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HomeMy WebLinkAboutAgenda Report - July 20, 2016 C-08TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM G8 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Extend Contract for Directional Drilling, Excavation, and Conduit Installation with Westech Industries, Inc. of Galt ($500,000) MEETING DATE: July 20, 2016 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to extend contract for directional drilling, excavation, and conduit installation, to Westech Industries, Inc., of Galt, in an amount not to exceed $500,000. BACKGROUND INFORMATION: The Electric Utility (EU) maintains approximately 123 miles of overhead electric lines and 110 miles of underground cable to provide service to nearly 26,000 customers. As the underground system ages, unforeseen and predictive failures are addressed by replacing and upgrading the underground cables and appurtenances. This action directly mitigates outages and results in increased electric service reliability for the community. Past industry practice utilized an open trench with direct buried cables without conduit; in some cases, conduit was installed and consequently crushed, or damaged beyond repair. The EU endeavors to utilize the least intrusive and most economically sensible approach to installing conduit for replacement and upgrade of failed or failing underground facilities. This approach requires the use of directional drilling to minimize disturbances to the community, while at the same time minimizing replacement of sidewalk, curb, gutter, and road surface, which expedites the conduit installation and system restoration processes. The original agreement was awarded to Westech Industries, Inc. by the City Council at its regular meeting on February 5, 2014, with an option to extend for three additional one-year terms. During this time, Westech Industries, Inc. has performed satisfactorily; therefore, staff recommends extending this contract for one additional year, which represents the second of three extensions. FISCAL IMPACT: Not to exceed $500,000. FUNDING AVAILABLE: Included in FY2016/17 Capital Budget Account No. 50199000.77020. Jordan Ayers Deputy City_M er/Inter .I Services Director Elizabeth A. Kirkley Electric Utility Director PREPARED BY: Charles J. Berry, Electric Utility Superintendent EAK/CJB/Ist APPROVED: IMO * d -LS Schwaba ty Manager CONTRACT EXTENSION AGREEMENT NO. 2 WESTECH INDUSTRIES, INC. THIS CONTRACT EXTENSION AGREEMENT, made and effective this day of , by and between the CITY OF LODI, a municipal corporation, hereinafter called "City", and WESTECH INDUSRIES, INC., hereinafter called "Contractor." WITNESSETH: 1. CONTRACT: Contractor and City, entered into a contract for Directional Drilling, Excavation, and Conduit Installation on May 9, 2014, and Contract Extension Agreement on August 25, 2015, extending the term of the contract to and including August 24, 2016. 2. Contractor and City now desire to extend the term of the contract for one (1) additional year to and including August 25, 2017. 3. TERM AND TERMS: All other terms and conditions, including compensation paid to Contractor, will remain as fully set forth in the Contract for Directional Drilling, Excavation, and Conduit Installation dated May 9, 2014, attached hereto as Exhibit A and made a part hereof as though fully set forth herein. CITY OF LODI, a municipal corporation WESTECH INDUSTRIES, INC. STEPHEN SCHWABAUER JOSEPH McCURLEY City Manager Officer Attest: JENNIFER M. FERRAIOLO City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH \ / City Attorney fl EXHIBIT A DIRECTIONAL BORING, EXCAVATION AND CONDUIT INSTALLATION SECTION 4 CONTRACT CITY OF LODI, CALIFORNIA THIS CONTRACT made by and between the CITY OF LODI, State of California, herein referred to as the "City," and VVESTECH INDUSTRIES, INC., herein referred to as the "Contractor." WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other, as follows: The complete Contract consists of the following documents which are incorporated herein by this reference, to -wit: Notice Inviting Bids Information to Bidders General Provisions Special Provisions Bid Proposal Contract Contract Bonds Plans The Latest Edition of Standard Specifications, State of California, Business and Transportation Agency, Department of Transportation All of the above documents, sometimes hereinafter referred to as the "Contract Documents," are intended to cooperate so that any work called for in one and not mentioned in the other is to be executed the same as if mentioned in all said documents. ARTICLE I - That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the City and under the condition expressed in the two bonds bearing even date with these presents and hereunto annexed, the Contractor agrees with the City, at Contractor's cost and expense, to do all the work and furnish all the materials except such as are mentioned in the specifications to be furnished by the City, necessary to construct and complete in a good workmanlike and substantial manner and to the satisfaction of the City the proposed improvements as shown and described in the Contract Documents which are hereby made a part of the Contract. ARTICLE II - The City hereby promises and agrees with the Contractor to employ, and does hereby employ, the Contractor to provide all materials and services not supplied by the City and to do the work according to the terms and conditions for the price herein, and hereby contracts to pay the same as set forth in Section 5-600, "Measurement, Acceptance and Payment," of the General Provisions, in the manner and upon the conditions above set forth; and the said parties for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained, ARTICLE III - The Contractor agrees to conform to the provisions of Chapter 1, Part 7, Division 2 of the Labor Code. The Contractor and any Subcontractor will pay the Directional Boring, Excavation and Conduit Installation Sec 6,doc 4.1 01/27/14 general prevailing wage rate and other employer payments for health and welfare, pension, vacation, travel time, and subsistence pay, apprenticeship or other training programs. The responsibility for compliance with these Labor Code requirements is on the prime contractor. ARTICLE IV - And the Contractor agrees to receive and accept the following prices as full compensation for furnishing all materials and for doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by the City, and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work and for well and faithfully completing the work, and the whole thereof, in the manner and according to the Plans and Contract Documents and the requirements of the Engineer under them, to -wit: Perform the work necessary for directional boring, installing conduit, and other incidental and related work for multiple projects with a contract price of not to exceed $500,000, all as shown on the plans and specifications for the above project. UNIT PRICE ITEMS ITEM NO. DESCRIPTION Trench 1 Mainline Trench (Non -Joint Use) 2 Secondary Trench (Non -Joint Trench) 3 Compact/Backfill Mainline Trench 4 Compact/Backfill Secondary Trench 5 Remove/Replace Concrete 6 UNIT I _ LF. LF LF LF SF Remove/Replace Asphalt SF Remove/Replace landscaping (Sod) SF Trench Plate Install/Remove (Including Prep) EA 38.63 55.32 10.20 1.0.20 _. 30.60 25.50 5.10 10.20 Directional Boring, Excavation and Conduit Installation Sec 6.doc 4.2 01/27/14 Conduit 9 10 _ Assemble and install 6" Conduit __.—______—�_ Assemble and install 4" Conduit LF 2.04 2.04 LF LF 11 12 Assemble and install 3" Conduit LF LF 1.02 Assemble and install 2" Conduit 1.02 13 Assemble and install 1" Conduit LF 0.51 14 Assemble and install 3/4" Conduit LF 0.51 15 Install Each Additional Conduit .._ _____ . __ ________ LF 1.02 Bore_—__ LF LF 16 Bore and Install 6" Conduit_ 59.02 17 18 Bore and Install 4" Conduit 50.28 Bore and Install 3" ConduitLF 4180 19 Bore and Install 2"Conduit LF 36.43 20 Bore and Install 1" Conduit -�~ LF LF 36.07 ___.__ ._ 35.99 21 22 Bore and Install 3/4" Conduit Send/Receive Pit (Per Job) _ �_ Install Each Additional Conduit Hourly Rate for Bore Crew EA LF HR 204.00 10.20 255.00 23 24 fisc. 25 Disposal of Excess Material _ CY 5.10 26 Construction Notification (Per Project) EA 102.10 27 EU Field Directed Work (Extra Work) $50000.00 ARTICLE V By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract, ARTICLE VI - It is further expressly agreed by and between the parties hereto that, should there be any conflict between the terms of this instrument and the Bid Proposal of the Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith. ARTICLE VII - The City is to furnish the necessary rights-of-way and easements and to establish lines and grades for the work as specified under the Special Provisions. All labor or materials not mentioned specifically as being done by the City will be supplied by the Contractor to accomplish the work as outlined in the specifications. ARTICLE VIII - The Contractor agrees to commence work pursuant to this contract within 30 calendar days and to diligently prosecute to completion within 45 WORKING DAYS for each project submitted within the one-year term of this contract. ARTICLE IX — This agreement may be extended for three (3) additional one-year terms at the City's option on the same terms and conditions as set forth herein. City shall exercise its option in writing 30 days before the expiration of this agreement. Directional Boring, Excavation and Conduit Installation Sec 6.doc 4.3 01127/14 WHEN SIGNING THIS CONTRACT, THE CONTRACTOR AGREES THAT THE TIME OF COMPLETION FOR THIS CONTRACT IS REASONABLE AND THE CONTRACTOR AGREES TO PAY THE CITY LIQUIDATED DAMAGES AS SET FORTH IN SECTION 6.5 OF THE SPECIAL PROVISIONS. CONTRACTOR AGREES THAT THIS AMOUNT MAY BE DEDUCTED FROM THE AMOUNT DUE THE CONTRACTOR UNDER THE CONTRACT, IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands the year and date written below. CONTRACTOR estech Industries Inc. (CORPORATE SEAL) CITY OF LODI By: Date: Attest: Randi Jo City Clerk son Approved As To Eorrn 1,t/c. Janice D. Magdich, Deptrt-r ity-AttOrney ()Vt. Directional Boring, Excavation and Conduit Installation Sec 6.doc 4,4 01/27/14 EXHIBIT C Insurance Requirements for Contractor The Contractor shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Contractor and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this Agreement, whether such operations be by Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: 1. COMPREHENSIVE GENERAL LIABILITY $5,000,000 Each Occurrence $6,000,000 General Aggregate 2. COMPREHENSIVE AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version, that provides liability coverage at least as broad as this form. All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Contractor; whichever is greater. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or a later version, that provides liability coverage at least as broad as this form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. An additional named insured endorsement is also required for Auto Liability. (b) Primary and Non -Contributory Insurance Endorsement Additional insurance coverage under the Contractor's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of the project that it is insuring. (c) Waiver of Subrogation Include a waiver of subrogation against the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. A waiver is required for General Liability and Auto Liability. (d) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Contractor shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. Page 1 I of 2 pages Risk: rev.03.2016 Insurance Requirements for Contractor (continued) (e) Completed Operations Endorsement For three years after completion of project, a certificate of insurance with a Completed Operations Endorsement, CG 20 37 07 04, will be provided to the City of Lodi. (f) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. (g) (h) Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. (i) Failure to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the names) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1s) day of the month following the City's notice. Notwithstanding any other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (j) Qualified Insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Com.ensation Insurance The Contractor shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Contractor's employees employed at the site of the project and, if any work is sublet, Contractor shall require the subcontractor similarly to provide Worker's Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Contractor. In case any class of employees engaged in hazardous work under this Agreement at the site of the project is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance, This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 2 I of 2 pages Risk: rev.03.2016 RESOLUTION NO. 2016-135 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT EXTENSION FOR DIRECTIONAL DRILLING, EXCAVATION, AND CONDUIT INSTALLATION WITH WESTECH INDUSTRIES, INC., OF GALT WHEREAS, the Electric Utility (EU) maintains approximately 123 miles of overhead electric lines and 110 miles of underground cable to provide service to nearly 26,000 customers; and WHEREAS, as the underground system ages, unforeseen and predictive failures are addressed by replacing and upgrading the underground cables and appurtenances; and WHEREAS, this action directly mitigates outages and results in increased electric service reliability for the community; and WHEREAS, past industry practice utilized an open trench with direct buried cables without conduit; in some cases, conduit was installed and consequently crushed, or damaged beyond repair; and WHEREAS, the EU endeavors to utilize the least intrusive and most economically sensible approach to installing conduit for replacement and upgrade of failed or failing underground facilities; and WHEREAS, this approach requires the use of directional drilling to minimize disturbances to the community, while at the same time minimizing replacement of sidewalk, curb, gutter, and road surface, which expedites the conduit installation and system restoration processes; and WHEREAS, the original agreement was awarded to Westech Industries, Inc., by the City Council at its regular meeting on February 5, 2014, with an option to extend for three additional one-year terms; and WHEREAS, during this time, Westech Industries, Inc., has performed satisfactorily; therefore, staff recommends extending this contract for one additional year, which represents the second of three extensions. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the City Manager to execute a one-year contract extension with Westech Industries, Inc., of Galt, California; and BE IT FURTHER RESOLVED that all other terms and conditions, including compensation paid to Contractor, will remain as fully set forth in the Contract for Directional Drilling, Excavation, and Conduit Installation dated May 9, 2014. Dated: July 20, 2016 I hereby certify that Resolution No. 2016-135 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 20, 2016, by the following vote: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Nakanishi ABSTAIN: COUNCIL MEMBERS — None NIFER City Clerk 2016-135 t4i FERRAIOLO�