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HomeMy WebLinkAboutAGENDA REPORT 1989 0517 CC REG ITEM 08LELOISE BROWN Mayor BERNARDO M. PEREZ Mayor Pro Tom CLINT HARPER, Ph. D. Councilmember PAUL LAWRASON Councilmember SCOTT MONTGOMERY Councilmember RICHARD T. HARE City Treasurer TO: MOORPARK ITEM S• L. M E M O R A N D U M The Honorable City Council STEVEN KUENY City Manager CHERYL J. KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer JOHN V. GILLESPIE Chief of Police FROM: Philip Newhouse, Director of Community Services DATE: May 11, 1989 771 1 SUBJECT: Contract Extension of Amendment to Agreement for Traffic Signal Maintenance Services BACKGROUND: On June 2.0, 1984, the City of Moorpark entered into a five year agreement with Signal Maintenance, Inc., for providing traffic signal maintenance. That agreement expires on ,tune 19, 1989. In June, 1986, section EIGHT (C) of the agreement, which provides for a rate adjustment of services to be performed, was amended to reflect an eight: percent (8 %) per intersection increase. The rate adjustment was based upon consumer price index and insurance increases. There has not been a rate adjustment made for siqnal maintenance since that time (June, 1986). DISCUSSION: Signal Maintenance, Inc. is requesting a rate adjustment of $6.95 per intersection, per month, and a one year extension of the current contract for signal maintenance service. The requested rate adjustment is based upon a Consumer Price Index. (CP1) increase of 4.8% between February, 1988, to February, 1989, and an insurance premium cost increase of $250,000.00, which is to be equally assessed to all signalized intersections serviced by Signal Maintenance, Inc., at a cost of $4.81 per intersection. Currently, our maintenance cost per intersection is $83.60. With the requested rate adjustment of 8.31%, the new cost will be $90.55, not $91.91. as stated in the letter dated May 2, 1989, from Signal Maintenance, Inc. This will be a $6.95 increase per signal maintained. 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 The Honorable City Council Page -2- May 11, 1989 I phoned Mr. Walters of Signal Maintenance, Inc. and informed him of the error. Mr. Walters will be issuing a new letter to us with the rate change. There are sufficient funds currently budgeted in Account #02- 1142 -659 (Traffic Safety - Signal Maintenance) to absorb the requested rate increase for FY 1988/89. STAFF RECOMMENDATION: 1. Approve the Amendment to Agreement for Traffic Signal Maintenance. 2. Extend Agreement for Signal Maintenance Services between the City of Moorpark and Signal Maintenance, Inc., for one year and eleven days, which will expire on June 30, 1990. 3. Authorize the City Manager to sign on behalf of the City. PEN:db Attachments TRAFCSIG.EXT /PRAGENDA MOORr A RK, - A1',FORNIA City Councii N4eeting of _ -/Z 198 ACTION: e'wc 741 �i(JC`4.QPl c� Y