Resolution No. 7741T k r i i a
1 RESOLUTION NO. 7741
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE EXECUTION OF AN
4 AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES BY
5 AND BETWEEN THE CITY OF VERNON AND CARTER &
BURGESS, INC. FOR COMBINED CYCLE POWER PLANT
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7 WHEREAS, the City of Vernon has been exploring possible
8 alternatives for the generation of capacity to meet the City's growing
9 electrical needs; and
10 WHEREAS, the Utilities Department has determined that a
11 Combined -Cycle Power Plant will assist the City in providing cost
12 effective, efficient and reliable electricity; and
13 WHEREAS, the City of Vernon needs the services of a
14 consultant as soon as possible to prepare a Project Development Plan
15 to assist the City in meeting the licensing and environmental
16 requirements of such a project and obtaining information on plant
17 performance parameters and costs in order to expedite the completion
18 of the Combined Cycle Power Plant; and
19 WHEREAS, by letter dated March 29, 2001, Bruce V.
20 Malkenhorst, the City Administrator/City Clerk, recommended approval of
21 an Agreement for Professional Consulting Services with Carter &
22 Burgess, Inc. for the preparation of a Project Development Plan for the
23 Combined Cycle Power Plant; and
24 WHEREAS, in order to meet the urgent need to start the
25 project as soon as possible, the City Administrator executed on
26 March 29, 2001, the Agreement for Professional Consulting Services
27 subject to ratification by the City Council; and
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1 WHEREAS, the City Council desires to approve and ratify the
2 Agreement for Professional Consulting Services as executed by the City
3 Administrator; and
4 WHEREAS, the City Council of the City of Vernon has
5 determined that, pursuant to the provisions of Subsection (a) of
6 Section 2.27 of the Vernon City Code, it is in the public interest and
7 necessity to proceed with the preparation of a Project Development Plan)
8 for the Combined Cycle Power Plant and to enter into an agreement with
9 Carter & Burgess, Inc.
10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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11 CITY OF VERNON AS FOLLOWS:
12 SECTION 1: The City Council of the City of Vernon hereby
13 finds and determines that the recitals contained hereinabove are true
14 and correct.
15 SECTION 2: The City Council of the City of Vernon hereby
16 approves and ratifies the Agreement for Professional Consulting
17 Services with Carter & Burgess, Inc., a copy of which is attached
18 hereto as Exhibit "A" and made a part hereof.
19 SECTION 3: The City Council of the City of Vernon hereby
20 ratifies the execution of the Agreement by the City Administrator on
21 behalf of the City of Vernon.
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SECTION 4: 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 4th day of April, 2001.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
LEONIS C. MAL URG, MiYyor
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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.
7741, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, April 4,
2001, and thereafter was duly signed by the Mayor of the City of
Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
1 AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES
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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 304i� day of March,
6 2001, in the City of Vernon, County of Los Angeles, California
7 BY AND BETWEEN THE CITY OF VERNON
(hereinafter referred to as
8 the "City")
4305 Santa Fe Avenue
91 Vernon, CA 90058
10 AND CARTER & BURGESS, INC.
(hereinafter referred to as
11 "Consultant")
15821 Ventura Blvd., #465
12 Encino, CA 91436
13 RECITALS
14 WHEREAS, the City is interested in the development of a
15 Combined Cycle Power Plant (the "Project") for purposes of installing
16 additional generating capacity that is capable of yielding cost
171 effective, efficient and reliable electricity to meet its goals, while
18 meeting Federal, State and local environmental and siting
19 requirements; and
20 WHEREAS, the City requires the services of a consultant to
21 prepare a Project Development Plan, (the "Plan") which will provide the
22 City with information on licensing and permitting requirements, plant
23 performance parameters, descriptions and recommendations on equipment
24 and systems, costs and scheduling that will enable the City to develop
25 sufficient engineering detail to generate specifications for the
26 purchase of long lead equipment items and the initiation of permitting
27 and licensing activities for the Project; and
WHEREAS, Consultant submitted a proposal to the City dated
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1 March 23, 2001 (the "Proposal") that includes a description of
2 proposed services and a cost estimate for the Plan; and
3 WHEREAS, Consultant represents that it is qualified to
4 perform such services and is willing to render such professional
5 services as hereinafter defined; and
6 WHEREAS, the City desires to engage the services of
7 Consultant to prepare the Plan.
8 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET
g FORTH HEREIN:
10 1. SCOPE OF SERVICES.
11 Consultant shall perform the services outlined in the
12 Proposal, a copy of which is attached hereto as Exhibit "A" and
13 incorporated herein by reference. In the event of a conflict between
14 the Proposal and this Agreement, the terms of this Agreement shall
151 prevail.
161 2. PROGRESS REPORTS.
17 Consultant shall provide written progress reports, as
18 requested by the City, in order to advise the City, as quickly as
19 possible, of significant milestones or conclusions that will assist
20 the City in making progress toward the completion of the Project.
21 Consultant shall also meet with City staff, upon City's request, or as
22 needed, in order to provide reports or information concerning the
23 services being performed by Consultant under this Agreement.
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1 3. TIME OF PERFORMANCE.
2 Consultant's services shall commence upon signing of the
3 Agreement and shall continue until the Plan is completed, unless the
4 Agreement is terminated.
5 4. COMPENSATION.
6 A. Consulting Costs. It is estimated that the
7 work to be performed by Consultant under this Agreement will require a
8 total of six hundred and twelve (612) man hours, at an average rate of
9 One Hundred and Forty Dollars and No Cents ($140.00) per hour. The
iol City will compensate Consultant for the development of the Plan
11 pursuant to Consultant's rate schedule which is attached hereto as
12 Exhibit "B." and incorporated herein by reference. The total amount to
13 be paid to Consultant under this Agreement shall not exceed a total of
14 Eighty -Five Thousand Six Hundred Eighty Dollars and No Cents
15 ($85, 680.00) .
16 B. Other Expenses. Other expenses may.only be
17 billed if advance written approval has been obtained from the City
18 Administrator.
19 5. METHOD OF PAYMENT.
20 Consultant shall submit within thirty (30) days after the
21 last day of any month in which services have been performed or costs
22 incurred hereunder an invoice to the City. Invoices shall contain an
23 itemization of services rendered, directly related job expenses and
24 subcontract charges incurred by Consultant and for which compensation
25 is due. Consultant shall be responsible for paying any subcontractors
26 used in the performance of this Agreement. Subcontractors shall not
27 bill the City directly.
28 Payment of the invoice shall be made after acceptance and
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1 approval by the City within thirty (30) days of receipt.. The City's
2 approval of the invoice shall not be unreasonably withheld.
3 6. CHANGES AND EXTRA SERVICES.
4 The City reserves the right to request changes in the
5 services to be performed by Consultant. All such changes shall be
6 incorporated in written change orders executed by the City and
7 Consultant which shall specify the changes ordered and the adjustment
8 of compensation and completion time required thereof.
9 Any services added to the scope of this Agreement by a change
10 order shall be executed under all applicable conditions of this
it Agreement.- No claim for additional compensation or extension of time
12 shall be recognized unless contained in a duly executed change order.
13 7. PRODUCTS OF CONSULTING.
14 All documents, data, studies, surveys, drawings, maps,
15 models, photographs and reports prepared by Consultant under this
16 Agreement shall be considered the property of the City. Such
17 documents and materials shall be delivered to the City by Consultant
181 as they are generated; however, Consultant may take and retain copies
19 of such documents and materials as desired.
20 8. Termination. This Agreement may be terminated by the
21 City without cause on ten (10) days written notice to Consultant. In
22 the event of such termination by the City, Consultant.shall be
23 entitled to only the compensation earned by it prior to the date of
24 the termination notice, plus compensation for necessary work performed
25 during the ten-day notice period and authorized in the termination
26 notice.
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1 9. NOTICES. Notices to the parties, unless otherwise
2 requested in writing, shall be sent to: _
3 City: THE CITY OF VERNON
ATTN: BRUCE V. MALKENHORST
4 CITY ADMINISTRATOR
4305 SANTA FE AVENUE
5 VERNON, CA 90058-0805
6 Consultant: CARTER & BURGESS, INC.
7 ATTN: ARTHUR J. HADNETT, L.A. OPERATIONS MANAGER
15821 VENTURA BLVD., SUITE 465
8 ENCINO, CA 91436
91 10. CONFIDENTIAL INFORMATION.
10 A. Access to Confidential Information. The City may
11 provide Consultant with, or allow Consultant access to, certain
12 information not available to the public concerning the City, or
13 businesses located in the City. The information may include company
14 information, taxes, sales, value of assets, or other such information.
15 All such information shall be known as "Confidential Information."
16 B. No Disclosure. Except as expressly permitted,
17 Consultant shall not disclose, permit the disclosure of, release,
18 disseminate,, or transfer, whether orally or by any other means, any
19 part of such Confidential Information to any other -person or entity,
20 whether corporate, governmental, or individual, without the express
21 prior written consent of an authorized representative of the City.
22 Consultant shall return any written Confidential Information and all
23 copies made of such items to the City upon the City's written request,
24 but in any event not later than the date that Consultant has performed
25 all services to be performed pursuant to this Agreement. Consultant
26 hereby agrees that such Confidential Information and any documents
2.7 provided may be used by Consultant only as authorized by the City.
28 Consultant shall take reasonable measures to avoid any disclosure of
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1 any such Confidential Information to any unauthorized person.
2 C. Court Ordered Disclosure. Consultant shall
3 immediately notify the City of any court order or subpoena requiring
4 disclosure of Confidential Information, and shall cooperate with legal
5 counsel in the appeal or challenge of any such order or subpoena.
6 Recipient may only disclose Confidential Information required.to be
7 disclosed pursuant to court order or subpoena after legal counsel has
81 exhausted any lawful and timely appeal or challenge.
91 D. Remedies. In addition to any other remedies that
10 it may have at law or in equity, the City shall be entitled to a
11 temporary and permanent injunction by a court of competent
12 jurisdiction against any breach or threatened breach of the
13 Confidential Information provisions of this Agreement. Consultant
14 acknowledges that in case of such breach or threatened breach of said
15 provisions, the City would have no adequate remedy at law.
16 11. GENERAL PROVISIONS.
17 A. Independent Contractor. At all times during the
18 term of this Agreement, Consultant shall be an independent contractor
19 and shall not be an employee of the City. The City shall have the
20 right to control Consultant only insofar as the results of
21 Consultant's services rendered pursuant to this Agreement; however,
22 the City shall not have the right to control the means by which
231 Consultant accomplishes services rendered pursuant to the Agreement
24 except to the extent that such services involve the use of City
25 property or Confidential Information.
26 B. Consultant Not Agent. Except as the City may
27 specify in writing, Consultant shall have no authority, express or
28 implied, to act on behalf of the City in any capacity whatsoever as an
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agent. Consultant shall have no authority, expressed or implied,
pursuant to this Agreement to bind the City to any obligation
whatsoever.
C. Indemnification. Consultant shall indemnify,
defend, protect and hold the City and its officers, agents and
employees, free and harmless from and against.any and all claims,
demands, losses, damages, liabilities, fines, charges, penalties,
orders, judgments and all costs and expenses incurred in connection
therewith, including reasonable attorney's fees and costs of defense
arising out of the services performed under this Agreement, except to
the extent -arising from or caused by the negligence or willful
misconduct of the City, its officers, agents or employees.
D. Insurance.' Prior to commencing work hereunder,
Consultant shall provide the City with proof of insurance providing
and maintaining the coverages and endorsements set forth in the
Insurance Schedule attached hereto as Exhibit "C" and made.a part
hereof by reference. Said proof of insurance shall also provide that
said policy or policies shall not be canceled or materially reduced in
coverage without giving at least thirty (30) days prior written notice
to the City. Consultant shall not permit a subcontractor or vendor to
perform work on City premises unless and until a certificate of
insurance is obtained showing that such subcontractor or vendor has
worker's compensation coverage.
If Consultant employs subcontractors as part of the
services rendered, Consultant's protective coverage is required.
Consultant may include all subcontractors as insureds under its own
policy or shall furnish separate insurance for each subcontractor,
meeting the requirements set forth herein.
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E. Governing Law. The validity, interpretation and
performance of this Agreement shall be controlled and construed under
the laws of the State of California.
F. Assignment and Subcontracting Prohibited. No
party to this Agreement may assign or subcontract any right or
obligation pursuant to this Agreement except with the express written
consent of the other party. Any other attempted or purported
assignment of any right or obligation pursuant to this Agreement shall
be void and of no effect.
G. Amendments. This Agreement may be modified or
amended only by a written document executed by both Consultant and the
City and approved a to form by the City Attorney.
H. Entire Agreement. This Agreement is the entire
agreement of the parties. Consultant represents that in entering into
this Agreement, it has not relied on any previous representations or
understandings of any kind or nature.
I. Benefit of Agreement. This Agreement shall bind
and benefit the parties hereto and their heirs, successors, and
permitted assigns.
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IN WITNESS WHEREOF,
the parties have caused this Agreement to
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be executed by and through their authorized officers on the date,
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month and year first written
above.
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CITY OF VERNON
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B y : /�— "
BRUCE V. MALKENHORST
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City Administrator/City Clerk
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APPROVED AS TO FORM:
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EDUARDO OLIVO, City Attorney
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C R & BU ES INC.
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By:
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Tit e: A 1AA1a^J6, r
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By:
15D�
Titl
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MAR-28-2001 WED 10:46 AM EDUARDO UL1VU Pfix Nu. t
!.' Carter IWA Bu ss
Coj;,ulian s in Planning, Encginoedng, Archiieciure,
C_unsfivudion titancigom. nt, and Related Services
Bruce Malkenhorst, City Administrator
City of Vernon
4305 Santa fie Avenue
Vernon, CA 90055
March 23, 2001
WE,. Project Development PIan for Combined Cycle Power Plant
Carter Burgess, Inc., Los Angeles Office, is pleased to provide this proposal to assist the City of
Vernon with the planning for the development of a Combined Cycle Power Plant project, The project,
at the start, would consist of 2-LM6000 gas turbine generators, or equivalents, operating in simple
cycle, followed by the addition of a heat recovery steam generator and condensing steam turbine cycle.
The initial simple cycle installation can be completed 5 months after equipment delivery, while the
steam turbine bottoming cycle requires a 9 month installation cycle.
Objective and Scope
The scope of work involves providing consulting expertise and assistance in the development of the
plan to install a Combined Cycle Power Plant within the City of Vernon. The Plan will provide a
written narrative of the proposed project and will include sections on plant performance parameters,
descriptions of equipment and systems, general arrangement drawings, project schedule and cost
estimate. Additionally, the plan will address licensing requirements, permitting issues and plant siting
issues and recommend courses of action. 'I'hc City of Vernon will participate in all planning aspects
and assist in the preparation of the Plan by providing information on electrical needs, electrical
interconnection, gas supply, water supply, siting, zoning and financial input. The principal objectives
are:
To develop a Plan for the installation of a Combined Cycle Project by the City of Vernon. The
City of Vernon's main purpose is to install ddditional .generating capacity that will yield cost
effective, efficient and reliable electricity that will meet the goals of the City, while meeting
Federal, State and local environmental and siting requirements.
To assist the City of Vernon with the development of a Facility that will benefit the City of
Vernon, The Plan will be used as a framework for the development of the project.
The Plan will provide necessary information to the City on licensing requirements, permitting
requirements, the total estimated project cost and the project schedule. The plan will provide
sufficient information that will allow the city to go to next step. The next step is the
development of suf oient engineering, detail to generate specifications for the purchase of Iona
',;4 :-Scluipment items rand to initiate per.-dai a and licensfng antivistc:,G.
Approach
The approach will consist of six tasks. Inforination required to assist in the development of the flan
will be gathortd through disdussions with cjty Staff and review of project goals. The six (6) tastes are:
ti
Ctas:� & r`!ixgxs, iss
MAR-28-2001 WED 10 46 AM EDUARDO OLIVO FAX NO. 1 P. 02
1. Initial information gathering meeting with the City of Vernon to obtain site information, project
parameters, Bea and water supply information, transmission and interconnect information,
environmental work t"ate, and dispatchable basis of facility.
Estimated cost 32 Mhrs, @ $140/Hr. Ave, Item Cost $ 4,480
2. Review of the federal, state and local air quality regulations, licensing and environmental
issues.
a. Determine permitted stack emission targets, as developed by the SCAQMD for NOx,
Styx, VOC's, PM10, etc. = (24 Hrs.)
b. Determine SCAQMD's Best Available Control "Technology requirements, including a
research on combined catalyst NOx and CO control = (24 Hrs.)
Estimated cost 48Mlirs. @ $140/14r. Ave. Item Cost $ 6,720
3. Assess equipment options based on the LM 6000 gas turbines or equivalents.
a. Look at the various equipment arrangements = (32 Hrs.)
b. Determine the plant configuration most conducive to meeting the site, power output,
heat rate and emission requirements - (16 Hrs)
Estimated cost 48 Mhrs. @ $1404I-Ir. Ave. Item Cost $ 6,720
4. Provide recommended equipment arrangement, site plan, project cost estimate, schedule and
construction approacl-L
Provide economic life cycle analysis using available and published data. Client to provide soft
cost data.
Estimated cost _ 64 Mhrs. @ $140/Hr. Ave. Item Cost $ 8,960
5. Provide the following, deliverables for inclusion in the Plan:
a. Site Plan = (60 Ms.)
b. General arrangements = (80 Hrs.)
c. I-icat & material balance to determine preliminary heat rate using GT-Pro = (56 IIrs.)
d. Electrical one line = (40 Hrs.)
e. Assessment of discharge emissions, discharge issues and potential solutions - (32 Hrs.)
f. Combined Cycle written description = (40 Mrs.)
C. Project Schedule (32 I-irs.)
Estimated cost 340 Mhrs. a, $140/Hr. Ave. Item Cost $ 47,600
6. [Jae information developed above as the basis for the "Project Development PIAn Compile
information developed above. Edit, word process and publish preliminary and final versions of
the Plan to the City of Vernon.
Estimated cost 80 Mhrs. Q $140/Hr. Ave. Item Cost $ 11,200
1O— A[,S:
Expenses, hostage, telephone, reproduction, etc
City approved travel and other vuthorized expensr, at C-H cost.
Total Labor Cost [Z llrs Qa $140/ Hr. Ave.
$ Included in hates
S As Authorized
Labor S 85,680.00
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MAR-28-?UU1 WED 10:46 RM EDUPOU UL1VU rHA nU. i r. uj
Schedule
The schedule for developing the Combined Cycle Plan is expected to be completed two months after
issue of a City of Vernon Purchase Order.
We propose the services of Messer's Angel A. Alvarez, P2. and Jerry Gotlieb, P.> , as the leads for
our efforts to assist you in the preparation of the Plan. Mr. Alvarez has in the past served as a manager
of large and small generation construction and maintenance projects, while Mr. Gotlieb has 15 years of
experience developing generation projects in the industry. They will be supported by the Carter
Burgess staff located in Southern California and in Colorado. We are attaching their resumes for your
consideration.
Personnel and Labor Rates
As indicated above, Mr. Angel A. Alvarez and Mr. Gotlieb will be the lead Project Manager and
Consultant on this project, respectively. They will be assisted by additional Carter & Burgess
personnel per the Carter & Burgess published Rate Schedule. The average rate for work on the Plan is
estimated to be $140.00/Hr +authorized travel and other authorized third party expenses.
Carter & Burgess appreciates this opportunity to assist The City of Vernon. We believe that Mr.
Alvarez and Mr. Gotlieb, backed up by Carter and Burgess' project development expertise will be a
valuable asset to the City's project development efforts. Should you have any questions or require
further information, please call meat 818/784-7585.
Sincerely,
CAR' R &; BURGESS I C.
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Arthur J. Hadnett 1
Los Angeles Operations Manager
Attachment: Mr. Alvarez and Jerry Gotliev's restunes
M * .1 1,113 v 0 C,
MAR-20-20UI WED 04:57 PM EDUARUU UL1VU PRX NU. 1
J1 t4:06 FAX 181OT942655 CARTER & $URG15SS
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F. U1
ImuoV0011, .
NS Ceirter u Burgess
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Consultws; in Plonning, Engineering, Architecture,
Conslru�lion Manooement, and Reloted Services
March 28, 2001
13ruce Mallscnhorst, City Administrator
City of Vcrnott .
4305 Santa Fe Avenue
Vernon, CA 90058
N
RE: Project Development Planning Services for 2x LMS000 Combined -Cycle Power Plant
Dear Mr. Malkenhorst:
As per your request, Carter Burgess, Inc, Los Angeles is pleased to provide this proposal
amendment to tho City of Vernon for the planning and development of the Combined Cycle
Power Plant Project. Also attached are the requested copies of our insurance certificates. The
originals will follow via US Mail. Please let me know if I can be of further assistance.
Personnel and Labor Rates
As Mdicateid In our proposal dated March 23, 2001. Mr. Angel A. Alvarez and Mr. Gotrieb will be
the lead Project Manager and Consultant on this project, respectively. They will be assistod by
other Garter & Burgess personnel on additional work items per the following rate schedule:
Please refor to.the Following rate schedule:
Classification
Hourly Rate
Expenses
Project Manager
$190
Incurred
Consultant!
Vro
inautred
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Vatf lf6gineer
$130
As incurred
E . $u drvisor
5150
AS incurred
Marketina I Graphics
100
uu,xrrted
Analyst or Draftsman
$SQ
As incurred
Sincerely,
CARTE& BURGESS, I
NO ur J. Hpdnett
Los Angeles Ares Operations Manager
Attachment
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i
i
at& 8vWs% Inc. Suile Obi 1$821 Venture Blvd. Encino, CaOdmio 91-w
(818)-lt3 $3S Fax t8181784-2.655
EXIHIB.IT C
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EXHIBIT C
INSURANCE SCHEDULE (CONSULTANT)
Consultant shall provide proof of insurance, including a standard certificate of insurance, in at least the
following amounts and coverage (combined single limit permitted):
I. Coverage and Limits
Bodily Injury Property Damage
Hazards Each Person Each Accident Each Accident
Automobile Liability
Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Hired Automobiles $ 500,000 $1,000,000 $ 500,000
Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Workers' Compensation $ Statutory
Employers' Liability $1,000,000 per employer
II. General and Professional Liability
General Liability
$1,000,000
$2,000,000
$1,000,000
Independent Contractors
$1,000,000
$2,000,000
$1,000,000
Products - Completed Operations
$1,000,000
$2,000,000
$1,000,000
Contract Liability
$1,000,000
$2,000,000
$1,000,000
Professional Liability
$2,000,000
$2,000,000
$2,000,000
a. The general liability policy shall contain the following special endorsements which shall be noted on or
attached to the standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers, and employees as additional insureds
under the policy.
2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material
reduction of coverage.
3. An endorsement providing coverage for all operations under this Agreement.
4. Such other endorsement as may be required by addendum hereto.
b. In addition to the standard certificate of insurance, proof of general and professional liability coverage
shall be furnished in the form checked below. Certification of the following_ proofs by the insurance
agent or broker will not be accepted:
X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and
statements in the standard certificate of insurance (attached thereto) are true and correct and that
the signator is an officer authorized to so certify.
A copy of each policy certified by an officer of the underwriter or carrier and notarized.