HomeMy WebLinkAboutAgenda Report - July 10, 2012 D-01 SM1M
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM 11)i
AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Enter into a Reimbursement
Agreement Between the City of Lodi and Holz Rubber Company for Utility Service
and Transformer Upgrade Project and Approve Specifications and Authorize
Advertisement of Bids to Procure Pad m ount Transformer ($98,100)
MEETING DATE: July 10,2012
PREPARED BY: Electric Utility Director
RECOMMENDEDACTION: Adopt a resolution authorizing the City Manager to enter into a
Reimbursement Agreement between the City of Lodi and Holz
Rubber Company for utility service and transformer upgrade project,
at an estimated cost of $98,100, and approve specifications and
authorize advertisement of bids to procure padmount transformer.
BACKGROUND INFORMATION: Holz Rubber Company (HR) will be expanding its business; as a
result, HR will be installing nine pieces of manufacturing equipment.
In order to provide sufficient electric power to this equipment, HR
needs to upgrade a portion of its electric infrastructure at its plant located in the 1100 and 1200 blocks of
South Sacramento Street. As part of its utility service upgrade HR must also purchase and install a new
1,500 kVA transformer. To facilitate this project HR has requested that the City of Lodi Electric Utility
Department (EUD) purchase and install all required utility -related materials, including the transformer.
As outlined in the attached ReimbursementAgreement, HR will pay $20,000 prior to the start of this
project, and then reimburse the utility over the next 24 months (in equal monthly payment installments),
until the full amount is repaid. Actual costs will be trued -up in accordance with the EUD Rules and
Regulations.
FISCAL IMPACT: Additional revenue resulting from increased sales is unknown at this time.
FUNDING: Funding is available in FY2012/13 EUD Budget Account Number 160650; loan to
be repaid to this account.
Jordan Ayers
Deputy City Manager/Internal Srvice it tor
7, Ekiabeth A. Kirkley
Electric Utility Director
PREPARED BY: Rob Lechner, Manager, Customer Service & Programs
EK/RSUIst
APPROVED:
onradt Bartlam, City Manager
REIMBURSEMENT AGREEMENT
UTILITY SERVICE AND TRANSFORMER UPGRADE PROJECT
This ReimbursementAgreement ("Agreement") is made as of the day of July,
2012, by and between the City of Lodi, a California municipal corporation ("City") and Holz
Rubber Company, Inc., a California corporation ("Holz").
Recitals
1. To accommodate Holz's demand for increased electricity, City agrees to
purchase and install designated utility materials (more fully described in Attachment A
hereto), and a 1,500 kVA transformer, as part of a utility service and transformer upgrade
project benefiting the Holz facilities located in the 1100 and 1200 blocks of South Sacramento
Street, Lodi, San Joaquin County, California (the "Project").
2. Holz agrees to reimburse City for all costs associated with the Project pursuant
to terms and conditions set forth below.
3. Holz further agrees that following completion of the Project, Holz will own the
equipment comprising the Project and further agrees that Holz is responsible for all future
maintenance, repair and replacement of the same.
Witnesseth
WHEREFORE, in consideration of the foregoing, and other good and valuable
consideration, the receipt of which of hereby acknowledged, the parties hereby agree as
follows:
1. The total estimated purchase price of the utility materials described in
Attachment A is the amount of $98,100. Because this is an estimated cost, the City will "true -
up" the actual cost upon the completion of the Project and provide Holz with an invoice
itemizing, all materials, equipment and labor costs incurred by City concerning the Project.
2. In the event that the labor required to perform the Project occurs after City of
Lodi Electric Utility Department operating hours (7:OOam to 4:30pm, Monday through Friday,
excluding holidays and weekends), Holz will be charged any/all additional labor costs over
and above the costs identified on Attachment A.
3. Upon execution of this Agreement Holz will pay the City an initial payment
in the amount of $20,000.
4. The balance due and owing by Holz to City for the Project (as set
forth in an invoice delivered to Holtz on completion of the Project) will be payable to City in
equal monthly installments over a period of twenty-four (24) consecutive months until the
balance is paid in full. The first monthly payment will be due and payable by Holz 60 -days
following completion of the Project. Thereafter, Holz will make monthly payments to City, no
later than the 20th day of each month thereafter.
5. The failure of Holz to pay, in full, any payment required under this
Agreement when due following written notice by City to Holz of such failure and ten (10) days
opportunity to cure, shall constitute an event of default under this Agreement.
(a) Upon occurrence of such an event of default, the entire unpaid balance due
under this Agreement shall at the option to the City become immediately due and
payable upon written notice to Holz without further demand by City.
(b) The failure of City to exercise the remedy set forth above or
any other remedy provided by law upon the occurrence of one or more of the
foregoing events of default shall not constitute a waiver of the right of City to exercise
any remedy at any subsequent time in respect to the same or any other default. The
acceptance by City of any payment which is less than the total amounts due and
payable at the time of such payment shall not constitute a waiver of the right to
exercise any of the foregoing remedies or options at that time or at any subsequent
time, or nullify any prior exercise of any such remedy or option, without the express
written consent of City, except as to the extent otherwise provided by law.
(c) Holz agrees to pay all costs and expenses, including
reasonable attorney's fees and any other professional service fees or costs, incurred
by City in the event of default, regardless of whether suit is filed to seek enforcement
under this Agreement.
6. The provisions of this Agreement are not intended to create, nor
shall they in any way be interpreted to create a joint venture, a partnership, or any other
similar relationship between the parties.
7. All notices required by this Agreement shall be in writing and delivered in
person or sent by certified mail, postage prepaid, as follows:
To City:
Elizabeth Kirkley, Electric Utility Director
City of Lodi
1331 South Ham Lane
Lodi, CA 95242
To Holz:
Holz Rubber Company, Inc.
1129 South Sacramento Street
Lodi, CA 95240
8. No modification of this Agreement shall be valid unless said modification is in
writing and signed by both parties.
9. This Agreement shall be governed by the laws of the State of California.
Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin
County Superior Court. If any part of this Agreement is found to conflict with applicable laws,
such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the
remainder of this Agreement shall be in force and effect. In the event any dispute between
the parties arises under or regarding this Agreement, the prevailing party in any litigation of
the dispute shall be entitled to reasonable attorney's fees from the party who does not prevail
as determined by the San Joaquin County Superior Court.
10. This Agreement represents the entire understanding of City and Holz as to
those matters contained herein. No prior oral or written understanding shall be of any force
or effect with respect to those matters covered hereunder. This Agreement may not be
modified or altered except in writing, signed by both parties.
IN WITNESS HEREOF, the parties hereto have entered into this Agreement effective as of
the date set forth hereinabove.
HOLZ RUBBER COMPANY, INC. CITY OF LODI,
a California corporation a California municipal corporation
By:
Name: Konradt Bartlam
Title:/e2-7' City Manager
ATTEST:
RANDI JOHL, City Clerk
APPROVED AS TO FORM:
D. STEPHEN SCHWABAUER, City Attorney
JANICE D. MAGDICH, Deputy City Attorney
ATTACHMENT 'A': Holz Rubber Utility Service & Transformer Uaarade Proiect
I. The aroiect includes:
• One transformer of 12/0.480/0.277kV (1,500 kVA transformer), three phase 4 -wire
system
• Distribution Pole relocation
• 12kV riser cable and cut out switch arrangement
• Pulling of Low Voltage cable from the transformer to the expected distribution panel
11. The aroiectcost estimate includes:
• Price for one (1) 1500kVA, 12/0.48/0.277 kV, 60Hz transformer,
• Installation of transformer and low voltage conductors (cables and conductors), and
accessories
• Relocation of one (1) 12kV pole
• Purchase and installation of one (1) 12kV riser cable and cut out switch
• Administrative costs (including engineering and technical support staff)
III.The aroiectcost estimate does not include the followina:
• the distribution panel
• electrical design and electrical Installationto the customer's new processing
equipment
• design and installation of one (1) transformer pad
• layout of underground conduit and restoration of the property in or adjacent to the
project
Estimated Proiect Cost:
1. transformer cost
2. transformer installation
3. underground material
4. installation of underground material
5. overhead material
6. installation of overhead material
7. overhead costs
8. equipment
9. administrative costs
10. other unknown costs
11. sub -total
12. 25% Contingency
Total
$27,500.00
$ 1,200.00
$12,500.00
$ 9,600.00
$ 1,520.00
$ 4,325.00
$ 9,835.00
$ 3,000.00
$ 5,000.00
$ 4,000.00
$78,480.00
$19.620.00
$98,100.00
RESOLUTION NO. 2012-108
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ENTER INTO A REIMBURSEMENT
_ AGREEMENT BETWEEN THE CITY OF LODI AND HOLZ RUBBER
COMPANY FOR UTILITY SERVICE AND TRANSFORMER
UPGRADE PROJECT
WHEREAS, Holz Rubber Company (HR) will be expanding its business; as a result, HR will
be installing nine pieces of manufacturing equipment; and
WHEREAS, in order to provide sufficient electric power to this equipment, HR needs to
upgrade a portion of its electric infrastructure at its plant located in the 1100 and 1200 blocks of
South Sacramento Street; and
WHEREAS, as part of its utility service upgrade, HR must also purchase and install a new
1,500 kVA transformer; and
WHEREAS, to facilitate this project, HR has requested that the City of Lodi Electric Utility
Department (EUD) purchase and install all required utility -related materials, including said
transformer: and
WHEREAS, as outlined in the Reimbursement Agreement, HR will pay $20,000 prior to the
start of this project and then reimburse the utility over the next 24 months (in equal monthly payment
installments) until the full amount is repaid with actual costs being trued -up in accordance with the
EUD Rules and Regulations; and
WHEREAS, additional revenue resulting from increased sales is unknown at this time; and
WHEREAS, funding is available in FY2012/13 EUD Budget Account Number 160650, the
loan to be repaid to this account.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize
the City Manager to enter into a Reimbursement Agreement between the City of Lodi and Holz
Rubber Company for a utility service and transformer upgrade project at an estimated cost of
$98,100, which will be true -up to actual costs at the completion of the project.
Dated: July 10, 2012
I hereby certify that Resolution No. 2012-108 was passed and adopted by the City Council of
the City of Lodi in a special meeting held July 10, 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— Norte:
2012-108
City Clerk