Commission Meeting 04-09-97 v AGENDA ITEM NO: 7B
reidtletit COMMISSION MEETING DA YE,: 4- Z 2- 97
(v� k CITE' OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: GENERAL SERVICE LARGE DEMAND ELECTRIC SERVICE
AGREEMENT WITH THE JACKSONVILLE ET.FCTRIC
AUTHORITY
SLBMTTTED BY: Robert S. Kosoy/Director of Public Works
Ann Meuse/Finance Director
DATE: April 3, 1997
BACKGROUND:
We recently completed an operations and fiscal review of our wastewater treatment plants and
between the main plant and the Atlantic Beach lift stations we are spending approximately
$25,000 per month for electric utility costs to the Jacksonville Electric Authority(JEA). City
wide, we spend approximately $38,000 per month or$450,000 per year to the JEA.
In addition to our ongoing attempts to reduce power consumption through efficient operating
techniques, we contacted the JEA about their demand rates for large customers. Beginning
April 1, 1997, JEA began offering a five (5)year general service large demand rider for
customers whose multiple accounts in aggregate are no less than 699 KW demand. Our
aggregate accounts are well over the 699 KW threshold. This agreement provides a 5%discount
over the 5-year period which would save the city approximately $22,500 per year or $112,500
over the 5-year period.
It should be noted that the Terms and Termination clauses are very strict. This Agreement is a
minimum five year agreement and if the City chooses to limit the Agreement to five years, a
three year written notice mu,t be furnished to JEA at the end of the second year. Failure to
provide written notice of tenhination will extend the contract indefinitely. If the City wishes to
end the Agreement early, i.e. with less than three years notice after the first two years, a penalty
of one year's average monthly aggregate billing demand must be paid to the JEA.
RECOMMENDATION: Approve the Agreement and advise JEA of proposed five year
Termination of Agreement after 24 months.
ATTACHMENTS: 1. General Service Large Demand Rider Electric Service
Agreement (3 copies- 7 pages each)
2. List of Long Term Customer Contracts & Agreements
3. JEA Non-Residential Rate Comparison
REVIEWED BY CITY MANAGER:
srjea
PREPARED 04/01/1997, 13-52-59 OBJECT OF EXPENDITURE REPORT PAGE
PROGRAM- GM266L ACCOUNTING PERIOD 06
CITY OF ATLANTIC BEACH
OBJ 43-00 UTILITIES
1995 1996 CURRENT CURRENT YEAR-TO-DATE UNPOSTED
DEPT DEPARTMENT/DIVISION ACTUAL ACTUAL BUDGET EXPENDITURES EXPENDITURES ENCUMBRANCES AMOUNT BAL
FUND 001 GENERAL FUND
DEPT 10 TOTAL 14362 14986 15500 877.11 5040.81 .00 .00 1045
DEPT 20 POLICE
2001 ADMINISTRATION 12368 6484.90 14000 464.23 2478.85 .00 .00 1152
2002 PATROL .00 0 .00 .00 .00 .00
2003 DETECTIVE .00 0 .00 .00 .00 .00
2004 DISPATCH .00 0 .00 .00 .00 .00
2005 ANIMAL CONTROL .00 0 .00 .00 .00 .00
2006 SCHOOL GUARDS 164 164.26 200 13.71 68.64 .00 .00 13
DEPT 20 TOTAL 12532 6648 14200 477.94 2547.49 .00 .00 1165
DEPT 30 FIRE 4
3001 ADMINISTRATION 6484.85 0 464.22 2478.81 .00 .00 247
3005 LIFEGUARDS 80 80.28 103 6.68 33.40 .00 .00 6
DEPT 30 TOTAL 80 6564 103 470.90 2512.21 .00 .00 240'
DEPT 50 PUBLIC WORKS
5002 PUBLIC WORKS 57303 59698.07 58000 4774.22 23799.41 .00 .00 34201
5003 BEAUTIFICATION .00 12000 .00 .00 .00 .00 12001
DEPT 50 TOTAL 57303 59698 70000 4774.22 23799.41 .00 .00 4620(
DEPT 60 PARKS AND RECREATION
6010 ADMINISTRATION .00 0 .00 .00 .00 .00
6030 RECREATION ACTIVITIE 5043 6290.47 9000 675.15 3710.65 .00 -.00 5285
6040 PARK IMPROVEMENTS .00 0 .00 .00 .00 .00
DEPT 60 TOTAL 5043 6290 9000 675.15 3710.65 .00 .00 5285
FUND 001 TOTAL 89320 94186 108803 7275.32 37610.57 .00 .00 7119:
FUND 110 MISCELLANEOUS GRANTS
DEPT 00
0000 205 472.81 5500 .00 222.87 .00 .00 5277
PREPARED 04/01/1997, 13-52-59 OBJECT OF EXPENDITURE REPORT PAGE
PROGRAM- GM266L ACCOUNTING PERIOD 06/19
CITY OF ATLANTIC BEACH
OBJ 43-00 UTILITIES
1995 1996 CURRENT CURRENT YEAR-TO-DATE UNPOSTED
DEPT DEPARTMENT/DIVISION ACTUAL ACTUAL BUDGET EXPENDITURES EXPENDITURES ENCUMBRANCES AMOUNT BALANC
DEPT 00 TOTAL 205 472 5500 .00 222.87 .00 .00 5277.1
FUND 110 TOTAL 205 472 5500 .00 222.87 .00 .00 5277.1
FUND 151 P.A_V.E. GRANT
DEPT 00
0000 .00 0 .00 .00 .00 .00 .0
DEPT 00 TOTAL 0 0 0 .00 .00 .00 .00 .0
FUND 151 TOTAL 0 0 0 .00 .00 .00 .00 .0
FUND 400 C.A.B WATER FUND
DEPT 40 WATER OPERATIONS
4001 CAB WATER OPERATIONS 33678 37443.72 48000 2731.68 12962.16 .00 .00 35037.8
DEPT 40 TOTAL 33678 37443 4 48000 2731.68 12962.16 .00 .00 35037.1
DEPT 43 BUCCANEER WATER
4301 BUC.WATER OPERATIONS 30359 31014.27 56000 2813.66 13492.01 .00 .00 42507.9
alrigkeMPOOMWAIMWOM DEPT 43 TOTAL 30359 31014 56000 2813.66 13492.01 .00 .00 42507.9
FUND 400 TOTAL 64037 68457 104000 5545.34 26454.17 .00 .00 77545.8
FUND 410 C.A.B. SEWER FUND
DEPT 41 SEWER OPERATIONS
4101 CAB SEWER OPERATIONS 162212 99600.60 175000 12121.69 150960.16 .00 .00 24039.8
DEPT 41 TOTAL 162212 99600 175000 12121.69 150960.16 .00 .00 24039.8
DEPT 44 BUCCANEER SEWER
4401 BUC.SEWER OPERATIONS 79689 93053.42 80000 5901.89 30772.55 .00 .00 49227_4
DEPT 44 TOTAL 79689 93053 80000 5901.89 30772.55 .00 .00 49227.4
FUND 410 TOTAL 241901 192653 255000 18023.58 181732.71 .00 .00 73267.2
FUND 420 SANITATION FUND
DEPT 42 SANITATION
4201 SANITATION .00 0 .00 .00 .00 .00 .0
DEPT 42 TOTAL 0 0 0 .00 .00 .00 .00 .0
'REPARED 04/01/1997, 13-52-59 OBJECT OF EXPENDITURE REPORT PAGE
PROGRAM- GM266L
CITY OF ATLANTIC BEACH ACCOUNTING PERIOD 06/
OBJ 43-00 UTILITIES
1995 1996 CURRENT CURRENT YEAR-TO-DATE UNPOSTED
DEPT DEPARTMENT/DIVISION ACTUAL ACTUAL BUDGET EXPENDITURES EXPENDITURES ENCUMBRANCES AMOUNT BALAI
T
FUND 420 TOTAL 0 0 0 .00 .00 .00 .00 ,
FUND 530 PUBLIC WORKS ADMINISTRAT.
DEPT 50 PUBLIC WORKS
5001 ADMINISTRATION 5352 5170.41 6500 437.00 2194.78 .00 .00 4305.
DEPT 50 TOTAL 5352 5170 6500 437.00 2194.78 .00 .00 4305.
FUND 530 TOTAL 5352 5170 6500 437.00 2194.78 .00 .00 4305.
OBJ 43-00 TOTAL 400815 360938 479803 31281.24 248215.10 .00 .00 231587.
•
Jacksonville Electric
Authority
Non - Residential Rate Comparison
October 1996
(Dollars ! MWH) - All rates October
1996 unless otherwise indicated
Mar. 96 Oct. 96
General Service: JEA JEA Gulf FP&L OUC FPC TECO
Demand - Secon ery
88,000 KWH, 180 KW, LF = 52% $57.26 $52.66 $48.75 $63.74 $57.56 $56.62 $58.96
Ratio: JEA / Other 103% 83% 91% 93% 89%
160,000 KWH, 300 KW, LF = 73% $52.39 $48.15 $47.24 $57.59 $52.03 $53.59 $53.01
Ratio: JEA / Other 102% 84% 93% 90% 91 %
Large Demand - Primary
800,000 KWH, 1,500 KW, LF = 73% $46.28 $44.41 $45.24 $54.78 $49.49 $52.61 $52.68
Ratio: JEA / Other 98% 81% 90% 84% 84%
1,200,000 KWH, 2,600 KW, LF = 63% $48.23 $46.29 $47.47 $47.18 $52.03 $53.56 $54.67
Ratio: JEA / Other 98% 98% 89% 86% 85%
LONG TERM CUSTOMER CONTRACTS AND AGREEMENTS
Customer Date Effect. SIZE GSXLD GSLD Inter- Curtail- LDI MA I�
Contract Date Kw 10 yr. 5 yr. ruptible able 10 yr. #
Signed 3 yr. 3 yr. ACT:-
1. Adcom Wire Company 9/96 11/6/96 2,621 2,621
2. Albertsons 1/97 5
3. Cargill, Inc. 11/96 3/97 1,414 1,414
4. Celotex Corp. 9/96 10/28/96 2,085 2,085
5. City of Jacksonville(All Accounts) 10/96 10/31/96 42,029 42,029
6. Coach Distribution(will sign) 1,300 1,300
7. Duval County School Board 42,276 42,276
8. Florida Publishing(will sign) 2,342 2,342
9. Florida Wire&Cable 11/96 3/97 400 400
10. Food Lion 12/96 15
11. Jacksonville Housing Authority 1,878 1,878 _
12. Jacksonville Port Authority(will sign) 5,833 5,833
13. Jefferson Smurfit 10/96 10/29/96 12,303 12,303
14. Jefferson Smurfit Box Plant 11/96 3/97 973 973
15. K Mart 12/96 5
16. King Provision Corp. 12/96 12/1/96 1,000 1,000
17. Kraft Foods(Maxwell House Coffee) 9/96 10/28/96 5,181 5,181
18. Mac Paper Converters, Inc. 12/96 3/97 T 80u 800
19. Movsovitz&Sons of Florida 1/97 3/97 T 862 862
20. Navy 7/96 10/1/96 75,000 75,000
21. North Jacksonville Baptist 9/96 10/28/96 700 700
22. Portion Pac 12/96 5/97 1,000 1,000
23. Regency Square(will sign) 7,240 7,240
24. Rex Packaging Inc. 2/97 4/97 T 1,100 1,100
25. Southeast Atlantic Beverage 12/96 4/97 T 900 900
26. Stone Container 10/96 10/28/96 23,218 23,218
27. Trinity Baptist Church 10/96 2/97 1,253 1,253
28. Tyson Foods(Chicken Processing 1/97 4/97 T 2,600 2,600
Plant)
29. Tyson Foods(Feed Mill) 1/97 4/97 T 800 800
30. U S Gypsum 11/96 12/2/96 12,000 12,000
31. University of North Florida 7/96 7/22/96 3,949 3,949
Contract MW by Rate Class 159.305 22.542 57.210 12.0 2.0
Total Mw Under Contract 253.057
Date contracts signed and dates contracts are effective may vary. IS contracts have a 3/97 target effective date due to equipment needs.
**Multiple Account Agreements become effective when customer has phone lines installed and meter shop installs new meter.
E.D a 9 1997
2/13/97
GENERAL SERVICE LARGE DEMAND RIDER ELECTRIC SERVICE AGREEMENT
This General Service Large Demand Rider Electric Service Agreement (hereinafter the
"Agreement") is made and entered into this day of 19 97 by and between
The City of Atlantic Beach, Florida(hereinafter the "Customer") and Jacksonville Electric
Authority, a body politic and corporate and an independent agency of the City of Jacksonville (hereinafter
the"JEA"). This Agreement applies to all eligible services of the customer.
WITNESSETH
WHEREAS, a five (5) year general service large demand rider is available in all territory served
by JEA in accordance with General Service Large Demand Rider (Rider GSLDR-5), and is available to
any customer whose JEA electric service account(s) for electric service under JEA Rate Schedule , General
Service (GS), General Service Time-of-Day (GST), General Service Demand (GSD), General Service
Demand Time-of-Day (GSDT), General Service Large Demand (GSLD), General Service Large Demand
Time-of-Day (GSLDT) or Multiple Account Load Factor Improvement Rider (MA), and whose multiple
accounts in aggregate are no less than 699 KW demand, and
WHEREAS, Rider GSLDR-5 provides for certain electric rate reductions for those applicable
customers who enter into a five(5)year JEA electric service contract,
NOW THEREFORE, in consideration of the mutual covenants herein contained, Customer and
JEA agree as follows:
I. SCOPE.
JEA agrees to furnish and Customer agrees to take electric service pursuant to the terms and
conditions of Rider GSLDR-5, as said Rider GSLDR-5 exists and as it may be modified from
time to time by JEA. Customer further agrees to abide by all requirements of Rider GSLDR-
5. A copy of JEA's currently approved Rider GSLDR-5 is attached hereto as Exhibit "A"and
by this reference is made a part hereof. In the event Rider GSLDR-5 is amended in the future,
such amended rider shall be substituted for the Rider GSLDR-5 that is presently attached to
this Agreement, without necessity of a formal amendment to the Agreement.
1
II. TERM AND TERMINATION.
A. This Agreement shall continue in effect for a minimum initial term of five (5) years from
commencement of electric service by JEA to Customer under Rider GSLDR-5.
B. Upon completion of two (2) years under this Agreement and any time thereafter, JEA or
Customer may request the Agreement to be terminated provided that the party requesting
termination furnish the other party with a minimum of thirty-six(36) months written notice
prior to such request for termination.
C. In the event Customer elects to terminate this Agreement by furnishing JEA with less than
thirty-six (36) months written notice after the initial two (2) years, Customer shall pay
JEA an amount equal to the then current monthly kW demand charge times Customer's
average monthly aggregate billing demand for the most recent twelve(12) months for each
of the remaining months of the contract term.
1. Notwithstanding the provisions described in Paragraph C above, Customer may, at the
sole discretion of JEA, transfer and assign its Rider GSLDR-5 electric service
agreement, in whole or in part, provided the conditions of the rider exist on the severed
parts, to a third party. Such third party shall be required to fulfill the remaining term
requirements of Customer and all other provisions of this Agreement.
D. Upon written notice in advance to Customer, JEA may terminate this Agreement if the
existence of this Agreement creates an adverse impact upon JEA's tax exempt bond status.
Upon receipt of such notice, Customer shall have the right to review with JEA and its bond
counsel the reason(s) for the creation of such adverse impact and to determine, in concert
with JEA, whether the existence thereof can be eliminated by the amendment of this
Agreement. In such event JEA shall, before the effective date of any termination, and if
Customer so elects, negotiate in good faith with Customer to amend the Agreement to
eliminate the adverse impact.
Should JEA become aware of any pending legislation or regulatory change which is likely
to have an adverse impact upon JEA's tax exempt bond status due to the existence of this
Agreement, JEA shall promptly notify Customer thereof Customer, at its sole cost and
2
expense, may contest such legislation or regulatory action, including rights of legal
challenge and appeal to effect elimination of such adverse impact and JEA shall support
such activities of Customer at no cost or expense to JEA.
Notwithstanding the foregoing, JEA retains the right to terminate this Agreement at any
time if, in its sole judgment, this Agreement creates an adverse impact on its tax exempt
bond status.
E. In the event that there is an order issued by the Florida Public Service Commission
disapproving this Agreement or Rider GSLDR-5, this Agreement shall be terminated, and
neither party shall have an action against the other arising under this Agreement.
F. If the customer's aggregate demand falls below 699 KW the customer must select one of
the following
(1). Terminate the rider and pay early termination charges, or
(2). Suspend the rider's rate adjustment and pay the non-rider rate until
demand again aggregates to 699 KW.
III. FULL RETAIL SERVICE REQUIREMENT OBLIGATION.
Customer agrees to purchase its full requirements for electric energy and capacity from JEA to
the exclusion of any other source for the entire term of this Agreement. Such requirement shall
preclude the installation of any non-emergency self-generation by Customer following the
execution of this Agreement for the entire term of this Agreement. All new eligible services of
the customer will be subject to the rate reduction of this agreement as they are cut-on.
IV. ADDITIONAL JEA ELECTRIC RATE RIDERS.
JEA Multiple Account Load Factor Improvement Rider MA shall be the only additional JEA
electric rate rider made available to Customer by JEA under this Agreement.
V. BILLING AND PAYMENT.
All billing and payment transactions hereunder shall be in accordance with prevailing JEA
policy and procedure for its commercial retail electric service customers.
3
VI. RATES AND CHARGES.
The rates for contracted accounts under Rider GSLDR-5 will remain five (5) percent less than
the prevailing GS, GST, GSD, GSDT, GSLD and GSLDT rates in effect at any given time
for the duration of this Agreement.
VII.WAIVER OF TERMS OR CONDITIONS.
Failure to enforce or insist upon compliance with any of the terms or conditions of this
Agreement shall not constitute a general waiver or relinquishment of any such terms or
conditions, but the same shall be and remain at all times in full force and effect.
VIII.NOTICE.
Any notice, request, instruction, demand, consent, or other communication required or
permitted to be given under this Agreement shall be in writing and shall be delivered either by
hand or by certified mail, postage prepaid, and certified return receipt requested to the
following address or such other address as the parties may provide to each other in writing:
To Customer: City of Atlantic Peach
800 Seminole Road
Atlantic Peach, FL 32233
Attn: Pm Male
rinaroe Director
To JEA: Jacksonville Electric Authority
21 West Church Street
Jacksonville, Florida 32202
Attn.: Vice President, Customer Service
IX. ORDER OF INTERPRETATION.
To the extent of any conflict or inconsistency between the provisions of this Agreement and
Rider GSLDR-5,the provisions of this Agreement shall control.
4
X. ADDITIONAL PROVISIONS.
Additional provisions to this Agreement that do not alter the provisions of Rider GSLDR-5 are
allowable if mutually agreed upon between JEA and Customer. Such provisions, if any, shall
be attached hereto as Exhibit"B" and by this reference made a part hereof.
[The remainder of this page was intentionally left blank.
The next page, Page 6 is the signature page]
S
IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year
above first written.
ATTEST: JACKSONVILLE ELECTRIC AUTHORITY
By: By: Date:
Staff Support Assistant Managing Director
Walter P. Bussells •
(Print/Type Name) (Print/Type Name)
WITNESS: CUSTOMER City of Atlantic Beach, Florida
By: By: Date:
(Signature) (Signature)
Lyman T. Fletdier
(Print/Type Name) (Print/Type Name)
(Title) (Title)
I HEREBY CERTIFY that the expenditure contemplated by the foregoing contract has been duly
authorized,and provision has been made for the payment of the monies provided therein to be paid.
John J.Wolfel
Controller
Jacksonville Electric Authority
Contract No.
AP' •O 'D AS TO FORM:
By: h A .Lll�:�' _
As '' . General Counsel
6
Jacksonville Electric Authority Fifth Revised Sheet No. 16.10
Canceling Fourth Revised Sheet No. 16.10
GSLD-5
RIDER GSLDR-5
GENERAL SERVICE LARGE DEMAND RIDER
Available In all territory served by the Jacksonville Electric Authority.
Applicable To any customers who have executed a five (5) year General Service Large
Demand Rider Electric Service Agreement with JEA and whose accounts
qualify for electric service under Rate Schedule GS, GST, GSD, GSDT,
GSLD, GSLDT or Multiple Account Load Factor Improvement Rider and
whose accounts in aggregate demand are no less than 699 KW. Resale of
energy purchased under this rate schedule is not permitted.
Character of
Service JEA's standard voltage levels.
Rate Per Month Customers executing a General Service Large Demand Rider Electric Service
Agreement shall receive a 5% discount on their electric bill(s). The discount
will be applied to the electric charge. The discount will not apply to any
credits,penalties, service charges, Gross Receipts Tax or other applicable taxes
including franchise fees.
Definition of
Aggregated Load The sum of the highest billing demands for each account for the past 12
months.
Term of
Service Service under this rider shall be for a minimum initial term of five (5) years
from the commencement of service. Customers desiring to terminate service
under this rate schedule after the initial two (2) years, will be required to give
the JEA a minimum of thirty-six (36) months notice prior to the transfer to
JEA's standard rates or, if allowed by law, receipt of service from another
electric service provider. Should the customer elect to terminate the General
Service Large Demand Electric Service Agreement with JEA, giving less than
thirty-six (36) months notice, they shall pay an amount equal to the monthly
kW demand charge times the customer's average billing demand for the most
recent 12 months for each of the remaining months of the contract term.
Terms and
Conditions (a) Service hereunder shall be subject to the Rules and Regulations of the
Jacksonville Electric Authority.
(b) At the option of the customer this five percent (5%) discount may be
used for funding certain electric and electric-related infrastructure at the
customer's service location.
(c) Election of JEA's General Service Large Demand Rider will preclude
the election of any other Rider except the Multiple Account Load
Factor Improvement Rider.
(d) Customer must maintain a minimum aggregate electric demand of
699 kW for one JEA billing within any 12 month period. In the event
that such aggregate demand is not maintained by the customer, the
customer will billed on their normal non-discounted rate classification.
ANN K. BECKWITH, DIRECTOR Effective April 1, 1997
ELECTRIC RATES DEPARTMENT