HomeMy WebLinkAboutresolution.council.079-05RESOLUTION
(Series of 2005)
A RESOLUTION APPROVING AN AGREEMENT FOR A FIVE-YEAR EXTENSION OF
THE MAINTENANCE CONTRACT BETWEEN THE CITY OF ASPEN, COLORADO, AND
GENERAL ELECTRIC (G.E.), SETTiNG FORTH THE TERMS AND CONDITIONS
REGARDiNG MAINTENANCE WORK FOR RUEDI HYDROELECTRIC PLANT AND
AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT
WHEREAS, there has been submitted to the City Council an agreement between the City
of Aspen, Colorado, and G.E., a copy of which is annexed hereto and made a part thereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO:
Section 1
That the City Council of the City of Aspen hereby approves that agreement for a five-
year extension of the maintenance contract between the City of Aspen, Colorado, and G.E.,
regarding maintenance work for Ruedi Hydroelectric Plant, a copy of which agreement is
annexed hereto and incorporated herein, and does hereby authorize the City Manager of the City
of Aspen to execute said agreement on behalf of the City of Aspen.
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of that ~l_ut. ig~n ad.opted by the City Council of the City of Aspen,
Colorado, at a meeting held ~
Kathr~S. Koch, City Clerk
AGREEMENT
BETWEEN THE
GE INTERNATIONAL, INC.
AND
THE CITY OF ASPEN, COLORADO
FOR 5 YEAR CONTRACT EXTENSION FOR THE
OPERATION, MAINTENANCE, AND REPAIR OF
THE RUEDI HYDROELECTRIC FACITITY
This Agreement is for a 5 gear contract extension, entered into and effective this __ dag of
,2005 bg and between the Citg of Aspen, Colorado, hereinafter as the "Owner" and GE International,
Inc, GE Energg, bg and through its Installation and Field Services Division (I&FS), with a place of
business at 4200 Wildwood Parkwag, Atlanta Georgia, hereinafter referred to as the "Contractor".
WHEREAS, under the existing 20 gear agreement doted 15th December 1984 between GE
International, Inc. and the Citg of Aspen, Colorado for the operation, maintenance and repair of the
Ruedi Hgdroelectric Facilitg set to expire 10th September 2005, under the provisions of Article #2 of
the referenced existing agreement. Terms of Contract, GE Energg, the contractor, wishes to exercise
the referenced Article #2 and extend the contract with the owner under a second term for an
additional 5 gears in accordance with the original contract provisions and modifications summarized
in the attached. The new contract termination date will be 10th September 2010. The Contract mag
be extended for additional terms bg mutual agreement of the parties.
IN WITNESS WHEREOF, the Owner and the Contractor have executed this 5 gear Contract extension
in accordance with the original contract provisions and modifications summarized below.
GE International, Inc.
Title:
Date:
CITY OF ASP ~
Original Agreement with modifications in bold:
AGREEMENT
BETWEEN THE
GE INTERNATIONAL, INC.
AND
THE CITY OF ASPEN, COLORADO
FOR THE
OPERATION, MAINTENANCE, AND REPAIR OF
THE RUEDI HYDROELECTRIC FACITITY
This Agreement. entered into and effective this 15th dag of December, 1984 bg and between the Citg
of Aspen, Colorado, and the Countg of Pitkin, Colorado, as represented bg the Citg-Countg Joint
Hgdropower Department, and referred to hereinafter as the "Owner" and GE International, Inc, a
Delaware Corporation, bg and through its GE Energg Division, with a place of business at 4200
Wildwood Parkwag, Atlanta Georgia, hereinafter referred to as the "Contractor".
WITN ESSETH
WHEREAS, the Owner distributed a Request for Proposals for the Ruedi Hgdropower Project. dated
September 1, Z983, said Request for Proposals soliciting, among other things, proposals for the
Operation, Maintenance, and Replacement of said Project; and
WHEREAS, Contractor and others responded on November 1, 1983 with a proposal for, among other
things, Operation, Maintenance, and Replacement of the Project as requested in the Request for
Proposals; and
WHEREAS, upon review of all proposals received, the Owner identified the Contractor as the preferred
contractor for the Operation, Naintenance and Replacement as well as the Design and Construction
of the Ruedi Hgdropower Project based on the proposals submitted bg the Contractor; and
WHEREAS, it is the intention of the Owner to contract for the Operation, Maintenance and Repair of
the Ruedi Hgdropower Project for a twentg (20) gear period so as to provide for the proper and safe
operation of the project, maintenance of the project in good working order, and repair or
replacement of project components as mag be required to provide for a facilitg which is intended for
o service life of fiftg (50) gears.
NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants
contained herein, the parties do herebg agree as follows:
1. DEFINITIONS
Where used in this agreement, the following terms shall have these respective meanings:
a. "Owner" shall mean the Citg of Aspen
"Contractor" shall mean GE International, Inc, GE Energg, bg and through its Installation
and Field Services Division (I&FS).
"Project" shall mean the hgdroelectric power plant and related facilities described in the
"Request for Proposals - Ruedi Hgdropower Project", dated September 1, 1983, and
"Contract Documents for the Design and Construction of the Ruedi Dam Hgdropower
Project", dated September, 1.983.
"Substantiallg Completed" shall mean that the Project as certified bg the Owner, is
sufficientlg completed in accordance with construction contract documents so that the
Project can be utilized for the purposes of generating hgdroelectric power.
"Start Date" shall mean that date, to be agreed upon bg the Owner and the Contractor,
when substantial completion is achieved and when the Contractor's obligations for
operations, maintenance and repair as described herein shall commence. That date will
be appended to this definition and documented herein upon said agreement.
"Contract Date" shall mean the date of final execution of the Contract bg both parties as
noted in the first paragraph, above.
2. TERM OFCONTRACT
This initial Contract shall have a term of twentg (20) wears, commencing upon the Start Date.
The Contract mag be extended for additional terms by mutual agreement of the parties. Upon
expiration of the Contract, Contractor will turn over all Project facilities to the Owner, adjusted
to original specification tolerance, excluding normal wear and tear. The contractor further
guarantees that all materials and components furnished and work performed under this
Contract during the twentieth gear of this Contract shall be free of all defects due to faultg
materials or workmanship for a period of one gear from performance of that particular
service, repair or replacement. For said one gear period following contract termination,
Contractor shall promptlg make such corrections as mag be necessarg by reason of ang
defects or negligence in materials, components, workmanship or other services furnished
under the Contract, including the repair of any damage to other parts of the Project resulting
from such defects. The Owner will give notice of observed defects with reasonable
promptness. In the event that the Contractor should fail to make such repairs, adjustments, or
other work that maw be made necessarg bg such defects, the Owner maw do so and charge
the Contractor the cost therebg incurred.
OBLIGATIONS OF THE CONTRACTOR
3. GENERAL
The Contractor shall be responsible for operating and maintaining the Project in
accordance with sound engineering practice, and with coordinating the operation of the
Project with the Haig Cross Energg, and with the United States Bureau of Reclamation in
accordance with a Memorandum of Agreement dated August 13, 1984, between the
Owner and the Bureau of Reclamation as said Agreement mag be amended from time to
time. Said Agreement shall be attached hereto as Appendix A and is incorporated herein
bg reference. Any charges by the Bureau of Reclamation imposed bg said Agreement will
be paid by the Owner. The Contractor shall also operate and maintain the Project in
accordance with agreements between the Owner and other agencies or utilities
responsible for facilities adjacent to the Project. The Contractor shall be notified of such
agreements by the Owner no less than thirtg (30) dags prior to their execution. Ang
changes in Operations and Maintenance work or charges to the Owner necessitated bg
ang such agreements with third parties will be negotiated and implemented according to
the provisions of Paragraph 15, below. Contractor will design and implement
a maintenance program for the plant based on the assumption that the Owner intends for
the plant to have a fiftg (50) gear life. The Contractor shall be responsible for the testing of
Project facilities for efficiencg, wear, and power production, at a frequencg not less than
annuallg, in a manner consistent with the standards of the hgdroelectric power industrg,
and shall, at its expense, correct ang deficiencies or defects that exceed manufacturer's
recommended tolerances or that otherwise result in efficiencg losses as identified as a
result of testing and maintenance activities. Efficiencg losses and out of tolerance
conditions due to normal wear and tear, or due to unusual operational requirements (such
as emergencg situations) are excluded and are the responsibilitg of the Owner.
When plant upgrades are performed bg GE, one-Line diagrams and OEH rvlanual updates
shall be provided to owner in a format standard to the Industrg as part of the upgrade
package.
a. Contractor shall maintain the Project so as to maintain the maximum power production
and output at all times and under all circumstances, with the exception of Scheduled Outages
as defined below. Significant reductions in power production efficiencg shall be cause for
reevaluation and revision of operations, maintenance and repair procedures so as to avoid ang
such losses in the future.
b. The Contractor shall be responsible for the pagment of all monthlg utilitg charges,
including, but not limited to, telephone and telementrg charges to the protection, control and
metering sgstem.
4. SITE PERSONNEL
The Contractor will emplog or subcontract at least one individual based in or near the
Citg of Aspen, Colorado, whose responsibilities will include, but not be limited to, dailg Project
sgstem integritg checks, first level problem alert, and sgstem restart in the event of the unit trip.
Contractor will train said individual, or individuals as the case mag be, in project sgstem and
equipment operation, and make available to said individual, as a guide for routine maintenance
needs, Contractor's computerized maintenance planning program, providing scheduled task
identified of all maintenance items to be accomplished on a dailg, weeklg, monthlg and annual
basis. The Aspen based individual identified herein mag be an emplogee of the Citg of Aspen if
agreed to bg the Owner and Contractor in a separate agreement covering duties,
compensation, benefits and the like for said individual, who will be otherwise subject to all
current Citg and Countg hiring and personnel procedures and standards. The Owner mag
require the removal of ang person emploged on or about the Project facilities if the Owner
determines that the emplogment of such person is detrimental to the performance of work
required under this Agreement or, if both parties agree, the emplogee is not qualified to perform
the work assigned or is guiltg of improper conduct or for other just cause.
5. BACK-UP PERSONNEL
The Contractor's Denver-based service organization will provide management expertise and
technical service back up for the operation, maintenance and replacement parts requirements
of the Project.
6. SPARE PARTS
The Contractor will provide two levels of replacement parts management as follows:
a. On-site parts will be limited to those required on a routine basis such as expendables,
(lubrication materials, rags, etc,), indicator lamps, light bulbs minor control parts, Input-Output
boards, sensors, activators and the like. A back-up supplg of these parts will be maintained in
the Contractor's Denver office.
5
b. Major replacement items, such as turbine and generator spares will be stocked at the
site, based on needs identified during annual inspections.
c. A generic list of spore parts to be stocked bg the Contractor onsite and at its focilitg in
Denver is attached os Appendix B and is incorporated herein. A specific list of spore ports,
including catalog numbers, will be supplied bg the Contractor on or prior to the Start Date of
this Contract and will be incorporated into Appendix B of this Contract at that time.
OUTAGES
o. SCHEDULE OUTAGES
Scheduled outages will be those planned in advance for the purpose of corrging out
anticipated regular maintenance procedures. These outages will be scheduled with minimum
lead-time of two weeks during the first Bear of operation. After the first gear of operation, these
outages will be scheduled with a minimum lead-time of three months. Such outages will be
scheduled, in consultation with the Owner, at such times os will minimize loss of power
production and will be coordinated with the Bureau of Reclamation, Haig Cross Electric
Association, and other agencies as mag be required bg agreement(s) with the Owner or os mag
otherwise be appropriate. Both the starting and ending times and dates of maintenance
outages shall be scheduled and ang deviation from such schedule not agreed to in advance bg
the Owner and Contractor shall be considered an unscheduled outage. When o scheduled
outage time is changed bg the Owner or other parties as noted above, the Contractor shall be
entitled to reasonable charges in respect of such delag or suspension.
b. UNSCHEDULED OUTAGES
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Unscheduled outages are those that result from a sgstem failure. The Contractor will
respond to ang unscheduled outages not corrected bg the operator bg having a qualified
technician or engineer on site within 24 hours after notification of the outage between the
dates of MoB 2 and November I and within 48 hours after notification of the outage between
the dates of November 2 and Meg 1. In the event of unscheduled outages, the Contractor shall
act diligentlg to correct ong problems within its control that led to the outage.
For ang outage, the Contractor will be diligent in effecting repairs and service, and will
manage his activities to minimize down time consistent with good engineering practices.
The Contractor shall be responsible for contacting ang other agencies whose facilities
mag have caused, or mag be damaged bg such outages in accordance with the
provisions of Paragraph 3a, above. The Contractor shall further be responsible for
coordinating its corrective actions with ang such agencies.
REPORTING
The Contractor shall prepare and submit to the Owner monthlg reports which shall contain, at a
minimum, a status report on the plant's equipment, power output, power production efficiencg
and water releases calculated on a dailg basis. Said report will be delivered to the Owner no
later than ten working dogs after the first of each month. Indicated in the report will be the
various head and flow conditions for the month as well as the KWH production for the period.
Dailg or hourlg information will be available if requested. Based on the maintenance
inspections and tests, a monthlg maintenance and test report will be prepared and included in
said monthlg reports. Contractor will also prepare the required regulatorg reports to such
agencies as the Federal Energg Regulatorg Commission, The U.S. Bureau of Reclamation, and
other Federal and State agencies as necessarg, and Emergencg Action plans, including
participating in exercises, required bg regulatorg agencies. The Contractor will also provide to
the Owner within 60 dags of initial commercial operation of the Project the following:
a. A complete description of the efficiencg, wear and performance test programs for the
Project.
b. A description of the complete maintenance program for the project.
TITLE
Title to the product of oil the work performed and replacement parts provided hereunder bg the
Contractor, its emplogees, agents, or subcontractors shall pass to and vest in the Owner at the
time the work is performed.
10. WARRANTY
Contractor warrants to the Owner that the operating and maintenance services will be
performed in a competent manner, in accordance with the workscope defined herein and will
be free from defects in workmanship and material for one gear following completion of services
provided during the duration of this Contract. Except as otherwise provided in Paragraph 2
above, the foregoing warrantg applies to ang defect which appears within the operating and
maintenance period. The warranties are exclusive and in lieu of all other warranties, whether
written, oral, implied, or statutorg. NO IMPLIED STATUTORY WARRANTY OF MERCHANTABILITY
OR OF FITNESS FOR APARTICULAR PURPOSE SHALL APPLY.
11. FORCE HAJEURE
Notwithstanding ang other provision of the Contract concerning the Contractor's general
obligation to operate, maintain, and repair the Project facilities during the term of this Contract,
the Contractor's obligation shall not extend to maintenance and replacement requirements
caused bg act of God, riot, war, or vandalism unless, in the case of vandalism, the vandalism
was caused bg an emplogee or subcontractor of the Contractor (other than an emplogee of the
Citg of Aspen should that emplogee be acting as a subcontractor pursuant to Paragraph 4,
above) or could have been avoided bg the Contractor through proper operation and
maintenance of the securitg measures built into the plant. Nor shall the Contractor be liable for
ang inabilitg to perform ang of its obligations hereunder due to the following:
a. Acts of God.
b. Acts of the Owner, acts of civil or militarg authorit~J, fires, strikes, or other labor
disturbances, flood, epidemics, war, riot, and delags begond its reasonable control in
transportation or car shortages.
c. Inabilitg to obtain or delag in obtaining, due to causes begond its reasonable control,
suitable labor, material, or facilities required for the performance of the work describe in this
Contract.
If ong delog is caused bg the Owner or other contractors under the Owner's control, or if the
Owner suspends the work, the Contractor shall be entitled to reasonable charges in respect of
such delog(s) or suspension(s).
OBLIGATIONS OF THE OWNER
12. PAYNENT
AS consideration for the work performed bg the Contractor
pursuant to this Contract, Owner shall pay to the Contractor the sums set forth in the payment
schedule attached hereto as Appendix C as adjusted in accordance with the provisions set forth
in Appendix D.
13. TERMINATION BY THE OWNER
The Owner may, for cause or convenience, terminate this Contract upon ninety (90) days
advance written notification. In the event of termination for convenience, the Contractor shall
be paid its reasonable termination costs, including documented cancellation charges for
committed material or services, and costs for relocating or reassigning personnel and costs for
relocation of material or equipment. In the event of termination for cause, defined as
nonperformance of the requirements and terms of this Contract, the Owner will not be liable for
any costs to the Contractor other than those which may be owing in consideration of
satisfactory work performed up to the termination date, which costs will be determined by
applying the payment formulas defined in the Appendix C and D, below, as of the termination
date.
14. TERMINATION BY THE CONTRACTOR
The Contractor mag terminate this Contract upon ninety days written notice in the event that in
the Contractor's judgment such termination is necessary for any of the following reasons:
a. Contractor's inability to comply with local labor regulations, labor union working
agreements, or other limitation on the ability of the Contractor to fulfill its obligations under this
Contract, which are beyond the Contractor's reasonable control; or
Contractor's inability, for causes beyond its reasonable control, to comply with the laws of
any state or the legitimate request of any administrative agency having jurisdiction over
the subject matter hereof.
Provided, and to the extent, that the Contractor has fully satisfied its obligations hereunder up
to the date of termination, the Contractor shall receive a pro-rata portion of the payment
provide for in Appendix C, as adjusted through the date of termination, for all services
performed up to the date of termination.
15. CHANGES, DELETIONS AND EXTRA WORK
The Owner. without invalidating the Contract, mag order extra work or make changes by
altering, adding to, or deducting from the work, the Contract sum being adjusted accordingly.
All such work shall be executed under the conditions
of the original Contract.
The value of ang such extra work or change shall be determined in one or more of the following
wags:
Bg estimate and acceptance in one lump sum: or
Bg unit prices named in he Contract or subsequentlg agreed upon; or
Bg cost and percentage of cost or bg cost and fixed fee.
16. INDEPENENT CONTRACTOR
Contractor shall at all times be deemed an independent contractor, and none of its emplogees
or the emplogees of its subcontractors shall be considered emplogees of the Owner except as
mag otherwise be agreed to bg the parties in writing.
17. APPLICABLE LAWS
a. The rights and obligations of the parties under this Contract shall be interpreted and
governed in all respects bg the laws of the State of Colorado.
b. In the performance of this Contract, the Contractor shall complg with all applicable
federal, state and local laws, rules, regulations and ordinances including, but not limited to,
Worker's Compensation and occupational disease acts, the Occupational Safetg and Health Act
of 1970 and laws relating to nonsegregated facilities and equal opportunitg emplogment
(including the seven paragraphs appearing in 202 of Executive Order 11246, as amended) in
effect on the date of the execution of this Contract. The Owner shall provide the Contractor
information in its possession on local and state laws, rules, and regulations pertaining to the
operation of the Project.
c. Price and performance are based on the foregoing requirements in effect on the date of
the Contractor's proposal, ifang laws, rules, regulations, ordinances, codes, specification, or
standards, or official interpretations become effective thereafter which necessitate modification
of the work hereunder in order to complg therewith, such modification shall be deemed to be a
change bg the Owner. Contractor shall advise the Owner of requirements affecting the work to
be performed hereunder resulting from the applicabilitg of ang changed law, rule, or regulation.
c. The Owner shall be responsible for obtaining all governmental permits, licenses, exemptions
and approvals necessarg to operate and maintain the Project.
18. INSURANCE
10
The Owner shall provide and maintain the following minimum insurance coverages as primarg
insurance coverage during the performance period of this Contract:
a. Comprehensive General Liabilitg insurance with $5,000,000.00 combined single limit
bodilg injurg and propertg damage coverage for each occurrence. All par~ies to this Contract
shall be named as co-insured on said Comprehensive General Liabilitg policg, and the policg
shall include a cross-liabilitg endorsement.
1.) Coverages under this policg shall include the following:
Premises / Operations
Broad Form Propertg Damage
Products / Completed Operations (Completed Operations shall be maintained
for two gear after the cam pletion of the work)
XCU Hazards Liabilitg
Blanket Contractual Liabilitg
2.)
Certificates of insurance reflecting the above shall be provided the Contractor prior
to commencement of work. Thirtg (]0) dags prior notice shall be provided if ang
significant or material change to such insurance is contemplated bg the Owner.
b. The Owner shall provide and maintain such propertg and boiler and machinerg
insurance upon the Plant and Project as the Owner deems necessarg. The Owner agrees to
name the Contractor as coinsured under ang such policies. Certificates of such insurance shall
be provided the Contractor prior to the commencement of work, and such insurance shall not
be modified or terminated without at least thir~g (30) dags written notice to the Contractor. The
Contractor shall provide statutorg Worker's Compensation insurance for its emplogees, and
emploger's liabilitg insurance in the amount of $5,000,000. Contractor shall ensure that its
subcontractors provide like insurance for their emplogees.
c. The Contractor shall provide, for its protection, automobile liabilitg insurance covering its
owned and leased vehicles used in the performance of the work. Coverage shall be $5,000,000
combined single limit for bodilg injurg and propertg damage each occurrence.
19. LIMITATIONS OF LIABILITY
a. The Contractor's liabilitg on all claims of ang kind (excluding death or bodilg injurg),
whether based on contract, indemnitg, warrantg, tort (including negligence), strict liabilitg or
otherwise, for all losses or damages arising out of, connected
11
with, or resulting from this Contract or from the performance or breach thereof, or from ang services
covered bg or furnished under this Contract or ang extension or expansion thereof
(including remedial warrantg efforts), shall in no case exceed the Annual Contract
Price which is defined as the total amount paid to the Contractor under the terms of
this Contract during the most recent previous gear.
Except as to title to ang materials furnished, all such liabilitg shall terminate upon
the expiration of the warrantg period specified in the paragraph 10 entitled
"Warrantg".
b. In no event, whether on contract, indemnitg, warrantg, tort (including negligence), Strict
Liabilitg, or otherwise, shall the Contractor or its subcontractors or its suppliers be liable for
special, incidental, exemplarg, indirect, or consequential damages including, but not limited to,
loss of profits or revenue, loss of use of the equipment or ang associated equipment, cost of
capital, cost of purchased power, cost of substitute equipment, facilities or services, downtime
costs, or claims of customers of the Owner for such damages.
c. Ang and all liabilitg claims shall be based solelg on performance or nonperformance of
the duties and responsibilities as defined in this Contract.
if the Contractor, upon request or with the consent of the Owner, furnishes the Owner with
advice or assistance concerning ang products, sgstems, or equipment which is not required
pursuant to this Contract, the furnishing of such advice or assistance will not subject
Contractor to ong liabilitg
12
whether in contract, warrantg, tort (including negligence), strict liabilitg, or otherwise.
20. NOTICE
All coordination under this Contract between the Owner and Contractor, and ang notices given
hereunder shall be between or to, as the case mag be, the following:
For the Owner:
Phil Overegnder
Utilitg Director
Citg of Aspen
130 S. Galena Street
Aspen, Colorado 8~.611
For the Contractor:
Lew Brown, Account Manager
GE Energg (I&FS)
4900 Kingston Street
Denver, CO 80239
The persons designated in this paragraph mag be changed bg the Owner or the Contractor
upon notice to the other partg.
2~.. ASSIGNMENT
The delegation or assignment bg either partg of ang or all of its duties or rights hereunder
without the other partg's prior written consent shall be void. If the Owner is furnished services
provide under this Contract bg a third partg bg contract, the Owner shall obtain from such third
partg a provision affording the original Contractor the protection of Article 19, Section b.
22. INVALIDITY OF CONTRACT PROVISIONS
The invaliditg, in whole or part, of ang of the foregoing paragraphs or articles of this Contract
will not affect the remainder of such paragraphs or articles.
23. HEADINGS
Paragraph titles and subtitles contained in this Contract are for ease of reference onlg and are
not intended to alter or modifg in ang wag the meaning of paragraphs contained herein.
2/4. ENTIRE AGREEMENT
This Contract constitutes the entire agreement between the parties hereto with regard to the
subject matter hereof. It supercedes oil previous representations, arrangements, agreements,
and understandings, written or oral, expressed or implied, if ong, bg and between the parties
hereto, and their respective
13
representations, arrangements, agreements and understanding, if ang, are herebg cancelled
and terminated in all respects. Except as otherwise provided herein, this Contract mag not be
amended, changed or modified except bg a writing dulg executed bg both parties hereto.
Without limiting the foregoing, and except as otherwise provided for herein with respect to
Appendix A, no provisions of any contract between the Owner and ang third partg shall be
deemed incorporated herein, unless such provision is set forth in full, in an amendment hereto.
IN WITNESS WHEREOF, the Owner and the Contractor have executed this Contract the dab above
first written.
GE InternatJ(~rk~c.
Title: GE Energg I&FS Northwest Services Manager
Date:
APPENDIX A
BUREAU OF RECLAHATION PERMANENT ACCESS AGREEMENT
15
APPENDIX B
SPARE PARTS LIST
I. TURBINE
Raw castings will be provided as follows:
3.) Two - Spare Spear Tips
2) Two - Nozzles
3) One - Deflector Plate
II. GENERATOR
1) Set of Brushes
2) Brush Holders
III. OILCIRCUIT BREAKERS
1) Trip Coil
2) Close Coil
IV. BALL VALVE
1) Seals
2) Seats
V. MONITOR SYSTEM
1) Input Boards - PLC
2) Output Boards - PLC
3) Phone Modem - Parts
VI. MISCELLANEOUS PARTS
1) Light Bulbs
2) Lube Oil Filters
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APPENDIX C
PAYMENT SCHEDULE
Pagments will be made on the following basis:
An annual Base Payment of $78,000 will be due and payable within ten working days of the
receipt of an invoice from the Contractor, which invoice shall be submitted at the Contractor's
convenience on or after the Start date of this Contract. Further Base Payments will be due and
payable within ten working days of the receipt of annual invoices from the Contractor, which
invoices shall be submitted at the Contractor's convenience on or after the annual Start Date
anniversary, ending on the nineteenth such anniversary.
An annual Energy Pagment will be due and payable within ten working dags of the receipt of
an invoice from the Contractor, which invoice shall be submitted at the Contractor's
convenience on or after the annual anniversary of the Start Date, beginning with the first such
annJversar~j, Jn an amount calculated as follow:
$.006 (6 mills) per kilowatt hour (KWH) for every KWH over a minimum of 18,000,000 KWH
produced during the previous contract year and measured at the first meter beyond the
generator.
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APPENDIX D
PAYMENT ADJUSTMENT FORMULAS
The prices included herein are firm as of the Contract Date. For services performed thereafter, the
Base and Energg Pagment amounts shall be adjusted upward or downward to reflect changes in
labor, material or engineering costs, and to maintain a constant ratio between the two pagments.
The adjustments described below will be made bg the Contractor on or before the submission of
annual invoices for services to the Owner. Copies ofang and all calculations performed pursuant to
said adjustments will be included with annual invoices and will be subject to the review and approval
of the Owner. All pagment adjustments will be made in accordance with the following further
provisions:
1. DEFINITIONS
For the purpose of price adjustments, the following definitions applg:
"Labor Index" shall be the Skilled Labor Index for citg geographicallg nearest the job site
as determined and reported monthlg in the second Engineering News Record (ENR) issue
of each month (published weeklg bg McGraw-Hill, Inc., PO Box 430, Highstown, New
Jerseg 08520).
1.) ILS will represent the Labor Index as defined above as of the Contract Date.
2.) ILA will represent the Labor Index as of the Start Date anniversarg.
"Material index" shall be the Materials Price Index for the citg geographicallg nearest the
job site as determined and reported monthlg in the second ENR issue of each month
1.) INS will represent the Materials Index as defined above as of the Contract Date.
2.) INA will represent the Materials Index as of the Start Date anniversarg.
"Engineering Index" shall mean the Straight Time Hourlg Rate of the GE Energg I&FS Field
Engineer Standard Rate as published for the Continental US.
1.) lES will represent the Engineering Index as defined above os of the Contract Date.
2.) lEA will represent the Engineering Index as of the Start Date anniversarg.
"Base Indices" shall be the published Labor Material and Engineering Indices for the Base
Month.
e. "Base Month" shall be the month of the Start Date.
Ang of the Indices or references noted above mag be changed or replaced in the future bg
mutual agreement of the parties to this Contract.
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2. ADJUSTMENT OF BASE PAYMENTS
For the purpose of Base Pagment adjustment, the following percentages shall be applied
to the price components noted:
1.) 50% of the Base Pagment will represent the labor content and will be expressed in
the adjustment formula as PL.
2.) 24% of the Base Pagment will represent the material content and will be expressed
in the adjustment formula as PM.
3.) 26% of the Base Pagment will represent the engineering content and will be
expressed in the adjustment formula as PE.
The exception to the above shall be the first Base Pagment adjustment, to be made
on the Start Date, in which the percentages applied to labor, materials and
engineering components shall be 50%, 40% and 10%, respectivelg.
The beginning Base Pagment amount will be established at $78,000 as of the Contract
Date. This amount will be adjusted on the Start Date and on everg anniversarg of the
Start Date according to the following formula:
$78,000 * {PL * (ILA/ILS)+ PM * (INA/INS)+ PE * (IEA/IES)}=RevisedBase
Pagment
GENERAL
In the event ang change in the Contract specifications, prior to completion of the work,
results in a change in the Bose Pagment, the new Base Pagment shall be considered as
having been in effect since the Bose Month for the purposes of price adjustment.
b. Adjustments shall be calculated to the nearest one-tenth of one percent.
4. ADJUSTMENTS OF ENERGY PAYMENTS
Energg Pagments will be adjusted os follows:
A beginning Target Pagment amount of $103,000 will be established as of the Contract
Date. This figure represents the theoretical annual total of Base and Energg Pagments
given projected energg production. For purposes of Energg Rate adjustment, the
relationship between this amount and the beginning Base Pagment amount is expressed
as a ratio of 1.3205. This figure will be adjusted according to the following formula:
1.3205 * Revised Base PagmentAmount:RevisedTargetAmount
"Average Energg" will be established bg averaging annual energg production, as
measured at the first meter begond the generator, for the gears between the Start Date
and the adjustment date.
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c. "Threshold Energg" will be 80% of Average Energg.
d. Energg Pagment amounts will be adjusted on the fifth, tenth, and fifteenth anniversaries
of the Start Date according to the following formula, to take effect on the subsequent
anniversarg:
(Revised Target Amount - Revised Base Amount) / Average Energg - Threshold Energg) =
Revised Energg Pagment per KwH
5. EXAIVlPLE OF PAYMENT ADJUSTMENT
Current indices are as of cJ/].3/8~t. Future indices are hgpothetJcal.
$78,000 * {50% * (LG0.80/~t06.42)+ 2it% * (]5].22/]]3.2])+ 26% * (77.]8 / 7].00)}
: $8~.,g00 = Revised Base Pagment
2O