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HomeMy WebLinkAbout1995-150ORDINANCE NO. 95-' ,, v AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the following competitive bids for the o construction f public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 1781 SIEMENS POWER CORPORATION $398,822.00 SECTION II. That the acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION III. That the City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION IV. That upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION V. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,1995. CASTLEBERRY, ATTEST: JENNIFER WALTERS, CITY SECRETARY HERBERT L. PROUTY, CITY ATTORNEY BY: DATE: AUGUST 15, 1995 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: BID # 1781 - TURBINE GENERATOR INSPECTION RECOMMENDATION: We recommend this bid be awarded to the lowest bidder, Siemens Power Corporation, in the amount of $398, 822.00. SUMMARY: This bid is for the technical services and material to perform scheduled maintenance on Denton's Spencer Plant unit #5 turbine generator. Turbine/generator dismantle inspections are performed on a periodic basis to maintain integrity and efficiency of machine operation. A complete disassembly of the steam path and generator are typically performed on a 5-6 year, 40,000 hour interval dependent on service. Unit Five was last inspected in the fall of 1988, and was returned to service in March, 1989. Operation since that time has totaled 57, 000 equivalent hours. Equivalent hours of operation take into account thermal operating cycles inherent in peaking service operation typical of Denton steam units. Other non -routine factors are involved in the work scope for this particular dismantle inspection. General Electric has recommended through Technical Information Letters (TIL's) that the 1st stage nozzle and retaining rings supplied with this unit are subject to failure and should be replaced. The scope of supply for this outage includes those items and funding for anticipated but unknown repairs to steam path components typically encountered during turbine repair. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Electric Utility Department, Electric Production Department. FISCAL IMPACT: Option 1: General Electric was the only supplier capable of responding to the work scope as specified. Specifically, GE capabilities include: technical service; new 1st stage nozzle supply and installation; new retaining ring supply and installation. Firm pricing for this scope totaled $670, 592. An additional $50, 000 for contingent repairs would increase the purchase order amount to $720,592. Option 2: Purchase of a new nozzle from GE, and utilizing an alternate supplier (Siemens) for technical service and retaining rings, would result in work scope pricing of $602, 307. With contingent repairs of $50, 000, the order amounts would total $652,307. Alternate proposals have been received from MD&A and Siemens to repair rather than replace the 1st stage nozzle. MD&A did not furnish pricing for retaining ring supply. Option 3: Utilizing the repair method rather than replacement for the 1st stage nozzle, would result in considerable savings. Siemens offers the capability for this repair scope, supply of the retaining rings and technical service. Contingent repairs and material supply for this option are estimated at an additional $100,000, due in part to unknown costs associated with removal and replacement of existing nozzle (bolting, caulking, austenitic ring, etc) . These costs have been assumed in the GE new nozzle quotation. The purchase order for this work scope options totals $398,822, amounting to savings of $253,485 over option 2 and $321,770 over option 1. Option 3 offers the lowest cost alternative to the planned work scope assuming that the repaired 1st stage nozzle is an acceptable compromise to new replacement. Our insurance carrier has been contacted regarding this matter and has responded with authorization to proceed with repair as an alternative to the OEM TIL. The purchase recommendation is based on low evaluated bid allowing repair of the 1st stage nozzle as an acceptable alternative to replacement. Funds are available in the 1994/95 budget for maintenance of generating equipment; Account Number 610-101-1011-5130. peecttfully submitted: 4 Lloyd V . Harrell City Manager Approved: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent 620.AGENDA CONTRACT AGREEMENT STATE OF TEXAS COUNTY OF DENTON § THIS AGREEMENT, made and entered into this 1_ 5day of AUGUST A.D., 19_9S , by and between CITY OF DENTON of the County of DENTON and State of Texas, acting through LLOYD v. HARRELL thereunto duly authorized so to do, hereinafter termed "OWNER," and SIEMENS POWER CORPORATION 1040 SOUTH 70TH STREET MILWAUKEE, WI 53214 of the City of MILWAUKEE , County of MILWAUKEE and State of WISCONSIN hereinafter termed "CONTRACTOR." WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by OWNER, and under the conditions expressed in the bonds attached hereto, CONTRACTOR hereby agrees with OWNER to commence and complete performance of the work specified below: BID # 17RI - TURBINE GENERATOR INSPECTION in the amount of g3 s s , 00 and all extra work in connection therewith, under the terms as stated in the General Conditions of the agreement; and at his (or their) own proper cost and expense to furnish all materials, supplies, machinery, equipment, tools, superintendence, labor, insurance, and other accessories and services necessary to complete the work specified above, in accordance with the conditions and prices stated in the Proposal attached hereto, and in accordance with all the General Conditions of the Agreement, the Special Conditions, the Notice to Bidders (Advertisement for Bids), Instructions to Bidders, and the Performance and Payment Bonds, all attached hereto, and in accordance with the plans, which includes all maps, plats, CA - 1 blueprints, and other drawings and printed or written explanatory matter thereof, and the Specifications therefore, as prepared by ELECTRIC PRODUCTION DEPARTMENT all of which are made a part hereof and collectively evidence and constitute the entire contract. Independent Status It is mutually understood and agreed by and between City and Contractor that Contractor is an independent contractor and shall not be deemed to be or considered an employee of the City of Denton, Texas, for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits, worker's compensation, or any other City employee benefit. City shall not have supervision and control of Contractor or any employee of Contractor, and it is expressly understood that Contractor shall perform the services hereunder according to the attached specifications at the general direction of the City Manager of the City of Denton, Texas, or his designee under this agreement. Indemnification Contractor shall and does hereby agree to indemnify and hold harmless the City of Denton from any and all damages, loss, or liability of any kind whatsoever, by reason of injury to property or third persons occasioned by any error, omission or negligent act of Contractor, its officers, agents, employees, invitees, and other persons for whom it is legally liable, with regard to the performance of this Agreement, and Contractor will, at its cost and expense, defend and protect the City of Denton against any and all such claims and demands. Choice of Law and Venue This agreement shall be governed by the law of the State of Texas and venue for its construction and enforcement shall lie in the courts of Denton County, Texas. The CONTRACTOR hereby agrees to commence work on or after the date established for the start of work as set forth in written notice to commence work and complete all work within the time stated in the Proposal, subject to such extensions of time as are provided by the General and Special Conditions. The OWNER agrees to pay the CONTRACTOR in current funds the price or prices shown in the Proposal, which forms a part of this contract, such payments to be subject to the General and Special Conditions of the Contract. CA - 2 IN WITNESS WHEREOF, the parties of these presents have executed this agreement in the year and day first above written. ATTEST: :A - 3 SIEMENS POWER CORPORATION CONTRACTOR 1040 S. 70th St Milwaukee WI 53214 /` MAILING ADDRESS 414/475-2298 PHONE NUMBER 414/475-2173 FAX NUMBER BY i _ V& TITLE Vice -President Turbine Services Pritam Bhavnani PRINTED NAME (SEAL) -A (Fe vERN/V* 7aer1J' ,&4d ip.r !✓E�@°' AvrT4WAAy.O tEEo -e.0 dw cwwe fAK�3�s�s� ✓/.,r Tivr�.vl �.... PAO 412.t919i CITY OF DENTON INSURANCE REQUIREMENTS FOR CONTRACTORS Bidder's attention is directed to the insurance requirements below. It is highly recommended that bidders confer with their respective insurance carriers or brokers to determine in advance of Bid submission the availability of insurance certificates and endorsements as prescribed and provided herein. If an apparent low bidder fails to comply strictly with the insurance requirements, that bidder may be disqualified from award of the contract. Upon bid award, all insurance requirements shall become contractual obligations which the successful bidder shall have a duty to maintain throughout the course of this contract. STANDARD PROVISIONS: Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall provide and maintain until the contracted work has been completed and accepted by the City of Denton, Owner, the minimum insurarfee coverage as indicated hereinafter. As soon as practicable after notification of bid award, Contractor shall file with the Purchasing Department satisfactory certificates of insurance, containing the bid number and title of the project. Contractor may, upon written request to the Purchasing Department, ask for clarification of any insurance requirements at any time; however, Contractors are strongly advised to make such requests prior to bid opening, since the insurance requirements may not be modified or waived after bid opening unless a written exception has been submitted with the bid. Contractor shall not commence any work or deliver any materiauntil he or nod byetreceives City of Dentation approved, that the contract has been accepted, 9 All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specifications, and shall be maintained in compliance with these general specifications throughout the duration of the Contract, or longer, if so noted: • Each policy shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least A . • Any deductibles or self -insured retentions shall be declared in the bid proposal. If requested by the City, the insurer shall reduce or eliminate such deductibles or self -insured retentions with respect to the City, its AFF MAI REVISED 10/12/94 Insurance Requirements Page 2 officials, agents, employees and volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. • Liability policies shall be endorsed to provide the following: • • Name as additional insured the City of Denton, its Officials, Agents, Employees and volunteers. • • That such insurance is primary to any other insurance available to the additional insured with respect to claims covered under the policy and that this insurance applies separately to each insured against whom claim is made or suit is brought. The inclusion of more than one insured shall not operate to increase the insurer's limit of liability. • All policies shall be endorsed to provide thirty(30) days prior written notice of cancellation, non -renewal or reduction in coverage. • Should any of the required insurance be provided under a claims -made form, Contractor shall maintain such coverage continuously throughout the term of this contract and, without lapse, for a period of three years beyond the contract expiration, such that occurrences arising during the contract term which give rise to claims made after expiration of the contract shall be covered. • Should any of the required insurance be provided under a form of coverage that includes a general annual aggregate limit providing for claims investigation or legal defense costs to be included in the general annual aggregate limit, the contractor shall either double the occurrence limits or obtain Owners and Contractors Protective Liability Insurance. • Should any required insurance lapse during the contract term, requests for payments originating after such lapse shall not be processed until the City receives satisfactory evidence of reinstated coverage as required by this contract, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this agreement effective on the date of the lapse. AFF00Rn1 REVISED 10/12/94 Insurance Requirements Page 3 SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS: All insurance policies proposed or obtained in satisfaction of this Contract shall additionally comply with the following marked specifications, and shall be maintained in compliance with these additional specifications throughout the duration of the Contract, or longer, if so noted: [ I A. General Liability Insurance: General Liability insurance with combined single limits of not less than _ 2, 000, 000. 00 shall be provided and maintained by the contractor. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. If the Commercial General Liability form (ISO Form CG;;'0001 current edition) is used: • Coverage A shall include premises, operations, products, and completed operations, independent contractors, contractual liability covering this contract and broad form property damage coverage. • Coverage B shall include personal injury. • Coverage C, medical payments, is not required. If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and ISO Form GL 0404) is used, it shall include at least: • Bodily injury and Property Damage Liability for premises, operations, products and completed operations, independent contractors and property damage resulting from explosion, collapse or underground (XCU) exposures. • Broad form contractual liability (preferably by endorsement) covering this contract, personal injury liability and broad form property damage liability. AFrOODAI REVISED 10/12/94 Insurance Requirements Page 4 [X] Automobile Liability Insurance: Contractor shall provide Commercial Automobile Liability insurance with Combined Single Limits (CSL) of not less than 500,000.00 either in a single policy or in a combination of basic and umbrella or excess policies. The policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction with this contract. Satisfaction of the above requirement shall be in the form of a policy endorsement for: • any auto, or • all owned, hired and non -owned autos. PX] Workers Compensation Insurance Contractor shall purchase and maintain Worker's Compensation insurance which, in addition to meeting the minimum statutory requirements for issuance of such insurance, has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each employee, and a $500,000 policy limit for occupational disease. The City need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. For building or construction projects, the Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096 of the Texas Labor Code and rule 28TAC 1 10.1 10 of the Texas Worker's Compensation Commission (TWCC). [ ] Owner's and Contractor's Protective Liability Insurance The Contractor shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an Owner's and Contractor's Protective Liability insurance policy naming the City as insured for property damage and bodily injury which may arise in the prosecution of the work or contractor's operations under this contract. Coverage shall be on an AFFOORAI REVISED 10/12/94 Insurance Requirements Page 5 "occurrence" basis, and the policy shall be issued by company that carries the contractor's liability insurance at least combined bodily injury and occurrence with a aggregate. [ 1 Fire Damage Legal Liability Insurance the same insurance Policy limits will be property damage per Coverage is required if Broad form General Liability is not provided or is unavailable to the contractor or if a contractor leases or rents a portion of a City building. Limits of not less than each occurrence are required. [ 1 Professional Liability Insurance Professional liability insurance with limits not less than ,` per claim with respect to negligent acts, errors or omissions in connection with professional services is required under this Agreement. [ 1 Builders' Risk Insurance Builders' Risk Insurance, on an All -Risk form for 100% of the completed value shall be provided. Such policy shall include as "Named Insured" the City of Denton and all subcontractors as their interests may appear. [ 1 Additional Insurance Other insurance may be required on an individual basis for extra hazardous contracts and specific service agreements. If such additional insurance is required for a specific contract, that requirement will be described in the "Specific Conditions" of the contract specifications. AFFOORAI REVISED 10/12/94 Insurance Requirements Page 6 ATTACHMENT 1 [X] Worker's Compensation Coverage for Building or Construction Projects for Governmental Entities A. Definitions: Certificate of coverage ("certificate") -A copy of a certificate of insurance, a certificate of authority to self -insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the project. Duration of the project - includes the time from the beginn{hg of the work on the project until the contractor's/person's work on the project has been completed and accepted by the governmental entity. Persons providing services on the project ("subcontractor" in §406.096) - includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner -operators, employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any overage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.01 1(44) for all employees of the contractor providing services on the project, for the duration of the project. AFFoonnl REVISED 10/12/94 Insurance Requirements Page 7 C. The Contractor must provide a certificate of coverage to the governmental entity prior to being awarded the contract. D. If the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project, the contractor must, prior to the end of the coverage period, file a new certificate of coverage with the governmental entity showing that coverage has been extended. E. The contractor shall obtain from each person providing services on a project, and provide to the governmental entity: (1) a certificate of coverage, prior to that person beginning work on the project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing,,services on the project; and (2) no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project. F. The contractor shall retain all required certificates of coverage for the duration of the project and for one year thereafter. G. The contractor shall notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. H. The contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. AFFOOBAI REVISED 10/12/94 Insurance Requirements Page 8 The contractor shall contractually require each person with whom it contracts to provide services on a project, to: (1) provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.01 1(44) for all of its employees providing services on the project, for the duration of the project; (2) provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project; (3) provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage,'if the coverage period shown on the current certificate of coverage ends during the duration of the project; (4) obtain from each other person with whom it contracts, and provide to the contractor: (a) a certificate of coverage, prior to the other person beginning work on the project; and (b) a new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project; (5) retain all required certificates of coverage on file for the duration of the project and for one year thereafter; (6) notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and AFFOOBA 1 REVISED 10/12/94 Insurance Requirements Page 9 (7) contractually require each person with whom it contracts, to perform as required by paragraphs (1) - (7), with the certificates of coverage to be provided to the person for whom they are providing services. J. By signing this contract or providing or causing to be provided a certificate of coverage, the contractor is representing to the governmental entity that all employees of the contractor who will provide services on the project will be covered by workers' compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self -insured, with the commission's Division of Self -Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The contractor's failure to comply with any of these provisions is.a breach of contract by the contractor which entitles the governmental entity to declare the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmental entity. nFFOORAI REVISED 10/12/94 BID NUMBER 1781 BID PROPOSALS Page 2 of Z1 ITEM DILSMIPTION OUAN. PRICE AMOUNT B.1 TECHNICAL SERVICE FEES A. Cost per five day week for the seven week outage 7 $6040.00 $42,280.0( duration B. Cost per sixth day if additional 1 $1350.00 $1350.00 C. Cost per day beyond seventh week if additional 1 $ SchedulE $ B D. Cost for report and docuinentation if additional 1 $2000.00 $2000.00 B.2 RETAINING RINGS A. Cost per set of rings and installation material 1 $110500. Q 110500.1 B. Cost per set of rings to remove and install 1 $26000.0 $ 26000.01 B.3 FIRST STAGE'NOZZLE A. Cost per nozzle assembly and installation material 1 ------ $ ------ $ B. Cost to remove and install nozzle assembly i $8851.00 $ 8851.00 B.4 GENERATOR TESTS (ADDENDUM I1) A. Cost per OEM equivalent generator tests 1 $,8800.0 $ 8800.00 C.1 PRICING ALTERNATIVE - Furnish pricing applicable to pac age supp y of: A Technical Service see Schedule B "Alternative Prici q" 1 $ $ B Retaining Rings furnished and installed 1 $ $ C. 1st Stage N6zzle furnished and installed 1 $ $ D Generator Testing i $ $ SUBMITTALS MUST ACCOMPANY.THIS BID PER SECTION-JV-: ;T. PL ASH USE THIS ADDENDUM #1 FORM TO SUBMIT YOUR BID PRO OSAL TOTALS We quota the above f.o.b. Denton. Texas. Shipment can be made days from receipt of order. Terms net union otherwise indicated. In submitting the above bid, the vendor agrees that socMurm of any or all bid items by tht City of Denton, Texas within a reasonable period of time constkuss a contract. 1040 S. 70th Street ►.rube Addrou Milwaukee, WI 53214 city state sis 414/475-2298 Siemens Power Corporation ayn.wr. Project Engineer T4140ane TItN Schedule B Exceptions and Clarifications Technical Service Fees The technical service fee for work performed past the seventh week are as follows: Monday through Friday $1,110.00 per day Saturday $1,470.00 per day Sunday and Holidays $1,920.00 per day Note: Any Portion of a day worked will be prorated. 1st Stage Nozzle Assembiv The proposed prices offered does not include destructive removal of nozzle assembly bolting. Replacement material or parts, as required, to install the nozzle is to be supplied by the Customer. New bolting can be quoted upon request. The steam turbine work schedule supplied with this proposal does not reflect the work on the nozzle assembly. To remove the old nozzle plate and install new will not impact the final completion date requested. Performance of the partition repairs will not impact the final completion date requested. Schedules reflecting the alternative options can be supplied upon request. Retaining Rings The work requested for the generator rotor and retaining rings has been priced to be performed in our Milwaukee, Wisconsin repair facility. Transportation is not included in the price. Transportation can be invoiced at cost should the City of Denton require this service. We estimate the round trip transportation cost to be approximately $9,000. In the event Siemens Power Corporation is awarded the portion of the specification for provision of retaining rings, the City of Denton will have to make the old retaining rings available for dimensional inspection in our Milwaukee repair facility. Manufacturing of replacement rings will take place after dimensional inspection is complete. Generator Testing The prices proposed are based on Siemens Power Corporation having an established Jobsite presence for the major portion of the workscope. The generator price proposed does not include any electrical disconnection's or cleaning. If work is required in addition to the actual testing it will be performed on a time and material basis. Generator (Stator) testing proposed is in accordance with General Electric TIL 1154-3 and GEK 103566 with several exceptions. The exceptions are: • Siemens Power Corporation recommends a stepped d.c. overvoltage test to 150% of rated voltage instead of a hi -pot. Our test scope includes a stepped d.c. overvoltage test. • EL CID testing, recommended by General Electric is considered an optional test by Siemens Power Corporation. We can perform an EL CID test for a firm price of $7, 500.00. • We have not included any tests identified by General Electric as being "Optional or Diagnostic" in nature. Pricing Afternative Should the City of Denton award Siemens Power Corporation with a contract to perform the technical services, retaining ring services and generator tests, we will offer a 2% reduction in the total cost of this contract. MaoilLps Power Corporation takes exception to the "General Conditions of the Agree " and "the Special Conditions" referenced on the Contract Agreem rm pages CA 1 A-2. At this time, we are not aware of what is includ ese conditions. The sa true for the statement "Proposal attache o" referenced on the bottom of page CA- . are not aware of the "Propos " Siemens Power Corporation would offer o lowing changes to the Indemnification section of the Contract ent Form. Delete "Property or persons" and replac `third persons and their property". 'This indemnification shall become ineffective 18 months the date the Contractor ships the goods or completes the services required by th ract whichever date is later, except that claims made against the Contractor un this indemnity during that 18 month period shall be honored pursuant to the 4 IWOTE: T404 L^V&r1J14t was s✓rice SjOCO gY j..&t4&44C Cv&rthrA►IEo /AJ 9-Zj • 9s— FAV FlAaK ALCAm) 4J VOC2kA Ac�a•a �'yDE�r� 9.u_9.�. TELEFAX COVER SHEET Siemens Power Corporation Turbine Services 66th and Greenfield Avenue West Allis Wl 53214 Fax: (414) 475- 346.1 Phone: (414)475-3553 DATE: 9 Z/ 9s� Number of pages including cover: 3 O FROM: �7. Subject:..., END • U�dN " o f 404 .ems G/iYOE�J'T.G�N� >C/ 4 TTAC'*6710 4 I �a VAR To .4.4/yvErrrA �i2/9s k�.�, l Siemens Power Corporation Siemens Power Corporation 1 46 oFz Installation, Parts & Service Departments Standard Terms It,e wS'Eo Foe 0:r y o ONDITIONS OF SALE -Unless otherwise agreed to in writing by a representative of Siemens Power Corporation (herein referred to as SPC), these Standard Terms shalt be a part of each quotation and contract for Parts and Equipment Services. WARRANTY - SPC warrants that the Services will be competent and conform to the recognized standards of the industry and further warrants that any new part(s) or new material(s) provided hereunder are merchantable and free of defects in workmanship and material. When SPC installs Purchaser supplied parts) and/or manufactures part(s) at Purchasers direction utilizing Purchaser supplied information or by copying said part(s); e.g. providing the same configuration and the same or equally acceptable material(s), SPC only warrants that said installation and SPC part(s) provided hereunder are free from defects in workmanship and material. SPC does not warrant the operation of said part(s)or thatthey will achieve the results intended by Purchaser. THE FOREGOING WARRANTY STATED ABOVE IS EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, INCLUDING BUTNOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITYOR OFFITNESS, ANDCONSTITUTES THE ONLY WARRANTYOF SPC WITH RESPECT TO THE SERVICES PERFORMED AND MATERIAL(S) OR PARTS) FURNISHED UNDER THIS CONTRACT. If within one year from date of shipment by SPC of the part(s), material(s) or services from SPC's facilities or from the date SPC notes Purchaser the services have been completed where the services are performed on other than SPC's Facility, Purchaser discovers that the part(s), material(s) or workmanship are not as warranted and promptly notifies SPC in writing thereof, SPC shall remedy such nonconformance by, at SPC's option; adjustment or repair or replacement of the nonconforming part(s), material(s) or services. Purchasershall assume all responsibilityand expensefor removal, reinstallation, and freight in connection with the foregoing remedies. The same warranty obligations and conditions as expressed herein shall apply to warranted services, part(s) or material(s) repaired or replaced by SPC. SPC shall have the right of disposal of the part(s) and materal(s) that it replaces. 3. DELIVERY/DURATION SCHEDULES- Shipping and completion schedules are based on typical manufacturing cycles and anticipated conditions prevailing at the time of contract award and are premised upon prompt receipt of all information and approvals (if required) from Purchaser. SPC will make every reasonable effort to meet schedules. 4. 5 'ERMITS AND TAXES - The Purchaser shall, at his own expense, secure any work permits, labor permits, tax exemption certificates, or any other authorization which may be required to permit SPC to perform the requested services. Any applicable duties or sales, use, excise, value-added or similar taxes will be added to the price and invoiced separately. In lieu thereof, the Purchaser may provide SPC with an exemption or direct -pay certificate acceptable to the taxing authorities. If a valid exemption certificate is provided after an invoice has been issued, a credit or refund of the taxes will be issued to Purchaser after such taxes have been received in full by SPC from the taxing authorities. 6. TERMS OF PAYMENT - Net 30 days, in U.S. Dollars, from the dated invoice 7. TITLE - The title and right of possession of equipment repaired, modified, inspected, tested or maintained under this contract shall remain with the Purchaser subject to any applicable lien rights of SPC and to its right of sale in the event of nonpayment as provided In the contract. E. NONTERMINATION - Purchaser may not terminate for convenience or direct suspension of performance except on mutually acceptable terms. 9. SUBSTITUTION OF PERSONNEL - SPC's obligation is to furnish services and not specific personnel. SPC reserves the right at any time, and from time to time, to substitute any of its personnel. 10. MODIFICATIONS- it is recognized that the nature of the services provided are such that changes in the scope of the services as originally contemplated often occur. SPC will undertake additional services within the normal scope of such services but reserves the right to require the Purchaser to confirm in writing any extension of the services and delivery originally ordered. Pending receipt of requested written confirmation, SPC shall be entitled to rely upon oral orders, including instructions of Purchaser's representatives. Any additional services performed by SPC pursuant to such written or oral orders or Instructions shall be paid for as mutually agreed upon. 11. DELAYS, SUSPENSION, DEFERMENT- It the services are suspended or delayed due to no fault of SPC, such as, but not limited to, act of God, war, act of Purchaser, fire, flood, strike, sabotage, embargoes, labor disputes, dots, civil disorders, accidents, delay of carriers, SPC's voluntary or mandatory compliance with a governmental act, regulation or request, shortage of materials, single source supplier, Purchaser directed supplier, or by any other cause orcauses beyond SPC's reasonable control, the time of performance, If any is specified, shall be extended for a period of time equal to the period of the delay and its consequences. If forany reason the Purchaser defers start of the work, the Purchaserwili give SPC written notice immediately. SPC, at its option, shall be relieved of its obligation to provide service hereunder without further obligation If the Purchaser defers start of the work beyond three months of the starting date originally specified, or it the work is suspended for more than three months. for Parts and F DENson� n authorized 12• Equipment Services 02110-ro 7st E3/o /✓= /78/ A% STORAGE - Any equipment on which manufacture or shipment is delayed by causes within Purchaser's control, or by causes which affect Purchasers ability to receive the equipment, may be placed in storage by SPC for Purchasers account and risk. 13. PATENTS - SPC may, in the performance of this contract, furnish or install equipment, components, materials and supplies which may be (a) standard commercial products of SPC, (b) purchased from other sources, (c) manufactured by or a repair method/process used by SPC to meet the specific circumstances arising under this contract, (d) manufactured by SPC in accordance with the Purchaser's instructions, and (a) supplied by Purchaser. Purchaser understands that SPC has made no investigation of the risk of possible patent Infringement as to items in categories (b), (c), (d) and (a) above, and accordingly, the Purchaser agrees to hold SPC harmless with respect to such risks. As to hems in category (a), SPC shall pay costs and damages finally awarded in any suit against Purchaser or its vendees to the extent based upon a finding that the design or construction of the Services as furnished infringes a United States patent (except infringement occurring as a resultof incorporating a design or modification at Purchaser's request) provided that Purchaser promptly notifies SPC of any such claim and SPC Is given the right at Its own expense to settle such claim and to defend or control the defense of any suit based upon such claims. THIS PARAGRAPH SETS FORTH SPC'S EXCLUSIVE LIABILITY WITH RESPECT TO PATENTS. 14. NUCLEAR INDEMNITY - When the services sold are to be performed on or in connection with a nuclear facility the Purchaser agrees to indemnify and hold SPC, its employees and agents, and its suppliers of any tier harmless from any loss, liability or claim resulting from a nuclear incident (said term is defined in section I I (Q) of the Atomic Energy Act as amended) occurring at said facilities (or any other facility where the services may be used) whether or not such incident is due to anyone's fault or negligence including thefaufior negligence of SPC. This indemnity shall prevail overany otherterms in any contract or sale of equipment, parts or services. 15. HAZARD COMMUNICATION - Purchaser acknowledges that 29 CFR 1910.1200 entitled Hazard Communication maybe applicable tothe services underthiscontract and it it is, Purchaser is in compliance therewith. Furthermore, Purchaser agrees it will provide SPC (whose employees in the performance of this contract may be exposed to Purchaser's equipment) with the same information Purchaser is required to provide to Its own employees pursuant to 29 CFR 1910.1200. Purchaser shall indemnify and hold SPC harmless from any loss, liability or claim resulting from Purchaser's failure to comply with this clause. 16. LIMITATION OF LIABILITY & INDEMNITY - SPC SHALL NOT IN ANY EVENT OR UNDER ANY CIRCUMSTANCE WHETHER IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE) OR UNDER ANYOTHER LEGALTHEORY, BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS OR REVENUE, LOSS OF USE OF A POWER SYSTEM, COSTOF CAPITAL, COSTOF PURCHASED OR REPLACEMENT POWER, FUEL COST DIFFERENTIAL, OR CLAIMS BY PURCHASER FOR DAMAGES OF PURCHASER'SCUSTOMERS. THE REMEDIES OF PURCHASER SET FORTH IN THESE STANDARD TERMS ARE EXCLUSIVE, AND THE SUM TOTAL LIABILITY OF SPC TO PURCHASER WITH RESPECTTOTHE SERVICES, OR ANYTHING DONE IN CONNECTIONTHEREWITH, SUCH AS PERFORMANCE OR BREACH THEREOF WHETHER IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE), UNDER ANY WARRANTY OR OTHERWISE, ® SHALCNOT EXCEED 7AE0@N�81:PR19E. Tu/d(Z )T/NfS THE E 17. GENERAL - No waiver, alteration or modification of these provisions shall be binding upon SPC unless made in writing and signed by an authorized representative of SPC. SPC will comply with all laws applicable to SPC. ' �r yy..eef-0urreI���.t�4RCNA,IL�Q G//Z4 CGtXaGJ�4I�NrG.G.C..Gr7G/S A�l not responsible the SPC shall not be responsible for the ads and workmanship of the employees, contractors, subcontractors, or agents of the Purchaser. Any assignment of this contract or any rights hereunder by the Purchaser without written consent of SPC shall be void. Title to the equipment and Its risk of loss shall always remain with the Purchaser notwithstanding the fact that SPC is performing services pursuant to this contract. GOVERNING LAW -The interpretation of this contract shall be governed by the laws of the State of lillm, U.S.A. Fern114ABE. 20. COMPLETE AGREEMENT -This contract contains the complete agreement between the parties. All previous and collateral agreements (including letters of intent of purchase orders issued by the Purchaser), representations, warranty, or conditions not incorporated in this contract shall not be binding on either party. PROPRIETARY INFORMATION OF SIEMENS POWER CORPORATION /�ig9E .o"F z 21. 7`O lrlCGE 1 , Z/MiT.OT/OW OF.G/.O.?/.GTy �NOENNi� 17�2 - J .Z>a-elwy 7';Ve T/•-wd- T.ve,6s w llvr /s /.✓ cJOC;t oe 17-s -SV46CO40v re gC7V<:'r �E/�.oie F.oC/G/T/EI �/NCG4��✓9 7-,rA,Y.rPa��-.aTio�/, TO d F.eOy� L/NOE.e /T.S �XCG�/1/vE C.OoE'� 04'J' -TO-O/ , ✓o "-'74OW7d4e.." ..f'PC rA-wee 8E' .G/.odiCCE FoR Zv�O&lv 4�p6 44YONO 4? MC Two 7-,'•1kOr G.ONT,�AC T Pr,'Ca .EX CfE02 T df�C .1.s/.u.GG ,��vEi✓o .ci.Q.eivrY Fo.0 ,a o yoc�E' 7W4C 4 W10 W7' .d.P/s/,v9 aUr oOe 4�VY L,OTE/Vr 13E'FEC'T o,P WaWp-.t /ter Ti/E 4egr' PVT A1116 ✓ oW"46 ,.w.v.r T-4W.-VEQ ovE.< TO .SAC'. „f'/pG' =f Fo.PEyoiN� •G�.4•GS/GiTy FO•P I�/7icI.99G TO T,SIEEu�owcQv ss/.O.GG 8E Fucty .I'.QT/JF/E� Liy SPC'� .�r�i�^s �Ti a.✓.0,* By RE •�7CEMENT'G1�T.4E.Ei�►tI ENTG�sT� J�.4�1A O�.eT� O.0 7L.vdFNT' TO 'G/WPCNA.r'Erf pF .yN .4.4WO44W70 Ecy4W.0yt'. 7^a T.t�E �L�VCL�.vENT i/it7LaE O.r Ty4'Eq,p�rWif/6,✓ .l�/��60 r0 J C. EXCE1T ,os 6XP.PErrc y STAlL°'v �80✓E� �'y� TE.P�.r o.� C�.4v✓c of z4W'a'Oq::✓ry ,aro JV419E•W-a,7OY - s.vo« yovF.c v. /NOW^e^OVF/C,Orie O/ .... oo Contractor shall and does hereby agree to indemnify and hold harmless the City of Denton from any and all damages, loss, or liability of any kind whatsoever, by reason of injury to property or third persons occasioned by any error, omission or negligent act of Contractor, its officers, agents, employees, invitees, and other persons for whom it is legally liable, with regard to the performance of this Agreement, and Contractor will, at its cost and expense, defend and protect the City of Denton against any and all such claims and demands. "This indemnification shall become ineffective 18 months after the date the Contractor ships the goods or completes the services required bX�the contract whichever date is later, except that claims made against the Confractor under this indemnity during that 18 month period shalt be honored pursuant to the terms of this indemnity clause." -510 /✓° /,8/ JUL :� 1 ' yS 1 4 : 32 FROM S 1 E!'iENS F'OWCR CORP, 07/21/95 15:12 xarsb i xaLanaaa, zaoorporat04 a/ Whippan woad P. O. Sol[ loss TO 2173 PAGE . 002/ 002 NO.429 P002/M now" n 7 morriatovn, W 07962-1966 COMPAPM AMMING COVERT ns 5 'lRAYSLiR1 xxf oo aiono corporation► _ zualndiaq Siemens Power Corp. C Los vetoed Uveaue south r; Iselin* W 48436 , p E Ynd 16 TD CFWnFV nMT THE PDU= OF 09WRAUM LM Mo 1ELOw wAV� �/ M{NiD Tb Thw wau® Asa[ roA TNC Poucti' P(NDO woitwY+:o.NOYMATKS7AAIOa19M1V)1EOUBWAAEUT.MWORC M MDnOPAWDOMMGTOOIOTMEADOCLMWWtYHREOIxTToWtOWTMtg COMACATE WAY HE ►ssu W 04 MAY FUTA1K THe W4UK4KNCE r,FPOR0Ea w no mum 06iamm Know 11 Sua,ECT M ALL THE TWAd. IXCU�gtO AND CONaTWMs OF suCh POUCFM UMTTB spowM WAY W1YE 16bVR0 6Y rm CLAN4. M T/ervOLWAIa ►aOCr lnrra Polprwwe' POWW wWW" umn MRIWIool h am fmm tm r A ' 101isic l0 0 91 10/01/oS OMWAMO�"u t f0wAa Z Dwn.,cTrcaoew.u�nY naaw,woow'p►� .s.oiaa.a;_ wpi [ oaax jewom 0 *OL Puaw t 11100c� awloMs• PNC► oatOc-- • 1600060 ma mum piv w *4 s 1oeo0ao t �-swacy�.Y..+ s 2soo0 3 A'"° 10~E'"�"' JCAP22972271TI 9 ii0 �/ 8 1; +►^ "aD JCAP229T22s3=W 30%8 /ii l0%Ol/o1 �""` s looa000 s ALaxpmm9of t:CAP229T229STRi 10/03./94 10/01/9s sooty WAM o amemAm Mims JRAM2916139TZL9 10/01/94 10/01/95 ^" P"" aMA umuTv FrAp"m cmmm 1 UmLm A Paw anse�� .a�.ar•ca..N.liaM Ave city t m toa is an addL Oonsretar Iaspootion)0 1a/os/oS 1o/os/9a io joi%f s • 1000000 � se000m i--laeosoo IIIsnrOd as respect• Hid 01721 (TUrbin• sHouw AwY oP ns A6oK ogc�s,00 PDu0,s6 aE cAxceusD+Eroe6 TMf City of Past06 OlMN110M MU rMOSOF. THE wawww Ca~ *,U ENOLWW m •Et.M t jarClka siaq Mpt ** --" ama" TTW w nc6 To ne cEY vv440m �ftm MM410 YO YHE tirT', !NT FAUN K TO MULYM WcHYw woYtOi y #72 QD n l01-1� 2exa• •t . 4ortTMOr Mn wHC vor YHe CCIYPAMY lYy ENT: an boatoe, Sr 76201 ArTHoaosswrwrrnlsa _ I I E i JUL 21 '95 14:07 PAGE . 002 ** TOTAL PAGE.002 **