HomeMy WebLinkAboutMinutes - April 15, 1998LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, APRIL 15, 1998
7:00 P.M.
1. ROLL CALL
Present: Council Members - Johnson, Land, Mann, Pennino and Sieglock (Mayor)
Absent: Council Members - None
Also Present: City Manager Flynn, Deputy City Manager Keeter, Public Works Director Prima,
Community Development Director Bartlam, Finance Director McAthie, Electric
Utility Director Vallow, Parks and Recreation Director Williamson, Information
System Manager Helmle, City Attorney Hays and City Clerk Reimche
2. I NVOCATIO N
The invocation was given by Pastor Natalie Reyes, BAHAT
3. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Sieglock.
4. AWARDS / PROCLAMATIONS / PRESENTATIONS
The presentations as listed on the agenda were heard out of order.
a) Mayor Sieglock presented a proclamation to Brad Jones with the Employment
Development Department (EDD) proclaiming the week of May 3 - 9, 1998 as "Hire a
Veteran Week" in the City of Lodi.
b) Mayor Sieglock presented a proclamation to Edwin Cotton and Malinda Wallis with the
Lodi Boys and Girls Club proclaiming the week of April 19 - 26, 1998 as "National Boys
and Girls Club Week" in the City of Lodi.
C) Mayor Sieglock presented a proclamation to Doris McCaughna with the Lodi Women's
Center proclaiming the month of April 1998 as "Sexual Assault Awareness Month" in the
City of Lodi.
d) Mayor Sieglock presented a proclamation to Kristy Phillips and Bill Dauer with Lodi
Memorial Hospital proclaiming Saturday, May 9, 1998 as "Walk For The Health Of It Day"
in the City of Lodi.
e) Agenda item #D -3(a) entitled, "Presentation of Certificate of Appreciation to Shawna
McCabe with Creative Designs" was rescheduled for the meeting of May 6, 1998.
f) Julia Rough with the Greater Lodi Area Youth Commission acknowledged the Teen of the
Month, Suzanne Radotic from Tokay High School, and the Honorary Teen of the Month,
Darin Guillot from Liberty High.
g) Deputy City Manager Keeter provided the City Council with an update regarding the All
America Cities Award application. Further, Mayor Sieglock presented Debi Baker, Linda
Hansen and Keith Land with Certificates of Recognition for their hard work in assisting
staff with this application packet.
Continued April 15, 1998
5. CONSENT CALENDAR
In accordance with report and recommendation of the City Manager, Council, on motion of
Council Member Johnson, Pennino second, unanimously approved the following items hereinafter
set forth except those otherwise noted:
a) Claims were approved in the amount of $2,393,644.59 and Disbursements Through Wire
Transfer in the amount of $2,331,176.23.
b) The minutes of April 1, 1998 (Regular Meeting) were approved as written.
C) Accepted the quarterly report of the City of Lodi pooled money investment account as
required by SB564.
d) Adopted Resolution No. 98-58 awarding the bid for the purchase of five padmount
transformers to the bidders whose proposals and equipment met City of Lodi
specifications, and whose transformers are expected to yield the lowest overall life -cycle
costs:
Kuhlman Electric, Versailles, KY 2 ea. 167KVA 10 $ 4,773.33
Howard Industries, Laurel, MS 1 ea. 75KVA 30 $ 3,597.77
Western States Electric, Portland, OR 2 ea. 1500KVA 30 $34,900.23
$43,271.33
e) Adopted Resolution No. 98-59 awarding the bid for the purchase of 25,000 feet of
#2AWG, 20,000 feet of #750Kcmil, and 34,000 feet of #1000Kcmil 15kV primary
underground conductor to the low bidder, Pirelli Cables of Columbia, South Carolina, in
the amount of $232,814.35.
f) Agenda item #E-6 entitled, "Contract award for the Industrial Substation Transformer #3
Addition and transfer of funds" was removed from the Consent Calendar and discussed
and acted upon following approval of the Consent Calendar.
g) Received Contract Change Orders for Hutchins Street Square Conference and
Performing Arts Center, 125 South Hutchins Street.
h) Accepted the improvements under the "Asphalt Concrete Overlay, Slurry Seal and
Striping for Hutchins Street, Kettleman Lane to Harney Lane" contract and directed the
City Engineer to file a Notice of Completion with the County Recorder's office.
Authorized the City Manager to execute the necessary pledge to participate in the funding
for the California Biosolids Land Application General Order as part of Wastewater
Discharge Requirements for Wastewater agencies, including Lodi, throughout the State of
California and appropriated funds in accordance with staff recommendation.
j) Approved the standardization of the traffic signal controller/cabinet systems.
k) Agenda item #E-11 entitled, "Approve purchase and implementation of a Customer
Information and Utility Billing System" was removed from the Consent Calendar and
discussed and acted upon under the Regular Calendar.
Adopted Resolution No. 98-62 approving the 1997/98 budget reductions of $134,500.
0a
Continued April 15, 1998
6. ACTION ON ITEM REMOVED FROM THE CONSENT CALENDAR
a) Agenda item #E-6 entitled, "Contract award for the Industrial Substation Transformer #3
Addition and transfer of funds".
Electric Utility Director Vallow reminded the City Council that on March 10, 1998, bids
were received and opened for this project. Three bids were received with the results
shown below:
Bidder Amount Comments
Power Providers, Rancho Cordova $ 777,159
T&H Joint Venture, Jamestown $ 748,000 Did not acknowledge Addendum
Contra Costa Electric, Martinez $1,077,804 Did not acknowledge Addendum
During the bidding process, at the request of one of the prospective bidders, an
addendum was issued. The Instructions to Bidders in the Bid Documents require that a
bidder must acknowledge receipt of all addenda and include such acknowledgment in the
proposal together with the bid and bid bonds. Two of the bidders did not include such
acknowledgment with their bid, therefore, rendering the bids "not responsive".
On March 12, 1998, at 11:51 a.m. (2 days following the bid opening), T&H Joint Venture
did contact the City to indicate that they had received the addendum. The addendum had
been forwarded to their estimating department but was not returned to be included with
their bid documents, nor was receipt acknowledged in the bid.
The lowest monetary bidder (T&H Joint Venture) has been notified of the
recommendation to award this bid to the lowest responsible bidder including the reason
for this recommendation and has been informed of the opportunity to address the City
Council prior to the award. The Engineer's Estimate for this project was $571,000. The
discrepancies between the Engineer's Estimate and the bids received have given rise to
extensive analysis of the bids received as well as what reasons may have caused this
difference. The most significant reason for the difference is the market conditions at
present and for the foreseeable future in California. Since January 1998 the contracting
market for this type of work has seen a massive increase in requests for bids of this
magnitude and much larger projects resulting in a shortage of skilled labor and a relatively
low response to this bid request by the City, considering bid documents (at a charge)
were mailed to 10 interested contractors and notices placed at several exchanges as well.
The Engineer's Estimate underestimated the labor rates and the mobilization charges
which are directly attributable to the market conditions. Other line items in the bid are not
as easily identifiable between bidders. However, it has been learned that should the City
elect not to award this bid and rebid, it is likely that fewer bids will be received but more
importantly most probable at a higher price due to the demand in the market.
Therefore, based on the conditions as they currently (and in the foreseeable future) exist
and the fact that this improvement to the City's electric system is critically needed to serve
the industrial sector of the City under emergency conditions it is recommended that the
bid be awarded to the Lowest Responsible Bidder. It should also be noted that the power
transformer awarded October 15, 1997, will be arriving in Lodi in late July. In order to
receive this transformer without additional costs, a portion of this contract (the pad and oil
containment) must be completed prior to arrival.
Two additional actions by the Council are recommended:
Continued Apri115, 1998
• That Council authorize the transfer of $365,000 from the Department's reserves to
augment the budgeted funds for this project.
• That Council approve the extension of the agreement with Power Engineers to
include tasks 13 and 14 for Construction Inspection services and Commissioning
(testing) of the substation as outlined in Power Engineers proposal, Revision A, dated
August 12, 1997, at a cost of $53,700.
Considering the importance of this substation the need to have skilled inspections
throughout the construction period cannot be over emphasized. The demand on existing
staff from numerous other construction and maintenance projects precludes consideration
to perform inspection in house.
The project cost is shown below:
Design, construction contract, bid evaluation $ 86,255
and contractor selection (Power Engineers)
Power Transformer $ 392,287
Construction Contract $ 777,159
Inspection services and commissioning $ 53.700
Total project $ 1,309,401
Addressing the City Council regarding the matter were the following persons:
1. Dennis Ledbetter, T&H Joint Venture, Jamestown, acknowledged that his
company did not include a proper acknowledgment of addenda with their bid. He
indicated that it was an oversight on their part and appealed their bid being
rejected because they did not acknowledge the addendum. Mr. Ledbetter further
indicated that there are provisions in the specifications that would allow the City
Council to waive any informalities for non-conformance.
2. Steve Zimmel, CEO, Power Providers, Rancho Cordova, also addressed the City
Council urging that in order to maintain the sanctity of the bidding process, any
bids received where the addendum was not acknowledged should be rejected.
Following questions regarding the matter being directed to the City Attorney, he
responded that the City Council should make every attempt to have integrity in the bidding
procedure. Further, Mr. Hays indicated that the City Council has the authority to establish
rules regarding the bidding procedure. Whether or not it is a triviality is up to the City
Council, but if the Council continually waves the rules, it will erode the integrity of the
bidding procedure.
Concern was expressed by Council Member Pennino regarding $365,000 being proposed
to be transferred from reserves to augment the budgeted funds. Both Electric Utility
Director Vallow and Manager of Engineering and Operations Hansen responded to this by
giving an overview of the reasons these bids came in so far over the engineer's estimate
of $571,000.
Following additional discussion with questions being directed to staff, the City Council, on
motion of Mayor Pro Tempore Land, Sieglock second, adopted Resolution No. 98-60
awarding the contract for the Industrial Substation Transformer #3 Addition to the lowest
responsible bidder, Power Providers, Rancho Cordova, in the amount of $777,159,
authorized the transfer of sufficient funds to fully fund this project and approved extension
of agreement for professional services by the following vote:
Ayes: Council Members - Land, Pennino and Sieglock (Mayor)
Noes: Council Members - Johnson and Mann
Absent: Council Members - None
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Continued April 15, 1998
PUBLIC HEARINGS
None.
8. COMMUNICATIONS (CITY CLERK)
a) On recommendation of the City's Risk Manager and/or the City's contract administrator,
Insurance Consulting Associates, Inc. (ICA), the City Council, on motion of Council
Member Pennino, Johnson second, unanimously rejected the following claims:
Anna Guthmiller, date of loss 2/2/98
2. Karrie Rae Mano, date of loss 2/4/98
b) City Clerk Reimche read the following ABC Licenses:
1. Robert C. Hamilton, The Day Spa, 625 East Pine Street, Lodi, On -Sale Beer and
Wine, Original License This item was pulled from the agenda
2. Landucci, Inc., Landucci's Market Place, 1320 West Lockeford Street, Lodi,
Off -Sale Beer and Wine, Original License
3. Akhtar Izaz Ali to Jyoti S. Singh, Aldee Market, 216 North Cherokee Lane, Lodi,
Off -Sale General, Person to Person Transfer
4. Gallien Inc., to Hossein Fardsalehi, Mountain Mikes Pizza, 550 South Cherokee
Lane, Suite E, Lodi, On -Sale Beer and Wine, Person to Person Transfer
5. Jyoti S. Singh to Promod K. Trehan, Kettleman Lane Chevron, 601 East
Kettleman Lane, Lodi, Off -Sale Beer and Wine, Person to Person Transfer
C) Agenda item #G -3(a) entitled, "Appointment to the Parks and Recreation Commission"
was pulled from the agenda and scheduled for a Special Meeting on April 28, 1998 at
7:00 a.m. Mayor Sieglock announced that he was still interviewing applicants and
indicated that an appointment will be made at that time.
9. REGULAR CALENDAR
a) Agenda item #H-1 entitled, "Policy on private directional signs located within the public
right of way".
Public Works Director Prima informed the City Council that the City has installed
decorative signing on main routes directing traffic to the Downtown/Civic Center area.
These signs, and other concerns, have sparked interest by other organizations to install
similar signs for their facilities. They include the Library, Hutchins Street Square, and,
most recently, a formal request from the Loel Center. Staff has concerns over the long-
term ramifications of approving these requests, mainly sign proliferation, and has delayed
responding in order to evaluate options.
Options
Staff sees three general policy options:
1) Restrictive - This option would be one in which only City operated/funded or other
major public facilities would be signed. These would include the existing Civic
Center/Downtown signs as well as the blue "Hospital" signs located on Kettleman
Lane, the green "Grape Festival", "National Guard Armory", and similar signs
approved by Caltrans along the State highways and ramps. City "funded" could
allow such facilities as the Boys and Girls Club to be included. This policy would
also, of course, include the Library and Hutchins Street Square.
Continued April 15, 1998
2) Moderate - This option would allow non-profit, non -denominational organizations
providing public services to have directional signs. This would include the Loel
Center, the Women's Center, and similar organizations. This could also be
limited to those organizations receiving City funding, such as the Community
Development Block Grant Program.
3) Open - This option would allow any non-profit or similar organization to have
directional signs. This would include churches, lodges, clubs, and similar
organizations which have a membership or specific clientele.
Other Requirements
These options all begin on the basis that permanent signage for any commercial activity
will not be permitted. This prohibition includes the type of directional/commercial logo
signage allowed by Caltrans at highway ramps. All the options include the requirement
that the requesting organization will pay for the signs and that there will be a limit as to the
number of signs. In most cases, the limit would be four signs, allowing for two locations
with two signs --one for each direction. Encroachment permits would be required and they
would include design and maintenance provisions to City standards and the authority for
the City to remove the sign(s) if not maintained. Presently, there is no fee for
encroachment permits and staff intends to bring this fee issue back to the City at a later
date.
Staff felt either Option 1 or 2 can be reasonably defined and administered and will not
lead to sign clutter. Option 3, while workable, could result in placement of an excessive
number of signs.
Recommendation
Staff recommended that Option 2, with the restriction of City funding and the "other
requirements", be approved and that the Public Works Department administer the policy
with the approval of the City Manager.
Speaking in support of the recommendation was Shelby Young, Senior Administrator,
Loel Senior Center, 115 South Washington Street, Lodi. Ms. Young indicated that the
Loel Center would be willing to pay for this signage and would also be willing to share a
sign with its neighbor, the Lodi Women's Center.
Following discussion with questions being directed to staff, the City Council, on motion of
Council Member Pennino, Johnson second, unanimously approved the recommended
policy (Option 2 - moderate with City funding restruction and other requirements
described in the staff report) on the installation of permanent private directional signs
located within the public right of way.
10. RECESS
Mayor Sieglock called for a ten-minute recess and the City Council meeting reconvened at
approximately 8:25 p.m.
11. ACTION ON ITEM REMOVED FROM THE CONSENT CALENDAR
a) Agenda item #E-11 entitled, "Approve purchase and implementation of a Customer
Information and Utility Billing System".
P
Continued April 15, 1998
Deputy City Manager Keeter provided the following report to the City Council. The City of
Lodi Finance Department provides billing services for electric, water, wastewater, and
refuse utilities. The current system is not year 2000 compliant nor does it meet electric
deregulation requirements.
Staff members began evaluating various Customer Information System (CIS) packages
over a year ago, and at that time studied services and products from over 20 vendors. In
addition, staff and two Council Members traveled to Oregon to meet with Orcom
representatives and to also meet with an alternative vendor in the state of Washington.
The bottom line at the time was a preliminary recommendation to acquire Orcom
Systems, Inc.'s Mirror Pond software product. However, the project proposal was quoted
at $977,250 for the package in addition to implementation costs, which put the total
project cost at over $1.2 million. Staff was somewhat hesitant to recommend a project of
this magnitude without first evaluating alternatives such as outsourcing the function or
becoming a member of a service bureau.
The City subsequently joined efforts with the Northern California Power Agency (NCPA)
and with the Southern California Public Power Authority (SCPPA) to collaboratively solicit
proposals from CIS vendors. The process was time-consuming yet extremely thorough
and involved soliciting Requests for Proposals for four primary options:
1. CIS package acquisition by each individual agency for product of their choice.
2. CIS package acquisition by more than one agency of the same product (volume
discounting).
3. Service bureau formation whereby agencies jointly purchase one system and run the
system out of one agency.
4. Total outsourcing of the utility billing function.
When the NCPA/SCPPA process was complete, it became quite evident that there were
limited choices for immediate, cost-effective solutions; primarily those offered by Enable,
SCT, and Orcom. The Finance Director and the Electric Utility Director traveled with
representatives from the NCPA/SCPPA group to see first-hand the Enable outsourcing
option (which uses Orcom software) and to see the SCT product in service.
Through their review of SCT and Enable, and having previously evaluated the Orcom
system, their joint recommendation is the Orcom product. Orcom is "ready -to -go," has
the actual software already designed and functional, and is the least costly option to the
City on a per customer basis. Mr. Stan Helmle, Information Systems Manager, requested
of Orcom that they "refresh" their original proposal cost estimates and has since received
a revised proposal of $793,500 for the package. Total costs associated with the project
include the following:
Initial Costs:
Orcom Software and Quick Start — The Orcom Mirror Pond software is a
customer information and billing system (CIS) software. The Quick Start
implementation methodology has been developed to provide a more reliable,
cost-effective method of installation, which attributes to the reduction in cost from
Orcom's original proposal.
Cost - $793,500
2. Hardware Upgrade — The IBM AS/400 hardware is in place at the City of Lodi.
Hardware is needed to ensure that at least 40 gigabytes of useable disk space is
available for the implementation of the Mirror Pond CIS.
Cost - $54,000
Continued Apri115, 1998
3. Rate Studies Module — This application allows for the creation and storage of
multiple rate scenarios for comparison and analysis. It can create "what -if'
scenarios and will help provide quick response to new economic development
opportunities and to staying competitive in a deregulated utilities market.
Cost - $30,000
4. Project Contingency — A typical project budget will include a contingency for
unforeseen costs in addition to those costs not yet defined. Contingencies will
often range from 10% - 20% depending on the project scope. The Orcom project
is well defined; however, the current system, like antiquated infrastructure, may
present unanticipated problems. Staff is recommending a 15% contingency.
Cost - $119,025
Annual Costs for First Three Years:
Contract Analyst — Since current staff members are entrenched in the J.D.
Edwards Financial Systems project as well as the day-to-day demands of data
processing, the addition of one contract programmer analyst whose main focus
will be CIS will be required for a three-year period to see the project through full
implementation.
Cost Per Year - $65,000
Annual Costs:
Orcom Extended Support — The extended support program will ensure that the
information system keeps pace with technological advancements, new ideas and
changing regulations, thereby protecting the investment in the system and the
training of staff.
Cost Per Year - $53,820
City staff members have conducted an extremely thorough review of CIS options in order
to confidently make the aforementioned recommendation for the Orcom project. The final
capital outlay for the project will be $956,850, which includes one time costs of:
• Orcom package and implementation $ 793,500
• Hardware upgrade $ 54,000
• Rate studies module $ 30,000
• Contingencies $ 119.025
TOTAL $ 996,525
Annual costs will include a three-year contract for an analyst for a total of $195,000 (or,
$65,000 per year including salary and benefits). There will also be annual costs for
extended support by Orcom in the amount of $53,820 per year.
In addition, it is anticipated that in the near future, the Finance Department will find it
necessary to focus a considerable amount of resources on customer service functions.
This function, although in place now, will grow and change along with the evolution of
deregulation and may make it necessary to hire and train employees in a full-time
capacity where the Department now has part-time employees.
Discussion followed with questions being directed to Deputy City Manager Keeter,
Finance Director McAthie, Electric Utility Director Vallow and Information Systems
Manager Helmle.
Continued Apri115, 1998
The City Council, on motion of Council Member Pennino, Johnson second, adopted
Resolution No. 98-61 approving the purchase and implementation of a Customer
Information System from Orcom Systems, Inc. for the City's utility billing and customer
service function by the following vote:
Ayes: Council Members - Johnson, Land, Pennino and Sieglock (Mayor)
Noes: Council Members - Mann
Absent: Council Members - None
12. ORDINANCES
a) Prior to the adoption of Ordinance No. 1659 by the City Council, the following persons
addressed the City Council regarding the matter:
Meenu Chanana, 220 North Cherokee Lane, Lodi, addressed the City Council
voicing her objection to the ABC Licenses that had been presented under
"Communications" earlier in the evening. Following questioning by Mayor
Sieglock, Mrs. Chanana indicated that she was in favor of Ordinance No. 1659
being adopted.
2. Virginia Lahr, 311 East Elm Street, Lodi, addressed the City Council applauding
them for the proposed ordinance indicating that she felt it would be most helpful in
the future when problems arise. Ms. Lahr also encouraged the City Council to
adopt like ordinances for other types of businesses.
3. Mrs. Jyoti S. Singh, Aldee Market, 216 North Cherokee Lane, Lodi, (the ABC
License for this business had been read earlier in the meeting under
"Communications") addressed the City Council indicating that the reason they
were pursuing a hard liquor license was to enhance their business and that they
were not trying to compete with any other business.
Following discussion, Ordinance No. 1659 entitled, "An Ordinance of the City Council of
the City of Lodi Amending Chapter 17.72 of the Lodi Municipal Code by Adding Section
17.72.040 (F) Requiring the Issuance of a Use Permit Prior to the Approval of an
Establishment Selling Alcoholic Beverages" having been introduced at a regular meeting
of the Lodi City Council held April 1, 1998 was brought up for passage on motion of
Council Member Land, Sieglock second. Second reading of the ordinance was omitted
after reading by title, and the ordinance was then adopted and ordered to print by the
following vote:
Ayes: Council Members - Johnson, Land, Mann, Pennino and Sieglock (Mayor)
Noes: Council Members - None
Absent: Council Members - None
13. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
There was no one wishing to speak under this segment of the agenda.
14. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
a) City Manager Flynn extended birthday wishes to the following people: Council Member
Pennino on April 2, 1998; City Attorney Hays on April 12, 1998; and Police Chief Hansen
on April 15, 1998.
2
Continued April 15, 1998
b) Mayor Pro Tempore Land stated that he had an opportunity to attend a recent Year 2000
Steering Committee meeting and talked briefly about the exciting events that are being
planned. Mayor Pro Tempore Land stated that presently there is a logo contest going on
and announced that submittals will be received until 5:00 p.m. May 1, 1998. The prize for
the winning entry will be $500.00.
Mayor Pro Tempore Land announced that commencing April 26, 1998 there will be a
series of events celebrating the Grand Opening of the Performing Arts and Conferencing
Center at Hutchins Street Square.
C) Mayor Sieglock announced that Saturday, April 18, 1998 the Lodi Boys and Girls Club will
be holding its annual auction and dinner, "Lights, Camera, Auction".
Mayor Sieglock indicated that the City had recently received the CalFed report on the
Delta. It is being proposed that 200,000 acres of irrigated land be converted to habitat.
Mayor Sieglock indicated that this would be very injurious to our economy and proposed
that the Council should adopt a resolution urging that this not be done. The Mayor asked
that staff review the subject report and prepare comments that can be submitted. Also
Mayor Sieglock indicated that several public hearings have been scheduled, but that none
of them will be held in San Joaquin County. The Mayor indicated that an immediate
request needs to be made to ensure that public hearings be held in San Joaquin County.
15. ADJOURNMENT
There being no further business to come before the City Council, Mayor Sieglock adjourned the
meeting at approximately 9:05 p.m.
ATTEST:
Alice M. Reimche
City Clerk
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