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HomeMy WebLinkAboutAGENDA REPORT 2024 0605 CCSA REG ITEM 10GCITY OF MOORPARK, CALIFORNIA City Council Meeting of June 5, 2024 ACTION APPROVED STAFF RECOMMENDATIONS. BY A. Hurtado. G. Consider Amendment No. 6 to Agreement with Yunex LLC for Street Light Maintenance Services, Extending the Agreement to June 30, 2025, Increasing the Not-to-Exceed Amount by $50,000; and Consider Waiver of City Purchasing Procedure Pursuant to Moorpark Municipal Code Section 3.04.120. Staff Recommendation: 1) Authorize staff to waive the purchasing procedures set forth in Section 3.04.120 of the Moorpark Municipal Code; and 2) Approve Amendment No. 6 with Yunex LLC, extending the Agreement to June 30, 2025, and increasing the not-to-exceed amount from $250,000 to $300,000, subject to final language approval by the City Manager. (Staff: Dan Kim, City Engineer/Public Works Director) Item: 10.G. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Daniel Kim, City Engineer/Public Works Director BY: Igor Leontiy, Management Analyst DATE: 06/05/2024 Regular Meeting SUBJECT: Consider Amendment No. 6 to Agreement with Yunex LLC for Street Light Maintenance Services, Extending the Agreement to June 30, 2025, Increasing the Not-to-Exceed Amount by $50,000; and Consider Waiver of City Purchasing Procedure Pursuant to Moorpark Municipal Code Section 3.04.120 BACKGROUND AND DISCUSSION On July 16, 2019, the City executed an Agreement with Siemens Mobility, Inc. (now Yunex LLC) for the maintenance of the recently acquired citywide street lights from Southern California Edison. The original Agreement was for a one-year term, expiring on June 30, 2020, and included provisions for two (2) one-year renewal options. Amendments No. 1 and No. 2 were subsequently executed to extend the Agreement to June 30, 2021, and June 30, 2022, respectively. Amendment No. 3 was executed to formalize the name change from Siemens Mobility, Inc. to Yunex LLC (Yunex). On June 20, 2022, and June 9, 2023, the City executed Amendments No. 4 and No. 5 to the Agreement, extending street light maintenance services through June 30, 2023, and June 30, 2024, respectively. Amendment No. 5 increased the Agreement’s total not-to- exceed amount to $250,000 ($50,000 per term for five terms). For Fiscal Year 2024/25, Yunex has submitted a service rate increase of 4.00%, which staff finds to be reasonable and acceptable. The Yunex Agreement does not include additional built-in extensions; however, staff is requesting that the City Council consider Amendment No. 6 to extend the Agreement for another year to June 30, 2025 and Item: 10.G. 348 Honorable City Council 06/05/2024 Regular Meeting Page 2 increase the service rate by 4.00%. This extension for street light maintenance services will also increase the Agreement’s not-to-exceed amount by an additional $50,000 for a total not-to-exceed amount of $300,000. Yunex has performed street light maintenance services for the City from the beginning of the acquisition process, turnover from Southern California Edison, and the recent street light LED retrofit and conversion. Based on Yunex’s knowledge of the City’s street lights and citywide inventory of street light assets, staff recommends that the City Council waive the informal bidding process and continue Yunex’s street light maintenance service for an additional year. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT Street light maintenance services are funded by the Citywide Lighting and Landscaping Fund (2300). The recommended budget for Fiscal Year 2024/25 will appropriate expense line 2300-312-P0006-51210 in the amount of $60,000. This is a $10,000 increase from years past and reflects the rising costs of services and increases in street light service requests and knockdowns from incidences related to motor vehicles. Exhibit H of Amendment No. 6 documents a 4 percent (4%) service rate increase for Fiscal Year 2024/25. Although the cost for street light maintenance services for Fiscal Year 2024/25 increased to $60,000, staff is requesting an increase to the Agreement’s not exceed amount by an additional $50,000. The difference in the contract amount and the service amount for Fiscal Year 2024/25 is from the remaining balance of the contract amount. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION 1. Authorize staff to waive the purchasing procedures set forth in Section 3.04.120 of the Moorpark Municipal Code; and 2. Approve Amendment No. 6 with Yunex LLC, extending the Agreement to June 30, 2025, and increasing the not-to-exceed amount from $250,000 to $300,000, subject to final language approval by the City Manager. Attachment: Draft Amendment No. 6 with Yunex LLC for Street Light Maintenance Services 349 ATTACHMENT AMENDMENT NO. 6 AGREEMENT FOR STREET LIGHT MAINTENANCE SERVICES This Amendment No. 6 to the Agreement between the City of Moorpark, a municipal corporation (“City”), and Yunex LLC, a limited liability company (“Contractor”), for street light maintenance services (“Agreement”), is made and entered into on ___________________________. RECITALS WHEREAS, on July 16, 2019, the City and Contractor entered into an Agreement to have the Contractor provide street light 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 increased 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, on June 30, 2021, the City and Contractor executed Amendment No. 2 to the Agreement, extending the term of the Agreement from June 30, 2021, to June 30, 2022, and increased the compensation for services to be performed by Contractor from One Hundred Thousand Dollars ($100,000.00) to One Hundred Fifty Thousand Dollars ($150,000.00); and WHEREAS, on January 26, 2022, the City and Contractor executed Amendment No. 3 to the Agreement, changing Contractor’s name from Siemens Mobility, Inc. to Yunex LLC; and WHEREAS, on June 20, 2022, the City and Contractor executed Amendment No. 4 to the Agreement, extending the term of the Agreement from June 30, 2022, to June 30, 2023, and increased the compensation for services to be performed by Contractor from One Hundred Fifty Thousand Dollars ($150,000.00) to Two Hundred Thousand Dollars ($200,000.00); and WHEREAS, on June 9, 2023, the City and Contractor executed Amendment No. 5 to the Agreement, extending the term of the Agreement from June 30, 2023, to June 30, 2024, and increased the compensation for services to be performed by Contractor from Two Hundred Thousand Dollars ($200,000.00) to Two Hundred Fifty Thousand Dollars ($250,000.00); and WHEREAS, the City and Contractor now desire to amend the Agreement for an additional period; and WHEREAS, Contractor has submitted revised pricing, dated April 12, 2024 (Exhibit H), with a request to increase service rates by 4.0% effective July 1, 2024, as allowed by the agreement; and 350 Amendment No. 6 to Agreement between City of Moorpark and Yunex LLC. Page 2 WHEREAS, the City and Contractor now desire to amend the Agreement to increase the compensation for services to be performed by Contractor from Two Hundred Fifty Thousand Dollars ($250,000.00) by a value of Fifty Thousand Dollars ($50,000.00) for a total contract value of Three Hundred Thousand Dollars ($300,000.00), and document said agreement to amend by jointly approving Amendment No. 6 to the Agreement; and NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: I. 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, 2025.” II. Section 2, SCOPE OF SERVICES, is amended by replacing paragraph three (3) of the section in its entirety as follows: “Compensation for the services to be performed by Contractor shall be in accordance with Exhibit C, Exhibit D, Exhibit F, Exhibit G, and Exhibit H. Compensation shall not exceed the rates or total contract value of Three Hundred Thousand Dollars ($300,000.00) as stated in Exhibit C, Exhibit D, Exhibit F, Exhibit G, and Exhibit H, 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.” III. 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, Exhibit D, Exhibit F, Exhibit G, and Exhibit H, based upon actual time spent on the above tasks. This amount shall not exceed Three Hundred Thousand Dollars ($300,000.00) 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.” IV. Remaining Provisions: Except as revised by this Amendment No. 6, all the provisions of the Agreement shall remain in full force and effect. 351 Amendment No. 6 to Agreement between City of Moorpark and Yunex LLC. 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, Western Operations Manager Attest: _______________________________ __________________________________ Ky Spangler, City Clerk Joshua Ferras, Project Manager 352 Page 1 of 1 Yunex LLC 1026 E. Lacy Ave Anaheim, CA 92805 714.284.0206 714.284.1150 Fax https://yunextraffic.com April 12, 2024 Daniel Kim City Engineer/Public Works Director City of Moorpark 799 Moorpark Ave Moorpark, CA 93021 Subject: FY2024/2025 Streetlight Maintenance Contract Extension Dear Mr. Kim, This letter shall serve as our official request for a contract rate increase of 4% 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, Yunex LLC will continue providing Traffic Signal 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 Yunex LLC and the City of Moorpark for an additional year (July 1st 2024 to June 30th 2025). 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 your needs. Please feel free to contact me if you have any questions or concerns. Sincerely, Yunex LLC Joshua Ferras Joshua Ferras Regional Manager EXHIBIT H 353 Pricing UNITS COST TOTAL PER FIXTURE/MO $0.93 $2,246.77 PER FIXTURE/MO $1.81 TBD LUMP SUM/MO $0.00 $0.00 PER FIXTURE $123.04 LUMP SUM/QTRLY $931.60 $3,723.40 Hourly Rate - Normal $138.28 Hourly Rate - Normal $146.49 Hourly Rate - Normal $116.01 Hourly Rate - Overtime $175.78 Hourly Rate - Overtime $187.48 Hourly Rate - Overtime $165.24 Hourly Rate - Premium Time $213.27 Hourly Rate - Premium Time $228.50 Hourly Rate - Premium Time $166.32 DESCRIPTION UNITS TOTAL Hourly Rate $29.30 Hourly Rate $35.15 Hourly Rate $64.45 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 354 Western Information Office Bureau of Labor Statistics Geographic Information Western News Release News Release Information 24-680-SAN Wednesday, April 10, 2024 Contacts Technical information: (415) 625-2270 BLSinfoSF@bls.gov www.bls.gov/regions/west Media contact: (415) 625-2270 Related Links CPI historical databases Consumer Price Index, Los Angeles area — March 2024 Area prices were up 0.7 percent over the past month, up 4.0 percent from a year ago Prices in the Los Angeles area, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), advanced 0.7 percent in March, the U.S. Bureau of Labor Statistics reported today. (See table A.) Regional Commissioner Chris Rosenlund noted that the March increase was influenced by higher prices for shelter. (Data in this report are not seasonally adjusted. Accordingly, month-to-month changes may reflect seasonal influences.) Over the last 12 months, the CPI-U advanced 4.0 percent. (See chart 1 and table A.) Food prices rose 2.9 percent. Energy prices advanced 3.3 percent, largely the result of an increase in the price of electricity. The index for all items less food and energy rose 4.3 percent over the year. (See table 1.) View Chart Data Food Food prices declined 0.2 percent for the month of March. (See table 1.) Prices for food at home decreased 0.1 percent, with lower prices in three of the six grocery categories. Prices for food away from home decreased 0.3 percent for the same period. Over the year, food prices rose 2.9 percent. Prices for food at home increased 2.4 percent since a year ago, led by higher prices for other food at home (4.6 percent) and meats, poultry, fish, and eggs (4.2 percent). Prices for food away from home increased 3.8 percent. Energy U.S. BUREAU OF LABOR STATISTICS Search Western Region Go Western Home Western Geography Western Subjects Western Archives Contact Western 355 The energy index rose 3.3 percent over the month. The increase was mainly due to higher prices for gasoline (4.5 percent). Prices for electricity rose 2.1 percent, and prices for natural gas service advanced 0.5 percent for the same period. Energy prices advanced 3.3 percent over the year, largely due to higher prices for electricity (8.3 percent). Prices paid for gasoline advanced 1.8 percent, while prices for natural gas service decreased 4.5 percent during the past year. All items less food and energy The index for all items less food and energy increased 0.7 percent in March. Higher prices for apparel (3.4 percent) and shelter (0.7 percent) were partially offset by lower prices for education and communication (-0.5 percent) and medical care (-0.3 percent). Over the year, the index for all items less food and energy rose 4.3 percent. Components contributing to the increase included shelter (5.6 percent) and medical care (3.1 percent). Partly offsetting the increases were price decreases in new and used motor vehicles (-1.2 percent) and household furnishings and operations (-0.4 percent). Table A. Los Angeles-Long Beach-Anaheim, CA, CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted Month 2020 2021 2022 2023 2024 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month January 0.8 3.1 0.2 0.9 1.1 7.5 1.9 5.8 1.0 2.5 February 0.3 3.4 0.4 1.0 0.3 7.4 -0.3 5.1 0.5 3.4 March -0.7 1.9 0.5 2.2 1.5 8.5 0.1 3.7 0.7 4.0 April -0.3 0.7 1.1 3.6 0.5 7.9 0.7 3.8 May 0.4 0.9 0.6 3.9 0.8 8.0 0.1 3.2 June 0.5 1.4 0.6 4.0 1.1 8.6 0.5 2.5 July 0.6 1.9 0.6 3.9 -0.2 7.7 0.0 2.7 August 0.1 2.0 0.2 4.0 0.1 7.6 0.7 3.3 September -0.3 1.2 0.3 4.6 0.5 7.8 0.3 3.2 October 0.2 0.7 0.9 5.4 0.6 7.5 -0.1 2.4 November 0.1 1.0 0.6 6.0 -0.8 6.0 -0.4 2.8 December -0.2 1.5 0.4 6.6 -0.6 4.9 0.0 3.5 The April 2024 Consumer Price Index for the Los Angeles area is scheduled to be released on May 15, 2024. Technical Note The Consumer Price Index (CPI) is a measures of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force. The CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 75 urban areas across the country from about 6,000 housing units and approximately 22,000 retail establishments—department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index. The index measures price changes from a designated reference date; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000. Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the Internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpi/. In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period. The Los Angeles-Long Beach-Anaheim, CA metropolitan area includes Los Angeles and Orange Counties in California. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; Telecommunications Relay Service: 7-1-1. Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods Los Angeles-Long Beach-Anaheim (1982-84=100 unless otherwise noted) Item and Group Indexes Percent change from- Historical data Jan. 2024 Feb. 2024 Mar. 2024 Mar. 2023 Jan. 2024 Feb. 2024 Footnotes (1) Indexes on a December 1977=100 base. (2)This index series was calculated using a Laspeyres estimator. All other item stratum index series were calculated using a geometric means estimator. (3) Indexes on a December 1982=100 base. (4) Special index based on a substantially smaller sample. (5) Indexes on a December 1993=100 base. (6) Indexes on a December 1997=100 base. - Data not available NOTE: Index applies to a month as a whole, not to any specific date. 356