HomeMy WebLinkAbout08 - Traffic Signal MaintenanceCITY OF
F NEWPORT REACH
City Council Staff Report
October 28, 2014
Agenda Item No. 8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director- (949) 644 -3330,
dawebb@newportbeachca.gov
PREPARED BY: Brad Sommers, Senior Civil Engineer
PHONE: (949) 644 -3326
TITLE: Approval of Amendment No. 1 to the Traffic Signal Maintenance Agreement with
Siemens Industry, Inc.
ABSTRACT:
On November, 27 2012, the City entered into a Professional Services Agreement with Siemens Industry,
Inc. for routine signal maintenance, repair services and emergency response for the City's 120 traffic
signals, flashing crosswalks, and six flashing beacons. On -going traffic synchronization projects, additional
incident response, increases in desired minor upgrades and maintenance projects necessitate an increase
in the agreement limits and revision of the annual term to match the Fiscal Year.
RECOMMENDATION:
a) Approve Amendment No. 1 to the current Professional Services Agreement with Siemens Industry,
Inc., of Anaheim, for annual maintenance of the City's traffic signal equipment to increase the
compensation for the remainder of the 2013 -14 term by an additional $160,000; modify the term from
calendar year to a fiscal year term; provide compensation for the period between January 1, 2015 and
June 30, 2015 in an amount not to exceed $220,000; and increase the compensation for annual
maintenance beginning Fiscal Year 2015 -16 by an additional $160,000; and
b) Authorize the Mayor and City Clerk to execute Amendment No. 1 of the Agreement.
FUNDING REQUIREMENTS:
There are sufficient funds available in the Public Works Traffic Signal Operation and Maintenance account
(5200 -8030) and Capital Improvement Program for this maintenance agreement amendment for the
current fiscal year.
Funds will be appropriated annually for traffic signal maintenance through the budget process during the
term of the contract.
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DISCUSSION
Maintenance and operation of the City's traffic signal system is managed by Public Works staff through an
outsourced maintenance company that specializes in traffic signal operation and repair. Keeping the City's
traffic signal system operational and in good working condition is a priority and includes routine
maintenance, inspections, retiming; traffic signal equipment testing, repair and replacements; marking of
underground conduits for Underground Service Alerts; emergency response for traffic signal outages and
repair of damage poles /equipment from traffic collisions; and upgrades and replacements for minor
projects.
On November 27, 2012, the City entered into an annual Professional Services Agreement with Siemens
Industry, Inc. for routine signal maintenance, repair and replacement services and emergency response
for the City's traffic 120 signals, flashing crosswalks, and six flashing beacons.
Historically, annual traffic signal maintenance costs vary from year to year. The annual budget for routine
maintenance tasks can generally be fixed as it represents specified costs per intersection. Extraordinary
maintenance costs vary, and are the result of traffic signal synchronization projects, minor upgrades,
unforeseen outages, repairs and traffic collision damage.
Previous review of historical expenditures determined an annual compensation limit of $280,000 to be
adequate for both routine maintenance and any as- needed /emergency work.
But over the last year, Public Works has seen an overall increase in maintenance and replacement work
as the system continues to age in addition to work associated with the on -going traffic signal
synchronization projects. Also, Public Works has undertaken many minor upgrades (intersection rewiring,
cabinet and pole replacements, additional bicycle detection, left turn or pedestrian /bike phasing changes,
painting, replacement of overhead signs and backplates) to improve both the reliability and appearance of
the City's signal system. These minor upgrades are typically "one -off' projects at various locations
throughout the City and can be accomplished quickly and cost effectively using this agreement. Staff
forecasts the current year contract work performed by Siemens to go beyond current compensation limits.
For this reason, staff recommends that the annual contract not -to- exceed amount be increased by an
additional $160,000 per year, bringing the new total annual contract cap to $440,000, to accommodate the
additional maintenance, minor projects and any extraordinary costs which might be incurred.
Additionally, approval of Amendment No. 1 will change and transition the term of the agreement to align
with the Fiscal Year and the City's budget process (July 1 to June 30) rather than the current calendar
year. With the transition from calendar year to fiscal year renewal terms, the current year term will expire
on December 31, 2014. The next term will be a short term period from January 1, 2015 to June 30, 2015
(and be funded at 1/2 the annual cap or $220,000). The remaining terms begin on July 1, 2015 and will
follow the City's Fiscal Year. The final termination date of the Agreement will also be extended from
December 31, 2017 to June 30, 2018.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality
Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably
foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at
which the City Council considers the item).
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ATTACHMENTS:
Description
Attachment A -Amendment No.1 with Siemens Industry. Inc.
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ATTACHMENT A
AMENDMENT NO. ONE TO
MAINTENANCE AND REPAIR SERVICES AGREEMENT
WITH SIEMENS INDUSTRY, INC. FOR
MAINTENANCE AND REPAIR OF CITY TRAFFIC SIGNAL SYSTEM
THIS AMENDMENT NO. ONE TO MAINTENANCE AND REPAIR SERVICES
AGREEMENT ( "Agreement ") is made and entered into as of this 15th day of October,
2014 ( "Effective Date "), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ( "City "), and SIEMENS INDUSTRY, INC., a
Delaware corporation ( "Contractor'), whose address is 1266 N. La Loma Circle,
Anaheim, California 92806, and is made with reference to the following:
RECITALS
A. On November 27, 2012, City and Contractor entered into an annual Maintenance
and Repair Services Agreement ( "Agreement ") to perform regularly scheduled
maintenance and repair services for the City's traffic signals, traffic signal
controllers, electrical or mechanical traffic control or traffic devices, traffic signal
poles and all other hardware, closed circuit television cameras, flashing
crosswalk, flashing beacon, battery backup systems, radar speed warning
devices, as well as providing emergency response and extraordinary
maintenance and repair of the City's traffic signal system ( "Project ").
B. The Original Term of the Agreement, as that term is defined in the Agreement,
expired on December 31, 2013, and the City elected to grant the first renewal of
the term and extend the Agreement from January 1, 2014 through December 31,
2014.
C. The Agreement provides for up to four (4) renewal terms, which collectively
provide for the extension of the Agreement term to December 31, 2017.
D. City desires to enter into this Amendment No. 1 to change the renewal term from
calendar year to fiscal year; extend the term of the Agreement to June 30, 2018;
and, increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on January 1, 2013 ( "Effective
Date "), and shall terminate on December 31, 2013 ( "Original Term "), unless terminated
earlier as set forth herein. The Original Term shall be for one (1) year with the City's
option to automatically renew the Agreement for five (5) additional terms ( "Renewal
Term(s) "), unless terminated earlier as provided in the Agreement and as follows:
E!
TERM
Original Term
First Renewal Term
Second Renewal Term
Third Renewal Term
Fourth Renewal Term
Fifth Renewal Term
Date
January 1, 2013 — December 31, 2013
January 1, 2014 — December 31, 2014
January 1, 2015 — June 30, 2015
July 1, 2015 — June 30, 2016
July 1, 2016 — June 30, 2017
July 1, 2017- June 30, 2018
The term of this Agreement, including the Original Term and any Renewal Terms
shall not extend beyond June 30, 2018 without a written amendment to this Agreement."
2. COMPENSATION TO CONTRACTOR
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following:
"4.1 City shall pay Contractor for the Services on a time and expense not -to-
exceed basis, in accordance with the provisions of this Section and the Schedule
of Rates attached hereto as Exhibit B and incorporated herein by reference.
Contractor's total compensation for Services performed in accordance with this
Agreement shall be as follows:
TERM COMPENSATION (Not -to- Exceed)
Original Term $280,000
First Renewal Term $440,000
Second Renewal Term $220,000
Third Renewal Term $440,000
Fourth Renewal Term $440,000
Fifth Renewal Term $440,000
Siemens Industry, Inc.
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No rate changes shall be made during the term of this Agreement, including the
Original Term and any Renewal Terms, without the prior written approval of the City.
The compensation amounts shall not be exceeded without prior written authorization
from City."
The total amended compensation reflects Contractor's additional compensation
for Services to be performed in accordance with this Amendment No. 1, including all
reimbursable items and subcontractor fees, as follows: (1) An amount not to exceed
One Hundred Sixty Thousand Dollars and 00/100 ($160,000.00) for the twelve (12)
month period between January 1, 2014 and December 31, 2014; (2) An amount not to
exceed Two Hundred Twenty Thousand Dollars and 00/100 ($220,000.00, for the six
(6) month period from January 1, 2015 through June 30, 2015; and (3) An amount not to
exceed Four Hundred Forty Thousand Dollars and 00/100 ($440,000.00 for each
twelve (12) month period from July 1 through June 30 from the Third Renewal Term
commencing July 1, 2015.
3. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Siemens Industry, Inc.
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M.
IN WITNESS WHEREOF, the parties have caused this Amendment No. [1] to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: I(, I f I I C I
By:,
Aaron C. Harp U,pA 1011-1-IN
City Attorney
ATTEST:
Date:
M
Leilani I. Brown
City Clerk
Siemens Industry, Inc.
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Rush N. Hill, II
Mayor
CONTRACTOR: Siemens Industry, Inc., a
Delaware corporation
Date:
Tara Inboriboon
Commercial Area Manager
Date:
By:
Steven Teal
Operations Manager
[END OF SIGNATURES]
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