Resolution No. 76501
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RESOLUTION NO. 7650
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
CONTRACT BY AND BETWEEN THE CITY OF VERNON AND ROLLS-
ROYCE ENGINE SERVICES-OAKLAND INC., FOR THE
OVERHAULING OF TWO GAS TURBINES
WHEREAS, the Utilities Department of the City of Vernon has
found that it is necessary to overhaul two gas turbines due to their
wear and tear condition to ensure the availability of the turbines for
the summer 2001; and
WHEREAS, the Utilities Department has only been able to find
one vendor, Rolls-Royce Engine Services -Oakland Inc. ("Rolls Royce"),
that is capable of providing the necessary parts and labor for the
overhauling of the two gas turbines and has the expertise to overhaul
the gas turbines; and
WHEREAS, the Utilities Department needs to commence with the
overhaul, which involves receipt and inspection, disassembly, cleaning,
inspection and cost estimate, as soon as possible in order to ensure
the availability of the turbines for the summer 2001; and
WHEREAS, Rolls-Royce has submitted a Proposal dated
September 14, 2000, indicating the approximate total cost to inspect,
disassemble, clean and provide a cost estimate of the overhaul of the
two gas turbines will be Seventy -Six Thousand Dollars and No Cents _
($76,000.00), plus tax; and
WHEREAS, the Finance Committee at its, meeting held on October
16, 2000, recommended to the City Council to retain the services of
Rolls-Royce to commence with the overhaul as identified above; and
WHEREAS, the City Council finds that, based upon the above,
S t
1 Rolls-Royce is the most qualified vendor to provide the services and
2 supplies necessary for the overhaul of the two gas turbines; and
3 WHEREAS, the City Council of the City of Vernon has determined
4 that, pursuant to the provisions of Subsection (a) of Section 2.27 of
5 the Vernon City Code, it is in the public interest and necessity to
6 proceed with the overhaul of the two gas turbines and to contract for
7 the necessary overhaul services as soon as possible.
8 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
9 OF VERNON AS FOLLOWS:
10 SECTION 1: The City Council of the City of Vernon hereby
11 finds and determines that the recitals contained hereinabove are true
12 and correct.
13 SECTION 2: The City Council of the City of Vernon hereby
14 approves the Contract with Rolls-Royce, a copy of which is attached
15 hereto as Exhibit "A" and made a part hereof.
16 SECTION 3: The City Council of the City of Vernon hereby
17 authorizes the Mayor and the City Clerk to execute said Contract for,
18 and on behalf of, the City of Vernon.
19 SECTION 4: The City Council of the City of Vernon hereby
20 directs the City Clerk, or his designee, to send one fully executed
21 Contract to:
22 Rolls-Royce Engine Services -Oakland Inc.
23 Attn: Marc Swinyer, Account Executive
7200 Earhart Road
24 Oakland, CA 94621-4504
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SECTION 5: The City Clerk of the City of Vernon shall certify
to the passage of this resolution, and thereupon and thereafter the
same shall be in full force and effect.
APPROVED AND ADOPTED this 17th day of October, 2000.
ATTES
BRUCE V. MALKENHORST, City Clerk
EONIS C. MAL URGft ®r�
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
7650, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Tuesday, October 17.
2000, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT A
I CONTRACT
2
3 THIS AGREEMENT is made, entered into and executed in
4 duplicate originals, either copy of which may be considered and used
5 as the original hereof for all purposes, as of this day of
6
October, 2000, in the City of Vernon, County of Los Angeles,
7
California
8 _
9 BY AND BETWEEN The City of Vernon
10 (hereinafter referred to as
the "City")
11 4305 Santa Fe Avenue
Vernon, CA 90058
12 AND ROLLS-ROYCE ENGINE SERVICES-
13 OAKLAND, INC. (hereinafter
referred to as "Rolls-Royce")
14 7200 Earhart Road
Oakland, CA 94621-4504
15
16 WHEREAS, the City needs to overhaul two gas turbines due to
17 their wear and tear condition to ensure the availability of the
18 turbines for the summer 2001 and needs the services of a supplier to
19 provide the parts and labor necessary for the first stage -of the
20 overhaul which involves receipt and inspection, disassembly, cleaning,
21 inspection and cost estimate; and
22 WHEREAS, Rolls-Royce has represented that it is a reliable
23 vendor and has expertise in performing the first stage of overhauling
24 the gas turbines; and
25 WHEREAS, Rolls-Royce desires to provide the necessary parts
26 and labor to perform the first stage of the overhaul of the gas
27 turbines to the City's specifications.
28 / / /
I NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET
2 FORTH HEREIN:
3 1. Scope of Work. Rolls-Royce agrees to inspect,
4 disassemble, clean and provide cost estimate regarding the overhaul of.
5 the two gas turbines according to the Proposal submitted to the City
6 on September 14, 2000, a copy of which is attached hereto as Exhibit
7 "A" and incorporated herein by reference.
8 -2. Price. Consistent with its Proposal, Rolls-Royce
9 agrees to perform the work set forth in Section 1 for the approximate
10 sum of Seventy -Six Thousand Dollars and No Cents ($76,000.00), plus
11 tax.
12 3. Payment Terms. The City agrees to pay Rolls-Royce a
13 total of Seventy -Six Thousand Dollars and No Cents ($76,000.00), plus
14 tax, for parts and labor associated with the overhaul of the two gas
15 turbines pursuant to an invoice provided by Rolls-Royce.
16 4. Warranties. Rolls-Royce shall provide, at a minimum,
17 a one (1) year labor and material warranty to begin upon acceptance of
18 the overhaul by the City. All manufacturers" warranties, any
19 warranties typically provided by Rolls-Royce, and any other warranties
20 made applicable by law shall apply to the parts and labor provided by
21 Rolls-Royce to complete the overhaul of the two gas turbines.
22 5. Governing Law. The validity, interpretation and
23 performance of this contract shall be controlled and construed under
24 the laws of the State of California.
25 6. Notices. Notices to the parties, unless otherwise
26 requested in writing, shall be sent to:
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City: THE CITY OF VERNON .
1 ATTN: DOLORES FONSECA
2 PURCHASING ASSISTANT
4305 SANTA FE AVENUE
3 VERNON, CA 90058-0805
4 Rolls-Royce: ROLLS-ROYCE ENGINE SERVICES-OAKLAND INC.
ATTN: MARC SWINYER, ACCOUNT EXECUTIVE
5 7200 EARHART ROAD
6 OAKLAND, CA 94621-4504
7. General Provisions.
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8 A. Independent Contractor. At all times during the
9 term of this Contract, Rolls-Royce shall be an independent contractor
10 and shall not be an employee of the City. The City shall have the
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right to control Rolls-Royce only insofar as the results of Rolls-
Royce's services rendered pursuant to this Contract; however, the City
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13 shall not have the right to control the means by which Rolls-Royce
14 accomplishes services rendered pursuant to the Contract except to the
15 extent that such services involve the use of City property or
16 Confidential Information.
17 B. Rolls-Royce Not Agent. Except as the City may
18 specify in writing, Rolls-Royce shall have no authority, express or
19 implied, to act on behalf of the City in any capacity whatsoever as an
20 agent. Rolls-Royce shall have no authority, express or implied,
21 pursuant to this Contract to bind the City to any obligation
whatsoever.
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23 C. Indemnification. Rolls-Royce shall indemnify,
24 defend, protect and hold the City and its officers, agents and
25 employees, free and harmless from and against any and all claims,
26 demands, losses, damages, liabilities, fines, charges, penalties,
27 orders, judgments and all costs and expenses.incurred in connection
28 therewith, including reasonable attorneys fees and costs of defense
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arising out of the services performed under this Contract, except to
the extent arising from or caused by the sole negligence or willful
misconduct of the City, its officers, agents or employees.
D. Insurance. Rolls-Royce shall maintain automobile
liability insurance coverage in an amount approved by the City
Administrator's office throughout the term of the Contract.
8. Entire Agreement. This Contract is the entire
agreement -of the parties. Rolls-Royce represents that in entering
into this Contract, it has not relied on any previous representations
or understandings of any kind or nature.
9. Benefit of Agreement. This Contract shall bind and
benefit the parties hereto and their heirs, successors, and permitted
assigns.
IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed by and through their authorized officers on the date,
month and year first written above.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
EDUARDO OLIVO, City Attorney
By:
CITY OF VERNON
LEONIS C. MALBURG, Mayor
ROLLS-ROYCE ENGINE SERVICES-
OAKLAND INC.
By:
Title:
By:
Title:
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EXHIBIT A
D
Facsimile Rolls-Royce
To
Don Quiroz
From
Marc Swinyer
Company
City of Vemon
Location
Rolls-Royce Engine Services -Oakland Inc.
Fax number
323 585 3119
Direct dial
(510) 613-1007
Date
9/14/00
Direct fax
(510) 639-7625
Pages
5
Email
mswinyer@naccorp.com
Don,
I have attached a very general overview of the work that would be accomplished during an overhaul.
After inspection, you would get an accurate cost estimate that would detail the material involved along
with the inspection results.
If you should have any additional questions or concerns, please don't hesitate to contact either Dan
LeDoux @ 510-613-1054 or myself.
Best regards;
Marc yer
Account Executive
Industrial Customer Support
Rolls-Royce Engine Services -Oakland Inc.
Rolls-Royce Engine Services -Oakland Inc-7200 Emhart Road Oakland, CA 94621-4504
JCt" lY VV 1Y•JtJ 1 .� ..r.�. a. .�v.r ..gar .,. r.�. _ __
GENERAL 570/571K OVERHAUL PRICING
The following is to be used as a pricing guideline for budgetary purposes only. There is
no possible way to accurately forecast the condition of an engine with out disassembling,
cleating and inspection.
Rased on the General 570/571K Overhaul Overview
*Budgetary pricing would be as follows:
Steps A,, B, C & D. $ 38,000
Step E. - $ 15,000
Step F. $ 7,500 (Flat Rate- Inc. fuel/oil)
Steps G, H, I. $ 1,250
*Estimated hours to perform reworks would be approximately 450 hours at $78.00 per
hour.
*Gaskets, o-rings and other miscellaneous material runs approximately: $28,000.00
*Modifications (according to our records) required for your engines:
5701571 GT92-1 Titanium blade modification: price runs approx. $50,000.00
There are other modifications that could apply depending on the condition of the engine.
The remainder of the material would be determined after inspection is accomplished.
" TOTAL PAM.05. **
GENERAL 570/571K OVERHAUL OVERVIEW
The following outline depicts general procedures for Rolls-Royce Allison 5 70/571K Gas Turbine Engines
inducted for normal run -out condition overhaul. This outline is based in accordance with applicable
overhaul manuals and standard practices, and may not include all steps or procedures. It is intended as a
general overview only. Actual overhaul procedures may be tailored to ensure customers specifec
operational requirements are met.
A. RECEIPT and INSPECTION
y The engine is received into the workshop and removed from the shipping container.
Digital photographs are taken to provide a record of the engine in as -received condition, and placed in
an engine stand.
:- As received inventory and general condition review is performed.
B. DISASSEMBLY
Y External components and accessories are removed, recorded for part and serial numbers.
With external components removed, the engine is separated into its basic modules. Each section is
placed in disassembly stands.
> Each section is disassembled with attention to visual inspection to note any indications of abnormal
wear or .piece pact failure. Abnormal wear or failure noted at this stage is reviewed by product
engineers, prior to the cleaning step to make determination of cause.:..
i Durin-, disassembly, for individual piece parts that have serial numbers, the serial numbers are
recorded in addition to part numbers.
C. CLEANING AND DETAEL-L tSPECTION
* At completion of disassembly and as -received inspection, all parts are thoroughly cleaned. Cleaning
procedures consist of chemical cleaning, vapor blasting, sand, bead or aluminum blasting as required.
> All parts are visually inspected to determine condition. Condition is generally determined as
continued time serviceable, repairable or scrap, (scrap may be determined as a cause of non -
repairable or time expired).
"r Visual inspections include Non -Destructive Testing (NDT) procedures, magna flux. ZYSIo+ magnetic
particle inspection (NMPI� florescent particle inspection .(FPI) and dimensional inspections.
i Inspections, which show abnormal indication of wear or failure, are reviewed by product engineers to
make determination of cause.
`r Digital photographs as required, are taken of abnormal wear or failure for review by customer.
Condition Report is written for presentation to customer.
SEP 14 ' UU 1-4; 29 FH Nta 1 NDU D 1 K t rO. utr i ,> I u ---- ..,.- .
D. COST ESTIMATE
1✓ At completion of steps A, B and C. a cost estimate is provided. The cost estimate includes advice on
parts which maybe reused as is, those that can be reworked back to serviceable condition and those
that are rejected as scrap.
> The cost estimate includes the following labor and material costs;
labor cost performed to date.
recommendations for reworks and replacement, based on the customers operational requirements
and to ensure the engine will operate satisfactorily to these requirements.
a estimated labor hours to perform rework procedures. It should be noted that subject to cleaning
and inspection procedures, some parts might be determined repairable even though they are at
minimum limits. Salvage of a minimally repairable part is performed in an effort to reduce the
overhaul cost. Occasionally a part thought to be repairable cannot be salvaged during the repair
procedure, though all effort has been made. In such an instance the customer is advised, and an
alternative solution such as replacement with a suitable serviceable or new part is offered..
parts which will be replaced with new as a result of such parts are not repairable or no serviceable
part is available.
parts that may be exchanged for a like part already repaired.
parts and labor to repair individual accessories and components.
labor cost to perform assembly of piece parts into compressor and hot section subassemblies;
subassemblies into complete engine assembly and installation of external accessories and
components.
outside services costs for sub -contracted works. (93% of overhaul procedures are performed in-
house, however certain works are proprietary in nature and performed by the
manufacturer/supplier)'.
Y Cost estimate also includes;
a required or recommended modifications in accordance with applicable bulletins and/or letters.
eosm for heat treating, AEP coatings if specified, test cell charges including fuel & oil.
"contingency" costs. Contingency costs are based on a five (51/6) percent margin of the estimate
price. This contingency is supplied as an estimate that the fatal cost may fluctuate up Or down
five percent from the estimated price.
consumables that are used during the overhaul procedure.
a detailed and priced listing of estimated parts to be replaced during overhaul.
a a copy of inspection findings for all major parts and for accessories and components.
a inspection findings for major high -dollar value items rejected and requiring replacement
inspection and cost estimate for any required repair to the shipping container, to ensure safe
shipping and storage of the engine.
E. ASSEMBLY
i Upon approval of cost estimate, reworks are performed and piece parts are assembled into the
compressor and hot section assemblies.
These two assemblies are mated, and external accessories and components are installed.
`r The engine is now ready for test run.
,
F. ENGINE TEST
)�,- The engine is tested in accordance with manufacturers test requirements.
> Additional tests maybe accomplished, subject to customers' request and approval of test request to
ensure test cell compatibility.
y Test can be performed using gaseous or liquid fuel, or both, subject to customers' requirement.
Test is performed using dynamometer or water brake type test facilities for generator type
applications, and using power turbine and water brake type test facilities for gas compression/marine
applications.
r Real time multi -point data is recorded, and a copy of the test log is provided to the customer for
confu-nation of a successful engine test.
G. POST TEST INSPECTION
r Following test, the engine is visually inspected and borescoped.
Y Digital photographs are taken to provide a record of the engine in as -shipped condition.
H. PREPARATION FOR SHIPMENT
> The engine is replaced in the shipping container.
Z Desiccant bags are placed in the container for moisture damage prevention.
Z The shipping container is pressurized with dry nitrogen, and inspected for leakage.
Y The containerized engine is delivered to shipping department for shipment to customer.
L LOGS & RECORDS
> Test Logs are shipped with the engine.
➢ Build Sheets with details of material, serial numbers, material condition, etc., is shipped with the
engine.
SUPPORTING
DOCUMENTS
I
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
October 17, 2000
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
COPY
Mr. Marc Swinyer VIA FEDERAL EXPRESS
Account Executive
Industrial Customer Support
Rolls-Royce Engine Services -Oakland Inc.
7200 Earhart Road
Oakland, CA 94621-4504
Re: Contract For Evaluation of Two Gas Turbines
Dear Mr. Swinyer:
Enclosed please find two duplicate originals of the
aforementioned Contract which needs to be signed by the
appropriate parties and returned to the City, to the attention
of Judy Lehr, Legal Department, as soon as possible. The
Contract is scheduled to be considered by the Council at its
meeting on October 17, 2000.
Once the originals are executed by the City, one fully
executed original will be returned to you for your files.
Please refer to the enclosed "City of Vernon Signature
Requirements for City Agreements" and comply with the
requirements set forth for your company.
I thank you for your cooperation regarding this matter.
Very truly yours,
Eduardo Olivo
City Attorney
J1
Enclosures
CC: Ms. Gloria Orosco, Chief Deputy City Clerk (w/o encls.)
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OFFICE OF THE CITY ADMINISTRATOR/CITY CLERK
INTER -OFFICE MEMORANDUM
DATE: January 8, 2001
TO: Dolores Fonseca, Archase Assistant
FROM: Gloria J. Orosc hief Deputy City Clerk
RE: Rolls-Royce Contract
Transmitted herewith is a fully executed copy of the Rolls-Royce
Engine Services Oakland, Inc. Contract and Resolution' No. 7650, which
was approved by the City Council on October 17, 2000.
The originals are being retained in this office for our files.
Thank you.
GJO/mt
f
t
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Ter
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
October 18, 2000
Mr. Irwin Miller
Rite -Way Meat Packers, Inc.
5151 Alcoa Avenue
Vernon, CA 90058
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
pop
Re: Electrical Service Credit Agreement - City of Vernon,
the Redevelopment Agency of the City of Vernon and
R.B.R. Meat Co., Inc.
Dear Mr. Miller:
Enclosed please find one additional original of the
aforementioned Agreement which needs to be signed by you and
returned to me as soon as possible.
You previously executed duplicate originals of the
Agreement, but one additional one needs to be executed because
there are three parties to the Agreement.
Thank you for your cooperation and.courtesy in this matter,
and if you have any questions, please do not hesitate to call
me.
Very truly yours,
udy ehr
Legal Department
jl
Enclosure
CC: Ms. Gloria Orosco, Chief Deputy City Clerk (w/o encls.)