2007-052
ORDINANCE NO. 2007- 0.'7.'/1.,
AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE
CHANGE ORDER NUMBER ONE (REMOVING THE 5% ANNUAL CAP ON THE
CONTRACT'S ESCALATION CLAUSE) TO THE CONTRACT BETWEEN THE CITY OF
DENTON, TEXAS AND ABB, INe.; PROVIDING FOR THE EXPENDITURE OF FUNDS
THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID NO. 3282-CHANGE ORDER NO.
ONE TO THE THREE-YEAR CONTRACT FOR PURCHASE OF MEDIUM VOLTAGE
SWITCHGEAR AND CONTROL BUILDINGS).
WHEREAS, on February 1,2005 by Ordinance No. 2005-037, the City awarded a three year
contract to ABB, Inc. in the estimated amount of $1 ,482,021 for the purchase of medium voltage
switchgear and control buildings;
WHEREAS, the Staff having recommended, and the City Manager having recommended to
the Council that a change order be authorized to amend such contract with respect to Section IV.G.
thereof, to delete the 5% annual cap for price adjustment escalation; NOW, THEREFOR,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The Change Order Number One, deleting the 5% annual cap for price
adjustment escalation as part of the contract agreement between the City and ABB, Inc., which is on
file in the office of the Purchasing Agent, in the unit pricing amounts as approved in Bid No. 3282, is
hereby approved; and the expenditure of funds therefor is hereby authorized in accordance with said
change order.
and approval.
SECTION 2. This ordinance shall become effective immediately upon its passage
tIz 11/ .
PASSED AND APPROVED this the It - day of 1,(/lrr!.-11
,2007.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
./
APP VED TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY~~C~ Ji
8-0RD-Bid 3282
THE STATE OF TEXAS
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9
9
COUNTY OF DENTON
AMENDMENT NO. I TO
PURCHASE AGREEMENT FOR SWITCHGEAR AND CONTROL BUILDINGS
[City of Denton Bid No. 3282]
A Purchase Agreement for Switchgear and Control Buildings (hereafter the "Original
Agreement") was entered into by and between ABB, Inc. (hereafter "ABB") 655 Century
. Point, Lake Mary, Florida 32746 acting through its duly empowered officers and
representatives; and the City of Denton, Texas, by and through its duly authorized and
empowered City Council (hereafter "Council"), said Original Agreement being approved by
the Council on the I st day of February, 2005 and being evidenced by Purchase Order No.
3282, providing for a term of three-years; and both ABB and the Council have each resolved
that the Original Agreement should be modified and amended as to certain provisions only, to
wit:
WHEREAS, both ABB and the Council in this "Amendment No. I to Purchase
Agreement For Switchgear and Control Buildings" desire to eliminate the 5% annual limit on
price escalations that is provided for in the Original Agreement and do hereby mutually
AGREE to the following changed terms of the Original Agreement as follows:
I. The U.S. Department Labor Producer Price Index for finished energy goods (hereafter
the "PPI") shall continue to be used as the basis for adjusting unit prices for future
orders. The unit prices shall be adjusted using the same calculation methodology as
defined in the bid specification.
2. The 5% annual limit on PPI price increases or decreases shall be eliminated.
3. The limitation allowing unit prices to be adjusted only once each year on the
anniversary date of the Original Agreement shall be eliminated. Unit price shall be
allowed to float monthly in accordance with the relative changes in the published PPI.
4. The published PPI for February 2005 of 118.6 shall be the starting PPI for determining
unit prices for future orders.
5. Unit prices for future orders shall be based on the relative change in the PPI, up or
down, by the relative difference between 118.6 and the most recently published PPI at
the time of issuance of the purchase order. It is acknowledged that the most recent
four months of the PPI data is considered preliminary. The unit prices for an order
shall not be adjusted beyond the date of issue of a City of Denton purchase order even
if the preliminary PPI used for calculating the unit prices in the purchase order is
adjusted subsequent to the order date.
6. In return for approval of this Amendment No. I, ABB shall accept orders for four
buildings (two for the R. D. Wells Substation, one for the Fort Worth Substation, and
I
one for a planned future station). The unit prices for these four buildings shall be
17.2% above the original bid unit prices in Bid No. 3282 as approved by the City
Council on February 1,2005. This is based on the preliminary December 2006 index
as published on January 31, 2007, which was 139.0. The parties hereto agree that the
relative difference in the PPI from February 2005 (118.6) and the preliminary
December 2006 PPI published on January 31, 2007 (139.0) is 17.2%. All per ABB
Revised Proposal Neg# 1057-06-1795 dated February 16, 2007.
7. ABB will work with Denton Municipal Electric (hereafter "DME") to establish
delivery dates for the four buildings based on DME's project needs. DME shall not
require any delivery time to be shorter than ABB's current, normal production
schedule.
8. DME shall have the option of canceling the order for the fourth building, up to a
mutually agreed-to date between September 2007 and November 2007 without
incurring any charges or any monetary penalties.
9. All other terms and conditions of the bid specification, Bid No. 3282, and the Original
Agreement shall remain unchanged.
WITNESS our hands this the _23th_ day of ]ebruary_, 2007.
ABB INC.
A Delaware Corporation
By:
IlJJ~T
V/ ~AMC<--
ATTEST:
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.wvviw..\1;\M.I b<nr "l"\.lM
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By:
G~
GEORGE C. CAMPBELL
City Manager
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
2
By:
V 0 A 0 LEGAL FORM:
.
. SWillER, CITY ATTORNEY
By 1l1l\:QJ tqJ
S:\Our Documents\Contracts\07\First Amendment~ABB+City-DME Switch Bldg~3282.doc
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