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Resolution No. 8743 .' " < ., 1 2 3 4 5 6 7 8 9 10 11 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 .' ~ 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 - 2 - 12 13 14 15 16 .17 18 " :. ~ 1 finds and determines that the recitals contained hereinabove are true 2 and correct. 3 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. 8 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. 22 23 24 25 26 27 28 ATTEST: . ~t~. / LEONIS. C.~ BURG, - ayor r ~... BRUCE V. MALKENHORST, City Clerk - 3 - 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 \ .. 1 STATE OF CALIFORNIA 2 ss COUNTY OF LOS ANGELES 3 4 5 6 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 7 8 9 10 11 12 13 (SEAL) Vernon. ~.~. BRUCE V.MALKENHORST, City Clerk - 4 - EXHIBIT A ~ 7 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 ;. ., , 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. III III III III III III III III III III III III III 2 ~ I,~ 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: 3 2 ' .. J . , . :. . or; EXHIBIT A , ;. "4 EXHmIT A ADDITIONAL WORK CE# 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 A-I 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 dOS ;1l (In} ~t I'} I y (\~~ ~~ 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, ~/~ Bruce V. Malkenhorst City Administrator/City Clerk BVM/ke "Exclusively Industrial"