Resolution No. 85491
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RESOLUTION NO. 8549
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
FOURTH AMENDMENT TO CONTRACT FOR PROCUREMENT,
CONSTRUCTION AND STARTUP BY AND BETWEEN THE CITY OF
VERNON AND MARELICH MECHANICAL CO., INC., DBA
UNIVERSITY MARELICH MECHANICAL & GALLIERA, INC.,
DBA TRICO CONSTRUCTION FOR THE MALBURG GENERATING
STATION PROJECT
WHEREAS, on January 22, 2003, the City Council of the City
of Vernon adopted Resolution No. 8115 approving a Contract for
Procurement, Construction and Startup (the "Contract") with Marelich
Mechanical Co., Inc., dba University Marelich Mechanical & Galliera,
Inc., dba Trico Construction, a Joint Venture, ("Marelich"); and
WHEREAS, on April 21, 2004, the City Council of the City of
Vernon adopted Resolution No. 8435 ratifying the approval of a First
Amendment to the Contract for additional services in the sum of
$3,009,756 and a Second Amendment to the Contract for additional
services in the sum of $1,891,491; and
WHEREAS, on August 4, 2004, the City Council of the City of
Vernon adopted Resolution No. 8510 approving a Third Amendment to the
Contract for additional services; and
WHEREAS, on October 6, 2004, the Finance Committee
considered the recommendation of Bruce V. Malkenhorst, the Director of
Finance, dated September 30, 2004, that an amendment to the Contract
with Marelich for additional services in the sum of $1,521,619.00 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
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necessity to enter into an amendment to the Contract with Marelich.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Fourth Amendment to Contract for Procurement,
Construction, and Startup with Marelich, 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 Amendment 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
Amendment to:
University Marelich Mechanical
Attn. Jay W. McEntire, Sr. Vice President & General Manager
1000 N. Kraemer Place
Anaheim, CA 92806-2610
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 6th day of October, 2004.
7LEONIS C. MALBURG,""Mayor
ATTEST:
BRUCE V. MALKENHORST, City Clerk
- 2 -
1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 8549, was duly adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Wednesday, October 6,
8 2004, and thereafter was duly signed by the Mayor of the City of
9 Vernon.
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BRUCE V. MALKENHORST, City Clerk
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13 (SEAL)
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EXHIBIT
VA&
FOURTH AMENDMENT
TO
CONTRACT FOR PROCUREMENT, CONSTRUCTION, AND STARTUP
This Fourth Amendment to Contract for Procurement, Construction, and Startup for the
Malburg Generating Station Project, Vernon, California (this "Amendment") is made as of
October 6, 2004 by and between The City of Vernon, a municipal corporation (the "City") and
Marelich Mechanical Co., Inc. dba University Marelich Mechanical & Galliera, Inc. dba Trico
Construction, a Joint Venture (the "Contractor"), and is made with reference to the following:
A. The City and the Contractor entered into that certain Contract for Procurement,
Construction, and Startup for the Malburg Generating Station Project dated February 3, 2003, as
amended on September 10, 2003, March 17, 2004 and August 4, 2004 (collectively, the
"Agreement"), pursuant to which the parties agreed that the Contractor would provide for the
procurement, construction and.start-up services for the City's development of a Combined Cycle
Power Plant (the "Project"), on the terms and conditions described in the Agreement.
B. The City and the Contractor have agreed that it would be in the best interest of the
Project for the Contractor to perform additional work and provide additional materials and
services in connection with the Project under the terms of the Agreement.
C. Paragraph 6 of the Agreement requires that changes to the Project requiring
expenditures in excess of $20,000 be accomplished by an Amendment to the Agreement. The
additional labor and materials required in connection with the Project will exceed $20,000.
Therefore, to comply with the terms of the Agreement, the City and the Contractor desire to enter
into this Amendment to amend the terms of the Agreement as set forth below. Each initially
capitalized term used in this Amendment without definition shall have the meaning ascribed to
such term in the Agreement.'
THEREFORE, for valuable consideration, the parties agree as follows:
1. Additional Services Required. The City and the Contractor acknowledge and
agree that the additional services described in Exhibit "A" to this Agreement, a copy of which is
attached hereto and incorporated herein by this reference (collectively, the "Additional
Services"), are required in connection with the Project. The Additional Services constitute work
that was not originally contemplated by the parties, and is now determined by the parties to be
necessary to the Project. This Amendment is entered into solely for the purpose of evidencing
the City's approval of the cost components of the items listed in Exhibit "A". The parties
specifically acknowledge and agree that this Amendment is not intended to and does not
evidence the City's approval or the Contractor's waiver or settlement of any reference to or
description of or claim in regard to a time delay or schedule impact that may be set forth in any
of the Contractor's cost estimates, whether or not listed in Exhibit "A", all of which are subject
to review and evaluation by the City. Contractor hereby waives any claim that the City's
execution of this Amendment or payment of the Additional Cost (as described below) constitutes
the City's express or implied agreement to any reference in any of the Contractor's cost
estimates related to time delays or schedule impacts.
2. Cost of Additional Services. The City and the Contractor agree that the total cost
for all labor and materials for the Additional Services is $1,521,619.00 (the "Additional Cost").
The Additional Cost is payable on the terms of the Agreement, following submission and
approval of documentation as required by the Agreement.
3. Terms of Additional Services. All Additional Services are to be provided in
accordance with the terms of the Agreement, are to meet the standards and specifications and
quality of work provisions set forth in the Agreement, and are to be covered by the same
warranties or guarantees, if any, that are set forth in the Agreement.
4. Approval by the City_. This Amendment shall be executed by a duly authorized
representative of the City following approval of the terms of this Amendment by the City in
accordance with City policies and procedures.
Oil
5. Remainder of Agreement. Except as specifically modified herein, all terms and
conditions of the Agreement are unmodified and remain in full force and effect, and apply to the
Additional Work and Additional Costs as if those services and costs were originally included in
the Agreement.
Executed as of the date first above written.
ATTEST:
Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM ,
Eric T. Fresch, City Attorney
Bv:
CITY OF VERNON
Leonis C. Malburg, Mayor
CONTRACTOR
Marelich Mechanical Co., Inc. dba University
Marelich Mechanical & Galliera, Inc. dba Trico
Construction, a Joint Venture
By:
Signature
Date:
Name:
Title:
By:
Signature
Date:
Name:
Title:
3
EXHIBIT
0
EXHIBIT A
ADDITIONAL WORK
CE# Description of Work
Amount
A
IPurchase of COV Gas Equipment
$55,735
9E
Isaies Tax February 1 - February 29
$5,449
9F
ISales Tax March 1 - March 31
$7,892
26 R1
Transportation of Gas Skid and Condenser from Soto Street to jobsite
$12,037
34A
Added Switch Gear vaults
$28,347
34B
Change to roadway profile
$292,230
35K
Provide Hach Panel System
$4,648
35L
Added Control Valve Cable
$14,432
36
Changes to Oily Water Separator Size
$5,536
51
Inventory of COV-supplied equipment July 03 - October 03
$336,607
52
Invento of COV-supplied equipment February 04
$8,492
52B
Inventory of COV-supplied equipment March 16, 2004 to March 18, 2004
$3,306
52C
Inventory of COV-supplied equipment March 2, 2004 to March 12, 2004
$18,829
68
Graqding to remove unforseen duct bank and foundation
$28,715
75
Stoppage of work by CBO/Stop Notice #2 9/15/03/NE Corner of Site
$43,835
77
Change of Compaction Requirements at HRSG pads
$21,381
80
Change of Compaction Requirements for balance of site (90% - 95%)
$33,111
82C
Survey of Remediation Trench
$2,875
91
Change to Piping Material Specification C10 & C11
$17,466
96D
Installation of Temporary Grading and Drainage Plan
$21,961
106
Change to Tubing Size from .049 to .065 per DCN 037
$10,415
109
Change to Structural Drawing per DCN 038/Civil Only
$14,222
112
Change to slope at PDCM
$g 972
123
Revise rebar details for the construction joints in the CTG and STG
Foundation per DCN 032
$551
128
Alstom Inlet Duct Banks delivered as Knock Down, not Modular Sections as
per bid docs
$250,000
130
Removal of Overflow Piping per DCN 066
$30,339
131
Additional Block Valves at Pump P1430 A/B Discharge
$3,517
132 lInstall
PWR to Internal Battery Chargers
$11,942
135 IShipping
of Alstom-Supplied Handrails for Repair
$13,269
A- I
EXHWi r A '
ADDITIONAL WORK
CE# Description of Work Amount
136
Additional Reinforcement @ HRSG Mat Foundation per DCN 019
$9,606
138
ITrench Plates at 50th Street Storage
$12,960
140
Change minimum concrete cover from 3" to 4" for duct banks
$12,870
148
Revise thickness of Concrete Grade Rings per DCN 026
$3,293
154
Raise Rebar Mat on Pad # 8 per DCNs 43, 51,63
$345
167
Changes to Raw Water Tank Foundation per DCN 065
1
$19,308
177
Change to Water Stop Location on Pads #68 & 74
$3,677
182A R1
Erection of HRSG Pedestals
$3,794
185 B
Base for Access Road at Station A / Site Watering
$3,855
185C
Maintain Access Road
$3,676
186
Extra Survey for Pad Certifications
$5,713
186A
jAdded Survey for Pad Certifications
$2,007
186E
dded Survey at Blowdown Pits -
$931
186C[Added
Survey for Pad Certifications
$2,229
188
Rebar cost escalation for December 2003 and January 2004
$7,512
189
Recompact and Retest Condensate Pad and Ammonia Sump
$1,824
200
Repair to various HRSG Welds
$10,191
201
Repair to various HRSG Welds
$882
202 IRepair
to various HRSG Welds
$7,750
202A R1 IRepair
to various HRSG Welds
$24,992
203 R1 lWeld
Repairs to HRSG Inlet Duct
$26,582
203A
Weld Repairs to HRSG Inlet Duct
$18,266
203E
Weld Repairs to HRSG Inlet Duct
$6,553
256
Dewatering of HRSG Mats
$1,542
259
Change to Switch Gear Foundation Pad Per DCN 076
$4,248
270
Move Drainage Swale and add 4 direction changes
$1,517
276
Connect Temp Power to CTG for Charges and Heaters
$12,152
285
Extended Warranty of Alfa Heat Exchangers
$3,149
286
As -Built HRSG Pads
$1,474
292
Re -Detail Rebar Clearance on Hairpins per DCN 072
- $146
293
Extend HRSG Pad per DCN 081
$2,464
$1,521,619
A-2
SUPPORTING
DOCUMENTS
FOURTH AMENDMENT
TO
CONTRACT FOR PROCUREMENT CONSTRUCTION AND STARTUP
This Fourth Amendment to Contract for Procurement, Construction, and Startup for the
Malburg Generating Station Project, Vernon, California (this "Amendment") is made as of
October 6, 2004 by and between The City of Vernon, a municipal corporation (the "City") and
Marelich Mechanical Co., Inc. dba University Marelich Mechanical & Galliera, Inc. dba Trico
Construction, a Joint Venture (the "Contractor"), and is made with reference to the following:
A. The City and the Contractor entered into that certain Contract for Procurement,
Construction, and Startup for the Malburg Generating Station Project dated February 3, 2003, as
amended on September 10, 2003, March 17, 2004 and August 4, 2004 (collectively, the
"Agreement"), pursuant to which the parties agreed that the Contractor would provide for the
procurement, construction and,start-up services for the City's development of a Combined Cycle
Power Plant (the "Project"), on the terms and conditions described in the Agreement.
B. The City and the Contractor have agreed that it would be in the best interest of the
Project for the Contractor to perform additional work and provide additional materials and
services in connection with the Project under the terms of the Agreement.
C. Paragraph 6 of the Agreement requires that changes to the Project requiring
expenditures in excess of $20,000 be accomplished by an Amendment to the Agreement. The
additional labor and materials required in connection with the Project will exceed $20,000.
Therefore, to comply with the terms of the Agreement, the City and the Contractor desire to enter
into this Amendment to amend the terms of the Agreement as set forth below. Each initially
capitalized term used in this Amendment without definition shall have the meaning ascribed to
such term in the Agreement.
THEREFORE, for valuable consideration, the parties agree as follows:
1. Additional Services Required The City and the Contractor acknowledge and
agree that the additional services described in Exhibit "A" to this Agreement, a copy of which is
attached hereto and incorporated herein by this reference (collectively, the "Additional
Services"), are required in connection with the Project. The Additional Services constitute work
that was not originally contemplated by the parties, and is now determined by the parties to be
necessary to the Project. This Amendment is entered into solely for the purpose of evidencing
the City's approval of the cost components of the items listed in Exhibit "A". The parties
specifically acknowledge and agree that this Amendment is not intended to and does not
evidence the City's approval or the Contractor's waiver or settlement of any reference to or
description of or claim in regard to a time delay or schedule impact that may be set forth in any
of the Contractor's cost estimates, whether or not listed in Exhibit "A", all of which are subject
to review and evaluation by the City. Contractor hereby waives any claim that the City's
execution of this Amendment or payment of the Additional Cost (as described below) constitutes
the City's express or implied agreement to any reference in any of the Contractor's cost
estimates related to time delays or schedule impacts.
2. Cost of Additional Services. The City and the Contractor agree that the total cost
for all labor and materials for the Additional Services is $1,521,619.00 (the "Additional Cost").
The Additional Cost is payable on the terms of the Agreement, following submission and
approval of documentation as required by the Agreement.
3. Terms of Additional Services. All Additional Services are to be provided in
accordance with the terms of the Agreement, are to meet the standards and specifications and
quality of work provisions set forth in the Agreement, and are to be covered by the same
warranties or guarantees, if any, that are set forth in the Agreement.
4. Approval by the City. This Amendment shall be executed by a duly authorized
representative of the City following approval of the terms of this Amendment by the City in
accordance with City policies and procedures.
2
5 Remainder of A cement. Except as specifically modified herein, all terms and
conditions of the Agreement are unmodified and remain in full force and effect, and apply to the
Additional Work and Additional Costs as if those services and costs were originally included in
the Agreement.
Executed as of the date first above written.
CITY OF VERNON
By:
ATTEST: Leonis C. Malburg, Mayor
Bntce .'MalkenhOrst, City Clerk
APPROVED 4S TO FORM
Eric T. Fresch, City Attorney
CONTRACTOR
Marehoh Mechanical Co., Inc. dba University
Mamlich Mechanical & Galliera, Inc, dba Trico
Consttuctio a Joint
By;
signs
Date:
-Name-, V A Sid t� St-t�l-En{
Title: &eka — tAckr
By:
Signature
Date:
-
Name:-..
Title.
3
' 'n
5. Remainder of Agreement. Except as specifically modified herein, all terms and
conditions of the Agreement are unmodified and remain in full force and effect, and apply to the
Additional Work and Additional Costs as if those services and costs were originally included in
the Agreement.
Executed as of the date first above written.
ATTEST:
Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM
Eric T. Fresc , City Attorney
CITY OF VERNON
By:
J—ep nis C. Malburg, ayor
CONTRACTOR
Marelich Mechanical Co., Inc. dba University
Marelich Mechanical & Galliera, Inc. dba Trico
Constru on, a Joint Venture
By:
i e
Date:.. p
Name:
Title:
By:
Sure — `�
Date: !" o - & . ® T
Name:j ID v.& C.aejcA-
Title: `rn �9
3
• EXHIBIT A
EXHIBIT A
ADDITIONAL WORK
CE# Description of Work Amount
A
IPurchase of COV Gas Equipment
$55,735
9E
Sales Tax February 1 - February 29
$5,449
9F
Sales Tax March 1 - March 31
$7,892
Transportation of Gas Skid and Condenser from Soto Street to jobsite
26 R1
$12,037
34A
dded Switch Gear vaults
$28,347
34B
Change to roadway profile
$292,230
35K
Provide Hach Panel System
$4,648
35L
Added Control Valve Cable
$14,432
36
Changes to Oily Water Separator Size
$5,536
Inventory of COV-supplied equipment July 03 - October 03
51
$336,607
52
Inventory of COV-supplied equipment February 04
$8,492
Inventory of COV-supplied equipment March 16, 2004 to March 18, 2004
526
$3,306
Inventory of COV-supplied equipment March 2, 2004 to March 12, 2004
52C
$18,829
Graqding to remove unforseen duct bank and foundation
68
$28,715
Stoppage of work by CBO/Stop Notice #2 9/15/03/NE Comer of Site
75
$43,835
Change of Compaction Requirements at HRSG pads
77
$21,381
Change of Compaction Requirements for balance of site (90% - 95%)
80
$33,111
82C
Survey of Remediation Trench
$2,875
91
Change to Piping Material Specification C10 & C11
$17,466
96D
Installation of Temporary Grading and Drainage Plan
$21,961
Change to Tubing Size from .049 to .065 per DCN 037
106
$10,415
Change to Structural Drawing per DCN 038/Civil Only
109
$14,222
112
Change to slope at PDCM
$8,972
Revise rebar details for the construction joints in the CTG and STG
123
Foundation per DCN 032
$551
Alstom Inlet Duct Banks delivered as Knock Down, not Modular Sections as
128
per bid docs
$250,000
130
Removal of Overflow Piping per DCN 066
$30,339
Additional Block Valves at Pump P1430 A/B Discharge
131
$3,517
132
Install PWR to Internal Battery Chargers
$11,942
135
Shipping of Alstom-Supplied Handrails for Repair
$13.269
A-1