HomeMy WebLinkAboutAgenda Report - May 19, 2021 C-066 AGENDA ITEM co,
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Change Order No. 1 with
Westech Industries, Inc. of Escalon for Directional Drilling, Excavation and Conduit
Installation Services ($2,000,000)
MEETING DATE: May 19, 2021
PREPARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Change Order
No. 1 with Westech Industries, Inc. of Escalon for Directional Drilling,
Excavation and Conduit Installation Services in an amount not -to -
exceed $2,000,000.
BACKGROUND INFORMATION: On June 6, 2018 by Resolution 2018-96, the City Council awarded a
multi-year contract for directional drilling, excavation and conduit
installation services to Westech Industries, Inc. in the amount of
$700,000 annually.
Lodi Electric Utility (LEU) currently utilizes the services of Westech Industries, Inc. for directional drilling
and conduit installation to build new underground electric infrastructure for various new developments
throughout the City. LEU also utilizes these services in order to maintain existing infrastructure with
activities including trenching, asphalt grinding and potholing during troubleshooting efforts associated
with electrical outages. Replacement of failing distribution cable which was installed as direct buried
years ago will also require the services of Westech so that new cable can be installed in conduit per
modern industry standards.
Resolution 2018-96 provided a three-year authorization from July 1, 2018 to June 30, 2021 in addition to
delegating authority to the City Manager to exercise two additional one-year extensions for a total
approved contract value not -to -exceed $3,500,000 over the five-year term ($700,000 annually), should
both optional extensions be executed.
Lodi Electric is requesting to exercise the originally anticipated two-year extension with Westech in
addition to increasing the estimated annual expenditures from $700,000 annually to approximately
$1 million annually based on project timing and need. Of the total $2 million requested for the two-year
extension, while it may be necessary to spend more in one fiscal year than another, total expenditures for
the requested extension will not exceed $2 million. The additional funds being added with this change
order will support the expansion of underground electric circuits to the southwest part of the City where
rapid growth is projected in the near future. As part of its capital improvement planning efforts, LEU will
be expanding the underground circuit capacity from the Henning Substation and extending an existing
circuit from the Industrial Substation to meet the growing electric demands in this part of the City.
Therefore, staff recommends authorizing the City Manager to execute Change Order No. 1 to extend the
existing contract with Westech to June 30, 2023 for an additional $2 million for a total contract price of
$4.1 million.
APPROVED: V1
fephen 8bhwaouer, City Manager
Adopt Resolution Authorizing City Manager to Execute Change order No. 1 with Westech Industries, Ire. of Escalon for Directional Drilling, Excavation and Conduit
Installation Services ($2,000,000)
May 19, 2021
Page 2
FISCAL IMPACT: Total not -to -exceed cost for the proposed two-year extension is $2,000,000.
FUNDING AVAILABLE: Funds are budgeted annually in multiple Capital Improvement Projects
(Funds 501 and 505) as part of the annual budget process.
Andrew Keys
Andrew Keys mm
Deputy City Manager/Internal Services Director
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Jeff Berkheimer
Electric Utility Director
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Email: akeys@lodi.gov
RESOLUTION NO. 2021-134
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE CHANGE ORDER NO. 1 TO THE CONTRACT
WITH WESTECH INDUSTRIES, INC., OF ESCALON, FOR DIRECTIONAL
DRILLING, EXCAVATION, AND CONDUIT INSTALLATION SERVICES
WHEREAS, on June 6, 2018, by Resolution No. 2018-96, the City Council awarded a
multi-year contract for directional drilling, excavation, and conduit installation services to
Westech Industries, Inc., in the amount of $700,000 annually; and
WHEREAS, Lodi Electric Utility (LEU) currently utilizes the services of Westech for
directional drilling and conduit installation to build new underground electric infrastructure for
various new developments throughout the City; and
WHEREAS, LEU also utilizes these services in order to maintain existing infrastructure
with activities including trenching, asphalt grinding, and potholing during troubleshooting efforts
associated with electrical outages; and
WHEREAS, replacement of failing distribution cable which was installed as direct buried
years ago will also require the services of Westech so that new cable can be installed in conduit
per modern industry standards; and
WHEREAS, Resolution No. 2018-96 provided a three-year authorization from
July 1, 2018 to June 30, 2021, in addition to delegating authority to the City Manager to exercise
two additional one-year extensions, for a total approved contract value not to exceed
$3,500,000 over the five-year term ($700,000 annually), should both optional extensions be
executed; and
WHEREAS, LEU is requesting to exercise the originally anticipated two-year extension
with Westech, in addition to increasing the estimated annual expenditures from $700,000
annually to approximately $1 million annually, based on project timing and need; and
WHEREAS, while it may be necessary to spend more in one fiscal year than another,
total expenditures for the requested extension will not exceed $2 million; and
WHEREAS, the additional funds being added with this change order will support the
expansion of underground electric circuits to the southwest part of the City, where rapid growth
is projected in the near future.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute Change Order No. 1 to the contract with Westech
Industries, Inc., of Escalon, California, for directional drilling, excavation and conduit installation
services in an amount not to exceed $2,000,000 through June 30, 2023, for a total contract
price of $4.1 million; and
BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol
Manual (Res. No. 2019-223), the City Attorney is hereby authorized to make minor revisions to
the above -referenced document(s) that do not alter the compensation or term, and to make
clerical corrections as necessary.
Dated: May 19, 2021
I hereby certify that Resolution No. 2021-134 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held May 19, 2021 by the following votes:
AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JENNIF CUSMIR
City Cle k
2021-134