Agenda Item
City Council
Item #: 3.10. 3/8/2022 File #: 22-0070
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
First Amendment to Agreement with Yunex, LLC for On-Call Signal and Lighting Emergency Repair Services.
2. SUMMARY
The City is currently in the second year of a three-year agreement with Yunex, LLC, for an amount not-to-exceed $240,000. During this time, the City has experienced copper wire theft that continues to result in street light outages and the need for emergency repairs. The contract capacity needs to be increased by $300,000 to accommodate additional expenditures.
3. RECOMMENDED ACTION
Approve the First Amendment to Agreement with Yunex, LLC for On-Call Signal and Lighting Emergency Repair Services, and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this First Amendment is $300,000 and will be funded in Capital Projects (500) through Minor Traffic Control Devices (16302).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
B: Provide and maintain infrastructure necessary to ensure the safety of the public.
6. DISCUSSION AND BACKGROUND
Subsequent to a competitive procurement, the City entered into an Agreement with Siemens Mobility Inc. (now Yunex, LLC,) in August 2020, to provide emergency signal and lighting repair services as needed. The Agreement is for an initial term of three years and an amount not-to-exceed $240,000.
Contained within is an optional extension which authorizes the City Manager to extend the Agreement for an additional two years and an amount not-to-exceed $160,000. Staff has not yet exercised the option to extend, as doing so would be premature since the initial term does not expire for another 18 months.
Unrelated to any future extension is the immediate need to increase the Agreement’scapacity by $300,000 during the initial term. This increase is necessary to cover unexpected expenditures (both actual and projected) associated with repairs that are due to recent and continuing copper wire thefts.
If approved, the Agreement would be amended to reflect a not-to-exceed amount of $540,000 (the City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.10. 3/8/2022 File #: 22-0070
If approved, the Agreement would be amended to reflect a not-to-exceed amount of $540,000 (the original $240,000 plus the additional $300,000) for the current three-year term. The optional two- year extension would be preserved and considered at the appropriate time.
From time to time, many municipalities must confront copper street light wire thefts. While the problem can be chronic in the case of certain metropolitan areas, Orange has been largely unaffected for the past decade. Rather, local occurrences are expected to be episodic, occurring in waves for many months at a time. This particular wave began last summer as the price of commodities, including recycled copper, has risen to a level that encourages these activities. Public Works staff have been reporting all wire theft activities to the Police Department, and responding to follow-up requests for information that may ultimately lead to prevention and prosecution of related crimes. Staff have also begun to explore methods for securing the lighting infrastructure, including fortified utility boxes. However, because the thefts have been occurring at random locations, the City would have to fortify all of its street lighting infrastructure city-wide to ensure that areas being targeted by thieves are protected. Doing so requires capital investment that far exceeds the cost of wire replacement.
No budget appropriation is being requested at this time. Funding for the amendment is already available through one of the City’smaintenance-type capital projects, Minor Traffic Control Devices (16302), which includes $150,000 appropriated as part of the FY 2022 mid-year budget adjustment.
The remaining $150,000 will be requested in increments, as part of the budget approval process and, if necessary, budget adjustment process for FY 2023. If the cessation of wire theft renders future budget requests unnecessary, a portion of the contract capacity added by this Amendment would remain unused.
7. ATTACHMENTS
· First Amendment
· Agreement with Siemens Mobility, Inc.
· Transfer to Yunex, LLC
City of Orange Printed on 3/3/2022Page 2 of 2
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