HomeMy WebLinkAboutAGENDA REPORT 2021 0616 CCSA REG ITEM 10KCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of June 16, 2021
ACTION APPROVED STAFF
RECOMMENDATION.
BY B. Garza
K. Consider Amendment No. 6 to Siemens Mobility Inc., for Traffic Signal
Maintenance Services, Adjusting Various Service Rates; Adding Prevailing Wage
Language; and Changing the Company Name to Yunex LLC. Staff
Recommendation: Authorize the City Manager to sign Amendment No. 6 to the
Agreement with Siemens Mobility, Inc., adjusting various rates, adding prevailing
wage language, and changing Siemens Mobility, Inc. name to Yunex LLC, subject
to final language approval of the City Manager. (Staff: Shaun Kroes)
Item: 10.K.
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. 6 to Siemens Mobility Inc., for Traffic Signal
Maintenance Services, Adjusting Various Service Rates; Adding
Prevailing Wage Language; and Changing the Company Name to
Yunex LLC
BACKGROUND
On November 1, 2004, the City executed an Agreement with Siemens Mobility
Inc./formerly Republic Electric, Inc. (Siemens), for traffic signal maintenance services
(Agreement). Since that time, the Agreement has been amended several times;
summarized below:
Amendment
No.
Date Executed Summary of Changes
1 January 29, 2013 Name change from Republic Electric, Inc. to
Siemens Industry, Inc.
2 October 28, 2016 Established an annual not-to-exceed amount of
$65,000 and established an annual rate increase
limitation of no more than 5.00%.
3 June 20, 2017 Established an annual conflict monitoring service
fee of $1,700 (Agreement’s total not-to-exceed
amount of $65,000 remain unchanged).
4 September 10, 2018 Name change from Siemens Industry, Inc. to
Siemens Mobility, Inc.
5 October 24, 2018 Permits Siemens to store a bucket truck at the
Moorpark Public Services Facility (if needed) and
adds a $1.00/month storage fee when storage
occurs.
Item: 10.K.
515
Honorable City Council
06/16/2021 Regular Meeting
Page 2
DISCUSSION
Siemens has not increased their rates since 2016 and has submitted a request for a rate
adjustment for fiscal year (FY) 2021/22. Siemens is proposing to increase the majority of
its fees by 2.2%. Siemens is permitted to propose rate increases based on the Consumer
Price Index (All Urban Consumers; Los Angeles-Riverside-Orange County). The 2.2%
increase is within the not-to-exceed 5% limit of the Agreement and is acceptable.
Siemens is also proposing to change its Equipment Use Charges (Section II.B.
“Extraordinary Maintenance Equipment Use Charges”) from a per use charge to a per
hour charge. The request for the revised per hour charge is to align Siemens’ billing rates
with Siemens’ predominate billing method for newer services. The City will be billed an
hourly rate for the equipment used at the same number of hours as Siemens bills for staff
during extraordinary maintenance. For example, if an electrician is called into service
and provides 2 hours of service, then the City will be billed for 2 hours of bucket truck use
(or $60.00 based on $30.00 per hour). The new billing method is not expected to impact
the overall cost of the Agreement.
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. 6 (attached). Staff has also included current
language referring to California Labor Code Section 1720(a)(1) (prevailing wage) that is
not included in Siemens’ existing Agreement language; although Siemens does pay
prevailing wage and is registered with the California Department of Industrial Relations.
FISCAL IMPACT
Streetlight maintenance services are funded with the Gas Tax Fund (2415) through
expense line 2415-311-00000-51210. The current Agreement’s not-to-exceed limit of
$65,000.00 per year will remain unchanged.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION
Authorize the City Manager to sign Amendment No. 6 to the Agreement with Siemens
Mobility, Inc., adjusting various rates, adding prevailing wage language, and changing
Siemens Mobility, Inc. name to Yunex LLC, subject to final language approval of the City
Manager.
Attachment: Draft Amendment No. 6 to Siemens Mobility Inc. Agreement
516
ATTACHMENT
AMENDMENT NO. 6
AGREEMENT FOR TRAFFIC SIGNAL MAINTENANCE SERVICES
This Amendment No. 6 to the Agreement between the City of Moorpark, a
municipal corporation (“City”), and Siemens Mobility, Inc., a corporation (“Contractor”),
for traffic signal maintenance services (“Agreement”), is made and entered into on this
___ day of ____________________, 202__.
RECITALS
WHEREAS, on November 1, 2004, the City and Contractor entered into an
Agreement to have the Contractor provide certain traffic signal maintenance services;
and
WHEREAS, on July 1, 2010, the Agreement was extended to a year to year
basis per the Term of the Agreement; and
WHEREAS, on January 29, 2013, Amendment No. 1 to the Agreement was
executed, changing Contractor’s name from Republic Electric, Inc. to Siemens Industry,
Inc.; and
WHEREAS, on October 28, 2016, Amendment No. 2 to the Agreement was
executed, establishing an annual not-to-exceed amount of sixty-five thousand dollars
($65,000.00), updating the Term of Agreement language to reflect the Agreement
continuing until terminated, and updating the annual cost-of-living formula with a lower
maximum annual exceedance percentage of five percent (5%); and
WHEREAS, on June 20, 2017, Amendment No. 3 to the Agreement was
executed, establishing a fee in the amount of one thousand seven hundred dollars
($1,700.00) for annual conflict monitoring testing, updating the Schedule of Rates and
Charges, effective July 1, 2017; and
WHEREAS, on September 10, 2018, Amendment No. 4 to the Agreement was
executed, changing Contractor’s name from Siemens Industry, Inc. to Siemens Mobility,
Inc.; and
WHEREAS, on October 24, 2018, Amendment No. 5 to the Agreement was
executed, permitting Contractor to store one (1) Ford F-450 bucket truck vehicle at the
City’s Moorpark Public Services Facility located at 627 Fitch Avenue for a storage
payment fee in the amount of one dollar ($1.00) per month; and
WHEREAS, Contractor has submitted revised service pricing, dated May 18,
2021 (Exhibit G); and
WHEREAS, Contractor has submitted a letter dated May 21, 2021 (Exhibit H)
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 Agreement language should also be updated to reflect
references to California Labor Code Section 1720(a)(1); and
517
Amendment No. 6 to Agreement between City of Moorpark and Siemens Mobility, Inc.
Page 2
WHEREAS, the City and Contractor now desire to amend the Agreement to
reflect the revised service pricing, name change, and California Labor Code Section
1720(a)(1), and document said agreement to amend by jointly approving Amendment
No. 6 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 3, GENERAL SCOPE AND NATURE OF WORK, is amended by adding
the following section:
“City and Contractor acknowledge that this project is a public work
to which prevailing wages apply, and that a public work project is subject
to compliance monitoring and enforcement by the California Department
of Industrial Relations (DIR). Contractor agrees to comply with and be
bound by all the terms, rules and regulations described in (a) Division 2,
Part 7, Chapter 1 (commencing with Section 1720) of the California Labor
Code, including without limitation Labor Code Section 1771 and (b) the
rules and regulations established by the DIR implementing such statutes,
as though set forth in full herein, including any applicable amendments
made thereto during the term of this Agreement. For every subcontractor
who will perform work on this project, Contractor shall be responsible for
subcontractor’s compliance with (a) and (b), and Contractor shall take all
necessary actions to ensure subcontractor’s compliance. Labor Code
Section 1725.5 requires all contractors and subcontractors to annually
register with the DIR before bidding or performing on any public work
contract.”
III. Exhibit E (Schedule of Rates and Charges), is hereby replaced in its entirety with
Exhibit G (Schedule of Rates and Charges), effective July 1, 2021.
IV. Remaining Provisions:
Except as revised by this Amendment No. 6, all of the provisions of the
Agreement shall remain in full force and effect.
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Amendment No. 6 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
Michael Hutchens
Operations Manager
Attest:
_______________________________
Ky Spangler
City Clerk
519
Siemens Mobility Inc.
1026 E. Lacy Ave
Anaheim, CA 92805
714.284.0206
714.284.1150 Fax
www.usa-siemens.com/mobility
May 18, 2021
Shaun Kroes
Public Works Manager
City of Moorpark
799 Moorpark Ave
Moorpark, CA 93021
Subject: FY2021/2022 Contract Extension
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 Traffic Signal
maintenance services as per the terms and conditions of the existing agreement (“Traffic Signal
Maintenance Agreement between the City of Moorpark and Siemens Mobility, Inc.” Dated June
20th, 2017) between Siemens Mobility, Inc. and the City of Moorpark for an additional year (July 1st
2021 to June 30th 2022). An updated Exhibit G 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 G
520
EXHIBIT G
Schedule of Rates and Charges
July 1, 2021
I.Routine Maintenance
Description
1)Monthly Service Charge
2)Annual Conflict Monitoring
Testing
Il. Extraordinary Maintenance
A. Labor Charges
1)Operations Superintendent
2)Engineering Technician
3)Leadman
4)Traffic Signal Technician
5)Traffic Signalman
6)Traffic Signal Laborer
B.Equipment Use Charges
1)Passenger Vehicle
2)Pick-up Truck
3)Service (Utility) Truck
4)Paint Rig Truck
5)Teista (hydraulic man-
lift/bucket) Truck
6)Air Compressor
7)Water Truck
8)Concrete Saw
C. Material Mark-up
Percent Mark-up Over Supplier’s
Invoice
D. Loop Installation (per Job)
1)1 to 4 loops
2)5 to 12 loops
3)13 to 20 loops
4)More than 20 loops
E.Rental Rates
Controller/Cabinet with all
appurtenances
Amount
$91.56 per intersection
$1,734.40 for all
intersections
Straight Time
$81.86
$81.86
$64.63
$64.63
$59.25
$59.25
Amount
$21.00 per hour
$21.00 per hour
$28.00 per hour
$30.00 per hour
$30.00 per hour
$10.00 per hour
$25.00 per hour
$5.00 per hour
Amount
15.00%
Amount
$377.02 per loop
$344.70 per loop
$323.16 per loop
$301.61 per loop
Amount
$646.32 per month
Overtime
$122.79 per hour
$122.79 per hour
$96.95 per hour
$96.95 per hour
$88.87 per hour
$88.87 per hour
521
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
522
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 H
523
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
524