a result of the occurrence.
SM
4.3 The non-performing Party uses its best efforts to remedy its inability to perform. This sub-
paragraph shall not require the settlement of any strike, walkout, lockout or other labor dispute
on terms which, in the sole judgement of the Party involved in the dispute, are contrary to its
interest. It is understood and agreed that the settlement of strikes, walkouts, lockouts or other
labor disputes shall be entirely within the discretion of the Party having the difficulty.
Section 5. Assi
5.1 Neither Party shall voluntarily assign its rights nor delegate its duties under this Agreement
without the written consent of the other Party.
Section 6. Amendments.
6.1 This Agreement may be amended only by written instrument executed by the Parties or their
successors.
Section 7. Severability.
7.1 In the event that any of the terms, covenants, or conditions of this Agreement shall be held
invalid, the Parties intend that all other terms, covenants, and conditions and their application
shall not be affected thereby, but shall remain in force and effect unless a court holds that such
provisions are not severable from all other provisions of this Agreement.
Section 8. Governing Law.
8.1 This Agreement shall be interpreted, governed by, and construed under the laws of the State of
California.
Section 9. Counterparts.
9.1 This Agreement may be executed in counterparts, all or any of which shall be regarded for all
purposes as one original and shall constitute and be but one and the same instrument.
5/8
Section 10. Headings.
10.1 The headings to the articles in this Agreement are intended for convenience only and not for the
purpose of interpreting the provisions of this Agreement.
Section 11. Notices.
11.1 Any notice, demand or request required or permitted to be given by either Party to the other and
any instrument required or permitted to be tendered or delivered by either Party to the other may
be so given, tendered or delivered, as the case may be, by depositing the same in any United
States Post Office with postage prepaid, for transmission by certified or registered mail,
addressed to the Party, or personally delivered to the Party, at the address designated below.
Changes in such designation may be made by notice similarly given.
11.2 All written notices or questions shall be directed as follows:
To City: ELECTRIC UTILITY DIRECTOR
CITY OF LODI
1331 SOUTH HAM LANE
LODI CA 95242-3995
To Customer: Cottage Bakery
40 E. Neuharth Drive
Lodi, CA 95240
Section 12. Non -waiver.
12.1 None of the provisions of the Agreement shall be considered waived by either Party except
when such waiver is given in writing. The failure of any Parry at any time or times to enforce any
right or obligation with respect to any matter arising in connection with this Agreement shall not
constitute a waiver as to future enforcement of that right or obligation or any right or obligation of
the Agreement.
Section 13. Warranty of Authority
13.1 Each of the Parties which has executed and delivered this Agreement represents and
warrants that it has agreed to be bound by all the terms, covenants, and conditions of this
Agreement and has acted with all the requisite capacity and authority and approval of its
governing body.
7/8
IN WITNESS THEREOF, the Parties have caused this Agreement to be executed by their
duly authorized officers and their seal to be affixed, as of the day and year herein written.
CITY OF LODI
H. Dixon Flynn
City Manager
Date
Approved as to Form:
Randall A. Hays
City Attorney
ATTEST:
Susan J. Blackston
City Clerk
COTTAGE BAKERY
CADocuments and SetfingAjperrin\Local Settings\Temporary Internet Files\OLKCAoottage bakery transifion rate oontract.doc
Terry Knutson
President
Date
Exihibit A
Customer Name: Cottage Bakery
Current Contract Accounts
Current Rate
Primary/Secondary
Meter
Account #
Location Designation
Location Address
C
Secondary/Totalized
35928
4553-4
40 E. Neuharth Dr.
All meters are
D1
Secondary/Totalized
29871
4553-4
40 E. Neuharth Dr.
labled according
D2
Secondary/Totalized
29872
4553-4
40 E. Neuharth Dr.
to letters
D3
Secondary/Totalized
29873
4553-4
40 E. Neuharth Dr.
B
Secondary/Totalized
30013
4553-4
40 E. Neuharth Dr.
If eligible rate does not have a secondary rate, the rate will be the primary rate plus 5%
Transition rate discount does not aoDly to new facility below
Rate Primary/Secondary Meter Account # Location Designation Location Address
1-1 Secondary 35784 49663-8 Inside Facilitv S. End 1831 S. Stockton
Transition Rate Sheet For Phase I starting September 1, 2003 for Cottage
Transition Discount Determination Given 11 + 5% as eligible Rate
Four Phases
Cottage Summer
Actual (A)
Phase 1 10/1/2003
Possible
Phase 2 10/1/2004
Possible
Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
1,762,721
1,762,721
1,762,721
1,762,721
1,762,721
Bill $
87,408.94
$ 104,936.26
$ 118,554.51
$ 133,940.10
102,395.75
% annualchan a
20%
13%
13%
13%
Ave rate
0.0496
0.0595
0.0673
0.0760
0.0858
as x/eli ible
58%
69%
78%
89%1
100%
Transition Discount
I%
141%
112%
69%
$ -
1
0
eligible actual, E A
(E/A)^(1/# phases)
173%
120%
ustomer c arge
u + °;eligi;a or 5 meters
is 12
4i
Cottage Winter
Actual (A)
Phase 1 10/1/2003
Possible
Phase 2 10/1/2004
Possible
Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
1,442,004
1,442,004
1,442,004
1,442,004
1,442,004
Bill $
72,682.23
$ 81,469.79
$ 87,920.81
$ 94,882.65 $
102,395.75
%annualchan a
12.1%
7.9%
7.9%
7.9%
Ave rate
0.0504
0.0565
0.0610
0.0658
0.0710
% as x/eli ible
71%
80%
89%
93%1
100%
Transition Discount
eligible actual, E A
I(E/A)^(1/# phases)
141%
112%
30%1
$ -
1
0
Transition Rates given Transition Discount
version aiiziuj
SUMMER
Phase 110/1/03-9/30/04
WINTER
Phase 110/1/03-9/30/04
Demand
Seconda $/kw
Demand
Seconda $/kw
Max Kw
$ 2.20
Max Kw
$ 2.52
Peak Demand
$ 7.46
Peak Demand
Energy
Secondary $/kwh
Kwh
Secondary $/kwh
Off Peak
$ 0.0414
Off Peak
$ 0.0470
Partial
$ 0.0522
Partial
$ 0.0533
Peak
$ 0746
Peak
$ -
MCA
0
MCA
0
ustomer c arge
u + °;eligi;a or 5 meters
is 12
4i
version aiiziuj
Exihibit A
Customer Name: LODI IRON WORKS
Current Contract Accounts
Rate Primary/Secondary Meter Account # I Location Designation Location Address
X001 Primary 30006 12833-0 1 Pole on Vine Street ( LIW1) 1 840 S. Sacramento St.
Non Contract Accounts
The following Accounts will be added to the transition rate schedule in Phase II
Rate
Primary/Secondary
Meter
Account #
Location Designation
Location Address
G11
Secondary
21568
12831
Inside Roll up Door
817 S. Sacramento St.
G13
Secondary
11226
12830
Inside Quanset N. Wall
810 S. Saramento St.
G2
Secondary
29585
12832
N. End Quanset Hut
820 S. Sacramento St.
G3
Secondary
35782
12833
Molding room (LIW2)
840 S. Sacramento St
Transition Rate Sheet For Phase I starting October 1, 2003 for Lodi Iron
Transition Discount Determination Given 11 + 5% as eligible Rate
Four Phases
Lodi Iron Works
SUMMER
Actual (A)
Phase 1 10/1/2003
Possible
Phase 2 10/1/2004
Possible
Phase 3 10/1/2005
Eligible Rate (E)
Contract End
1-1 10/1/2006
Kwh
208,800
208,800
208,800
208,800
208,800
Bill
$
12,390.06
$ 13,800.54
$ 14,828.97
$ 15,934.05
$ 17,121.49
% annualchan e
1 $ 2.431
$ 2.56
11%
7%
7%
7%
Ave rate
$
0.0593
$ 0.0661
$ 0.0710
$ 0.0763
$ 0.0820
% as x/eli ible
1
72%
81%1
87%
93%
100%
Transistion Discount
Prima kwh
81%
Prima kwh
Secondary
Eligible/Actual , E A
(E/A)^(1/3)
WINTER
Actual (A)
138%
111%
Phase 1 10/112003
Possible
Phase 2 10/1/2004
Possible
Phase 3 10/1/2005
Eligible Rate
Contract End
1-1 10/1/2006
Kwh
$ 0.0717
164,400
164,400
164,400
164,400
164,400
Bill
$
10,667.77
$ 11,725.36
$ 12,887.80
$ 13,300.20
$ 14,165.25
% annualchan e
-
10%
7%
7%
7%
Ave rate
fullmeter charge
0.0649
0.0713
0.0760
0.0809
0.0862
% as x/eli ible
75%
83%
88%1
94%
100%
Transition Discount
83%
Eligible/Actual , (E/A)
(E/A)^(1 /3)
1
133%
110%
Transition Rates given Transition Discount
Version 9/22/03
SUMMER
Phase 19/1/03-8/31/04
WINTER
Phase 19/1/03-8/31/04
Demand
Prima($/kw)
Secondary
Demand
Prima($/kw)
Seconda
Max Kw
1 $ 2.431
$ 2.56
Max Kw
$ 3.02 1
$
3.17
Peak Demand
1 $ 8.26 1
$ 8.67
Peak Demand
Energy
Prima kwh
Kwh
Prima kwh
Secondary
Off Peak
$ 0.0569
$ 0.0597
Off Peak
$ 0.0562
$
0.0590
Partial
$ 0.0717
$ 0.0753
Partial
$ 0.0638
$
0.0670
Peak
$ 0.1024
$ 0.1075
Peak
$
-
MCA
-
MCA
-
us omer charge @
fullmeter charge
Version 9/22/03
Exhibit A
Customer Name: CertainTeed
Current Contract Accounts
Current Rate
Voltage
Meter
Account #
Totalize
Location Designation
Location Address
X003
Primary
35794
711-2
Single Primary at eligible rate
Pole on North Side
300 S. Beckman Rd.
X003
Secondary
35930
711-2
Both Secondary @ eligible rate +5 %
Blower Room North
300 S. Beckman Rd.
X003
Secondary
29862
711-2
Both Secondary @ eligible rate +5 %
Production Area South
300 S. Beckman Rd.
If eligible rate does not have a secondary rate, the rate will be the primary rate plus 5%; Totalize secondary as one channel
Primary not be totalized with secondary for billling but included with secondary to determine overall consumption eligibility
Version:9/22/03
Transition Rate Sheet For Phase I starting October 1, 2003 for CertainTeed
Transition Discount Determination Given 11 + 5% as eligible Rate
Four Phases I Eligible Rate (E)
eratinTeed Summer
Actual A
Phase 1 10/1/2003
Possible
Phase 2 10/1/2004
Possible
Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
1,223,600
1,223,600
1,223,6001
1,223,600
1,223,600
Bill $
53,491.47
$ 66,246.95
$ 76,398.83
$ 88,106.41
$ 101,608.10
% annualchan a
24%
15%
15%
15%
Ave rate
0.0437
0.0541
0.0624
0.0720
0.0830
% as x/eli ible
53%
65%
75%
87%
100%
Transition Discount
2.38
65%
$
6.68
$
eli ible actual, E A
(E/A)^(1/# phases)
190°°
124%
igi a Rate
CertainTeed Winter
Rate Change Schedule
Actual A
Phase 1 9/1/2003
Phase 2 9/1/2004
Eligible (E)
Phase 3 9/1/2005
Contract End
1-1 10/1/2006
Kwh
1,468,400
1,468,400
1,468,400
1,468,400
1,468,400
Bill $
64,118.24
$ 73,993.30
$ 81,407.76
$ 89,565.19
$ 98,540.03
% annualchan a
kwh
15%
10%
10%
10%
Ave rate
0.0437
0.0504
0.0554
0.06101$
0.0671
° as eligible 1
65%
75%
83%
91%
100%
Transition Discount 1
1
75%
0.05028
Peak
$
eli ible/actual, E/A 154%
(E/A)^(1/# phases) 1 115%
Transition Rates given Transition Discount Phase I only
version : vlzzlw
SUMMER
Phase 19/11/03-8/31/04
WINTER
Phase 19/1/03-8/31/04
Demand
Prima($/kw)
Seconds
$/kw
Demand
Prima($/kw)
Seconda
$/kw
Max Kw
$
1.97
$
2.07
Max Kw
$
2.27
$
2.38
Peak Demand
$
6.68
$
7.02
Peak Demand
Ener
Primary kwh
econdary
kwh
Kwh
Prima kwh
econda
kwh
Off Peak
$
0.03707
$
0.03892
Off Peak
$
0.04220
$
0.04431
Partial
$
0.04676
$
0.04910
Partial
$
0.04788
$
0.05028
Peak
$
0.06677
$
0.07011
Peak
MCA
0
0 MCA
0
$0,
us omer charge @
fulleligible
or 3 meters
version : vlzzlw
Exihibit A
Customer Name: Schaefer Systems
Current Contract Accounts
Rate Primary/Secondary Meter Account # Totalize Location Address
X004 Secondary 35927 31119-1 All Secondary 1250 E. Thurman St.
X004 Secondary 35925 31119-1 All Secondary 1251 E. Thurman St.
If eligible rate does not have a secondary rate, the rate will be the primary rate plus 5%
DRAFT Transition Rate Sheet ,Phase I starting October 1, 2003 for SCHAEFER
Transition Discount Determination given 1-1 plus 5% for secondary as the eligible rate I Englole
SUMMER
Actual (A)
Possible Possible
Phase 1 10/1/2003 Phase 2 10/1/2004Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
642,900
642,900
642,900
642,900
642,900
Bill
$28,846
$35,392
$40,561
$46,484
$53,275
% annual chane
Peak $ 0.07143
22.7%
14.6%
14.6%
14.6%
Ave rate
$ 0.0449
$ 0.0551 $
0.0631 $
0.0723
$ 0.0829
% as x/eligible
54%
66%
76%
87%
100%
Transition DiscoM
°
Eligible
WINTER
Actual (A)
Phase 1 10/1/2003 Phase 2 10/1/2004 Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
766,500
766,500
766,500
766,500
766,500
Bill
$34,344
$39,401
$43,178
$47,318
$51,857
% annual chane
14.7%
9.6%
9.6%
9.6%
Ave rate
$ 0.0448
$ 0.0514 $
0.0563 1$
0.0617
$ 0.0677
% as x/eligible
66%
76%
83%
91%
100%
ransi ioniscoun
°
Annual Bill
$379,141
$448,7531
$502,4341562,817
$630,794
Transition Rates given Transition Discount
version:9/22/03
SUMMER
Phase 110/1/03-9/30/04
WINTER
Phase 110/1/03-9/30/04
No Primary
Demand
Max Kw
Peak Demand
Kwh
Off Peak
Partial
Peak
MCA
Secondar
1 $
Secondary
$
$
$/kw No Primary
2.41
(9/—kw—h—)
0.04484
0.05087
0
Demand Seconda $/kw
Max Kw $ 2.11
Peak Demand $ 7.15
Energy Second a /kwh
Off Peak $ 0.03965
Partial $ 0.050031
Peak $ 0.07143
MCA 0
ustomer c arge
u -e igi a Tor 2 meters
version:9/22/03
Exihibit A
Customer Name: Pacific Coast Producers (PCP)
Current Contract Accounts
Transition Rate Sheet For Phase I starting October 1, 2003 for Pacific Coast Producers
Transition Discount Determination Given 11 + 5% as eligible Rate
Four Phases I Eligible Rate (E)
PCP
SUMMER
Actual
Possible Possible
Phase 1 10/1/2003 Phase 2 10/1/2004 Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
1,238,400
1,238,400
1,238,400
1,238,400
1,238,400
Bill
$
78,042
$ 86,978 $
93,499 $
100,507
$ 108,042
% annualchan e
11%
7%
7%
7%
Ave rate
Prima /kwh
0.0630
0.0702
0.0755
0.0812
0.0872
% as x/eli ible
Partial
72%
81%1
87%
93%
100%
Transition Discount
0
MCA
81%
ustomer charge @ fullel
igible for 3 meters
eli ible actual, E A
(E/A)^(1 /# phases)
1380/6
ill%[
Eligible Rate
PCP
WINTER
Actual
Possible Possible
Phase 1 10/1/2003 Phase 2 10/1/2004 Phase 3 10/1/2005
Contract End
1-1 10/1/2006
Kwh
43,200
43,200
43,200
43,200
43,200
Bill
$
2,221
$ 2,482 $
2,673 $
2,879
$ 3,100
% annualchan a
12%
8%
8%
8%
Ave rate
0.0514
0.0575
0.0619
0.06661
0.071761095
as x/eli ible
1
72%
80%
86%
93%
100%
Transition Discount
I
I
80%
eli ible/actual, E/A 140%
(E/A)^(1/# phases) 1 112%
Transition Rates given Transition Discount
Version 9/22/03
SUMMER
Phase 19/1/03-8/31/04
WINTER
Phase 1 9/1/03-8/31/04
Demand
Prima($/kw)
Demand
Primary($/kw)
Max Kw
$ 3.02
Max Kw
$ 3.02
Peak Demand
$ 10.25
Peak Demand
Energy
Prima /kwh)
Kwh
Prima /kwh
Off Peak
$ 0.05765
Off Peak
$ 0.05491
Partial
$ 0.07297
Partial
$ 0.06229
Peak
$ 0.10337
Peak
MCA
0
MCA
0
ustomer charge @ fullel
igible for 3 meters
Version 9/22/03
RATE AGREEMENT
BETWEEN
Epic Plastics
AND
THE CITY OF LODI
This Agreement is made by and between Epic Plastics ("Customer") and the CITY OF LODI ("City"),
collectively called "the Parties" and individually as "Parry". This Agreement supersedes the City's mandatory
Rate Schedule assignment for this Customer.
WITNESSETH:
WHEREAS, City operates an electric utility system supplying electric power to City customers; and
WHEREAS, Customer is a significant new customer, and
WHEREAS, City desires to transition the new Customer to their eligible rate schedule over two years as an
economic incentive to locate in the City of Lodi as part the City's economic development
policy; and
NOW, THEREFORE, the Parties hereto agree as follows:
Section 1. Definitions. Whenever used in this Agreement, in either the singular or plural number, the
following terms shall have the following respective meanings
1.1 "Agreement" is this contract.
1.2 "City" is the City of Lodi, a California Municipal Corporation.
1.3 "Customer" is Epic Plastics.
1.4 "Facility" is the Customer's facility receiving service as defined in Exhibit A.
1/8
1.5 "Account" is defined in Exhibit A for the Customer.
1.6 "Parties" are collectively Customer and City.
1.7 "kWh" is a kilowatt-hour, an energy charge billing unit.
1.8 'billing cycle" is the monthly bill.
1.9 "Force Majeure", as used herein, means unforeseeable causes beyond the reasonable control of and
without the fault or negligence of the Party claiming force majeure. Such an occurrence may
include, but is not limited to, acts of God, labor disputes, sudden actions of the elements, actions or
inactions by federal, state and municipal agencies, and actions or inactions of legislative, judicial, or
regulatory agencies.
1.10 "eligible rate" is the scheduled rate at which the Customer would qualify given historical
consumption.
1.11 "totalization" is the aggregation of individual meter data so as to create a single billed account
under a single rate schedule.
1.12 "current eligible average rate winter/summer" is the average based on the total energy charges,
demand charges and market cost adjustments and other normal applicable charges totaled divided
by total energy (kWh) that apply to the contract accounts defined in Exhibit A for the eligible rate
utilizing actual billed energy and demand available from the current actual bill average rate
determination by season.
2/8
Section 2. Rate Application.
The billing cycle charge for the Customer shall transition to the eligible rate for the Facilities and
Accounts defined in Exhibit A over a two year phased transition. Exhibit A also defines what Facilities and Accounts
will be totalized or treated as individual facilities for Billing purposes. There shall be two phases to the transition to
full billing under the eligible rate. The periods are as follows:
Phase I July 1St, 2003 to June 30th, 2004
Phase II July 1St, 2004 to June 30th, 2005
In Phase I, the bilking cycle shall be based on a energy charge of 7.50 cents per kwh plus a customer charge of $250.00
per month with no other charges for energy delivery.
In June of 2004, the consumption of the Customer will be examined as to what eligible rate the Customer would normall,
be assigned to. The average eligible winter rate and summer rate will be determined for the eligible rate schedule. The
transition rates will be the eligible rate schedule by season discounted by the transition percentage. The transition
percentage expressed in decimal is calculated by season and is determined as follows:
1.0- ((1.0-(7.5/eligible average rate))/2.0 )
This transition percentage holds only for Phase II. If the calculated transition percentage is greater than 1.0 the transition
percentage will be 1.0
After Phase II ends and this contract expires, the Customer shall be assigned to the eligible rate at that time. The City sho
provide the Customer a copy of the determined transition discounted rates by June 15th, 2004.
Section 3. Term of Agreement.
3.1 Upon signing by all Parties, this Agreement shall be binding for bills rendered on or after July 1 st,
2003, and shall remain in effect subject to Paragraphs 3.2 and 3.3 below, for bills rendered through
June 30th, 2005.
3/8
3.2 If either parry fails to perform any of the provisions of this Agreement, the other parry may, by
written notice given within thirty days of such failure to perform, terminate this agreement. Customer
may appeal such termination in writing to the Electric Utility Director. This is in addition to any other
legal recourse Customer may have.
3.3 This Agreement cannot be terminated without mutual consent of the Parties.
Section 4. Force Maieure.
4.1 If either Parry because of Force Majeure is rendered wholly or partly unable to perform its
obligations under this Agreement, that Party shall be excused from whatever performance is affected
by the Force Majeure to the extent so affected, provided that:
The non-performing Parry, within two weeks after the occurrence of the Force Majeure, shall give
the other party a written report describing the particulars of the occurrence.
The suspension of performance is of no greater scope and of no longer duration than is required by
the Force Majeure.
4.2 No obligations of either Parry which arose before the occurrence causing the suspension of
performance are excused as a result of the occurrence.
4.3 The nor -performing Party uses its best efforts to remedy its inability to perform. This sub -paragraph
shall not require the settlement of any strike, walkout, lockout or other labor dispute on terms which,
in the sole judgement of the Parry involved in the dispute, are contrary to its interest. It is understood
and agreed that the settlement of strikes, walkouts, lockouts or other labor disputes shall be entirely
within the discretion of the Party having the difficulty.
Section 5. Assi
SM
5.1 Neither Party shall voluntarily assign its rights nor delegate its duties under this Agreement without the
written consent of the other Party.
Section 6. Amendments.
6.1 This Agreement may be amended only by written instrument executed by the Parties or their
successors.
Section 7. Severability.
7.1 In the event that any of the terms, covenants, or conditions of this Agreement shall be held invalid, the
Parties intend that all other terms, covenants, and conditions and their application shall not be
affected thereby, but shall remain in force and effect unless a court holds that such provisions are not
severable from all other provisions of this Agreement.
Section 8. Governing Law.
8.1 This Agreement shall be interpreted, governed by, and construed under the laws of the State of
California.
Section 9. Counterparts.
9.1 This Agreement may be executed in counterparts, all or any of which shall be regarded for all
purposes as one original and shall constitute and be but one and the same instrument.
Section 10. Headings.
10.1 The headings to the articles in this Agreement are intended for convenience only and not for the
purpose of interpreting the provisions of this Agreement.
Section 11. Notices.
11.1 Any notice, demand or request required or permitted to be given by either Party to the other and any
instrument required or permitted to be tendered or delivered by either Party to the other may be so
5/8
given, tendered or delivered, as the case may be, by depositing the same in any United States Post
Office with postage prepaid, for transmission by certified or registered mail, addressed to the Party,
or personally delivered to the Parry, at the address designated below. Changes in such designation
may be made by notice similarly given.
11.2 All written notices or questions shall be directed as follows:
To City: ELECTRIC UTILITY DIRECTOR
CITY OF LODI
1331 SOUTH HAM LANE
LODI CA 95242-3995
To Customer: Epic Plastics
104 E. Turner Road
Lodi, CA 95242
Section 12. Non -waiver.
12.1 None of the provisions of the Agreement shall be considered waived by either Parry except when
such waiver is given in writing. The failure of any Party at any time or times to enforce any right or
obligation with respect to any matter arising in connection with this Agreement shall not constitute a
waiver as to future enforcement of that right or obligation or any right or obligation of the Agreement.
Section 13. Warranty of Authority
13.1 Each of the Parties which has executed and delivered this Agreement represents and
warrants that it has agreed to be bound by all the terms, covenants, and conditions of this
Agreement and has acted with all the requisite capacity and authority and approval of its
governing body.
7/8
IN WITNESS THEREOF, the Parties have caused this Agreement to be executed by their
duly authorized officers and their seal to be affixed, as of the day and year herein written.
CITY OF LODI
H. Dixon Flynn
City Manager
Date
Approved as to Form:
Randall A. Hays
City Attorney
ATTEST:
Susan J. Blackston
City Clerk
CADocuments and SetfingAjperrin\Local Settings\Temporary Internet Files\OLKCAEpic Contract.doc
EPIC PLASTICS
Craig Boblitt
Owner/President
Date
Exihibit A
Customer Name:Epic Plastic
Current Contract Accounts
Current Rate
Primary/Secondary
Meter
Account #
Totalize
Location Address
G13
Secondary
26697
47856-0
All Secondary
104 E. Turner Rd. #1
These four meters are on the North End
of building, parking lot, inside security
cage.
These two meters are in production
area on west wall
G13 Secondary 26688 47857-8 All Secondary 104 E. Turner Rd. #2
G13 Secondary 25680 47858-6 All Secondary 104 E. Turner Rd. #3
G11 Secondary 20573 48858 All Secondary 104 E. Turner Rd. #4
G13+ Secondary 29863 48858 All Secondary 104 E. Turner Rd.
G13+ Secondary 29870 48858 All Secondary 104 E. Turner Rd.
If eligible rate does not have a secondary rate, the rate will be the primary rate plus 5%
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi
does hereby authori e the City Manager to execute contracts between the City of Dodi
and current industrial contract customers and/or new contract customers (as listed
below), transitioning them 'tea a standard rate over a three- or four-year period.
Transitigrt Rate Contract:
Lodi Iron Warks
Certai T ed
$chaefer`.Syst rns., lnc.
Pacific Coast Producers
Dated. October 1, 2003
S!2nificant New Customer Contract
Epic Plastics
..b �.. ��..,. .o o _....,...,�.... .m mxwam mr.._ �......»,..r.....W»» .`..,.a.,..�.....«.�.
I hereby certify that Resolution No. 2003-184 was passed and adopted by the
City Council of the City of Lodi in a regular muting Feld October 1 2003, by the
fallowing vote:
AYES: COUNCIL MEMBERS — Beckman,
NOES:Mayor Hitchcock
111,7
USAN J. I L.ACKSTON
City Clark
.
ABSENT:
COUNCIL MEMBERS — ,, i
11
111,7
USAN J. I L.ACKSTON
City Clark