REPORT TO COUNCIL
SUBJECT
Title
Authorize Amending an Existing Contract for Traffic Signal Maintenance Services (F18-296) and Approve Budget Modification No. 55
Report
REPORT IN BRIEF
Approval is requested to amend an existing contract with Econolite Systems, Inc. (formerly Aegis ITS, Inc.) to increase the contract amount by $340,000, from $2,291,140 to $2,631,140 for Traffic Signal Maintenance Services and approval of Budget Modification No. 55 in the amount of $340,000.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and services exceeding $100,000 in any one transaction.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
BACKGROUND AND DISCUSSION
The City contracts annually with Econolite Systems, Inc. (Aegis ITS) for traffic signal preventive maintenance and emergency non-routine repairs. Preventive maintenance is performed quarterly to ensure the traffic and pedestrian signal equipment are in good working order. Emergency non-routine repairs cover replacements and repairs of equipment due to mechanical failures and vehicular collisions. To ensure the safety of both vehicular and non-vehicular traffic, the non-routine repairs are performed immediately upon occurrence.
The current contract with Econolite Systems was approved by Council on June 23, 2015 as the result of a Request for Proposals (RFP) process (RTC No. 15-0589). Council approval included a one-year agreement and delegation of authority to extend the contract for up to four additional years, subject to available budgeted funding and acceptable pricing and service. Under the City Manager’s delegated authority, the agreement was extended by one year in July 2016 and Council approved additional funding in the amount of $108,739 in August 2016 due to collision-related damages and various emergency repairs (RTC No. 16-0747). The contract has been renewed each year under the delegated authority and will be renewed for Fiscal Year 2018/19.
During the last few years, infrastructure repairs have increased, when compared with prior years, due to the materials and labor cost of repairs and increased frequency of knock-down emergency repairs. Additionally, staff has received an increased amount of customer service requests to address signal issues and an unanticipated increase in requests for Underground Service Alert (USA) marking services. Considering these factors, staff recommends the approval of a budget modification in the amount of $340,000 and related contractual amendment to fund these additional services.
FISCAL IMPACT
While routine maintenance costs have been within budget, the City has experienced an elevated level of non-routine and emergency repairs and has provided a much higher level of utility locator services than anticipated. As part of the Fiscal Year 2018/19 Recommended Budget, increased funding for traffic signal maintenance is recommended.
Staff does pursue reimbursement from the offending driver’s insurance company or from the driver when the driver is uninsured. These collection efforts do not recover 100% of the cost to repair the traffic signal, but do help offset the fiscal impact of these accidents.
Budget Modification No. 55
FY 2017/18
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Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
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|
|
|
Expenditures |
|
|
|
|
Public Works Department Program 119 - Transportation and Traffic Services |
$2,403,826 |
$340,000 |
$2,743,826 |
|
|
|
|
|
|
Reserves |
|
|
|
|
Budget Stabilization Fund |
$30,162,651 |
($340,000) |
$29,822,651 |
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|
|
|
|
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Authorize the City Manager to execute a sixth amendment to the existing contract with Econolite Systems, Inc. increasing the contract not to exceed amount by $340,000 to $2,631,140 in substantially the same form as Attachment 1 to the report; and 2) approve Budget Modification No. 55 in the amount of $340,000.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor, Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Sixth Amendment to Services Agreement