Water and Power Conservation... a way of life

ANTONIO Mayrw R. VILLARAIGOSA Commission THOMAS S. SAYLES, Preside,,' ERIC HOLOMAN, i!ice President RlCHARD F. MOSS CHRISTINA E. NOONAN JONATHAN PARFREY RONALD O. NICHOLS General 'A-fanagel BARBARA E. MOSCHOS, Secretary October 17,2012 The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California 90012 Honorable Members: Subject: Amendment No.1 to Contract No. 956 with Northwest Excavating, Inc. Pursuant to Charter Section 373, enclosed for approval by your Honorable Body is Resolution No. 19501, adopted by the Board of Water and Power Commissioners (Board) on October 16,2012, approved as to form and legality by the City Attorney, which authorizes. execution of Contract 956 (Amendment No.1) for Construction of Electrical Underground Conduits and Substructures with Northwest Excavating, Inc. The amendment will extend the contract term by 12 months and increase the contract limit by $1,500,000. As directed by the Board, transmitted to you are supporting documents. If there are any questions regarding this item, please contact Ms. Winifred Yancy, Director of Local Government and Community Relations, at (213) 367-0025, Sincerely, Barbara E. Moschos Board Secretary "'-'>'.:'': BEM:oja Enclosures: LADWP Resolution Board Letter Amendment No.1 to Contract No. 956 CAD Report Water and Power Conservation... a way of life J 11 North Hope Street, Los Angeles, California 90012~2607 Mailing address: Box 51111, Los Angeles 90051-5700 Telephone: (2J 3) 367-4211 Cable address: DEWAPOLA rf11 R"".fCI!lI:'a and made IlOO1 ""l"loo 'Iestc. '\:19'

c/enc: Mayor Antonio Villaraigosa Councilrnember Jan C. Perry, Chair, Energy and the Environment Committee Gerry F. Miller, Chief Legislative Analyst Miguel A. Santana, City Administrative Officer Rafael Prieto, Legislative Analyst, CLA William R. Koenig, Chief Administrative Analyst Winifred Yaney

Resolution No. 1_9_5_\_1 _ WHEREAS, Northwest Excavating, Inc..(Northwest), a local woman-owned business enterprise, was awarded Contract No..956 to provide services for construction of electrical underground conduits and substructures; and WHEREAS, the Los Angeles Department of Water and Power's (LADWP) Power System recommends approval of Amendment No. 1 to Contract No. 956 with Northwest to extend the contract period by 12 months to a revised term of 48 months, from December 10, 2012, to December 10, 2013, and increase the contract limit amount by $1,500,000 from $9,026,223 to $10,526,223; and WHEREAS, this contract is totaling 48 months with Northwest. This contract exceeds the time period set by ordinance. Therefore, City Council approval is required in accordance with City Charter Section 373; and WHEREAS, pursuant to City Charter Section 1022, the Board finds that it is more feasible to have the work be performed by outside services to meet the compressed ",,;.;., schedul'e. ~0~ \~:~~;~~:., NOW, THEREFORE, BE IT RESOLVED that Amendment No.1 to Contract 956 is approved as to form and legal.ity by the City Attorney and on file with the Secretary of the Board. BE IT FURTHER RESOLVED that the President Of Vice President of the Board, or the General Manager, or such person as he shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board are hereby authorized, empowered, and directed to execute said amendment for and on behalf of LADWP, upon approval by the City Council pursuant to City Charter 373. BE IT FURTHER RESOLVED that the Chief Accounting Employee of LADWP, upon proper certification, is hereby authorized and directed to draw demands on the Power Revenue Fund in accordance with the terms of this contract. I HEREBY CERTIFY that the foregoing is a full, true and correct copy of the resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held (lct 1 62012 APPROVED AS TO FOAM h.nd LEGAI.I CARMEN A. TRUi/l,NICH, CITY ArT ley Secretary

LOS ANGELES DEPARTMENT OF WATER AND POWER (LADWP) BOARD APPROVAL LETTER.~- BOARD OF WATER AND POWER COMMISSIO_~ERS ~!=: Se;e~ber 26~2012 ~~ I L~~~ d-~-- ARAMJENYAMiN RONALD O. NICHOLS Senior Assistant General Manager ~ Power System General Manager SUBJECT: Amendment No.1 to Contract No. 956 Services for Construction of Electrical Underground Conduits and Substructures Recommended Award To: Northwest Excavating, Inc. Northrld e, CA FOR COMMISSION OFFICE USE: RESOLUTION NO. _ CITY COUNCIL APPROVAL REQUIRED: Yes [SJ No if YES, BY WHICH CITY CHARTER SECTION: 373 D New Contract D Replacement Contract lsi Amendment to Existing Contract PURPOSE This Amendment assures continuous services for construction of electrical underground conduits and substructures. This Amendment will support various Metropolitan Transit Authority (MTA) Projects. The attached Resolution recommends approval of Amendment No.1 to Contract No. 956 with Northwest Excavating, Inc. (Northwest), a local woman-owned business enterprise, to provide services for construction of electrical underground conduits and substructures. This amendment will extend the contract period by 12 months to a revised term of 48 months, from December 10,2012, to December 10, 2013, and increase the contract limit amount by $1,500,000.00 from $9,026,223.00 to $10,526,223.00. Approval by the City Council is required for Amendment No.1 in accordance with City Charter Section 373.

Board of Water and Power Commissioners Page 2 September 26, 2012 COST AND DURATION Current Maximum Expend itu re Requested Amendment No.1 Amended Maximum Expenditure Original Period (36 rnos.) Amendment No.1 (12 mos.) Contract Total $9,026,223.00 $9,026,223.00 $1,500,000.00 $9,260,223.00 $10,526,223.00 Currently, LADWP's contract expires on December 10, 2012. LADWP is requesting to extend the contract up to 12 months to December 10, 2013, and increase the contract limit amount by $1,500,000.00 from $9,026,223,00 to $10,526,223,00, BACKGROUND On December 1, 2009, the Board of Water and Power Commissioners awarded Contract No, 956, for a term of three years, for a total amount not to exceed $9,026,223.00, with an expiration date of December 10, 2012. Northwest's quotation was approximately nine percent lower than LADWP's estimated amount The second lowest bidder was approximately 12 percent higher than Northwest This contract was suspended on November 1, 2011, because of lack of funds. This contract is used on as-needed basis. It was reactivated on April 2,2012, to support the various MTA projects. As these projects will continue past the expiration date of Contract No, 956, LADWP needs this amendment to support the MTA projects, Due to the deadlines set by MTA, there is no time to process and advertise a new bid specification for this type of service. MTA is reimbursing LADWP for these projects. Analysis of Contract No. 956 usage and expenditures indicates $5,026,766,11 of the contract maximum expenditure of $9,026,223.00 has been committed. However, it is expected that all the funds will be exhausted by December 10,2012, Northwest has agreed to maintain pricing through the extended contract period. The services to be furnished under these specifications will allow LADWP to utilize an outside contractor to install underground conduits, concrete substructures, maintenance holes and transformer vaults for electrical transmission and distribution cables and other underground electrical equipment such as transformers and switches. Work shall consist of constructing and repairing underground duct lines, maintenance holes, vaults, concrete curbs, gutters, streets and sidewalks by the use of tools and machines such

Board of Water and Power Commissioners Page 3 September 26,2012 as: pavement breaking machines, trenching machines, large excavating machines, cranes, dump trucks, end dumps, electronic traffic control devices and message boards, compressors and shoring. The Contractor will be required to have knowledge of and ability to fojlow City of Los Angeles Public Works and Bureau of Engineering specifications and rules as well as LADWP specification and safety rules. LADWP will furnish most materials to Northwest, including conduit, fittings, spacers, cement, epoxy, precast concrete structures, concrete mixes, and aggregates as required in Specification No. 956. LADWP will coordinate and schedule all necessary clearances for connections or disconnections of energized lines and cables required in accordance with operating procedures. Northwest will provide all other materials that may be required to complete the work. Northwest will also be responsible for utilities, labor, tools, equipment, mobile communication units, transport vehicles, metal plates for trucks, fencing, field offices, and any extra storage space needed. Northwest shall ensure that the construction minimally impacts the public and shall notify the appropriate departments and agencies of street closures in accordance with Subsections 7-10.3 of the Standard Specifications for Public Works Construction. Per City Charter Section 373, Los Angeles City Council approval is required. A City Administrative Officer report dated September 27, 2012 is attached. MfWfOBE SUBCONTRACTING PARTICIPATION Northwest has subcontracted approximately 15 percent to Minority Business Enterprises (MBE), Women Business Enterprise (WBE), and Other Business Enterprise (OBE) during the contractual period. The contract requires a Mandatory Subcontracting Minimum (MSM) of 18 percent, and Northwest plans to comply with the MSM requirement. Northwest plans to increase subcontracting participation to a minimum of approximately 18 percent by the end of the contractual period; however, they project a maximum subcontracting participation of approximately 24 percent. Northwest will maintain the MSM level during the additional twelve months.

Board of Water and Power Commissioners Page 4 September 26,2012 MIWIOBE SUBCONTRACTING MBE Actual Original Achieved Description of Original Contract Expenditures Projected Percentage Name Subcontracting Work Total To Date Percentage To Date Able Crane Provide 40 ton and $ 376,539.00 $ 69,195.00 5.2% 1.2% Services 75 ton cranes LAC. Motor Provide to-wheeler $1,365,000.00 $719,592.00 19.0% 12.8% Enterprises Inc. semi end dumps and G & F Concrete truck drivers Provide Saw Cutting $ 0.00 s 42,669.00 0.0% 0.8% Cutting Total: $1,741,539.00 $831,456.00 24.20% 14.8% WBE Name Description of Original Contract Actual Original Achieved Subcontracting Work Total Expenditures Projected Percentage To Date Percentaoe To Date BMS Provide traffic control $61,194.00 $15,300.00 0.85% 0.3% Communications drawings All-State Utility Building Materials $ 0.00 $16,028.00 0.0% 0.3% Supply, Inc. Total: $61,194.00 $31,328.00 0.85% 0.6% Northwest, located in Northridge, California, has provided services in a timely manner and has performed satisfactorily during the contract period. Contract No. 956 is Northwest's first formal contract with LADWP. CONTRACT AND VENDOR HISTORY --,- -- ~'" Contract History -_...-.. Contract/ Ending Contract PO No. Contractor Term of Contract Start Date Date Amount 956 Northwest 3 Years 12/11/2009 12/10/2012 $9,026,223.00. ~..~".c, ~ - ~ --. - Vendor Hjsto~ --... -. jrcrm Contract! Contract Ending Contract PO No. Description ofcontract Start Date Date Amount 956 Northwest 3 Years 12/11/2009 12/10/2012 $9,026,223.00

Board of Water and Power Commissioners Page 5 September 26, 2012 ENVIRONMENTAL DETERMINA lion In accordance with the California Environmental Quality Act (CEQA), it has been determined that this action is exempt from further requirements under Article 19, Section 15301, Class 1(b), of the CEQA Guidelines which applies to the maintenance and operation of existing publicly owned utility facilities used to provide electric power, natural gas, sewerage, or other public utility services, which involve negligible or no expansion of use beyond that existing at the time of the lead agency's determination. RECOMMENDATION It is recommended that your Honorable Board adopt the attached Resolution recommending the Los Angeles City Council's approval of Amendment No. 1 to Contract No. 956. BRA:kkc Attachments e-c/att: Ronald O. Nichols Richard M. Brown Aram Benyamin James B. McDaniel Phflip Leiber Gary Wong Gwendolyn W. Williams Daryl A. Buckley Bassam R. Abou-Chakra r d V\j

ANTONIO Mayor R. VILLARAIGOSA Commission THOMAS S. SAYLES,Prc,;denl ERIC HOLOMAN, nee President RICHARD F. MOSS CHRISTINA E. NOONAN JONATHAN PARFREY RONALD O. NICHOLS General Manager BARBARA E. MOSCHOS, Secretary June 20, 2012 Mr. Robert C. Groff Senior Vice President Northwest Excavating, Inc. 18201 Napa Street Northridge, CA 91325 Subject: Amendment No.1 to Contract No. 956 - Services for Construction of Electrical Underground Conduits and Substructures Dear Mr. Groff: This is your authority, after approval by the Board of Water and Power Commissioners, to make the following change in Contract No. 956 (Contract) for Services for Construction of Electrical Underground Conduits and Substructures asindicated below: " Extend the Contract expiration date from December 10,2012 to December 10, 20'13. e As a result of the aforementioned Change, the original Contract expenditure of $9,026,223 will increase to $10,526,223. All prices, terms, and conditions of the Contract shall remain unchanged. This amendment issued pursuant to the provisions of the Contract. is Print Name of Signer Pr--.-s,'cl e d Title of Signer NORTHWEST, EXCAVATING, INC, Ronald O. Nichols General Manager Department of Water and Power APPROVEO AS TO form ~N~ l@@ai,if CARMENA l~u\t\n\em, Gli"Y ATfClRN~V Company Name YOUR AUTHORITY TO EXECUTE THIS AMENDMENT WILL BE IN THE FORM OF A BILATERALLY SIGNED COpy OF THIS DOCUMENT. Water and Power Conservation". way 0 life 111 North Hope Street, Los Angeles, California 90012-2607 Mailing address: Box 51111, Los Angeles 90051"5700 Telephone: (213) 367-4211 Cable address: DEWAPOLA. 7~ RBGj'dcl:-Aa aad I"O--Jdefmm ~ed \'I<'tsle "Cl(;:>,

OCT 03 2012 TRANSMITTAL TO Ronald o. Nichols, General Manager Department of Water and Power DATE COUNCIL FILE NO. OCT 02 201.2 0150-09832 -0000 FROM The Mayor COUNCIL DISTRICT PROPOSED RESOLUTION AUTHORIZiNG FIRST AMENDMENT TO CONTRACT NO. 956 BETWEEN THE los ANGELES DEPARTMENT OF WATER AND POWER AND NORTHWEST EXCAVATING, INC. Approved and transmitted for furt.he.r procetsin. in.ciud.fn g Council consideration. See the C;i'IY'l ni'77" Offi Z~tache~, l;t~" (Matt Karat'z.) MAYO MAS.RPR:10130027t CAO 649-d ~.~"","..,~~c.~.~_~.~.,~ ~_c_, ~.. _~. o ~.._c,, _

REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: September 27, 2012 CAO File No.: 0150-09832-0000 Council File No.: Council District: To: The Mayor From: Miguel A. Santana, City Administrative OffjCe~ C;, ~ Reference: Transmittal from the Department of Water and lower dated July 25, 2012; referred by the Mayor for report on August 13, 2012 Subject: PROPOSED RESOLUTION AUTHORIZING FIRST AMENDMENT TO CONTRACT NO. 956 BETWEEN THE LOS ANGELES DEPARTMENT OF WATER AND POWER AND NORTHWEST EXCAVATING, INC. SUMMARY The Department of Water and Power (DWP; Department) requests approval of a proposed resolution authorizing the execution of the First Amendment to Contract No. 956 (Agreement) with Northwest Excavating, Inc. (Northwest), a minority-owned business enterprise located in. Northridge, California. If approved, the proposed Agreement will 1) add one-year to the current three year agreement, resulting in a four-year term, and 2) increase the authorized expenditure authority by $1,500,000 for an amended total of $10,526,223. Pursuant to Charter Section 373,..for long term contracts, City Council approval is required because the cumulative length of the agreement exceeds three years. The City Attorney has approved the proposed resolution as to form and legality. On December 1, 2009, the DWP Board of Commissioners (Board) awarded the competitively bid orig inal Ag reement with a term of th ree years, expiring December 11, 2012, and a not-to-exceed expenditure authority of $9,026,223. Northwest was contracted to provide underground excavation services on an as-needed basis. Due to lack of available funding in the Department's fiscal year 2011-12 budget, the Agreement was suspended on November 1, 2011, The Northwest Agreement was reactivated in April 2012 in support of four Los Angeles Metropolitan Transit Agency (MTA) projects involving the construction of new subway lines and the 405-Freeway expansion that require relocation of either overhead distribution wires or underground distribution cables. DWP states that its current workload is more than can be performed by existing personnel. Therefore, additional contract personnel from Northwest are required at this time for continued support of MT A projects. MTA is providing DWP with cost reimbursement for these MTA projects. The Department states that prior expenditures for Northwest services, excluding the MTA projects, total approximately $4.6 million. Costs associated with the current MTA projects total approximately $4.5 million and an additional two MTA projects are scheduled in 2013 that will

CAO File No. 0150-09832-0000 PAGE 2 cost approximately $700,000. The total expenditure to Northwest for DWP and MfA projects is estimated to be approximately $9.8 million, which exceeds the $9.0 million contract limit. Included in the proposed Agreement is approximately $800,000 in uncommitted funding to be used only if needed to perform unexpected and urgent work since many of its field crews are assigned to maintenance work in support of the aging infrastructure. Furthermore, the Department advises that excavation services are often needed as a result of unanticipated site conditions beyond its control and that the additional uncommitted funding will only be utilized on an as-needed basis. There is no obligation to expend the entire authorized amount It is anticipated by DWP that completion of all MTA projects will occur in February 2013 which is beyond the current expiration date of December 11, 2012. As a result, both increasing the expenditure authority and extending the term is necessary to enable the Department to continue- providing services in support of the MTA projects or DWP projects on an as-needed basis. DWP does not have any other agreements in place for excavation services and the Department plans to evaluate in 2013 if a replacement contract is needed at that time. The above-mentioned aspects of the proposed First Amendment, and this report, are based upon information received from the Department subsequent to the initial request submittal. RECOMMENDATION That the Mayor: 1. Approve the proposed resolution authorizing the execution of the First Amendment to Contract No. 956 with Northwest Excavating, lnc., that extends the term one-year, expiring on December 10, 2Q13, and increases theexpenditure authority by $1,500,000 for a total. of $10,526,223; and. 2. Return the proposed resolution to the Department for further processing, including Council consideration. FISCAL IMPACT 5T A TEMENT Approval of theaproposed resolution provides an additional $1.5 million of expenditure authority up to approximately $10.5 million from the Power Revenue fund. The proposed Agreement complies with the Department's adopted Financial Policies. Approval of the proposed resolution will have no impact on the City's General Fund. TIME LIMIT FOR COUNCIL ACTION Pursuant to Charter Section 373, "Long Term Contracts Approved by Council," and the Los Angeles Administrative Code Section 10.5, "Limitation and Power to Make Contracts," unless the Council takes action disapproving a contract that is longer than three years within 60 days after submission to Council, the contract shall be deemed approved. MAS:RPR:10130027