Resolution No. 8743
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RESOLUTXON NO. 8743
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
THIRTEENTH 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,
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 January 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. 8613 approving an Eleventh Amendment
14 to the Contract for additional services; and
15 WHEREAS, on May 4, 2005, the City Council of the City of
16 Vernon adopted Resolution No. 8737 approving a Twelfth Amendment to
17 the Contract for contractual language modifications; and
18 WHEREAS, by letter dated May 11, 2005, Bruce V. Malkenhorst,
19 City Administrator/City Clerk, recommended that an amendment modifying
20 the Contract with Marelich for additional services in a not to exceed
21 sum of $512,239.00 be approved and executed; and
22 WHEREAS, the City Council of the City of Vernon has
23 determined that, pursuant to the provisions of subsection (a) of
24 Section 2.27 of the Vernon City Code, it is in the public interest and
25 necessity to enter into an amendment to the Contract with Marelich.
26 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
27 CITY OF VERNON AS FOLLOWS:
28 SECTION 1: The City Council of the City of Vernon hereby
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1 finds and determines that the recitals contained hereinabove are true
2 and correct.
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SECTION 2:
The City Council of the City of Vernon hereby
4 approves the Thirteenth Amendment to Contract for Procurement,
5 Construction, and Startup with Marelich, in substantially the same form
6 as the copy which is attached hereto as Exhibit A and incorporated by
7 reference.
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SECTION 3:
The City Council of the City of Vernon hereby
9 authorizes the Mayor to execute said Amendment for, and on behalf of,
10 the City of Vernon and the City Clerk is hereby authorized to attest
11 thereto.
SECTION 4:
The City Council of the City of Vernon hereby
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
19 certify to the passage of this resolution, and thereupon and
20 thereafter the same shall be in full force and effect.
21 APPROVED AND ADOPTED this 18th day of May, 2005.
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ATTEST:
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/ LEONIS. C.~ BURG, - ayor
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BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA
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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.
8743, 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 18,
2005, and thereafter was duly signed by the Mayor of the City of
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Vernon.
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BRUCE V.MALKENHORST, City Clerk
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EXHIBIT
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THIRTEENTH AMENDMENT
TO
CONTRACT FOR PROCUREMENT. CONSTRUCTION. AND STARTUP
This Thirteenth Amendment to Contract for Procurement, Construction, and Startup for
the Malburg Generating Station Project, Vernon, California (this "Amendment") is made as of
May 18,2005 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 Proc1.lfement,
Construction, and Startup for the Malburg Generating Station Project dated February 3, 2003, as
amended on 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, February 16, 2005 and May 4,2005 (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 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 60f 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 termsofthe 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
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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. Addition~l Services is $512,239.00 (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.
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5. Remainder of Agreement. Except as specifically modified herein, all terms and
conditions of the Agreement are unmodified and remain in full force and effect, and apply to the
Additional Work and Additional Costs as. if those services and costs were originally included in
the Agreement.
Executed as of the date first above written.
CITY OF VERNON
By:
Leonis C. Malburg, Mayor
ATTEST:
Bruce V. Malkenhorst, City Clerk
APPROVED AS TO FORM
Eric T. Fresch, City Attorney
CONTRACTOR
Marelich Mechanical Co., IIlc. dba University
Marelich Mechanical & Galliera, IIlc. dba Trico
Construction, a Joint Venture
By:
Signature
Date:
Name:
Title:
By:
Signature
Date:
Name:
Title:
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EXHIBIT A
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EXHmIT A
ADDITIONAL WORK
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Description of Work
Amount
099GR12004 Sales Tax Balance.
188D Rebar Surcharge for November 2004
205 Munster Filter House Repairs
206 Unloading of Alstom Repaired Piping
208 Receive and Re-Install Alstom Handrail
209 Welding of Structural members
215 Cut and Weld Nipple in Blowdown Pit
218 Removal Angles on HRSG
220 Correct Beam Interferences
222 ARC Gouging of Knee Brace
226 Correction to Half Plates
227 Change to Lube Oil Lines
229 Alstom Structural Changes
230 Add Channel to Top of Stair Tower
230A Modification to Alstom Supplied Handrail
236 Modify Dearator Monorail
238 CTG 1 & 2 Lube Oil Line Changes
241 Fabricate and Install Sheet Metal Corners
244 Supply and Fit Insulation Pins
245 Corrections to Handrail
. 449E CCE OT Week Ending 1/30 & 2/6
449F CCE OT Week Ending 2/13 & 2/20
450C UMMIT OT for 1/31/05 to 2/20/05
474C MSI Shop Overtime
483 Pipe Fabricator Acceleration
499 GE Inspect & Anglemyer Crane
Total
$ 139,592.00
$ 7,391.00
$ 28,381.00
$ 1,451.00
$ 1,415.00
$ 2,159.00
$ 6,696.00
$ 7,015.00
$ 9,926.00
$ 6,808.00
$ 11,604.00
$ 6,209.00
$ 5,615.00
$ 1,169.00
$ 6,039.00
$ 993.00
$ 3,244.00
$ 1,674.00
$ 9,523.00
$ 27,942.00
$ 11,054.00
$ 17,159.00
$ 100,331.00
$ 84,242.00
$ 10,832.00
$ 3,775.00
$ 512,239.00
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CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tern
WM. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Oerk
Chief Executive Officer of
Light & Power
ERIC T. FRESCH
City Attorney
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
June 14, 2005
JOHN KARNS
Karns & Karabian
General Counsel
KEVIN WILSON
Director of Community Services & Water
STEVEN E. PARKER
Fire Chief
SOL BENUDIZ
Police Chief
LEWIS J. POZZEBON
Director of Environmental Health
RORY BURNEIT
Gursey, Schneider & Co. LLP
City Accountant
University Marelich Mechanical
Attn: Jay W. McEntire, Sr. Vice President & General Manager
1000 N. Kraemer Place
Anaheim, CA 92806-2610
Re: Thirteenth Amendment to Contract for
Procurement, Construction and Startup
Dear Mr. McEntire:
Transmitted herewith is a fully executed amendment as referenced
above, approved by City Council on May 18, 2005, through Resolution
No. 8743.
If you have any questions regarding this matter, please call Mr. Eric
Fresch, at (323) 583-8811 ext. 175,
~~ry truly yours,
N~~n ~
Deputy City Clerk
NG/rcm
cc: Eric Fresch
Manuel Garcia
Jennifer McNabb
Gloria Orosco
"Exclusively Industrial"
THOMAS A. YBARRA
Mayor Pro- Tem
WM. "BILL" DAVIS
Councilman
JOHN KARNS
Karns & Karabian
General Counsel
CITY COUNCIL
LEONIS C. MALBURG
Mayor
KEVIN WILSON
Director of Community Services & Water
H. "LARRY" GONZALES
Councilman
STEVEN E. PARKER
Fire Chief
W. MICHAEL McCORMICK
Councilman
SOL BENUDIZ
Police Chief
BRUCE V. MALKENHORST
City Administrator / City Clerk
Chief Executive Officer of
Light & Power
ERIC T. FRESCH
City Attorney
LEWIS J. POZZEBON
Director of Environmental Health
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
RORY BURNETT
Gursey, Schneider & Co, LLP
City Accountant
May 11, 2005
City Council
City of Vernon
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Honorable Members:
Based on the recent review of the agreement with Marelich Mechanical
Company, Inc., dba University Marelich Mechanical & Galliera, Inc.,
dba Trico Construction ("UMM/T"), it is necessary that said agreement
be amended to include various change orders totaling $512,239.00, of
which $145,254.00 will be recovered from Alstom for back charges.
This has been reviewed by the City Attorney and it is hereby
recommended that the Thirteenth Amendment to the agreement with UMM/T
be approved and executed.
Very truly yours,
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Bruce V. Malkenhorst
City Administrator/City Clerk
BVM/ke
"Exclusively Industrial"