Resolution No. 8737
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RESOLUTION NO. 8737
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY O~
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
TWELFTH 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
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WHEREAS, on January 22, 2003, the City Council of the City
of Vernon adopted Resolution No. Bl15 approving a Contract for
Procurement, Construction and Startup (the "Contract") with Marelich
Mechanical Co., Inc., dba University Marelich Mechanical & Galliera,
12 Inc., dba Trico Construction, a Joint Venture, ("Marelich"); and
13 WHEREAS, .on April 21, 2004, the City Council of the City of
14 Vernon adopted Resolution No. 8435 ratifying the approval of a First
15 and Second Amendment to the Contract for additional services; and
16 WHEREAS, on August 4, 2004, the City Council of the City of
17 Vernon adopted Resolution No. 8510 approving a Third Amendment to the
18 Contract for additional services; and
19 WHEREAS, on October 6, 2004, the City Council of the City of
20 Vernon adopted Resolution No. 8549 approving a Fourth Amendment to the
21 Contract for additional services; and
22 WHEREAS, on November 3, 2004, the City Council of the City
23 of Vernon adopted Resolution No. 8584 approving a Fifth Amendment to
24 the Contract for additional services; and
25 WHEREAS, on November 17, 2004, the City Council of the City
26 of Vernon adopted Resolution No. 8600 approving a Sixth Amendment to
27 the Contract for contractual language modifications; and
28 WHEREAS, on December 1, 2004, the City Council of the City
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1 of Vernon adopted Resolution No. 8608 approving a Seventh Amendment to
2 the Contract for additional services; and
3 WHEREAS, on December 15, 2004, the City Council of the City
4 of Vernon adopted Resolution No. 8628 approving an Eighth Amendment to
5 the Contract for additional services; and
6 WHEREAS, on January 5, 2005, the City Council of the City of
7 Vernon adopted Resolution No. 8630 approving a Ninth Amendment to the
8 Contract for additional services; and
9 WHEREAS, on Janua~y 19, 2005, the City Council of the City
10 of Vernon adopted Resolution No. 8640 approving a Tenth Amendment to
11 the Contract for additional services; and
12 WHEREAS, on February 16, 2005, the City Council of the City
13 of Vernon adopted Resolution No. 8673 approving an Eleventh Amendment
14 to the Contract for additional services; and
15 WHEREAS, by letter dated April 28, 2005, Bruce V.
16 Malkenhorst, City Administrator/City Clerk, recommended that an
17 amendment modifying certain sections of the Contract with Marelich be
18 approved and executed; and
19 WHEREAS, the City Council of the City of Vernon has
20 determined that, pursuant to the provisions of subsection (a) of
21 Section 2.27 of the Vernon City Code, it is in the public interest and
22 necessity to enter into an amendment to the Contract with Marelich
23 relating to cost savings.
24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
25 CITY OF VERNON AS FOLLOWS:
26 SECTION 1: The City Council of the City of Vernon hereby
27 finds and determines that the recitals contained hereinabove are true
28 and correct.
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SECTION 2:
The City Council of the City of Vernon hereby
2 approves the Twelfth Amendment to Contract for Procurement,
3 Construction, and Startup with Marelich, in substantially the same form
4 as the copy which is attached hereto as Exhibit A and incorporated by
5 reference.
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SECTION 3:
The City Council of the City of Vernon hereby
7 authorizes the Mayor to execute said Amendment for, and on behalf of,
8 the City of Vernon and the City Clerk is hereby authorized to attest
9 thereto.
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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 Mare1ich 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
17 certify to the passage of this resolution, and thereupon and
18 thereafter the same shall be in full force and effect.
19 APPROVED AND ADOPTED this 4th day of May, 2005.
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~. ~LEONIS C. MA URG, M yor
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ATT~/~~
BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8737, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday, May 4,
thereafter was duly signed by the Mayor of the City of
8 2005, and
9 Vernon.
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EXHIBIT
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TWELFTH AMENDMENT
TO
CONTRACT FOR PROCUREMENT. CONSTRUCTION. AND STARTUP
This Twelfth Amendment to Contract for Procurement, Construction, and Startup forthe
Malburg Generating Station Project, Vernon, California (this "Amendment") is made as of
May 4,2005 by and between the City ofVemon, 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 StartuR for the Malburg Generating Station Project dated February 3,2003, as
amended 011 September 10, 2003, March 17,2004, August 4,2004, October 6,2004,
November 3, 2004, November 27,2004, December 1,2004, December 15,2004, January 5,
2005, January 19,2005 and February 16,2005 (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 to delete any provision of a cost savings for the Contractor.
C. Paragraph 32 of the Agreement requires that modifications to the Agreement be
accomplished by written consent of both parties to the Agreement. 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. Modification to Section 3.A. (Contract Price). The City and the Contractor
acknowledge and agree that Section 3.A. (Contract Price) to the Agreement be amended to delete
in its entirety the following language comprising the second paragraph of Section 3.A.:
"The Parties also agree that if Contractor is able to perform the
Work for less than the Contract Price, including approved
changes to the Contract Price, the Parties will split the savings
(Contract Price - costs and fees) 60% to the City and 40% to
Contractor. "
The deletion of the language is now determined by the parties to be necessary to the
Project. This Ame>>dment is entered into solely for the purpose of evidencing the parties'
agreement.
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2. 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.
3. Remainder of Agreement. Except as specifically modified her~in, all terms and
conditions of the Agreement are unmodified and remain in full force and effect, and apply to this
amendment as if those provisions were originally included in the Agreement.
Executed as of the date first above written.
CITY OF VERNON
By:
Leonis C. Malburg, Mayor
ATTEST:
Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM
Eric T. Fresch, City Attorney
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:
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