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HomeMy WebLinkAboutResolutions - No. 2017-46RESOLUTION NO. 2017-46 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT AMENDMENT NO. 1 WITH WESTECH INDUSTRIES, INC., OF GALT WHEREAS, the Electric Utility (EU) maintains approximately 131 miles of overhead electric lines and 122 miles of underground cable to provide service to over 26,000 customers; and WHEREAS, as the underground system ages, repairs and replacements are necessary to mitigate outages and improve electric service reliability for customers; and WHEREAS, EU endeavors to utilize the least intrusive and most economically feasible approach to install conduit for replacement and upgrade of failed or failing underground cables; and WHEREAS, this requires the use of directional drilling to minimize disturbances to the community and replacement of sidewalk, gutter or road surfaces while expediting the conduit installation process; and WHEREAS, on February 5, 2014, Council awarded the lowest responsive bid to Westech Industries, Inc., of Galt, for directional drilling and authorized the City Manager to execute a contract which allowed three one-year extensions; two were authorized by the Council on February 18, 2015 and July 20, 2016; and WHEREAS, all authorized funds have been expended ($1 million to date) and the contract is set to expire on August 25, 2017; and WHEREAS, during the current fiscal year, Westech has completed many projects to support the EU capital improvement plan. These projects include installing underground infrastructure; installing, replacing, and repairing damaged conduits, pull -boxes, and other related appurtenances; and emergency substructure repairs to restore electric service; and WHEREAS, Westech continues to perform satisfactorily; therefore, staff is recommending an amendment to add $300,000 in additional funding for the remaining of Fiscal Year 2016/17 while concurrently executing the third contract extension in an amount not to exceed $700,000 for Fiscal Year 2017/18, which concludes June 30, 2018; and WHEREAS, the additional funding will be used to address emergency -unplanned work, continuing to replace 1960's vintage underground cable that is far in excess of its planned 30 to 40 year useful life, and other related projects as determined by failure or predicative analysis; and WHEREAS, funding is available in FY 2016/17 Capital Budget Account No. 50199000 and included in proposed FY 2017/18 Capital Budget Account No. 50199000. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby authorizes the City Manager to execute Contract Amendment No. 1 with Westech Industries, Inc., of Galt, California, for directional drilling, excavation, and conduit installation in an amount not to exceed $1,000,000 and extend the term of the Agreement to and including June 30, 2018. Dated: April 5, 2017 hereby certify that Resolution No. 2017-46 was passed and adopted by the City Council of the City of Lodi in a regular meeting held April 5, 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 . ENNIFER II. FERRAIOLO C ty Clerk 2017-46