HomeMy WebLinkAboutAgenda Report - April 19, 2017 C-15TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
C45
AGENDA TITLE: Adopt Resolutions Authorizing the City Manager to Execute a Reimbursement
Agreement with Headwaters Kayak Shop and Approving Sole Source Procurement
of Dock Components for Lodi Lake from Lakeshore Construction/EZ Dock of
Glenhaven, CA and Appropriating Funds ($26,000)
MEETING DATE: April 19, 2017
PREPARED BY: Parks, Recreation and Cultural Services Director
RECOMMENDED ACTION: Adopt resolutions authorizing the City Manager to execute a
reimbursement agreement with Headwaters Kayak Shop and
approving sole source procurement of dock components for Lodi
Lake from Lakeshore Construction/EZ Dock of Glenhaven, CA and appropriating funds in the amount of
$26,000.
BACKGROUND INFORMATION: The City purchased a floating dock system from EZ Dock in 2009 to
serve the Lodi Lake boat house, and expanded the dock space in
2013 by purchasing an additional 600 square feet of dock
manufactured by EZ Dock with sole -source purchasing approval from the City Council.
In 2014, Headwaters Kayak Shop began operating a non -motorized boat rental business from the boat
house. Each year it has seen revenue growth. On March 15, the City Council approved a five-year
concession agreement for Headwaters, a contract that could last 11 years if all options are executed.
Headwaters owner, Dan Arbuckle, recently contacted PRCS to determine our interest in expanding the
size of the floating dock at the Lake. The current dock is approximately 825 square feet. Mr. Arbuckle
strongly believes he could rent more equipment with more dock space as it would allow him to carry more
inventory at the Lake and meet the great demand for his services. As a result, the Director and Mr.
Arbuckle have negotiated an agreement in which PRCS and Headwaters would split the cost of the
additional dock space, which would consist of six 50 -square -foot dock sections and four 66.7 -square -foot
low -profile dock sections that are easy to launch boats from. Total cost would be no more than $25,500,
depending on final shipping costs. The new dock sections would be City property.
Under the attached agreement, PRCS would pay the entire upfront cost of the new dock space, with
Headwaters paying its share over a three-year period in addition to its concession fee. Mr. Arbuckle
believes the additional space could increase his revenue by roughly 35 percent. If he is correct, not only
would Headwaters pay PRCS for its half of the dock space over three years, but the increase in gross
revenue would repay PRCS' half of the new dock at about the same time.
In addition to the potential financial benefits to both parties, the additional space would greatly assist the
City with the Fourth of July fireworks show. The fireworks are fired from EZ Dock sections that are
detached from the Boat House area and floated to the west side of the Lake. The fireworks operator has
asked in recent years for additional space for safety reasons, and the 20 -year-old wooden floating dock
in the middle of the Lake is listing and no longer suitable as a temporary gangway.
APPROVED:
City Manager
Adopt Resolutions Authorizing the City Manager to Execute a Reimbursement Agreement with Headwaters Kayak Shop and Approving
Sole Source Procurement of Dock Components for Lodi Lake from Lakeshore Construction/EZ Dock of Gfenhaven, CA and
Appropriating Funds ($26,000)
April 19, 2017
Page 2
The existing floating dock is made by EZ Dock, and staff proposes we stay with EZ Dock for the sake of
consistency and best fit with our existing components, and ease of assembling and disassembling and
flexibility with various configurations. Lakeshore Construction is the authorized EZ Dock dealer for the
Lodi area. Lodi Municipal Code 3.20.070 allows the dispensing of bids when the City Council determines
it is the best method of purchase.
FISCAL IMPACT: Headwaters will repay PRCS for its half of the expense over three years.
The increased number of rentals anticipated from this dock expansion will
result in increased concession revenue by PRCS over the term of the
agreement with Headwaters.
FUNDING AVAILABLE: Parks Capital (432))
Andrew Keys
Deputy City Manager/Internal Services Ma .ger
.i1 442i'
Jeff Ho
Parks,
JH:tI
cc: City Attorney
Attachments: Agreement
Purchase Quote
ecreatian and Cultural Services Director
C:\Users\pfarriSAppData\Local\Microsoft\Windows\Temporary Internet Files \Content.Outlook\3013VF3H\4-19-17 Headwaters Dock Agreement.doc 4/6/2017
REIMBURSEMENT AGREEMENT WITH HEADWATERS KAYAK SHOP
This Agreement is made and entered into on April 20, 2017, by and between the City of Lodi, a
municipal corporation ("CITY") and Daniel J. Arbuckle, doing business as Headwaters Kayak
Shop, a sole proprietorship ("HEADWATERS") (collectively the "Parties").
RECITALS
A. HEADWATERS requested CITY expand available dock space at the Boat House at Lodi
Lake Park to increase the rental of kayaks, paddleboards, and other non -motorized boating
equipment.
B. Increasing the available dock space benefits HEADWATERS as well as CITY, by
allowing HEADWATERS to have more non -motorized boating equipment available to rent, with
CITY receiving 15 percent of gross revenue under the current Lodi Lake Boat House
Concession Agreement.
C. Increasing dock space will be beneficial to CITY in providing the annual Fourth of July
fireworks show.
D. The Parties agree that EZ Dock materials, as more particularly described in Exhibit A,
attached hereto and incorporated herein, is the most efficient and cost effective means to
expand the existing Boat House dock. The cost to purchase the EZ Dock materials is
$24,559.17.
E. The Parties acknowledge and agree the Boat House dock and the expansion described
herein is and will remain City owned property and that this Agreement does not change or alter
City's ownership thereof.
F. The contract to purchase the EZ Dock materials will be subject to approval of the City
Council ("City Council Authorization").
NOW THEREFORE in consideration of the mutual covenants made herein, the Parties agree as
follows:
1. Recitals. The Parties agree that the "Recitals" set forth above are true and correct.
2 Headwaters Deposit. HEADWATERS will pay CITY the sum of $1,500 ("Deposit") within
10 days of the execution of this Agreement. The Deposit will be applied towards CITY's
purchase of the EZ Dock materials. CITY will place an order for the EZ Dock materials
within five (5) days of City Council Authorization.
3. Reimbursement. HEADWATERS will reimburse CITY the sum of $11,912.08 (one half
of the total cost of the EZ Dock materials), plus one-half of the cost of shipping charged
to CITY (cost to be determined at the time of shipment of the EZ Dock materials) without
interest accrual, in installments over a three (3) year period as set forth in Exhibit B,
attached hereto and made a part hereof.
1
4. Headwaters Assistance. HEADWATERS staff will assist CITY staff in assembly and
connection of the new EZ Dock materials to existing EZ Dock.
5. Headwaters Failure to Pay. Failure by HEADWATERS to pay, in full, any payment
required under this Agreement when due, following written notice by CITY to
HEADWATERS 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, with interest accruing thereon at the then legal rate, upon
written notice to HEADWATERS 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 by
HEADWATERS. 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. HEADWATERS 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.
d. In the event of a default by HEADWATERS under this Agreement, CITY has
the option to declare HEADWATER in breach of the Lodi Lake Boat House
Concession Agreement entered into by the Parties and effective on April 1,
2017, and exercise any and all remedies available to CITY under the Lodi
Lake Boat House Concession Agreement.
Notices. 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:
HEADWATERS:
///
Jeff Hood, PRCS Director
City of Lodi
230 West Elm Street
Lodi, CA 95240
Daniel J. Arbuckle
Headwaters Kayak Shop
847 No. Cluff, Avenue, Suite A-6
Lodi, CA 95240
2
///
With copy to:
Janice D. Magdich, City Attorney
City of Lodi
221 West Pine Street
Lodi, CA 95240
7 No Damages for Delay. CITY, its elected and appointed officials, officers, agents, or
employees shall not be responsible or liable to HEADWATERS for any damages of any
type or description which may result from any delays associated with Council
Authorization, ordering, acquisition, or installation of the EZ Dock materials whether
caused by the negligence of the CITY, its elected and appointed officials, officers,
agents, employees, or otherwise.
8. No Joint Venture. The provisions of this Agreement are not intended to create, nor shall
they in any way be interpreted, to create an employment relationship, a joint venture, a
partnership, or any other similar relationship between the Parties.
9. Applicable Law, Jurisdiction, Severability, and Attorney's Fees. 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. Waiver. No delay or omission in the exercise of the right or remedy by a non -defaulting
party on any default shall impair such right or remedy or be construed as a waiver. Any
waiver by either party or any default must be in writing and shall not be a waiver of any
other.
11. Interpretation. The terms of this Agreement shall be construed in accordance with the
meaning of the language used and shall not be construed for or against either party by
reason of the authorship of this Agreement or any other rule of construction which might
otherwise apply.
12. Integration and Modification This Agreement represents the understanding of CITY and
HEADWATERS 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
herein. This Agreement may not be modified or altered except in writing, signed by the
Parties.
3
13. Captions. The captions of the sections and subsections of this Agreement are for
convenience only and shall not be deemed to be relevant in resolving any question or
interpretation or intent hereunder.
14. Severability. The invalidity in whole or in part of any part of this Agreement shall not void
or affect the validity of any other provision of this Agreement.
15. Authority. The undersigned hereby represent and warrant that they are authorized by
the parties they purport to represent to execute this Agreement.
16. Indemnification, Defense and Hold Harmless. HEADWATERS shall indemnify, defend
and hold harmless CITY, its elected and appointed officials, officers, agents, employees,
and representatives for damage or claims for damage arising out of the acts of
HEADWATERS or its agents or employees arising under this Agreement.
HEADWATERS' obligation shall not extend to any award of punitive damages against
CITY resulting from the conduct of the CITY, its elected and appointed officials, officers,
agents, employees or representatives.
IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the
date first written above.
ATTEST CITY OF LODI, a municipal corporation
By:
JENNIFER M. FERRAIOLO
City Clerk
APPROVED AS TO FORM:
By:
JANICE D. MAGDICH
City Attorney ,t
4
By:
STEPHEN SCHWABAUER
City Manager
DANIEL J. ARBUCKLE, dba HEADWATERS
KAYAK SHOP, a sole proprietorship
DANIEL J. ARBUCKLE
1
LH3ITA1
LAKE CONSTRUCTION / EZDOCK
P.O. BOX 469
GLENHAVEN CALIF. 95443
(707) 998-4000
EZ-DOCK.COM
EZDOCKWEST@GMAIL.COM
Estimate # 2 3/27/17
SHIP TO: Jeff Hood
NAME: City of Lodi Parks and Rec
ADDRESS: 230 W. Elm St.
CITY: Lodi Ca. 95240
PHONE #: 209 333-6893
email:
jhood@lodi.gov
PART # 'DESCRIPTION
'PIECES JCOSTPER ITOTAL JT
158010
low profile docks 80 x 10'
4
$1,676.00
$6,704.00
206010
60" x 10' docks
6
$1,556.00
$9,336.00
301100
connectors
66
$58.00
$3,828.00
115757SS
connectors low profile to reg dock
4
$539.40
$2,157.60
9000010ss
install tool with adapter nut driver
1
$85.00
$85.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$o.00
$0.00,
$0.00'
$0.00
$0.00
$0.00,
SUBTOTAL MATERIAL TAXABLE $22,110.60
CITY/ COUNTY TAX RATE San Joaquin 7.750% $1,713.57
SHIPPING/HANDLING $735.00
LABOR TOTAL $0.00
DEPOSIT PAID $0.00
AMOUNT DUE $24,559.17
SPECIAL INSTRUCTIONS:
Jeff, the shipping quote may need to be changed depending on when you order. The trucking
companies will only hold quotes for 30 days and I had these docks in stock in Calif at the time of
The quote. I sold them to a water ski park so these will have to be shipped from the factory.
3/27/173:26 PM] Macintosh HD:Users:wayne:Desktop:lodi kayak city of Iodil#di1tmyak city of lodi #2.xlsx
Exhibit B
Headwaters Kayak Shop Schedule of Installment Payments
for EZ Dock Materials
(PRELIMINARY)
Total Cost of EZ Dock Materials: $24,559.17
Headwaters' Proportionate Share: $12,279.58
Headwaters' Payment Schedule
Due Date Amount Balance
At signing $1,500 $10,779.58
June 1, 2017 $769.97 $10,009.61
July 1, 2017 $769.97 $9,239.64
August 1, 2017 $769.97 $8,469.67
September 1, 2017 $769.97 $7,699.70
May 1, 2018 $769.97 $6,929.73
June 1, 2018 $769.97 $6,159.76
July 1, 2018 $769.97 $5,389.79
August 1, 2018 $769.97 $4,619.82
September 1, 2018 $769.97 $3,849.85
May 1, 2019 $769.97 $3,079.88
June 1, 2019 $769.97 $2,309.91
July 1, 2019 $769.97 $1,539.94
August 1, 2019 $769.97 $769.97
September 1, 2019 $769.97 $0
1. AA#
2. JV#
CITY OF LODI
APPROPRIATION ADJUSTMENT REQUEST
TO:
Internal Services Dept. - Budget Division
Jeff Hood. PRCS Director 5. DATE:
4/3/17
3 FROM:
4 DEPARTMENT/DIVISION: PRCS/Parks
A.
SOURCE OF
FINANCING
6. REQUEST ADJUSTMENT OF APPROPRIATION AS LISTED BELOW
FUND*
BUS. UNIT #
ACCOUNT #
ACCOUNT TITLE
AMOUNT
A.
SOURCE OF
FINANCING
432
32205
Parks Capital fund balance
$26,000
B.
USE OF
FINANCING
432
43299000
77020
Park Capital, small capital projects
$26,000
7. REQUEST IS MADE TO FUND THE FOLLOWING PROJECT NOT INCLUDED IN THE CURRENT BUDGET
Please provide a description of the project, the total cost of the project, as well as justification for the
requested adjustment. If you need more space, use an additional sheet and attach to this form.
Purchase of additional EZ Dock floating dock for Lodi Lake Park to enhance boat house revenue.
If Council has authorized the appropriation adjustment, complete the following:
Meeting Date: 4/19/17
Department Head Signature:
Res No:
Attach copy of resolution to this form.
8. APPROVAL SIGNATURES
Deputy City Manager/Internal Services Manager Date
Submit completed form to the Budget Division with any required documentation
Final approval will be provided in electronic copy format
RESOLUTION NO. 2017-68
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE A
REIMBURSEMENT AGREEMENT WITH
HEADWATERS KAYAK SHOP
WHEREAS, the City Council approved a five-year concession agreement with
Headwaters Kayak Shop on March 15, 2017; and
WHEREAS, the Parks, Recreation and Cultural Services Department would like to enter
into a Reimbursement Agreement with Headwaters Kayak Shop for the purchase of additional
dock sections from Lakeshore Construction/EZ Dock, of Glenhaven, in the amount of $26,000;
and
WHEREAS, as outlined in the Reimbursement Agreement, Headwaters Kayak Shop will
reimburse their share of the dock space, in the amount of $12,279.58, over a three-year period
beginning June 1, 2017.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute a Reimbursement Agreement with Headwaters Kayak
Shop for additional dock sections.
Dated: April 19, 2017
I hereby certify that Resolution No. 2017-68 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 19, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and
Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NIFER , FERRAIOLO
City Clerk
2017-68
RESOLUTION NO. 2017-69
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE SOLE -SOURCE PROCUREMENT OF
DOCK COMPONENTS FOR LODI LAKE FROM LAKESHORE
CONSTRUCTION/EZ DOCK, OF GLENHAVEN, AND FURTHER
APPROPRIATING FUNDS
WHEREAS, the City purchased a floating dock system from EZ Dock in 2009 to serve
the Lodi Lake boat house, and expanded the dock space in 2013 by purchasing an additional
600 square feet of dock; and
WHEREAS, the Parks, Recreation and Cultural Services Department, in partnership
with Headwaters Kayak Shop, would like to purchase six 50 -square -foot dock sections and four
66.7 -square -foot -low -profile dock sections; and
WHEREAS, the Parks, Recreation and Cultural Services Department entered into a
Reimbursement Agreement with Headwaters Kayak Shop for the purchase of additional dock
sections from Lakeshore Construction/EZ Dock, of Glenhaven, in the amount of $26,000; and
WHEREAS, as outlined in the Reimbursement Agreement, Headwaters Kayak Shop will
reimburse their share of the dock space, in the amount of $12,279.58, over a three-year period
beginning June 1, 2017.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to procure by sole source dock components for Lodi Lake from
Lakeshore Construction/EZ Dock, of Glenhaven, California, in an amount not to exceed
$26,000; and
BE IT FURTHER resolved that funds in the amount of $26,000 be appropriated for this
project.
Dated: April 19, 2017
I hereby certify that Resolution No. 2017-69 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 19, 2017, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and
Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
2017-69
NIFER FERRAIOLO
qty Clerk