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Resolution No. 8536r ♦ 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Norm 18 19 20 21 22 23 24 25 26 RESOLUTION NO. 8536 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES CONTRACT BY AND BETWEEN THE CITY OF VERNON AND THOMASON MECHANICAL CORPORATION FOR THE MALBURG GENERATING STATION PROJECT WHEREAS, the City of Vernon ("City") is constructing a 134 MW Combined Cycle Power Plant, the Malburg Generating Station (the "Malburg Project"), for the purpose of installing additional generating capacity that will yield an efficient, cost-effective, and reliable source of electric generation to the City's inhabitants; and WHEREAS, on July 16, 2003, the City Council of the City of Vernon adopted Resolution No. 8252 with the intention of expediting the purchase of supplies and services for the Malburg Project; and WHEREAS, the City has determined that it needs the services of a vendor to inspect and perform mechanical commissioning of the Malburg Project prior to start-up and commercial operation (hereinafter referred to as the "Commissioning"); and WHEREAS, Thomason Mechanical Corporation ("Thomason"), a subsidiary of Wood Group Power Operations, Inc., submitted a proposal dated August 18, 2004, to provide the Commissioning; and WHEREAS, Thomason has provided services to Vernon in the past relating to the diesel and gas turbine units and currently provides mechanical preventative maintenance and emergency services on the diesel units at the City's Power Plant; and WHEREAS, as a result of Thomason's past services to Vernon, 27 it should be able to provide the Commissioning services now required by 28 the City in a more efficient and effective manner; and P 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 WHEREAS, the City has determined that Thomason possesses the technical knowledge and expertise to furnish the Commissioning services to facilitate the Malburg Project; and WHEREAS, on September 15, 2004, the Finance Committee considered the recommendation of Bruce V. Malkenhorst, Director of Finance, dated September 8, 2004, that an agreement with Thomason be approved and executed; 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 enter into an agreement with Thomason. 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 the Professional Services Contract with Thomason Mechanical Corporation, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and the City Clerk to execute said Contract for, and on behalf of, the City of Vernon. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to send one fully executed Contract to: Thomason Mechanical Corporation Attn. Ed Davis, Manager 2150 E. 37th Street Vernon, CA 90058 - 2 - ( r 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 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 15th day of September, 2004. ATTEST: BRUCE V. MALKENHORST, City Clerk LEONIS C. MA BURG, ayor - 3 - r 1'i 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 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. 8536, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, September 15, 2004, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) �yr BRUCE V. MALKENHORST, City Clerk - 4 - EXHIBIT 0 1 PROFESSIONAL SERVICES CONTRACT 2 3 THIS CONTRACT 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 15th day of 6 September, 2004, in the City of Vernon, County of Los Angeles, 7 California 8 BY AND BETWEEN THE CITY OF VERNON 9 (hereinafter referred to as "City") 10 4305 Santa Fe Avenue Vernon, CA 90058 11 AND THOMASON MECHANICAL 12 CORPORATION (hereinafter referred to as "Thomason") 13 2150 E. 37th Street 14 Vernon, CA 90058 15 RECITALS 16 17 WHEREAS, City is constructing the Malburg Generating Station 18 Combined Cycle Power Plant at 2715 E. 50th Street in the City of 19 Vernon (the "Malburg Project") for purposes of installing additional 20 generating capacity that is capable of yielding cost effective, 21 efficient and reliable electricity to meet its goals, while meeting 22 Federal, State and local environmental and siting requirements; and 23 WHEREAS, the Malburg Project team has determined that it 24 needs the services of a vendor to inspect and perform mechanical 25 commissioning of the Malburg Project prior to start-up and commercial 26 operation (hereinafter referred to as the "Commissioning"); and 27 WHEREAS, Thomason prepared a Proposal dated August 18, 2004, 28 to provide Commissioning (hereinafter referred to as the "Proposal"), I a copy of which is attached hereto as Exhibit A and incorporated by 2 reference; and 3 WHEREAS, Thomason represents that it is qualified, properly 4 licensed and capable of furnishing the Commissioning services that the 51 City requires as set forth in the Proposal and is willing to-do so on 6 the terms and conditions set forth below; and 7 WHEREAS, the City desires to enter into an agreement with 8 Thomason to provide for the labor and materials necessary for the 9 Commissioning. 10 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 11 FORTH HEREIN: 12 1. Scope of Services. 13 Thomason agrees to provide the necessary material and 14 services for the Commissioning as set forth and described in detail in 15 the attached Exhibit A. Thomason shall provide said services at the 16 time, place and in the manner specified in the Proposal, subject to 17 the direction of the City, through its staff, as may be provided from 18 time to time. Such services shall include, but not be limited to, 19 system checks, alignment checks, inspections, assistance in flushing 20 of piping systems and associated piping modifications, startup and 21 testing of CTG #1, CTG #2, HRSG #1, HRSG #2, STG, Ammonia System, 22 Condensate System, Fuel Compressor Boosting Station, Main Circulating 23 Water System, Cooling Tower, Aux. Water System, Demin Water System, 24 Compressed Air System (instrument and plant) and Fire Protection 25 System. It is understood and agreed that in the event of a conflict 26 between the Proposal and this Contract, the terms of this Contract 27 shall prevail. 28 / / / - 2 - 1 2. Time of Performance. 2 Thomason's performance, as identified herein, shall commence 3 upon the full execution of this Contract. Performance of the 4 Commissioning services is to be completed no later than June.30, 2005. 5 If the Commissioning services are not completed within this time 6 period, the City shall have the option of canceling this Contract in 7 order to proceed with another vendor, if one can be located, or 8 extending the completion date. The completion date may be extended by 9 the City at its sole discretion for an additional thirty (30) days, or 10 such other time as the parties may agree. 11 3. Price, 12 The City shall pay Thomason for the actual time expended on 13 a time and materials basis. The total amount to be paid to Thomason 14 for the Commissioning, as described in the Proposal, shall not exceed 15 the sum of Five Hundred Sixty Thousand Dollars and No Cents 16 ($560,000.00), plus any applicable taxes. 17 4. Payment Terms. 18 Thomason shall submit within thirty (30) days after the last 19 day of any month in which services have been performed or costs 20 incurred hereunder an invoice to the City. Invoices shall contain an 21 itemization of services rendered, the names, labor classifications, 22 the hours worked for each workers on a specific job, the equipment 23 used and the number of hours the equipment was used, other directly 24 related job expenses and subcontract charges incurred by Thomason and 25 for which compensation is due. Thomason shall be responsible for 26 paying any subcontractors used in the performance of this Agreement. 27 Subcontractors shall not bill the City directly. 28 Payment of the invoice shall be made after acceptance and - 3 - I approval by the City within thirty (30) days of receipt. The City's 2 approval of the invoice shall not be unreasonably withheld. 3 5. Change and Extra Services. City reserves the right to 4 request changes in the Commissioning services to be performed by 5 Thomason. All such changes shall be incorporated in written change 6 orders executed by the City and Thomason that shall specify the 7 changes ordered and the adjustment of compensation and completion time 8 required thereof. 9 Any services added to the scope of this Agreement by a 10 change order shall be executed under all applicable conditions of this 11 Agreement. No claim for additional compensation or extension of time 12 shall be recognized unless contained in a duly executed change order. 13 6. Termination. This Contract may be terminated by the 14 City without cause on ten (10) days written notice to Thomason. In 15 the event of such termination by the City, Thomason shall be entitled 16 to only the compensation earned by it prior to the date the 17 termination notice, plus compensation for necessary work performed 18 during the ten (10) day notice period and authorized in the 19 termination notice. 20 7- Cancellation/Default. In the event that Thomason 21 commits a breach of a material condition of this Contract, City shall 22 notify Thomason in writing of said breach and if Thomason has not 23 cured or begun reasonable efforts to cure after fifteen (15) days of 24 receipt of said notice, and fails to diligently pursue corrective 25 action, City shall have the right to cancel this Contract for cause 26 based on Thomason' default. Thomason shall be responsible for any 27 direct costs due to City's re -procurement of the equivalent of the 28 equipment or services cancelled from Thomason. - 4 - 1 8. Confidential Information. 2 A. Access to Confidential Information. City may 3 provide Thomason and/or its subcontractor(s) with, or allow Thomason 4 access to, certain information not available to the public concerning 5 City, or businesses located in City. The information may include 6 company information, taxes, sales, value of assets, or other such 7 information. All such information shall be known as "Confidential 8 Information" and may not be used to circumvent the responsibility of 9 either party to this Contract. 10 B. No Disclosure. Except as expressly permitted, 11 Thomason and/or its subcontractor(s) shall not disclose, permit the 12 disclosure of, release, disseminate, or transfer, whether orally or by 13 any other means, any part of such Confidential Information to any 14 other person or entity, whether corporate, governmental, or 15 individual, without the express prior written consent of an authorized 16 representative of City. Thomason and/or its subcontractor(s) shall 17 return any written Confidential Information and all copies made of 18 such items to City upon City's written request, but in any event not 19 later than the date that Thomason has performed all services to be 20 performed pursuant to this Contract. Thomason hereby agrees that such 21 Confidential Information and any documents provided may be used by 22 Thomason and/or its subcontractor(s) only as authorized by the City. 23 Thomason shall include a contract provision in its contract with 24 subcontractors that binds the subcontractors to this non -disclosure 25 requirement. Thomason shall take reasonable measures to avoid any 26 disclosure of any such Confidential Information to any unauthorized 27 person. 28 C. Court Ordered Disclosure. Thomason shall - 5 - I immediately notify City of any court order or subpoena requiring 2 disclosure of Confidential Information, and shall cooperate with 3 City's legal counsel in responding to any such order or subpoena. 4 Thomason may only disclose Confidential Information required to be 5 disclosed pursuant to court order or subpoena after legal counsel has 6 exhausted any lawful and timely appeal or challenge. 7 D. Remedies. In addition to any other remedies that 8 it may have at law or in equity, City shall be entitled to a temporary 9 and permanent injunction by a court of competent jurisdiction against 10 any breach or threatened breach of the Confidential Information 11 provisions of this Agreement. Thomason acknowledges that in case of 12 such breach or threatened breach of said provisions, City would have 13 no adequate remedy at law. 14 9• Warranties. Thomason shall provide a one (1) year labor 15 and material warranty to begin upon City's acceptance of the 16 Commissioning. In addition, all manufacturers' warranties, and any 17 other warranties made applicable by law, shall apply to City's 18 purchase of the materials and labor provided by Thomason. 19 10. Compliance with Laws. Thomason shall strictly observe 20 and comply with all applicable federal, state, and local laws, 21 ordinances and regulations governing this sale, including but not 22 limited to any permit or license requirements of the United States 23 Department of Commerce, as well as any laws of the United States of 24 America. 25 11. Governing Law. The validity, interpretation and 26 performance of this Contract shall be controlled and construed under 27 the laws of the State of California. 28 12. Forum Selection. Any action brought relating to this - 6 - I Contract shall be brought and held exclusively in a State Court in the 2 County of Los Angeles, California. 3 13. Notices. Notices to the parties, unless otherwise 4 requested in writing, shall be sent to: 5 City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST 6 CITY ADMINISTRATOR 4305 SANTA FE AVENUE 7 VERNON, CA 90058-0805 8 Thomason: THOMASON MECHANICAL CORPORATION ATTN: ED DAVIS, MANAGER 9 2150 E. 37TH ST. VERNON, CA 90058 10 11 14. General Provisions. 12 A. Independent Contractor. At all times during the 13 term of this Contract, Thomason shall be an independent contractor and 14 shall not be an employee of the City. The City shall have the right 15 to control Thomason only insofar as the results of Thomason' services 16 rendered pursuant to this Contract; however, the City shall not have 17 the right to control the means by which Thomason accomplishes services 18 rendered pursuant to the Contract except to the extent that such 19 services involve the use of City property or Confidential Information. 20 B. Thomason Not Agent. Except as the City may 21 specify in writing, Thomason shall have no authority, express or 22 implied, to act on behalf of the City in any capacity whatsoever as an 23 agent. Thomason shall have no authority, expressed or implied, 24 pursuant to this Contract to bind the City to any obligation 25 whatsoever. 26 C. Indemnification. Thomason shall indemnify, 27 defend, protect and hold the City and its officers, agents and 28 employees, free and harmless from and against any and all claims, - 7 - I demands, losses, damages, liabilities, fines, charges, penalties, 2 orders, judgments and all costs and expenses incurred in connection 3 therewith, including reasonable attorney's fees and costs of defense 4 arising out of or attributable to the negligent or wrongful acts of 5 Thomason or its subcontractors, employees or agents in the performance 6 of services under this Contract, except to the extent arising from or 7 caused by the negligence or willful misconduct of the City, its 8 officers, agents or employees. 9 D. Insurance. Thomason agrees to provide insurance 10 in the amounts and forms specified in Exhibit B, which is attached 11 hereto and incorporated by reference. Comparable coverage shall be 12 provided for each subcontractor used in the performance of this 13 Contract. Thomason shall submit to the City documentation indicating 14 compliance with these minimum requirements no less than one (1) day 15 prior to the beginning of performance under this Contract. Thomason 16 shall not commence performance of its services under this Contract 17 until the above insurance has been obtained and proof of insurance has 18 been filed with and approved by the City. 19 Limitation on Contractor's Liability. Neither 20 party shall have any liability for consequential damages of any nature 21 whatsoever, however arising. In addition, the dollar amount of 22 Thomason's total liability under this Contract, shall not exceed the 23 amounts that may be recovered under the limits of the insurance 24 required to be maintained by Thomason hereunder, plus Thomason's 25 warranty. The limitation of the parties' liability shall apply 26 regardless of whether liability is asserted to arise in contract, 27 negligence or under any other theory of law. 28 E. Assignment and Subcontracting Prohibited. No - 8 - I party to this Contract may assign or subcontract any right or 2 obligation pursuant to this Contract except as especially and 3 specifically provided for in the Proposal or with the express written 4 consent of the other party. Any other attempted or purported 5 assignment of any right or obligation pursuant to this Contract shall 6 be void and of no effect. 7 F. Entire Agreement. This Contract constitutes the 8 complete and final expression of the agreement of the parties and is 9 intended as a complete and exclusive statement of the terms of their 10 agreement and supersedes all prior and contemporaneous offers, 11 promises, representations, negotiations, discussions, communications 12 and agreements which may have been made in connection with the subject 13 matter hereof. All exhibits are incorporated by reference. Thomason 14 represents that in entering into this Contract it has not relied on 15 any previous representations or understandings of any kind or nature. 16 G. Partial Invalidity. Wherever possible, each 17 provision hereof will be interpreted in such manner as to be effective 18 and valid under applicable law, but in case any one or more of the 19 provisions contained herein will, for any reason, be held to be 20 invalid, illegal or unenforceable in any respect, such provision will 21 be ineffective to the extent, but only to the extent of such 22 invalidity, illegality or unenforceability without invalidating the 23 remainder of such provision or provisions or any other provision 24 hereof, unless such a construction would be unreasonable or contrary 25 to the parties' intent as expressed in this Contract. 26 H. Benefit of Agreement. This Contract shall bind 27 and benefit the parties hereto and their heirs, successors, and 28 permitted assigns. - 9 - I I. Waiver. Any waiver at any time by either party of 2 its rights with respect to a default under this Contract, or with 3 respect to any other matters arising in connection with this Contract, 4 shall not be deemed a waiver with respect to subsequent default or 5 other matter. 6 J. Amendment. All changes or modifications to this 7 Contract shall be in writing stating that it is an amendment to this 8 Contract and shall be signed by both parties or their duly authorized 9 agents. This Contract shall not be modified through course of 10 dealing, usage or trade. 11 K. Force Maieure. Neither Party shall be considered 12 to be in default in any of its obligations under this Contract when a 13 failure of performance shall be due to an uncontrollable force. The 14 term "uncontrollable force" shall mean any cause beyond the control of 15 the party affected, including, but not restricted to, flood, 16 earthquake, storm, fire, lightening, epidemic, war, riot, civil 17 disturbance or disobedience, labor dispute, labor material shortage, 18 sabotage, federal, state, or municipal action, statute, ordinance, or 19 regulation, embargoes of the United States Government or any other 20 government, which by exercise of due diligence such party could not 21 reasonably have been expected to avoid and by exercise of due 22 diligence has been unable to overcome. Either party rendered unable 23 to fulfill any of its obligations under this Agreement by reason of an 24 uncontrollable force, shall give written notice within five (5) 25 business days of such fact to the other party and shall exercise due 26 diligence to remove such inability with all reasonable dispatch. 27 28 - 10 - 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 2811 IN WITNESS WHEREOF, the parties have caused this Contract to be executed by and through their authorized officers on the date, month and year first written above. FATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: ERIC T. FRESCH, City Attorney CITY OF VERNON By: LEONIS C. MALBURG, Mayor THOMASON MECHANICAL CORPORATION By: Type Name: Title: By: Type Name: Title: EXHIBIT 0 Corporate Office: No. California Office: 2150 E. 37t° Street 4595 Pacheco Blvd. Vernon, CA 90058 Martinez, CA 94553 Tel: (310) 639-3523 Tel: (925) 372-4844 Fax (310) 639-8217 Fax (925) 372-4845 www.thomasonmech.com www.woodgroup.com Manual Garcia City of Vernon Texas office: . Coletel Office: BENDER Machine 3444 E. Pasadena FrWy. 6261 Prescott Court 2150 E. 37'" Street Pasadena, TX 77503 Chino, CA 91710 Vernon, CA 90058 Tel: (713) 472-3444 Tel: (909) 590-4500 Tel: (323) 232-2371 Fax (713) 472-8428 Fax (909) 590-4600 Fax: (323) 232-6456 www.coletel.com www.benederus.com Subject: TMC Background and Experience Dear Mr. Garcia, This letter is to inform the City of Vernon of TMC capabilities and experience in the power generation construction and repair field. Background TMC has been in the repair and construction of power generation plants for over 33 years. TMC annual sales are over 60 million dollars. The Wood Group purchased TMC in 2002; the Wood Group has over 3 billion dollars in assets. The Wood Group experiences are O/M of power plants, O/M of gas distribution and compression plants, gas and steam turbine repair, generator repair, and the fabrication of gas turbine parts. TMC Combine Cycle Experience TMC experience in the construction and commissioning of combine cycle turbine power plants is extensive. R'T't projects TMC have been contracted to install and commission are: Sunrise Generating Station consisting of (2) GE 7FA Gas Turbine (2) HRSG (1) GE D11 Steam Turbine total MW output 500, also the installation of all balance of plant mechanical system. Elk Hills Power Generating Station consisting of (2) GE 7FA Gas turbine (2) HRSG (1) Alstom 264 Steam Turbine total MW output 500, also the installation of all balance of plant mechanical system. Corona Power Station (currently under construction) consisting of (2) GE LM2500 Gas Turbine (2) HESG and (1) Shinn Nippon Steam Turbine total MW output 120. TMC has the expertise to maintain and repair CTG's, STG's, boiler systems, boiler feed systems, gas compression systems and all BOP mechanical auxiliary equipment. TMC Experience with the City of Vernon TMC was contracted by the City of Vernon in June of 1981 to rebuild the existing power plant consisting of (5) Hamilton MAN Diesel internal combustion engines; other duties included the overhauling of all plant mechanical auxiliary equipment. In 1984 TMC was contracted to provide O/M for the plant and to train the new staff of operators employed by the City of Vernon. In 1997 TMC was contracted to install, commission and O/M 2 Allison gas turbines and all turbine auxiliary systems. Presently TMC has an ongoing contract with the City for all mechanical maintenance needs at the power plant. In closing TMC appreciates the opportunity to be of service for the needs of the City of Vernon these past 23 years. We at TMC look forward to servicing your needs in the future. Sincerely, EdDavis Ed Davis TMC Manager Corporaee Office: 2150E 37"' Street No. California Office: 4595 Pacheco Blvd. Vernon. CA 90058 Marti CA 94553 Tel- (310) 6393523 Tel.- (925) 372.4844 Fax (310) 639-8217 Fax (925) 372-4845 www.thomasonmech.com www.woodgroup.com 8/18/04 Manual Garcia City of Vernon Texas office: Coletvd Office: BENDER Machine 3444 E. Pasadena Fn vy. 6261 Prescott court 2150 E. 3r Street Pasadena, TX 77603 Chino, CA 91710 Vernon, CA 9005E Tel. (713) 4723444 Tel. (909) 590-4500 TN: (323) 232_2371 Fax (713) 472-8428 Fax (909) 590-46N Fax- (323) 232,6456 www.coletel.com www.benederas.com Subject:'TMC Labor Cost Breakdowns for Mechanical Commissioning MGS Dear Mr. Garcia, We at TMC/Wood Group are pleased with the opportunity to estimate the above -mentioned subject. The breakdown is as follows: CTG #1 Estimated Pricing 1) System check as per drawings $6,800 2) Inspection of inlet and exhaust pathways $2,500 3) Alignment checks hot and cold, shaft run out checks $7,500 4) Bearing inspections both turbine and generator $27,700 5) Assist in flushing of piping systems and associated piping modifications $25,000 6) Start up of units, balancing of temperatures and assist in performance testing $18,000 Total Estimate $77,500 CTG #2 Estimated Pricing 1) System check as per drawings $6,800 2) Inspection of inlet and exhaust pathways $2,500 3) Alignment checks hot and cold, shaft run out checks $7,500 4) Bearing inspections both turbine and generator $27 700 5) Assist in flushing of piping systems and associated piping modifications $25,000 6) Start up of units, balancing of temperatures and assist in performance testing $18,000 Total Estimate $77,500 At this time Alstom does not have a contract with the City for any commissioning duties. Alstom will be on -site and is responsible for the startup and performance testing of the units, which TMC will be assisting with. HRSG #1 Estimated Pricing 1) System check as per drawings $12 000 2) Assist in flushing of piping systems and associated piping modifications $22,500 3) Inspection and leak down testing of condenser $8,000 4) Alignment checks of blow down transfer pumps $2,000 5) Startup and testing of unit $10,000 6) Assist in Steam Blows $3,000 Total Estimate $57,500 HRSG #2 Estimated Pricing 1) System check as per drawings $12,000 2) Assist in flushing of piping systems and associated piping modifications $22,500 3) Inspection and leak down testing of condenser $8 000 4) Alignment checks of blow down transfer pumps $2,000 5) Startup and testing of unit $10,000 6) Assist in Steam Blows $3,000 Total Estimate $57,500 Alstom has a contract for the commissioning of these units, which TMC will be assisting. STG Estimated Pricing 1) System check as per drawings $6,000 2) Alignment checks hot and cold, shaft run out checks $7,500 3) Bearing inspections both turbine and generator $24,000 4) Assist in flushing of piping systems and associated piping modifications $15,000 5) Startup and testing of unit $7,500 Total Estimate $60,000 At this time Alstom does not have a contract with the City for any commissioning duties. Alstom will be on -site and is responsible for the start up and performance testing of the unit, which TMC will be assisting with. Ammonia System Estimated Pricing 1) System check as per drawings $3,000 2) Assist in flushing of piping systems and associated piping modifications $10,000 3) Alignment checks on pump with checks of pipe strain $3,000 4) Testing of vaporizing skids HRSG #1 and #2 $5,000 5) Load and start up of system $5,000 Total Estimate $26,000 Condensate System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks on deaerator & feed pumps with checks of pipe strain $7,000 3) Inspection of condenser with pressure testing $3,000 3) Assist in flushing of piping systems and associated piping modifications $10,000 4) Startup test $3,000 Total Estimate $26,000 Fuel Compressor Boosting Station Estimated Pricing 1) System check as per drawings $3,000 2) Compressor shaft alignment& run outs checks $7,000 3) Compressor bearing inspection $10,000 4) Compressor valve and piston inspection $30.000 5) Assist in flushing of piping systems and associated piping modifications $15,000 6) Pressure test and start up $10,000 Total Estimate $75,000 Main Circulating Water System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks with pipe strain checks on booster and tower pumps $8,000 3) Assist in flushing of piping systems and associated piping modifications $8,000 4) Pressure test and start up $4,000 Total Estimate $23,000 Cooling Tower Estimated Pricing 1) System check as per drawings $3,000 2) Inspect chemical feed system and test $2,000 3) Assist Marley Corporation with start up of unit $5,000 Total Estimate $10,000 Aux. Water System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks with pipe strain on aux cooling water pumps $5,000 3) Inspect chemical feed system and test $2,000 4) Assist in flushing of piping systems and associated piping modifications $10,000 5) Pressure test and start up $3,000 Total Estimate $23,000 Demin Water System Estimated Pricing 1) System check as per drawings $3,000 2) Inspect storage tank and treatment skid $5,000 3) Check alignments of pumps of water treatment skid $3,000 4) Assist in flushing of piping systems and associated piping modifications $4,000 5) Pressure test and start up $2,000 Total Estimate $17,000 Compressed Air System (instrument and plant) Estimated Pricing 1) System check as per drawings $3,000 2) Inspect compressor and alignment checks $2,000 3) Assist in flushing of piping systems and associated piping modifications $3,000 4) Pressure test and start up $2,000 Total Estimate $10,000 Fire Protection System Estimated Pricing 1) System check as per drawings $3,000 2) Inspect engine and pump for start up $8,000 3) Assist in flushing of piping systems and associated piping modifications $5,000 4) Pressure test system and start up testing $q 000 Total Estimate $20,000 TMC Total Budgetary Cost $560,000 If you have any questions please call me. Best Regards, U D"4 Ed Davis Manager, TMC/Wood Group M MW ar UNOW 21ate : Vernon Ca. 90058 Tel: (310) 839-3523 Fax (310) 639-8217 No. Calitnrnia office: . 4595 Pacheco Blvd. Martinez. CA 94553 Tel: (925) 372-4844 Fax (925) 372-4845 Texas Office: Cotetel Office: 3444 E. Pasadena Frwy. 6261 Prescott court Pasadena. TX 77503 Clip, CA 91710 TeL (713) 472-3444 Tel: (909) 590-4500 Fax (713) 472-8428 Fax (909) 590.4000 f Thomason Mechanical Corp. June/04 MGS Construction Schedule www.thomasoomech.com 'alendar Legend: S: Start Erection, MC: Mech. Complete, FF: First Fire, OP: Operational SC: Structure Complete AC: Alstom Commission, SS: Set Skid 04 05 ask TG #1 Aug. S Sep Oct. Nov. Dec. Jan. Feb Mar. Apr. MC May FF Jun. OP TG #2 S MC FF AC,OP --AC,-OP OP RSG #1 S Sc MC RSG #2 TG S SMC,OP SC MC mmonia S d MC,OP ondensate System S MC OP OP .1e1 Compressor S SS MC OP lain Water System SS MC MC �),Aing Tower l,. Water System S OP Amin. Water System SMC,OP iemicai Feed S MC 9mc impressed Air System S OP re Protection SOP amp N�Mwvlwk Z ff1 'WAV I= Corporate Office: 2150 E 37tl1 ST. Vernon Ca. 90058 Tel: (310) 639-3523 Fax (310) 639-8217 No. California Office:. 4595 Pacheco Blvd. W tinet, CA 94553 Tet (925) 372-4844 Fax (925) 372-4845 Texas Office: 34" E Pasadena Frwy. Pasadena, TX 77503 Tel: (713) 472-3444 Fax (713) 472-8428 Coletei Office: 6261 Prescott Court Chino, CA 91710 Tel: (909) 59"500 Fax (909) 590-4600 ` . Thomason Mechanical Corp. Manpower Load Schedule For Commissioning www.thomasonmech.com ask TG mmonia ondensate System Liel Compressor �ain Water system 00,11fing Tower - rr r Water System---- EDWIN CHARLES DAMS, JR. 909 McCarthy Court El Segundo, California 90245 Phone (310) 640-1639 June 1993- _Thomason Mechanical Corporation. Vernon, CA Present Engine Division Department Manager - Manage all administrative, machine shop and field services. Consulting engineer on power plant design projects and O/M applications. Commissioning engineer on simple cycle, combine cycle and co -generation power plants. I.S.O.9002 trained. Internal Combustion Engine Expertise Includes: ALCO, Caterpillar, Cooper, Enterprise, EMD, Fairbanks Morse, Ingersoll-Rand, Mal{, M-A-N B&W, Mitsubishi, Nordberg, Pielstick, Sulzer, Wartsila, White Superior and Waukesha. Gas Turbine Expertise Includes: ABB, Allison, Alstom, GE, Mitsui, Nuovo Pignone, Pratt & Whitney, Rolls-Royce, Siemens and Westinghouse. Steam Turbine Expertise Includes: ABB, Alston, Fuji, GE, GEC, Hitachi, Mitsubishi, Siemens and Westinghouse. Aug 1981- Superintendent - Rebuilding all types of heavy fuel oil and light fuel oil diesel engines, June 1993 gas engine power movers, gas turbine, steam turbine, centrifugal compressors, pumps and all auxiliary power plant equipment. Superintendent - Design and installation of cooling tower for The City of Vernon's Light and Power generating plant. Foreman - Rebuilding the City of Vernon's Light and Power generating plant. Duties included directing crews of up to 30 employees for rebuilding five M-A-N 24"X36" two-stroke diesel engines, all auxiliary water pumps and scavenger air blowers. Ground up installation of two 6,000 kilowatt Allison gas turbines. Also contracted as head of maintenance for the plant Miscellaneous companies contracted to: Air Products, Atlantic Richfield Company, Allison (gas turbines), Bechtel Petroleum, 4 Corners Pipeline, CMS Energy, Holec North America, Matson Lines, NASSCO, Ogden Energy, Pacific Energy, Shell Oil Company, Southern California Edison, Stolt Chemical Lines, Texaco, Union Oil Company and US Navy, City of Vernon, Minnkota Power July 1979- McDonnell Douglas Airrral3 Long Beach, CA Aug 1981 Surface Structure Mechanical Engineer - Held Class C government security clearance. Member of United AutoWorkers Union. Foreman for DC-9 and DC-10 class jet, engineered pressure bulkhead. Redesigned and repaired fuselages. Received nine McDonnell Douglas blueprint and mechanical classifications. July 1977- _Elsinore Aerospace Services Downey CA July 1979 Assistant Foreman - Ran crews in fuel tank repair and leak detection, landing gear maintenance and repair, engine maintenance and repair on commercial jet airplanes. Contracted to: National, Continental, Japan Air, and Transamerica. Worked on Boeing 747, Boeing 727, Douglas DC-10, Douglas DC-9, Douglas DC-8 and Lockheed 1,10-11 aircraft. EDUCATION Prager Gear School, Graduate; Allison Gas Turbine Heavy Maintenance, Graduate; California State University at Fullerton; David Starr Jordan High School, Long Beach, CA, Graduate. Additional information and/or references available upon request. Director of Operations and Maintenance Yaser M. Tobeh E X P E R I E N C E Summary of Experience Twenty one years diversified power plant administration, operation/maintenance, project commissioning and management experience; extensive background in construction and outage planning, engineering and quality control at refineries, power plants, and petrochemical/water treatment facilities. Specialist in plant upgrade and staff development programs. Recognized for leadership, ethics, patience and commitment to excellence; a professional in conflict resolution and critical thinking; a strong promoter of healthy visions and values as well as an outstanding communicator and skilled listener. Aspires to becoming a recognized leader, in the process proving that a strong will and a sense of dedication to helping others can go a long way. Detailed Professional Experience I. Wood Group Power Operations, Inc. Director of Operations and Maintenance: September 2002 to Present Director of Operations and Maintenance with overall responsibility for domestic and international power generating facilities. Responsibilities include service. marketing, proposals, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. H. Enron- Engineering & Operational Services: February 2000 to September 2002 Mobile, Alabama — MESC Cogeneration Facility Director: June 2002 to September 2002 Home office support to O&M staff on a 143MW steam and power generation facility (Rankin Cycle plant utilizing biomass/sludge as primary fuel w/ natural gas/coal as backup fuel) Gaza, Palestinian Territories Plant Manager: February 2000 to September 2002 Provided critical- in -country and remote management to the operations and maintenance (O&M) team on a 140 MW combined -cycle power plant (4x ABB-GT10B2 gas turbines on 2x ABB ST10 steam turbines); lead continuous negotiations with Owner group in the difficult transition throughout the Palestinian uprising commenced September 2000. In addition to the prime responsibility as Plant Manager for the Gaza Power Generation Facility, performed the following functions: Chengdu, China — Sinchuan Jialing Electric Power Company -- Owner Representative: April 2002 to September 2002 Represented owners, witnessed and approved the performance testing of a 360MW coal fired power plant. Cuiaba, Brazil — Pantanal Energia Page 2 of 4 • Development Specialist: June 2001 to December 2001 Analyzed and successfully overhauled management structure at a key ENRON facility, the pioneering 480MW (2x Siemens V84.3A on Ix Siemens steam turbine) Cuiaba IPP completed in 1999; as Acting Plant Manager, implemented innovative teamwork schemes to ensure world -class O&M performance; negotiated OEM response to technical challenges concerning combustor technology; received Owner commendation for a detailed integrity plant audit report. Mobile, Alabama — MESC Cogeneration Facility — February 2001 to June 2001 - Transition Specialist: implemented O&M, plant management and personnel deployment systems on a 143MW steam and power generation facility (Rankin Cycle plant utilizing biomass/sludge as primary fuel w/ natural gas/coal as backup fuel); received Owner commendation for cost savings totaling $1.6MM out of a $14.49MM annual owner budget. III. Coastal States Management Corporation (El -Paso Energy):. September 1998 - February 2000 Brush, Colorado - Site Manager: led construction team on a 250 MW natural gas -fired simple cycle power plant equipped with 2x Siemens Westinghouse V84.3A1 turbines. Quetta, Pakistan - Site Manager / Acting Plant Manager: provided crucial construction, commissioning, Owner support and operatorship management on a 140MW natural gas -fired (3xLM6000 on 1 Mitsubishi) CC power plant — total project value $150MM. IV. HowerBaker Engineers, Inc. Senior Resident Engineer: July 1995 - April 1997: Provided engineering leadership at cryogenic plants in Texas and Alabama to complete $75MM of projects on time for customer groups Air Liquide, GE and Praxair. V. Brown and Root, Inc. - Carson, California: July 1993 - May 1995 At a $580MM Clean Fuels Project (benzene and RVP emission reduction) for ARCO Products Company in Carson, California, held two different positions: Subcontracts Manager / Administrator: led subcontracts management, QC and cost/schedule control. Technical Services Manager developed an Environmental Compliance Manual critical to the documentation of B&R's beneficial effect on environmental issues at the project. VI. Brown and Root, Inc. - Alhambra, California: Senior Construction Planner: September 1991- July 1993 led turnarounds and provided support / expertise to construction planners; successful approach to planning, scheduling and constructability review contributed to completion on time and within budget. Projects included: ARCO California - SOx/NOx Project, ARAMCO - Ras Tamura Refinery Upgrade Project, BP Oil Ohio - FCCU Revamp Project, Union Carbide California - Sulfate Projects, UNOCAL Alaska - Ammonia and Urea Plants Upgrade Project. Page 3 of 4 • VII. Archicentre - Kuwait City, Kuwait: Lead Site Civil Engineer: November 1988 - August 1990 Scheduled and provided engineering support on a US $2.3 billion civil construction project sponsored directly by the government of Kuwait. VIII. Brown and Root, Inc. - KNPC Mina Abdulla, Kuwait: June 1984 - October 1988 At the $1.8 billion Mina Abdulla Refinery project, held three different positions as follows: Commissioning Engineer commissioned refinery sanitary and piping systems including pumping/treatment plants, workshop and coal storage — total project cost $30MM. Building Supervisor: completed design, procurement and construction of substations and multi -facility support buildings at a total cost of $150MM. Field Office Engineer: provided leadership for company's civil office: supervised subcontractors and provided engineering support for $2MM refinery fencing and security facility project. IX. National Engineering Bureau - Kuwait City, Kuwait: May 1984 - June 1984 Site Engineer: solved site problems on several high-rise construction complexes totaling $20MM; monitored schedule and cost; provided constructability approvals. X. Al Rabia Construction Company - Kuwait City, Kuwait: January 1983 - April 1984 Project Engineer: led construction activities including surveying, pre -cast erection, field supervision of crafts and site surveying control on the $15MM Kuwait University Stadium project. Education MBA — In progress — University of Phoenix BSC - Civil Eng. - USL —1978 to 1982 Page 4 of 4 Vice President - Operations and Maintenance Frank G. Avery E X P E R I E N C E Summary of Experience Over 18 years experience in the Operations and Maintenance of gas turbine based power plants. He has managed all aspects of the O&M business from initial business development activities to the daily execution of the contracts. Over the years he has been responsible for the mobilization, start-up, and long term execution of a variety of facilities both internationally as well as domestically. These facilities have ranged in size form as little as 30 MW to over 600 MW. Frank's most recent experience prior to joining Wood Group Power was serving as the Chief Operating Officer for Power Industry Consultants. As COO he was responsible for the the execution and growth of the entire business including the Operations and Maintenance group. Under his direction the O&M business achieved double digit growth during the term of his assignment placing 13 power generation facilities under O&M contract in both the domestic and international markets. In addition, Frank's experience includes an in-depth knowledge of gas turbine major maintenance contracts. Prior to joining PIC he lead the development of General Electric's Long Term Services Agreement (LTSA) product line. His responsibilities included both the commercial risk management and contract structure of the LTSA products. This efforts culminated in the development of a comprehensive Risk Management model and program used to control the sales and execution of the LTSA products for GE.. This model is still used to manage and optimize over 35 Billion dollars worth of LTSA agreements. Detailed Professional Experience I. Wood Group Power Operations, Inc. Vice President of Operations and Maintenance: March 2003 to Present VP with overall responsibility for domestic and international power generating facilities. Responsibilities include service marketing, proposals, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. H. Power Industry Consultants, Inc. Chief Operating Officer: July 2002 to January 2003 Chief Operating Officer responsible for all of the daily business unit operations and corporate financial operations of the company and its divisions, which included the Operations and Maintenance Group, Field Services Group, Technical Services Group, and Professional Staffing Services Group with a total corporate headcount of approximately 107 personal and variable headcount in excess of 525 personnel. In addition, directed the development and implementation of an intranet based financial reporting and empowerment system, improved accounts receivable collection cycle form an average collection time in excess of 75 days outstanding to less than 50 days outstanding greatly improving the corporations cash flow, fully leveraged and completed implementation of the great plains enterprises financial management and accounting package including the full integration with the Intranet based reporting system, developed Page 2 of 4 enhanced Risk Management and contract implementation strategies, directed the development of standardized and slim line modular contract structure that was applicable to the diverse business needs and greatly reduced the contract negation cycle time, ensured that all business processes were followed and implemented, managed the corporations banking relationships and negotiated renewals of all credit instruments, established and managed all of the various corporate entities and structures used to execute the corporations business, and directed and implemented a budget and planning tool that standardized the budgeting process. III. General Electric, Inc — GE Contractual Services Manager of Strategic Initiatives / Risk Management: July 1997 — Sept. 2000 As Manager of Strategic Initiatives, responsibilities included the development of new and innovative methods, applications, processes and contract structures for costing, pricing, executing and optimizing the growing portfolio of GECS' LTSA and O&M contract business. In addition, restructured LTSA contracts to take advantage of Gas Turbine performance improvements installed under long term LTSA contracts, and to allow for enhanced fleet management by GE. Furtheremore, Mr. Avery developed and implemented a contract modeling tool, know as COSMOS, utilizing a three man core team and contract programming, developed a Fleet Management program to optimize the profitability of the LTSA business by selectively managing groups of contracts as small portfolios and applying parts utilization algorithms to utilize the least number of parts for the group under a fixed price contract structure. III. Stewart & Stevenson Operations, Inc. International Regional Manager: 1995 to July 1997 Responsibilities included P&L and operational responsibility for 17 international power generation facilities ranging from 40 MW to 170 MW including total contract management and new contract negotiations. In addition, managed the successful start-up of eight power generation facilities in two years, established and directly managed five remote area offices for accounting and local management of operations, and developed and implemented standard performance reporting package that met both customer and corporate objectives. IV. Stewart & Stevenson Operations, Inc. New Jersey Area Manager: 1994 to 1995 Responsibilities included direct management responsibility for three Frame 6 based cogeneration facilities ranging in size from 55 Mw to 165 Mw. In addition, successfully managed the transition from previous operator to SSOI in at all three facilities, Improved availability from 91 % to greater than 96 %, and Improved plant profitability through a managed water -wash program and careful power contract management Page 3 of 4 V. Stewart & Stevenson Operations, Inc. Assistant Operations Manager:1992 to 1994 Responsibilities included management of the day-to-day operations of 16 gas turbine based cogeneration facilities including direct management of the company's first operations in an international environment. In addition, performed performance monitoring and evaluation of facilities to find methods to improve heat rate and power output and developed the company's standard maintenance management program. VI. Stewart & Stevenson Operations, Inc. Instrument & Controls Technician: 1990 to 1992 Responsibilities included instrument and controls calibration and maintenance for a 3OMw combined cycle cogeneration facility. In addition, performed duties of Assistant Facility Manager for a small staff of four operators and one mechanic, and developed and implemented several plant upgrades to improve performance and operabr�ity. VU. United States Navy Gas Turbine Systems Electrician: 1984 to 1990 Obtained rank of GSE First Class in less than fire years, Qualified as Engineering Officer of the Watch as a Third Class GSE, Received several accommodations for hard work and solid leadership, and managed a crew of twelve Gas Turbine Electricians and Mechanics. Education Mario Umana Harbor School of Science & Technology —1980 to 1984 Graduated 2°d of 175 at Mario Umana Harbor School of Science and Technology. Various Management Training Classes and Programs Key Technical Schools: GE Six Sigma - Green Belt Qualified US Navy Gas Turbine Control Systems Woodward Governor Control School Taylor Distributed Control Systems Brush Voltage Regulator Repair and Maintenance Page 4 of 4 Plant Manager James T. Murray E X P E R I E N C E Summary of Experience Ningnteen years diversified power plant administration, operation/maintenance, project construction, commissioning, start-up and management experience complimented with an extensive background in outage planning, management, budgeting, engineering and quality control at power plants. Detailed Professional Experience I. Wood Group Power Operations, Inc. Plant Manager: Available Immediately Plant Manager with overall responsibility for domestic power generating facilities, including coordination service, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. H. El Paso Power operations) December 2001 to Present Plant Manager - Eagle Point Cogeneration Facility Responsible for the operation and maintenance of the 225MW two on one combined cycle cogeneration plant located inside the Eagle point refinery. facility modifications and plant improvements encluding the new installation of the new Dry Low Nox combustion system on both 7EA gas turbines all within the approved budget. - Maintain all contractual agreements and permits. Optimized all phases of operations to provide the highest level of long term benefit to the partners. This includes continuous review and recommendations to the partners of equipment changes and improvements calculated improving the long-term profitability of the facility. III. The Enron Corporation: March 2000 to December 2001 Director of Operations & Maintenance - EEOS Responsible for the overall Operations, Maintenance and Technical support services for the EEOS Southeast merchant plants. Director of Turbine Maintenance & Plant Manager — OEC Responsible for the Maintenance and Overhaul of 17-GE7EA Gas Turbines, 9-GE7B Gas Turbines, 8 Westinghouse 501 D5 Gas Turbines and 3 Westinghouse 501FD Gas Turbines. As Plant Manager, Mr. Murray was also responsible for the operation and maintenance of the 40OMW New Albany Power Plant. Responsibilities included all the daily communication with the ENRON trading desk and operations and maintenance including the scheduling of all planned outages, Plant modifications and Gas Turbine upgrades from 7B to 7E all within the approved budget. Maintain all contractual agreements and permits. Optimize all phases of plant operation to provide the highest level of availibilty and reliabilty to the owner. Page 2 of 4 IV. Coastal Power: November 1990 to March 2000 Director of Operations, Asia Region March 1999 to March 2000 Responsible for the Operation and maintenance of all the operating plants in Asia for Coastal Power. Senior Manager, Engineering & Operations, Asia: December 1998 to March 1999 Responsible for Engineering & Operation of a Coastal Powers Asian projects in Operation, under construction, and in development in Asia. Currently providing startup and operations support for Coastal Power's 140 MW combined cycle Quetta Pakistan Power Project. The project consists of 3 LM6000 PA duel fuel Gas Turbines packaged by Fiat Avio, one steam turbine generator set packaged by MI -I, and all the associated equipment for combined cycle operation. Also reponsible for startup and commisioning of THE SABA Pakistan 127MW B&W HFO fired boiler steam plant. Senior Manager, Engineering & Operations, China: February 1998 to December 1998 Responsible for the Engineering and Operations of all Coastal Powers China projects in Operation, under construction and in development in China. Provide on site construction management and startup support for all the ,plants in the construction and startup phase. Responsible for the Operation and Maintenance of all the operating plants in China. Provide engineering support for all the projects under development in China. Senior Manager, Gas Turbine Operations China: August 1996 to February 1998 Responsible for Operation and Maintenance support for Coastal Powers China Gas Turbine power plants both under construction and in operation. Provide technical advice on the operations and maintenance of the Gas Turbines and the balance of plant equipment to help Coastal achieve long life at minimum total cost. Provide engineering support for the China group development team. Installed and commissioned the following equipment. Two GE packaged. Frame 6Bs in Suzhou China, Two EGT packaged Frame 6Bs in Nanjing China, One GE LM6000PA packaged by Stewart & Stevenson in Wuxi China, Two 15Mw NANJING steam turbines, Two HRSGs, Two Wuxi UFO Boilers and all the associated support equipment in Suzhou China V. Coastal Power - Fulton Cogeneration associates: November 1990 to July 1996 Plant Manager: July 1994 to July 1996 In charge of all daily operations and maintenance including the scheduling of planned outages, facility modifications and plant improvements all within the approved budget. Maintain all contractual agreements and permits. Optimized all phases of operations to provide the highest level of long term benefit to the partners. This includes continuous review and recommendations to the partners of equipment changes and improvements calculated improving the long-term profitability of the facility. The facility was equipped with a General Electric LM5000 gas turbine generator set rated at 47.5 MW. Page 3 of 4 Maintenance Supervisor: November 1990 to July1994 Responsible for the maintenance of the Fulton Cogeneration Facility 47.5 MW combine cycle plant. The plant includes a GE LM 5000 STIG 120, Zurn 221,000 pph 3- pressure HRSG, Westinghouse WDPF DCS 500 gpm RO/mixed bed demin water system, two 300 psi 64,000 pph aux boilers, three Aerial/Tideair 300hp gas compressor system and all support equipment for electrical and steam generation. VI. G. C. Hanford Manufacturing Company: September 1984 to November 1990 Maintenance Supervisor Started as a Plant Engineer at the Power House until November 1986 when was promoted to a Maintenance Supervisor responsible for the maintenance of the power plant and boiler house of a Pharmaceutical manufacturer specializing insterile penicillin products. The plant includes a 10 mw back pressure steam turbine with a Woodward 505 control system, two 250 psi 65,000 pph Indeck fire tube boilers, four 200 psi 30,000 pph Fulton boilers, Taylor DCS (mod 300),six 30hp rotary screw air compressors, two York 500 ton absorption chillers and 600 tons of direct expansion refrigeration equipment, MECO vapor compressor stile for sterile water for injection. Assured compliance to written company and governmental regulations as related to maintenance. Education Flint Vocational trade school (FLINT NY) - Machine Technology - 1977 - 1980 General Electric LM Aero-Derivative gas turbine school Woodward 501 Turbine control school Page 4 of 4 Wood Group Power operations, Inc. Additional Staff Biographies Mark Dobler Mark has a diverse background in both the power and energy services sectors with over 18 years experience in commercial plant operations and technical oversight both leading and supporting global power generation and energy related projects. Mark entered the independent power production market in 1986, developing, constructing and operating IPP's on behalf of Combustion Engineering and Coastal Corporation. Mark served in a number of increasing plant operations capacities including President of Operational Energy Corporation, a third -party O&M provider to the power industry. Mark played an instrumental role in increasing OEC' contract portfolio by over 8,000MW over this 4-year period. As part of Enron's acquisition of OEC in 1997, Mark led the integration efforts of the company in addition to managing the company's development, operation and trading integration of over 350OMW of peaking capacity in the Central and Southeastern US. Largely through the success of these projects, OEC eventually became the pre-eminent O&M provider for all of Enron's generation assets worldwide. Subsequently, Mark became Vice President of Enron Energy Services and was responsible for the commercial delivery of all physical demand -side energy products in the company's portfolio. Mark currently serves as a senior executive with Wood Group Power, responsible for developing and extending its Operations & Maintenance and Bundled Services initiatives including the consolidation of activities of over 22 Wood Group energy services companies in Americas, UK and elsewhere. Executing on this strategy, Wood Group can offer significant value-added energy services across all aspects of plant operations, including commissioning, acceptance, commercial operations, long-term maintenance and asset restructuring. Corporate Office: No. California Officer Texas Office: Coletel Office:REM[ 1 w AM ate= INOW 2150 E. 3r Street 4595 Pacheco Blvd. 3444 E. Pasadena Frwy. 6261 Prescott Court AM AMW r= �� Vernon. CA 90058 Martinez, CA 94553 Pasadena, TX 77503 Chino, CA 9171071VV01�31D] -• N � ® Tel: (310) 639-3523 Tet (925) 3724844 Tel: (713) 4723444 Tel: (909) 590-4500 Fax (310) 639-8217 Fax (925) 3724845 Fax (713) 472-8428 Fax (909) 590-4600 Thomason Mechanical www.thomasonmech.com www.coletel.com www.woodgroup.com CA. License 420446 Exclusive to the City of Vernon July 1, 2003 through June 30, 2004 Hourly Rates Straight Time Overtime & Double time Technical Consulting 95.00 120.00 THESE RATES INCLUDE WAGES, - BENEFITS, PAYROLL TAXES, WORKERS' COMPENSATION, OVERHEAD, ALL TOOLS EXCEPT SPECIAL TOOLS AND EQUIPMENT, .PRODUCT LIABILITY, GENERAL AUTOMOTIVE LIABILITY AND ALL OTHER REQUIRED INSURANCES, PERMITS AND TAXES. THIS DOES NOT INCLUDE STATE SALES OR USE TAXES. OVERTIME SHALL BE CHARGED FOR ALL WORK OVER EIGHT (8) HOURS A DAY AND FOR ALL WORK PERFORMED ON SATURDAYS. DOUBLE TIME SHALL BE CHARGED FOR ALL WORK PERFORMED ON SUNDAYS OR THE FOLLOWING DESIGNATED HOLIDAYS: NEW YEARS DAY, MARTIN LUTHER KING'S DAY, WASIHNGTON'S BIRTHDAY, VETERAN'S DAY, MEMORIAL DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, THE DAY AFTER THANKSGIVING DAY AND CHRISTMAS DAY. IF APPLICABLE, TRAVEL TIME FOR TRANSFERRED EMPLOYEES WILL BE CHARGED ON A STRAIGHT TIME BASIS FOR ACTUAL HOURS TRAVELED. TRANSPORTATION, TRAVEL AND HOTEL EXPENSE WILL BE CHARGED AT COST. THERE SHALL BE A MINIMUM FOUR-HOUR CHARGE PER MAN AT THE APPLICABLE RATE FOR SHOW -UP TIME WHETHER WORK IS PERFORMED OR NOT. THERE SHALL BE A MINIMUM EIGHT - HOUR CHARGE PER MAN AT THE APPLICABLE RATE IF HE WORKS MORE THAN FOUR HOURS. ALL ADDITIONAL MATERIALS, RENTALS, FREIGHT AND 3RD-PARTY SUBCONTRACTS SHALL HAVE A FIFTEEN PERCENT (15%) HANDLING CHARGE. ALL WORK IS TO BE PERFORMED USING TMC'S STANDARD ADDENDUM TO CONTRACT DOCUMENT OR OTHER MUTUALLY AGREED TO TERMS AND CONDITIONS. TERMS: NET 30 DAY • I Corporate Office: No. California Office: Texas Office: Coletel Office: 2150 E. 37'k Street 4595 Pacheco Blvd. 3444 E. Pasadena Frwy. 0261 Prescott Court �■ .■. Vernon, CA 90058 Mardnez, CA 94553 Pasadena, TX 77503 Chino, CA 91710 a n Tel: (310) 839-M23 Tel: (925) 372-4844 Tel: (713) 4723444 Tet (909) 590-4500 AI ai W AM' Fax (310) 639-8217 Fax (925) 3724845 Fax (713) 472-8428 Fax: (909) 690.4600 • • ■ • Thomason Mechanical www.thomasonmech.com www.coletel.com www.woodgroup.com CA. License 823124 SOUTHERN CALIFORNIA PREVAILING WAGE AND RATE SCHEDULE JULY 1, 2004 through JUNE 30, 2005 Hourly Rates Straight Time Overtime Double time Shift Days Nights Days Nights Days Nights Journeyman Millwright 64.00 66.00 82.00 84.00 100.00 102.00 Working Foreman 67.00 69.00 86.00 88.00 105.00 107.00 General Foreman 70.00 72.00 90.00 92.00 111.00 113..00 Project Manager 72.00 73.00 93.00 94.00 113.00 115.00 Crane Op & Cert Welder 65.00 67.00 84.00 86.00 103.00 104.00 Apprentice Millwright 57.00 59.00 72.00 74.00 88.00 89.00 Machine Shop* 64.00 82.00 100.00 THESE RATES INCLUDE WAGES, BENEFITS, PAYROLL TAXES, WORKERS' COMPENSATION, OVERHEAD, ALL TOOLS EXCEPT SPECIAL TOOLS AND EQUIPMENT, PRODUCT LIABILITY, GENERAL AUTOMOTIVE LIABILITY AND ALL OTHER REQUIRED INSURANCES, PERMITS AND TAXES. THIS DOES NOT INCLUDE STATE SALES,OR USE TAXES. —APPRENTICES MAY BE USED ON ANY CREW CONSISTING OF AT LEAST THREE MEN SUBJECT TO THEIR bUALIFICATIONS AND AVAILABILITY. AN ADDITIONAL SEVEN DOLLARS ($7.00) PER HOUR SHALL BE ADDED TO THE GENERAL FOREMAN'S AND FIELD FOREMEN'S RATE TO COVER THE COST OF TRUCK, MAINTENANCE AND FUEL. 6VERTIMB SHALL BE CHARGED FOR ALL WORK OVER EIGHT (8) HOURS A DAY AND FOR ALL WORK iERFORMED ON SATURDAYS. DOUBLE TIME SHALL BE CHARGED FOR ALL WORK PERFORMED ON SUNDAYS OR THE FOLLOWING DESIGNATED HOLIDAYS: NEW YEARS DAY, MARTIN Lu R XING'S DAY, WASHINGTON'S BIRTHDAY, MEMORIAL DAY, VETERIANS DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, THE DAY AFTER THANKSGIVING DAY AND CHRISTMAS DAY. TRAVEL TIME FOR TRANSFERRED EMPLOYEES WILL BE CHARGED ON A STRAIGHT TIME BASIS FOR ACTUAL HOURS TRAVELED IF APPLICABLE. TRANSPORTATION, TRAVEL AND HOTEL EXPENSE WILL BE CHARGED AT COST IF APPLICABLE. SUBSISTENCE FOR NON -LOCAL LABOR WILL BE CHARGED AT THE RATE OF $45.00 PER DAY, PER MAN. i HERE SHALL BE A MINIMUM FOUR-HOUR CHARGE PER MAN AT THE APPLICABLE RATE -FOR SHOW -UP TIME WHETHER WORK IS PERFORMED OR NOT. THERE SHALL BE A MINIMIIM EIGHT -HOUR CHARGE PER MAN AT THE APPLICABLE RATE IF HE WORKS MORE THAN FOUR HOURS. ALL ADDITIONAL MATERIALS, RENTALS, FREIGHT AND 3RD-PARTY SUBCONTRACTS SHALL HAVE A }FIFTEEN PERCENT (15%)HANDLING CHARGE. iL WORK IS TO BE PERFORMED USING TMC'S STANDARD ADDENDUM TO CONTRACT DOCUMENT OR OTHER MUTUALLY AGREED TO TERMS AND CONDITIONS. l TERMS: NET 30 DAY I Standard Addendum to Contract Documents Thomason Mechanical Corporation Customer and Contract No. INDEMNIFICATION TMC shall defend, 'indemnify and hold Owner less fro and all claims, liabilities and causes of act' or injury to or death ersons or for damage to �or des 'on of property resulting from and all negligent actmissions of TMC or any of TMC's subco ctors. -00 2. TMC shall have no tion to Owner with respect to any damage to or loss of operty sed by the perils of war, insurrection, revolui' , nuclear reaction, other perils as may be excluded unde a scope and limits o surance coverage provided by C pursuant to Section 3 hereof. s liability with respect oss, damage or injury shall not exceed th ope and limit the insurance coverage provided pursuant to S n 3 INSURANCE 3. TMC shall maintain the following insurance course o work: (a) Worker's ComfteQsation and/or all other 1al Insurance in accordance with the s torequireme of the state having jurisdiction over TMC's em ees whgooffre engaged in the work with Employers Liability of a undred Thousand Dollars ($100,000) each accident. (b) Comprehensive Gen Bodily tnl and Property Damage Liability, including A obile (owned, n-owned and hired), contractual and Co actors Protective Liab ' Such insurance shall be provide a combined single limit o ne Million Dollar ($1,000,000) r any one accident, with a On Million -Dollar ($1.,000,00 Annual Aggregate. y er shall be named as an additional insured and r pect to ndemnity obligation set forth in Item 1 above un r the insurance described in Item (b) above. PERFORMANCE WARRANTY TMC shall perform its work in accordance with04 stan s of care and diligence customary in the industry. the event TM ails to perform in accordance with thosep9ndards, and Owner h iven written notice thereof to TMC ng the one year period folio the date that TMC's servi are completed, or, if equipment is ' stalled, the date th uch equipment is available for operation Owner's facili MC shall perform all corrective services within he origi scope of work as are necessary to conform the wo o h warranty or guarantee. All costs of such reperformance of shall be borne by TMC. Notwithstanding th ove, ' the event that equipment assembled and delivered TMC, or plied in connection with work to be performed MC, is stored o mains inoperative for thirty (30) days or ore following installatio or delivery to the jobsite, TMC's w anty shall be void and TMC II be released from all liabil' whatsoever in connection with op tion of the equipment less, prior to startup of the equipmen , TMC is allowed, Owner's expense, to perform a pre -startup ins ction and necessary maintenance, repairs or testing to assure that the equipment, is fully operational and its opera ' can be anted. Owner shall compensate TMC for costs of pre- startinspection, necessary pre -startup mai an and testing for stor or inoperative equipment in a rdance with TMC's standard c e schedules. TMC's warr is valid only if TMC is present durin tartup of such equip t. TMC does not warrant third party mated or equipment. 5. TMC makes rep entations warranties, covenants, guarantees or undertakin express or implied other than those expressly set forth a IMPLIED WARRANTIES OF MERCHANTABILITY D NESS FOR A PARTICULAR PURPOSE ARE LUDED. rights and remedies of the parties as set fort erein are sole a exclusive and in lieu of any other rights an emedies otherwise a able at law or in equity, and the rem ies and liabilities or the pa 'es shall be as stated herein wh er recovery of damages is soug based on contract, negligen strict liability or other theory of law. ither party shall be re onsible or held liable for consequential d incidental da ges including loss of profit, loss of product business i rruation. however caused. RETENTION 6. Payment terms are net 30 days. No retention shall apply to work performed on other than a lump sum basis. All retention shall be released upon completion of TMC's work for which retention was held back by Owner. HAZARDOUS MATERIALS 7. Except with respect to cleanup costs associated with spill of hazardous materials which is due to TMC's negligence, Owner shall be solely responsible for the selection of waste disposal sites, removal, transportation, packaging, storage, treatment, labeling, manifesting, cleanup and disposal of any waste or hazardous or toxic materials produced, handled by TMC, or encountered in the performance of the work (including, without limit, hazardous wastes, fuels, petroleum hydrocarbons, asbestos and all other material considered toxic or hazardous under environmental, health or safety laws and regulations) as well as all associated costs or documentation connected therewith. As part of the work, TMC shall follow Owners instructions with respect to such hazardous materials and wastes, and shall assist Owner as specified in the scope of work. Owner agrees to advise TMC in writing if any work is to be performed in an area where hazardous or toxic materials or conditions are likely to be encountered.- Owner further agrees that, if such substances or conditions are encountered, Owner will equitably revise the scope of work to include any necessary additional cost or services necessary to resolve all health and safety concerns posed by such substances or conditions. Accepted by, Print Name: 2 3 4 5 6 7 8 9i 10'' 11 121 13 14 15 16 17 18 1LI 20 21 22 23 24 25 26 27 28 r EXHIBIT B INSURANCE SCHEDULE Thomason 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 Hazards Automobile Liability Bodily Injury Property Damage Each Person Each Accident Each Accident 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 employe H. Liability General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (if applicable) $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 Contractual 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 City. b. In addition to the above, the Consultant shall provide such further proof of insurance documentation as the City deems necessary. EXHIBIT "B" SUPPORTING DOCUMENTS 1 PROFESSIONAL SERVICES CONTRACT 2 3 THIS CONTRACT 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 15th day of 6 September, 2004, in the City of Vernon, County of Los Angeles, 7 California 8 BY AND BETWEEN THE CITY OF VERNON (hereinafter referred to as 9 "City") 4305 Santa Fe Avenue 10 Vernon, CA 90058 11 AND THOMASON MECHANICAL CORPORATION 12 (hereinafter referred to as "Thomason") 13 2150 E. 37th Street Vernon, CA 90058 14 15 RECITALS 16 17 WHEREAS, City is constructing the Malburg Generating Station 18 Combined Cycle Power Plant at 2715 E. 50th Street in the City of 19 Vernon (the "Malburg Project") for purposes of installing additional 20 generating capacity that is capable of yielding cost effective, 21 efficient and reliable electricity to meet its goals, while meeting 22 Federal, State and local environmental and siting requirements; and 23 WHEREAS, the Malburg Project team has determined that it 24 needs the services of a vendor to inspect and perform mechanical 25 commissioning of the Malburg Project prior to start-up and commercial 26 operation (hereinafter referred to as the "Commissioning"); and 27 WHEREAS, Thomason prepared a Proposal dated August 18, 2004, 28 to provide Commissioning (hereinafter referred to as the "Proposal"), t 46 1 a copy of which is attached hereto as Exhibit A and incorporated by 2 reference; and 3 WHEREAS, Thomason represents that it is qualified, properly 4 licensed and capable of furnishing the Commissioning services that the 5 City requires as set forth in the Proposal and is willing to do so on 6 the terms and conditions set forth below; and 7 WHEREAS, the City desires to enter into an agreement with 8 Thomason to provide for the labor and materials necessary for the 9 Commissioning. 10 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 11 FORTH HEREIN: 12 1. Scope of Services. 13 Thomason agrees to provide the necessary material and 14 services for the Commissioning as set forth and described in detail in 15 the attached Exhibit A. Thomason shall provide said services at the 16 time, place and in the manner specified in the Proposal, subject to 17 the direction of the City, through its staff, as may be provided from 18 time to time. Such services shall include, but not be limited to, 19 system checks, alignment checks, inspections, assistance in flushing 20 of piping systems and associated piping modifications, startup and 21 testing of CTG #1, CTG #2, HRSG #1, HRSG #2, STG, Ammonia System, 22 Condensate System, Fuel Compressor Boosting Station, Main Circulating 23 Water System, Cooling Tower, Aux. Water System, Demin Water System, 24 Compressed Air System (instrument and plant) and Fire Protection 25 System. It is understood and agreed that in the event of a conflict 26 between the Proposal and this Contract, the terms of this Contract 27 shall prevail. 28 / / / - 2 - { 1 2. Time of Performance. 2 Thomason's performance, as identified herein, shall commence 3 upon the full execution of this Contract. Performance of the 4 Commissioning services is to be completed no later than June 30, 2005. 5 If the Commissioning services are not completed within this time 6 period, the City shall have the option of canceling this Contract in 7 order to proceed with another vendor, if one can be located, or 8 extending the completion date. The completion date may be extended by 9 the City at its sole discretion for an additional thirty (30) days, or 10 such other time as the parties may agree. 11 3. Price. 12 The City shall pay Thomason for the actual time expended on 13 a time and materials basis. The total amount to be paid to Thomason 14 for the Commissioning, as described in the Proposal, shall not exceed 15 the sum of Five Hundred Sixty Thousand Dollars and No Cents 16 ($560,000.00), plus any applicable taxes. 17 4. Payment Terms. 18 Thomason shall submit within thirty (30) days after the last 19 day of any month in which services have been performed or costs 20 incurred hereunder an invoice to the City. Invoices shall contain an 21 itemization of services rendered, the names, labor classifications, 22 the hours worked for each workers on a specific job, the equipment 23 used and the number of hours the equipment was used, other directly 24 related job expenses and subcontract charges incurred by Thomason and 25 for which compensation is due. Thomason shall be responsible for 26 paying any subcontractors used in the performance of this Agreement. 27 Subcontractors shall not bill the City directly. 28 Payment of the invoice shall be made after acceptance and - 3 - approval by the City within thirty (30) days of receipt. The City's approval of the invoice shall not be unreasonably withheld. 5. Change and Extra Services. City reserves the right to request changes in the Commissioning services to be performed by Thomason. All such changes shall be incorporated in written change orders executed by the City and Thomason that 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. 6. Termination. This Contract may be terminated by the City without cause on ten (101) days written notice to Thomason. In the event of such termination by the City, Thomason shall be entitled to only the compensation earned by it prior to the date the termination notice, plus compensation for necessary work performed during the ten (10) day notice period and authorized in the termination notice. 7. Cancellation/Default. In the event that Thomason commits a breach of a material condition of this Contract, City shall notify Thomason in writing of said breach and if Thomason has not cured or begun reasonable efforts to cure after fifteen (15) days of receipt of said notice, and fails to diligently pursue corrective action, City shall have the right to cancel this Contract for cause based on Thomason' default. Thomason shall be responsible for any direct costs due to City's re -procurement of the equivalent of the equipment or services cancelled from Thomason. - 4 - 8. Confidential Information. A. Access to Confidential Information. City may provide Thomason and/or its subcontractor(s) with, or allow Thomason access to, certain information not available to the public concerning City, or businesses located in 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" and may not be used to circumvent the responsibility of either party to this Contract. B. No Disclosure. Except as expressly permitted, Thomason and/or its subcontractor(s) 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 City. Thomason and/or its subcontractor(s) shall return any written Confidential Information and all copies made of such items to City upon City's written request, but in any event not later than the date that Thomason has performed all services to be performed pursuant to this Contract. Thomason hereby agrees that such Confidential Information and any documents provided may be used by Thomason and/or its subcontractor(s) only as authorized by the City. Thomason shall include a contract provision in its contract with subcontractors that binds the subcontractors to this non -disclosure requirement. Thomason shall take reasonable measures to avoid any disclosure of any such Confidential Information to any unauthorized person. C. Court Ordered Disclosure. Thomason shall - 5 - immediately notify City of any court order or subpoena requiring disclosure of Confidential Information, and shall cooperate with City's legal counsel in responding to any such order or subpoena. Thomason 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. D. Remedies. In addition to any other remedies that it may have at law or in equity, City shall be entitled to a temporary and permanent injunction by a court of competent jurisdiction against any breach or threatened breach of the Confidential Information provisions of this Agreement. Thomason acknowledges that in case of such breach or threatened breach of said provisions, City would have no adequate remedy at law. 9. Warranties. Thomason shall provide a one (1) year labor and material warranty to begin upon City's acceptance of the Commissioning. In addition, all manufacturers' warranties, and any other warranties made applicable by law, shall apply to City's purchase of the materials and labor provided by Thomason. 10. Compliance with Laws. Thomason shall strictly observe and comply with all applicable federal, state, and local laws, ordinances and regulations governing this sale, including but not limited to any permit or license requirements of the United States Department of Commerce, as well as any laws of the United States of America. 11. Governing Law. The validity, interpretation and performance of this Contract shall be controlled and construed under the laws of the State of California. 12. Forum Selection. Any action brought relating to this - 6 - Contract shall be brought and held exclusively in a State Court in the County of Los Angeles, California. 13. 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 Thomason: THOMASON MECHANICAL CORPORATION ATTN: ED DAVIS, MANAGER 2150 E. 37TH ST. VERNON, CA 90058 14. General Provisions. A. Independent Contractor. At all times during the term of this Contract, Thomason shall be an independent contractor and shall not be an employee of the City. The City shall have the right to control Thomason only insofar as the results of Thomason` services rendered pursuant to this Contract; however, the City shall not have the right to control the means by which Thomason accomplishes services rendered pursuant to the Contract except to the extent that such services involve the use of City property or Confidential Information. B. Thomason Not Agent. Except as the City may specify in writing, Thomason shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. Thomason shall have no authority, expressed or implied, pursuant to this Contract to bind the City to any obligation whatsoever. C. Indemnification. Thomason shall indemnify, defend, protect and hold the City and its officers, agents and employees, free and harmless from and against any and all claims, - 7 - I demands, losses, damages, liabilities, fines, charges, penalties, 2 orders, judgments and all costs and expenses incurred in connection 3 therewith, including reasonable attorney's fees and costs of defense 4 arising out of or attributable to the negligent or wrongful acts of 5 Thomason or its subcontractors, employees or agents in the performance 6 of services under this Contract, except to the extent arising from or 7 caused by the negligence or willful misconduct of the City, its 8 officers, agents or employees. 9 D. Insurance. Thomason agrees to provide insurance 10 in the amounts and forms specified in Exhibit B, which is attached -11 hereto and incorporated by reference. Comparable coverage shall be 12 provided for each subcontractor used in the performance of this 13 Contract. Thomason shall submit to the City documentation indicating 14 compliance with these minimum requirements no less than one (1) day 15 prior to the beginning of performance under this Contract. Thomason 16 shall not commence performance of its services under this Contract 17 until the above insurance has been obtained and proof of insurance has 18 been filed with and approved by the City. 19 Limitation on Contractor's Liability. Neither 20 party shall have any liability for consequential damages of any nature 21 whatsoever, however arising. In addition, the dollar amount of 22 Thomason's total liability under this Contract, shall not exceed the 23 amounts that may be recovered under the limits of the insurance 24 required to be maintained by Thomason hereunder, plus Thomason's 25 warranty. The limitation of the parties' liability shall apply 26 regardless of whether liability is asserted to arise in contract, 27 negligence or under any other theory of law. 28 E. Assignment and Subcontracting Prohibited. No - 8 - I party to this Contract may assign or subcontract any right or 2 obligation pursuant to this Contract except as especially and 3 specifically provided for in the Proposal or with the express written 4 consent of the other party. Any other attempted or purported 5 assignment of any right or obligation pursuant to this Contract shall 6 be void and of no effect. 7 F. Entire Agreement. This Contract constitutes the 8 complete and final expression of the agreement of the parties and is 9 intended as a complete and exclusive statement of the terms of their 10 agreement and supersedes all prior and contemporaneous offers, 11 promises, representations, negotiations, discussions, communications 12 and agreements which may have been made in connection with the subject 13 matter hereof. All exhibits are incorporated by reference. Thomason 14 represents that in entering into this Contract it has not relied on 15 any previous representations or understandings of any kind or nature. 16 G. Partial Invalidity. Wherever possible, each 17 provision hereof will be interpreted in such manner as to be effective 18 and valid under applicable law, but in case any one or more of the 19 provisions contained herein will, for any reason, be held to be 20 invalid, illegal or unenforceable in any respect, such provision will 21 be ineffective to the extent, but only to the extent of such 22 invalidity, illegality or unenforceability without invalidating the 23 remainder of such provision or provisions or any other provision 24 hereof, unless such a construction would be unreasonable or contrary 25 to the parties' intent as expressed in this Contract. 26 H. Benefit of Agreement. This Contract shall bind 27 and benefit the parties hereto and their heirs, successors, and 28 permitted assigns. - 9 - I I. Waiver. Any waiver at any time by either party of 2 its rights with respect to a default under this Contract, or with 3 respect to any other matters arising in connection with this Contract, 4 shall not be deemed a waiver with respect to subsequent default or 5 other matter. 6 J. Amendment. All changes or modifications to this 7 Contract shall be in writing stating that it is an amendment to this 8 Contract and shall be signed by both parties or their duly authorized 9 agents. This Contract shall not be modified through course of 10 dealing, usage or trade. 11 K. Force Maieure. Neither Party shall be considered 12 to be in default in any of its obligations under this Contract when a 13 failure of performance shall be due to an uncontrollable force. The 14 term "uncontrollable force" shall mean any cause beyond the control of 15 the party affected, including, but not restricted to, flood, 16 earthquake, storm, fire, lightening, epidemic, war, riot, civil 17 disturbance or disobedience, labor dispute, labor material shortage, 18 sabotage, federal, state, or municipal action, statute, ordinance, or 19 regulation, embargoes of the United States Government or any other 20 government, which by exercise of due diligence such party could not 21 reasonably have been expected to avoid and by exercise of due 22 diligence has been unable to overcome. Either party rendered unable 23 to fulfill any of its obligations under this Agreement by reason of an 24 uncontrollable force, shall give written notice within five (5) 25 business days of such fact to the other party and shall exercise due 26 diligence to remove such inability with all reasonable dispatch. 27 28 =91M w 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 2611 2711 281 IN WITNESS WHEREOF, the parties have caused this Contract to be executed by and through their authorized officers on the date, II month and year first written above. ATTEST: i BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: ':::� Z� ERIC T. FRtYSCH, Ci Attorney CITY OF VERNON By: EONIS C. MA'BURG, Mayor THOMASON MECHANICAL CORPORATION Type Name • &111 Title:?�gi a' c� Type Name • lc( ''' f% �C- Title :y � rw / C") sAM 'Corporate Office: No. California Office: 2150 E. 37 h Street 4595 Pacheco Blvd. Vernon, CA 90058 Martinez, CA 94553 Tel: (310) 639-3523 Tel: (925) 372-4844 Fax. (310) 639-8217 Fax (925) 372-4845 Texas Office: Coletel Office: BENDER Machine 3444 E. Pasadena Frwy. 6261 Prescott Court 2150 E. 370' Street Pasadena, TX 77503 Chino, CA 91710 Vernon, CA 90058 Tel: (713) 472-3444 Tel: (909) 5904500 Tel: (323) 232-2371 Fax (713) 472-8428 Fax: (909) 590-4600 Fax: (323) 232-6456 Manual Garcia City of Vernon www.thomiksonmech.com www.woodgroup.com Subject: TMC Background and Experience Dear Mr. Garcia, www.coletel.com www.benederus.com This letter is to inform the City of Vernon of TMC capabilities and experience in the power generation construction and repair field. Background TMC has been in the repair and construction of power generation plants for over 33 years. TMC annual sales are over 60 million dollars. The Wood Group purchased TMC in 2002; the Wood Group has over 3 billion dollars in assets. The Wood Group experiences are O/M of power plants, O/M of gas distribution and compression plants, gas and steam turbine repair, generator repair, and the fabrication of gas turbine parts. TMC Combine Cycle Experience TMC experience in the construction and commissioning of combine cycle turbine power plants is extensive. Retpt projects TMC have been contracted to install and commission are: Sunrise Generating Station consisting of (2) GE 7FA Gas Turbine (2) HRSG (1) GE D11 Steam Turbine total MW output 500, also the installation of all balance of plant mechanical system. Elk Hills Power Generating Station consisting of (2) GE 7FA Gas turbine (2) HRSG (1) Alstom 264 Steam Turbine total MW output 500, also the installation of all balance of plant mechanical system. Corona Power Station (currently under construction) consisting of (2) GE LM2500 Gas Turbine (2) HESG and (1) Shinn Nippon Steam Turbine total MW output 120. TMC has the expertise to maintain and repair CTG's, STG's, boiler systems, boiler feed systems, gas compression systems and all BOP mechanical auxiliary equipment. TMC Experience with the City of Vernon 4 , TMC was contracted by the City of Vernon in June of 1981 to rebuild the existing power plant consisting of (5) Hamilton MAN Diesel internal combustion engines; other duties included the overhauling of all plant mechanical auxiliary equipment. In 1984 TMC was contracted to provide O/M for the plant and to train the new staff of operators employed by the City of Vernon. In 1997 TMC was contracted to install, commission and O/M 2 Allison gas turbines and all turbine auxiliary systems. Presently TMC has an ongoing contract with the City for all mechanical maintenance needs at the power plant. In closing TMC appreciates the opportunity to be of service for the needs of the City of Vernon these past 23 years. We at TMC look forward to servicing your needs in the future. Sincerely, EdlDavis Ed Davis TMC Manager s it W AW v L_-ALAi J Corporate Office: 2160 E. 376 Street No. California Office: 4595 Pacheco Bird. Texas offax: Coleiel Office: 3444 E Pasadena Frwy. 6261 Prescott Court BENDER Machine 2150 E. 370 Street Vernon. CA 90058 Tet (310) 639-3523 Martinez, CA 94553 Tel. (925) 372-4844 Pasadena, TX 77503 Chino, CA 91710 Tel: (713) 472-3444 Tel: (909) 590-4500 Vernon, CA 90058 Fax (310) 639-8217 Fax (925) 372-4845 Fax (713) 472-8428 Fax (909) 590-4600 Tel: (323) 232-2371 Fax: (323) 232-6456 8/18/04 Manual Garcia City of Vernon www.thomasonmech.com WWW.woodaroua.cOM www.coletel.com www.benederas.com Subject: TMC Labor Cost Breakdowns for Mechanical Commissioning. MGS Dear Mr. Garcia, We at TMC/Wood Group are pleased with the opportunity to estimate the above -mentioned subject. The breakdown is as follows: CTG #1 Estimated Pricing 1) System check as per drawings $6,800 2) Inspection of inlet and exhaust pathways $2,500 3) Alignment checks hot and cold, shaft run out checks $7,500 4) Bearing inspections both turbine and generator $27,700 5) Assist in flushing of piping systems and associated piping modifications $25,000 6) Start up of units, balancing of temperatures and assist in performance testing $18,000 Total Estimate $77,500 CTG #2 Estimated Pricing 1) System check as per drawings $6,800 2) Inspection of inlet and exhaust pathways $2 500 3) Alignment checks hot and cold, shaft run out checks $7,500 4) Bearing inspections both turbine and generator $27,700 5) Assist in flushing of piping systems and associated piping modifications $25,000 6) Start up of units, balancing of temperatures and assist in performance testing $18,000 Total Estimate $77,500 At this time Alstom does not have a contract with the City for any commissioning duties. Alstom will be on -site and is responsible for the start up and performance testing of the units, which TMC will be assisting with. HRSG #1 Estimated Pricing 1) System check as per drawings $12,000 2) Assist in flushing of piping systems and associated piping modifications $22,500 3) Inspection and leak down testing of condenser $8,000 4) Alignment checks of blow down transfer pumps $2,000 5) Startup and testing of unit $10,000 6) Assist in Steam Blows $3,000 Total Estimate $57,500 HRSG #2 Estimated Pricing 1) System check as per drawings $12,000 2) Assist in flushing of piping systems and associated piping modifications $22,500 3) Inspection and leak down testing of condenser $8,000 4) Alignment checks of blow down transfer pumps $2,000 5) Startup and testing of unit $10,000 6) Assist in Steam Blows $3,000 Total Estimate $57,5M Alstom has a contract for the commissioning of these units, which TMC will be assisting. STG Estimated Pricing 1) System check as per drawings $6,000 2) Alignment checks hot and cold, shaft run out checks $7,500 3) Bearing inspections both turbine and generator $24,000 4) Assist in flushing of piping systems and associated piping modifications $15,000 5) Startup and testing of unit $7,500 Total Estimate $60,000 At this time Alstom does not have a contract with the City for any commissioning duties. Alstom will be on -site and is responsible for the start up and performance testing of the unit, which TMC will be assisting with. Ammonia System Estimated Pricing 1) System check as per drawings $3,000 2) Assist in flushing of piping systems and associated piping modifications $10,000 3) Alignment checks on pump with checks of pipe strain $3,000 4) Testing of vaporizing skids HRSG # 1 and #2 $5,000 5) Load and start up of system $5,000 Total Estimate $26,000 . Condensate System Estimated Pricing 1) System check as per drawings $3,000 '2) Alignment checks on deaerator & feed pumps with checks of pipe strain $7,000 3) Inspection of condenser with pressure testing $3,000 3) Assist in flushing of piping systems and associated piping modifications $10,000 4) Startup test $3,000 Total Estimate $26,000 Fuel Compressor Boosting Station Estimated Pricing 1) System check as per drawings $3,000 2) Compressor shaft alignment& run outs checks $7,000 3) Compressor bearing inspection $10,000 4) Compressor valve and piston inspection $30.000 5) Assist in flushing of piping systems and associated piping modifications $15,000 6) Pressure test and start up $10,000 Total Estimate $75,000 Main Circulating Water System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks with pipe strain checks on booster and tower pumps $8,000 3) Assist in flushing of piping systems and associated piping modifications $8,000 4) Pressure test and start up $4,000 Total Estimate $23,000 Cooling Tower Estimated Pricing 1) System check as per drawings $3,000 2) Inspect chemical feed system and test $2,000 3) Assist Marley Corporation with start up of unit $5,000 Total Estimate $10,000 Aux. Water System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks with pipe strain on aux cooling water pumps $5,000 3) Inspect chemical feed system and test $2,000 4) Assist in flushing of piping systems and associated piping modifications $10,000 5) Pressure test and start up $3,000 Total Estimate $23,000 ,.vmm rrater oystem Esumatea rncing 1) System check as per drawings $3,000 2) Inspect storage tank and treatment skid $5,000 3) Check alignments of pumps of water treatment skid $3,000 4) Assist in flushing of piping systems and associated piping modifications $4,000 5) Pressure test and start up $2,000 Total Estimate $17,000 Compressed Air System (instrument and plant) Estimated Pricing 1) System check as per drawings $3,0Q0 2) Inspect compressor and alignment checks $2,000 3) Assist in flushing of piping systems and associated piping modifications $3,000 4) Pressure test and start up $2,000 Total Estimate $109,000 Fire Protection System Estimated Pricing 1) System check as per drawings $3,000 2) Inspect engine and pump for startup $8,0Q0 3) Assist in flushing of piping systems and associated piping modifications $5,000 4) Pressure test system and start up testing $4,000 Total Estimate $201,000 TMC Total Budgetary Cost $560,000 If you have any questions please call me. Best Regards, U DAV Ed Davis Manager, TMC/Wood Group ® f� " Corporate off m: 2150 E 37 h ST. Vernon Ca. 90058 Tel: (310) 639-3523 Fax (310) 639-8217 NM calwornia office: 4595 Pacheco Blvd. Martinez, CA 94553 Tel: (925) 372-4844 Fax (925) 372-4845 Texas office: 3444 E. Pasadena Fnwy. Pasadena, TX 77503 Tel: (713) 472-3444 Fax: (713) 472-8428 Cokw Office: 6261 Prescott Court Chino, CA 91710 Tel (909) 590-4500 Fax (909) 590-4600 w Thomason Mechanical Corp. June/04 MGS Construction Schedule www.thomwonatech.com dendar Legend: S: Start Erection, MC: Mech. Complete, FF: First Fire, OP: Operational SC: Structure Complete AC: Alstom Commission, SS: Set Skid 04 05 Isk 7G #1 Aug. S Sep Oct. Nov. Dec. Jan. Feb Mar. Apr. MC May Jun. FF OP 'G #2 S MC FF OP M #1 S SC MC AC,OP AC,OP :SG #2 G S S Sc MC MC,OP unonia S MC,OP ndensate System S MC :l Compressor S SS MC OP MC MC OP OP in Water System SS ding Tower - Water System S S MC OP nin. Water System S MC,OP :mical Feed S MC repressed Air System S MC OP Protection S MC I OP as i� w s Wars �n■Ir fad far fat s rr/ Corporate office: 2150 E 31* ST. Vernon Ca. 90058 Tel: (310) 639-3523 Fax (310) 639-8217 No. Calftreia Office: 4595 Pacheco Blvd. Martinez, CA 94553 Tek (925) 372-4844 Fax (925)372-4845 Texas Office: 3444 E. Pasadena Fnvy. Pasadena, TX 77503 Tel: (713) 472-3444 Fax (713)472-8428 Coietel Office: 6261 Prescott Cant Chino, CA 91710 Tel: (909) 590-4500 Fax (909) 590-4600 Thomason Mechanical Corp. Manpower Load Schedule For Commissioning www.atbomasonmech.com isk amonia ndensate System .1 Compressor Lin Water system Wing Tower nin. Water system --fical Feed EDWIN CHARLES DAVIS, JR. 909 McCarthy Court El Segundo, California 90245 Phone (310) 640-1639 June 1993- Thomason Mechanical Corporation, Vernon, CA Present Engine Division Department Manager - Manage all administrative, machine shop and field services. Consulting engineer on power plant design projects and O/M applications. Commissioning engineer on simple cycle, combine cycle and co -generation power plants. I.S.O.9002 trained Internal Combustion Engine Expertise Includes: ALCO, Caterpillar, Cooper, Enterprise, EMD, Fairbanks Morse, Ingersoll-Rand, Ma& M-A-N B&W, Mitsubishi, Nordberg, Pielstick, Sulzer, Wartsila, White Superior and Waukesha Gas Turbine Expertise Includes: ABB, Allison, Alstom, GE, Mitsui, Nuovo Pignone, Pratt & Whitney, Rolls-Royce, Siemens and Westinghouse. Steam Turbine Expertise Includes: ABB, Alstom, Fuji, GE, GEC, Hitachi, Mitsubishi, Siemens and Westinghouse. Aug 1981- Superintendent - Rebuilding all types of heavy fuel oil and light fuel oil diesel engines, June 1993 gas engine power movers, gas turbine, steam turbine, centrifugal compressors, pumps and all auxiliary power plant equipment. Superintendent - Design and installation of cooling tower for The City of Vernon's Light and Power generating plant. Foreman - Rebuilding the City of Vernon's Light and Power generating plant. Duties included directing crews of up to 30 employees for rebuilding five M-A-N 24"X36" two-stroke diesel engines, all auxiliary water pumps and scavenger air blowers. Ground up installation of two 6,000 kilowatt Allison gas turbines. Also contracted as head of maintenance for the plant Miscellaneous companies contracted to: Air Products, Atlantic Richfield Company, Allison (gas turbines), Bechtel Petroleum, 4 Corners Pipeline, CMS Energy, Holec North America, Matson Lines, NASSCO, Ogden Energy, Pacific Energy, Shell Oil Company, Southern California Edison, Stolt Chemical Lines, Texaco, Union Oil Company and US Navy, City of Vernon, Mirmkota Power July 1979- MCD0nMflD0,y--1asAMmaA Long Beach, CA Aug 1981 Surface Structure Mechanical Engineer - Held Class C government security clearance. Member of United AutoWorkers Union. Foreman for DC-9 and DC-10 class jet, engineered pressure bulkhead. Redesigned and repaired fuselages. Received nine McDonnell Douglas blueprint and mechanical classifications. July 1977- E_ hinore Aerospace Services Downey CA July 1979 Assistant Foreman - Ran crews in fuel tank repair and leak detection, landing gear maintenance and repair, engine maintenance and repair on commercial jet airplanes. Contracted to: National, Continental, Japan Air, and Transamerica. Worked on Boeing 747, Boeing 727, Douglas DC-10, Douglas DC-9, Douglas DC-8 and Lockheed 1,10-11 aircraft. EDUCATION Prager Gear School, Graduate; Allison Gas Turbine Heavy Maintenance, Graduate; California State University at Fullerton; David Starr Jordan High School, Long Beach, CA, Graduate. Additional information and/or references available upon request. Director of Operations and Maintenance Yaser M. Tobeh E X P E R I E N C E Summary of Experience Twenty one years diversified power plant administration, operation/maintenance, project commissioning and management experience; extensive background in construction and outage planning, engineering and quality control at refineries, power plants, and petrochemical/water treatment facilities. Specialist in plant upgrade and staff development programs. Recognized for leadership, ethics, patience and commitment to excellence; a professional in conflict resolution and critical thinking; a strong promoter of healthy visions and values as well as an outstanding communicator and skilled listener. Aspires to becoming a recognized leader, in the process proving that a strong will and a sense of dedication to helping others can go a long way. Detailed Professional Experience I. Wood Group Power Operations, Inc. Director of Operations and Maintenance: September 2002 to Present Director of Operations and Maintenance with overall responsibility for domestic and international power generating facilities. Responsibilities include service marketing, proposals, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. H. Enron -Engineering & Operational Services: February 2000 to September 2002 Mobile, Alabama — MESC Cogeneration Facility Director: June 2002 to September 2002 Home office support to O&M staff on a 143MW steam and power generation facility (Rankin Cycle plant utilizing biomass/sludge as primary fuel w/ natural gas/coal as backup fuel) Gaza, Palestinian Territories Plant Manager: February 2000 to September 2002 Provided critical in -country and remote management to the operations and maintenance (O&M) team on a 140 MW combined -cycle power plant (4x ABB-GT10132 gas turbines on 2x ABB ST10 steam turbines); lead continuous negotiations with Owner group in the difficult transition throughout the Palestinian uprising commenced September 2000. In addition to the prime responsibility as Plant Manager for the Gaza Power Generation Facility, performed the following functions: Chengdu, China — Sinchuan Aaling Electric Power Company — Owner Representative: April 2002 to September 2002 Represented owners, witnessed and approved the performance testing of a 360MW coal fired power plant. Cuiaba, Brazil — Pantanal Energia Page 2 of 4 ;,.ram Development Specialist: June 2001 to December 2001 Analyzed and successfully overhauled management structure at a key ENRON facility, the pioneering 480MW (2x Siemens V84.3A on Ix Siemens steam turbine) Cuiaba IPP completed in 1999; as Acting Plant Manager, implemented innovative teamwork schemes to ensure world -class O&M performance; negotiated OEM response to technical challenges concerning combustor technology; received Owner commendation for a detailed integrity plant audit report. Mobile, Alabama — MESC Cogeneration Facility — February 2001 to June 2001 - Transition Specialist: implemented O&M, plant management and personnel deployment systems on a 143MW steam and power generation facility (Rankin Cycle plant utilizing biomass/sludge as primary fuel w/ natural gas/coal as backup fuel); received Owner commendation for cost savings totaling $1.6MM out of a $14.49MM annual owner budget. M. Coastal States Management Corporation (El -Paso Energy):. September 1998 — February 2000 Brush, Colorado — Site Manager: led construction team on a 250 MW natural gas -fired simple cycle power plant equipped with 2x Siemens Westinghouse V84.3A1 turbines. Quetta, Pakistan — Site Manager / Acting Plant Manager: provided crucial construction, commissioning, Owner support and operatorship management on a 140MW natural gas -fired (3xLM6000 on 1 Mitsubishi) CC power plant — total project value $150MM. IV. HowerBaker Engineers, Inc. Senior Resident Engineer: July 1995 - April 1997: Provided engineering leadership at cryogenic plants in Texas and Alabama to complete $75MM of projects on time for customer groups Air Liquide, GE and Praxair. V. Brown and Root, Inc. - Carson, California: July 1993 - May 1995 At a $580MM Clean Fuels Project (benzene and RVP emission reduction) for ARCO Products Company in Carson, California, held two different positions: Subcontracts Manager / Administrator: led subcontracts management, QC and cost/schedule control. Technical Services Manager developed an Environmental Compliance Manual critical to the documentation of B&R's beneficial effect on environmental issues at the project. VI. Brown and Root, Inc. - Alhambra, California: Senior Construction Planner: September 1991- July 1993 led turnarounds and provided support / expertise to construction planners; successful approach to planning, scheduling and constructability review contributed to completion on time and within budget. Projects included: ARCO California - SOx/NOx Project, ARAMCO - Ras Tamura Refinery Upgrade Project, BP Oil Ohio - FCCU Revamp Project, Union Carbide California - Sulfate Projects, UNOCAL Alaska - Ammonia and Urea Plants Upgrade Project. Page 3 of 4 • V1T. Archicentre - Kuwait City, Kuwait: Lead Site Civil Engineer: November 1988 - August 19" Scheduled and provided engineering support on a US $2.3 billion civil construction project sponsored directly by the government of Kuwait. VIH. Brown and Root, Inc. - KNPC Mina Abdulla, Kuwait: June 1984 - October 1988 At the $1.8 billion Mina Abdulla Refinery project, held three different positions as follows: Commissioning Engineer commissioned refinery sanitary and piping systems including pumping/treatment plants, workshop and coal storage — total project cost $30MM. Building Supervisor: completed design, procurement and construction of substations and multi -facility support buildings at a total cost of $150MM. Field Office Engineer: provided leadership for company's civil office: supervised subcontractors and provided engineering support for $2MM refinery fencing and security facility project. IX. National Engineering Bureau - Kuwait City, Kuwait: May 1984 - June 1984 Site Engineer: solved site problems on several high-rise construction complexes totaling $20MM; monitored schedule and cost; provided constructability approvals. X. Al Rabia Construction Company - Kuwait City, Kuwait: January 1983 - April 1984 Project Engineer: led construction activities including surveying, pre -cast erection, field supervision of crafts and site surveying control on the $15MM Kuwait University Stadium project. Education MBA — In progress — University of Phoenix BSC - Civil Eng. - USL —1978 to 1982 Page 4 of 4 Vice President - Operations and Maintenance Frank G. Avery E X P E .R I E N C E Summary of Experience Over 18 years experience in the Operations and Maintenance of gas turbine based power plants. He has managed all aspects of the O&M business from initial business development activities to the daily execution of the contracts. Over the years he has been responsible for the mobilization, start-up, and long term execution of a variety of facilities both internationally as well as domestically. These facilities have ranged in size form as little as 30 MW to over 600 MW. Frank's most recent experience prior to joining Wood Group Power was serving as the Chief Operating Officer for Power Industry Consultants. As COO he was responsible for the the execution and growth of the entire business including the Operations and Maintenance group. Under his direction the O&M business achieved double digit growth during the term of his assignment placing 13 power generation facilities under O&M contract in both the domestic and international markets. In addition, Frank's experience includes an in-depth knowledge of gas turbine major maintenance contracts. Prior to joining PIC he lead the development of General Electric's Long Term Services Agreement (LTSA) product line. His responsibilities included both the commercial risk management and contract structure of the LTSA products. This efforts culminated in the development of a comprehensive Risk Management model and program used to control the sales and execution of the LTSA products for GE.. This model is still used to manage and optimize over 35 Billion dollars worth of LTSA agreements. Detailed Professional Experience I. Wood Group Power Operations, Inc. Vice President of Operations and Maintenance: March 2003 to Present VP with overall responsibility for domestic and international power generating facilities. Responsibilities include service marketing, proposals, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. H. Power Industry Consultants, Inc. Chief Operating Officer: July 2002 to January 2003 Chief Operating Officer responsible for all of the daily business unit operations and corporate financial operations of the company and its divisions, which included the Operations and Maintenance Group, Field Services Group, Technical Services Group, and Professional Staffing Services Group with a total corporate headcount of approximately 107 personal and variable headcount in excess of 525 personnel. In addition, directed the development and implementation of an intranet based financial reporting and empowerment system, improved accounts receivable collection cycle form an average collection time in excess of 75 days outstanding to less than 50 days outstanding greatly improving the corporations cash flow, fully leveraged and completed implementation of the great plains enterprises financial management and accounting package including the full integration with the Intranet based reporting system, developed Page 2 of 4 enhanced Risk Management and contract implementation strategies, directed the development of standardized and slim line modular contract structure that was applicable to the diverse business needs and greatly reduced the contract negation cycle time, ensured that all business processes were followed and implemented, managed the corporations banking relationships and negotiated renewals of all credit instruments, established and managed all of the various corporate entities and structures used to execute the corporations business, and directed and implemented a budget and planning tool that standardized the budgeting process. M. General Electric, Inc — GE Contractual Services Manager of Strategic Initiatives / Risk Management: July 1997 — Sept. 2000 As Manager of Strategic Initiatives, responsibilities included the development of new and innovative methods, applications, processes and contract structures for costing, pricing, executing and optimizing the growing portfolio of GECS' LTSA and O&M contract business. In addition, restructured LTSA contracts to take advantage of Gas Turbine performance improvements installed under long term LTSA contracts, and to allow for enhanced fleet management by GE. Furtheremore, Mr. Avery developed and implemented a contract modeling tool, know as COSMOS, utilizing a three man core team and contract programming, developed a Fleet Management program to optimize the profitability of the LTSA business by selectively managing groups of contracts as small portfolios and applying parts utilization algorithms to utilize the least number of parts for the group under a fixed price contract structure. III. Stewart & Stevenson Operations, Inc. International Regional Manager: 1995 to July 1997 Responsibilities included P&L and operational responsibility for 17 international power generation facilities ranging from 40 MW to 170 MW including total contract management and new contract negotiations. In addition, managed the successful start-up of eight power generation facilities in two years, established and directly managed five remote area offices for accounting and local management of operations, and developed and implemented standard performance reporting package that met both customer and corporate objectives. IV. Stewart & Stevenson Operations, Inc. New Jersey Area Manager: 1994 to 1995 Responsibilities included direct management responsibility for three Frame 6 based cogeneration facilities ranging in size from 55 Mw to 165 Mw. In addition, successfully managed the transition from previous operator to SSOI in at all three facilities, Improved availability from 91 % to greater than 96 %, and Improved plant profitability through a managed water -wash program and careful power contract management. Page 3 of 4 V. Stewart & Stevenson Operations, Inc. Assistant Operations Manager: 1992 to 1994 Responsibilities included management of the day-to-day operations of 16 gas turbine based cogeneration facilities including direct management of the company's first operations in an international environment. In addition, performed performance monitoring and evaluation of facilities to find methods to improve heat rate and power output and developed the company's standard maintenance management program. VI. Stewart & Stevenson Operations, Inc. Instrument & Controls Technician: 1990 to 1992 Responsibilities included instrument and controls calibration and maintenance for a 30Mw combined cycle cogeneration facility. In addition, performed duties of Assistant Facility Manager for a small staff of four operators and one mechanic, and developed and implemented several plant upgrades to improve performance and operability. VII. United States Navy Gas Turbine Systems Electrician: 1984 to 1990 Obtained rank of GSE First Class in less than five years, Qualified as Engineering Officer of the Watch as a Third Class GSE, Received several accommodations for hard work and solid leadership, and managed a crew of M eNe Gas Turbine Electl icians and Mechanics. Education Mario Umana Harbor School of Science & Technology —1980 to 1984 Graduated 2nd of 175 at Mario Umana Harbor School of Science and Technology. Various Management Training Classes and Programs Key Technical Schools: GE Six Sigma - Green Belt Qualified US Navy Gas Turbine Control Systems Woodward Governor Control School Taylor Distributed Control Systems Brush Voltage Regulator Repair and Maintenance Page 4 of 4 Plant Manager James T. Murray E X P E R I E N C E Summary of Experience Ningnteen years diversified power plant administration, operation/maintenance, project construction, commissioning, start-up and management experience complimented with an extensive background in outage planning, management, budgeting, engineering and quality control at power plants. Detailed Professional Experience I. Wood Group Power Operations, Inc. Plant Manager: Available Immediately Plant Manager with overall responsibility for domestic power generating facilities, including coordination service, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. H. El Paso Power operations: December 2001 to Present Plant Manager - Eagle Point Cogeneration Facility Responsible for the operation and maintenance of the 225MW two on one combined cycle cogeneration plant located inside the Eagle point refinery. facility modifications and plant improvements encluding the new installation of the new Dry Low Nox combustion system on both 7EA gas turbines all within the approved budget. Maintain all contractual agreements and permits. Optimized all phases of operations to provide the highest level of long term benefit to the partners. This includes continuous review and recommendations to the partners of equipment changes and improvements calculated improving the long-term profitability of the facility. III. The Enron Corporation: March 2000 to December 2001 Director of Operations & Maintenance - EEOS Responsible for the overall Operations, Maintenance and Technical support services for the EEOS Southeast merchant plants. Director of Turbine Maintenance & Plant Manager — OEC Responsible for the Maintenance and Overhaul of 17-GE7EA Gas Turbines, 9-GE7B Gas Turbines, 8 Westinghouse 501 D5 Gas Turbines and 3 Westinghouse 501FD Gas Turbines. As Plant Manager, Mr. Murray was also responsible for the operation and maintenance of the 40OMW New Albany Power Plant. Responsibilities included all the daily communication with the ENRON trading desk and operations and maintenance including the scheduling of all planned outages, Plant modifications and Gas Turbine upgrades from 7B to 7E all within the approved budget. Maintain all contractual agreements and permits. Optimize all phases of plant operation to provide the highest level of availibilty and reliabilty to the owner. Page 2 of 4 IV. Coastal Power: November 1990 to March 2000 Director of Operations, Asia Region March 1999 to March 2000 Responsible for the Operation and maintenance of all the operating plants in Asia for Coastal Power. Senior Manager, Engineering & Operations, Asia: December 1998 to March 1999 Responsible for Engineering & Operation of a Coastal Powers Asian projects in Operation, under construction, and in development in Asia. Currently providing startup and operations support for Coastal Power's 140 MW combined cycle Quetta Pakistan Power Project. The project consists of 3 LM6000 PA duel fuel Gas Turbines packaged by Fiat Avio, one steam turbine generator set packaged by MHI, and all the associated equipment for combined cycle operation. Also reponsible for startup and commisioning of THE SABA Pakistan 127MW B&W UFO fired boiler steam plant. Senior Manager; Engineering & Operations, China: February 1998 to December 1998 Responsible for the Engineering and Operations of all Coastal Powers China projects in Operation, under construction and in development in China. Provide on site construction management and startup support for all the plants in the construction and startup phase. Responsible for the Operation and Maintenance of all the operating plants in China. Provide engineering support for all the projects under development in China. Senior Manager, Gas Turbine Operations China: August 19% to February 1998 Responsible for Operation and Maintenance support for Coastal Powers China Gas Turbine power plants both under construction and in operation. Provide technical advice on the operations and maintenance of the Gas Turbines and the balance of plant equipment to help Coastal achieve long life at minimum total cost. Provide engineering support for the China group development team. Installed and commissioned the following equipment. Two GE packaged Frame 6Bs in Suzhou China, Two EGT packaged Frame 613s in Nanjing China, One GE LM6000PA packaged by Stewart & Stevenson in Wuxi China, Two 15Mw NANJING steam turbines, Two BRSGs, Two Wuxi FIFO Boilers and all the associated support equipment in Suzhou China V. Coastal Power - Fulton Cogeneration associates: November 1990 to July 1996 Plant Manager: July 1994 to July 1996 In charge of all daily operations and maintenance including the scheduling of planned outages, facility modifications and plant improvements all within the approved budget. Maintain all contractual agreements and permits. Optimized all phases of operations to provide the highest level of long term benefit to the partners. This includes continuous review and recommendations to the partners of, equipment changes and improvements calculated improving the long-term profitability of the facility. The facility was equipped with a General Electric LM5000 gas turbine generator set rated at 47.5 MW. Page 3 of 4 Maintenance Supervisor: November 1"0 to July 1994 Responsible for the maintenance of the Fulton Cogeneration Facility 47.5 MW combine cycle plant. The plant includes a GE LM 5000 STIG 120, Zurn 221,000 pph 3- pressure } HRSG, Westinghouse WDPF DCS, 500 gpm RO/mixed bed demin water system, two 300 psi 64,000 pph aux boilers, three Aerial/Tideair 300hp gas compressor system and all support equipment for electrical and steam generation. VI. G. C. Hanford Manufacturing Company: September 1984 to November 1"0 Maintenance Supervisor Started as a Plant Engineer at the Power House until November 1986 when was promoted to a Maintenance Supervisor responsible for the maintenance of the power plant and boiler house of a Pharmaceutical manufacturer specializing insterile penicillin products. The plant includes a 10 mw back pressure steam turbine with a Woodward 505 control system, two 250 psi 65,000 pph Indeck fire tube boilers, four 200 psi 30,000 pph Fulton boilers, Taylor DCS (mod 300),six 30hp rotary screw air compressors, two York 500 ton absorption chillers and 600 tons of direct expansion refrigeration equipment, MECO vapor compressor stile for sterile water for injection. Assured compliance to written company and governmental regulations as related to maintenance. Education Flint Vocational trade school (FLINT NY) - Machine Technology - 1977 - General Electric LM Aero-Derivative gas turbine school Woodward 501 Turbine control school Page 4 of 4 1980 Wood Group Power Operations, Inc. Additional Staff Biographies Mark Dobler Mark has a diverse background in both the power and energy services sectors with over 18 years experience in commercial plant operations and technical oversight both leading and supporting global power generation and energy related projects. Mark entered the independent power production market in 1986, developing, constructing and operating IPP's on behalf of Combustion Engineering and Coastal Corporation. Mark served in a number of increasing plant operations capacities including President of Operational Energy Corporation, a third -party O&M provider to the power industry. Mark played an instrumental role in increasing OEC' contract portfolio by over 8,000MW over this 4-year period. As part of Enron's acquisition of OEC in 1997, Mark led the integration efforts of the company in addition to managing the company's development, operation and trading integration of over 3500MW of peaking capacity in the Central and Southeastern US. Largely through the success of these projects, OEC eventually became the pre-eminent O&M provider for all of Enron's generation assets worldwide. Subsequently, Mark became Vice President of Enron Energy Services and was responsible for the commercial delivery of all physical demand -side energy products in the company's portfolio. Mark currently serves as a senior executive with Wood Group Power, responsible for developing and extending its Operations & Maintenance and Bundled Services initiatives including the consolidation of activities of over 22 Wood Group energy services companies in Americas, UK and elsewhere. Executing on this strategy, Wood Group can offer significant value-added energy services across all aspects of plant operations, including commissioning, acceptance, commercial operations, long-term maintenance and asset restructuring. r�'w ar'�r' i/�I /ir/ ■111/'An1' � ■® AM tW' AM AI tO A/ IMM Thomason Mechanical CA. License 420446 Corporate Office: No. California Office: Texas Office: Coletel Office: jmm 2150 E. 37`" Street 4595 Pacheco Blvd. 3444 E. Pasadena Frwy. 6261 Prescott Court Vernon, CA 90058 Martinez. CA 94553 Pasadena, TX 77503 Chino, CA 91710 RTIT14161n1l Tel: (310) 639-3523 Tel: (925) 372-4844 Tel: (713) 472-3444 Tel: (909) 590-4500 Fax (310) 639-8217 Fax (925) 372-4845 Fax (713) 472-8428 Fax (909) 590-4600 www.thomasonmech.com www.coletel.com www.woodgroup.com Exclusive to the City of Vernon July 1, 2003 through June 30, 2004 Hourly Rates Straight Time Overtime & Double time Technical Consulting 95.00 120.00 THESE RATES INCLUDE WAGES, BENEFITS, PAYROLL TAXES, WORKERS' COMPENSATION, OVERHEAD, ALL TOOLS EXCEPT SPECIAL TOOLS AND EQUIPMENT, .PRODUCT LIABILITY, . GENERAL AUTOMOTIVE LIABILITY AND ALL OTHER REQUIRED INSURANCES, PERMITS AND TAXES. THIS DOES NOT INCLUDE STATE SALES OR USE TAXES. OVERTIME SHALL BE CHARGED FOR ALL WORK OVER EIGHT (8) HOURS A DAY AND FOR ALL WORK PERFORMED ON SATURDAYS. DOUBLE TIME SHALL BE CHARGED FOR ALL WORK PERFORMED ON SUNDAYS OR THE FOLLOWING DESIGNATED HOLIDAYS: NEW YEARS DAY, MARTIN LUTHER KING'S DAY, WASHINGTON'S BIRTHDAY, VETERAN'S DAY, MEMORIAL DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, THE DAY AFTER THANKSGIVING DAY AND CHRISTMAS DAY. IF APPLICABLE, TRAVEL TIME FOR TRANSFERRED EMPLOYEES WILL BE CHARGED ON A STRAIGHT TIME BASIS FOR ACTUAL HOURS TRAVELED. TRANSPORTATION, TRAVEL AND HOTEL EXPENSE WILL BE CHARGED AT COST. THERE SHALL BE A MINIMUM FOUR-HOUR CHARGE PER MAN AT THE APPLICABLE RATE FOR SHOW -UP TIME WHETHER WORK IS PERFORMED OR NOT. THERE SHALL BE A MINIMUM EIGHT - HOUR CHARGE PER MAN AT THE APPLICABLE RATE IF HE WORKS MORE THAN FOUR HOURS. ALL ADDITIONAL MATERIALS, RENTALS, FREIGHT AND 3RD-PARTY SUBCONTRACTS SHALL HAVE A FIFTEEN PERCENT (15%) HANDLING CHARGE. ALL WORK IS TO BE PERFORMED USING TMC'S STANDARD ADDENDUM TO CONTRACT DOCUMENT OR OTHER MUTUALLY AGREED TO TERMS AND CONDITIONS. TERMS: NET 30 DAY I Corporate Office: No. California Office: Texas Office: Coletel Office: 2150 E. 37'h Street 4595 Pacheco Blvd. 3444 E. Pasadena Frwy. 6261 Prescott Court Vernon, CA 90058 Martinez, CA 94553 Pasadena, TX 77503 Chino, CA 91710 r# owmw V � Tel: (310) 639-3523 Tel: (925) 372-4844 Tel: (713) 472-3444 Tel: (909) 590-4500 s AW W AW '40M Fax (310) 639-8217 Fax: (925) 372-4845 Fax (713) 472-8428 Fax (909) 590-46W Thomason Mechanical www.thomasonmech.com www.coletel.com www.woodgroup.com CA. LIcense 823124 WOOD GROUP SOUTHERN Hourly Rates CALIFORNIA PREVAILING WAGE AND RATE JULY 1, 2004 through JUNE 30, 2005 Straight Time Overtime SCHEDULE Double time Shift Days Nights Days Nights Days Nights Journeyman Millwright 64.00 66.00 82.00 84.00 100.00 102.00 Working Foreman 67.00 69.00 86.00 88.00 105.00 107.00 General Foreman 70.00 72.00 90.00 92.00 111.00 113..00 Project Manager 72.00 73.00 93.00 94.00 113.00 115.00 Crane Op & Cert Welder 65.00 67.00 84.00 86.00 103.00 104.00 Apprentice Millwright 57.00 59.00 72.00 74.00 88.00 89.00 Machine Shop* 64.00 82.00 100.00 THESE RATES INCLUDE WAGES, BENEFITS, PAYROLL TAXES, WORKERS' COMPENSATION, OVERHEAD, ALL TOOLS EXCEPT SPECIAL TOOLS AND EQUIPMENT, PRODUCT LIABILITY, GENERAL AUTOMOTIVE LIABILITY AND ALL OTHER REQUIRED INSURANCES, PERMITS AND TAXES. THIS DOES NOT INCLUDE STATE SALES.OR USE TAXES. -'--APPRENTICES MAYBE. USED ON ANY CREW CONSISTING OF AT LEAST THREE MEN SUBJECT TO THEIR OALIFICATIONS AND AVAILABILITY. AN ADDITIONAL SEVEN DOLLARS ($7.00) PER HOUR SHALL BE ADDED TO THE GENERAL FOREMANAIS AND FIELD F0RM='S RATE TO COVER THE COST OF TRUCK, MAINTENANCE AND FUEL. bVERTIME SHALL BE CHARGED FOR ALL WORK OVER EIGHT (8) HOURS A DAY AND FOR ALL WORK iMZFORMED ON SATURDAYS. bOUBLB TIME SHALL BE CHARGED FOR ALL WORK PERFORMED ON SUNDAYS OR THE FOLLOWING DESIGNATED HOLIDAYS: NEW YEARS DAY, MARTIN Lu R RING'S DAY, WASHINGTON'S BIRTHDAY, MEMORIAL DAY, VETERIANS DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, THE DAY .:FTER THANKSGIVING DAY AND CHRISTMAS DAY. ;'RAVEL TIME FOR TRANSFERRED EMPLOYEES WILL BE CHARGED ON A STRAIGHT TIME BASIS FOR 4CTOAL HOURS TRAVELED IF APPLICABLE. TRANSPORTATION, TRAVEL AND HOTEL EXPENSE WILL BE OMGED AT COST IF APPLICABLE. SUBSISTENCE FOR NON -LOCAL LABOR WILL BE CHARGED AT THE RATE OF $45.00 PER DAY, PER MAN. 1 PRE SHALL BE A MINIMUM FOUR-HOUR CHARGE PER MAN AT THE APPLICABLE RATE FOR SHOW -UP TIME WHETHER WORK IS PERFORMED OR NOT. THERE SHALL BE A MINIMUM EIGHT -HOUR CHARGE PER MAN AT THE APPLICABLE RATE IF HE WORKS MORE THAN FOUR HOURS. iLL ADDITIONAL MATERIALS, RENTALS, FREIGHT AND 3RD-PARTY SUBCONTRACTS SHALL HAVE A }FIFTEEN PERCENT (15%)HANDLING CHARGE. ALL WORK IS TO BE PERFORMED USING TMC'S STANDARD ADDENDUM TO CONTRACT DOCUMENT OR OTHER �SUTUALLY AGREED TO TERMS AND CONDITIONS. TERMS: NET 30 DAY i j W � Standard Addendum to Contract Documents Thomason Mechanical Corporation Customer and Contract No. INDEMNIFICATION TMC shall defend, indemnify and hold Owner ess from and all claims, liabilities and causes of acf or injury to or death ersons or for damage to or des ion of property resulting from and all negligent acts missions of TMC or any of TMC's subco ctors. 2. TMC shall have no tion to Owner with respect to any damage to or loss of operty sed by the perils of war, insurrection, revolut' nuclear reaction, other perils as may be excluded unde a scope and limits o surance coverage provided by C pursuant to Section 3 hereof. s liability with respect oss, damage or injury shall not exceed th ope and limit the insurance coverage provided pursuant to SeLNQn 3 INSURANCE 3. TMC shall maintain the following insurance course o work: (a) Worker's Com sation and/or all otherjpefiral Insurance in accordance with the s torequireme of the state having jurisdiction over TMC's ern ees whgoffre engaged in the work with Employer's Liability of a undred Thousand Dollars ($100,000) each accident. (b) Comprehensive Gene Bodily In, and Property Damage Liability, including A obile (owned, n-owned and hired), contractual and Co actor's Protective Liab ' Such insurance shall be provide n a combined single limit of a Million Dollar ($1,000,000) r any one accident, with a On Million -Dollar ($1,000,00 Annual Aggregate. yicoysoif', r shall be named as an additional insured and r pect to demnity obligation set forth in Item 1 above un r the insurance described in Item (b) above. PERFORMANCE WARRANTY TMC shall perform its work in accordance with stan s of care and diligence customary in the industry. the event T ails to perform in accordance with those ndards, and Owner h iven written notice thereof to TMC mg the one year period folio the date that TMC's servi are completed, or, if equipment is ' stalled, the date th uch equipment is available for operation Owner's facili MC shall perform all corrective services within he origi scope of work as are necessary to conform the wo o h warranty or guarantee. All costs of such reperformance of shall be borne by TMC. Notwithstanding th ove, ' the event that equipment assembled and delivered TMC, or plied in connection with work to be performed MC, is stored o mains inoperative for thirty (30) days or ore following installatio or delivery to the jobsite, TMC's w anty shall be void and TMC all be released from all liabil' whatsoever in connection with op tion of the equipment less, prior to startup of the equipmen , TM is allowed, Owner's expense, to perform a pre -startup ins ction and 97 necessary maintenance, repairs or testing to assure that the equipment is fully operational and its opera ' can be anted. Owner shall compensate TMC for costs of pre - start inspection, necessary pre -startup mai an and testing for stor or inoperative equipment in a rdance with TMC's standard c e schedules. TMC's warr is valid only if TMC is present durin tartup of such equip t. TMC does not warrant third party mated or equipment. 5. TMC makes 7w rep entations, warranties, covenants, guarantees or undertakin express or implied other than those expressly set forth a IMPLIED WARRANTIES OF MERCHANTABILITY D NESS FOR A PARTICULAR PURPOSE ARE LUDED. rights and remedies of the parties as set fort erein are sole a exclusive and in lieu of any other rights an emedies otherwise a ' able at law or in equity, and the rem ies and liabilities or the pa 'es shall be as stated herein wh er recovery of damages is so based on contract, negligen , strict liability or other theory of law. ither party shall be re onsible or held liable for consequential d incidental da ges including loss of profit, loss of product business i rruotion. however caused. RETENTION 6. Payment terms are net 30 days. No retention shall apply to work performed on other than a lump sum basis. All retention shall be released upon completion of TMC's work for which retention was held back by Owner. HAZARDOUS MATERIALS 7. Except with respect to cleanup costs associated with spill of hazardous materials which is due to TMC's negligence, Owner shall be solely responsible for the selection of waste disposal sites, removal, transportation, packaging, storage, treatment, labeling, manifesting, cleanup and disposal of any waste or hazardous or toxic materials produced, handled by TMC, or encountered in the performance of the work (including, without limit, hazardous wastes, fuels, petroleum hydrocarbons, asbestos and all other material considered toxic or hazardous under environmental, health or safety laws and regulations) as well as all associated costs or documentation connected therewith. As part of the work, TMC shall follow Owner's instructions with respect to such hazardous materials and wastes, and shall assist Owner as specified in the scope of work. Owner agrees to advise TMC in writing if any work is to be performed in an area where hazardous or toxic materials or conditions are likely to be encountered. Owner further agrees that, if such substances or conditions are encountered, Owner will equitably revise the scope of work to include any necessary additional cost or services necessary to resolve all health and safety concerns posed by such substances or conditions. Accepted by. Print Name: Date "1 EXHIBIT B 2 INSURANCE SCHEDULE 3 Thomason shall provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): 4 I. Coverage and Limits 5 Bodilyjury Proogly Damage 6 Hazards Each Person Each Accident Each Accident 7 Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 8 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 _Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000 9 Workers' Compensation $ Statutory 10 Employers' Liability $1 000,000 per employ 11 II. Liabili 12 General Liability $1,000,000 $2,000,000 $1,000,000 13 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (if applicable) $1,000,000 $2,000,000 $1,000,000 14 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 15 Contractual Liability $1,000,000 $2,000,000 $1,000,000 16 Professional Liability $2,000,000 $2,000,000 $2,000,000 17 a. The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 18 19 1. An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 20 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 21 3. An endorsement providing coverage for all operations under this Agreement. 22 4. Such other endorsement as may be required by City. 23 b. In addition to the above, the Consultant shall provide such further proof of insurance documentation as the City deems necessary. 24 25 26 27 28 EXHIBIT "B" SUPPORTING DOCUMENTS 171 • Date:8/27/04 To: Eric Fresch / City Attorney From: Manuel Garcia / Generation Operations Manager' Subject: MGS —Mechanical Commissioning Account Number: 055-500-8200-9000 After MGS construction is completed, many systems will have to be commissioned prior to start-up and commercial operation. Thomason Mechanical Corporation/Wood Group and Bluewater Energy Solutions, Inc. have provided proposals for the work. The TMC proposal is attractive for three reasons: l . TMC has recently completed or is currently working on three Combined Cycle facilities in California similar to the MGS, Sunrise 320mw, Elk Hills 500mw and Corona Clearwater Co -Gen 120mw. 2. TMC's use of local labor avoids mobilization, per -diem and demobilization expenses. 3. TMC has a long track record, 23 years, of successfully meeting the City's mechanical generation needs. Therefore, I recommend that the City of Vernon enter into a "time and material ... not to exceed $560,000.00" agreement with TMC to perform mechanical commissioning of the MGS. The enclosed package includes: 1. Proposal —TMC, $560,000.00 (Recommended) 2. Proposal — Bluewater, $887,760.00 (Not Recommended) 3. L&P Budget, 8300, 5962 Contract Services — FY0405 I am available to review this recommendation in detail. E DE � OOD GROUP Manual Garcia City of Vernon Corporate Office: No. California Office: Texas Office: Coletel Office: BENDER Machine 2150 E. 371h Street 4595 Pacheco Blvd. 3444 E. Pasadena Frwy. 6261 Prescott Court 2150 E. 37"' Street Vernon, CA 90058 Martinez, CA 94553 Pasadena, TX 77503 Chino, CA 91710 Vernon, CA 90058 Tel: (310) 639-3523 Tel: (925) 3724844 Tel: (713) 472-3444 Tel: (909) 590-4500 Tel: (323) 232-2371 Fax: (310) 639-8217 Fax: (925) 3724845 Fax: (713) 472-8428 Fax: (909) 5904600 Fax: (323) 232-6456 www.thomasonmech.com www.woodgroup.com Subject: TMC Background and Experience Dear Mr. Garcia, www.coletel.com www.benederus.com This letter is to inform the City of Vernon of TMC capabilities and experience in the power generation construction and repair field. Background TMC has been in the repair and construction of power generation plants for over 33 years. TMC annual sales are over 60 million dollars. The Wood Group purchased TMC in 2002; the Wood Group has over 3 billion dollars in assets. The Wood Group experiences are O/M of power plants, O/M of gas distribution and compression plants, gas and steam turbine repair, generator repair, and the fabrication of gas turbine parts. TMC Combine Cycle Experience TMC experience in the construction and commissioning of combine cycle turbine power plants is extensive. Resent projects TMC have been contracted to install and commission are: Sunrise Generating Station consisting of (2) GE 7FA Gas Turbine (2) HRSG (1) GE DI Steam Turbine total MW output 500, also the installation of all balance of plant mechanical system. Elk Hills Power Generating Station consisting of (2) GE 7FA Gas turbine (2) HRSG (1) Alstom 264 Steam Turbine total MW output 500, also the installation of all balance of plant mechanical system. Corona Power Station (currently under construction) consisting of (2) GE LM2500 Gas Turbine (2) HESG and (1) Shinn Nippon Steam Turbine total MW output 120. TMC has the expertise to maintain and repair CTG's, STG's, boiler systems, boiler feed systems, gas compression systems and all BOP mechanical auxiliary equipment. TMC Experience with the City of Vernon TMC was contracted by the City of Vernon in June of 1981 to rebuild the existing power plant consisting of (5) Hamilton MAN Diesel internal combustion engines; other duties included the overhauling of all plant mechanical auxiliary equipment. In 1984 TMC was contracted to provide O/M for the plant and to train the new staff of operators employed by the City of Vernon. In 1997 TMC was contracted to install, commission and O/M 2 Allison gas turbines and all turbine auxiliary systems. Presently TMC has an ongoing contract with the City for all mechanical maintenance needs at the power plant. In closing TMC appreciates the opportunity to be of service for the needs of the City of Vernon these past 23 years. We at TMC look forward to servicing your needs in the future. Sincerely, EdDavis Ed Davis TMC Manager 0 U 0 Corporate Office: No. California Office: 2150 E. 376'Street 4595 Pacheco Blvd. Vernon, CA 90058 Martinez, CA 94553 Tel: (310) 639-3523 Tel: (925) 372-4844 Fax: (310) 639-8217 Fax: (925) 372-4845 www.thomasonmech.com www.woodgroup.com 8/18/04 Manual Garcia City of Vernon Texas Office: 3444 E. Pasadena Frwy. Pasadena, TX 77503 Tel: (713) 472-3444 Fax: (713) 472-8428 Coletel Office: SENDER Machine 6261 Prescott Court 2150 E. 374' Street Chino, CA 91710 Vernon, CA 90058 Tel: (909) 590-4500 Tel: (323) 232-2371 Fax: (909) 590-4600 Fax: (323) 232-6456 www.coletel.com www.benederus.com Subject: TMC Labor Cost Breakdowns for Mechanical Commissioning MGS Dear Mr. Garcia, We at TMC/Wood Group are pleased with the opportunity to estimate the above -mentioned subject. The breakdown is as follows: CTG #1 Estimated Pricing 1) System check as per drawings $6,800 2) Inspection of inlet and exhaust pathways $2,500 3) Alignment checks hot and cold, shaft run out checks $7,500 4) Bearing inspections both turbine and generator $27,700 5) Assist in flushing of piping systems and associated piping modifications $25,000 6) Start up of units, balancing of temperatures and assist in performance testing $18,000 Total Estimate $77,500 CTG #2 Estimated Pricing 1) System check as per drawings $6,800 2) Inspection of inlet and exhaust pathways $2,500 3) Alignment checks hot and cold, shaft run out checks $7,500 4) Bearing inspections both turbine and generator $27,700 5) Assist in flushing of piping systems and associated piping modifications $25,000 6) Start up of units, balancing of temperatures and assist in performance testing $18,000 Total Estimate $77,500 At this time Alstom does not have a contract with the City for any commissioning duties. Alstom will be on -site and is responsible for the start up and performance testing of the units, which TMC will be assisting with. HRSG #1 Estimated Pricing 1) System check as per drawings $12,000 2) Assist in flushing of piping systems and associated piping modifications $22,500 3) Inspection and leak down testing of condenser $8,000 4) Alignment checks of blow down transfer pumps $2,000 5) Startup and testing of unit $10,000 6) Assist in Steam Blows $3,000 Total Estimate $57,500 HRSG #2 Estimated Pricing 1) System check as per drawings $12,000 2) Assist in flushing of piping systems and associated piping modifications $22,500 3) Inspection and leak down testing of condenser $8,000 4) Alignment checks of blow down transfer pumps $2,000 5) Startup and testing of unit $10,000 6) Assist in Steam Blows $3,000 Total Estimate $57,500 • Alstom has a contract for the commissioning of these units, which TMC will be assisting. STG Estimated Pricing 1) System check as per drawings $6,000 2) Alignment checks hot and cold, shaft run out checks $7,500 3) Bearing inspections both turbine and generator $24,000 4) Assist in flushing of piping systems and associated piping modifications $15,000 5) Startup and testing of unit $7,500 Total Estimate $60,000 At this time Alstom does not have a contract with the City for any commissioning duties. Alstom will be on -site and is responsible for the start up and performance testing of the unit, which TMC will be assisting with. Ammonia System Estimated Pricing 1) System check as per drawings $3,000 2) Assist in flushing of piping systems and associated piping modifications $10,000 3) Alignment checks on pump with checks of pipe strain $3,000 4) Testing of vaporizing skids HRSG #1 and #2 $5,000 • 5) Load and start up of system $5,000 Total Estimate $26,000 Condensate System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks on deaerator & feed pumps with checks of pipe strain $7,000 3) Inspection of condenser with pressure testing $3,000 3) Assist in flushing of piping systems and associated piping modifications $10,000 4) Startup test $3,000 Total Estimate $26,000 Fuel Compressor Boosting Station Estimated Pricing 1) System check as per drawings $3,000 2) Compressor shaft alignment& run outs checks $7,000 3) Compressor bearing inspection $10,000 4) Compressor valve and piston inspection $30.000 5) Assist in flushing of piping systems and associated piping modifications $15,000 6) Pressure test and start up $10,000 Total Estimate $75,000 Main Circulating Water System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks with pipe strain checks on booster and tower pumps $8,000 3) Assist in flushing of piping systems and associated piping modifications $8,000 • 4) Pressure test and start up $4,000 Total Estimate $23,000 Cooling Tower Estimated Pricing 1) System check as per drawings $3,000 2) Inspect chemical feed system and test $2,000 3) Assist Marley Corporation with start up of unit $5,000 Total Estimate $10,000 Aux. Water System Estimated Pricing 1) System check as per drawings $3,000 2) Alignment checks with pipe strain on aux cooling water pumps $5,000 3) Inspect chemical feed system and test $2,000 4) Assist in flushing of piping systems and associated piping modifications $10,000 5) Pressure test and start up $3,000 Total Estimate $23,000 Demin Water System Estimated Pricing 9 0 1) System check as per drawings $3,000 2) Inspect storage tank and treatment skid $5,000 3) Check alignments of pumps of water treatment skid $3,000 4) Assist in flushing of piping systems and associated piping modifications $4,000 5) Pressure test and start up $2,000 Total Estimate $17,000 Compressed Air System (instrument and plant) Estimated Pricing 1) System check as per drawings 2) Inspect compressor and alignment checks 3) Assist in flushing of piping systems and associated piping modifications 4) Pressure test and start up Total Estimate $10,000 Fire Protection System Estimated Pricing 1) System check as per drawings 2) Inspect engine and pump for start up 3) Assist in flushing of piping systems and associated piping modifications 4) Pressure test system and start up testing Total Estimate $20,000 TMC Total Budgetary Cost $560,000 If you have any questions please call me. Best Regards, U DA444 Ed Davis Manager, TMC/Wood Group $3,000 $2,000 $3,000 $2,000 $3,000 $8,000 $5,000 $4,000 � s am w= r 0 Thomason Mechanical Corp. June/04 Corporate Office: 2150 E 37" ST. Vernon Ca. 90058 Tel: (310) 639-3523 Fax: (310) 639-8217 MGS Construction Schedule No. California Office: 4595 Pacheco Blvd. Martinez, CA 94553 Tel: (925) 372-4844 Fax: (925) 372-4845 Texas Office: 3444 E. Pasadena FnNy. Pasadena, TX 77503 Tel: (713) 472-3444 Fax: (713) 472-8428 Coletel Office. 6261 Prescott Court Chino, CA 91710 Tel: (909) 590-4500 Fax: (909) 590-4600 www.thomasonmech.com Calendar Legend: S: Start Erection, MC: Mech. Complete, FF: First Fire, OP: Operational SC: Structure Complete AC: Alstom Commission, SS: Set Skid 04 05 Task Aug. Sep Oct. Nov. Dec. Jan. Feb Mar. Apr. May Jun. CTG # 1 S MC FF OP CTG #2 S MC FF OP HRSG #1 S SC MC AC,OP HRSG #2 S SC MC AC,OP STG S MC,OP Ammonia S MC,OP Condensate System S MC Fuel Compressor S SS MC OP Main Water System SS MC OP C g Tower S MC OP AWWater System S MC OP Demin. Water System S MC,OP Chemical Feed S MC Compressed Air System S MC OP Fire Protection S MC OP 9 / t / 0 Thomason Mechanical Corp. Corporate office: 2150 E 37 h ST. Vernon Ca. 90058 Tel: (310) 639-3523 Fax: (310) 639-8217 No. California office: 4595 Pacheco Blvd. Martinez, CA 94553 Tel: (925) 372-4844 Fax: (925) 372-4845 Manpower Load Schedule For Commissioning Texas Office: 3444 E. Pasadena Frwy Pasadena, TX 77503 Tel: (713) 472-3444 Fax: (713) 472-8428 coletel Office: 6261 Prescott Court Chino, CA 91710 Tel: (909) 590-4500 Fax (909) 5904600 www.thomasonmech.com 04 05 Task Aug. Sep. Oct. Nov. Dec. Jan. Feb Mar. Apr. May Jun. CTG #1 2 2 2 CTG #2 2 2 2 HRSG #1 2 2 HRSG #2 2 2 STG 2 Ammonia 2 Condensate System 2 Fuel Compressor 2 4 Main Waxer system 2 Cooling Tower 1 Aux Water System 2 Demin. Water System 2 CIAVical Feed I I 2 Co ressed Air System 1 Fire Protection 2 n EDWIN CHARLES DAVIS, JR. 909 McCarthy Court El Segundo, California 90245 Phone (310) 640-1639 June 1993- Thomason Mechanical Corporation, Vernon, CA Present Engine Division Department Manager - Manage all administrative, machine shop and field services. Consulting engineer on power plant design projects and O/M applications. Commissioning engineer on simple cycle, combine cycle and co -generation power plants. I.S.O. 9002 trained. Internal Combustion Engine Expertise Includes: ALCO, Caterpillar, Cooper, Enterprise, EMD, Fairbanks Morse, Ingersoll-Rand, MaK, M-A-N B&W, Mitsubishi, Nordberg, Pielstick, Sulzer, Wartsila, White Superior and Waukesha. Gas Turbine Expertise Includes: ABB, Allison, Alstom, GE, Mitsui, Nuovo Pignone, Pratt & Whitney, Rolls-Royce, Siemens and Westinghouse. Steam Turbine Expertise Includes: ABB, Alstom, Fuji, GE, GEC, Hitachi, Mitsubishi, Siemens and Westinghouse. Aug 1981- Superintendent - Rebuilding all types of heavy fuel oil and light fuel oil diesel engines, June 1993 gas engine power movers, gas turbine, steam turbine, centrifugal compressors, pumps and all auxiliary power plant equipment. Superintendent - Design and installation of cooling tower for The City of Vernon's Light and Power generating plant. . Foreman - Rebuilding the City of Vernon's Light and Power generating plant. Duties included directing crews of up to 30 employees for rebuilding five M-A-N 24"X36" two-stroke diesel engines, all auxiliary water pumps and scavenger air blowers. Ground up installation of two 6,000 kilowatt Allison gas turbines. Also contracted as head of maintenance for the plant. Miscellaneous companies contracted to: Air Products, Atlantic Richfield Company, Allison (gas turbines), Bechtel Petroleum, 4 Corners Pipeline, CMS Energy, Holec North America, Matson Lines, NASSCO, Ogden Energy, Pacific Energy, Shell Oil Company, Southern California Edison, Stolt Chemical Lines, Texaco, Union Oil Company and US Navy, City of Vernon, Minnkota Power July 1979- McDonnell Douglas Aircrafr, Long Beach, CA Aug 1981 Surface Structure Mechanical Engineer - Held Class C government security clearance. Member of United AutoWorkers Union. Foreman for DC-9 and DC-10 class jet, engineered pressure bulkhead. Redesigned and repaired fuselages. Received nine McDonnell Douglas blueprint and mechanical classifications. July 1977- Elsinore Aerospace Services, Downey CA July 1979 Assistant Foreman - Ran crews in fuel tank repair and leak detection, landing gear maintenance and repair, engine maintenance and repair on commercial jet airplanes. Contracted to: National, Continental, Japan Air, and Transamerica. Worked on Boeing 747, Boeing 727, Douglas DC-10, Douglas DC-9, Douglas DC-8 and Lockheed L10-11 aircraft. EDUCATION Prager Gear School, Graduate; Allison Gas Turbine Heavy Maintenance, Graduate; California State University at Fullerton; David Starr Jordan High School, Long Beach, CA, Graduate. Additional information and/or references available upon request. 0 Director of Operations and Maintenance Yaser M. Tobeh E X P E R I E N C E Summary of Experience Twenty one years diversified power plant administration, operation/maintenance, project commissioning and management experience; extensive background in construction and outage planning, engineering and quality control at refineries, power plants, and petrochemical/water treatment facilities. Specialist in plant upgrade and staff development programs. Recognized for leadership, ethics, patience and commitment to excellence; a professional in conflict resolution and critical thinking; a strong promoter of healthy visions and values as well as an outstanding communicator and skilled listener. Aspires to becoming a recognized leader, in the process proving that a strong will and a sense of dedication to helping others can go a long way. Detailed Professional Experience I. Wood Group Power Operations, Inc. Director of Operations and Maintenance: September 2002 to Present Director of Operations and Maintenance with overall responsibility for domestic and international power generating facilities. Responsibilities include service marketing, proposals, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. II. Enron Engineering & Operational Services: February 2000 to September 2002 IV Mobile, Alabama — MESC Cogeneration Facility Director: June 2002 to September 2002 Home office support to O&M staff on a 143MW steam and power generation facility (Rankin Cycle plant utilizing biomass/sludge as primary fuel w/ natural gas/coal as backup fuel) Gaza, Palestinian Territories Plant Manager: February 2000 to September 2002 Provided critical in -country and remote management to the operations and maintenance (O&M) team on a 140 MW combined -cycle power plant (4x ABB-GT10132 gas turbines on 2x ABB ST10 steam turbines); lead continuous negotiations with Owner group in the difficult transition throughout the Palestinian uprising commenced September 2000. In addition to the prime responsibility as Plant Manager for the Gaza Power Generation Facility, performed the following functions: Chengdu, China — Sinchuan Jialing Electric Power Company — Owner Representative: April 2002 to September 2002 Represented owners, witnessed and approved the performance testing of a 360MW coal fired power plant. Cuiaba, Brazil — Pantanal Energia Page 2 of 4 Development Specialist: June 2001 to December 2001 Analyzed and successfully overhauled management structure at a key ENRON facility, the pioneering 480MW (2x Siemens V84.3A on Ix Siemens steam turbine) Cuiaba IPP • completed in 1999; as Acting Plant Manager, implemented innovative teamwork schemes to ensure world -class O&M performance; negotiated OEM response to technical challenges concerning combustor technology; received Owner commendation for a detailed integrity plant audit report. Mobile, Alabama — MESC Cogeneration Facility — February 2001 to June 2001 - Transition Specialist: implemented O&M, plant management and personnel deployment systems on a 143MW steam and power generation facility (Rankin Cycle plant utilizing biomass/sludge as primary fuel w/ natural gas/coal as backup fuel); received Owner commendation for cost savings totaling $1.6MM out of a $14.49MM annual owner budget. III. Coastal States Management Corporation (El -Paso Energy): September 1998 — February 2000 Brush, Colorado — Site Manager: led construction team on a 250 MW natural gas -fired simple cycle power plant equipped with 2x Siemens Westinghouse V84.3A1 turbines. Quetta, Pakistan — Site Manager / Acting Plant Manager: provided crucial construction, commissioning, Owner support and operatorship management on a 140MW natural gas -fired (3xLM6000 on 1 Mitsubishi) CC power plant — total project value $150MM. IV. Howe -Baker Engineers, Inc. • Senior Resident Engineer: July 1995 — April 1997: • Provided engineering leadership at cryogenic plants in Texas and Alabama to complete $75MM of projects on time for customer groups Air Liquide, GE and Praxair. V. Brown and Root, Inc. - Carson, California: July 1993 - May 1995 At a $580MM Clean Fuels Project (benzene and RVP emission reduction) for ARCO Products Company in Carson, California, held two different positions: Subcontracts Manager / Administrator: led subcontracts management, QC and cost/schedule control. Technical Services Manager developed an Environmental Compliance Manual critical to the documentation of B&R's beneficial effect on environmental issues at the project. VI. Brown and Root, Inc. - Alhambra, California: Senior Construction Planner: September 1991 - July 1993 led turnarounds and provided support / expertise to construction planners; successful approach to planning, scheduling and constructability review contributed to completion on time and within budget. Projects included: ARCO California - SOx/NOx Project, ARAMCO - Ras Tamura Refinery Upgrade Project, BP Oil Ohio - FCCU Revamp Project, Union Carbide California - Sulfate Projects, UNOCAL Alaska - Ammonia and Urea Plants Upgrade Project. Page 3 of 4 • VII. Archicentre - Kuwait City, Kuwait: Lead Site Civil Engineer: November 1988 - August 1990 Scheduled and provided engineering support on a US $2.3 billion civil construction project sponsored directly by the government of Kuwait. VIII. Brown and Root, Inc. - KNPC Mina Abdulla, Kuwait: June 1984 - October 1988 At the $1.8 billion Mina Abdulla Refinery project, held three different positions as follows: Commissioning Engineer commissioned refinery sanitary and piping systems including pumping/treatment plants, workshop and coal storage — total project cost $30MM. Building Supervisor: completed design, procurement and construction of substations and multi -facility support buildings at a total cost of $150MM. Field Office Engineer: provided leadership for company's civil office: supervised subcontractors and provided engineering support for $2MM refinery fencing and security facility project. IX. National Engineering Bureau - Kuwait City, Kuwait: May 1984 - June 1984 Site Engineer: solved site problems on several high-rise construction complexes totaling $20MM; monitored schedule and cost; provided constructability approvals. X. Al Rabia Construction Company - Kuwait City, Kuwait: January 1983 - April 1984 Project Engineer: led construction activities including surveying, pre -cast erection, field 40 supervision of crafts and site surveying control on the $15MM Kuwait University Stadium project. 0 Education MBA — In progress — University of Phoenix BSC - Civil Eng. - USL — 1978 to 1982 Page 4 of 4 Vice President - Operations and Maintenance Frank G. Avery E X P E R I E N C E Summary of Experience Over 18 years experience in the Operations and Maintenance of gas turbine based power plants. He has managed all aspects of the O&M business from initial business development activities to the daily execution of the contracts. Over the years he has been responsible for the mobilization, start-up, and long term execution of a variety of facilities both internationally as well as domestically. These facilities have ranged in size form as little as 30 MW to over 600 MW. Frank's most recent experience prior to joining Wood Group Power was serving as the Chief Operating Officer for Power Industry Consultants. As COO he was responsible for the the execution and growth of the entire business including the Operations and Maintenance group. Under his direction the O&M business achieved double digit growth during the term of his assignment placing 13 power generation facilities under O&M contract in both the domestic and international markets. In addition, Frank's experience includes an in-depth knowledge of gas turbine major maintenance contracts. Prior to joining PIC he lead the development of General Electric's Long Term Services Agreement (LTSA) product line. His responsibilities included both the commercial risk management and contract structure of the LTSA products. This efforts culminated in the development of a comprehensive Risk Management model and program used to control the sales and execution of the LTSA products for GE.. This model is still used to manage and optimize over 35 Billion dollars worth of LTSA agreements. 0 Detailed Professional Experience I. Wood Group Power Operations, Inc. Vice President of Operations and Maintenance: March 2003 to Present VP with overall responsibility for domestic and international power generating facilities. Responsibilities include service marketing, proposals, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. II. Power Industry Consultants, Inc. Chief Operating Officer: July 2002 to January 2003 Chief Operating Officer responsible for all of the daily business unit operations and corporate financial operations of the company and its divisions, which included the Operations and Maintenance Group, Field Services Group, Technical Services Group, and Professional Staffing Services Group with a total corporate headcount of approximately 107 personal and variable headcount in excess of 525 personnel. In addition, directed the development and implementation of an intranet based financial reporting and empowerment system, improved accounts receivable collection cycle form an average collection time in excess of 75 days outstanding to less than 50 days • outstanding greatly improving the corporations cash flow, fully leveraged and completed implementation of the great plains enterprises financial management and accounting package including the full integration with the Intranet based reporting system, developed Page 2 of 4 enhanced Risk Management and contract implementation strategies, directed the • development of standardized and slim line modular contract structure that was applicable to the diverse business needs and greatly reduced the contract negation cycle time, ensured that all business processes were followed and implemented, managed the corporations banking relationships and negotiated renewals of all credit instruments, established and managed all of the various corporate entities and structures used to execute the corporations business, and directed and implemented a budget and planning tool that standardized the budgeting process. III. General Electric, Inc — GE Contractual Services Manager of Strategic Initiatives / Risk Management: July 1997 — Sept. 2000 As Manager of Strategic Initiatives, responsibilities included the development of new and innovative methods, applications, processes and contract structures for costing, pricing, executing and optimizing the growing portfolio of GECS' LTSA and O&M contract business. In addition, restructured LTSA contracts to take advantage of Gas Turbine performance improvements installed under long term LTSA contracts, and to allow for enhanced fleet management by GE. Furtheremore, Mr. Avery developed and implemented a contract modeling tool, know as COSMOS, utilizing a three man core team and contract programming, developed a Fleet Management program to optimize the profitability of the LTSA business by selectively managing groups of contracts as small portfolios and applying parts utilization algorithms to utilize the least number of parts for the group under a fixed price contract structure. • III. Stewart & Stevenson Operations, Inc. International Regional Manager: 1995 to July 1997 • Responsibilities included P&L and operational responsibility for 17 international power generation facilities ranging from 40 MW to 170 MW including total contract management and new contract negotiations. In addition, managed the successful start-up of eight power generation facilities in two years, established and directly managed five remote area offices for accounting and local management of operations, and developed and implemented standard performance reporting package that met both customer and corporate objectives. IV. Stewart & Stevenson Operations, Inc. New Jersey Area Manager: 1994 to 1995 Responsibilities included direct management responsibility for three Frame 6 based cogeneration facilities ranging in size from 55 Mw to 165 Mw. In addition, successfully managed the transition from previous operator to SSOI in at all three facilities, Improved availability from 91 % to greater than 96 %, and Improved plant profitability through a managed water -wash program and careful power contract management. Page 3 of 4 0 V. Stewart & Stevenson Operations, Inc. ` Assistant Operations Manager: 1992 to 1994 Responsibilities included management of the day-to-day operations of 16 gas turbine based cogeneration facilities including direct management of the company's first operations in an international environment. In addition, performed performance monitoring and evaluation of facilities to find methods to improve heat rate and power output and developed the company's standard maintenance management program. VI. Stewart & Stevenson Operations, Inc. Instrument & Controls Technician: 1990 to 1992 Responsibilities included instrument and controls calibration and maintenance for a 30Mw combined cycle cogeneration facility. In addition, performed duties of Assistant Facility Manager for a small staff of four operators and one mechanic, and developed and implemented several plant upgrades to improve performance and operability. VIL United States Navy Gas Turbine Systems Electrician: 1984 to 1990 Obtained rank of GSE First Class in less than five years, Qualified as Engineering Officer of the Watch as a Third Class GSE, Received several accommodations for hard work and solid leadership, and managed a crew of twelve Gas Turbine Electricians and Mechanics. Education Mario Umana Harbor School of Science & Technology — 1980 to 1984 Graduated 2nd of 175 at Mario Umana Harbor School of Science and Technology. Various Management Training Classes and Programs Key Technical Schools: GE Six Sigma - Green Belt Qualified US Navy Gas Turbine Control Systems Woodward Governor Control School Taylor Distributed Control Systems Brush Voltage Regulator Repair and Maintenance Page 4 of 4 • Plant Manager James T. Murray E X P E R I E N C E 0 Summary of Experience Ningnteen years diversified power plant administration, operation/maintenance, project construction, commissioning, start-up and management experience complimented with an extensive background in outage planning, management, budgeting, engineering and quality control at power plants. Detailed Professional Experience I. Wood Group Power Operations, Inc. Plant Manager: Available Immediately Plant Manager with overall responsibility for domestic power generating facilities, including coordination service, budgeting, owner interface, direct involvement and support to facility management, O&M contracts and LTSA for both simple and combined cycle operations. II. El Paso Power operations: December 2001 to Present Plant Manager - Eagle Point Cogeneration Facility Responsible for the operation and maintenance of the 225MW two on one combined cycle cogeneration plant located inside the Eagle point refinery. facility modifications and plant . improvements encluding the new installation of the new Dry Low Nox combustion system on both 7EA gas turbines all within the approved budget. Maintain all contractual agreements and permits. Optimized all phases of operations to provide the highest level of long term benefit to the partners. This includes continuous review and recommendations to the partners of equipment changes and improvements calculated improving the long-term profitability of the facility. III. The Enron Corporation: March 2000 to December 2001 Director of Operations & Maintenance - EEOS Responsible for the overall Operations, Maintenance and Technical support services for the EEOS Southeast merchant plants. Director of Turbine Maintenance & Plant Manager — OEC Responsible for the Maintenance and Overhaul of 17-GE7EA Gas Turbines, 9-GE7B Gas Turbines, 8 Westinghouse 501 D5 Gas Turbines and 3 Westinghouse 501FD Gas Turbines. As Plant Manager, Mr. Murray was also responsible for the operation and maintenance of the 40OMW New Albany Power Plant. Responsibilities included all the daily communication with the ENRON trading desk and operations and maintenance including the scheduling of all planned outages, Plant modifications and Gas Turbine upgrades from 7B to 7E all within the approved budget. Maintain all contractual agreements and permits. Optimize all phases of plant operation to provide the highest level of availibilty and reliabilty to the owner. Page 2 of 4 0 IV. Coastal Power: November 1990 to March 2000 Director of Operations, Asia Region March 1999 to March 2000 Responsible for the Operation and maintenance of all the operating plants in Asia for Coastal Power. Senior Manager, Engineering & Operations, Asia: December 1998 to March 1999 Responsible for Engineering & Operation of a Coastal Powers Asian projects in Operation, under construction, and in development in Asia. Currently providing startup and operations support for Coastal Power's 140 MW combined cycle Quetta Pakistan Power Project. The project consists of 3 LM6000 PA duel fuel Gas Turbines packaged by Fiat Avio, one steam turbine generator set packaged by MHI, and all the associated equipment for combined cycle operation. Also reponsible for startup and commisioning of THE SABA Pakistan 127MW B&W HFO fired boiler steam plant. Senior Manager, Engineering & Operations, China: February 1998 to December 1998 Responsible for the Engineering and Operations of all Coastal Powers China projects in Operation, under construction and in development in China. Provide on site construction management and startup support for all the plants in the construction and startup phase. Responsible for the Operation and Maintenance of all the operating plants in China. Provide engineering support for all the projects under development in China. • Senior Manager, Gas Turbine Operations China: August 1996 to February 1998 Responsible for Operation and Maintenance support for Coastal Powers China Gas Turbine power plants both under construction and in operation. Provide technical advice on the operations and maintenance of the Gas Turbines and the balance of plant equipment to help Coastal achieve long life at minimum total cost. Provide engineering support for the China group development team. Installed and commissioned the following equipment. Two GE packaged Frame 6Bs in Suzhou China, Two EGT packaged Frame 613s in Nanjing China, One GE LM6000PA packaged by Stewart & Stevenson in Wuxi China, Two 15Mw NANJING steam turbines, Two HRSGs, Two Wuxi HFO Boilers and all the associated support equipment in Suzhou China V. Coastal Power - Fulton Cogeneration associates: November 1990 to July 1996 Plant Manager: July 1994 to July 1996 In charge of all daily operations and maintenance including the scheduling of planned outages, facility modifications and plant improvements all within the approved budget. Maintain all contractual agreements and permits. Optimized all phases of operations to provide the highest level of long term benefit to the partners. This includes continuous review and recommendations to the partners of equipment changes and improvements calculated improving the long-term profitability of the facility. The facility was equipped with a General Electric LM5000 gas turbine generator set rated at 47.5 MW. Page 3 of 4 0 Maintenance Supervisor: November 1990 to July 1994 Responsible for the maintenance of the Fulton Cogeneration Facility 47.5 MW combine cycle plant. The plant includes a GE LM 5000 STIG 120, Zurn 221,000 pph 3- pressure HRSG, Westinghouse WDPF DCS, 500 gpm RO/mixed bed demin water system, two 300 psi 64,000 pph aux boilers, three Aerial/Tideair 300hp gas compressor system and all support equipment for electrical and steam generation. VI. G. C. Hanford Manufacturing Company: September 1984 to November 1990 Maintenance Supervisor Started as a Plant Engineer at the Power House until November 1986 when was promoted to a Maintenance Supervisor responsible for the maintenance of the power plant and boiler house of a Pharmaceutical manufacturer specializing in sterile penicillin products. The plant includes a 10 mw back pressure steam turbine with a Woodward 505 control system, two 250 psi 65,000 pph Indeck fire tube boilers, four 200 psi 30,000 pph Fulton boilers, Taylor DCS (mod 300),six 30hp rotary screw air compressors, two York 500 ton absorption chillers and 600 tons of direct expansion refrigeration equipment, MECO vapor compressor stile for sterile water for injection. Assured compliance to written company and governmental regulations as related to maintenance. Education Flint Vocational trade school (FLINT NY) - Machine Technology - 1977 - 1980 General Electric LM Aero-Derivative gas turbine school Woodward 501 Turbine control school Page 4 of 4 • Wood Group Power Operations, Inc. • Additional Staff Biographies • Mark Dobler Mark has a diverse background in both the power and energy services sectors with over 18 years experience in commercial plant operations and technical oversight both leading and supporting global power generation and energy related projects. Mark entered the independent power production market in 1986, developing, constructing and operating IPP's on behalf of Combustion Engineering and Coastal Corporation. Mark served in a number of increasing plant operations capacities including President of Operational Energy Corporation, a third -party O&M provider to the power industry. Mark played an instrumental role in increasing OEC' contract portfolio by over 8,000MW over this 4-year period. As part of Enron's acquisition of OEC in 1997, Mark led the integration efforts of the company in addition to managing the company's development, operation and trading integration of over 3500MW of peaking capacity in the Central and Southeastern US. Largely through the success of these projects, OEC eventually became the pre-eminent O&M provider for all of Enron's generation assets worldwide. Subsequently, Mark became Vice President of Enron Energy Services and was responsible for the commercial delivery of all physical demand -side energy products in the company's portfolio. Mark currently serves as a senior executive with Wood Group Power, responsible for developing and extending its Operations & Maintenance and Bundled Services initiatives including the consolidation of activities of over 22 Wood Group energy services companies in Americas, UK and elsewhere. Executing on this strategy, Wood Group can offer significant value-added energy services across all aspects of plant operations, including commissioning, acceptance, commercial operations, long-term maintenance and asset restructuring. 11 Mitch Robinson Mitch has over 16 years in plant operations, asset management, and commodity risk management. He is nuclear trained in the U.S. Navy's nuclear propulsion graduate program, and he is a certified nuclear chief engineer. With Enron's Trading and Marketing group, Mitch completed the commercial and technical development for 3500MW's of natural gas power plants in the midwest and southeast US. He then served as commercial asset manager, running the dispatch group, short term trading, fuel purchasing, marketing, and contract management for the portfolio. Additionally, Mitch ran Enron's fuel spread option group, capturing arbitrage opportunities between various fuels. He marketed power and gas to municipals, utilities, and other merchant energy providers. Mitch set up and ran RWE Trading Americas' power origination and marketing efforts. He developed RWE Trading Americas' structured • transaction strategy. He has experience marketing power, gas, and coal for several energy merchant companies. Mitch has experience with the US Navy, Enron, AEP, and RWE, and is currently a senior executive in Wood Group Power, with direct responsibility for the Bundled Services business and for its O&M marketing efforts. David Branton David has over 29 years of diversified power industry experience including management of business strategies world-wide, business development through organic and acquisitive growth strategies, development and management of world -class business plans including targeting and negotiating related business acquisitions. David's rich background in plant operations and maintenmance attracted consultancy services to several major independent power producers. In addition to performing plant reliability and optimization studies, David helped develop lean and cost effective operations and maintenance organizations with the goal of generating the lowest cost power in an unregulated and competitive market. From 1986 to 1996, David managed to achieve major and unique milestones, including the expansion and growth of a wholly owned, non union subsidiary resulting in the doubling of sales growth in one year to USD 60 million; P&L responsibility for field and repair shop combustion service for the Westinghouse Power Generation Business; created an open shop combustion turbine service subsidiary (Powerserve International, Inc.) to competitively develop and serve markets in the international, electric utility, industrial, and IPP arena; reorganized a 60,000 S.F. repair facility to focus exclusively on the inspection and repair of combustion turbines; managed the worldwide field installation of combustion turbine power plants; successfully built a turbine -generator field service project organization t o support the maintenance and repair of the Westinghouse steam turbine -generator fleet throughout the world; managed six regional project offices providing turbine -generator project services to utilities and industrial customers; obtained the first long term (multi -year) maintenance contract at a nuclear power plant; obtained the first General Electric nuclear turbine -generator maintenance outage contrac; and developed and implemented a complete quality implementation program for performing turbine -generator maintenance on nuclear and fossil generating equipment. • 0 AMM ��ii /111111 /I/ •II�'I�f ICf111111� AM OW" A w Aw ""M Corporate Office: No. California Office: Texas Office: Coletel Office: 2150 E. 37'" Street 4595 Pacheco Blvd. 3444 E. Pasadena Frwy. 6261 Prescott Court Vernon, CA 90058 Martinez, CA 94553 Pasadena, TX 77503 Chino, CA 91710 Tel: (310) 639-3523 Tel: (925) 3724844 Tel: (713) 472-3444 Tel: (909) 5904500 Fax: (310) 639-8217 Fax: (925) 3724845 Fax: (713) 472-8428 Fax: (909) 5904600 Thomason Mechanical www.thomasonmech.com www.coletel.com www.woodgroup.com CA. License 420446 Exclusive to the City of Vernon July 1, 2003 through June 30, 2004 Hourly Rates Straight Time Overtime & Double time Technical Consulting 95.00 120.00 THESE RATES INCLUDE WAGES, BENEFITS, PAYROLL TAXES, WORKERS' COMPENSATION, OVERHEAD, ALL TOOLS EXCEPT SPECIAL TOOLS AND EQUIPMENT, PRODUCT LIABILITY, GENERAL AUTOMOTIVE LIABILITY AND ALL OTHER REQUIRED INSURANCES, PERMITS AND TAXES. THIS DOES NOT INCLUDE STATE SALES OR USE TAXES. OVERTIME SHALL BE CHARGED FOR ALL WORK OVER EIGHT (8) HOURS A DAY AND FOR ALL WORK PERFORMED ON SATURDAYS. DOUBLE TIME SHALL BE CHARGED FOR ALL WORK PERFORMED ON SUNDAYS OR THE FOLLOWING DESIGNATED HOLIDAYS: NEW YEARS DAY, MARTIN LUTHER KING'S DAY, WASHINGTON'S BIRTHDAY, VETERAN'S DAY, MEMORIAL DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, THE DAY AFTER THANKSGIVING DAY AND CHRISTMAS DAY. IF APPLICABLE, TRAVEL TIME FOR TRANSFERRED EMPLOYEES WILL BE CHARGED ON A STRAIGHT TIME BASIS FOR ACTUAL HOURS TRAVELED. TRANSPORTATION, TRAVEL AND HOTEL EXPENSE WILL BE CHARGED AT COST. THERE SHALL BE A MINIMUM FOUR-HOUR CHARGE PER MAN AT THE APPLICABLE RATE FOR SHOW -UP TIME WHETHER WORK IS PERFORMED OR NOT. THERE SHALL BE A MINIMUM EIGHT - HOUR CHARGE PER MAN AT THE APPLICABLE RATE IF HE WORKS MORE THAN FOUR HOURS. ALL ADDITIONAL MATERIALS, RENTALS, FREIGHT AND 3RD-PARTY SUBCONTRACTS SHALL HAVE A FIFTEEN PERCENT (15%) HANDLING CHARGE. ALL WORK IS TO BE PERFORMED USING TMC'S STANDARD ADDENDUM TO CONTRACT DOCUMENT OR OTHER MUTUALLY AGREED TO TERMS AND CONDITIONS. TERMS: NET 30 DAY Corporate Office: No. Califomia Office: Texas Office: Coletel Office: 2150 E. 37`" Street 4595 Pacheco Blvd. 3444 E. Pasadena Frvvy. 6281 Prescott Court AMW r" Vernon, CA 90058 Martinez, CA 94553 Pasadena, TX 77503 Chino, CA 91710 _" Tel: (310) 63M523 Tel: (925) 372-4844 Tel: (713) 472-3444 Tel: (909) 590-4500 Fax: (310) 639-8217 Fax: (925) 3724845 Fax: (713) 472-8428 Fax: (909) 590-4600 M111IL418JEWC1` • • Thomason Mechanical www.thomasonmech.com www.coletel.com www.woodgroup.com CA. License 823124 SOUTHERN CALIFORNIA PREVAILING WAGE AND RATE SCHEDULE JULY 1, 2004 through JUNE 30, 2005 Hourly Rates Straight Time Overtime Double time Shift Days Nights Days Nights Days Nights Journeyman Millwright 64.00 66.00 82.00 84.00 100.00 102.00 Working Foreman 67.00 69.00 86.00 88.00 105.00 107.00 General Foreman 70.00 72.00 90.00 92.00 111.00 113.00 Project Manager 72.00 73.00 93.00 94.00 113.00 115.00 Crane Op & Cart Welder 65.00 67.00 84.00 86.00 103.00 104.00 Apprentice Millwright 57.00 59.00 72.00 74.00 88.00 89.00 Machine Shop* 64.00 82.00 100.00 THESIS RATES INCLUDE WAGES, BENEFITS, PAYROLL TAXES, WORKERS' COMPENSATION, OVERHEAD, ALL TOOLS EXCEPT SPECIAL TOOLS AND EQUIPMENT, PRODUCT LIABILITY, GENERAL AUTOMOTIVE LIABILITY AND ALL OTHER REQUIRED INSURANCES, PERMITS AND TAXES. THIS DOES NOT INCLUDE STATE SALES,OR USE TAXES. SAPPRENTICES MAY BE USED ON ANY CREW CONSISTING OF AT LEAST THREE MEN SUBJECT TO THEIR bUALIFICATIONS AND AVAILABILITY. AN ADDITIONAL SEVEN DOLLARS ($7.00) PER HOUR SHALL BE ADDED TO THE GENERAL FOREMEN'S AND FIELD FOREMEN'S RATE TO COVER THE COST OF TRUCK, MAINTENANCE AND FUEL. 6VERTIME SHALL BE CHARGED FOR ALL WORK OVER EIGHT (8) HOURS A DAY AND FOR ALL WORK $ERFORMED ON SATURDAYS. DOUBLE TIME SHALL BE CHARGED FOR ALL WORK PERFORMED ON SUNDAYS OR THE FOLLOWING DESIGNATED HOLIDAYS: NEW YEARS DAY, MARTIN LUTHER KING'S DAY, WASHINGTON'S BIRTHDAY, MEMORIAL DAY, VETERIANS DAY, INDEPENDENCE DAY, LABOR DAY, THANKSGIVING DAY, THE DAY .AFTER THANKSGIVING DAY AND CHRISTMAS DAY. TRAVEL TIME FOR TRANSFERRED EMPLOYEES WILL BE CHARGED ON A STRAIGHT TIME BASIS FOR }1CTUAL HOURS TRAVELED IF APPLICABLE. TRANSPORTATION, TRAVEL AND HOTEL EXPENSE WILL BE CHARGED AT COST IF APPLICABLE. SUBSISTENCE FOR NON -LOCAL LABOR WILL BE CHARGED AT THE RATE OF $45.00 PER DAY, PER MAN. 1 THERE SHALL BE A MINIMUM FOUR-HOUR CHARGE PER MAN AT THE APPLICABLE RATE FOR SHOW -UP TIME WHETHER WORK IS PERFORMED OR NOT. THERE SHALL BE A MINIMUM EIGHT -HOUR CHARGE PER MAN AT THE APPLICABLE RATE IF HE WORKS MORE THAN FOUR HOURS. Y ALL ADDITIONAL MATERIALS, RENTALS, FREIGHT AND 3RD-PARTY SUBCONTRACTS SHALL HAVE A FIFTEEN PERCENT (15%)HANDLING CHARGE. iL WORK IS TO BE PERFORMED USING TMC'S STANDARD ADDENDUM TO CONTRACT DOCUMENT OR OTHER TnUALLY AGREED TO TERMS AND CONDITIONS. TERMS: NET 30 DAY { EXHIBIT o,t 1] STARTUP AND COMMISSIONING MANPOWER PROPOSAL for CITY OF VERNON MALBURG GENERATING STATION • Proposal No. 200410014 August 20, 2004 Bluewater Energy Solutions, Inc. 0 Proposal No 20041014 August 20, 2004 Page i 0 Table of Contents Section Page 1.0 Executive Summary ........................................................................................................3 2.0 Qualifications.................................................................................................................. 6 3.0 Benefits of BES............................................................................................................... 8 4.0 Project Team.................................................................................................................10 4.1 PROJECT ORGANIZATION .................... ...10 5.0 Project Management Execution Plan.............................................................................15 5.1 PRELHvE NARY PLANNING............................................................................................ 16 5.2 STARTUP AND COMMISSIONING MANAGEMENT...........................................................16 5.4 FINAL COMMISSIONING/TESTING................................................................................19 6.0 Proposal Clarifications .............................. ..............20 ...................................................... 6.1 STARTUP AND COMMISSIONING.................................................................................. 20 7.0 T&M Price Summary.................................................................................................... 23 7.1 STARTUP AND COMMISSIONING LABOR....................................................................... 23 7.2 COMMISSIONING LABOR AND EXPENSES PROJECT ESTIMATE ....................................... 25 • Attachment 1 Bluewater Principal's Resumes Attachment 2 Commissioning Manpower Forecast — (Excel Spreadsheet) 0 Proposal No. 20031008 December 4, 2003 Page 2 of 19 9 1.0 Executive Summary Bluewater Energy Solutions is pleased to provide this Execution Summary / Pricing Proposal to bring the City of Vernon, Malburg Generating Station through the startup and commissioning phase of this important project and into Commercial Operation. The design, procurement, construction, commissioning and testing of any power generation facility is a very complex undertaking involving many parties. It is essential to the project managers and project engineers interests that an experienced Startup and Commissioning team is in place throughout the life of the project to provide experienced oversight and coordination of all involved subcontractors, suppliers, consultants, utilities, regulatory bodies and other parties of interest to the project. The benefits of an experienced Startup and Commissioning team are manifest in diminished technical and commercial risks, avoidance of unplanned schedule and budget variances, and the efficiencies borne of effective communication among all parties throughout the performance of the project. Bluewater Energy Solutions will assemble a team of seasoned power project professionals precisely tailored to the project at hand and the relevant risks and opportunities presented over the course of the project. Our flexible approach to resourcing a project applies specialists only as and when needed — saving our customer money and ensuring the right skills are focused on current project tasks. We offer specialists in the areas of : (i) construction, services, and supply contract negotiation and administration; (ii) project budget, schedule and cost management; (iii) power plant systems and layout design review; (iv) construction management; (v) commissioning and testing; (vi) operator and maintenance training; and (vii) warranty administration and enforcement. Additionally, our Startup and Commissioning team leaders are cross -trained and experienced in anticipating and avoiding technical, commercial and logistical difficulties peculiar to the completion of power projects. We recognize the City of Vernon as a leader in city and utilities management, and are respectful of the imperative to bring the Malburg Generating Station into commercial operation while avoiding pitfalls resulting in unnecessary cost or delay. Our experienced power industry professionals have each spent decades solving problems and managing risks arising in power projects. Because we have "been there and done that" we believe that our experience and education uniquely positions our team to deliver the highest quality of Startup and Commissioning and related services to the City of Vernon in this critical project involving power generation. This proposal is broken it to several parts. We have provided a detailed qualifications summary of our company, a benefits summary, a typical project team, an execution plan proposal for startup and commissioning, an illustrative pricing section, and some attachments including company principal's resumes and estimated man loading charts based on present project information. We have also included pricing budgets based on Bluewater providing the complete startup and commissioning team and a budget with Bluewater incorporating the existing City of Vernon personnel into the Bluewater startup group. Any additional manpower estimates can further be budgeted after a detailed review of the existing project contracts, review of existing City of Vernon resources available to support the project, and review of the detailed project schedule. We encourage the City of Vernon to evaluate this proposal presented by Bluewater Energy Solutions. We are confident that after reviewing the information presented, you will concur with our view that our offering is inherently advantageous as to cost, immediate and continuing availability and flexibility of resources, and underlying qualifications of our Startup and Commissioning team. It is with pleasure we offer our services to you, and we look forward to discussing in additional detail how we might more specifically address your priorities and needs in the near future. Ti • T.. (l i Proposal No. 20031008 December 4, 2003 Page 3 of 19 • • 2.0 Qualifications Bluewater Energy Solutions has the aggregate experience, capabilities, and qualifications to fully and efficiently support the City of Vernon in the performance of the Malburg Generating Station. Our corporate and individual resumes show a breadth of talent and many years of experience in the Engineering Management, Project Management, Construction Management, Commissioning, Operations and Maintenance and Training of a wide variety of power generation facilities. Our personnel have the necessary degrees, qualifications, and licenses to manage and execute the proposed scope of work, leaving the City of Vernon largely free to concentrate on their contracted scope of work. All of our personnel that we will propose for the Malburg Generation Station have been working with one another in the power industry for many years. We have included our corporate resumes in this plan for your information. Bluewater Energy Solutions Bluewater Energy Solutions specializes in power facility project execution from the completion of development to turnover of the commercially operational facility to the Owner/Operator. BES employs only the best of the power industry's project performers. Seasoned project engineers experienced in systems design and layout, equipment and construction specifications, document control, and sequenced deliveries of constructible engineering work product supporting project schedule are among the BES personnel. Site managers experienced in coordinating the efforts of general contractors, equipment suppliers, local authorities and multiple subcontractors, while enforcing safety and quality control programs are also among BES personnel. Specialists in systematic construction completion, equipment start-up, plant performance testing, and the assembly of technical documentation necessary for the operation and maintenance of the facility are included in the BES organization. Further, BES is affiliated with an extensive network of elite specialists and professionals in the power project community that may be enlisted as needed to address risk management, contract review, technical due diligence and design review, contract drafting and negotiation, claims settlement, and dispute resolution. Thus every aspect of project performance, whether routine or extraordinary, is comfortably within BES' grasp throughout the life of a project. We pride our selves in having exceeded our customers' expectations and hold ourselves to meeting this high standard in every future assignment. We achieve customer satisfaction by listening to each customer's objectives and priorities, assembling flexible strategy meeting the customer's needs, maintaining a keen watch and control over schedule or cost slippages, providing continuous feedback and detailed reporting to our customer's management, and managing the project in complete accord with the customer's needs, as they may change from time to time throughout the life of the project. In a nutshell: attentiveness, competence, flexibility and consistency are the key elements to our success and our customer's satisfaction. 3.0 Benefits of BES Bluewater Energy Solutions offers the City of Vernon several advantages over other available options. The City will be dealing directly with the principals of the company. We are able to implement immediately all direction and decisions so as to avoid project delay, additional cost and unnecessary risk. Many of our competitors do not have this flexibility and are hamstrung by multiple layers of process and approval before acting. Our organizations will at all times be immediately available for personal meetings and direction at your convenience, and will maximize the use of services in the course of our performance of this project. Further advantage is evident in the fact that unlike many of our competitors, our organization does not employ middle management staff. All our people are directly engaged in the production of project progress. Our Proposal No. 20031008 Page 4 of 19 December 4, 2003 management personnel are hands-on workers, and each individual engaged in project work is dedicated to progressing the project. The City of Vernon bears no burden of non -productive time spent in the administration or management of our underlying companies. Another particular advantage to the City of Vernon is that our companies have the financial strength to perform and complete a project the size and scope of the Malburg Generating Station. This offers the City a distinct advantage. Bluewater has sufficient cash, receivables, and credit available to us to ensure we are able to perform our work without becoming insolvent. With the current economic conditions, many of the companies in our industry risk bankruptcy and bring unforeseeable and unnecessary risk to the City. Moreover, the City of Vernon can rely on the costs presented in our proposal. We have completed many jobs of this nature, size, and technical complexity over the past years. We have been directly involved with engineering, installation, commissioning and follow-up warranty work for many gas turbines packages, including Siemen's. We understand the amount of effort required delivering top rate commissioning, training and specialized consultation services for this project. Our rates and lump -sum pricing are structured to win this assignment and represent an experienced estimate of the quality and scope of services required to complete the project. We assure you that we stand by our proposed rates and prices, and pledge not to "nickel and dime" the City of Vernon with countless change orders or lump -sum tasks. We pride ourselves in delivering projects on time, on budget and to the satisfaction of our customers. We understand our clients' needs and embrace the demands placed on us in successfully completing our work. We are a seasoned project management team able to provide dedicated services closely tailored to each Customer's needs and best interest. We understand the importance of maintaining cost and schedule targets, and are accustomed to addressing slippages before they become irreversible. You will find that our team is comfortable and capable in enforcing the City of Vernon project program with all third parties, and our extensive experience in technical, commercial and logistical matters will serve to prevent, detect, and avoid or mitigate all adversities that may arise in the course of the project. 4.0 Project Team 4.1 Project Organization The proposed organization will provide the manpower startup and commissioning services for the Malburg Generating Station. To ensure complete coordination of the overall project throughout the various stages of implementation from system turnover through performance testing, the project organization will include a core management team. The Startup Manager heads the core team and has complete responsibility for the project's execution from contract signing to final acceptance and will report directly to the City of Vernon. The Startup Manager will be responsible for ensuring that the startup and commissioning phase of the project is commenced in a systematic order and each system or item equipment is commissioned safely, while working to adhere to a schedule. Supporting the Startup Manager in the core team will be the Lead Mechanical Engineer, Lead Electrical Engineer, Lead I&C Engineer and Lead DCS Engineer. Additional personnel are assigned to the project as needed to support various phases of the work, such as discipline engineers to startup and commission the systems and equipment. The Bluewater home office Project Manager and management team works closely and proactively with the Startup Manager Sand the City of Vernon to ensure the project goals and objectives are being met. Proposal No. 20031008. December 4, 2003 Page 5 of 19 The core management team will be responsible for oversight of all startup and commissioning site activities and will be capable of dealing with all technical issues that may arise, either directly or by direct reference to the responsible parry. The core management team will set out all procedures and controls required for coordinating and routing system turnover documentation, following commissioning procedures and technical interfaces and correspondence as required ensuring the following: • Planning and scheduling all project commissioning activities. • Coordinating project commissioning activities. • Coordinating project commissioning interfaces. • Monitoring and reporting all project commissioning activities. • Producing commissioning progress reports and schedules. • Providing site commissioning Management and Coordination. • Providing complete operator training needs Key Project Team Members Project M er: The Bluewater Project Manager provides the oversight and overall execution management of the Bluewater scope of work. Previous successful experience in project management of EPC projects in a combined cycle configuration; at least fifteen (15) years total experience in the power generation industry. Bluewater is proposing Scott Johnson as the overall Bluewater Project Manager. StartupManager: Previous successful experience in startup management of power generation projects; at least fifteen (15) years total experience in the power generation industry; at least ten (10) years experience in project management of combined cycle facilities. Lead Mechanical Engineer: Previous successful experience serving as Lead Mechanical Engineer for a power generation facility; at least ten (15) years total experience in the power generation industry; at least five (5) years experience in engineering and construction of power generation facilities. Lead Electrical Engineer: Previous successful experience serving as Lead Electrical Engineer for a power generation facility; at least ten (15) years total experience in the power generation industry; at least five (5) years experience in engineering and construction of power generation facilities. Lead I&C Engineer: Previous successful experience serving as Lead I&C Engineer for a power generation facility; at least ten (15) years total experience in the power generation industry; at least five (5) years experience in engineering and construction of power generation facilities. • Proposal No. 20031008 December 4, 2003 Page 6 of 19 Lead DCS Engineer: Previous successful experience serving as Lead DCS Engineer for a power generation facility; at least ten (15) years total experience in the power generation industry; at least five (5) years experience in engineering and construction of power generation facilities. Resumes of some of our principles are provided in Attachment l . 5.0 Proiect Management Execution Plan The successful execution of a large power generation facility is comprised of a large number of factors. Based on Bluewater Energy Solutions discussions with the City of Vernon and our in-depth experience, we have prepared the following execution plan to outline how we would propose to successfully execute the Malburg Generating Station. This is a preliminary plan only, as the final plan will require a detailed review of the existing contracts and agreements in effect as well as a more detailed understanding of existing City resources and their availability to support this project. 5.1 Preliminary Planning This phase represents the start of startup and commissioning execution activities on the project. This initial planning phase is critical to establish the necessary project personnel and resources required to kick off project execution. Some of these preliminary planning activities are noted below: • Review Power Purchase and Fuel Purchase Agreements • Review Emissions and site requirements • Review Preliminary Engineering • Review/Develop Project Schedules • Develop detailed matrix of responsibilities/identify any gaps 5.2 Startup and Commissioning Management Our Startup and Commissioning Team recognizes the importance and magnitude of the Project to the Customer and is ready and committed to make available all of its combined resources, expertise, and experience to ensure that the commissioning and training of this project is successfully completed. To that end, we have developed a Project Execution Plan, which we believe addresses the challenges and issues of the project. We wish to highlight the following key elements of the proposed project approach. • Assigning a highly experienced team of professionals with experience in optimizing, engineering design, constructing and commissioning power plants. • Formal and systematic development of scope, schedule, responsibility and quality on a task -by -task basis to allocate responsibility and focus on the project goals. • Aggressive review and enforcement of the project Quality Plan to ensure quality related goals. • Implementing proven Startup and Commissioning Management approaches to effect proactive control of scope, quality, cost, and schedule; report on progress; identify deviations; take corrective actions when necessary; promote communications; and coordinate the activities of all participants on the project. Progress reporting and project coordination will support the project reporting requirements. Proposal No. 20031008 December 4, 2003 Page 7 of 19 • Technical coordination with the other customer's project management teams through the installation coordination, commissioning and startup planning and coordination, O & M training, and preparation of documentation and project records. 5.3 Pre Commissioning As the project construction nears completion, Bluewater Energy Solutions will move forward with all possible pre -commissioning activities. It is essential to have a clear plan, process and necessary documentation identified early on in the project construction phase to ensure the construction contractor is prepared to provide the necessary documentation and support to fulfill the project requirements, thereby reducing the risk of problems and schedule delays at this critical juncture of the Project. The commissioning team will work very closely with the construction team to support their completion activities as well as optimize of the project schedule by performing the pre -commissioning activities in parallel with the completion of construction activities. The following is a brief listing of key pre - commissioning actions to be completed by the Bluewater Energy Solutions team: Develop Commissioning Procedures and Documentation including: • Commissioning Plan • Startup Safety Plan • Review and Compile Project Technical Data • System Start-up Boundary Scoping • Detailed Start-up and Commissioning Schedule is • System Commissioning Procedures • System Turnover Packages • Perform operability/commissioning review This list is subject to change, based on review of various project documents. 5.4 Final Commissioning/Testing As the construction of various plant systems reach completion, commissioning and testing activities required to obtain commercial operation will be completed. In close coordination with the construction team, the commissioning team will complete the facility commissioning and testing as follows: Assemble and Mobilize the Site Commissioning Team • Finalize Mobilization Schedule for the Site Commissioning Team • Select Team Members • Identify Tools and Test Equipment Commission and Start-up Plant Systems including: • Develop Punch -List Structure and Priorities • Walk Down and Punch -List Plant Systems • Commission and Start-up Plant Systems and Equipment in accordance with the Commissioning Procedures • Complete required Facility Testing • Oversee Operation of the Plant and Facilitate Operator Training Proposal No. 20031008 Page 8 of 19 December 4, 2003 • Resolve Punch -List Items • Finalize Start-up Documentation 6.0 Proposal Clarifications 6.1 Startup and Commissioning 1. Bluewater Energy Solutions personnel will be acting under the direction of and on the behalf of Customer. 2. Customer shall ensure that security is provided at the Project site at all times during the course of the Work, including but not limited to, safeguarding Bluewater personnel and personal property. 3. Proposal does not include office and workspace, climate controlled storage as necessary for tools, spares and equipment, telephone and facsimile services, site radios, specialized test equipment and sanitary facilities. These items can be added to Bluewater's scope, but is generally more cost effectively executed using existing Customer or Construction Contractor arrangements. 4. Cost of living expenses and travel expenses have been estimated for this proposal. These costs may need to be more accurately forecast following finalization of the project schedule and resource requirements. 5. Customer shall provide up to date and accurate Customer Information. 6. Proposal does not include all third parties testing including High Voltage Testing (transformer, hi -pot, relay, breaker, and CT/PT testing), System Flushing Contractor, Chemical Clean and Steam Line cleaning contractor, Plant Performance Testing, Plant Emissions Testing, and Site Noise Testing. Proposal does not include High Voltage substation commissioning. Coordination, however general oversight of the substation contractor for commissioning is included. 7. Proposal does not include any debris removal and waste material collection facilities and services at the Facility. 8. Customer shall name, Bluewater Energy Solutions as an additional insured under the All Risks Insurance policies in force on the Project. 9. Customer shall provide, in quantities and at times necessary to support the Start-up Schedule as it may be amended from time to time: (a) sufficiently qualified and skilled construction craftsmen, labor and supervision complete with all tools of trade and equipment necessary to support the Work; (b) original equipment manufacturers' technical representatives qualified to direct and perform commissioning of their equipment; (c) the support and services of the Project design engineers and constructors necessary to cause the orderly and sequenced completion of the Project, site works, utility interconnections and punchlist; (d) operating and maintenance personnel adequately trained, experienced, qualified and equipped in the operation and maintenance of power generating plants similar to the Project; and (e) all tools and equipment identified by Bluewater Energy Solutions as necessary to support the Work. 10. Proposal does not include additional labor support of O&M after commercial operation. Such Alk services can be provided at the same rates proposed. Proposal No. 20031008 December 4, 2003 Page 9 of 19 7.0 T&M Price Summary Bluewater Energy Solutions is pleased to present to following pricing estimates to support the City of Vernon in the successful execution of the Malburg Generating Station. 7.1 Startup and Commissioning Labor We have provided anticipated hourly rates for the types of personnel we expect will be required to successfully execute this project. Description Rate $ Startup Manager 70.00 Lead Mechanical Engineer 65.00 Mechanical Engineer 62.00 Lead Electrical Engineer 65.00 Electrical Engineer 62.00 Lead I&C Engineer 65.00 i&C Engineer 62.00 Lead DCS Engineer 66.00 Turnover Coordinator 55.00 • It is expected that once the project kicks off, the above personnel will generally be working on the project full time. Prior to full kick off of the project, Bluewater Energy Solutions can provide the necessary support services on an as needed basis by the local principals. Labor Once startup and commissioning personnel are assigned to the project on a full time basis, then labor billings will consist of hours worked by Bluewater Energy Solutions employees in any given week, multiplied by Bluewater Energy Solutions hourly billing rate for each position as shown above. Bluewater Energy Solutions hourly billing rates includes employee salary, health and life insurance, Workers' Compensation insurance, corporate General Liability insurance, and all fees and taxes charged by the United States Government. Travel (Mobilization/Demobilization) Ex ei All expenses associated with Bluewater Energy Solutions employee travel to and from the project site, will be invoiced at cost plus 10%. Expenses incurred in transit include mileage from the employees point of origin to the site location, tolls, lodging, meals (up to $35.00 USD per day, no receipts required), and up to 3 days travel time each way (up to 8 hours per day). Living Expenses/Per Diem: Upon arrival at the project site, a living allowance of $90 per day times seven days per week for each Bluewater Energy Solutions employee assigned to this project will be invoiced at cost plus 10% in lieu of actual living expenses. Bluewater Energy Solutions will invoice Customer for T&M Work in accordance with mutually agreed upon terms and conditions. r n I Proposal No. 20031008 December 4, 2003 Page 10 of 19 7.2 Commissioning Labor and Expenses Project Estimate Total estimated T&M billings for the work described in 5.1, 5.2 and 5.4 is shown below. We have also included a detailed breakdown of this item with estimated manpower loading, hourly rates, expenses, etc. in Attachment 2. Complete Bluewater Team Item Item Description Estimated Price 1. Labor $1,268,255 2. Living Expenses/Per Diem $201,600 3. Mobilization/Demobilization Expenses $30,000 4. 1 Expense Handling Fee $23,160 Total Estimated $1,522,985 City of Vernon/Bluewater Team Item Item Description Estimated Price 1. Labor $736,290 2. Living Expenses/Per Diem $119,700 3. Mobilization/Demobilization Expenses $18,000 4. Expense Handlin Fee $13,700 Total Estimated $887,760 0 Proposal No. 20031008 December 4, 2003 Page 11 of 19 • • a Attachment 1 Bluewater Principal's Resume Proposal No. 20031008 Page 12 of 19 December 4, 2003 . SCOTT W. JOHNSON PRINCIPAL/ OVERVIEW Have over 18 years of experience in the power generation industry. During this time, have had continuing increase in responsibility and authority resulting from excellent performance and extensive experience in the complete cycle of power generation projects from conceptual design to the successful completion of testing and turnover. Specialties include extensive experience in executive management, project management, construction management and startup management with a focus on hands-on field involvement. Experiences vary from smooth running, successful projects through troubleshooting and correcting problematic projects under dispute conditions. SUMMARY OF WORD EXPERIENCE BLUEWATER ENERGY SOLUTIONS July 2003 to Present Principal Principal in consulting practice focusing on: (i) technical support for the power generation industry specializing in successful project execution; (A) provision of technical experts to lead or support the successful project execution; (m) provision of fiill scope startup solutions, from concept to completion; and (iv) supporting contractors or owners in project organization and execution plans to minimize the risk of adverse claims and unnecessary disputes. POWER INDUSTRY CONSULTANTS July 2001 to May 2003 Senior Director, Technical and Consulting Services Directed and coordinated activities of one or more internal Business Units) and advised the President and CEO in formulating and administering organization policies by performing the following duties personally or through subordinate Managers. - Conferred with President and CEO and other administrative personnel to review achievements and discuss required changes in goals or objectives resulting from current status and conditions. . _ Managed a home office team of up to 20 persons and a field team of over 200. Developed and implemented Business Unit goals and objectives, - Reviewed analyses of activities, costs, operations, and forecast data to determine department or division progress toward stated goals and objectives. - Coordinated these Business Units with other corporate business units. - Responsible for the Technical Services and Consulting Services units. These units performed all field contract labor, managed startups, training, publications and performance testing contracts for the company. - Served as member of the company's management committee. Project Manager Initial responsibilities included setting up and managing contract with Pratt Whitney Power Systems to provide all field installation and startup personnel required by Pratt and Whitney for all of their FT8 engines. Second assignment was to assume Project Management responsibilities for 7 Pratt Whitney gas turbine simple cycle facilities already in the development and installation phases. Projects were own, develop, build and operate contracts. Total project value was over 250 million dollars. PENPOWER August 2000 to June 2001 Lead Mechanical Startup Engineer • Westbrook Energy Facility, Westbrook, Maine 520 MW Combined Cycle Cogeneration Plant. GE D11 Steam and Frame 7F Gas Turbines, NEM HRSG Responsibilities included supervising startup and test activities of plant mechanical systems, interfacing with vendor representatives and directing all plant operations during the startup phase. Also supervised the facility final completion activities with the contractor and Owner. INDUSTY & ENERGY ASSOCIATES June 19" — July 2000 Project Manager • Rathdrum Power Project, Rathdrum, Idaho 270 MW Combined Cycle Power Plant d-GE Frame 7F Gas Turbine, GE Steam Turbine, Aalborg HRSG. Proposal No. 20031008 Page 13 of 19 December 4, 2003 Responsible for all project activities including design, procurement coordination with the Project Owner, construction coordination with an EPC partner and all startup/training activities for this project. Detailed duties included full responsibility for all project set-up, engmeering/design, vendor coordination, commissioning and testing activities, all interface with the contractor and Owner, project schedule control, and project cost control NEPCO October 1989 — June 1999 Project Manager August 1997 — June 1999 • Sahacogen Facility, Sriracha THAILAND 122MW Combined Cycle Power Plant 2-1H1 LM6000 Gas Turbines, ABB Steam Turbine, Aalborg HRSGs. Responsible for all project field activities including design, procurement and construction coordination with a Consortium Partner and the Project Owners for this 66 million USA project, Detailed duties included full responsibility for all commissioning and testing activities, all interface with the designer and equipment suppliers, importing and delivery of all supplied equipment, project schedule control, project cost control, management of all site personnel and control of all project closeout activities. Also was directly involved with the setup, direction and management of NEPCO's Thailand subsidiary company established for this project. The project was successfully maintained on schedule and with -in budget. Project Manager April 1996 —July 1997 • Smithfield Energy Facility, Smithfield NSW AUSTRALIA 160MW Combined Cycle Power Plant 3-GE Gas Turbines, GE Steam Turbine, NE HRSG. Responsible for all project activities including final design, final construction and commissioning for this 100 million US$ project. Duties included all project coordination between two joint venture partners, administration, control and reporting of all project costs, coordination with client and control of project schedule. Also responsible for development and implementation of global project completion and closeout plan. Assumed responsibilities for this project which was in serious problems with cost overruns and failing confidence with the client. Successfully minimized many cost overruns and re-established a strong position with our client by the implementation of an aggressive completion plan. Commissioning Manager August 1994 - March 1996 • Lavrion Combined Cycle Power Project, Lavrion GREECE 173MW Combined Cycle Cogeneration Plant. GEC Gas Turbines, GE/Ansaldo Steam Turbine, Babcock Energy Boilers Responsible for all jobsite commissioning and testing activities, plant operations, supervision of up to 20 commissioning team members and ensuring safe, orderly commissioning phase. Due to project organization, also designed and supervised implementation of many major plant design changes as well as completion of much of the original plant design. Set-up the commissioning program including development of commissioning procedures, turnover documentation, turnover program, commissioning schedules, client interface plan and operator training. Directly involved with project management for global planning and implementation of project plans. Responsible for the overall control of the site on a day to day basis including construction, engineering and commissioning activities. Start -Up Manager (Corporate) December 1992 - August 1994 Responsible for all startup and testing activities on all company power generation projects. Have managed over ten (10) projects in this position. Administer all startup contracts, supervise up to 50 personnel, hire all startup personnel, establish manning requirements, and develop and implement startup policies and procedures. Other responsibilities include reviewing engineering designs, technical direction to all Field Startup Managers, development of startup test procedures, schedules and budgets, and maintaining direct interface with all clients. Start -Up Manager April 1990 - December 1992 Responsible for all jobsite startup and testing activities, plant operations, scheduling vendors, supervising up to fifteen (15) startup team members, and ensuring a safe and orderly startup throughout the commissioning phase of various projects up to and including all performance testing. Normal startup phase is five to seven months. Develop startup schedules and budgets. Administer startup contract and maintain startup budget. Also provide interface between client, engineering and construction personnel through startup and plant turnover phases. Also, in the time between field assignments, worked on supervision of the ongoing projects. These duties included hiring personnel, establishing manning requirements, reviewing budgets, reviewing engineering design documents, and developing policies and procedures. Proposal No. 20031008 December 4, 2003 Page 14 of 19 • Operational Energy Corporation Startup Manager Assignments • Alternative Energy, Inc., Livermore Falls, Maine 40MW Wood -Fired Power Plant. GE Steam Turbine, Zurn boiler. • Pedricktown Cogeneration, L.P., Pedricktown, New Jersey 120MW Combined Cycle Cogeneration Plant. GE Steam and Gas Turbines, Zurn HRSG and aux. boiler. • Fulton Cogeneration Associates, Fulton, New York 50MW Simple Cycle Cogeneration Plant. GE Gas Turbine. • Exeter Energy Company, Sterling, Connecticut 30MW Fire -Fuel Power Plant. GE Steam Turbine, Zurn boilers. • Indeck Energy Service, Inc., Oswego, New York 52MM Simple Cycle Cogeneration Plant. GE Steam and Gas Turbines, Zum HRSG Lead Mechanical Startup Engineer October 1989 to April 1990 Responsibilities included supervising startup and test activities of plant mechanical systems, interfacing with vendor representatives and directing all plant operations during the startup phase. • Indeck Energy Service, Inc., Tonawanda, New York 52MM Simple Cycle Cogeneration Plant. GE Steam and Gas Turbines, Zurn HRSG GENERAL PHYSICS CORPORATION Engineer/Manager of O&M Services May 1985 to October 1989 Responsibilities included assisting in the construction, plant administrative set-up, maintenance program set-up, operator Wanting and plant startup at two wood -fired power plants. Developed operator training materials and training of all operators at these sites. Worked directly for the owners O&M Company in support of their initial plant administrative set- up and physical startup. Manager of Fossil Simulator Training Responsible for managing the simulator training group which included contracts on three replica simulators with instructors on site at these simulators and the development of all fossil simulator training projects. Trained power plant operators and supervisors on a 450MW pulverized coal unit simulator. Other responsibilities included developing system descriptions, operations procedures and training manuals on power plants ranging from small Cogeneration heating plants to 650MW coal-fired units. Also presented many different training programs to operations and maintenance personnel at a variety of locations. May - June 1982 and 1984 Cadet Engineer Marine Maritime Academy Responsibilities included operation and maintenance of all equipment on a 12,000 hp steamship. May 1983 to August 1983 Marine Transport Lines Operating Engineer Duties included operation and maintenance of all equipment on a 14,000 hp diesel driven oil tanker. EDUCATION • Marine Maritime Academy - Bachelor of Science, Engineering Valedictorian Engineer Class 1985 • Stationary Engineer's License - Maine • First Class Stationary License - Maryland • US Coasts Guard License Third Assistant Engineer Steam & Motor, Unlimited Horsepower • Fluent in MS Word, Access, Outlook, Project and Excel as well as a variety of other software systems. it t e T n 1, Proposal No. 20031008 Page 15 of 19 December 4, 2003 i PERRY R. NOVAK Resume SUMMARY: Mr. Novak has 23 years of experience and is recognized as a leader in the Energy Services Industry having previously been President of Power Industry Consultants, PIC. While at PIC, Mr. Novak created and expanded the Technical Services business unit while leading this multimillion dollar, company's overall sales and execution efforts through turbulent times in the energy industry. Previously, Mr. Novak was responsible for the world-wide startup and commissioning of all Enron projects where he managed hundreds of personnel and numerous project commissioning efforts varying for small to very large, He successfully organized and upgraded Enron's world wide facility commissioning program. Mr. Novak also successfully completed many years in the field with Nepco as Project Manager, Startup Manager and Startup Engineer. Mr. Novak attended Golden Gate University following his tow in the US Air Force. Mr. Novak's education and experience with roles of increasing responsibility from Air Force Technician, startup engineer, project manager, and corporate manager to corporate executive qualify him as a world class leader in the energy industry. PROFESSIONAL EXPERIENCE: 10/03 — Present Principal/ Vice President Bluewater Energy Solutions Mr. Novak is a partner of Bluewater Energy Solutions where they perform outsourcing services to the energy and industrial marketplace. This involves developing a marketing strategy, direct selling and business development activities and contract negotiation. Bluewater Energy Solutions was founded on the resume and reputation of its partners and is successful today due to its quality of service and products that we provide. 5/02 — 9/03 President PIC Energy Group. Inc Atlanta, GA Mr. Novak was responsible for the overall fiscal performance of the company including planning, developing and establishing policies and objectives of the business organization in accordance with the Board of Directors directives and corporate charter through management of multiple subordinate executives. He was responsible for the overall direction, coordination and evaluation of the various business units. 8/00 — 5/02 Vice President, Technical Services PIC Energy Group. Inc Atlanta, GA Mr. Novak was responsible for business development and execution of fixed price or startup team contracts, training, procedures and manuals development. This included all planning and preparation required performing entire project startups, plus personnel selection, team organization and all financial controls and responsibilities. He reported to the Executive Vice President of PIC Energy Services and provided corporate executives updates and administrative reports. He interfaced directly with all client personnel, engineers and construction managers to assist in providing the best startup and commissioning approach for executing the startup of a project. Proposal No. 20031008 December 4, 2003 Page 16 of 19 7/98 — 7/00 Director of Startup and Commissioning Enron Engineering and . Construction Company Mr. Novak was responsible for all startup and commissioning activities. This included managing the commissioning department, which prepared schedules, estimates, procedures and plans, along with assembling team managers and members to successfully perform the startup phase of a construction project. Project types included power, process, pipelines, compressor stations and water filtration or treatment. Reported directly to the President of EE&CC and managed the oversight of project updating to corporate executives and company administration. Additionally provide engineering and owner interface as each project was being executed and accepted by the owner's team. Noteworthy EE&CC projects Department Oversight Sutton Bridge Power Station, UK 80OMW 2X1 GE Frame 9F Units Marmara Power Station, Turkey, 48OMW 2X1 Siemens V84.6 Units Dabhol Power Station, India 160OMW 4X2 GE Frame 9F Units Penuelas Power Project, Puerto Rico, 50OMW 2X1 Westinghouse 501D Units Cuiaba Power Project, Brazil, 48OMW 2X1 Siemens V84.6 Units Brownsville Power Project, Tennessee, 4x Westinghouse 501D Units Caledonia Power Project, Mississippi, 6x GE Frame 7 Units New Albany Power Project, Tennessee, 6x GE Frame 7 Refurbished Units Lincoln Power Project, Illinois, 8x GE Frame 7 Units Gleason Power Project, Tennessee, 3x Westinghouse 501F Units Wheatland Power Project, Indiana, 4x Westinghouse 501D Units 8/97 — 7/98 Project Manager Operational Energy Corporation Mr. Novak was responsible for the development and execution of the startup and commissioning contracts. This included both lump sum and cost reimbursable methods as well as proposal preparation and negotiation. He scheduled all manpower and resources to execute a project and audited ongoing cost and management from the corporate office. He supported business development with onsite presentations and communications to clients performed engineering interface for estimating or problem resolution. 8/96 — 7/97 Project Startup Manager Sithe Smithfield Cogeneration Facility N.S.W. Australia, 160 MW Combined Cycle Cogeneration Facility (3 x GE Frame 6 Units) Mr. Novak was responsible for all startup and testing on power and cogeneration projects. He administered the startup contract, scheduled vendors, supervised the startup team members and ensured a safe and orderly startup. He provided key interface between the client, engineering and the construction management personnel. 8/95 — 7/96 Project Manager Rio Vista Water Treatment Control Project 30 MGD Filter/Clarifier Plant, Santa Clarita, CA Mr. Novak was responsible for the construction and commissioning of this water treatment facility and acceptance by the City of Santa Clarita. This role involved managing the engineering contractor and local constructors in order to safely and efficiently turnover and operate the facility for the Los Angeles Water Basin. 2/992— 7/95 Project Startup Manager Various Sites Mr. Novak was responsible for all startup and testing on power and cogeneration projects. He administered the startup contract, scheduled vendors, supervised the startup team members and ensured a safe and orderly startup. He provided key interface between the client, engineering and the construction management personnel. Proposal No. 20031008 December 4, 2003 Page 17 of 19 Projects Included: • Orange Cogeneration Facility, Bartow, Florida 102 MW Combined Cycle Cogeneration Plant 2 x GE LM6000 DLN Units AG -Energy, L.P. Ogdensburg, New York 80 MW Combined Cycle Cogeneration Plant 1 x GE LM6000 Unit 1 x GE LM2500 Unit Pasco Cogeneration, Ltd. Dade City, Florida 106 MW Combined Cycle Cogeneration Project 2 x GE LM6000 Units Power City Partners, L.P., Massena New York 52 MW Combined Cycle Cogeneration Project I x ABB 8 Unit Seneca Power Partners, L.P., Batavia, New York 56 MW Combined Cycle Cogeneration Project 1 x GE Frame 6 Unit 9/87 - 2/92 Senior Electrical Startup Engineer Various Sites Mr. Novak was responsible for all startup electrical testing activities and approving their operation in a safe and proper manner, including reviewing plant engineering documents and P&ID's, performing electrical testing and troubleshooting on all plant electrical system's and equipment, assigning work to and supervising OEC electrical technicians and construction craftsmen in support of startup testing activities, working with equipment vendors, and interfacing with NEPCO engineering and construction departments as required. Proiects Included: Pedricktown Cogeneration, L.P., Pedricktown; New Jersey 120 MW Combined Cycle Cogeneration Project 1 x GE Frame 7 Unit Exeter Energy Company, Sterling, Connecticut 30 MW Tire — Fueled Power Plant Fulton Cogeneration Associates, Fulton, New York 50 MW Simple Cycle Cogeneration Plant I x Stewart and Stevenson LM5000 STG Unit Hydra -Co Enterprises, Inc. New Bern, North Carolina 50 MW Wood Fired Power Project Imperial Resources Recovery Facility, Brawley, California 18 MW Agriculture/Urban Wood Waste to Energy Power Project Wadham Energy, L.P., Williams, California' 28 MW Rice Hull Waste to Energy Power Project Proposal No. 20031008 Page 18 of 19 December 4, 2003 . Signal Energy Systems, Inc., Anderson, California 49 MW Wood -Fired Power Project 2/86 - 8/88 Maintenance Electrician Martell Cogeneration L.P., Martell California 20 MW Wood — Fired Cogeneration Plant Mr. Novak was responsible for maintaining on-line operation as well as performing electrical maintenance on all plant equipment. 9/81 - 8/85 Journeyman Electrician U.S. Air Force Mr. Novak was responsible for designing and constructing electrical systems for military base power, including industrial equipment and housing facilities. Education: Yuba College, Golden Gate University, AA, Business management, 1983 • 0 EXHIBIT CITY OF VERNON PG. 2 8200 BUDGET DETAIL AND SUMMARY 07-Jun-2004 2004-2005 DEPT: GENERATION OPERATIONS w 1101 REGULAR 1102 OVERTIME 1103 CASUAL SUB TOTAL 2120 RETIREMENT 2130 GROUP INSURANCE 2140 UNEMPLOYMENT 2150 WORKER'S COMPENSATION 2160 AUTO INSURANCE 2170 MEDICARE 2180 BENEFIT ALLOWANCE SUB TOTAL 5200 DEPARTMENTAL SUPPLIES/SERVICE to 5300 COMPUTER SERVICES 5400 UNIFORMS 5470 FUEL EXPENSE 5471 FUEL ADDITIVES 5480 GENERATION EXPENSE 5600 UTILITIES & COMMUNICATIONS 5700 VEHICLE LEASE 5900 BUILD. & EQUIPMENT MAINTENANCE 5910. EQUIPMENT MAINTENANCE 5962 CONTRACT SERVICES 5965 TRAVEL MEETINGS & MEMBERSHIPS 5966 PUBLICATIONS & TRAINING SUB TOTAL EQUIPMENT OUTLAY: 8400 AUTOMOBILE 8500 NON -AUTOMOBILE SUB TOTAL CAPITAL OUTLAY: 9000 CAPITAL PROJECTS SUB TOTAL DEPARTMENT TOTAL: PRESENT REQUESTED YTD 06/30/04 BUDGET BUDGET $0 $172,894 $484,537 $0 $0 $0 $0 $0 $0 $0 $172,894 $484,537 $0 $12,139 $12,139 $0 $11,988 $28,860 $0 $972 $2,340 $0 $4,860 $11,700 $0 $810 $1,950 $0 $460 $460 $0 $0 $0 $0 $31,229 $57,449 $0 $2,000 $102,000 $0 $6,039 $6,039 $0 $1,500 $3,000 $0 $200,000 $3,500,000 $0 $10,000 $150,000 $0 $35,000 $765,000 $0 $1,000 $1,000 $0 $1,200 $1,200 $0 $5,000 $5,000 $0 $0 $20,000 $182;000 1$3,499,000 $0 $0. $0 $1,000 $2,500 $0 $464,739 $8,067,739 $0 $0 $0 $0 $0 $2,510,500 $0 $0 $2,510,500 $0 $0 $300,000 $500,000 $0 $300,000 $500,000. $0 $0 $968,862 $1.1,620,225 CITY OF VERNON LIGHT & POWER DEPARTMENT CONTRACT CHANGE ORDER NO. 01 SUPPLEMENT NO. SHEET 1 OF 1 SHEETS PROJECT: Malburg Generating Station Combined Cycle Power Plant 9/15/04 Professional Services Contract TO: THOMASON MECHANICAL CORPORATION VENDOR REQUESTED BY: City of Vernon You are hereby directed to make the herein described changes, or do the following described work not included in the Agreement as amended. CONTRACT EXTENSION— ADJUSTMENT IN COMPENSATION (IN ACCORDANCE WITH PARAGRAPH 2 AND PARAGRAPH 3 OF CONTRACT) 1) Increase price budget for extended period through November 15, 2005 to complete MGS commissioning $375,000.00 Except as specifically modified herein, all terms and conditions of the Contract are unmodified and remain in full force and effect, and apply to the extended time of performance, the additional work and additional costs as if those terms, services and costs were originally included in the Contract. Base Amount of Contract ................................. ... $ 560, 000.00_7 Amount of this Change Order ........................................... $ 375,000.00 Amount of Previous Change .00 Orders and Amendments Modified Contract Amount ................................ . ........... $ 935, 000.00 By reason of this order the time of Services extended to November 15, 2005 pursuant to this Change Order completion will be adjusted as follows: No. 1 % ^maws -Leo to Approved: Date: r 42Q44- Director Department We, the undersigned Vendor, have givetl careful consideration to the c ge proposed and hereby agree, if this proposal is approved that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefor the prices shown above. Accepted: Date: December Vendor: THOMASON MECHANICAL CORPORATION By: / Title: xe: v umee Approved by Finance Committee/City Council on: 12/27/05 (FC) Thomason= l .doc ENTEROFFICE . � E dr k ,AMEMORANDUM Light & Power Department DATE: January 19, 2005 TO: Bruce V. Malkenhorst, Jr., Acting City Clerk/Assistant City Attorney FROM: Gloria J. Or"o,ial Assistant to the City Administrator RE: Thomason Mechanical Corporation - Change Order #1 in the amount of $375,000.00 Dear Bruce: The above referenced Change Order to Thomason Mechanical's original agreement was approved on December 27, 2005. Submitted herewith for your records is a fully executed, duplicate original. I will be forwarding a fully executed duplicate original to Thomason Mechanical for their records. Please feel free to contact me if you should have any questions. thank you. /gjo c: A. Baldere Contract File INTEROFFICE ff CC i Q Malburg Generating Station v MEMORANDUM11 DATE: December 5, 2005 a A TO: Bruce V. Malkenhorst, Jr., Assistant City Attorney/Acting City Clerk FC FROM: Donal O'Callaghan, Director of Light and Power J b C SUBJECT: L&P — Thomason Mechanical, Inc. — Request for Change Order #1 - $375,000 Resolution 8536 between the City of Vernon and Thomason Mechanical, Inc. authorized a professional services contract for commissioning services at MGS in the amount of $560,000.00 for the period of 9/16/04 through 6/30/05. TMC continued to perform MGS commissioning activities through November I5, 2005. I request authorization to extend the authorized amount of PO# 9572 by $375,000.00, for a total of $935,000.00 for MGS commissioning activities. Approximately $51,000 of this cost is being back charged to Alstom. The account* for this charge is 055-100-9190-5480MALBMISC.M Please let me know if I can provide you with any additional information. DOCjm