HomeMy WebLinkAboutAgenda Report - February 1, 2017 C-08TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C., 8
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Reimbursement Agreement
with Lodi Iron Works for Utility Service Project ($33,284.66)
MEETING DATE: February 1, 2017
PREPARED BY: Business Development Manager
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute a
Reimbursement Agreement with Lodi Iron Works for a utility
services project in the amount of $33,284.66
BACKGROUND INFORMATION: As part of a utility service request from Lodi Iron Works, Lodi
Electric Utility (LEU) purchased and installed various utility
improvements for Lodi Iron Works to accommodate its plans for
new equipment and expanded services. This includes the installation of a new 1500 kVa pad mount
transformer and related equipment, as well as labor for the installation. According to Lodi Iron Works, the
additional equipment will allow it to improve production turnaround times and increase market reach,
potentially resulting in the hire of additional employees. The additional equipment will also increase Lodi
Iron Works' electrical usage.
Upon receipt of the estimated cost of the utility improvements from the City, Lodi Iron Works paid
$10,000 prior to the start of the work and then agreed to reimburse the balance of $33,284.66 to the City
by the end of the current calendar year as outlined in the attached Reimbursement Agreement.
The work is in the process of being completed and the actual repayment amount will be based on the
total final cost as provided by LEU to Lodi Iron Works. Actual final costs will be trued up in accordance
with LEU rules and regulations.
FISCAL IMPACT: Not applicable. All costs will be reimbursed by Lodi Iron Works.
FUNDING AVAILABLE: Not applicable.
Business Development Manager
GP"
phen hw: bauer, City Manager
REIMBURSEMENT AGREEMENT
UTILITY SERVICE - 820 S. Sacramento Street
LODI IRON WORKS
RECITALS
1. This Reimbursement Agreement (hereinafter "AGREEMENT") is entered into on
, 2016 by and between the CITY OF LODI, a municipal corporation, (hereinafter "CITY")
and Lodi Iron Works (hereinafter "LODI IRON WORKS").
2. At the request of LODI IRON WORKS, CITY has agreed to purchase and install designated
utility improvements more fully described in Exhibit A, attached hereto as part of a utility service project
benefitting LODI IRON WORKS at 820 S. Sacramento Street, Lodi, San Joaquin County, California
(hereinafter "PROJECT").
3. LODI IRON WORKS agrees to reimburse CITY for all costs associated with PROJECT
pursuant to the terms and conditions set forth below.
WITNESSETH
WHEREFORE, in consideration of the foregoing, and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties hereby agree as follows:
1. The total estimated cost of the utility materials and labor described in Exhibit A is the
amount of $43,284.66. The total final cost of the utility materials and labor described in Exhibit A will be
provided to LODI IRON WORKS upon completion of PROJECT with an invoice summarizing all materials,
equipment and labor costs incurred by CITY for PROJECT.
2. In the event that the labor required to perform PROJECT occurs outside of CITY
operating hours, LODI IRON WORKS will be charged any and all additional labor costs over and above
the costs identified in Exhibit A.
3. LODI IRON WORKS has already paid CITY $10,000.00 for costs associated with PROJECT,
as noted in Exhibit B.
4. The balance due and owing by LODI IRON WORKS for PROJECT will be payable to CITY in
installments as identified in Exhibit B, attached hereto until such time as the balance is paid in full, but
no later than December 29, 2017. The final schedule of installment payments (Exhibit B) will be
provided to LODI IRON WORKS following PROJECT completion prior to the first installment payment due
date and will be based on the total final cost of PROJECT. LODI IRON WORKS is responsible for the total
final cost of PROJECT.
5. This AGREEMENT is subject to approval by the Lodi City Council. In the event
AGREEMENT is not approved by the Lodi City Council, LODI IRON WORKS will be responsible for paying
in full, all final costs associated with PROJECT no Tater than February 28, 2017.
6. Failure by LODI IRON WORKS to pay, in full, any payment required under this
AGREEMENT when due following written notice by CITY to LODI IRON WORKS 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 of CITY, become immediately due and payable
upon written notice to LODI IRON WORKS without further demand by CITY.
b. 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 Tess 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. LODI IRON WORKS 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.
7. 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.
8. 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, Director
Lodi Electric Utility
1331 S. Ham Lane
Lodi, CA 95242
TO LODI IRON WORKS:
Kevin Van Steenberge
Lodi Iron Works
820 S. Sacramento Street
Lodi, CA 95240
9. No modification of this AGREEMENT shall be valid unless said modification is in writing
and signed by both parties.
10. 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 full
force and effect. In the event of any dispute between the parties arising 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.
11. This AGREEMENT represents the entire understanding of CITY and LODI IRON WORKS 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.
IN WITNESS HEREOF, the parties hereto have entered into this AGREEMENT effective as of the date set
forth hereinabove.
ATTEST:
CITY OF LODI, a municipal corporation
JENNIFER FERRAIOLO STEPHEN SCHWABAUER
City Clerk City Manager
APPROVED AS TO FORM: LODI IRON WORKS
JANICE D. MAGDICH, City Attorney
By: By:
ter., Na e: egv; n LL•
Title:
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EXHIBIT A
ESTIMATED PROJECT COST
REIMBURSEMENT AGREEMENT
UTILITY SERVICE - 820 S. Sacramento Street
LODI IRON WORKS
PROJECT DESCRIPTION:
One Three Phase 1500kva Padmount Transformer
Distribution pole installation
12 kV riser cable and cut out switch arrangement
Pulling of low voltage cable from transformer to expected distribution panel
COST ESTIMATE INCLUDES:
One (1) transformer
Installationoftransformer and low voltage conductors (cables and conductors) and accessories
Installation cf one (1) 12 kV pole
Purchase and installation of (3) 12 kV riser cables, cut out switches and terminations
Administrative costs (including engineering and technical support staff)
COST ESTIMATE DOES NOT INCLUDE:
Distribution panel
Design and installation of customer's new equipment
Installation of one (1) transformer pad
Installation of trench, underground conduit and restoration of property in or adjacent to
project
Per Electric Utility "Rules and Regulations" No. 15, a "True -Up" will be done when the
project is complete and the "actual" costs have been determined. An additional payment
or refund will be administered as applicable.
ESTIMATED PROJECT COST
Transformer $ 19,415.94
Material Total (Including Transformer) $ 27,601.46
Labor Total $ 14,601.60
Engineering Total $ 1,081.60
Total: $43,284.66
EXHIBIT B
SCHEDULE OF INSTALLMENT PAYMENTS
REIMBURSEMENT AGREEMENT
UTILITY SERVICE - 820 S. Sacramento Street
LODI IRON WORKS
Total Estimate:
Down Payment:
$43,284.66
$ (10,000.00)
Due No Later Than
Payment 1 01/20/17 $2,773.72
Payment 2 02/20/17 $2,773.72
Payment 3 03/20/17 $2,773.72
Payment 4 04/20/17 $2,773.72
Payment 5 05/20/17 $2,773.72
Payment 6 06/20/17 $2,773.72
Payment 7 07/20/17 $2,773.72
Payment 8 08/20/17 $2,773.72
Payment 9 09/20/17 $2,773.72
Payment 10 10/20/17 $2,773.72
Payment 11 11/20/17 $2,773.72
Payment 12 12/20/17 $2,773.74
Balance: $0.00
Actual repayment schedule will be based on final project cost as provided by CITY and will be provided
to LODI IRON WORKS following project completion prior to first installment payment due date.
RESOLUTION NO. 2017-07
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO EXECUTE A REIMBURSEMENT
AGREEMENT WITH LODI IRON WORKS FOR A UTILITY
SERVICE PROJECT
WHEREAS, as part of a utility service request from Lodi Iron Works, Lodi Electric Utility
(EU) purchased and installed various utility improvements for a new building at 820 South
Sacramento Street; and
WHEREAS, upon receipt of the estimated cost of the work from the City, Lodi Iron
Works paid $10,000 prior to the start of the work and then agreed to reimburse the balance of
$33,284.66 to the City by the end of the current year; and
WHEREAS, the work has been completed and the actual repayment amount will be
based on the total final cost as provided by EU to Lodi Iron Works; and
WHEREAS, actual final costs will be trued up in accordance with EU rules and
regulations; and
WHEREAS, all costs will be reimbursed by Lodi Iron Works.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Reimbursement Agreement with Lodi Iron Works for a
Utility Service Project in the amount of $33,284.66, for which the final amount will be
determined based on final actual project costs.
Dated: February 1, 2017
I hereby certify that Resolution No. 2017-07 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 1, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, and Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
2017-07
ity Clerk
M. FERRAIOLO