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HomeMy WebLinkAboutItem 11d - Extraordinary Traffic Signal Maintenance Services Contract ExtensionExtend Traffic Signal Extraordinary Maintenance Contract February 15, 2022 Page 1 of 3 DATE: February 15, 2022 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Tyler Polidori, General Services Superintendent SUBJECT: EXTENSION TO THE CONTRACT WITH YUNEX LLC (PREVIOUSLY KNOWN AS SIEMENS MOBILITY, INC.) FOR EXTRAORDINARY TRAFFIC SIGNAL MAINTENANCE SERVICES IN THE AMOUNT OF $78,047.80 Recommendation: Approve SUMMARY On January 15, 2019, the City Council approved a contract with the option of three one- year extensions with Siemens Mobility, Inc. (now known as Yunex LLC) for extraordinary traffic signal maintenance services in the amount of $73,630 annually. Yunex LLC has reached the end of their second contract term and has submitted a written offer to extend the contract for an additional year. The offer reflects a 6%, or $4,417.80, cost increase to offset an increase in the consumer price index of goods related to their operations. This will be Yunex’s third and final contract extension. All other terms and conditions will remain in effect. Based on the excellent services provided by Yunex LLC, it is recommended that the City Council approve, authorize, and direct the City Manager to execute a one-year contract extension with Yunex LLC (previously known as Siemens Mobility, Inc.) for extraordinary traffic signal maintenance services in the amount of $78,047.80. BACKGROUND The Public Works Services Department (“PWSD”) is responsible for the maintenance and repair of 64 signalized intersections within the City. This includes replacing burnt out lamps, repairing safety lights, minor repairs to damaged signal heads, monthly inspection of the signal controllers at all intersections, and field response to timing complaints and blacked out intersections. The purpose of the extraordinary traffic signal maintenance contract is to handle problems that are beyond the expertise of the City’s Signal/Street Light Technicians. The contractor Extend Traffic Signal Extraordinary Maintenance Contract February 15, 2022 Page 2 of 3 also responds when a traffic signal has been knocked down or there is a safety hazard to traffic. The contract specifications also include testing conflict monitors at all intersections to ensure that the traffic signals are functioning properly. The extraordinary traffic signal maintenance contract functions primarily on an as-needed basis with the City being billed for time and materials as work is performed. The City of Arcadia experiences numerous traffic signal pole knockdowns per year resulting from vehicle collisions. Repair costs for collision related pole replacements are billed to the responsible party and reimbursed to the City. The traffic signal related expenses impacting the City’s operational budget are annual conflict monitor testing and after-hours response for traffic signal malfunctions. DISCUSSION On January 15, 2019, the City Council approved a contract, with the option of three one- year extensions with Siemens Mobility, Inc. (now known as Yunex LLC) for extraordinary traffic signal maintenance services in the amount of $73,630 annually. Yunex LLC has reached the end of their second contract term and has submitted a written offer to extend the contract for an additional year. The offer reflects a 6%, or $4,417.80, cost increase to offset an increase in the consumer price index of goods related to their operations. The rate increase is based on the calendar year 2021 Consumer Price Index (“CPI”) increase of 6.6% among all goods and services in the Los Angeles Area. The items measured by the CPI that directly affect the operations of Yunex LLC along with their specific CPI increases are identified below: Item CPI Increase - Calendar year 2021 Fuels and utilities (facilities) 14.2% Motor Fuel 46.4% New and use vehicle purchases 13.7% Motor vehicle insurance 7.2% Although the direct operational expenses incurred by Yunex LLC have escalated above the CPI annual average among all sectors, Yunex LLC has only requested a 6% contract increase to limit the fiscal impact and maintain a positive relationship with the City. Yunex LLC has provided quality service to the City of Arcadia for several years and this is the first contract increase requested since the contract originated in 2019. The City will re-bid this contract in the coming year to ensure that prices and services remain competitive in future years. Extend Traffic Signal Extraordinary Maintenance Contract February 15, 2022 Page 3 of 3 ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The total contract cost will be set at a not-to-exceed amount of $78,047.80. Sufficient funds have been budgeted for extraordinary repairs of traffic signals. All work performed is on a time and materials basis and the contractor is only paid for work performed. RECOMMENDATION It is recommended that the City Council determine that this contract is exempt under the California Environmental Quality Act (“CEQA”); and authorize and direct the City Manager to execute a one-year extension to the contract with Yunex LLC (previously known as Siemens Mobility, Inc.) for extraordinary traffic signal maintenance services in the amount of $78,047.80. Attachment: Proposed Amendment No. 3 to the Contract AMENDMENT NO. 3 TO THE 2018/2019 TRAFFIC SIGNAL MAINTENANCE SERVICES CONTRACT BY AND BETWEEN THE CITY OF ARCADIA AND YUNEX LLC (PREVIOUSLY KNOWN AS SIEMENS MOBILITY, INC.) This Amendment No. 3 (“Amendment No. 3”) is hereby entered into this ______ day of ______________, 2022 by and between the City of Arcadia, a municipal corporation of the State of California, and Yunex LLC, a California Corporation, with respect to that certain Contract between the parties dated March 13, 2019 (“Agreement”), further amended by Amendment No. 1 dated March 25, 2020, and further amended by Amendment No. 2 dated March 9, 2021. The Parties agree as follows: 1. Article 2, Section 2.1 the Contract Term is hereby extended to include the period from March13, 2022 to and including March 13, 2023 (“Extended Term”). 2. Article 3 of the Contract, during the Extended Term the Contract Price shall not exceed Seventy-Eight Thousand, Forty-Seven Dollars and Eighty Cents ($78,047.80). 3. All terms and provisions of the Contract not amended by this Amendment No. 3 are hereby reaffirmed. In witness whereof the Parties have executed this Amendment No. 3 on the date set forth below. CITY OF ARCADIA YUNEX LLC By: By: Dominic Lazzaretto City Manager Title: Dated: Dated: By: ATTEST: Title: Dated: City Clerk APPROVED AS TO FORM CONCUR: Stephen P. Deitsch Paul Cranmer City Attorney Public Works Services Director