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Resolution No. 84352 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 P�M RESOLUTION NO. 8435 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND RATIFYING THE EXECUTION OF AMENDMENTS TO CONTRACT FOR PROCUREMENT, CONSTRUCTION AND STARTUP BY AND BETWEEN THE CITY OF VERNON AND MARELICH MECHANICAL CO., INC., DBA UNIVERSITY MARELICH MECHANICAL & GALLIERA, INC., DBA TRICO CONSTRUCTION WHEREAS, on January 22, 2003, the City Council of the City of Vernon adopted Resolution No. 8115 approving a Contract for Procurement, Construction and Startup (the "Contract") with Marelich Mechanical Co., Inc., dba University Marelich Mechanical & Galliera, Inc., dba Trico Construction, a Joint Venture, ("Marelich"); and WHEREAS, on August 12, 2003, the Finance Committee considered the recommendation of Bruce V. Malkenhorst, the Director of Finance, that a change order to the Contract with Marelich for additional services in the sum of $3,009,756 be approved; and WHEREAS, on March 16, 2004, the Finance Committee considered the recommendation of Bruce V. Malkenhorst, the Director of Finance, that a change order to the Contract with Marelich for additional services in the sum of $1,922,124 be approved; and WHEREAS, in order to safeguard Vernon's rights under the Contract and in order to meet the urgent need for the additional services, the City Administrator executed a First Amendment to the Contract on or about October 14, 2003 and a Second Amendment to the Contract on or about March 24, 2004, and authorized payment in accordance with the terms thereof, subject to ratification by the City Council; and 2811 WHEREAS, on April 21, 2004, the Finance Committee considered 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 the recommendation of Bruce V. Malkenhorst, the Director of Finance, dated April 15, 2004, that the actions of the City Administrator pertaining to the execution of the two amendments and the issuance of payment in accordance therewith be ratified; and WHEREAS, the City Council desires to approve and ratify the First Amendment to the Contract, Second Amendment to the Contract, as executed by the City Administrator, and the payments in accordance therewith; 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 ratify entering into the First and Second Amendments to the Contract with Marelich. 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 ratifies the execution of the First Amendment to Contract for Procurement, Construction, and Startup, 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 Second Amendment to Contract for Procurement, Construction, and Startup, a copy of which is attached hereto as Exhibit "B" and made a part hereof. - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 !, 18 !, 19 20 21 22 23 24 25 26 27 28 SECTION 4: The City Council of the City of Vernon hereby approves and ratifies the payment of $3,009,756 and $1,891,491 in accordance with the terms of the Amendments. 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 21st day of April, 2004. ATTEST: zz'�� BRUCE V. MALKENHORST, City Clerk EONIS C. MAL URG, gayor - 3 - 1 2 3 4 5 6 7' 811 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 8435, 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 21, 2004, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk - 4 - EXHIBIT VAL TRICO CONSTRUCTION 41SSSZSS12 10/27/03 11:10am P. 002 FIRST AMENDMENT TO CONTRACT FOR PROCUREMENT, CONSTRUCTION, AND STARTUP This First Amendment to Contract for Procurement, Construction, and Startup for the Malburg Generating Station Project, Vernon, California (this "Amendment") is made as of September 10, 2003 by and between The City of Vernon, a municipal corporation (the "City") and Marelich Mechanical Co., Inc. dba University Marelich Mechanical & Galliera, Inc. dba Trico Construction, a Joint Venture (the "Contractor"), and is made with reference to the following: A. The City and the Contractor entered into that certain Contract for Procurement, Construction, and Startup for the Malburg Generating Station Project dated February 3, 2003 (the "Agreement"), pursuant to which the parties agreed that the Contractor would provide for the procurement, construction and start-up services for the City's development of a Combined Cycle Power Plant (the "Project"), on the terms and conditions described in the Agreement. B. The City and the Contractor have agreed that it would be in the best interest of the Project for the Contractor to perform additional work and provide additional materials and services in connection with the Project under the terms of the Agreement. C. Paragraph 6 of the Agreement requires that changes to the Project requiring expenditures in excess of $20,000 be accomplished by an Amendment to the Agreement. The additional labor and materials required in connection with the Project will exceed $20,000. Therefore, to comply with the terms of the Agreement, the City and the Contractor desire to enter into this Amendment to amend the terms of the Agreement as set forth below. Each initially capitalized term used in this Amendment without definition shall have the meaning ascribed to such term in the Agreement. THEREFORE, for valuable consideration, the parties agree as follows: 1. Additional Services Required. The City and the Contractor acknowledge and agree that the additional services described in this Paragraph I (collectively, the "Additional Services") are required in connection with the Project. The Additional Services constitute work that was not originally contemplated by the parties, and is now determined by the parties to be necessary to the Project. The Additional Services are: 1.1 Correction and revision of the drawings generated by the City's design engineers, Power Engineering, Inc. 1.2 Construction of the gas lateral linear. 1.3 Construction of meter skid, onsite abandonment of the existing gas line. 1.4 Additional handling and storage of the CTG, STG and HRSG. 1.5 Establishment of survey control points for the construction layout. 01910/0001 89987.3 TRICO CONSTRUCTION 41SSS28512 10/27/03 11:1Oam P. 003 2. Cost of Additional Services. The City and the Contractor agree that the total cost for all labor and materials for the Additional Services shall be a lump sum fee of $3,009,756 ( the "Additional Cost"). The Additional Cost is payable on the terms of the Agreement, following submission and approval of documentation as required by the Agreement. The City and the Contractor acknowledge and agree that the Additional Cost for the Additional Services described in Paragraph 1.1 above constitutes payment for the Contractor's pre -construction services, and does not include the cost of any additional labor, equipment, or other upgrades that may be required as a result of the revised drawings. 3. Terms of Additional Services. All Additional Services are to be provided in accordance with the terms of the Agreement, are to meet the standards and specifications and quality of work provisions set forth in the Agreement, and are to be covered by the same warranties or guarantees, if any, that are set forth in the Agreement. 4. Approval by the City. This Amendment shall be executed by a duly authorized representative of the City following approval of the terms of this Amendment by the City in accordance with City policies and procedures. 2 01910/0001 89987.3 r TRICO CONSTRUCTION 41SSS28S12 10/27/03 11:10am P. 004. 5. Remainder of Agreement. Except as specifically modified herein, all terms and conditions of the Agreement are unmodified and remain in full force and effect, and apply to the Additional Work and Additional Costs as if those services and costs were originally included in the Agreement. Executed as of the date first above written. APPROVED AS TO FORM ric T. Fresch, fegal. Counse LADOCS_89067_I.doe CITY OF VERNON Bruce V. Malkenhorst, City Administrator CONTRACTOR Marelich Mechanical Co., Inc. dba University Marelich Mechanical & Galliera, Inc. dba Trico Conqk,uction, a Joint Venture Si tore Date: /`?,_27` `� 2 Name: L.,;.,- iT � ,� =774"r- e- Title: Z By: S atu Date: l e' . i 41. a 3 Name: J &0 €.<' ' 2cCsc ;'y "?'A Title: EXHIBIT SECOND AMENDMENT (to] CONTRACT FOR PROCUREMENT, CONSTRUCTION. AND STARTUP This Second Amendment to Contract for Procurement, Construction, and Startup for the Malburg Generating Station Project, Vernon, California (this "Amendment") is made as of March 17, 2004 by and between The City of Vernon, a municipal corporation (the "City") and Marelich Mechanical Co., Inc. dba University Marelich Mechanical & Galliera, Inc. dba Trico Construction, a Joint Venture (the "Contractor"), and is made with reference to the following: A. The City and the Contractor entered into that certain Contract for Procurement, Construction, and Startup for the Malburg Generating Station Project dated February 3, 2003, as amended on September 10, 2003 (collectively, the "Agreement"), pursuant to which the parties agreed that the Contractor would provide for the procurement, construction and start-up services for the City's development of a Combined Cycle Power Plant (the "Project"), on the terms and conditions described in the Agreement. B. The City and the Contractor have agreed that it would be in the best interest of the Project for the Contractor to perform additional work and provide additional materials and services in connection with the Project under the terms of the Agreement. C. Paragraph 6 of the Agreement requires that changes to the Project requiring expenditures in excess of $20,000 be accomplished -by an Amendment to the Agreement. The additional labor and materials required in connection with the Project will exceed $20,000. Therefore, to comply with the terms of the Agreement, the City and the Contractor desire to enter into this Amendment to amend the terms of the Agreement as set forth below. Each initially capitalized term used in this Amendment without definition shall have the meaning ascribed to such term in the Agreement. THEREFORE, for valuable consideration, the parties agree as follows: 1. Additional Services Required. The City and the Contractor acknowledge and agree that the additional services described in Exhibit "A" to this Agreement, a copy of which is attached hereto and incorporated herein by this reference (collectively, the "Additional Services"), are required in connection with the Project. The Additional Services constitute work that was not originally contemplated by the parties, and is now determined by the parries to be necessary to the Project. This Amendment is entered into solely for the purpose of evidencing the City's approval of the cost components of the items listed in Exhibit "A". The parties specifically acknowledge and agree that this Amendment is not intended to and does not evidence the City's approval or the Contractor's waiver or settlement of any reference to or description of or claim in regard to a time delay or schedule impact that may be set forth in any of the Contractor's cost estimates, whether or not listed in Exhibit "A", all of which are subject to review and evaluation by the City. Contractor hereby waives any claim that the City's 01910/0001 98038.3 execution of this Amendment or payment of the Additional Cost (as described below) constitutes the City's express or implied agreement to any reference in any of the Contractor's cost estimates related to time delays or schedule impacts. 2. Cost of Additional Services. The City and the Contractor agree that the total cost for all labor and materials for the Additional Services shall be GMP of $1,891,491.00 (the "Additional Cost!). The Additional Cost is payable on the terms of the Agreement, following submission and approval of documentation as required by the Agreement. 3. Terms of Additional Services. All Additional Services are to be provided in accordance with the terms of the Agreement, are to meet the standards and specifications and quality of work provisions set forth in the Agreement, and are to be covered by the same warranties or guarantees, if any, that are set forth in the Agreement. 4. Ap rop val by the City. This Amendment shall be executed by a duly authorized representative of the City following approval of the terms of this Amendment by the City in accordance with City policies and procedures. 2 01910/0001 98038.3 5. Remainder of Agreement. Except as specifically modified herein, all terms and conditions of the Agreement are unmodified and remain in full force and effect, and apply to the Additional Work and Additional Costs as if those services and costs were originally included in the Agreement. Executed as of the date first above written. CITY OF VERNON By: �i�-'✓1'" . Bruce V. Malkenhorst, City Administrator APPROVED AS TO FORM Eric T. Fresch, City XtEforney CONTRACTOR Marelich Mechanical Co., Inc. dba University Marelich Mechanical & Galliera, Inc. dba Trico Construction, a Jg�int Venture '-- _._-.' Si e ( Date: vLo Name: ( v Title: VQ-7, By: _(' 'S '- a Date: '�42 5 10q Name: JA A-tr,& >g0!QC14k tx-A— Title: G ! / 01910/0001 98038.3 EXHIBIT A ADDITIONAL WORK CE 38 $612,773 Shoring CE 70 $16,004 Removal of Underground Piping CE 70B $3,278 Removal of CS Piping CE 82 $69,962 Correction to Remediation Trench CE 96 $193,617 Export soil from Site to 55th Street Lot CE 100 $1,781 BM Discrepancy Check CE 02 $12,566 Fuel Gas Heater Upgrade: CE 02A $1,528 Certs for Fuel Gas Heater CE 07 $4,777 Fuel Gas Liquid Waste Drain Tank CE 09 $200,950 Sales Tax through 09-03-03 CE 09A $186,331 Sales Tax 09-04-03 through 11-03-03 CE 09B $11,937 Sales Tax 11-04-03 through 12-03-04 CE 09C $912 Sales Tax 12-04-03 through 12-31-03 CE 09D $1,162 Sales Tax 01-01-04 through 01-31-04 CE 12 $33,296 Parshall Flume PO's 008 and 0017 CE 13 $41,113 Alfa Laval Heat Exchanger- Increased Heat Transfer CE 15 $8,395 Oil Retention Vaults CE 16 $36,610 CCI Control Valves CE 23 $12,227 Virginia Transformer Extended Warranty CE 27 $10,978 Security Fences, Equipment and Personnel CE 34C $102,182 Changes Rebar Quantity CE 35B $77,055 Conduit Increase-Alstom Drawings CE 35C $88,262 Seismic Requirements CE 70C $382 Remove Oil Pipe Southside of Jobsite CE 70D $4,025 Expose Cut/Cap PVC Pipes CE 71 $2,204 CCE Trip Hailey CE 73 $21,573 Locate 3 Bypass Valves at Cooling Tower CE 73A $2,507 Earthwork and Survey Existing Water Lines CE 82A $22,548 Remediation Trench HRSG #2 out to its Terminus CE 85 $3,600 Grouting Lube Oil Cooler CE 86 $9,372 Add Handicap Ramps to Security Trailer CE 88 $4,388 Removal of Debris and Piping South Side of Site CE 94 $39,410 Fab Bottom Ring -Two Tanks- Condensate and Raw Water CE 104 $5,210 ADA Portable Toilets CE 126 $1,408 Fuel Gas Heater Certs of Compliance CE 133 $797 Water Tank Usage Delay Time CE 168 $1,829 FedEx of Alstom Parts CE 173 $564 Galvanizing Anchor Bolts HRSG Blowdown Tank CE 173A $327 Galvanizing 8 Anchor Bolts Ladder Rungs CE 174 $15,724 Additional Fence Soto and Leonis/2910 50th CE 182 $6,605 Fab Rings HRSG Stacks CE 184 $3,160 2-24" Water Lines Removed CE 185 $4,836 Ramps for Fire Road CE 265 $828 Remove and Replace Wet Material at GSU's CE 267 $7,013 Fills for the Ammonia Ramp CE 268 $5,485 Fill and Compact Ammonia Ramp - TOTAL $1,891,491.00 LI 01910/0001 98038.3