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EXHIBIT B
SCHEDULE
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Tripepi Smith & Associates
FEES AND COSTS
We recommend the following scope of services following a Time & Materials (T&M) model that allows you the flexibility to “ramp up” or “ramp down” efforts according to budget and priorities. Tripepi Smith is prepared to provide these services, as needed, at the following recommended NTEs using our hourly rates. We only begin work with your written consent. We can also provide an array of the following services on a monthly retainer basis.
Tripepi Smith & Associates, Inc.
Services Agreement
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Tripepi Smith & Associates
Deliverable Scope Recommended
NTE
Strategic Marketing & Communications
Check-in Calls Monthly check-in call, up to 30-minutes with senior resource. Call content will focus on
pertinent policy updates, general
opportunity for us to stay connected.
$200/call
Communications
Assessment
Kickoff meeting, 22 virtual interviews up to 1
hour each, research, assessment report
and presentation to City Council and/or
Executive Staff.
$58,330
Strategic
Communications
Plan
Whiteboard session, research, content
development and creation of
comprehensive plan with outreach and
implementation recommendations.
$17,115
Social Media
Management and
Monitoring
Creation and posting of up to 8 social media
posts over the course of one month.
Includes weekly monitoring and responding
to comments.
$2,725/month
Website Content
Management
Ongoing content updates to the City
website. Excludes content creation, website
layout, page or structural changes.
Range based
upon needs:
$710 -
$2,000+
Spanish Translations Translate 500 words of English to Spanish or vice versa
$225
Graphic Design
(excludes print and
mailing fees)
Flyer
Brochure
Banner
Postcard/Door Hanger
Infographics
$1,700
$1,750
$1,560
$1,050
$890
Stock Video Shoot One videographer for a full-day (8 hours) onsite. Includes pre-production, production
and post-production, review, final file
delivery and travel costs.
$5,400
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Tripepi Smith & Associates
Deliverable Scope Recommended
NTE
Stock Photoshoot One day photoshoot around various iconic sites in City. Includes shot list development,
coordination, travel, equipment and post
production photo editing.
$3,850
Stock Photoshoot
(with drone)
One day photoshoot as described above,
plus drone photography.
$4,455
Metrics Report Collection of metrics from key City platforms and tools in monthly report. Includes
summary and key observations.
$850/month
Community
Workshop
Planning and facilitation of up to one virtual
town hall or community workshop. Includes
creation of PPT deck and pre-event
coordination meeting with the City.
$6,500 (inperson)
$4,700
(virtual)
Media Advisory/PIO Services
Press Release,
Media Advisory,
Public Statement
Drafting 1 press release, media advisory or
public statement up to 7500 words. Includes
research, drafting and distributing.
$750
Meltwater Media
Monitoring and
Metrics Reporting
Includes up to 3 queries per month, access
to dashboard and any frequency of
newsletter. Delivery of monthly reporting
capturing key performance indicators for
controlled social media platforms and other
digital platforms.
$1,400/month
Media Inquiry Policy Discussions with up to 3 key stakeholders.
Creation of media inquiry policy.
$5,425
Media Empowerment
Training
Half day training (up to 4 hours) in-person
for up to 24 participants.
$15,945
On-Call Strategic &
Crisis
Communications
Advice
Includes 1 hour strategy meeting with a
Director and Senior Business Analyst
followed by a detailed action item list for
both the City and Tripepi Smith.
$640
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Tripepi Smith & Associates
Deliverable Scope Recommended
NTE
Crisis Response
On-Call Strategic &
Crisis
Communications
Advice
Includes 1 hour strategy meeting with a
Director and Senior Business Analyst
followed by a detailed action item list for
both the City and Tripepi Smith.
$640
Tripepi Smith remains open to collaborating to narrow the scope of engagement or refine our understanding of the City of Vernon’s needs and will modify our pricing accordingly.
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Tripepi Smith & Associates 1
CITY OF VERNON SCOPE OF WORK: PLATFORMS
REVIEW AND RETAINER SERVICES
Platforms Review and Communications Plan
Service/Deliverable Scope Price Payment Format
Platforms Review and
Communications Plan
Support
Virtual kickoff meeting, review of
digital platforms, two virtual
internal interviews up to 1 hour
each, analysis and
recommendations for current
draft communications plan,
platforms report and virtual final
presentation.
$13,410 THREE MILESTONES
1. Kickoff: $4,470
2. Delivery of Platforms Report or
30 Days After Draft Delivery:
$4,470
3. Delivery of Updated
Communications Plan: $4,470
Media Relations Plan Creation of media relations plan
to empower staff in press
interactions. Includes research,
draft and review.
$5,160 TWO MILESTONES
1. Kickoff: $2,580
2. Final Delivery of Media
Relations Plan or 30 Days
After Draft Delivery: $2,580
Crisis Communications Plan Development of a crisis
communications plan to be used
as staff reference. Includes
research, draft and review.
$6,480 TWO MILESTONES
1. Kickoff: $3,240
2. Final Delivery of Crisis
Communications Plan or 30
Days After Draft Delivery:
$3,240
Fixed Fee Total: $25,050
Retainer
Service/Deliverable Scope
Strategy Meetings and
Project Management
Bi-weekly virtual meetings up to 30 minutes each. These calls will generally focus on trends, new issues or concerns that need to be communicated to us. Tripepi Smith will provide an update on the status of deliverables, manage the meeting agenda and send a recap email.
Social Media Management &
Monitoring
Creation and distribution of three posts per week (two static posts and one reel).
Tripepi Smith will review Vernon’s social media pages and inboxes five days a week for customer service opportunities, mainly responding to questions and raising topics to the City as needed. Tripepi Smith will draft recommended responses but will occasionally require fact-checking and guidance from the City for more nuanced responses.
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Tripepi Smith & Associates 2
Service/Deliverable Scope
Metrics Report Tripepi Smith will provide a summary report of the Key Performance Indicators or KPIs (reach, posts, engagement, etc.) related to your controlled social media sites and other key metrics if available, such as website visits, media mentions and email open/click rates.
Communications Strategy
Planning Meeting
Up to two-hour virtual meeting with leadership team to:
• Reflect on communications wins and lessons learned picked up in the previous timeframe.
• Create a plan for outreach in the coming months. We typically collaborate on a Content Calendar in a Google Sheet for easy reference on what external communications need to happen in the coming six to 12 months.
Three times per year.
Monthly Retainer Total: $8,290/month
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As-Needed Services
Tripepi Smith will apply the following standard hourly rates and related fees for any authorized asneeded (Time & Materials) work. Such work must be clearly authorized in writing before proceeding. 2026-27 Hourly Rates Standard Reduced Retainer
Principal $380 $315
Director $265 $225
Art/Creative Director $265 $225
Senior Business Analyst $205 $180
Business Analyst $150 $125
Junior Business Analyst $115 $100
Senior Videographer/Animator $205 $175
Senior Photographer $175 $150
Videographer/Photographer $140 $120
Junior Videographer/Photographer $115 $100
Senior Graphic Designer $195 $165
Graphic Designer $140 $120
Junior Graphic Designer $115 $100
Web Developer $210 $185
Junior Web Developer $115 $100
Drone Operator $205 $180
Council Chamber A/V Operator $115 $100
Invoicing & Payment Terms
At Tripepi Smith, we bill on either a Retainer, Fixed Fee or Time & Materials basis, with each billing type following its own payment schedule. Regardless, terms are Net 30 days. • Fixed Fee work is billed upon defined milestones.
• Time & Materials work is billed in 15-minute increments (i.e. 4.0, 1.25, 6.5 or 0.75 hours) at the end of the month in which work is done.
• Retainer work is billed on the 15th of each month.
Other Cost Information
Tripepi Smith has related service fees that may come up during our engagement that we want to tell you about.
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Annual Increase
Tripepi Smith will increase the hourly rates and retainer fees for all resources by 5% or the national CPI index — whichever is higher — each year on the anniversary of the contract, starting on the first anniversary of any contract when the contract duration is longer than one year. Otherwise, new rates will be negotiated with each new contract.
Retainer Discount
When a client’s retainer exceeds $7,500 per month, they gain access to our reduced retainer rates.
Travel Costs
Travel costs must be pre-authorized and then will be reimbursed by the client for any requested travel to complete a requested scope of work. Travel costs may include airfare, lodging, car rentals and gas.
Additionally, when client work requires that we be onsite, we will invoice for a resource’s travel time at 50% of the resource’s hourly rate.
Equipment Costs
Tripepi Smith offers some services that require equipment, such as drone operations and video production. As such, in those cases, the following rates apply:
Half Day (Under 4 Hours) Full Day (4+ Hours)
Video $450 $650
Drone $550 – Flat Fee
Please note that A/V equipment fees are based on the amount and type of equipment required, with pricing tailored to the specifics of each event.
Music and Video Licensing
Sometimes, the client will want Tripepi Smith to apply music or use stock imagery/video while producing video. In these cases, we will need to apply licensing fees of approximately $100 per song and $200 if we use stock video imagery. This will provide a license for the use of the music and video footage to Tripepi Smith and its clients.
Meltwater Fee
Tripepi Smith offers a standard Meltwater package at a flat rate of $545 per month. This package includes a newsletter digest (of any frequency), up to three queries, and a monthly dashboard. Custom Meltwater solutions are also available upon request.
Website Hosting Fees
If website hosting services are required, Tripepi Smith will charge a $630 website hosting fee and a $30 Domain Registration and DNS service fee, unless otherwise specified in this proposal. Fees will be billed upon commencement of hosting services, and annually thereafter. Please note the website Tripepi Smith & Associates, Inc.
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Tripepi Smith & Associates 5
hosting package is limited to 10 Gigabytes of total storage. Additional storage for the site is available for a fee of $1.70 per gig per month of 10 Gigabytes of storage.
Please note: Tripepi Smith exercises a good-faith effort to ensure all guidance, recommendations, training, content changes and best practices meet WCAG 2.1 Level AA standards. The City shall review all final deliverables and provide approval before publication. Once approved and published, the City assumes all risk and responsibility for the content's compliance with digital accessibility laws. The City of Camarillo shall indemnify and hold Tripepi Smith harmless from any and all claims, including legal fees and costs, arising from alleged violations of the ADA or other accessibility regulations related to the managed content.
Service Fees
Tripepi Smith prefers that clients pay service providers directly to avoid unnecessary administrative costs. You should also know, however, that we have no economic interest in service providers, unless otherwise specified in this proposal.
If a client asks Tripepi Smith to pay for a service provider bill, we will apply a 10% agency fee to the reimbursement expense. Typical service fees include, but are not limited to: print, mailing, digital advertising, media placements, voiceovers, translations and closed captions.
Partner Access
Tripepi Smith has access to entities that may be relevant to our engagement. These partnerships allow Tripepi Smith to offer clients extra media reach or additional services at partner pricing.
Local Information Network of Knowledge (LINK): www.LocalInfoNetwork.com – A community forum for local government professionals in California to discover and share resources, policies, sample work products, best practices and more.
PublicCEO: www.PublicCEO.com – Digital news about public affairs, reaching over 17,500 California government executives through a daily podcast, job board, video podcast and more.
Civic Business Journal: www.CivicBusinessJournal.com – Digital interest stories on the people, companies and solutions that make local government in California more effective.
FlashVote: www.FlashVote.com – Statistically valid surveying that helps leaders make decisions. • Disclaimer: Tripepi Smith President Ryder Todd Smith is an investor in FlashVote.
Tripepi Smith Talent Solutions: www.TSTalentSolutions.com – A multifaceted recruitment consultancy service, combining local government access with communications to advance talent quests and build culture warriors.
Meltwater: www.TripepiSmith.com/Media-Intelligence – An enterprise-class, comprehensive media monitoring solution that is best combined with Tripepi Smith’s analytics team.
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Tripepi Smith & Associates, Inc.
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EXHIBIT C
EQUAL EMPLOYMENT OPPORTUNITY
PRACTICES PROVISIONS
A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities.
B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age.
C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class.
D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law.
E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law.
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City Council Agenda Report
Meeting Date: October 6, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Management Analyst
Subject
Report on Power Plant Control Center Emergency Sewer Repairs Approved by the City Administrator
Recommendation
Receive and file a report on the emergency sewer repairs performed by Quality Jet Rooter, Inc. at the Power Plant Control Center, in the amount of $34,200, as approved by the City Administrator pursuant to Vernon Municipal Code Section 3.32.250.
Background
On August 6, 2026, the Department of Public Works’ Facilities Maintenance team identified a severe sewer line failure at the Power Plant Control Center. Due to the nature and severity of the failure, immediate corrective action was necessary to mitigate potential public health hazards, prevent disruption to facility operations, and avoid further environmental and infrastructure damage.
Quality Jet Rooter, Inc. (Jet Rooter), which currently provides routine plumbing maintenance services for City facilities, was contacted due to its familiarity with the City's infrastructure and ability to mobilize immediately. On August 7, 2026, Jet Rooter conducted an inspection and identified extensive deterioration of the sewer system requiring emergency repairs. The initial scope of work included the open-trench replacement of approximately 30 linear feet of exterior sewer line and 15 linear feet of interior piping. As excavation progressed, additional damage was discovered extending into the roadway. This required the replacement of an additional seven linear feet of sewer line and an 18-foot drain line. The emergency repairs required specialized construction activities, including concrete and asphalt saw cutting, heavy equipment operation, slurry backfilling, and traffic control. Given the imminent public health and safety concerns, the necessary work was performed prior to formal contract execution and was completed on August 17, 2026.
Jet Rooter’s familiarity with the City's utility infrastructure allowed for immediate mobilization and expedited completion of the repairs, minimizing disruption to the Power Plant Control Center and sufficiently addressing the localized sewer and roadway failures.
The emergency expenditure was warranted pursuant to the emergency procurement provisions of Vernon Municipal Code (VMC) Section 3.32.250, which provide an exception to standard procurement procedures when immediate action is necessary to address an emergency and protect public health, safety, or essential City operations. Pursuant to these provisions, the City Administrator approved payment of the invoice for the emergency repair services for a total amount of $34,200. This report to City Council is provided pursuant to VMC Section 3.32.250 which requires that a full report regarding the circumstances of any such emergency purchase be filed with the City Council within 30 days of the expenditure.
Strategic Plan Goals
Goal 4: Enhance Community Infrastructure and Facilities Item 12 Page 270 of 344
Fiscal Impact
The fiscal impact is not-to-exceed $34,200. Sufficient funds are available in Electric Field Operations, Capital Outlay Account No. 055-050-570-660000 for the current fiscal year.
Attachments
None.
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City Council Agenda Report
Meeting Date: October 6, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Rosemary Lozada, Management Analyst
Subject
Southern California Edison Utility Agreement for the Atlantic Blvd. Bridge Widening Project Recommendation
A. Find that the proposed action is within the Initial Study/Mitigated Negative Declaration prepared for this project pursuant to the provisions under the California Environmental Quality Act (CEQA) in accordance with Section 15063 of the CEQA Guidelines; and B. Approve and authorize the City Administrator to execute the Utility Agreement SCE-01 with Southern California Edison (SCE) for the telecommunication work required for the rehabilitation and widening of the Atlantic Boulevard Bridge in substantially the same form as submitted for a total amount not-to-exceed $$278,998.00.
Background
The Atlantic Boulevard Bridge, originally constructed in 1931, is a vital regional corridor that currently carries over 50,000 vehicles daily. Due to its age and narrow pedestrian and vehicular lanes, the bridge no longer meets modern traffic demands. As part of the ongoing Atlantic Boulevard Bridge Widening Project, various utility relocations, improvements, and related work are required by multiple agencies and utility providers to accommodate the project improvements. In this case, Southern California Edison (SCE) is required to relocate existing telecommunications facilities along Atlantic Boulevard from overhead to underground.
The proposed work consists of relocating existing Southern California Edison (SCE) telecommunications facilities along Atlantic Boulevard from overhead to underground. The work will include the construction of the necessary underground utility infrastructure and installation of a temporary alignment to maintain continuity of service during construction. Upon completion of the underground facilities, the existing overhead facilities will be relocated and/or removed as required. The work is being performed in coordination with the City’s Atlantic Boulevard Bridge Widening Project and is necessary to accommodate the project improvements and utility relocation requirements.
Pursuant to Vernon Municipal Code (VMC) Sections 3.32.110 (A)(2) and 3.32.110 (B)(1), the proposed work is exempt from competitive bidding and competitive selection, as SCE is the owner of the telecommunications facilities and the work will be performed by SCE. Pursuant to VMC Section 3.32.030(A), City Council approval is required for contracts with a total lifetime value exceeding $100,000.
This Utility Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Strategic Plan Goals
Goal 4: Enhance Community Infrastructure and Facilities Fiscal Impact
The fiscal impact is not-to-exceed $278,998.00. SCE will be reimbursed when work is completed and an invoice(s) is submitted during the different phases. Sufficient funds will be made available Item 13 Page 272 of 344
in the General Fund, Public Works Department, Capital Outlay Account No. 011-040-430-660000 and will be budgeted in the FY27-28 subsequent fiscal years.
Attachments
1. Utility Agreement No. SCE-01
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1 of 5
UTILITY AGREEMENT
ADA NOTICE For individuals with sensory disabilities, this document is available in alternate formats. For alternate format information, contact the Forms Management Unit (916) 445-1233, TTY 711, or write to Records and Form Management, 1120 N Street, MS-89, Sacramento, CA 95814.
COUNTY
Los Angeles
ROUTE
Atlantic Blvd. Bridge over the LA River
POST MILE
N/A
EA NO.
07932107L
FEDERAL AID NUMBER
5139(010)
OWNER’S FILE NUMBER
2608
FEDERAL PARTICIPATION/FEDERALLY ELIGIBLE/ NEPA DOCUMENT On the project YES NO On the Utilities YES NO
UTILITY AGREEMENT NO. SCE-01 DATE __________
The City Of Vernon hereinafter called ““LOCAL AGENCY” proposes to reconstruct the Atlantic Blvd. Bridge where it crosses over the Los Angeles River, in the City of Vernon, Los Angeles County, California. and
Name: Southern California Edison (SCE)
Address: 1924 Cashdan Street Compton, CA 90220
hereinafter called “OWNER”, owns and maintains
Transmission telecommunication facilities along Atlantic Blvd. in the City of Vernon. within the limits of LOCAL AGENCY’S (City Of Vernon) project which requires relocation in order to accommodate City Of Vernon’s project. The overhead transmission telecommunication line to be relocated and constructed is more particularly described in two plans, Plan No. 802134393 of 97 sheets and Plan No. 802259754 of 9 sheets to accommodate City Of Vernon’s project.
It is hereby mutually agreed that:
I. WORK TO BE DONE
In accordance with Notice to Owner No. SCE-01 dated 09/04/2026, OWNER shall relocate and construct overhead to underground transmission telecommunication lines and shoofly along Atlantic Blvd., within the City of Vernon’s project.
All work shall be performed substantially in accordance with Plan No. 802134393 of 97 sheets and Plan No. 802259754 of 9 sheets, copies of which is on file in the City Of Vernon office at 4305 Santa Fe Avenue, Vernon CA 90058.
Deviations from the OWNER’s plan described above initiated by either LOCAL AGENCY or OWNER, shall be agreed upon by both parties hereto under a Revised Notice to Owner. Such Revised Notices to Owner, approved by LOCAL AGENCY and agreed to/acknowledged by OWNER, will constitute an approved revision of the OWNER’s plan described above and are hereby made a part hereof. No work under said deviation shall commence prior to written execution by OWNER of the Revised Notice to Owner. Changes in the scope of the work will require an amendment to this Agreement in addition to the revised Notice to Owner.
II.LIABILITY FOR WORK
The existing facilities described in Section I above will be relocated at _100__% LOCAL AGENCY’s (City Of Vernon) expense and _0_% OWNER’s expense in accordance with the easement.
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UTILITY AGREEMENT (Cont.) Page 2 of 5
CITY OF VERNON
UTILITY AGREEMENT NO. SCE-01
III. PERFORMANCE OF WORK
OWNER agrees to perform the herein described work with its own forces or to cause the herein described work to be performed by the OWNER’s contractor, employed by written contract on a continuing basis to perform work of this type, and to provide and furnish all necessary labor, materials, tools, and equipment required therefore, and to prosecute said work diligently to completion.
Use of personnel requiring lodging and meal “per diem” expenses will not be allowed without prior written authorization by LOCAL AGENCY’s representative. Requests for such authorization must be contained in OWNER’s estimate of actual and necessary relocation costs. OWNER shall include an explanation why local employee or contract labor is not considered adequate for the relocation work proposed. Per Diem expenses shall not exceed the per diem expense amounts allowed under the California Department of Human Resources travel expense guidelines.
Work performed by OWNER’s contractor is a public work under the definition of Labor Code Section 1720(a) and is therefore subject to prevailing wage requirements; but, work performed directly by Owner’s employees falls within the exception of Labor Code Section 1720(a)(1) and does not constitute a public work under Section 1720(a)(2) and is not subject to prevailing wages. OWNER shall verify compliance with this requirement in the administration of its contracts referenced above. OWNER shall indemnify and hold LOCAL AGENCY harmless for claims, penalties, or assessments arising out of OWNER’s or OWNER’s contractor(s) failure to comply with prevailing wage obligations, excluding claims, penalties, or assessments caused by PUBLIC AGENCY’s active negligence.
IV.PAYMENT FOR WORK
LOCAL AGENCY shall pay its share of the actual and necessary cost of the herein described work within 45 days after receipt of OWNER’s itemized bill, signed by a responsible official of OWNER’s organization and prepared on OWNER’s letterhead, compiled on the basis of the actual and necessary cost and expense incurred and charged or allocated to said work in accordance with the uniform system of accounts prescribed for OWNER by the California Public Utilities Commission, Federal Energy Regulatory Commission or Federal Communications Commission, whichever is applicable.
Not more frequently than once a month, but at least quarterly, OWNER will prepare and submit detailed itemized progress bills for costs incurred not to exceed OWNER’s recorded costs as of the billing date less estimated credits applicable to completed work. Payment of progress bills not to exceed the amount of this Agreement may be made under the terms of this Agreement. Payment of progress bills which exceed the amount of this Agreement may be made after receipt and approval by CITY OF VERNON of documentation supporting the cost increase and after an Amendment
to this Agreement has been executed by the parties to this Agreement.
The OWNER shall submit a final bill to CITY OF VERNON within 120 days after the completion of the work described in Section I above. If CITY OF VERNON has not received a final bill within 360 days after notification of completion of OWNER’s work described in Section I of this Agreement, and CITY OF VERNON has delivered to OWNER fully executed Director’s Deeds, Consents to Common Use or Joint Use Agreements for OWNER’s facilities (if required), CITY OF VERNON will provide written notification to OWNER of its intent to close its file within 30 days. OWNER hereby acknowledges, to the extent allowed by law, that all remaining costs will be deemed to have been abandoned. If CITY OF VERNON processes a final bill for payment more than 360 days after notification of completion of OWNER’s work, payment of the late bill may be subject to allocation and/or approval by the California Transportation Commission.
The final billing shall be in the form of an itemized statement of the total costs charged to the project, less the credits provided for in this Agreement, and less any amounts covered by progress billings. However, CITY OF VERNON shall not pay final bills, which exceed the estimated cost of this Agreement without documentation of the reason for the increase of said cost from the OWNER and approval of documentation by CITY OF VERNON. Except, if the final bill exceeds the OWNER’s estimated costs solely as the result of a revised Notice to Owner as provided for in Section I, a copy of said revised Notice to Owner shall suffice as documentation.
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UTILITY AGREEMENT (Cont.) Page 3 of 5
CITY OF VERNON
UTILITY AGREEMENT NO. SCE-01
In any event if the final bill exceeds 125% of the estimated cost of this Agreement, an amended Agreement shall be executed by the parties to this Agreement prior to the payment of the OWNERS final bill. Any and all increases in costs that are the direct result of deviations from the work described in Section I of this Agreement shall have the prior concurrence of CITY OF VERNON.
Detailed records from which the billing is compiled shall be retained by the OWNER for a period of three years from the date of the final payment and will be available for audit in accordance with Contract Cost Principals and Procedures as set forth in 48 CFR, Chapter 1, Subpart E, Part 31 by CITY OF VERNON and/or Federal Auditors. In performing work under this Agreement, OWNER agrees to comply with the Uniform System of Accounts for Public Utilities found at 18 CFR, Parts 101, 201, et al., to the extent they are applicable to OWNER doing work on the project that is the subject of this agreement, the contract cost principles and procedures as set forth in 48 CFR, Chapter 1, Part 31, et seq., 23 CFR, Chapter 1, Part 645 and 2 CFR, Part 200, et al. If a subsequent State and/or Federal audit determines payments to be unallowable, OWNER agrees to reimburse CITY OF VERNON upon receipt of CITY OF VERNON billing. If OWNER is subject to repayment due to failure by CITY OF VERNON to comply with applicable laws, regulations, and ordinances, then CITY OF VERNON will ensure that OWNER is compensated for actual cost in performing work under this agreement.”
V. GENERAL CONDITIONS
All costs accrued by OWNER as a result of CITY OF VERNON’s request of December 1, 2022, to review, study and/or prepare relocation plans and estimates for the project associated with this Agreement may be billed pursuant to the terms and conditions of this Agreement.
If CITY OF VERNON’s project which precipitated this Agreement is canceled or modified so as to eliminate the necessity of work by OWNER, CITY OF VERNON will notify OWNER in writing, and CITY OF VERNON reserves the right to terminate this Agreement by Amendment. The Amendment shall provide mutually acceptable terms and conditions for terminating the Agreement.
All obligations of CITY OF VERNON under the terms of this Agreement are subject to the acceptance of the Agreement by CITY OF VERNON’s City Council or the Delegated Authority (as applicable), the passage of the annual Budget Act by the State Legislature, and the allocation of those funds by the California Transportation Commission.
OWNER shall submit a Notice of Completion to the CITY OF VERNON within 30 days of the completion of the work described herein.
Where OWNER has prior rights in areas which will be within the highway right of way and where OWNER's facilities will remain on or be relocated on Caltrans highway right of way, a Joint Use Agreement or Consent to Common Use Agreement shall be executed by the parties.
It is understood that said highway is a Federal aid highway and accordingly, 23 CFR, Chapter 1, Part 645 is hereby incorporated into this Agreement.
In addition, the provisions and guidance of 23 CFR 635.410, Buy America, 2 CFR 184 Buy America Preferences for infrastructure Projects, 2 CFR 200.322, Domestic Preferences for Procurements, and Memo M-24-02, “Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for infrastructure”, from the Office of Management and Budget, Executive Office of the President, dated October 25, 2023, are also incorporated into this agreement.
Owner understand and acknowledges that this project is subject to the requirements of the Buy America law (23 U.S.C., Section 313) and applicable regulations, including 23 CFR 635.410, 2 CFR 184 and 2 CFR 200.322 and FHWA guidance, and will demonstrate Buy America compliance by collecting written certification(s) from the vendor(s) or by collecting written certification(s) from the manufacturer(s) i.e. mill test report (MTR) or letter from Manufacturer on company letter head with an authorized representative signature stating the following, “All manufacturing processes for these materials, including the application of coatings, have occurred in the United States.” Item 13 Page 276 of 344
UTILITY AGREEMENT (Cont.) Page 4 of 5
CITY OF VERNON
UTILITY AGREEMENT NO. SCE-01
All documents obtained to demonstrate Buy America compliance will be held by the OWNER for a period of three (3) years from the date of final payment to the OWNER and will be made available to STATE or FHWA upon request.
One set of copies of all documents obtained to demonstrate Buy America compliance will be attached to, and submitted with, the final invoice.
This does not include products for which waivers have been granted under 23 CFR 635.410, 2 CFR 184, or other applicable provisions.
If, in connection with OWNER’s performance of the Work hereunder, CITY OF VERNON provides to OWNER any materials that are subject to the Buy America Rule, CITY OF VERNON acknowledges and agrees that CITY OF VERNON shall be solely responsible for satisfying any and all requirements relative to the Buy America Rule concerning the materials thus provided (including, but not limited to, ensuring and certifying that said materials comply with the requirements of the Buy America Rule).
CITY OF VERNON further acknowledges that OWNER, in complying with the Buy America Rule, is expressly relying upon the instructions and guidance (collectively, “Guidance”) issued by Caltrans and its representatives concerning the Buy America Rule requirements for utility relocations within the State of California. Notwithstanding any provision herein to the contrary, OWNER shall not be deemed in breach of this Agreement for any violations of the Buy America Rule if OWNER’s actions are in compliance with the Guidance.
THE ESTIMATED COST TO CITY OF VERNON FOR THE ABOVE DESCRIBED WORK IS:
Phase 1 Plan No. 802134393- Shoofly: $136,006.00
Phase 2 Plan No. 802259754- Final: $142,992.00
Total: $278,998.00
Signatures on following page.
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IN WITNESS WHEREOF, the above parties have executed this Agreement the day and year above written.
AGENCY: OWNER:
CITY OF VERNON SOUTHERN CALIFORNIA EDISON
By By
Brian Saeki Date Brandon Ritz Date
City Administrator Project Manager
ATTEST:
By
Genoveva Rocha
City Clerk
Date
APPROVED AS TO FORM:
By
Zaynah Moussa-Milward
City Attorney
Date
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City Council Agenda Report
Meeting Date: October 6, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Public Utilities Resource Adequacy Plan for 2027
Recommendation
A. Find that approval of the proposed action is exempt from California Environmental Quality Act (CEQA) review, because it is an administrative and fiscal activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines Section 15378;
B. Adopt Resolution No. 2026-040 approving and adopting the Vernon Public Utilities Department Resource Adequacy Plan for 2027, which includes the Coincident Peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity Criteria, and the Qualifying Capacity from such resources, the City’s Resource Adequacy and Supply Data and approving the resources used to satisfy the California Independent System Operator’s (CAISO) tariff requirements and repealing Resolution No. 2025-028; and C. Authorize staff to submit the Vernon Public Utilities Department’s Resource Adequacy Plan for 2027 and the Monthly Resource Adequacy and Supply Data to the CAISO.
Background
As the electric grid operator for the State, the California Independent System Operator (CAISO) is responsible for maintaining a reliable electric grid. One of the keys to maintaining a reliable grid is to ensure that the electric system has adequate resources to meet its electric demand. To do this, the CAISO has established provisions in its Tariff to ensure that Load Serving Entities (LSE), such as the City of Vernon (City), will secure sufficient resources to meet their customers’ energy demands.
Pursuant to Section 40 of the CAISO Tariff, LSE must annually provide a Resource Adequacy demonstration or plan to the CAISO. The Resource Adequacy demonstration must include: (1) a coincident peak Demand Forecast, (2) Reserve Margin, (3) Qualifying Capacity Criteria, (4) annual and monthly Resource Adequacy and Supply data, (5) a list of Resource Adequacy Resources that will be counted on to satisfy its Local Capacity Requirement, and (6) Flexible Resource Adequacy Capacity Requirement. The Resource Adequacy demonstration categories are each defined and described in detail below.
1. Coincident peak Demand Forecast is defined as the amount of the City’s load contributing to the CAISO system peak. This is calculated by first establishing a monthly peak Demand Forecast for the upcoming year and applying a projected load growth rate if appropriate.
Based on staff’s analysis of actual data, no adjustment is deemed necessary for 2027.
To establish the Coincident Peak Demand Forecast for 2027, staff have used its monthly peak Demand Forecast (as listed in Table 1 of the Resource Adequacy Plan for 2027) and multiplied it by the coincident peak factor provided by the California Energy Commission. The results of this calculation are the Coincident Peak Demand Forecast and are listed in Table 2 of the Resource Adequacy Plan for 2027.
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2. Planning Reserve Margin is defined as the amount of Resource Adequacy Capacity, and LSE must maintain above its coincident peak Demand Forecast. The Electric Utility governing board of the Vernon City Council has established its Planning Reserve Margin at 15%.
3. Qualifying Capacity Criteria is the criteria used to determine the type of resources that can be used to meet an LSE’s capacity obligation and the amount of capacity (Qualifying Capacity) from such resources. The City has elected to use the following resources to meet its capacity needs and the qualifying capacity of each of them:
a. Power supply contract(s) entered through Western Systems Power Pool (WSPP) Agreement, Market Redesign and Technology Upgrade (MRTU) Amendment, and any product defined as a Scheduling Coordinator (SC)-to-SC traded product for which an Inter-SC Trade (IST) can be submitted to the CAISO. b. Vernon Purchase Power Contract with the Southern California Public Power Authority (SCPPA) for the SCPPA’s share of the Palo Verde Generating Station.
The qualified capacity shall be 4.9% of SCPPA’s share of the Palo Verde Generating Station.
c. The contract between the United States Department of Energy Western Area Power Administration Boulder Canyon Project, and the City of Vernon. The Qualifying Capacity will be based on the most current schedule for the available capacity from the Boulder Canyon Project.
d. The generating units and system units within the City’s electric system. The amount of Qualifying Capacity of such units shall not exceed the Net Qualifying Capacity (NQC) as determined and listed annually by the CAISO.
e. Long-term power purchase contracts for 5 years or longer. The Qualifying Capacity will be based on the City of Vernon’s percentage share of the NQC for each contract, as determined and listed annually by CAISO.
f. Capacity from a Participating Generator, System Unit, or System Resource as defined in the CAISO Tariff.
g. Interruptible Service agreements between the City of Vernon and its electrical customers. The Qualifying Capacity will be based on the contracted amount the electrical customer has agreed to interrupt.
h. Battery Energy Storage System (BESS)/Non-Generator Resources: Power Supply contracts for BESS or Non-Generator Resource as defined by the CAISO, entered through a power purchase agreement, shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity shall be based on the NQC value as determined and listed annually by the CAISO and the City of Vernon’s percentage share of NQC for each contract.
4. Local Capacity Requirement is defined as the monthly allocation of the local capacity (Los Angeles Basin) that the City must make available to the CAISO and demonstrated in the CAISO-approved Resource Adequacy data templates. Resources located in the Los Angeles Basin area shall count toward the City’s local capacity requirement.
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5. Flexible Resource Adequacy Capacity Requirement is defined as the monthly allocation of the Flexible Resource Adequacy Capacity Requirement that the City must make available to CAISO and demonstrated in the CAISO-approved Resource Adequacy data templates. Flexible resources can ramp up and down quickly and can start and shut down multiple times per day (i.e., flexible capacity). The Malburg Generating Stations and the City-owned H. Gonzales units shall count towards the City’s flexible capacity requirement.
6. Annual and monthly Resource Adequacy and Supply data - must be submitted to the CAISO on the established templates and the set schedule dates. The Resource Adequacy data templates shall identify all qualified resources committed to meeting the City’s Resource Adequacy obligations and the adopted Reserve Margin. Annual Resource Adequacy Plans data must demonstrate that 90% of the Coincident Peak Demand Forecast plus planning Reserve Margin and Flexible Resource Adequacy Capacity Requirement has been secured, and 100% of the total local Resource Adequacy requirement has been secured. Monthly Resource Adequacy and Supply data templates must demonstrate that 100% of the Coincident Peak Demand Forecast plus planning Reserve Margin, Flexible Resource Adequacy Capacity Requirement, and local Resource Adequacy requirement have been met. Monthly Resource Adequacy and Supply data may be adjusted for seasonal variations in the City’s load or changes in its contracted/owned resources.
Consistent with the CAISO Tariff requirements, VPU staff has prepared the Vernon Public Utilities Resource Adequacy Plan for 2027 and now seeks authorization from the City Council to submit the Plan and the Monthly Resource Adequacy and Supply data to the CAISO.
Strategic Plan Goals
Goal 3: Advance Sustainability and Environmental Stewardship Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. Resolution No. 2026-040
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RESOLUTION NO. 2026-040
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND ADOPTING THE VERNON PUBLIC UTILITIES
DEPARTMENT RESOURCE ADEQUACY PLAN FOR 2027, WHICH
INCLUDES THE COINCIDENT PEAK DEMAND FORECAST, THE
PLANNING RESERVE MARGIN, THE QUALIFYING CAPACITY
CRITERIA, AND THE QUALIFYING CAPACITY FROM SUCH
RESOURCES, THE CITY’S RESOURCE ADEQUACY AND SUPPLY
DATA, APPROVING THE RESOURCES USED TO SATISFY THE
CALIFORNIA INDEPENDENT SYSTEM OPERATOR’S TARIFF
REQUIREMENTS AND REPEALING RESOLUTION NO. 2025-028
SECTION 1. Recitals.
A. The City of Vernon (City) is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution, and sale of electric capacity and energy.
B. The City has executed a Metered Subsystem Agreement (MSS Agreement) with the California Independent System Operator (CAISO).
C. The City is considered a Load Serving Entity (LSE) under certain terms of the CAISO’s Tariff (Tariff).
D. The Tariff requires each LSE to establish and submit to CAISO an annual Resource Adequacy Plan, which includes a coincident peak Demand Forecast, a Planning Reserve Margin, Qualifying Capacity Criteria, and a Supply Plan.
E. The Tariff also requires each LSE to submit monthly Resource Adequacy Plans and Supply Plans.
F. The City has reviewed the historical and expected demand for and supplies of electricity within its distribution system, including the likely peak demand for electricity within the City’s distribution system throughout 2027, the available generation and other capacity to serve that demand, and constraints which might impact the availability of capacity to serve the City’s projected peak demand.
G. Based upon staff analysis, no load growth adjustment is appropriate for 2027.
H. The City finds that the default 15% Reserve Margin set forth in the Resource Adequacy provisions of the Market Redesign and Technology Upgrade (MRTU) Tariff is sufficient for planning purposes.
I. The City finds that the Projected Load forecast specified in the City of Vernon Item 14 Page 282 of 344
Resolution No. 2026-040
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Demand Forecast for 2027, Planning Reserve Margin, and the Qualifying Capacity Criteria are sufficient and appropriate to be used in determining the amount of Qualifying Capacity needed to meet the Annual Resource Adequacy and Supply Plan requirement.
J. Staff recommends City Council’s adoption of the following requirements for the annual and monthly submittals: (a) annual submittals must demonstrate that (i) 90% of the total system Coincident Peak Demand Forecast, plus Planning Reserve Margin and Flexible Resource Adequacy Capacity Requirement has been secured, and (ii) 100% of the total local Resource Adequacy requirement has been secured; and (b) monthly submittals must demonstrate that 100% of the Coincident Peak Demand Forecast plus planning Reserve Margin, Flexible Resource Adequacy Capacity Requirement and local Resource Adequacy requirement has been met.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon finds that this action is exempt from California Environmental Quality Act (CEQA) review, because it is an administrative and fiscal activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines Section 15378.
SECTION 4. The City Council of the City of Vernon hereby approves and adopts the Vernon Public Utilities Resource Adequacy Plan for Calendar Year 2027 (Annual Resource Adequacy Plan), which includes the coincident peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity Criteria and the Qualifying Capacity from such resources, the annual Resource Adequacy and Supply data, and the Resource Adequacy resources that will be used to satisfy the City’s Local Capacity Requirement for 2026, which is attached hereto as Exhibit A.
SECTION 5. The City Council of the City of Vernon also adopts the following Annual Resource Plan requirements: (a) annual submittals must demonstrate that (i) 90% of the total system Coincident Peak Demand Forecast, plus Planning Reserve Margin and Flexible Resource Adequacy Capacity Requirement has been secured; and (ii) 100% of the total local Resource Adequacy requirement has been secured; and (b) monthly submittals must demonstrate that 100% of the Coincident Peak Demand Forecast plus planning Reserve Margin, Flexible Resource Adequacy Capacity Requirement and local Resource Adequacy requirement has been met.
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Resolution No. 2026-040
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SECTION 6. All resolutions or parts of resolutions, specifically Resolution No. 2025-028, not consistent with or in conflict with this resolution, are hereby repealed.
SECTION 7. The City Clerk, or Deputy City Clerk, shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED October 6, 2026.
MELISSA YBARRA, Mayor
ATTEST:
GENOVEVA ROCHA, City Clerk
APPROVED AS TO FORM:
ZAYNAH MOUSSA-MILWARD,
City Attorney
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Resolution No. 2026-040
_______________________
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF VERNON )
I do hereby certify that the attached is a true copy of Resolution No. 2026-040 that was passed and adopted at the Special Meeting held on October 6, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
GENOVEVA ROCHA, City Clerk
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CITY OF VERNON
PUBLIC UTILITIES DEPARTMENT’S
RESOURCE ADEQUACY PLAN
CALENDAR YEAR 2027
2027 Resource Adequacy Plan
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EXHIBIT A
Resolution No. 2026-040
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Background:
The Resource Adequacy (RA) provisions of the California Independent System Operator’s (CAISO) tariff require the Scheduling Coordinator (SC) of a Load Serving Entity (LSE), such as the City of Vernon, to establish and submit the following information upon approval from its Local Regulatory Authority:
1. Coincident Peak Demand Forecast for its load,
2. Planning Reserve Margin,
3. Qualifying Capacity Criteria that will be used for determining qualifying resource types and the Qualifying Capacity from such resources,
4. an annual/monthly RA and supply data, and
5. a list of resources used to satisfy the LSE’s Local Capacity Requirement and Flexible Resource Adequacy Capacity Requirement.
Staff has prepared the attached “City of Vernon Public Utilities Department’s Resource Adequacy Plan for Calendar Year 2027,” which is consistent with the CAISO Tariff requirements. The following is a discussion of each of the CAISO Tariff requirements and how the City will meet each requirement.
Coincident Peak Demand Forecast:
Vernon’s municipal load resides within the CAISO control area. CAISO, as the balancing authority, is responsible for meeting reliability criteria established by the Western Electricity Coordinating Council (WECC). As such CAISO has entered into agreements with various market participants, Generators, Scheduling Coordinators, Participating Transmission Owners, Utility Distribution Companies, and Metered Subsystems (MSS), which impose certain responsibilities on parties to establish a reliable system. One of those responsibilities is to have operating reserves that meet the WECC minimum requirements.
The CAISO’s goal in considering reserve requirements is to balance available capacity with demand across the entire CAISO control area, and therefore, CAISO’s primary concern is with the time and amount of peak demand on the CAISO controlled transmission system (the “system peak”). In order to reduce demand during the period of the system peak (and therefore, to lower the peak demand on the transmission system), utilities generally offer retail rate structures designed to encourage load shifting away from the on-peak period. Such efforts are intended to achieve on-peak demand reduction and lower the need to build new generation to meet peak demand. Vernon has adopted a rate structure that has successfully shifted the peak demand period for Vernon’s system to a time that is generally earlier than the time of the CAISO system peak.
Vernon’s share of the capacity needed to meet CAISO’s control area capacity requirements may be established by determining the amount of Vernon’s load that contributes to the CAISO system peak. Vernon’s load that contributes to the CAISO system peak is the City of Vernon coincident peak Demand. The process to establish 2027 Resource Adequacy Plan
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Vernon’s monthly coincident peak Demand Forecast consists of the following three steps:
1. Establish Monthly Vernon System Peak Demand Forecast for 2027 To establish the City of Vernon’s system peak demand forecast, Staff performs an analysis on annual changes in the City’s energy demand peaks during a five-year period. Based on the results of the analysis, Staff forecasts a load growth rate for the upcoming calendar year (Exhibit 1). This year’s analysis of the City of Vernon’s system peak demand demonstrates an inconsistent trend year after year between 2022 and 2026. Closer review of Exhibit 1 reveals that more recently, the growth rate from 2023 to 2026 decreased by 0.4%. Based on the current load trend and recent years of inconsistencies, Staff concluded that a zero-load growth adjustment is an appropriate forecast for calendar year 2027. Exhibit 2 shows the determination of the projected system peak demand for 2027 based on no load growth adjustment. The projected system peak demand for the City of Vernon is shown below in Table 1.
Table 1
Projected
Load
2027 MW
January 157.53
February 158.51
March 173.14
April 161.77
May 166.22
June 171.92
July 183.39
August 186.85
September 173.86
October 166.14
November 164.99
December 164.73
2. Establish Coincidental Peak Factor
The coincidental peak factor is the percentage of the City of Vernon’s energy demand at the time of the CAISO system peak demand. As set forth in Section 40 of the CAISO Tariff, the coincidental peak factor for each month has been calculated and provided to the City annually by the California Energy Commission (CEC). The monthly coincidental peak factor is shown in column C of Exhibit 3. 2027 Resource Adequacy Plan
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3. Calculate Monthly Coincident Peak Demand Forecast
The City of Vernon’s Coincident Peak Demand forecast is calculated as the mathematical product of the City of Vernon’s forecasted System peak demand and the coincidental peak factor. This reflects the City of Vernon’s projected demand at the time of the CAISO system’s peak demand for each month. The monthly Coincident Peak Demand Forecast is calculated and listed in column D of Exhibit 3 for the period of January through December 2027. It is also shown below in Table 2.
Table 2
Demand
Forecast
2027 MW
January 126.5
February 121.8
March 137.1
April 132.2
May 125.5
June 139.2
July 148.9
August 151.3
September 142.2
October 137
November 140.4
December 139.5
Planning Reserve Margin:
The Planning Reserve Margin is the amount of Resource Adequacy Capacity that an LSE must maintain above its coincident peak Demand Forecast. Historically, the City of Vernon has established its Planning Reserve Margin at 15%. Staff recommends that the City Council maintain the Planning Reserve Margin at 15%. The 15% Planning Reserve Margin is used to establish the monthly Resource Adequacy obligation for the City of Vernon as listed in column E of Exhibit 3.
Qualifying Capacity:
An LSE must provide the CAISO with a description of the criteria that will be used to determine the type of resources that can be used to meet its capacity obligation and the amount of capacity (Qualifying Capacity) from such resources. Historically, Vernon has used the following criterion to determine whether a resource qualifies: It qualifies if Vernon has a contractual right to the power or has an interruptible service 2027 Resource Adequacy Plan
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agreement with a customer. The following eight resources are among those that meet this criterion and provide Qualifying Capacity. The eligible Qualifying Capacity for the eight applicable resource types is as follows:
1. CAISO IST-enabled Product. Power supply contract/s entered through WSPP Agreement (MRTU Amendment) and defined as any SC-to-SC traded product for which an IST (Inter-SC Trades) can be submitted and for which CAISO will make payment or issue an invoice, including Energy, Tier I IFM Bid Cost Recovery Obligations, and Ancillary Service Obligation trades, as each is defined in the Tariff.
2. Palo Verde. Vernon Purchase Power Contract with SCPPA for 4.9% of SCPPA’s share of Palo Verde Nuclear Generating Station (Palo Verde) shall be eligible as Qualifying Capacity. The power is scheduled as an import generally at Westwing Substation through CAISO’s entitlement of transmission from Westwing to SP-15.
3. Boulder Canyon. Contract NO 16-DSR-12650 between United States Department of Energy Western Area Power Administration Boulder Canyon Project and City of Vernon, California for Electric Service shall be eligible to count as Qualifying Capacity. The power is scheduled as an import at Mead Substation generally through CAISO’s entitlement of transmission from Mead Substation to SP-15. The amount of Qualifying Capacity will be based on the most current schedule for the available capacity from the Boulder Canyon Project at the time of submittal of the Resource Adequacy Plan.
4. Vernon Units. Generating units and system units (excluding Vernon diesel generating units) within Vernon’s MSS, including the Malburg Generating Station and the City-owned H. Gonzales units, as reflected in Schedule 14 of Vernon’s MSS Agreement with CAISO shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity of such units shall not exceed the Net Qualifying Capacity (NQC) as determined and listed annually by the CAISO.
5. Long-Term Power Purchase Contracts. Long-term power supply contracts (5 years or greater) entered through a power purchase agreement shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity will be based on the City of Vernon’s percentage share of the Net Qualifying Capacity of each contract. For the upcoming year, the following contracts will count as Qualifying Capacity, Antelope DSR 1 Solar Project, Astoria 2 Solar Project, Daggett Solar Project and Puente Hills Landfill Gas-To-Energy Facility.
6. Other Units. All other capacity from a Participating Generator, a System Unit, or a System Resource, as defined in the CAISO Tariff, shall be eligible as Qualifying Capacity. System Resources, however, must be located in the CAISO control area or have a firm transmission path from source to the CAISO control area. Such criteria for firm transmission facilities over the CAISO control area can be satisfied with the possession of a firm transmission right from the 2027 Resource Adequacy Plan
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CAISO on the path associated with the System Resource. Firm transmission rights provide a physical priority right to schedule over congested paths.
7. Interruptible Service Agreements. Interruptible Service Agreements with the City’s Electrical customers. Currently, Vernon has an Interruptible Service Agreement where the customer agrees to interrupt up to 27 MW of load within a 30-minute notification. A period of interruption can occur upon notification from the Independent System Operator (ISO) requiring the City to shed load or upon the unscheduled outage of the Malburg Generating Station (MGS) or any other generating unit internal to the City’s system.
8. Battery Energy Storage System (Non-Generator Resources). Power Supply contracts for BESS or Non-Generator Resource, as defined by the CAISO, entered through a power purchase agreement, shall be eligible to count as Qualifying Capacity. The amount of Qualifying Capacity shall be based on Vernon’s percentage share of the Net Qualifying Capacity of each contract.
Local Capacity Area Resources:
In accordance with Section 40.3 of the CAISO Tariff, CAISO annually publishes a Local Capacity Technical Study that determines the amount of local capacity needed in the Los Angeles Basin area that must be available to CAISO. Based on the Local Capacity Technical Study, the CAISO allocates responsibility for Local Capacity Area Resources to the Scheduling Coordinators of the LSEs. The CAISO validates that the Scheduling Coordinator lists enough local resources in its Resource Adequacy data templates to satisfy its obligation. Staff have prepared the Resource Adequacy data templates (Exhibit 4), which list the Resource Adequacy Resources, including the Malburg Generating Station, Puente Hills Landfill Gas-To-Energy Facility, and the Cityowned H. Gonzales units that will be counted on to satisfy the Local Area Capacity requirement for the City of Vernon. Additionally, any Interruptible Service Agreements with the City’s electric customers shall count towards the City’s Local Capacity requirement.
Flexible Resource Adequacy Capacity:
In accordance with Section 40.10 of the CAISO Tariff, CAISO annually conducts a study to determine the Flexible Capacity Need for the CAISO Balancing Authority Area for each month of the next calendar year and provides the results of the study to each Local Regulatory Authority in the CAISO Balancing Authority Area. Flexible resources are resources with the potential to ramp up and down quickly and have the capability to start and shut down multiple times per day. The need for flexible capacity is a result of the CAISO managing a “greener” grid. The increase of variable energy resources and distributed generation has presented significant challenges to grid reliability. These types of resources have continued to grow and have increased supply and load variability and unpredictability within the CAISO system. In order for the CAISO to efficiently operate the grid, it needs measures to ensure that flexible resources are economically bid into the CAISO markets so that they may be optimally dispatched.
2027 Resource Adequacy Plan
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The CAISO study calculates the total system amount of Flexible Capacity needed for each of the three Flexible Capacity categories: (1) Base ramping flexibility; (2) Peak ramping flexibility; and (3) Super-peak ramping flexibility. Section 40.10.3 of the CAISO Tariff sets the criteria needed by resources to qualify for each category. For the Calendar Year 2027, CAISO has determined the system-wide Flexible Capacity needs and has notified each LSE of their monthly requirement. Exhibit 7 lists the City’s Flexible Capacity requirement by month and category. Furthermore, CAISO has established the Effective Flexible Capacity for each resource and the category of Flexible Capacity each resource will qualify for the upcoming compliance year. For Calendar Year 2027, CAISO has established 105 MW of category 1 base ramping flexible resources adequacy capacity for Malburg Generating Station, and 5.75 MW category 1 base ramping flexible resource adequacy capacity for both H. Gonzales Units (Exhibit 8). CAISO Tariff Section 40.10.5.1 requires the Scheduling Coordinators of LSEs to identify the resources they will rely on to satisfy their Flexible Resource Adequacy Capacity on both the annual and monthly Resource Adequacy data templates.
Staff prepared the Resource Adequacy data templates (Exhibit 4), which list the Resource Adequacy Resources, including the Malburg Generating Station and the City-owned H. Gonzales units, that will be counted on to satisfy the Flexible Resource Adequacy Capacity requirement for the City of Vernon.
Annual and Monthly Resource Adequacy and Supply data:
The CAISO Tariff requires that the scheduling coordinator of an LSE provide an annual and a monthly Resource Adequacy Plan (Section 40.2.2.4) using the required templates and submitted on the set schedules. Furthermore, the scheduling coordinator of a resource providing resource adequacy must submit both an annual and monthly Supply Plan (Section 40.4.7.1) using the required templates and submitted on the set schedules.
Staff asks that City Council adopt the following two requirements for both the annual and monthly Supply Plan submittals:
1. Annual: submittals must demonstrate that 90% of the forecasted coincident peak demand plus planning reserves margin and flexible resource adequacy requirement has been secured; and 100% of the total local resource adequacy requirement has been secured.
2. Monthly: submittals must demonstrate 100% of the forecasted coincident peak Demand plus planning reserves margin, flexible resource adequacy requirement, and local resource adequacy requirement have been met. Data on the monthly plans may be adjusted for seasonal variations in the City’s load or changes in its contracted/owned resources.
Therefore, as required by the CAISO, the City of Vernon, as an LSE and a scheduling coordinator for resource adequacy resources, must submit a Resource Adequacy 2027 Resource Adequacy Plan
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and Supply Plan on the set schedules. Staff prepared the Annual Resource Adequacy (Exhibit 5) and Supply data (Exhibit 6 & 7) for calendar year 2027. Staff will submit the monthly Resource Adequacy and Supply data to the CAISO as they become due.
The data to be submitted on the monthly plans will demonstrate that 100% of applicable requirements have been met and may be adjusted from the annual Resource Adequacy and Supply Plan for seasonal variations, as well as load and resource changes. The monthly plan is due to the CAISO 45 days prior to the beginning of the month.
2027 Resource Adequacy Plan
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Exhibit 1
Year Peak % Inc./Dec.
(A) (B) (C)
1 2022 187.4
2 2023 176.1 -5.989%
3 2024 175.5 -0.341%
4 2025 167.4 -4.660%
5 2026 183.4 9.585%
6 Average 178.0 -0.4%
A Year
B Source: (City Historical Sytem Peak Load Data)
C % Increase/Decrease from previous year.
Note: The five year system peak demand average will not be used in this year's RA Plan.
It has been determined that no load growth is appropriate for calendar 2027. 5 year Sytem Peak Demand Analysis
2027 Resource Adequacy Plan
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Exhibit 2
Month
Forecast based
2025-2026
(Actual City
System Load)
2027
Projected
System Peak
Load
(A) (B) (C)
1 January '26 157.53 157.53
2 February '26 158.51 158.51
3 March '26 173.14 173.14
4 April '26 161.77 161.77
5 May '26 166.22 166.22
6 June '26 171.92 171.92
7 July '26 183.39 183.39
8 August '26 186.85 186.85
9 September '25 173.86 173.86
10 October '25 166.14 166.14
11 November '25 164.99 164.99
12 December '25 164.73 164.73
A Month and Year
B Source: (Forecasted Peak Based on Historical System Peak Load Data) C Projected Load for 2027 (no load growth is applied)
January - December 2027 Projected Load
2027 Resource Adequacy Plan
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Exhibit 3
Month
Vernon
System Peak
Demand
Coincidental
Peak Factor
Coincident
Peak Demand
Forecast
RA Capacity
Requirement
(A) (B) (C) (D) (E)
1 January 157.5 80.3% 126.5 145.5
2 February 157.7 76.8% 121.1 139.3
3 March 153.5 79.2% 121.5 139.8
4 April 154.6 81.7% 126.4 145.3
5 May 157.9 75.5% 119.2 137.1
6 June 167.4 81.0% 135.5 155.8
7 July 164.3 81.2% 133.3 153.3
8 August 166.5 81.0% 134.8 155.0
9 September 172.8 81.8% 141.4 162.6
10 October 161.9 82.5% 133.6 153.6
11 November 152.7 85.1% 129.9 149.4
12 December 149.5 84.7% 126.6 145.6
A Month
B Source: (Exhibit 2 Column E)
C Source: CEC
D Product of B and C
E Product of D and 115% (115% reflects Planning Reserve Margin) January - December 2027 Resource Adequacy Requirement
2027 Resource Adequacy Plan
11 of 20
Resolution No. 2026-040
________________________
Item 14 Page 296 of 344
Report Type Annual (Monthly/ Annual)
Report Date 10/1/2026 (MM/DD/YYYY)
Name of Load Serving Entity (LSE): City of Vernon (Text Field) Scheduling Coordinator (SCID): LVERN (AAAA)
Person who prepared this RA Plan (Name): Efrain Sandoval (Text Field) Title: Principal Resource Scheduler/Trader (Text Field) Primary Contact
Name: Efrain Sandoval (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field) Address: 4305 Santa Fe Ave. (Text Field)
Address 2: (Optional, Text Field)
City: Vernon (Text Field)
State: CA (Text Field)
Zip: 90058 (Numeric)
Telephone: (323) 826-1424 (Numeric)
Email [email protected] (Text Field)
Back-Up Contact
Name: Shawn Sharif (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field) Telephone: (323)826-3625 (Numeric)
Email: [email protected] (Text Field)
Exhibit 4
2027 Resource Adequacy Plan
12 of 20
Resolution No. 2026-040
________________________
Item 14 Page 297 of 344
Resource ID in CAISO Master File
Local RA
Capacity (MW
00.00 No
Rounding)
System RA
Capacity (MW
00.00 No
Rounding)
Flexible RA
Capacity (MW
00.00 No
Rounding)
Flex
Category
RA Capacity
Effective Start
Date
(mm/dd/yyyy)
RA Capacity
Effective End
Date
(mm/dd/yyyy)
VERNON_6_MALBRG 44 95 105 1 1/1/2027 1/31/2027
VERNON_6_MALBRG 44 95 105 1 2/1/2027 2/28/2027
VERNON_6_MALBRG 44 95 105 1 3/1/2027 3/31/2027
VERNON_6_MALBRG 44 95 105 1 4/1/2027 4/30/2027
VERNON_6_MALBRG 44 95 105 1 5/1/2027 5/31/2027
VERNON_6_MALBRG 44 95 105 1 6/1/2027 6/30/2027
VERNON_6_MALBRG 44 95 105 1 7/1/2027 7/31/2027
VERNON_6_MALBRG 44 95 105 1 8/1/2027 8/31/2027
VERNON_6_MALBRG 44 95 105 1 9/1/2027 9/30/2027
VERNON_6_MALBRG 44 95 105 1 10/1/2027 10/31/2027
VERNON_6_MALBRG 44 95 105 1 11/1/2027 11/30/2027
VERNON_6_MALBRG 44 95 105 1 12/1/2027 12/31/2027
VERNON_6_GONZL1 5.75 5.75 1 1/1/2027 1/31/2027
VERNON_6_GONZL1 5.75 5.75 1 2/1/2027 2/28/2027
VERNON_6_GONZL1 5.75 5.75 1 3/1/2027 3/31/2027
VERNON_6_GONZL1 5.75 5.75 1 4/1/2027 4/30/2027
VERNON_6_GONZL1 5.75 5.75 1 5/1/2027 5/31/2027
VERNON_6_GONZL1 5.75 5.75 1 6/1/2027 6/30/2027
VERNON_6_GONZL1 5.75 5.75 1 7/1/2027 7/31/2027
VERNON_6_GONZL1 5.75 5.75 1 8/1/2027 8/31/2027
VERNON_6_GONZL1 5.75 5.75 1 9/1/2027 9/30/2027
VERNON_6_GONZL1 5.75 5.75 1 10/1/2027 10/31/2027
VERNON_6_GONZL1 5.75 5.75 1 11/1/2027 11/30/2027
VERNON_6_GONZL1 5.75 5.75 1 12/1/2027 12/31/2027
VERNON_6_GONZL2 5.75 5.75 1 1/1/2027 1/31/2027
VERNON_6_GONZL2 5.75 5.75 1 2/1/2027 2/28/2027
VERNON_6_GONZL2 5.75 5.75 1 3/1/2027 3/31/2027
VERNON_6_GONZL2 5.75 5.75 1 4/1/2027 4/30/2027
VERNON_6_GONZL2 5.75 5.75 1 5/1/2027 5/31/2027
VERNON_6_GONZL2 5.75 5.75 1 6/1/2027 6/30/2027
VERNON_6_GONZL2 5.75 5.75 1 7/1/2027 7/31/2027
VERNON_6_GONZL2 5.75 5.75 1 8/1/2027 8/31/2027
VERNON_6_GONZL2 5.75 5.75 1 9/1/2027 9/30/2027
VERNON_6_GONZL2 5.75 5.75 1 10/1/2027 10/31/2027
VERNON_6_GONZL2 5.75 5.75 1 11/1/2027 11/30/2027
VERNON_6_GONZL2 5.75 5.75 1 12/1/2027 12/31/2027
VERN_MEAD230_I_UC_IMS001 22 1/1/2027 1/31/2027
VERN_MEAD230_I_UC_IMS001 22 2/1/2027 2/28/2027
VERN_MEAD230_I_UC_IMS001 22 3/1/2027 3/31/2027
VERN_MEAD230_I_UC_IMS001 22 4/1/2027 4/30/2027
VERN_MEAD230_I_UC_IMS001 22 5/1/2027 5/31/2027
VERN_MEAD230_I_UC_IMS001 22 6/1/2027 6/30/2027
VERN_MEAD230_I_UC_IMS001 22 7/1/2027 7/31/2027
VERN_MEAD230_I_UC_IMS001 22 8/1/2027 8/31/2027
VERN_MEAD230_I_UC_IMS001 22 9/1/2027 9/30/2027
VERN_MEAD230_I_UC_IMS001 22 10/1/2027 10/31/2027
VERN_MEAD230_I_UC_IMS001 22 11/1/2027 11/30/2027
VERN_MEAD230_I_UC_IMS001 22 12/1/2027 12/31/2027
VERN_WESTWING500_I_UC_IMS001 11.59 1/1/2027 1/31/2027
VERN_WESTWING500_I_UC_IMS001 11.59 2/1/2027 2/28/2027
VERN_WESTWING500_I_UC_IMS001 11.59 3/1/2027 3/31/2027
VERN_WESTWING500_I_UC_IMS001 11.59 4/1/2027 4/30/2027
VERN_WESTWING500_I_UC_IMS001 11.59 5/1/2027 5/31/2027
VERN_WESTWING500_I_UC_IMS001 11.59 6/1/2027 6/30/2027
VERN_WESTWING500_I_UC_IMS001 11.59 7/1/2027 7/31/2027
VERN_WESTWING500_I_UC_IMS001 11.59 8/1/2027 8/31/2027
VERN_WESTWING500_I_UC_IMS001 11.59 9/1/2027 9/30/2027
VERN_WESTWING500_I_UC_IMS001 11.59 10/1/2027 10/31/2027 VERN_WESTWING500_I_UC_IMS001 11.59 11/1/2027 11/30/2027 VERN_WESTWING500_I_UC_IMS001 11.59 12/1/2027 12/31/2027 CMBLND_2_DS2BT2 30 60 1 1/1/2027 1/31/2027
CMBLND_2_DS2BT2 30 60 1 2/1/2027 2/28/2027
CMBLND_2_DS2BT2 30 60 1 3/1/2027 3/31/2027
CMBLND_2_DS2BT2 30 60 1 4/1/2027 4/30/2027
CMBLND_2_DS2BT2 30 60 1 5/1/2027 5/31/2027
CMBLND_2_DS2BT2 30 60 1 6/1/2027 6/30/2027
CMBLND_2_DS2BT2 30 60 1 7/1/2027 7/31/2027
CMBLND_2_DS2BT2 30 60 1 8/1/2027 8/31/2027
CMBLND_2_DS2BT2 30 60 1 9/1/2027 9/30/2027
CMBLND_2_DS2BT2 30 60 1 10/1/2027 10/31/2027
CMBLND_2_DS2BT2 30 60 1 11/1/2027 11/30/2027
CMBLND_2_DS2BT2 30 60 1 12/1/2027 12/31/2027
CMBLND_2_DS2SR2 0.09 1/1/2027 1/31/2027
CMBLND_2_DS2SR2 0.09 2/1/2027 2/28/2027
CMBLND_2_DS2SR2 0.09 3/1/2027 3/31/2027
2027 Resource Adequacy Plan
13 of 20
Resolution No. 2026-040
________________________
Item 14 Page 298 of 344
Resource ID in CAISO Master File
Local RA
Capacity (MW
00.00 No
Rounding)
System RA
Capacity (MW
00.00 No
Rounding)
Flexible RA
Capacity (MW
00.00 No
Rounding)
Flex
Category
RA Capacity
Effective Start
Date
(mm/dd/yyyy)
RA Capacity
Effective End
Date
(mm/dd/yyyy)
CMBLND_2_DS2SR2 0.29 4/1/2027 4/30/2027
CMBLND_2_DS2SR2 0.9 5/1/2027 5/31/2027
CMBLND_2_DS2SR2 25.51 6/1/2027 6/30/2027
CMBLND_2_DS2SR2 29.54 7/1/2027 7/31/2027
CMBLND_2_DS2SR2 29.54 8/1/2027 8/31/2027
CMBLND_2_DS2SR2 23.37 9/1/2027 9/30/2027
CMBLND_2_DS2SR2 9.54 10/1/2027 10/31/2027
CMBLND_2_DS2SR2 0.09 11/1/2027 11/30/2027
CMBLND_2_DS2SR2 0.09 12/1/2027 12/31/2027
WALNUT_6_HILLGEN 3.64 1/1/2027 1/31/2027
WALNUT_6_HILLGEN 3.61 2/1/2027 2/28/2027
WALNUT_6_HILLGEN 3.59 3/1/2027 3/31/2027
WALNUT_6_HILLGEN 3.56 4/1/2027 4/30/2027
WALNUT_6_HILLGEN 3.54 5/1/2027 5/31/2027
WALNUT_6_HILLGEN 3.51 6/1/2027 6/30/2027
WALNUT_6_HILLGEN 3.49 7/1/2027 7/31/2027
WALNUT_6_HILLGEN 3.47 8/1/2027 8/31/2027
WALNUT_6_HILLGEN 3.44 9/1/2027 9/30/2027
WALNUT_6_HILLGEN 3.42 10/1/2027 10/31/2027
WALNUT_6_HILLGEN 3.39 11/1/2027 11/30/2027
WALNUT_6_HILLGEN 3.37 12/1/2027 12/31/2027
ASTORA_2_SOLAR2 0.04 1/1/2027 1/31/2027
ASTORA_2_SOLAR2 0.04 2/1/2027 2/28/2027
ASTORA_2_SOLAR2 0.04 3/1/2027 3/31/2027
ASTORA_2_SOLAR2 0.14 4/1/2027 4/30/2027
ASTORA_2_SOLAR2 0.4 5/1/2027 5/31/2027
ASTORA_2_SOLAR2 12.75 6/1/2027 6/30/2027
ASTORA_2_SOLAR2 20.18 7/1/2027 7/31/2027
ASTORA_2_SOLAR2 16.44 8/1/2027 8/31/2027
ASTORA_2_SOLAR2 11.69 9/1/2027 9/30/2027
ASTORA_2_SOLAR2 4.77 10/1/2027 10/31/2027
ASTORA_2_SOLAR2 0.04 11/1/2027 11/30/2027
ASTORA_2_SOLAR2 0.04 12/1/2027 12/31/2027
BIGSKY_2_SOLAR7 0.05 1/1/2027 1/31/2027
BIGSKY_2_SOLAR7 0.05 2/1/2027 2/28/2027
BIGSKY_2_SOLAR7 0.05 3/1/2027 3/31/2027
BIGSKY_2_SOLAR7 0.12 4/1/2027 4/30/2027
BIGSKY_2_SOLAR7 0.05 5/1/2027 5/31/2027
BIGSKY_2_SOLAR7 10.63 6/1/2027 6/30/2027
BIGSKY_2_SOLAR7 16.83 7/1/2027 7/31/2027
BIGSKY_2_SOLAR7 13.7 8/1/2027 8/31/2027
BIGSKY_2_SOLAR7 9.74 9/1/2027 9/30/2027
BIGSKY_2_SOLAR7 3.98 10/1/2027 10/31/2027
BIGSKY_2_SOLAR7 0.05 11/1/2027 11/30/2027
BIGSKY_2_SOLAR7 0.05 12/1/2027 12/31/2027
2027 Resource Adequacy Plan
14 of 20
Resolution No. 2026-040
________________________
Item 14 Page 299 of 344
Report Type Annual
Report Date 8/31/2026
Name of Supplier: City of Vernon
Scheduling Coordinator: VERN
Person who prepared this RA Plan (Name): Efrain Sandoval (Text Field) Title: Principal Resource Scheduler/Trader (Text Field) Primary Contact
Name: Efrain Sandoval (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field) Address: 4305 Santa Fe Ave. (Text Field)
Address 2: (Optional, Text Field)
City: Vernon (Text Field)
State: CA (Text Field)
Zip: 90058 (Numeric)
Telephone: (323) 826-1424 (Numeric)
Email [email protected] (Text Field)
Back-Up Contact
Name: Shawn Sharif (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field) Telephone: (Numeric)
Email: [email protected] (Text Field)
Exhibit 5
2027 Resource Adequacy Plan
15 of 20
Resolution No. 2026-040
________________________
Item 14 Page 300 of 344
Resource ID in CAISO Master File
Local RA
Capacity (MW
00.00 No
Rounding)
System RA
Capacity (MW
00.00 No
Rounding)
Flexible RA
Capacity (MW
00.00 No
Rounding)
Flexible
Category
1,2,3
RA Capacity
Effective Start Date
(mm/dd/yyyy)
RA Capacity
Effective End Date
(mm/dd/yyyy)
SCID of
Load
Serving
Entity
VERNON_6_MALBRG 44 95 105 1 1/1/2027 1/31/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 2/1/2027 2/28/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 3/1/2027 3/31/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 4/1/2027 4/30/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 5/1/2027 5/31/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 6/1/2027 6/30/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 7/1/2027 7/31/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 8/1/2027 8/31/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 9/1/2027 9/30/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 10/1/2027 10/31/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 11/1/2027 11/30/2027 LVERN
VERNON_6_MALBRG 44 95 105 1 12/1/2027 12/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 1/1/2027 1/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 2/1/2027 2/28/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 3/1/2027 3/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 4/1/2027 4/30/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 5/1/2027 5/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 6/1/2027 6/30/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 7/1/2027 7/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 8/1/2027 8/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 9/1/2027 9/30/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 10/1/2027 10/31/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 11/1/2027 11/30/2027 LVERN
VERNON_6_GONZL1 5.75 5.75 1 12/1/2027 12/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 1/1/2027 1/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 2/1/2027 2/28/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 3/1/2027 3/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 4/1/2027 4/30/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 5/1/2027 5/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 6/1/2027 6/30/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 7/1/2027 7/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 8/1/2027 8/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 9/1/2027 9/30/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 10/1/2027 10/31/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 11/1/2027 11/30/2027 LVERN
VERNON_6_GONZL2 5.75 5.75 1 12/1/2027 12/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 1/1/2027 1/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 2/1/2027 2/28/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 3/1/2027 3/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 4/1/2027 4/30/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 5/1/2027 5/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 6/1/2027 6/30/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 7/1/2027 7/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 8/1/2027 8/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 9/1/2027 9/30/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 10/1/2027 10/31/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 11/1/2027 11/30/2027 LVERN
VERN_MEAD230_I_UC_IMS001 22 12/1/2027 12/31/2027 LVERN
VERN_WESTWING500_I_UC_IMS001 11.59 1/1/2027 1/31/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 2/1/2027 2/28/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 3/1/2027 3/31/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 4/1/2027 4/30/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 5/1/2027 5/31/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 6/1/2027 6/30/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 7/1/2027 7/31/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 8/1/2027 8/31/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 9/1/2027 9/30/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 10/1/2027 10/31/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 11/1/2027 11/30/2027 LVERN VERN_WESTWING500_I_UC_IMS001 11.59 12/1/2027 12/31/2027 LVERN 2027 Resource Adequacy Plan
16 of 20
Resolution No. 2026-040
________________________
Item 14 Page 301 of 344
Report Type Annual
Report Date 8/31/2026
Name of Supplier: City of Vernon
Scheduling Coordinator: VDGT
Person who prepared this RA Plan (Name): Efrain Sandoval (Text Field) Title: Principal Resource Scheduler/Trader (Text Field) Primary Contact
Name: Efrain Sandoval (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field) Address: 4305 Santa Fe Ave. (Text Field)
Address 2: (Optional, Text Field)
City: Vernon (Text Field)
State: CA (Text Field)
Zip: 90058 (Numeric)
Telephone: (323) 826-1424 (Numeric)
Email [email protected] (Text Field)
Back-Up Contact
Name: Shawn Sharif (Text Field)
Title: Principal Resource Scheduler/Trader (Text Field) Telephone: (Numeric)
Email: [email protected] (Text Field)
Exhibit 6
2027 Resource Adequacy Plan
17 of 20
Resolution No. 2026-040
________________________
Item 14 Page 302 of 344
Resource ID in CAISO Master File
Local RA
Capacity (MW
00.00 No
Rounding)
System RA
Capacity (MW
00.00 No
Rounding)
Flexible RA
Capacity (MW
00.00 No
Rounding)
Flexible
Category
1,2,3
RA Capacity
Effective Start Date
(mm/dd/yyyy)
RA Capacity
Effective End Date
(mm/dd/yyyy)
SCID of
Load
Serving
Entity
CMBLND_2_DS2BT2 30 60 1 1/1/2027 1/31/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 2/1/2027 2/28/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 3/1/2027 3/31/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 4/1/2027 4/30/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 5/1/2027 5/31/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 6/1/2027 6/30/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 7/1/2027 7/31/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 8/1/2027 8/31/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 9/1/2027 9/30/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 10/1/2027 10/31/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 11/1/2027 11/30/2027 LVERN
CMBLND_2_DS2BT2 30 60 1 12/1/2027 12/31/2027 LVERN
CMBLND_2_DS2SR2 0.09 1/1/2027 1/31/2027 LVERN
CMBLND_2_DS2SR2 0.09 2/1/2027 2/28/2027 LVERN
CMBLND_2_DS2SR2 0.09 3/1/2027 3/31/2027 LVERN
CMBLND_2_DS2SR2 0.29 4/1/2027 4/30/2027 LVERN
CMBLND_2_DS2SR2 0.09 5/1/2027 5/31/2027 LVERN
CMBLND_2_DS2SR2 25.51 6/1/2027 6/30/2027 LVERN
CMBLND_2_DS2SR2 29.54 7/1/2027 7/31/2027 LVERN
CMBLND_2_DS2SR2 29.54 8/1/2027 8/31/2027 LVERN
CMBLND_2_DS2SR2 23.37 9/1/2027 9/30/2027 LVERN
CMBLND_2_DS2SR2 9.54 10/1/2027 10/31/2027 LVERN
CMBLND_2_DS2SR2 0.09 11/1/2027 11/30/2027 LVERN
CMBLND_2_DS2SR2 0.09 12/1/2027 12/31/2027 LVERN
2027 Resource Adequacy Plan
18 of 20
Resolution No. 2026-040
________________________
Item 14 Page 303 of 344
Exhibit 7
Effective
Flexible
Capacity
Flexible
Capacity
Category
(A) (B) (C)
1 Malburg Generating Station 105 1
2 H. Gonzalez 1 5.75 1
3 H. Gonzalez 2 5.75 1
A Designated flexible resource
B Designated Effective Flexible Capacity (Qualified Flexible Capacity by each Resource) C Designated Flexible Capacity Category
January - December 2027 Effective Flexible Capacity
2027 Resource Adequacy Plan
19 of 20
Resolution No. 2026-040
________________________
Item 14 Page 304 of 344
Exhibit 8
Min. Base
Flexibility
Requirement
Peak
Flexibility
Super
Peak
Flexibilty
Total Flexible
RA
Requirement
(A) (B) (C) (D) (E)
1 January 26.53 67.72 4.96 99.21
2 February 24.76 63.20 4.63 92.59
3 March 29.83 76.15 5.58 111.56
4 April 29.94 76.43 5.60 111.96
5 May 47.13 60.51 5.66 113.30
6 June 45.04 57.83 5.41 108.29
7 July 45.95 58.99 5.52 110.46
8 August 47.21 60.62 5.68 113.51
9 September 47.47 60.95 5.71 114.12
10 October 31.05 79.26 5.81 116.11
11 November 29.20 74.54 5.46 109.20
12 December 22.38 57.14 4.19 83.71
A Month
B Requirement for Category 1 - Base Ramping Resources
C Maximum allowed use of Category 2 - Peak Flexibility
D Maximum allowed use of Category 3 - Super Peak Flexibility E Total Flexible RA Requirement for City of Vernon
January - December 2027 Flexible RA Requirement
2027 Resource Adequacy Plan
20 of 20
Resolution No. 2026-040
________________________
Item 14 Page 305 of 344
City Council Agenda Report
Meeting Date: October 6, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Purchase Order with Jessup Auto Plaza
Recommendation
A. Approve and authorize the issuance of a Purchase Order with Jessup Auto Plaza for a 2026 Chevrolet Blazer EV for a total amount not-to-exceed amount of $52,879.33; B. Authorize a contingency amount of ten percent (10%) or $5,287.93 for the vehicle purchase from Jessup Auto Plaza in case of unforeseen circumstances, including, but not limited to, price, supply chain issues, or tariffs; and
C. Authorize the City Administrator to facilitate the bidding and purchase of a comparable vehicle for an amount not-to-exceed $58,167.26 (Jessup Auto Plaza price plus contingency amount) from an alternate source/dealership should Jessup Auto Plaza vehicle availability be impacted by inventory shortages or vehicle availability.
Background
The South Coast Air Quality Management District (SCAQMD) Fleet Rules 1191 and 1196 mandate public fleet operators to procure low-emitting gasoline or alternative-fuel vehicles when adding or replacing vehicles to their vehicle fleet. Vehicles must be replaced with newer lower or zero-emission vehicles, such as electric, compressed natural gas (CNG), hybrid, or gasoline vehicles that meet LEV standards or better. Diesel-powered vehicles do not meet fleet rule requirements.
Vernon Public Utilities (VPU) has developed a five-year fleet plan to replace vehicles in its fleet.
This plan considers factors such as vehicle age, mileage, usage, and compliance with SCAQMD regulations to ensure safety and reduce operating risks and costs. Additionally, it incorporates recommendations from the Public Works Garage staff, who provide insights into the condition of older VPU vehicles. Replacing these vehicles will help address the challenges posed by the scarcity of replacement parts, which has increased repair costs and the maintenance workload for Public Works staff. In accordance with VPU’s fleet replacement plan, a 2001 Ford Crown Victoria, with City vehicle ID L233, was identified for replacement. VPU proposes purchasing a 2026 Chevrolet Blazer EV All Wheel Drive (AWD) for use by VPU as a pool vehicle. This vehicle will be utilized to visit work sites throughout the City, as well as for transportation to any off-site meetings or trainings.
VPU staff recommends approval of a Purchase Order with Jessup Auto Plaza in the amount of $52,879.33 for the purchase of a 2026 Chevrolet Blazer EV. Additionally, VPU staff recommends a contingency amount of ten percent (10%) or $5,287.93, in the event vehicle prices fluctuate due to price, supply chain issues, or tariffs that impact vehicle inventory or availability, or if a comparable make and model must be purchased from another source or dealership.
The City is a member of Sourcewell, a cooperative procurement organization that offers participating agencies competitively solicited contracts. Historically, the City has purchased vehicles through National Auto Fleet Group, a Sourcewell contracted vendor. However, National Auto Fleet Group does not carry the Chevrolet Blazer EV in AWD, LT trim, or the color white, and Item 15 Page 306 of 344
the City will not be able to secure a vehicle from them for this specific purchase.
The City is currently experiencing challenges in purchasing vehicles from dealerships. Vehicle inventory is low, and vehicles are selling quickly, making it difficult for the City to obtain approval to purchase specific vehicles while they are in stock. Overall, dealerships are offering very few options in terms of vehicle make and models due to the sparse vehicle inventory.
In an effort to attain a competitive price for the City, staff searched online inventory of all local dealerships within a 100-mile radius. Jessup Auto Plaza is the sole dealership that fulfills VPU’s fleet criteria and has offered the most competitive quote.
City Council approval for the proposed purchase is required pursuant to VMC Section
3.32.030(B), as, within the last twelve (12) months, the City has paid or awarded Jessup Auto Plaza a total of $66,394.63. With this proposed purchase of $52,879.33, total payments and awards to Jessup Auto Plaza will reach $119,273.96.
Strategic Plan Goals
Goal 6: Optimize Public Utility Operations to Ensure Affordable Services Fiscal Impact
The fiscal impact is estimated at $58,167.26. Sufficient funds are available in the Electric Fund, Administration, Capital Outlay, Account Number 055-050-580-660000 for the current fiscal year.
Attachments
1. Jessup Auto Plaza – Quote
Item 15 Page 307 of 344
Item 15 Page 308 of 344
Item 15 Page 309 of 344
City Council Agenda Report
Meeting Date: October 6, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Purchasing Agreements Related to Repair Work for Malburg Generating Station Recommendation
A. Find that the Proposed action is categorically exempt from California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15301, because the project consists of the maintenance of the existing cooling tower at the Malburg Generating Station (MGS) and involves negligible or no expansion of an existing use; B. Approve and authorize the City Administrator to execute a Labor and Materials Contract with SPX Cooling Tech, LLC, in substantially the same form as submitted, to perform repair work on the MGS Cooling Tower, for a total amount not-to-exceed $156,700; C. Authorize a contingency amount of ten percent (10%) or $15,670 to cover any unforeseen expenses and grant authority to the City Administrator to approve and execute amendments up to the contingency amount, if necessary;
D. Approve and authorize the issuance of a Purchase Order to DLE Equipment, Inc. for the purchase of mechanical component parts for the repair work on the MGS Cooling Tower, for a total amount not-to-exceed $191,681.84; and
E. Authorize a contingency amount of ten percent (10%) or $19,168.18 in the event of unforeseen expenses and grant authority to the City Administrator to approve and execute change orders up to the contingency amount, if necessary.
Background
The Malburg Generating Station (MGS) operates a multicell cooling tower designed to dissipate low-quality heat generated during the production process. The cooling tower provides essential cooling for various plant processes that generate heat, with the primary heat load coming from the Steam Turbine Generator. After steam is produced from the exhaust heat of the Gas Turbines and used to generate energy inside the Steam Turbine, it is discharged into the Condenser. Cold water from the Cooling Tower recondenses the steam back into condensate, allowing it to be reused in the steam cycle.
The Cooling Tower, constructed in 2005 during the original development of MGS, is made of wood and fiberglass components. These materials have an expected service life of approximately 20 to 30 years and can deteriorate over time due to exposure to ultraviolet radiation, chemicals, and continuous water saturation.
MGS staff have consistently monitored the condition and performance of the Cooling Tower, evaluating its structural integrity. Routine maintenance and repairs have been conducted to ensure reliable cooling capacity. While staff have successfully maintained cooling efficiency, recent inspection reports have revealed signs of deterioration in several mechanical components within the Cooling Tower cells and in critical wooden supports, especially as the Cooling Tower approaches the later stages of its expected service life.
The necessary repairs require specialized engineering plans and material specifications. SPX Cooling Tech, LLC (SPX)/Marley serves as the Original Equipment Manufacturer (OEM) and Item 16 Page 310 of 344
installation contractor for the Cooling Tower equipment. As the OEM, SPX/Marley maintains the original drawings and design specifications, which are confidential and constitute the exclusive property of SPX/Marley. Therefore, Vernon Public Utilities (VPU) has engaged SPX to perform the refurbishment and address the critical structural and mechanical issues. The proposed work is necessary to maintain the reliability and operational efficiency of the Cooling Tower and to reduce the risk of equipment failure or further deterioration of critical structural components.
Completing this work will help ensure that the Cooling Tower continues to provide the required cooling capacity for MGS operations.
The proposed Labor and Materials Contract and Purchase Order are exempt from competitive bidding and competitive selection pursuant to Sections 3.32.110 (A)(2) and 3.32.110 (B)(I) of the Vernon Municipal Code (VMC). This exemption arises as the original drawings, and design specifications are proprietary to SPX/Marley. Furthermore, SPX serves as the OEM and installation contractor of the Cooling Tower. Additionally, DLE Equipment, Inc. (DLE) serves as the sole source provider of SPX/Marley, for the mechanical component parts necessary to complete the proposed work.
VPU staff recommends approving a Labor and Materials Contract and Purchase Order, along with associated contingencies, for the repair work on the Cooling Tower. A 10% contingency is included to account for unforeseen expenses. The details of the proposed Labor and Materials Contract, Purchase Order, and corresponding contingencies are as follows:
1. Labor and Materials Contract with SPX for $156,700 to repair work on the Cooling Tower; and 10% contingency or $15,670; and
2. Purchase Order with DLE for $191,681.84 to purchase mechanical component parts for the repair work on the Cooling Tower; and 10% contingency or $19,168.18.
City Council approval of the proposed Contract with SPX is required pursuant to VMC
3.32.030(B), as within the last twelve (12) months, the City has paid or awarded SPX a total of $245,792. Pursuant to VMC Section 3.32.030(A), City Council approval of the proposed Purchase Order with DLE is required as the total value of the Purchase Order requested exceeds $100,000.
The proposed Labor and Materials Contract with SPX has been reviewed and approved as to form by the City Attorney’s Office.
Strategic Plan Goals
Goal 6: Optimize Public Utility Operations to Ensure Affordable Services Fiscal Impact
The fiscal impact is not-to-exceed $383,220.02. Sufficient funds are available in the Electric Fund, Malburg Generating Station, Capital Outlay, Account No. 055-050-586-660000 for the current fiscal year.
Attachments
1. Labor and Materials Contract with SPX Cooling Tech, LLC.
2. Sole Source Letter from SPX Cooling Tech, LLC.
3. Quote from DLE Equipment Inc.
4. Sole Source Letter from DLE Equipment Inc.
Item 16 Page 311 of 344
LABOR AND MATERIALS CONTRACT BETWEEN THE CITY OF VERNON AND SPX
COOLING TECH, LLC FOR COOLING TOWER REPAIR
COVER PAGE
Contractor: SPX Cooling Tech, LLC
Responsible Principal of Contractor: Bill Wright, Regional Sales Manager Notice Information - Contractor: SPX Cooling Tech, LLC
7401 West 129th Street
Overland Park, KS 66213
Attention: Bill Wright, Regional Sales
Manager
Phone: (816) 560-2263
Notice Information - City: City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attention: Todd Dusenberry,
General Manager
Telephone: (323) 583-8811 ext. 579
Commencement Date: October 6, 2026
Termination Date: June 30, 2027
Consideration: Total not to exceed $156,700 (includes
all applicable sales tax); and more
particularly described in Exhibit C
Records Retention Period Three (3) years, pursuant to Section 8.3 Item 16 Page 312 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
LABOR AND MATERIALS CONTRACT BETWEEN THE CITY OF VERNON AND SPX
COOLING TECH, LLC FOR COOLING TOWER REPAIR
This Contract is made between the City of Vernon, a California charter City and California municipal corporation ("City"), and SPX Cooling Tech, LLC a Delaware Limited Liability Company, with headquarters located at 7401 W. 129th Street, Overland Park, KS 66223 (“Contractor”).
The City and Contractor agree as follows:
1.0 Contractor shall furnish all necessary and incidental labor, material, equipment, transportation and services as described in, and strictly in accordance with, and subject to all terms and conditions set forth in Specifications for Cooling Tower Repair, as more fully set forth in the Scope of Services, attached hereto and incorporated herein by reference as Exhibit “A”.
2.0 All work shall be done in a manner satisfactory to the City’s General Manager of Vernon Public Utilities (the “Director”), or the Director’s designee, in writing, and shall be of highest quality with respect to the contract specifications.
In the event Contractor fails to perform satisfactorily the City shall advise Contractor in writing, and Contractor shall have thirty (30) days to cure such failure to satisfactorily perform. If Contractor fails to so cure its performance within said 30 days, the City may, at its option, terminate this Contract for default without further liability, other than payment to Contractor for work performed satisfactorily prior to the date of termination.
3.0 Contractor shall commence work upon the execution of this contract and shall perform work requested in writing by Director.
4.0 In consideration of satisfactory and timely Performance of requested work pursuant to the Schedule set forth in Exhibit “B,” which is attached hereto and incorporated herein by reference, the City shall pay Contractor as follows:
The bid amounts, according to the requested and accepted price set forth in the Contractor’s bid proposal, attached hereto and incorporated herein by reference as Exhibit “C”. The total amount to be paid to Contractor during the term of this contract shall not exceed one hundred fifty-six thousand and seven hundred dollars ($156,700) without the prior approval of the City Council and without a written amendment of this contract.
Item 16 Page 313 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
5.0 Concurrently with the execution of this Contract, Contractor shall furnish bonds of a surety satisfactory to the City, as provided in the specifications and Notice Inviting Bids. The cost of the bonds shall be paid by Contractor.
6.0 GENERAL TERMS AND CONDITIONS.
6.1 INDEPENDENT CONTRACTOR.
6.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent or employee of City and shall furnish such services in its own manner and method except as required by this Contract. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder.
Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.
6.1.2 Contractor acknowledges that Contractor and any
subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.
6.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors, if any, shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise.
6.3 OWNERSHIP OF WORK. City understands and agrees that nothing in this Agreement, nor in the disclosure of Contractor’s proprietary and confidential information to City, shall be deemed by implication or otherwise, to convey ownership or any other right, title or interest thereunder, to City or any person in privity therewith, of any intellectual property, trade secrets, inventions, patent rights, or other confidential or proprietary information or rights (“IP Rights”) of Seller. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Contract.
6.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy or incompleteness.
Item 16 Page 314 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
6.5 CHANGES ORDER REQUESTS. Pursuant to Vernon Municipal Code (VMC) Section 3.32.220(C), compensation rates to be paid by the City shall not be increased during the term of a contract except where external factors are going to significantly affect costs and rates during the term of the contract, and any such increase is directly tied to the most appropriate index or cost-of-living rate or a pass through of increased costs charged to the Contractor. In the event Contractor is adversely impacted by circumstances beyond Contractor’s reasonable control, Contractor may submit a written change order request subject to the requirements set forth in VMC Section 3.32.220(C).
6.6 WAIVER. The City's waiver of any term, condition, breach or default of this Contract shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived.
6.7 SUCCESSORS. This Contract shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors and/or assigns.
6.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Contract. No assignment shall release the original parties or otherwise constitute a novation.
6.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof.
6.10 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.
7.0 INTERPRETATION.
7.1 APPLICABLE LAW. This Contract, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed by and construed according to the laws of the State of California, without regards to its conflict of laws rules.
7.2 ENTIRE CONTRACT. This Contract, including any Exhibits attached hereto, constitutes the entire contract and understanding between the parties Item 16 Page 315 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral).
7.3 WRITTEN AMENDMENT. This Contract may only be changed by written amendment executed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Contract shall be of no force or effect.
7.4 SEVERABILITY. If any provision in this Contract is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Contract, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Contract.
7.5 ORDER OF PRECEDENCE. In case of conflict between the terms of this Contract and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City's Specifications shall control over the Contractor's bid.
7.6 CHOICE OF FORUM. The parties hereby agree that this Contract is to be enforced in accordance with the laws of the State of California, is entered into in the City of Vernon and that all claims or controversies arising out of or related to performance under this Contract shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum.
Notwithstanding the foregoing, the parties hereby agree to waive their right to a jury trial in any court action arising between the parties under this contract.
7.7 AUTHORITY OF CONTRACTOR. The Contractor hereby
represents and warrants to the City that the Contractor has the right, power, legal capacity and authority to enter into and perform its obligations under this Contract, and its execution of this Contract has been duly authorized.
7.8 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach or any other aspect of this Contract, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. This clause shall not preclude the Parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery.
Item 16 Page 316 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
7.9 INDEMNITY.
7.9.1 Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers,
employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of:
A. any activity on or use of City's premises or facilities or any performance under this Contract; or
B. any acts, errors or omissions (including, without
limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract.
C. Arising out of a third party claim resulting from personal injury, or damage to the third party’s property, to the extent such third-party claim was directly caused by the negligence or other tortious misconduct of the
indemnifying party. In the event such damage or injury is caused by the joint, concurrent, or comparative
negligence of Buyer, the loss and all associated costs
shall be borne by Buyer and Seller proportionately to
their degree of negligence.
7.9.2 This Contract to indemnify includes, but is not limited to, personal injury (including death at any time) and property or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not
limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public).
The negligence or willful misconduct of City, its employees or agents other than Contractor or Contractor’s
subcontractors are excluded from this indemnity contract.
7.10 RELEASE. Contractor agrees to release and covenants not to sue the City, its City Council and each member thereof, and its officers, employees, commission members and representatives for any damage or injury (including death) to itself, its officers, employees, agents and independent contractors damaged or claiming to be damaged from any performance under this Contract.
Item 16 Page 317 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
7.11 INSURANCE. Contractor shall procure and maintain for the duration of the Contract, and for 3 years thereafter, insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representative, or employees. The Commercial General Liability policy shall state that they afford primary coverage.
7.11.1 Automobile Liability Insurance. Primary insurance coverage shall be written on ISO Business Auto coverage form for all owned, hired, and nonowned automobiles or any auto. The policy shall have a combined single limit of not less than one million dollars ($1,000,000). If Contractor is transporting one or more non-employee passengers in the performance of the services, the automobile liability policy shall have a combined single limit of two million dollars ($2,000,000). If Contractor owns no autos, a hired, non-owned auto endorsement to the General Liability policy is acceptable.
(A) Contractor agrees to subrogate automobile liability resulting from performance under this Contract by agreeing to defend, indemnify, and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney’s fees (“Claims”), which are attributable to any act or omission by the Contractor under the performance of the services. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds and, under the Contractors’ automobile liability, there shall be a waiver of subrogation, and the policy shall be primary and non-contributory and will not seek contribution from the City’s insurance.
7.11.2 Commercial General Liability Insurance. Contractor shall carry General Liability Insurance covering all operations performed by or on behalf of the Contractor providing coverage for bodily injury and property damage with a single limit of not less than two million dollars ($2,000,000) per occurrence and four million dollars ($4,000,000) general aggregate limit written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" Form CG 00 01 or its equivalent for coverage on an occurrence basis. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds with respect to liability arising out of the Contractor's performance of this Contract. The additional insured coverage under the Contractor’s policy shall be primary and non-contributory and will not seek contribution from the City’s insurance.
The policy shall be endorsed to include a waiver of subrogation.
Item 16 Page 318 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
(A) If Contractor intends to employ subcontractors, Contractor’s Protective Coverage is required. Contractor may include all subcontractors as insured under its own policy or shall furnish separate insurance for each subcontractor, meeting the
requirements set forth herein.
7.11.3 Professional Errors and Omissions Coverage in a sum of not less than one million dollars ($1,000,000) each claim, and $1,000,000 aggregate where such risk is applicable. Contractor shall maintain such coverage for at least three (3) years after the termination of this Contract.
7.11.4 Umbrella Liability Insurance. An umbrella (over primary) may be used to comply with limits or other primary coverage requirements. When used, the umbrella policy shall apply to bodily injury/property damage and personal injury/advertising injury and shall include a “dropdown” provision providing primary coverage for any liability not covered by the primary policy. The umbrella policy shall have no additional exclusion or coverage difference from the primary policy. The coverage shall also apply to automobile liability.
7.11.5 Workers’ Compensation/Employers Liability. Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. In addition, Contractor shall require each subcontractor to similarly maintain workers’ compensation insurance in accordance with the laws of California for all of the subcontractor’s employees. Compliance is accomplished in one of the following manners:
(A) Provide a copy of the permissive self-insurance certificate approved by the State of California; or
(B) Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a limit of one million dollars ($1,000,000) Bodily Injury by Accident – each accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Contract; or
(C) If Contractor has no employees, it may certify or warrant to the City that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code, and the requirement for Workers’ Compensation coverage will be
waived by completing the waiver form provided by the City.
Item 16 Page 319 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
7.11.6 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days prior written notice to City.
7.11.7 Insurance shall be placed with insurers with an A.M. Best rating of no less than A-VIII. Any policies written on a claims-based basis must include a minimum of a 3-year tail.
7.11.8 Prior to the commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy required herein. The certificate(s)will be on a standard Accord. In the event of a claim and pursuant to a lawful subpoena or court order the City may require the Contractor to provide complete, certified copies of any or all applicable policies; provided, however, that such copies may be redacted as reasonably necessary to protect proprietary or confidential information not relevant to the claim.
7.11.9 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Contract until such time as the required insurance is reinstated.
7.12 NOTICES. Any notice or demand to be given by one party to the other shall be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice.
If to the City: City of Vernon
Attn: Todd Dusenberrry, General Manager
4305 Santa Fe Avenue
Vernon, CA 90058
With a Copy to: Brian Saeki
City Administrator
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
If to the Contractor: Bill Wright, Regional Sales Manager SPX Cooling Tech, LLC
7401 West 129th Street
Overland Park, KS 66213
Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the Item 16 Page 320 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
address at which it desires to receive notice upon giving written notice of such request to the other party.
7.13 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Contract in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause.
7.14 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Contract by written notice to the defaulting party. The notice shall specify the basis for the default. The Contract shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. Contractor will have a minimum of thirty (30) days after receipt of notice of default to cure any such default prior to termination for cause.
Termination for cause shall relieve the terminating party of further liability or responsibility under this Contract, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance.
7.15 ASSIGNMENT OF ANTITRUST CAUSES OF ACTION. Contractor hereby agrees to assign to the City all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under Chapter 2 of the Cartwright Act (commencing with Section 16700) or part 2 of Division 7 of the California Business and Professions Code, or any similar or successor provisions of Federal or State law, arising from purchases of goods, services or materials pursuant to this Contract or any subcontract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor, without further acknowledgment by the parties.
8.0 ADDITIONAL ASSURANCES.
8.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor
certifies and represents that, during the performance of this Contract, the Contractor and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to Item 16 Page 321 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit “D”.
8.2 VERNON BUSINESS LICENSE. Contractor shall obtain, and pay any and all costs associated therewith, any Vernon Business License which may be required by the Vernon Municipal Code.
8.3 MAINTENANCE AND INSPECTION OF RECORDS.
The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Contract and/or is paying only the amounts to which Contractor is properly entitled under the Contract or for other purposes relating to the Contract.
The Contractor shall maintain and preserve all such records for a period of at least 3 years after termination of the Contract.
The Contractor shall maintain all such records in the City of Vernon.
If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead.
8.4 CONFLICT. Contractor hereby represents, warrants and certifies that no member, officer or employee of the Contractor is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law.
8.5 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Contract by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1½ times the basic rate of pay.
8.6 PREVAILING WAGES. The provisions of California Labor Code 1770, et seq., regarding the payment of prevailing wages on public works, and related regulations, apply to all City contracts. In addition, the selected consultant and/or any subcontractor must be currently registered and qualified (including payment of any Item 16 Page 322 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
required fee) with the State Department of Industrial Relations pursuant to Labor Code section 1725.5. This project is subject to compliance monitoring and enforcement by the State Department of Industrial Relations.
9.0 LIMITATION OF LIABILITY
IN NO EVENT, WHETHER BASED ON CONTRACT, INDEMNITY, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, WILL EITHER
PARTY BE LIABLE FOR INCIDENTAL, INDIRECT, EXEMPLARY OR
CONSEQUENTIAL DAMAGES OF ANY NATURE INCLUDING, BUT NOT LIMITED
TO, LOSS OF USE OF THE EQUIPMENT OR ANY ASSOCIATED EQUIPMENT,
COST OF CAPITAL, LOSS OF ANTICIPATED PROFIT OR REVENUE, OR DOWNTIME COSTS.
EXCEPT FOR LIABILITY OR DAMAGES CAUSED BY CONTRACTOR’S
FRAUD, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT, NEITHER PARTY’S
AGGREGATE LIABILITY TO THE OTHER PARTY FOR ANY DAMAGES IN
CONNECTION WITH THIS AGREEMENT WILL EXCEED TWO-TIMES (DOUBLE)
THE AMOUNT ACTUALLY PAID TO CONTRACTOR UNDER A PARTICULAR PURCHASE ORDER. IN ADDITION, IN NO EVENT WILL CONTRACTOR BE LIABLE
FOR ANY DAMAGES IF AND TO THE EXTENT SUCH DAMAGES ARE CAUSED BY
THE NEGLIGENCE OF CITY, THE OWNER OR OTHER END USER OF THE GOODS,
OR ANY OTHER THIRD PARTY THAT IS NOT UNDER THE DIRECT CONTROL OF CONTRACTOR.
[Signatures Begin on Next Page].
Item 16 Page 323 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
IN WITNESS WHEREOF, the Parties have executed this Contract as of the Commencement Date stated on the cover page.
City of Vernon, a California charter City
and California municipal corporation
By:____________________________
Brian Saeki, City Administrator
SPX Cooling Tech, LLC, a Delaware
limited liability company
By:
Name:
Title:
ATTEST:
_______________________________
Genoveva Rocha, City Clerk
By:
Name:
Title:
APPROVED AS TO FORM:
_______________________________
Zaynah N. Moussa, City Attorney
Jason Carley
Manager, Project Management
Item 16 Page 324 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
EXHIBIT A
SCOPE OF SERVICES
Item 16 Page 325 of 344
Malburg Generating Station
4963 Soto Street
Vernon CA 90058
SPX Proposal #: Wright424400
Revision: 3
Date: 08/27/26
SPX Proposal - Page 3 of
10 Scope of Work
Provide labor only to replace 2 cells of mechanical equipment. Gearbox, fan, driveshaft and Torque Tubes.
Provide labor and material to replace 100% of the single 2x4 girts that support the end of the lateral pipes in all cells. This includes the plywood supports and attaching hardware.
SPX will also perform critical structure repairs if needed after initial inspection.
SPX will provide an additional 6-2x4x20 foot, 6-2x6x20’, 6-4x4x20’ 2-4x8x1/2” plywood members for any critical discovery work found during inspection.
SPX will provide an inspection report based on repairs made and recommended repairs for the next outage.
Note: Customer to supply all required equipment.
Item 16 Page 326 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
EXHIBIT B
SCHEDULE
Item 16 Page 327 of 344
Malburg Generating Station
4963 Soto Street
Vernon CA 90058
SPX Proposal #: Wright424400
Revision: 3
Date: 08/27/26
SPX Proposal - Page 4 of
10 Pricing Summary
Description Materials,
Engineering, and
Freight
Estimated Labor
and Equipment
Total
Mob / Demob $16,500 $16,500
Scope of Work $16,550 $123,650 $140,200
Total $156,700
NOTE: (Base Scope) SPX estimates the crew size to consist of one (1) field superintendent and 4 cooling tower techs, working for approximately ten (10) working days on a five 10-hour per workday schedule (Monday thru Friday). Price includes mobilization and demobilization from jobsite.
Pricing Notes
General Pricing Notes:
1. This proposal is lump sum material T&M pricing for the labor.
2. The estimated cost for labor is not expected to exceed approximately $140,150.00 (“Not to Exceed” or “NTE”). In the event that total value of invoices are projected to exceed the NTE amount, the contractor will notify the customer in writing of the revised NTE amount and the Contract Not to Exceed shall be adjusted accordingly. Contractor shall be under no obligation to perform Work in which the cost incurred by Contractor are projected to exceed the NTE.
3. Prices are firm for acceptance within 90-days of the proposal date.
4. Sales taxes are included. If tax exemption applies, please include tax exemption certificate with purchase order.
5. Conditions of sale applicable to orders resulting from this proposal are enclosed.
6. Any work completed outside the specified scope of work will be performed per a change order to the PO or billable per our standard “Time and Material Rates”.
7. Due to certain overhead allocations, any unit prices shown by scope of work are subject to adjustment if the total scope of work is altered. Payment Terms:
Materials: 100% net 30-days progressively as material ships (PAMS).
Labor: 100% net 30-days progressively as work progresses (PAWP).
Credit approval is required prior to any shipment being released.
All purchase orders are to be addressed as follows:
SPX Cooling Tech, LLC
7401 West 129th Street
Overland Park, KS 66213
Labor Pricing Notes:
Item 16 Page 328 of 344
Malburg Generating Station
4963 Soto Street
Vernon CA 90058
SPX Proposal #: Wright424400
Revision: 3
Date: 08/27/26
SPX Proposal - Page 5 of
10 1. All construction labor and equipment will be supplied by MCT Services LLC., a wholly owned subsidiary of the SPX Cooling Tech, LLC.
2. All construction labor will be “Closed Shop”.
3. All labor pricing is based on a 50-hour work week. No additional premiums have been included, unless otherwise noted.
4. All labor pricing includes mobilization and demobilization charges (to and from the job site).
5. Our labor pricing includes basic and site specific safety orientations, up to 1-hour or as defined otherwise. Any additional site and/or off-site training will be billable per our standard “Time and Material Rates”.
6. Our labor pricing does not include a holewatch and/or a confined space attendant for the project. If required, any additional attendants will be billable per our standard “Time and Material Rates”. All crewmembers are safety trained per SPX standards.
7. Our labor pricing is based on the use of standard PPE, (hard-hat, safety glasses, hearing protection, gloves, work shoes, and fall protection harnesses). Any additional safety equipment can be supplied but will require a price adjustment.
8. Our labor pricing includes up to ½-hour for obtaining permits at the start of each job shift. Any delays above the ½-hour time allotted will be billable per our standard “Time and Material Rates”.
9. Pricing is subject to change if work schedule is different than when quoted.
Item 16 Page 329 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
EXHIBIT C
PROPOSAL
Item 16 Page 330 of 344
SPX Cooling Tech, LLC 7401 West 129th Street, Overland Park, KS 66213 spxcooling.com Proposal To:
City of Vernon
Malburg Generating Station
Vernon, California
Cooling Tower Repairs
Date: 08/27/26
SPX Proposal: Wright424400
Revision: 3
Item 16 Page 331 of 344
SPX Cooling Tech, LLC 7401 West 129th Street, Overland Park, KS 66213 spxcooling.com August 27, 2026
Malburg Generating Station Reference: Pipe supports & Mechanical 4963 Soto Street 3- cell Marley Counterflow Cooling Tower Vernon Ca, 90058-2911 Model W466-6.0-03
Attention: Adriano Marki
SPX Cooling Tech, LLC (“SPX”) is pleased to submit our cooling tower repair proposal per the enclosed defined scope of work.
Unless otherwise noted, our proposal includes material, engineering, freight, labor, supervision, and necessary tools to complete the project.
Our full-service capabilities allow us to complete all types of project work scopes, including complicated scopes coupled with thermal upgrades within critical or high-risk environments.
SPX, along with our legacy products, have been a provider of cooling tower related products for over 100 years. Please refer to our web site www.spxcooling.com for additional company information.
If you should have any questions related to this proposal or require additional information, please do not hesitate to give us a call.
Best regards,
SPX COOLING TECH, LLC
Bill Wright
Regional Sales Manager
C: (816) 560-2263
Email: [email protected]
cc: Ben Piontkowski : DLE Equipment (SPX CT Representative) Item 16 Page 332 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 3 of 9
Scope of Work
Provide labor only to replace 2 cells of mechanical equipment. Gearbox, fan, driveshaft and Torque Tubes.
Provide labor and material to replace 100% of the single 2x4 girts that support the end of the lateral pipes in all cells. This includes the plywood supports and attaching hardware.
SPX will also perform critical structure repairs if needed after initial inspection.
SPX will provide an additional 6-2x4x20 foot, 6-2x6x20’, 6-4x4x20’ 2-4x8x1/2” plywood members for any critical discovery work found during inspection.
SPX will provide an inspection report based on repairs made and recommended repairs for the next outage.
Note: Customer to supply all required equipment.
Pricing Summary
Description Materials,
Engineering, and
Freight
Estimated Labor
and Equipment
Total
Mob / Demob $16,500 $16,500
Scope of Work $16,550 $123,650 $140,200
Total $156,700
NOTE: (Base Scope) SPX estimates the crew size to consist of one (1) field superintendent and 4 cooling tower techs, working for approximately ten (10) working days on a five 10-hour per workday schedule (Monday thru Friday). Price includes mobilization and demobilization from jobsite.
Pricing Notes
❑ General Pricing Notes:
1. This proposal is lump sum material T&M pricing for the labor.
2. The estimated cost for labor is not expected to exceed approximately $140,150.00 (“Not to Exceed” or “NTE”). In the event that total value of invoices are projected to exceed the NTE amount, the contractor will notify the customer in writing of the revised NTE amount and the Contract Not to Exceed shall be adjusted accordingly. Contractor shall be under no obligation to perform Work in which the cost incurred by Contractor are projected to exceed the NTE.
3. Prices are firm for acceptance within 90-days of the proposal date.
Item 16 Page 333 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 4 of 9
4. Sales taxes are included. If tax exemption applies, please include tax exemption certificate with purchase order.
5. Conditions of sale applicable to orders resulting from this proposal are enclosed.
6. Any work completed outside the specified scope of work will be performed per a change order to the PO or billable per our standard “Time and Material Rates”.
7. Due to certain overhead allocations, any unit prices shown by scope of work are subject to adjustment if the total scope of work is altered. ❑ Payment Terms:
Materials: 100% net 30-days progressively as material ships (PAMS).
Labor: 100% net 30-days progressively as work progresses (PAWP).
Credit approval is required prior to any shipment being released.
All purchase orders are to be addressed as follows:
SPX Cooling Tech, LLC
7401 West 129th Street
Overland Park, KS 66213
❑ Labor Pricing Notes:
1. All construction labor and equipment will be supplied by MCT Services LLC., a wholly owned subsidiary of the SPX Cooling Tech, LLC.
2. All construction labor will be “Closed Shop”.
3. All labor pricing is based on a 50-hour work week. No additional premiums have been included, unless otherwise noted.
4. All labor pricing includes mobilization and demobilization charges (to and from the job site).
5. Our labor pricing includes basic and site specific safety orientations, up to 1-hour or as defined otherwise. Any additional site and/or off-site training will be billable per our standard “Time and Material Rates”.
6. Our labor pricing does not include a holewatch and/or a confined space attendant for the project. If required, any additional attendants will be billable per our standard “Time and Material Rates”. All crewmembers are safety trained per SPX standards.
7. Our labor pricing is based on the use of standard PPE, (hard-hat, safety glasses, hearing protection, gloves, work shoes, and fall protection harnesses). Any additional safety equipment can be supplied but will require a price adjustment.
8. Our labor pricing includes up to ½-hour for obtaining permits at the start of each job shift. Any delays above the ½-hour time allotted will be billable per our standard “Time and Material Rates”.
9. Pricing is subject to change if work schedule is different than when quoted.
Item 16 Page 334 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 5 of 9
Scope of Supply:
SPX Malburg
Materials and Freight for Mechanical Equipment X
Materials and Freight for Pipe supports X
Construction Labor By: X
Supervision By: X
Receiving and Unloading of Materials within 50’ of Cooling Tower: X Crane and Operator: X
Forklift(s): X
Manlift(s): X
Scaffolding: X
Small Tools and Supplies (valued under $500): X
Sanitary Facilities: X
Construction Power By: X
Dumpsters and Disposal By: X
Hazardous Materials Removal/Disposal By: X
Sufficient Laydown Area at Cooling Tower: X
Potable Water: X
Confined Space Monitoring Equipment By: X
Holewatch / Confined Space Personnel: X
Personal Monitor Equipment (H2S monitors, O2 monitors, etc.): X ❑ Schedule:
We estimate the total proposed base scope of work will take approximately 10 working days to complete, weather permitting. The proposed scope of work will be accomplished by working five 10-hour days per week. Preliminary plan is to replace the mechanical equipment portion during week 1 and then perform the structure repairs and inspection during week 2. A formal project schedule can be provided on request. ❑ Lead-Time:
If applicable, please provide the scheduled dates for the cooling tower shutdown when the purchase order is issued. Any delays in the schedule prior to mobilization and/or when crews are on the jobsite could result in additional charges.
Item 16 Page 335 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 6 of 9
TERMS AND CONDITIONS OF PROPOSAL
Terms will be based on previous contract dated 11-04-25 between the City of Vernon and SPX Cooling Tech LLC
- MATERIALS AND LABOR -
1. GENERAL
1.1. SPX Cooling Tech, LLC, hereinafter called the Company shall perform, and the Purchaser agrees to purchase, the proposed work, hereinafter called the Work in strict accordance with the terms and conditions contained herein.
1.2. The Company shall supply engineering, materials, equipment, labor and supervision to perform the Work described in the Company's proposal attached hereto and incorporated hereto.
1.3. Unless otherwise stated in the Company’s proposal, the Company shall furnish all special tools, scaffolding, blocking, rigging or other equipment required for erecting, repairing or installing Company's equipment and materials.
2. PRICE AND TERMS OF PAYMENT
2.1. The price is as specified within the Company's proposal or quotation. Unless otherwise agreed, the price shall be valid only for thirty (30) days from the date submitted. Unless otherwise stated, the price is based on a single eight (8) hour shift, five (5) days per week schedule, and where more than one unit is involved, on simultaneous erection of all units.
2.2. Terms of payment shall be Net 30 Days from Purchaser’s receipt of Company’s Invoice. If payments are not made by the due dates specified above, the Purchaser will be assessed a finance charge of 1½% per month or the maximum legal rate, whichever is less, on the overdue amount until paid.
3. TRANSPORTATION
3.1. Unless otherwise specified in the Company's quotation, all shipments shall be made F.O.B. shipping point, and Company’s quoted price does not include freight charges.
3.2. The type of transportation and the routing shall be decided by Company.
4. TIME OF SHIPMENT/DELIVERY
4.1. All shipments or delivery dates either referenced by the Company or requested by the Purchaser shall be interpreted to mean "estimated" shipment or delivery dates only, and shall not be construed as falling within the meaning of time is of the essence. In no event shall the Company be liable for any loss or damage resulting from delays in the performance of the work.
5. DELAYS AND FORCE MAJEURE
5.1. Company shall not be liable for any expense, loss or damage for failure to supply materials, labor or supervision as required because of fire, flood, Acts of God, strikes, labor disputes, riots, thefts, accidents, transportation delays, availability of qualified labor, acts or failure to act of the Government or any other cause whatsoever, whether similar or dissimilar to the above, beyond the reasonable control of Company. In the event of such delay, the time of completion will be subject to adjustment and the contract price equitably adjusted.
5.2. In the event the work is suspended, delayed or interrupted by the acts or failure to act on the part of the Purchaser or other contractors in the Purchaser's employ, the Purchaser shall make an equitable adjustment in the contract price and the time for completion of the work will be extended appropriately.
5.3. If shipment of materials is delayed by Purchaser, or if Purchaser is unable to furnish the site and/or adjacent storage areas in suitable condition for acceptance of the materials (after completion of fabrication of the materials by the Company or Company’s suppliers), payment for the price of the materials (as determined in accordance with the provisions of the contract) shall become immediately due and payable. If the Purchaser elects to receive and store the materials until the site is ready, the Purchaser shall be responsible for transporting the materials from the storage area to the erection/installation site. During such time that Purchaser may store materials, Purchaser shall assume full responsibility for the care and custody of said materials until delivered to the erection/installation site, and shall store materials in complete accordance with the manufacturer’s recommendations. In the event that the Company is required to store the materials on the premises of the Company or on the premises of Company’s suppliers or subcontractors. Purchaser and Company shall negotiate appropriate charges.
6. TAXES
6.1. Unless otherwise stated in Company’s quotation, the price stated in the attached quotation is exclusive of any applicable sales, use, ownership, excise or other similar taxes.
Item 16 Page 336 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 7 of 9
7. WARRANTY
7.1. Material and Workmanship
7.1.1. The Company warrants to the original purchaser its material and workmanship against defects. The warranty duration shall be one year from first use, but in no event longer than eighteen (18) months from delivery.
7.1.2. FURTHER, IT IS AGREED THAT THE COMPANY MAKES NO OTHER REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED. THIS WARRANTY IS EXCLUSIVE AND IS IN LIEU OF ALL
OTHER WARRANTIES INCLUDING THE WARRANTY OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
7.1.3. In the event of a defect in materials or workmanship, the Company's sole liability and Purchaser's exclusive remedy for breach of said warranty or for other claims arising under this warranty for any cause whatsoever, including negligence, irrespective of whether such defects or claims are discoverable or latent shall be, at the Company's option, to repair, on a straight time basis, or provide replacement parts.
Removal and reinstallation expenses and/or work and transportation charges are not part of this warranty and are to Purchaser's account. Purchaser may not backcharge the Company for warranty claims without the Company's prior written consent. Equipment repaired, rebuilt or modified by Purchaser or other third parties without the Company's approval carries no warranty, either express or implied. It is understood and agreed that some parts and/or materials included therein such as, but not limited to, refractories, seals, liners, wear plates, are by their nature and use expendable and replaceable under normal operating conditions and are subject to increased wear and tear and more frequent replacement under start-up conditions, and shall be guaranteed only as to their quality when new, but there is no warranty or guarantee of the life of said expendable or replaceable parts and/or materials, express or implied. This warranty does not cover the effects of normal wear or abuse of the equipment, abrasion, erosion or corrosion. The Company does not warrant that the operation of the equipment will comply with any laws or regulations governing environmental impact.
7.1.4. This warranty is conditioned upon prompt notice of the particular defect within ten days of discovery, proper use and maintenance of the equipment, reasonable access to the Company to inspect the equipment and no further damage to the equipment from acts of Purchaser or third parties after discovery of the defect.
7.2. Performance
7.2.1. In the event there is a performance warranty the Company warrants that the equipment will perform as described in the Company's proposal on the page entitled Performance Guarantees, if any. The Company's warranty is based upon the data furnished to the Company concerning the conditions under which the equipment is required to perform, and the Purchaser accepts responsibility for the correctness of the data.
7.2.2. The Company's obligation shall be considered fulfilled and the equipment accepted if the performance tests show that the equipment performs as described in the Company's proposal or if the performance tests are not conducted, through no fault of the Company's within eighteen (18) months after delivery, within one hundred eighty (180) days after the equipment is ready for operation, or within thirty (30) days after the Company's written notice of readiness for testing, whichever occurs first. In the event the tests indicate failure to meet the warranted performance, the Company's obligation is limited to and shall be fully discharged by making any changes or additions in the equipment that the Company deems necessary at the Company's expense to enable the equipment to meet the Performance Guarantee. Purchaser will make the equipment available to the Company for this purpose.
7.2.3. The treatment of cooling water is beyond the control of the Company. Therefore, the Company shall not be held responsible for damage due to presence of oil, grease, scale or deposits on the internal surfaces of the equipment, damage resulting from foaming caused by chemical condition of the water or damage resulting from corrosion or caustic embrittlement.
8. PATENTS
8.1. The Company shall at its expense defend any suit brought against Purchaser based on a claim that any goods made to the Company's specifications furnished hereunder infringe any United States patent claims, provided that the Company is given prompt written notice of such claim and full opportunity and full cooperation of Purchaser to defend such claim and to minimize damages. In any such suit, the Company shall pay any direct damages awarded against Purchaser. In case such goods are held to infringe any such patent claim and the use thereof is enjoined, the Company shall, at its expense and at its option, either (a) obtain for Purchaser the right to continue using such goods, or (b) remove such goods and refund the purchase price thereof, less ten percent (10‰) for each year or fraction of a year since the date of their delivery to Purchaser, or (c) replace same with non-infringing equipment, or modify it so it becomes non-infringing. The foregoing constitutes the entire liability of the Company and the sole and exclusive remedy of Purchaser for patent or trademark infringement related to the goods.
8.2. To the extent that any goods furnished hereunder are made to Purchaser's specifications, Purchaser shall at its expense defend any suit brought against the Company based on a claim that such goods infringe any United States patent claims, provided that Purchaser is given prompt notice of such claim and full cooperation of the Company to defend and compromise such claim. In any such suit, Purchaser shall pay all costs and damage awarded against the Company.
Item 16 Page 337 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 8 of 9
9. SERVICE AND OPERATING INSTRUCTIONS
9.1. Service guides and operating instructions, if required to be furnished, are to assist licensed operators in the use of the equipment furnished by the Company. The service guides and operating instructions are not intended to cover every possible contingency or variation in the equipment but rather to complement the judgment of the licensed operator whose duty it is to make the final decision in any particular circumstance. Accordingly, in offering this information, the Company does not assume responsibility for the safe and proper operating procedure of the equipment.
10. LIMITATION OF LIABILITY
10.1. Except for liquidated damages which, if applicable to this contract, are limited herein to a cumulative total of 10% of the contract price, the company's liability on all claims of any kind, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, for all losses or damages arising out of, connected with, or resulting from this order, or from the performance or breach thereof, or from any equipment or services covered by or furnished under this order or any extension or expansion thereof (including remedial warranty efforts), shall in no case exceed the contract price. Except as to title all such liability shall terminate upon the expiration of the warranty period.
10.2. In no event, whether based on contract, indemnity, warranty, tort (including negligence), strict liability or otherwise, shall the Company, its employees, subcontractors and suppliers be liable for special, incidental, indirect, exemplary or consequential damages including, but not limited to, loss of use of the equipment or any associated equipment, facilities or services, loss of anticipated profit or revenue, downtime costs, fines or penalties imposed by governmental authorities or claims of customers of Purchaser for such damages, and Purchaser will indemnify the Company, it employees, subcontractors and suppliers against any such claims. If Purchaser is furnishing the Company's services or materials to a third party, Purchaser shall obtain from such third party a provision affording the Company, its subcontractors and suppliers the protection of the preceding sentence.
10.3. This Limitation of Liability shall prevail over any conflicting or inconsistent provision contained in any item or document which comprises the contract. The remedies provided in this Agreement are exclusive.
11. INSURANCE
11.1. The Company shall provide and maintain for its employees at its own expense until completion of the work General Liability Insurance, Automobile Liability Insurance and Worker's Compensation Insurance including Employer Liability Insurance in accordance with the laws of the state in which the Company may be required to pay compensation.
11.2. Unless otherwise provided, the Purchaser shall purchase and maintain Builder's Risk insurance upon the entire work at the site to the full insurable value thereof. This insurance shall name the Company as additional insured and shall insure against the perils of fire and extended coverage and shall include all risk insurance for physical loss or damage including theft, vandalism and malicious mischief. The Purchaser shall provide a Waiver of Subrogation in the Company's favor from its property insurance carrier.
11.3. The Purchaser shall be responsible for purchasing and maintaining its own liability insurance and at its option, may purchase and maintain such insurance as will protect it against claims which may arise from operations under the contract.
12. RESPONSIBILITY OF PURCHASER FOR OPERATION OF EQUIPMENT.
12.1. If Purchaser shall commence operation of or occupy any part of its equipment prior to the completion of the Company's work, Purchaser agrees not to hinder the Company in the performance of its work.
12.2. Purchaser shall indemnify the Company against any loss or expense or extension of schedule, and against any liability for any injury to persons or damage to property resulting from such operation or occupancy.
13. GOVERNING LAW
13.1. The validity, construction and performance of this agreement shall be governed by the laws of the State of Kansas.
14. DISPUTES
14.1. The parties shall exert every reasonable effort to arrive at an amicable settlement of any dispute which may arise between them with respect to the contract. If, however, no such settlement is reached in a reasonable amount of time, the dispute shall be settled by arbitration in accordance with the Construction Industry Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction. The parties to this contract expressly agree that any such arbitration shall take place in a mutually acceptable neutral site.
15. NOTIFICATION OF CLAIMS
15.1. The Purchaser shall notify the Company immediately by Registered Mail addressed to the Company's main office of all claims brought against the Purchaser for which the Company may be liable, and the Company will likewise notify the Purchaser of all claims brought against the Company for which the Purchaser may be liable.
Item 16 Page 338 of 344
Malburg Generating Station SPX Proposal #: Wright424400 4963 Soto Street Revision: 3
Vernon CA 90058 Date: 08/27/26
SPX Proposal - Page 9 of 9
16. SEVERABILITY
16.1. The invalidity of any provision or obligation hereunder or the contravention thereby of any law, rule or regulation shall not relieve the Purchaser or the Company from its obligation under, nor deprive the Purchaser or Company of the advantages of any other provision of this agreement.
17. INDEMNIFICATION
17.1. Company shall and does hereby agree to indemnify, save harmless and defend the Purchaser from the payment of any sum or sums of money to any person whomsoever on account of claims or suits growing out of injuries to third parties, including death or damage to property arising directly out of the performance of this contract where such damage or injury is attributable to the sole negligence of Company, its employees, agents or subcontractors; and in the event that such damage or injury is caused by the joint or concurrent negligence of Purchaser, the loss shall be borne by Purchaser and the Company proportionately to their degree of negligence.
18. COMPLIANCE WITH LAWS
18.1 All goods manufactured and services performed hereunder shall be in compliance with all applicable state and federal laws, rules, regulations, standards and codes including, but not limited to, the Fair Labor Standards Act, occupational health and safety laws and applicable provisions relating to obligations of government contractors and subcontractors, including 41 CFR 60-1, et. seq. (including the reporting, record keeping and affirmative action program requirements) incorporating the Equal Opportunity Clause of Executive Order 11246, the maintenance of nonsegregated facilities, the Vietnam Era Veteran’s Readjustment Act of 1974, The Rehabilitation Act of 1973 and Executive Order 11701 relating to the employment of veterans.
18.2 Seller shall comply with Section 1502 of the Dodd-Frank Act (the “Conflict Minerals Law”) relating to goods that contain tantalum, tin, tungsten or gold that directly or indirectly finance or benefit armed groups in the Democratic Republic of Congo or the nine adjoining conflict countries, Angola, Burundi, Central African Republic, the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia (“Conflict Minerals”). Seller shall promptly and accurately complete surveys and certifications requested by Buyer related to Conflict Minerals. Seller will inform Buyer (a) whether Conflict Minerals are known to be present in any goods provided by Seller to Buyer or whether it is “indeterminable” that Conflict Minerals are present in any goods provided by Seller to Buyer, and (b) at the request of Buyer, the status of Seller’s policies and procedures relating to compliance with the Conflict Mineral Law. Upon reasonable notice, Buyer shall be permitted to audit such records as reasonably necessary to confirm Seller’s compliance with this Article
19. HEADINGS
19.1. The descriptive phrase in the head of the various paragraphs are inserted only as a matter of convenience and for reference and in no way are intended to define, limit, or describe the scope or intent of the particular paragraph to which they refer.
20. ENTIRE AGREEMENT
There are no understandings between the parties hereto as to the subject matter of this Agreement other than as set forth herein. All previous communications concerning the subject matter of this Agreement, either verbal or written are hereby abrogated and withdrawn and the Agreement constitutes the whole agreement between parties. Any provisions of a purchase order or specification, which may be issued hereafter, shall not be binding on the parties unless duly approved in writing by an authorized representative of each party. This Agreement may not be changed or modified except by a written amendment executed by a duly authorized representative of each party.
SPX COOLING TECH, LLC City of Vernon
Signed: _______________________________ Signed: _____________________________ Title: _________________________________ Title: _______________________________ Date: _________________________________ Date: ______________________________ Item 16 Page 339 of 344
SPX Cooling Tech, LLC
Labor and Materials Contract
______________________
EXHIBIT D
EQUAL EMPLOYMENT OPPORTUNITY
PRACTICES PROVISIONS
A. Contractor certifies and represents that, during the performance of this Contract, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities.
B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age.
C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Contract, discriminated against applicants or employees because of their membership in a protected class.
D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law.
E. Nothing contained in this Contract shall be construed in any manner as to require or permit any act which is prohibited by law.
Item 16 Page 340 of 344
SPX Cooling Tech, LLC
OEM Certification Letter
08-27-26
City of Vernon California
Malburg Generating Station
This is reference to the existing cooling tower at the site listed above. The existing tower is a Marley W466-6.0-03. The Original Marley order number is 217758.
This is to certify that SPX Cooling Tech LLC / Marley is the original equipment manufacturer and installation contractor for the equipment. SPX designs, tests and manufactures its own Fill Media, Drift Eliminators, and Mechanical equipment components. SPX Cooling Tech LLC employs a full in-house staff of engineers that design and ensure all new tower installations and repairs are completed within our required specifications.
As the OEM SPX/Marley maintains the original drawings and design specifications which are confidential and constitute the exclusive property of SPX/Marley. The documents or their contents may not be made public in any manner, distributed or loaned to others, or reproduced or copied either in whole or part without the prior written consent of SPX/Marley.
SPX is a participating member of the CTI STD-202 program showing our commitment to meeting our client’s expectations for thermal performance. We take a somewhat conservative approach to thermal performance and have an outstanding track record of meeting and exceeding our commitments. Cooling Technology Institute (CTI) recommends that CTI STD-202 participation be specified. Through many years of testing in both our research and development facility as well as numerous field tests, SPX has strong confidence in our thermal ratings and products. We would welcome Malburg personnel to visit our R&D center in Kansas City and our production facilities in Olathe, Kansas to demonstrate our capabilities and our focus on high quality and efficient components.
Best Regards,
Bill Wright
Power Sales
SPX Cooling Tech, LLC
7401 West 129th Street
Overland Park, KS 66213
[email protected]
MOB 816.560.2263
www.spxcooling.com
SPX Cooling Tech, LLC 7401 West 129th Street, Overland Park, Kansas 66213 www.spxcooling.com Item 16 Page 341 of 344 26BP0207 Rev.5
Ben Piontkowski
10/20/2026
FOB Factory
Item QTY LEAD TIME UNIT PRICE EXT. PRICE
1 1
8-10 Weeks
ARO
$ 34,580.00 $ 34,580.00
2 1
8-10 Weeks
ARO
$ 34,580.00 $ 34,580.00
3 2
8-10 Weeks
ARO
$ 24,546.00 $ 49,092.00
4 2
8-10 Weeks
ARO
$ 5,989.00 $ 11,978.00
Geareducer assembly, 32.2 Series, 9.62 ratio, M1
fan shaft, Triple epoxy paint
P/N: B66658
DLE Quote
DESCRIPTION
Geareducer assembly, 32.2 Series, 9.62 ratio, M1
fan shaft, Triple epoxy paint
P/N: B66658
This gearbox is contingent based on
inspection/evaluation of Malburg's existing
gearbox. SPX/DLE, will not proceed with this
second gearbox until existing gearbox undergoes
full evaluation and it's determined if Malburg
wants to proceed with repairs, remanufactured
gearbox or new gearbox. This pricing is for a new
gearbox.
Recipient:
Project:
Date:
City of Vernon (Malburg Generating)
Adriano Marki
7/22/2026
Company: Quote #:
DLE Sales Rep:
Quote Expires:
5562 Research Dr. Huntington Beach, CA 92649
Shipping Terms:
HP7000 Fan Assembly 264 inch Diameter 7 Blades
S300 Hardware bored to fit 32.2M1 0.5 inch/ft
taper 1 1/4 inch key Output Shaft(s)
P/N: C53028
DRIVESHAFT ADDAX LRA650.425-SS DBSE 91.125,
MOTOR BORE 3 3/8 KYWY 7/8X7/16, GRDR BORE 2
3/8 KYWY 5/8X5/16
P/N: COMMODITY1
Item 16 Page 342 of 344
5 2
8-10 Weeks
ARO
$ 13,158.00 $ 26,316.00
6 2
8-10 Weeks
ARO
$ 1,555.00 $ 3,110.00
7 40
8-10 Weeks
ARO
$ 36.00 $ 1,440.00
8 40
8-10 Weeks
ARO
$ 27.00 $ 1,080.00
9 60
8-10 Weeks
ARO
$ 7.20 $ 432.00
10 1 N/A $ 17,073.84 $ 17,073.84
11 1 N/A $ 12,000.00 $ 12,000.00
NET TOTAL $ 191,681.84
Ben Piontkowski
Southern CA & NV Sales
DLE Equipment
714-904-6765
[email protected]
V-ASSEMBLY ADAPTER ARM, MAT'L
POLYPROPYLENE
P/N: 667030
Sales Tax (10.50%)
Estimated Shipping
Triple Epoxy Coated Mechanical Equipment
Support for tower model W466A, includes TE
coated torque tube, driveshaft guards, and
attaching hardware to install per cell
P/N: FEPBRANDED1
Oil Fill and Drain Line for tower model W466A,
includes sight glass, piping, fittings, flex hose, vent, placard, and attaching hardware to install, per cell
P/N: FEPBRANDED1
GASKET ADAPTER ARM SEAL, RING MATL EPDM
RUBBER
P/N: 667048
V-ASSEMBLY COUPLING MRLYTHD-M X F,
POLYPROPYLENE
P/N: 334078
Item 16 Page 343 of 344
August 27, 2026
Vernon Public Utilities
Malburg Generating Station
4963 South Soto Street
Vernon, CA 90058
Attn: Richard Corbi
Subject: Representation for SPX Cooling Tech, LLC
Dear Mr. Corbi:
Please be advised that DLE Equipment, Inc. (DLE) is the sole authorized representative for SPX Cooling Tech, LLC (SPX CT) for the following counties in southern California:
• Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura
DLE is responsible for the following Market Sectors of SPX CT’s Process Cooling division, which includes:
• Power Generation
• Heavy Industrial Processes
Products and services for these market sectors include Field-Erected Cooling Towers, Factory-Assembled Cooling Towers, Recold®, Reconstruction Services, and Parts.
Sincerely,
Dave Lang
President/Owner
DLE Equipment Inc
5562 Research Drive
Huntington Beach, CA 92649
Phone: (714) 606-1837
Email: [email protected]
Item 16 Page 344 of 344