Resolution No. 7767r '2 • i! f
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1 RESOLUTION NO. 7767
2
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
6
7 WHEREAS, on April 4, 2001, the City Council of the City of
8 Vernon adopted Resolution No. 7741 ratifying the execution of an
9 Agreement for Professional Consulting Services with Carter & Burgess,
10 Inc. for the preparation of a Project Development Plan to assist the
11 City in meeting the licensing and environmental requirements,of a
12 Combined Cycle Power Plant (the "Project"); and
13 WHEREAS, the City of Vernon needs the services of a
14 consultant as soon as possible to develop sufficient engineering
15 detail to generate general specifications for the purchase of long
16 lead equipment items, initiation of permitting and licensing
17 activities for the Project and for developing a construction bid
18 document; and
19 WHEREAS, by letter dated May 16, 2001, Bruce V. Malkenhorst,
20 the City Administrator/City Clerk, recommended approval of an Agreement
21 for Professional Consulting Services with Carter & Burgess, Inc. for
22 assistance in the (i) purchase of equipment items, (ii) commencement of
23 permitting and licensing activities and (iii) development of necessary
24 construction bid documents for the Project; and
25 WHEREAS, in order to meet the urgent need to proceed with
26 the Project as soon as possible, on May 15, 2001, the City
27 Administrator executed the Agreement for Professional Consulting
28 Services subject to ratification by the City Council; and
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WHEREAS, the City Council desires to approve and ratify the
Agreement for Professional Consulting Services as' executed by the City
Administrator; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of Subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to proceed with the purchase of equipment, initiation of
permitting and licensing activities and the development of construction
bid documents for the Project and to enter into an agreement with
Carter & Burgess, Inc.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct
SECTION 2: The City Council of the City of Vernon hereby
approves and ratifies the Agreement for Professional Consulting
Services with Carter & Burgess, Inc., a copy of which is attached
hereto as Exhibit "A" and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
ratifies the execution of the Agreement by the City Administrator on
behalf of the City of Vernon.
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. i2 t a " s
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 23rd day of May, 2001.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
EONIS C. MALB RG, Maydvr
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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.
7767, was duly adopted by the City Council of the City of Vernon at an
adjourned regular meeting of the City Council duly held on Wednesday,
May 23, 2001, and thereafter was duly signed by the Mayor of the City
of Vernon.
I�
BRUCE V. MALKENHORST, City Clerk
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EXHIBIT
0
l
AGREEMENT FOR PROFESISONAL CONSULTING SERVICES
THIS AGREEMENT is made, entered into and executed in duplicate originals, either copy,of
which may be considered and used as the original hereof for all purposes, as of this23 hhdttay of
64- 2001, in the City of Vernon, County of Los Angeles, California
BY AND BETWEEN
amp
THE CITY OF VERNON
(Hereinafter referred to as the "City"
4305 Santa Fe Avenue
Vernon, CA 90058
CARTER & BURGESS, INC.
(Hereinafter referred to as "Consultant"
15821 Ventura Blvd., Suite 465
Encino, CA 91436
RECITALS
WHEREAS, the City is interested in the development of a Combined Cycle Power Plant
(the "Project") for purposes of installing additional generating capacity that is capable of yielding
cost effective, efficient and reliable electricity to meet its goals, while meeting Federal, State and
local environmental and siting requirements; and
WHEREAS, the City requires the services of a consultant to develop sufficient
engineering detail to generate general specifications for the purchase of long lead equipment
items, initiation of permitting and licensing activities for the Project and for developing a
construction bid document; and
WHEREAS, Consultant submitted a revised proposal to the City dated May 14, 2001
(the "Proposal') that includes a description of proposed services and a cost estimate for the
services described; and
WHEREAS, Consultant represents that it is qualified to perform such services and is
willing to render such professional services as hereinafter defined; and
WHEREAS, the City desires to engage the services of Consultant to prepare the
services described in Attachment A.
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NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET FORTH
MMIXt- [Ii<Ir
1. SCOPE OF SERVICES.
Consultant shall perform the services outlined in the Proposal, a copy of which is attached
hereto as Exhibit "A and incorporated herein by reference. In the event of a conflict between
the Proposal and this Agreement, the terms of this Agreement shall prevail.
2. PROGRESS REPORTS
Consultant shall provide written progress reports, as requested by the City, in order to
advise the City, as quickly as possible, of significant milestones or conclusions that will assist
the City in making progress toward the completion of the Project. Consultant shall also meet
the City staff, upon City's request, or as needed, in order to provide reports or information
concerning the services being performed by Consultant under this Agreement.
3. TIME OF PERFORMANCE
Consultant's services shall commence upon signing of the Agreement and shall continue
until the Scope of Services as shown in Exhibit W is completed, unless the Agreement is
terminated.
4. COMPENSATION
A. Consulting Costs The total amount to be paid to Consultant under this
Agreement shall not exceed a total of Five Hundred and Fifty Nine Thousand
Dollars and No Cents ($559,000.00).
B. Travel Expenses. Up to six (6) round trips to the City of Vernon, from Denver, is
included in the firm price noted above. Additional trips shall be invoiced to the
City at C-B's cost.
C. Other Expenses. Other expenses may only be billed, if advance written approval
from the City is obtained.
5. METHOD OF PAYMENT
Consultant shall submit within thirty (30) days after the last day of any month in which
services have been performed or costs incurred hereunder an invoice to the City. Invoices
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shall contain an itemization of services rendered, directly related job expenses and
subcontract charges incurred by Consultant and for which compensation is due. Consultant
shall be responsible for paying any subcontractors used in the performance of this
Agreement. Subcontractors shall not bill the City directly.
Payment of the invoice shall be made after acceptance and approval of the City within
thirty (30) days of receipt. The City's approval of the invoice shall not be unreasonably
withheld.
6. CHANGES AND EXTRA SERVICES
The City reserves the right to request changes in the services to be performed by
Consultant. All such changes shall be incorporated in written change orders executed by
the City and Consultant which shall specify the changes ordered and the adjustment of
compensation and completion time required thereof.
Any services added to the scope of this Agreement by a change order shall be executed
under all applicable conditions of this Agreement. No claim for additional compensation or
extension of time shall be recognized unless contained in a duly executed change order.
7. PRODUCTS OF CONSULTING
All documents, data, studies, surveys, drawings, maps, models, photographs and
reports prepared by Consultant under this Agreement shall be considered the property of
the City. Such documents and materials shall be delivered to the City by Consultant as they
are generated, however, Consultant may take and retain copies of such documents and
materials as desired.
8. TERMINATION
This Agreement may be terminated by the City without cause with ten (10) days written
notice to Consultant. In the event of such termination by the City, Consultant shall be
entitled to only the compensation earned by it prior to the date of the termination notice, plus
compensation for necessary work performed during the ten-day notice period and
authorized in the termination notices.
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9. NOTICES
Notices to the parties, unless otherwise requested in writing, shall be sent to:
City: THE CITY OF VERNON
ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
4305 SANTA FE AVENUE
VERNON, CA 90058-0805
Consultant: CARTER & BURGESS, INC.
ATTN: J.M. Gotlieb, Unit Manager, PM/CM
216 16TH STREET MALL, SUITE 1700
DENVER, CO 80202
10. CONFIDENTIAL INFORMATION
A. Access to Confidential Information. The City may provide Consultant with, or
allow Consultant access to, certain information not available to the public
conceming the City, or businesses located in the City. The information may
include company information, taxes, sales, value of assets, or other such
information. All such information shall be known as "Confidential Information".
B. No Disclosure. Except as expressly permitted, Consultant shall not disclose,
permit the disclosure of, release, disseminate, or transfer, whether orally or by
any other means, any part of such Confidential Information to any other person
or entity, whether corporate, governmental, or individual, without the express
prior written consent of an authorized representative of the City. Consultant shall
return any written Confidential Information and all copies made of such items to
the City upon the City's written request, but in any event not later than the date
that Consultant has performed all services to be performed pursuant to this
Agreement. Consultant hereby agrees that such Confidential Information and
any documents provided may be used by Consultant only as authorized by the
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City. Consultant shall take reasonable measures to avoid any disclosure of any
such Confidential Information to any unauthorized person.
C. Court Ordered Disclosure. Consultant shall immediately notify the City of any
court order or subpoena requiring disclosure of Confidential Information and shall
cooperate with legal counsel in the appeal or challenge of any such order or
subpoena. Recipient may only disclose Confidential Information required to be
disclosed pursuant to court order or subpoena after legal counsel has exhausted
any lawful and timely appeal or challenge.
11. GENERAL PROVISIONS
A. Independent Contractor. At all times during the term of this Agreement,
Consultant shall be an independent contractor and shall not be an employee of
the City. The City shall have the right to control Consultant only insofar as the
results of Consultant's services rendered pursuant to this Agreement; however,
the City shall not have the right to control the means by which Consultant
accomplishes services rendered pursuant to the Agreement except to the extent
that such services involve the use of City property or Confidential Information.
B. Consultant Not Agent. Except as the City may specify in writing, Consultant shall
have no authority, express or implied to act on behalf of the City in any capacity
whatsoever as an agent. Consultant shall have no authority, expressed or
implied, pursuant to this Agreement to bind the. City to any obligations
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,
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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 commending 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 insured under its
own policy or shall furnish separate insurance for each subcontractor, meeting the requirements
set forth herein.
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
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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 from 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 no 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.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by and
through their authorized officers on the date, month and year written above.
A� VED AS TO F��
EDUARDO OLIVO
City Attorney
CITY OF V RNON
BRUCE V.-MALKENHORST
City Administrator/City Clerk
CA & BURGESS, INC.
By:
Duane M. Johnson
Title: Vice President
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EXHIBIT A
r
05/14/2001 14:52 FAX
CARTER BURGESS
Q 002,
Carter"Bsurgess
May 14, 2001
(Revised to incorporate City comments of 5/14/01)
City of Vernon
Attn. Mr. Kenneth J. DeDario,
Director of Light & Power
4305 Santa Fe Avenue
Vernon, CA 90058
Fax: 323-583-1983
216 81.0et001. SISIC& MA
Suite 1700
i)enser, Co3riade 80202-5131
Phone: 303.820.5202
Fax: 303.595.0833
Reference: Proposed Work Scope for 120 MW Combined Cycle Power Plant at Station A
Dear Mr. DeDario;
The basic scope of Carter Burgess' original effort was to prepare a development plan/feasibility
study to allow the City to evaluate its options. This effort is scheduled for completion no later
than May 31, 2000.
Carter Burgess issued an interim report on April 30, 2001. This report identified issues critical to
meeting the City's June 1, 2002 simple cycle operation date and a Spring 2003 combined cycle
operation date. Basically, the Carter Burgess schedule analysis showed that many engineering
and procurement items have to happen in the next few weeks in order for the City to achieve its
scheduled in-service dates. The following task items have been identified as critical:
1. Assist the City in completing the technical negotiations with the successful
combustion turbine supplier.
2. Establish the final heat balance for both simple and combined cycle arrangement,
at various operating levels. This will allow the necessary general arrangement
and permitting efforts to proceed.
3. Coordinate with the combustion turbine supplier to optimize the arrangement for
the simple cycle equipment and the future installation of the combined cycle
equipment.
C:a da & Burgess, Inc. Cash & Bm Bess Conxdtams. Ins:. hi.x..m & T gird .•trchitr 'Engineers, P.C. iicnt &laird .airciriteas•'Fa iaaerva, Inc.
CRT Nevada, Inc.
05/14/200,1 14:53 FAX CARTER BURGESS Q003,
Carterr-Burgess
4. In order to-,
✓ complete the site plan and general arrangement,
✓ supply the necessary information to the CEC and other permitting bodies,
✓ ensure equipment delivery to meet the City's schedule for simple and
combined cycle operation;
the following major pieces of equipment should be specified and orders placed:
Heat Recovery Steam Generator, Steam Turbine, Booster Gas Compressors, and
the Main and Unit Auxiliary Transformers.
In order to keep the project moving, Carter Burgess has already started the bid
cycle for most of these items.
5.I Evaluate the expediency of supplying the simple cycle SCR equipment by
separate bid or by adding it to the combustion turbine supplier's scope.
Determine if the SCR, ductwork and stack for the simple cycle phase will also
have to specified and purchased before a Contractor can be put in place. If it is
determined that the SCR will have to be purchased early, then C-B will add it to
its scope of work identified in 4, above. Provide a cost comparison between
SCONOX and conventional combined SCR. Derive a cost benefit, if any, if the
SCONOX can be driven to 2.5 PPM NOx as an savings against the City buying
additional NOx off -sets.
6. Perform an optimization for the combustion turbine inlet cooling requirements, to
meet the City's power requirements. Both simple and combined cycle will be
evaluated.
7. Perform a cooling tower, condenser sizing optimization. This will determine the
best arrangement of cooling tower to condenser size for the specific plant and
equipment arrangement.
8. Prepare detailed system desctiptions for permit support. The preliminary system
descriptions provided in the Development Plan will be expanded on based on
specific vendor and site information in sufficient detail to support the permitting
and siting effort.
9. To support permitting, an accurate water balance will be required. The balance
will be prepared based on the final heat balance and cooling cycle optimization as
well as the specific supply water quality and quantity. This work will be an
optimization of the preliminary water balance provided in the Development Plan.
Carter & &nrxs. Inc. Cart" & I3w-Vv GunulttWs. Inc. Nixon & lArd AJ'%4JitOLIf-TngiuOeM P.C. C&T3 i weds- rnc-
05/14/2001 14:54 FAX CARTER BURGESS
Carter"Burgess
11 004.
10. A detailed analysis of the water treatment requirements will be required based on
the selected water source(s). This will also be based on the specific raw water
quality.
11. Prepare major system Process and Instrument Flow Diagrams to support
permitting and development of the EPC bid package. This body of work will be
based on the final plant. configuration. The work performed in the Development
Plan will be expanded to meet permitting and CEC application requirements.
12. Prepare detailed general arrangement based on vendor input, heat balance etc.
This will be continuation of the drawings already started.
13. To support permitting and since a portion of the major equipment will already be
ordered, we will then complete a more accurate cost estimate for the project. This
will update the preliminary cost estimate that is being prepared.
14. A more detailed project schedule will be required to support permitting and to
evaluate construction sequencing. It will be based on the major vendors
information and the refinements generated by the above analysis.
15. For the permit support, a review of the solid waste and or waste treatment options
will be required.
16. Additional general support will be required to work with the City and the
Environmental Consulting firm to support the permitting effort.
17. C-B will work with the City to qualify interested contractors for the detailed
Design, Procurement and Construction (EPC) work for the Simple Cycle Phase
and 'the Combined Cycle Phase.
18. Prepare a detailed EPC bid package for the Simple and Combined Cycle Phases.
Issue, evaluate and assist the City in awarding this contract.
19. Work with the City to complete a black plant startup study to verify the necessary
electric equipment to meet the vendors requirements and the City's existing
equiPme,ra. .
20. Complete a detailed. electric one line based on the combustion turbine, .steam
turbine, transformers, black start capability, etc.
Carta & I3m- , Inc. Nixan & Laird An.�hittrmTngiueerx P.C. Nixrnt & l..aird Arctitecis!Enejljecm ltta. C&B Nexrd a. Ino.
05114X2001 14:55 FAX CARTER BURGESS 1b.005
Carter. -=Burgess
We propose to complete these tasks for a firm price of $559,000. This price includes the
expenses of six(6) round trips to the City of Vernon or other places of comparable cost.
Additional authorized travel and expenses will be passed through to the City at our cost without
markup. Please find attached, our proposed Terms and Conditions for the scope of work
described above. The Terms are very similar to those that govern our existing work with the
City.
Carter Burgess proposes to staff and manage the work with the experienced team that performed
the Development Plan work. Our Los Angeles office will perform detailed design work. Jerry
Gotlieb and Angel Alvarez will continue on as Project Managers for Carter & Burgess. Kelvin
Moore will continue on in his role as Project Engineer.
Carter Burgess can provide additional support to oversee the Contractor and to support the City
after the EPC.contract is awarded.
We appreciate this opportunity and look forward to working with you. If you have any
gitWstiohs, please contact us.
Sincerely,
Carter & Burgess, Inc.
Perryotlieb, PE,
Manager, PM/CM
Attachment:
Caries & Burrm. Iuc. Career & Iimg�sa Cunsultantr� Ittc . :*`ixan &Laird ear 7ltdGS vgill T4 F.C. Rtixor & i. tird ArotmectsBngin eas [itc C, �3 tvrradx. Inc.
Mj
C
• r
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
July 17, 2001
Carter & Burgess, Inc.
Attn: J.M. Gotlieb, Unit Manager, PM/CM
216 16th Street Mall,
Suite 1700
Denver, CO 80202
Re: Professional Consulting Services Agreement
Dear Mr. Gotlieb:
A l
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
STEVEN E. PARKER
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
On June 11, 2001, we faxed a copy of the insurance requirement to Mr.
Dan Heilig, pursuant to Section 11.D. of the agreement that was
approved at the City Council meeting held May 23, 2001. To this date
we have not received the insurance documents.
Please submit your proof of insurance to Mrs. Joan Francone, Risk
Manager, for review and approval. Upon receipt of said documentation
this office will forward to you a copy of a fully executed original
agreement.
If you should have any questions please contact Joan Francone, at ext.
322.
Ver tru-'y
yours,
d&4-tV
tJ. Or s Chief Deputy City Clerk
GJO:ng
CC: Joan Francone
14 NO,
Agreement File No. 01-047
SUPPORTING
DOCUMENTS
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) 826-1438
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
August 20, 2001
Carter &Burgess, Inc.
Attn: J.M. Gotlieb, Unit Manager, PM/CM
216 16th Street Mall
Suite 1700
Denver, CO 80202
Re: Professional Consulting Services Agreement
Dear Mr. Gotlieb:
EDUARDO OLIVO
City Attorney
FAX: (562) 927-8722
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
FAX: (323)826-1481
The insurance requirement has been satisfied. Transmitted herewith is
a copy of fully executed consulting services agreement for your file.
If you have any questions regarding this matter, please call Mr.
Kenneth DeDario at 323/583-8811 ext. 211.
Ver truly yours,
is r co
Chief Dep ty City Clerk
CC: Kenneth DeDario
Resolution N �-- 1:
Agreement File No. 01-047