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HomeMy WebLinkAboutAGENDA REPORT 2025 0716 CC REG ITEM 10FCITY OF MOORPARK, CALIFORNIA City Council Meeting of July 16, 2025 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. F. Consider Amendment No. 11 to Yunex LLC for Traffic Signal Maintenance Services, Increasing the Annual Not-to-Exceed Amount to $130,000. Staff Recommendation: Approve Amendment No. 11 with Yunex LLC to increase the annual not-to-exceed limit by $20,000, from $110,000 to $130,000, subject to final language approval of the City Manager. (Staff: Daniel Kim, City Engineer/Public Works Director) Item: 10.F. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Daniel Kim, City Engineer/Public Works Director BY: Igor Leontiy, Management Analyst DATE: 07/16/2025 Regular Meeting SUBJECT: Consider Amendment No. 11 to Yunex LLC for Traffic Signal Maintenance Services, Increasing the Annual Not-to-Exceed Amount to $130,000 BACKGROUND AND DISCUSSION On November 1, 2004, the City executed an Agreement with Republic Electric, Inc. (formerly Siemens Mobility Inc. and now Yunex LLC) (Yunex) for traffic signal maintenance services (Agreement). As part of the terms of agreement, it may be extended by mutual written agreement by the City and Yunex without the necessity of going to bid. The original Agreement has been amended several times as 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.F. 197 Honorable City Council 07/16/2025 Regular Meeting Page 2 Amendment No. Date Executed Summary of Changes 6 June 30, 2021 Adjusted various rates and added prevailing wage language. 7 January 26, 2022 Name change from Siemens Mobility, Inc. to Yunex LLC. 8 June 20, 2022 Adjusted various rates and increased annual not-to-exceed amount of $65,000 to $70,000. 9 August 9, 2023 Adjusted various rates and increased annual not-to-exceed amount of $70,000 to $75,000. 10 April 22, 2025 Adjusted various rates and increased annual not-to-exceed amount of $75,000 to $110,000. On April 22, 2025, the City executed Amendment No. 10 to the agreement with Yunex LLC for traffic signal maintenance services, increasing the annual not-to-exceed (NTE) amount from $75,000 to $110,000. The amendment was necessary to address rising costs and pending traffic signal maintenance tasks. Fortunately, sufficient funds were already appropriated under expense line 2415-311-00000-51210 for Fiscal Year 2024/25, and no additional appropriation was required at that time. On May 30, 2025, City staff and a representative from Yunex responded to an after- hours emergency call regarding a knocked-down traffic signal pole. The pole was replaced promptly, and the intersection was returned to normal operation. Staff is currently awaiting final invoices and anticipates that the charges will exceed the current contracted budget. When applicable, the City pursues subrogation to recover costs associated with damage to traffic signal infrastructure caused by third parties. This process helps offset repair and replacement expenses by seeking reimbursement from responsible parties or their insurance providers. However, reimbursements are typically paid out over time rather than immediately. Over the past two years, the cost of traffic signal equipment has increased significantly. The increase in cost is due to a number of factors, including the rising costs of raw materials, supply chain disruptions, and economic factors. In addition, the City’s traffic signal infrastructure and equipment are aging, requiring more frequent repairs. The current purchase limits are already close to being met this fiscal year due to the above factors. To date, the City has been invoiced $86,810.81, with an additional $31,035.00 in pending charges for services and equipment replacement. Staff also projects approximately $7,000.00 in maintenance and call-out fees for the month of June. Based on these figures, the current annual not-to-exceed amount of $110,000 is expected to be exceeded before the end of the fiscal year. 198 Honorable City Council 07/16/2025 Regular Meeting Page 3 Due to the recent signal knockdown and the continued increase in equipment costs, staff requests City Council approval of Amendment No. 11 (Attachment) to increase the annual not-to-exceed (NTE) for Fiscal Year 2024/25 of the agreement by $20,000, from $110,000 to $130,000, to ensure sufficient funding is available to continue providing proper care for the City’s traffic signal infrastructure and operations. 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 The Fiscal Year 2024/25 budget includes sufficient appropriation in the expense line 2415-311-00000-51210 in the amount of $228,500; therefore, no additional appropriation is required. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION Approve Amendment No. 11 with Yunex LLC to increase the annual not-to-exceed limit by $20,000, from $110,000 to $130,000, subject to final language approval of the City Manager. Attachment: Draft Amendment No. 11 to Yunex LLC Agreement 199 Rev. 12/15/2023 AMENDMENT NO. 11 AGREEMENT FOR TRAFFIC SIGNAL MAINTENANCE SERVICES This Amendment No. 11 to the Agreement between the City of Moorpark, a municipal corporation (“City”), and Yunex LLC, a limited liability company (“Contractor”), for traffic signal maintenance services (“Agreement”), is made and entered into on ______________________. 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 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, on June 30, 2021, Amendment No. 6 to the Agreement was executed, adding references to California Labor Code Section 1720(a)(1) and increasing rates by 2.2%; and WHEREAS, on January 26, 2022, Amendment No. 7 to the Agreement was executed, changing Contractor’s name from Siemens Mobility, Inc. to Yunex LLC; and WHEREAS, on June 20, 2022, Amendment No. 8 to the Agreement was executed, increasing service rates by 5.0% and the annual not-to-exceed amount of Sixty-Five Thousand Dollars ($65,000.00) by an additional Five Thousand Dollars ($5,000.00) for a total annual not-to-exceed amount of Seventy Thousand Dollars ($70,000.00); and ATTACHMENT 200 Rev. 12/15/2023 Amendment No. 11 to Agreement between City of Moorpark and Yunex LLC. Page 2 WHEREAS, on August 9, 2023, Amendment No. 9 to the Agreement was executed, increasing service rates by 5.0% and the annual not-to-exceed amount of Seventy Thousand Dollars ($70,000.00) by an additional Five Thousand Dollars ($5,000.00) for a total annual not-to-exceed amount of Seventy-Five Thousand Dollars ($75,000.00); and WHEREAS, on April 9, 2023, Amendment No. 10 to the Agreement was executed, increasing the compensation for services to be performed by Contractor from Seventy- Five Thousand Dollars ($75,000.00) by a value of Thirty-Five Thousand Dollars ($35,000.00) for a total contract value of One Hundred Ten Thousand Dollars ($110,000.00); 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 Ten Thousand Dollars ($110,000.00) by a value of Twenty Thousand Dollars ($20,000.00) for a total contract value of One Hundred thirty Thousand Dollars ($130,000.00), and document said agreement to amend by jointly approving Amendment No. 10 to the Agreement. NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: I. Section 5.1, COST, is amended by replacing this section in its entirety as follows: “Routine and Extraordinary Maintenance services shall be provided at rates established in Exhibit K and Exhibit L. Material costs shall be paid at actual costs plus the “mark-up” specified in Exhibit K and Exhibit L. The cost of providing maintenance services shall not exceed One Hundred Thirty Thousand Dollars ($130,000.00) for Fiscal Year 2024/25 without an amendment to the Agreement approved by the City Council. The cost of maintenance of signal controllers, accessories, and systems shall be dependent upon the type of service performed and not upon the type of signal controller, accessory, or system that is serviced.” II. Remaining Provisions: Except as revised by this Amendment No.10, all of the provisions of the Agreement shall remain in full force and effect. 201 Rev. 12/15/2023 Amendment No. 11 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 _______________________________ _______________________________ PJ Gagajena City Manager Michael Hutchens Western Operations Manager Attest: _______________________________ _______________________________ Ky Spangler City Clerk Joshua Ferras Project Manager 202