HomeMy WebLinkAboutAgenda Report - June 6, 2012 C-15AGENDA ITEM C. IS
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Rescinding Resolution No. 2012-51 Authorizing the City
Managerto Terminate the Existing Letter of Agreement with Holz Rubber
Company and Execute a Revised Letter of Agreement ($58,000)
MEETING DATE: June 6,2012
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution rescinding Resolution No. 2012- 51
authorizing the City Managerto terminate the existing Letter of
Agreement with Holz Rubber Company and execute a revised
Letter of Agreement in an amount not to exceed $58,000.
BACKGROUND INFORMATION: On May 2"d the City Council adopted a resolution authorizing the
City Managerto enter into a Letter of Agreement (LOA) with Holz
Rubber (HR) for the sale of designated municipal electric
distribution facilities in the amount cf $54,676.
Upon further inspection of the installed facilities it has been determined that a portion of the existing
equipment and materials need to be replaced with new. HR has agreed to pay the additional charges for
the new facilities. There will also be cost savings in replacing these facilities by decreasing the length of
outage required for the work which would have had to be performed after hours on overtime. HR agrees
to pay any overtime charges associated with this work.
HR has agreed to amend the existing LOA approved by the City Council on May 2, 2012. The revised
LOA is in the amount not to exceed $58,000 plus overtime labor charges, as required.
FISCAL IMPACT: The initial sale of facilities and services will result in revenue to the EUD in the
amount of $58,000. Net fiscal impact is insignificant.
FUNDING: Not applicable.
bViabeth Kirkley
Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Service & Programs
EAK/RSUIst
APPROVED:
Bartlam, City Manager
LETTER OF AGREEMENT: SALE OF MUNICIPAL FACILITIES
BETWEEN
THE CITY OF LODI
AND
HOLZ RUBBER COMPANY
This Letter of Agreement (LOA) is between the City of Lodi (COL) and Holz
Rubber Company (HR). Byway of this signed LOA, HR agrees to purchase and
maintain designated electric utility facilities as identified on the attached
Appendix A.
In summary, HR will purchase one existing transformer, five new
transformers and designated overhead electric distribution facilities located at the
customer's plant site in the 1100 and 1200 blocks of South Sacramento Street.
In purchasing the aforementioned equipment (transformers and overhead
electric distribution facilities), HR also agrees to properly maintain said
equipment and pay for all repairs necessaryfor maintaining said equipment in
the event of equipment failure in perpetuity.
The total purchase price of the equipment and associated labor costs listed on
Appendix A is in the amount of $58,000 (not to exceed figure) . Note: in the event
that the labor required to perform this project occurs after COL operating hours
(7:00am to 4:30pm, Monday through Friday, excluding holidays and weekends),
HR will be charged any/all additional labor costs above and beyond the costs
identified on Appendix A.
HR agrees to compensate the COL in the amount of $10,000 prior to start of
the project, and then payment of the balance in equal amounts the ensuing
twenty-four (24) months until the balance is paid in full. The first monthly
payment will be due two months following completion of said project.
IN WITNESS HEREOF, the parties hereto have entered into this Letter of
Agreement dated June , 2012.
HOLZ RUBBER
Title: -70 -
CITY OF LODI
Konradt Bartlam
Title: City Manager
ATTEST:
Randi Johl, City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER, City Attorney
JANICE D. MAGDICH, Deputy City Attorney
By:
(bis
Purchase existing plant & install
additional facilities
Purchase existing overhead
transformer
Labor and material costs to
install primary metering
equipment
Total
APPENDIX `A
$48,200.00 $a
$ 8,333.13 $C
Ir $1,000.00
$57,533.13
Depreciation for overhead material (OHM) based on 40 years service life.
Depreciation for padmount transformer based on 30 years service life.
The scope of work includes, but is not limited to:
1) Underbuild a customer owned 12kV line.
2) Relocate 12 kV 3-phase metering facility.
$48,200.00
$ 8,333.13
1.000.00
57.533.13
RESOLUTION NO. 2012-82
A RESOLUTION OF THE LODI CITY COUNCIL RESCINDING
RESOLUTION NO. 2012-51 AUTHORIZING THE CITY MANAGER
TO TERMINATE THE EXISTING LETTER OF AGREEMENT
BETWEEN THE CITY OF LODI AND HOLZ RUBBER COMPANY
AND EXECUTEA REVISED AGREEMENT FORTHE SALE OF
DESIGNATED MUNICIPAL ELECTRIC DISTRIBUTION FACILITIES
WHEREAS, on May 2, 2012, the City Council adopted a resolution authorizing the City
Managerto enter into a Letter cf Agreement (LOA) with Holz Rubber (HR) for the sale of designated
municipal electric distribution facilities in the amount of $54,676; and
WHEREAS, upon further inspection of the installed facilities it has been determined that a
portion of the existing equipment and materials need to be replaced with new, and HR has agreed to
pay the additional charges for the new facilities; and
WHEREAS, there will also be cost savings in replacing these facilities by decreasing the
length of outage required for the work which would have had to be performed after hours on
overtime, and HR had, as still does, agreed to pay any overtime charges associated with this work;
and
WHEREAS, HR has agreed to amend the existing LOA approved by the City Council on May
2,2012; and
WHEREAS, the revised LOA is in the amount not to exceed $58,000 plus overtime labor
charges, as required.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby rescind
Resolution No. 2012-51 and authorize the City Manager to terminate the existing Letter of
Agreement with Holz Rubber Company in an amount not to exceed $54,676 and execute a revised
Letter of Agreement between the City of Lodi and Holz Rubber Company for the sale of designated
municipal electric distribution facilities in the amount not to exceed $58,000 plus overtime labor
charges, as required.
Dated: June 6, 2012
hereby certify that Resolution No. 2012-82 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held June 6, 2012, by the following Vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, Nakanishi, and
Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
iR( JOHL
City Clerk
2012-82