HomeMy WebLinkAboutAGENDA REPORT 2021 0616 CCSA REG ITEM 10JCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of June 16, 2021
ACTION APPROVED STAFF
RECOMMENDATION.
BY B. Garza
J. Consider Amendment No. 2 to Siemens Mobility Inc., for Streetlight Maintenance
Services, Extending the Agreement to June 30, 2022; Increasing the Agreement
Amount by $50,000; and Changing the Company Name to Yunex LLC. Staff
Recommendation: Authorize the City Manager to sign Amendment No. 2 to the
Agreement with Siemens Mobility, Inc., extending the Agreement to June 30, 2022,
increasing the not-to-exceed amount of $100,000 to $150,000, and changing
Siemens Mobility, Inc. name to Yunex LLC, subject to final language approval of
the City Manager. (Staff: Shaun Kroes)
Item: 10.J.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Shaun Kroes, Public Works Manager
DATE: 06/16/2021 Regular Meeting
SUBJECT: Consider Amendment No. 2 to Siemens Mobility Inc., for Streetlight
Maintenance Services, Extending the Agreement to June 30, 2022;
Increasing the Agreement Amount by $50,000; and Changing the
Company Name to Yunex LLC
BACKGROUND AND DISCUSSION
On July 16, 2019, the City executed an Agreement with Siemens Mobility Inc. (Siemens),
for maintenance services of approximately 2,229 streetlights that the City was in the
process of acquiring from Southern California Edison. Acquisition of the majority of the
poles occurred September 19, 2019, and Siemens’ service began on that day.
Siemens provides the necessary equipment, personnel and infrastructure to maintain the
City-owned streetlights. Some of the services/features of the Agreement include
providing a 24/7 call center, bucket trucks and crane lift. Siemens also stocks necessary
equipment and replacement parts to ensure the timely repair of streetlights that may
experience technical problems or are damaged by vehicles, such as knockdowns.
When Siemens responds to knockdowns, their initial response is to secure the area, de-
energize the street light and remove any fallen debris and clean the area. Siemens then
provides City staff with a quote for pole repair and provides repair services upon City
approval. Since execution of the Agreement, Siemens has performed two pole
knockdown replacements as of the time of this staff report.
The initial Agreement with Siemens was for a one-year term (expiring June 30, 2020) and
included two, one-year extension options upon mutual agreement. The City executed the
first one-year renewal on June 12, 2020, with Amendment No. 1, which expires June 30,
2021 and now requests to execute the second one-year extension. The Agreement
allows Siemens and the City to negotiate pricing as part of the renewal process. In 2020,
Siemens did not propose adjusting their pricing for fiscal year (FY) 2020/21 services;
however, Siemens has submitted revised pricing for FY 2021/22. The majority of
Siemens’ rates have been proposed to be increased by 2.20%. The per light fixture rate
is proposed to be increased by 2.53% (from $0.79/fixture to $0.81/fixture) for light emitting
Item: 10.J.
505
Honorable City Council
06/16/2021 Regular Meeting
Page 2
diode (LED) and 1.94% (from $1.55/fixture to $1.58/fixture for high pressure sodium
(HPS). Staff has reviewed Siemens proposed rate increases and determined that they
are reasonable.
At the same time that City staff was discussing rate adjustments, Siemens staff informed
the City that Siemens intends to change its company name to Yunex LLC. The name
change will be effective July 1, 2021; consequently, staff has proposed to include the
name change as a part of Amendment No. 2.
FISCAL IMPACT
Streetlight maintenance services are funded with the Citywide Lighting and Landscaping
Fund (2300), through expense line 2300-312-P0006-51210. The original Agreement had
a not-to-exceed limit of $50,000. Amendment No. 1 increased the total not-to-exceed
limit by an additional $50,000 for a total not-to-exceed amount of $100,000. Amendment
No. 1 also enables the City Manager to authorize an additional $5,000 in work if
necessary. At the time of this staff report, Siemens has been paid $72,239.91 which
includes routine and extraordinary maintenance costs as well as two streetlight pole
knockdowns.
Staff is proposing to increase Siemens’ total not-to-exceed Agreement amount by an
additional $50,000; for a total not-to-exceed of $150,000. Amendment No. 1’s clause
stating that the City Manager can amend the Agreement to increase the not-to-exceed
amount by an additional $5,000 will remain.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
Authorize the City Manager to sign Amendment No. 2 to the Agreement with Siemens
Mobility, Inc., extending the Agreement to June 30, 2022, increasing the not-to-exceed
amount of $100,000 to $150,000, and changing Siemens Mobility, Inc. name to Yunex
LLC, subject to final language approval of the City Manager.
Attachment: Draft Amendment No. 2 to Siemens Mobility Inc. Agreement
506
ATTACHMENT
AMENDMENT NO. 2
AGREEMENT BETWEEN THE CITY OF MOORPARK AND SIEMENS MOBILITY,
INC., FOR STREETLIGHT MAINTENANCE SERVICES
This Amendment No. 2 to the Agreement between the City of Moorpark, a
municipal corporation (“City”), and Siemens Mobility, Inc., a corporation (“Contractor”),
for streetlight maintenance services (“Agreement”), is made and entered into on this ___
day of ____________________, 202__.
RECITALS
WHEREAS, on July 16, 2019, the City and Contractor entered into an Agreement
to have the Contractor provide streetlight maintenance services; and
WHEREAS, on June 12, 2020, the City and Contractor executed Amendment
No. 1 to the Agreement, extending the term of the Agreement from June 30, 2020 to
June 30, 2021 and increasing the compensation for services to be performed by
Contractor from fifty thousand dollars ($50,000.00) to one hundred thousand dollars
($100,000.00); and
WHEREAS, the City and Contractor now desire to amend the Agreement for an
additional period; and
WHEREAS, Contractor has submitted a letter dated May 26, 2021 (Exhibit E)
informing the City that effective July 1, 2021 the Contractor’s name shall be changed
from Siemens Mobility, Inc. to Yunex LLC; and
WHEREAS, the City and Contractor now desire to amend the Agreement to
increase the compensation for services to be performed by Contractor from one
hundred thousand dollars ($100,000.00) by a value of fifty thousand dollars
($50,000.00) for a total contract value of one hundred fifty thousand dollars
($150,000.00), and document said agreement to amend by jointly approving
Amendment No. 2 to the Agreement.
NOW, THEREFORE, it is mutually agreed by and between the parties to the
Agreement as follows:
I. CONTRACTOR NAME:
Contractor’s name is hereby changed from Siemens Mobility, Inc. to Yunex LLC,
effective July 1, 2021.
II. Section 1, TERM, is amended by replacing this section in its entirety as follows:
“The term of this Agreement shall be from the date of execution to
June 30, 2022.”
III. Section 2, SCOPE OF SERVICES, is amended by replacing paragraph three (3)
of the section in its entirety as follows:
507
Amendment No. 2 to Agreement between City of Moorpark and Siemens Mobility, Inc. Page 2
“Compensation for the services to be performed by Contractor shall
be in accordance with Exhibit C and Exhibit D. Compensation shall not
exceed the rates or total contract value of one hundred fifty thousand
dollars ($150,000.00) as stated in Exhibit C and Exhibit D, without a
written amendment to the agreement executed by both parties. Payment
by City to Contractor shall be in accordance with the provisions of this
Agreement.”
IV. Section 5, PAYMENT, is amended by replacing paragraphs two (2) and three (3)
of the section in their entirety as follows:
“The City agrees to pay Contractor monthly, in accordance with the
payment rates and terms and schedule of payment as set forth in Exhibit
C and Exhibit D, based upon actual time spent on the above tasks. This
amount shall not exceed one hundred fifty thousand dollars ($150,000.00)
for the total term of the Agreement unless additional payment is approved
as provided in this Agreement.
Contractor shall not be compensated for any services rendered in
connection with its performance of this Agreement, unless such additional
services and compensation are authorized, in advance, in a written
amendment to the agreement executed by both parties. The City
Manager, if authorized by City Council, may approve additional work not to
exceed five thousand dollars ($5,000.00).”
V. Remaining Provisions:
Except as revised by this Amendment No. 2, all of the provisions of the
Agreement shall remain in full force and effect.
508
Amendment No. 2 to Agreement between City of Moorpark and Siemens Mobility, Inc. Page 3
In Witness Whereof, the parties hereto have caused this Amendment to be
executed the day and year first above written.
CITY OF MOORPARK YUNEX LLC
_______________________________ _______________________________
Troy Brown
City Manager
Steven Teal
Director of Services
_______________________________
Michael Hutchens
Operations Manager
Attest:
_______________________________
Ky Spangler
City Clerk
509
Siemens Mobility Inc.
1026 E. Lacy Ave
Anaheim, CA 92805
714.284.0206
714.284.1150 Fax
www.usa-siemens.com/mobility
May 7, 2021
Shaun Kroes
Public Works Manager
City of Moorpark
799 Moorpark Ave
Moorpark, CA 93021
Subject: FY2021/2022 Contract Extension with Price Increase Request
Dear Mr. Kroes,
This letter shall serve as our official request for a contract rate increase of 2.2% pursuant to the
Consumer Price Index for the Los Angeles/Long Beach/Anaheim area. A copy of the report is
attached for reference. With this increase, Siemens will continue providing Streetlight
maintenance services as per the terms and conditions of the existing agreement (“Agreement
between the City of Moorpark and Siemens Mobility, Inc. for Streetlight Maintenance Services”
Dated July 19th, 2019) between Siemens Mobility, Inc. and the City of Moorpark for an additional
year (July 1st 2021 to June 30th 2022). An updated rate sheet is also attached for your reference.
We feel we have completed another successful and mutually beneficial year with the City of
Moorpark. We thank you for your business and we are looking forward to continuing servicing the
City of Moorpark. Please feel free to contact me if you have any questions or concerns.
Sincerely,
Siemens Mobility, Inc.
Joshua Ferras
Joshua Ferras
Service Account Manager
EXHIBIT D
510
Pricing
UNITS COST TOTAL
PER FIXTURE/MO $0.81 $1,959.51
PER FIXTURE/MO $1.58 TBD
LUMP SUM/MO $0.00 $0.00
PER FIXTURE $107.31
LUMP SUM/QTRLY $812.49 $3,249.96
Hourly Rate - Normal $120.60
Hourly Rate - Normal $127.75
Hourly Rate - Normal $101.18
Hourly Rate - Overtime $153.30
Hourly Rate - Overtime $163.52
Hourly Rate - Overtime $144.10
Hourly Rate - Premium Time $186.00
Hourly Rate - Premium Time $199.29
Hourly Rate - Premium Time $144.10
DESCRIPTION UNITS TOTAL
Hourly Rate $25.55
Hourly Rate $30.66
Hourly Rate $56.21
DESCRIPTION
Percent Mark-Up over Suppliers Invoice
Material Mark-Up
15%
%
Quarterly Streetlight Operation Review (night check)
Maintenance -(outside contractor's 1 year warranty) not
regular maintenance
Streetlight Maintenance Worker
Foreman
Laborer
OPERATIONS AND MAINTENANCE
DESCRIPTION
Routine Maintenance (LED)
Call center
Install House Side Shields (material & labor)
Routine Maintenance (HPS)
Maintenance -(outside contractor's 1 year warranty) not
regular maintenance
Streetlight Maintenance Worker
Foreman
Laborer
Maintenance -(outside contractor's 1 year warranty) not
regular maintenance
Streetlight Maintenance Worker
Foreman
Laborer
Maintenance -(outside contractor's 1 year warranty) not
regular maintenance
Service Truck
Bucket Truck
Crane Truck
Additional Pricing
511
2
Food
Food prices were unchanged for the month of March. (See table 1.) Prices for food at home declined 0.7
percent, but prices for food away from home advanced 0.7 percent for the same period.
Over the year, food prices advanced 3.9 percent. Prices for food away from home advanced 4.1 percent since a
year ago. Prices for food at home moved up 3.5 percent led, by higher prices for meats, poultry, fish, and eggs
(6.6 percent).
Energy
The energy index rose 4.9 percent over the month. The increase was mainly due to higher prices for gasoline
(8.0 percent). Prices for electricity and natural gas service both edged up 0.1 percent for the same period.
Energy prices jumped 14.9 percent over the year, largely due to higher prices for gasoline (15.4 percent).
Prices paid for natural gas service moved up 16.1 percent, and prices for electricity increased 13.4 percent
during the past year.
All items less food and energy
The index for all items less food and energy edged up 0.2 percent in March. Higher prices for apparel (3.9
percent) and recreation (3.3 percent) were partially offset by lower prices for education and communication
(-1.9 percent) and new and used vehicles (-0.9 percent).
Over the year, the index for all items less food and energy rose 0.9 percent. Components contributing to the
increase included alcoholic beverages (11.1 percent), used cars and trucks (8.7 percent), other goods and
services (3.9 percent), and shelter (0.9 percent). Partly offsetting the increases were price decreases in
recreation (-1.9 percent) and education and communication (-1.1 percent).
The April 2021 Consumer Price Index for the Los Angeles area is scheduled to be released on May 12,
2021.
Table A. Los Angeles-Long Beach-Anaheim, CA, CPI-U 1-month and 12-month percent changes, all items
index, not seasonally adjusted
Month
2017 2018 2019 2020 2021
1-month 12-
month 1-month 12-
month 1-month 12-
month 1-month 12-
month 1-month 12-
month
January .................................................... 0.9 2.1 0.8 3.5 0.7 3.2 0.8 3.1 0.2 0.9
February .................................................. 0.6 2.7 0.7 3.6 0.1 2.5 0.3 3.4 0.4 1.0
March ...................................................... 0.3 2.7 0.4 3.8 0.6 2.7 -0.7 1.9 0.5 2.2
April ......................................................... 0.2 2.7 0.4 4.0 1.0 3.3 -0.3 0.7
May .......................................................... 0.3 2.5 0.4 4.1 0.2 3.1 0.4 0.9
June ......................................................... -0.2 2.2 -0.2 4.0 0.0 3.3 0.5 1.4
July .......................................................... 0.3 2.5 0.2 3.9 0.1 3.3 0.6 1.9
August ..................................................... 0.3 2.8 0.2 3.9 0.0 3.0 0.1 2.0
September ............................................... 0.4 3.1 0.5 3.9 0.5 3.0 -0.3 1.2
October .................................................... 0.4 3.1 0.5 4.1 0.7 3.2 0.2 0.7
November ................................................ 0.1 3.6 -0.3 3.6 -0.3 3.2 0.1 1.0
December ................................................ 0.0 3.6 -0.3 3.2 -0.6 3.0 -0.2 1.5
512
Siemens Mobility, Inc. 9225 Bee Cave Road, Building B, Suite 201 Tel.: +1 512-837-8300
Intelligent Traffic Systems Austin, TX 78733 www.usa.siemens.com/mobility
May 26, 2021
Mr. Shaun Kroes
City of Moorpark
799 Moorpark AveMoorpark, CA 923021
RE: Transfer of Siemens Mobility Contracts from Siemens Mobility, Inc. to Yunex LLC
Dear Mr. Kroes,
On November 12, 2020, Siemens AG (“Siemens”) announced that in the course of Siemens Mobility’s
continued development, the unit Intelligent Traffic Systems (“ITS Business”) will be carved out worldwide
by the end of fiscal 2021 into separately managed entities under the new brand name Yunex Traffic.
Transferred into separate companies, the ITS Business will be able to further pursue its growth strategy,
shape the digital transformation of its industry and actively drive market consolidation. In this connection,
the unit will leverage its market-leading position in installed systems and drive advances in digitalization.
Offering innovative, smart, and comprehensive mobility solutions for roads and cities, the ITS Business is
the world’s only supplier of solutions serving all the main regional standards worldwide. Most recently, the
unit generated revenue of about €600 million. Since 2013, the compound annual growth rate for orders has
totaled eight percent.
In the context of this global carve-out, Siemens Mobility, Inc. (hereinafter “Siemens Mobility”) will transfer
its ITS Business in the United States to Yunex LLC on July 1, 2021.
The transfer of Siemens Mobility’s ITS Business to Yunex LLC includes the transfer of all contracts
pertaining to Siemens Mobility’s ITS Business, including the following contract(s) between Siemens Mobility
and you:
Streetlight Turnkey Services
Traffic Signal Maintenance Agreement
All contract appendices as well as all rights and obligations are included in the contract transfer.
In the event that a contract cannot be transferred, Yunex LLC shall, from July 1, 2021 on, fulfill obligations
arising out of such contract as a subcontractor acting on behalf of Siemens Mobility.
To the extent required by the contract referenced herein, this letter seeks your consent to the contract
transfer and assignment and satisfies any notice requirement with respect thereto. This letter does not
confer any new rights (including any right to consent to or to receive prior notice of the transfer and
assignment) that do not currently exist under the contract.
We kindly ask you to consent to the transfer and assignment of the contract to Yunex LLC. Furthermore,
we ask you to waive any and all rights that the contract might possibly grant due to changes in the
shareholder structure of the legal entity holding the contract. Please sign and send back the enclosed
declaration of consent.
EXHIBIT E
513
Page 2 of 3
In addition, we would like to inform you about the following:
Bank account details for Yunex LLC:
Account Name: Yunex LLC
Account Number: 54021624
ABA Routing Number: 031100209
Bank Name: Citibank N.A.
One Penn’s Way
New Castle, DE 19720
Swift Code: CITIUS33
We would ask you to please use these new bank account details only after July 1, 2021.
The employer identification number for Yunex LLC is 86-2136678.
If you currently have (an) exemption certificate(s) on file with Siemens Mobility, Inc. will receive an email
from fts_us_tax_exemptions.us@siemens.com requesting updated exemption certificate(s) to be issued to
Yunex LLC through Avalara’s CertCapture tool with their unique link to populate their exemption form online
or upload their prepopulated form. Exemption certificates not received by July 1, 2021, will result in taxes
being included in invoices.
We are also currently in the process of reapplying for any required Contractor’s Licenses in our regions of
operation under Yunex LLC. While we kindly ask you to provide us with the signed consent form at your
earliest convenience, the assignment of your contract will only take place once the required licenses are in
place.
Please use the following contact details for correspondence relating to contractual relationships:
Yunex LLC
Attn: Anchal Bansal
9225 Bee Cave Road
Building B, Suite 201
Austin, TX 78733, USA
Phone: +1 770-598-4705
E-mail: anchal.bansal@siemens.com
Should you have any questions, please do not hesitate to contact us. Thank you in advance for your support
and for your cooperation.
Sincerely yours,
Siemens Mobility, Inc.
Steven Teal Anchal Bansal
Attachment: Declaration of Consent
514