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HomeMy WebLinkAboutAgenda Report - June 6, 2018 C-07TM AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION 0-7 AGENDA TITLE: Adopt Resolution Awarding Contract for Directional Drilling, Excavation, and Conduit Installation Services to Westech Industries, Inc. of Galt ($700,000) MEETING DATE: June 6, 2018 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution awarding contract for directional drilling, excavation, and conduit installation services to Westech Industries, Inc. of Galt, in an amount not -to -exceed $700,000 annually. BACKGROUND INFORMATION: The Lodi Electric Utility (LEU) maintains approximately 131 miles of overhead electric lines and 122 miles of underground cable to provide service to nearly 26,000 customers. As the underground electric system ages, it becomes necessary to repair and upgrade cables, conduits, and appurtenances to continue delivering safe, reliable electric service. LEU endeavors to utilize the least intrusive and most economically feasible method in replacing the underground infrastructure. This approach requires the use of directional drilling to minimize disruption to the community and the replacement of hardscaped surfaces, including roads, sidewalks, and gutters. Council approved the specifications and authorized solicitation for bids for directional drilling, excavation, and conduit installation services at its regular meeting on February 21, 2018. The bid opening commenced on April 4, 2018 with a single bid being received. Work is performed on an as -needed basis for routine, planned, and emergency projects. All work is directly tied to LEU's Capital Improvement Plan and supports the LEU Strategic Plan goals for system performance and reliability. Westech Industries, Inc. is currently contracted with the City for these services and has performed satisfactorily since May 2014, when the expiring contract was executed. Therefore, staff recommends Westech be awarded this contract. The initial term of the contract will commence July 1, 2018 and conclude June 30, 2021. Upon satisfactory performance, contract extensions can be exercised for two additional one-year terms, to conclude no later than June 30, 2023. Annual fiscal year expenditures are not -to -exceed $700,000, with a total contract value not -to -exceed $3.5 million over the five fiscal year period, should all extensions be executed. FISCAL IMPACT: Not to exceed $700,000 annually or $3.5 million over five fiscal years. This project does not impact the General Fund as all costs are incurred by the Electric Utility. APPROVED: City Manager Adopt Resolution Awarding Contract for Directional Drilling, Excavation, and Conduit Installation Services to Westech Industries, Inc. of Galt ($700,000) June 6, 2018 Page 2 of 2 FUNDING AVAILABLE: Included in FY2018/19 Budget Account No. 50199000. Future fiscal years will be in proposed capital account 50199000 to be approved annually by Council. Andrew Keys Deputy City Ma►ager/Internal Services Director Elizabeth A. Kirkley -Electric Utility Director PREPARED BY: Charles J. Berry, Electric Utility Superintendent EAK/CB/nb SECTION 4 CONTRACT DIRECTIONAL DRILLING, EXCAVATION AND CONDUIT INSTALLATION SERVICES CITY OF LODI, CALIFORNIA THIS CONTRACT made by and between the CITY OF LODI, State of Califomia, herein referred to as the "City," and WESTECH 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 July 1992 Edition, 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 11 - 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. Drilling_Sec4 4.1 05/22/18 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 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 Toss 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 to directional drill, excavate, install conduit, appurtenances, and other field directed work on an as -need basis as directed by City. Drilling_Sec4 4.2 05/22/18 CONTRACT ITEMS ITEM NO. DESCRIPTION UNIT PRICE ($) Trench 1 Mainline Trench (Non -Joint Use) LF 49.50 2 Secondary Trench (Non -Joint Trench) LF 59.25 3 Compact/Backfill Mainline Trench LF 16.20 4 Compact/Backfill Secondary Trench LF 16.20 5 Remove/Replace Concrete SF 35.50 6 Remove/Replace Asphalt SF 30.50 7 Remove/Replace landscaping (Sod) SF 15.00 8 Trench Plate Install/Remove (Including Prep) EA 0 Conduit 9 Assemble and install 6" Conduit LF 2.50 10 Assemble and install 4" Conduit LF 2.04 11 Assemble and install 3" Conduit LF 2.00 12 Assemble and install 2" Conduit LF 2.00 13 Assemble and install 1" Conduit LF .10 14 Assemble and install 3/4" Conduit LF .05 15 Install Each Additional Conduit LF 1.50 Bore 16 Bore and Install 6" Conduit LF 65.00 17 Bore and Install 4" Conduit LF 50.00 18 Bore and Install 3" Conduit LF 48.00 19 Bore and Install 2" Conduit LF 48.00 20 Bore and Install 1" Conduit LF 36.00 21 Bore and Install 3/4" Conduit LF 5.00 22 Send/Receive Pit (Per Job) EA 0 23 Install Each Additional Conduit LF 14.20 24 Mobilization/Demobilization EA 0 Misc. 25 Disposal of Excess Material CY 0 26 EU Field Directed Work As Needed 27 Construction Notification (Per Project) EA 0 28 Hourly/Stand-by Rate for Crew HR 300.00 Total Sum Unit Price of all Line Items (excludes item 26) $798.54 Drilling_Sec4 4.3 05/22/18 Annual price adjustments may be negotiated with the Electric Utility Director. However, if approved, increases will not to exceed CPI -San Francisco Area, July — June for the preceding year, as identified by the United States Department of Labor, Bureau of Labor Statistics and total contract cost will not exceed $700,000 per fiscal year. 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 10 calendar days after the City Manager has executed the contract and to diligently prosecute to completion within a timely fashion as determined acceptable by the Electric Utility Director. ARTICLE IX - State of California Senate Bill 854 requires the following: • No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]. • No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. • This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Drilling_Sec4 4.4 05/22/18 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 6-04.03 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: CITY OF LODI, a municipal corporation By: STEPHEN SCHWABAUER City Manager By: Date: Attest: Drilling_Sec4 Title JENNIFER M. FERRAIOLO City Clerk (CORPORATE SEAL) Approved As To Form: JANICE D. MAGDICH City Attorney 4.5 04/25/18 RESOLUTION NO. 2018-96 A RESOLUTION OF THE LODI CITY COUNCIL AWARDING THE CONTRACT FOR DIRECTIONAL DRILLING, EXCAVATION, AND CONDUIT INSTALLATION TO WESTECH INDUSTRIES, INC., OF GALT; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE EXTENSIONS WHEREAS, in answer to notice duly published in accordance with law and the order of this City Council, sealed bids were received and publicly opened on April 4, 2018, at 11:00 a.m., for directional drilling, excavation, and conduit installation services for the Electric Utility, described in the specifications thereof, approved by the City Council on February 21, 2018; and WHEREAS, Westech Industries, Inc., the sole bidder, met the City's specifications, and the proposed contract line -items sum to $798.54; and WHEREAS, work is performed on an as -needed basis for routine, planned, and emergency projects, with all work directly tied to Lodi Electric Utility's Capital Improvement Plan and supporting the Lodi Electric Utility Strategic Plan goals for system performance and reliability; and WHEREAS, Westech Industries, Inc., is currently contracted with the City for said services and has performed satisfactorily since May 2014, when the expiring contract was executed; and WHEREAS, staff recommends City Council award the contract for directional drilling, excavation, and conduit installation services to Westech Industries, Inc., of Galt, in an amount not to exceed $700,000 annually for three years, with the option for two one-year extensions. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award the three-year contract for directional drilling, excavation, and conduit installation services for the Electric Utility to Westech Industries, Inc., of Galt, California, in an amount not to exceed $700,000 annually; and BE IT FUTHER RESOLVED that the City Manager is hereby authorized to execute the contract and up to two one-year extensions, if in the best interest of the City of Lodi, in an amount not to exceed $700,000 annually, with a total contract value not to exceed $3.5 million over the five-year term, should both optional extensions be executed. Dated: June 6, 2018 I hereby certify that Resolution No. 2018-96 was passed and adopted by the City Council of the City of Lodi in a regular meeting held on June 6, 2018 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, and Mounce NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mayor Nakanishi ABSTAIN: COUNCIL MEMBERS — None 'V1._,b NNIFER . FERRAIOLO City Clerk 2018-96