CITY OF SIMI VALLEY
MEMORANDUM
March 18, 2024
TO: City Council
FROM: Department of Public Works
SUBJECT: APPROVAL OF SECOND CONTRACT AMENDMENT TO PROCURE
SERVICE AND MAINTENANCE FOR TRAFFIC SIGNAL PREVENTATIVE
MAINTENANCE, EMERGENCY REPAIR, AND NON -EMERGENCY
MAINTENANCE AND APPROVE A SUPPLEMENT AL BUDGET
REQUEST IN FUND 100
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Approve the Second Contract Amendment with Econolite Systems Inc. (page 4) to procure service and maintenance for traffic signal preventative maintenance, emergency repair, and non-emergency maintenance, increasing the not-to-exceed amount by $144,255, for a total not-to-exceed amount of $1,386,655;
2. Approve a supplemental budget request in the amount of $144,255 in the General Fund operating budget (1004050-44490);
3. Authorize the City Manager to approve subsequent contract amendments to incorporate future budgeted funds as approved by the City Council into the contract amount.
BACKGROUND AND OVERVIEW
The City entered into a contract with Econolite Systems, Inc. (Econolite) on June 7, 2021, to maintain City traffic signals and equipment. On May 1, 2023, the City entered into the First Contract Amendment, extending the terms to June 30, 2025, and increasing the total not-to-exceed amount to $1,242,400.
Due to age and equipment failures, several traffic signals have become inoperable and required repair above and beyond the annual maintenance budget. Further, construction operations conducted by SiFi Networks have caused damage to known traffic signal facilities, causing the signals and associated video detection equipment to become inoperable and require repair above and beyond the annual maintenance budget. Staff is requesting the Second Contract Amendment increase the not-to-exceed amount by $144,255.
AGENDA ITEM NO.
CONSENT (6)
TR2405.SR.DD
FINDINGS AND ALTERNATIVES
In
the past several months, two traffic signals in the City have been subject to failure due to aging and/or damaged equipment: Los Angeles Avenue at Hubbard Street, and Royal Avenue at Crocker Street. These intersections were originally constructed in 1971 and 1978 respectively and, while serviceable, the traffic signal equipment have reached the end of their useful life. The failures occurred due to wiring in the field, with repair costs of $31,924.28.
O
n August 4, 2023, construction activity conducted by SiFi Networks at the intersection of Los Angeles Avenue and First Street st ruck a traffic signal conduit with trenching equipment rendering the signal inoperable. The equipment cut through the conduit and wiring, causing a separate failure of the video detection system. Costs incurred for the repairs to the conduit were $17,341.13, and costs for the video detection system were $43,461. On November 3, 2023, construction activity conducted by SiFi Networks at the intersection of Tierra Rejada Road and Stargaze Place struck another traffic signal conduit with trenching equipment, rendering the signal inoperable and damaging the video detection system. The City incurred costs of $8,067.80 to repair the traffic signal to make it operable but will incur an additional $43,461 in costs to replace the video detection system.
T
hese costs were accommodated within existing purchase orders, however the repairs will reduce the spending authority of the maintenance budget and maximum contract amount with several months remaining in the Fiscal Year. Although the City is seeking reimbursement from SiFi Networks for the cost of the damages, reimbursement will not increase spending authority.
S
taff is therefore requesting to amend the current contract with Econolite to increase the not-to-exceed amount by $144,255, for a total-not-to-exceed amount of $1,386,655, and approve a supplemental budget request in the amount of $144,255 in the General Fund (100) Lighting Maintenance budget, and authorize the City Manager to approve subsequent contract amendments to incorporate future budgeted funds as approved by the City Council into the contract amount.
T
he following alternatives are available to the City Council:
1. A
pprove the Second Contract Amendment with Econolite Systems Inc. to procure service and maintenance for traffic signal preventative maintenance, emergency repair, and non-emergency maintenance, increasing the not-to-exceed amount by $144,255, for a total not-to-exceed amount of $1,386,655;
2. A
pprove a supplemental budget request in the amount of $144,255 in the General Fund operating budget (1004050-44490);
3. Authorize the City Manager to approve subsequent contract amendments to incorporate future budgeted funds as approved by the City Council into the contract amount.
2 4. Provide staff with other direction.
5. Provide staff with further direction.
Staff recommends Alternative Nos. 1, 2 and 3.
SUGGESTED BOARD MOTION
I move to approve the Second Contract Amendment with Econolite Systems Inc. to procure service and maintenance for traffic signal preventative maintenance, emergency repair, and non -emergency maintenance , increasing the not -to-exceed amount by $144,255, for a total not-to-exceed amount of $ 1,386,655, approve a supplement al budget request in the amount of $144,255 in the General Fund operating budget (1004050-44490).
SUMMARY
On June 7, 2021, the City Council awarded a contract with Econolite Systems, Inc ., for service and maintenance for traffic signal preventative maintenance, emergency repair, and non -emergency maintenance . Due to age and equipment failures, several traffic signals have become inoperable and required repair above and beyond the annual maintenance budget. Further, construction operations conducted by SiFi Networks have caused damage to known traffic signal facilities, causing the signals and associated video detection equipment to become inoperable and require repair above and beyond the annual maintenance budget. Staff recommends a contract amendment increasing the not-to-exceed by $144,255, for a total not -to-exceed amount of $ 1,386,655, and a supplemental budget request in the amount of $144,255 in the General Fund operating budget.
____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Justin Link, Principal Engineer
INDEX Page
Second Contract Amendment ............................................................ 4 Attachment A - Original Amendment .................................................. 6 Attachment B - First Contract Amendment ....................................... 57 3 TR2405.CON.DD
SECOND AMENDMENT TO CONTRACT BETWEEN THE CITY
OF SIMI VALLEY AND ECONOLITE SYSTEMS, INC., TO
PROCURE SERVICE AND MAINTENANCE FOR TRAFFIC
SIGNAL PREVENTATIVE MAINTENANCE, EMERGENCY
REPAIR, AND NON-EMERGENCY MAINTENANCE
THIS SECOND AMENDMENT TO CONTRACT is made and entered into in the City of Simi Valley on this 18
th day of March 2024, by and between the CITY OF SIMI
VALLEY, a municipal corporation, hereinafter referred to as CITY, and ECONOLITE SYSTEMS, INC., a California Corporation, hereinafter referred to as CONSULTANT, each a “Party” and collectively, “Parties”.
I. Recitals
A. CITY and CONSULTANT entered into a written contract ("CONTRACT") executed by the Parties on June 7, 2021 for the performance of service and maintenance for traffic signal preventative maintenance, emergency repair, and non- emergency maintenance, which is incorporated herein by reference.
B. On May 1, 2023, the Parties executed a FIR ST AMENDMENT to the CONTRACT (“FIRST AMENDMENT”) extending the term of the CONTRACT for two years through and including June 30, 2025 and increasing the CONTRACT amount by $662,400, for a total contract not to exceed amount of $1,242,400. The FIRST AMENDMENT is incorporated herein by reference.
In accordance with paragraph seven (7) of the CONTRACT, the Parties desire to amend the CONTRACT by increasing the not to exceed amount by $144,255 to $1,386,655 for additional repairs.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
II. Amendment
1. Section 3. Compensation and Payment
. Subsection C from the CONTRACT
is being deleted in its entirety and replaced with the following:
“The compensation to be paid by CITY to CONSULTANT for the services provided hereby shall be amended as follows: In no event shall the total amount paid for this CONTRACT AMENDMENT exceed $ 144,255, for a total not to exceed amount of $1,386,655, unless otherwise agreed to by the Parties in writing. The CONSULTANT shall keep a tally of the cost for the work ordered by CITY. The CONSULTANT shall not accept work orders from the CITY if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the Parties in writing.”
4 TR2405.CON.DD
2. Except as herein amended, all other terms and conditions of the CONTRACT shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.
Attest: City of Simi Valley, A Municipal Corporation
By:
Lucy Blanco, City Clerk Fred D. Thomas, Mayor of the City of Simi Valley, California
Approved as to Form: Econolite Systems, Inc.
Algeria R. Ford, City Attorney By:
Approved as to Content: Print Name:
Title:
Brian Paul Gabler, City Manager
By:
Print Name:
Johanna Medrano,
Deputy Administrative Services Director/ Title:
Budget & Purchasing
Ronald K. Fuchiwaki
Public Works Director
5 ATTACHMENT A
6 7
FINDINGS AND ALTERNATIVES
The bid results from the City of Thousand Oaks solicitation are provided below. The amounts shown are based on the City of Thousand Oaks' estimated annual extraordinary maintenance:
Bid Results
Estimated Estimated
Annual Extraordinary Estimated Contract Cost
Company Maintenance Maintenance Annual Cost (2 years)
Econolite $67,440.66 $220,061.77 $287,502.33 $575,004.66 Systems, Inc.
Crosstown
Electrical & $71,632.00 $269,620.00 $341,252.00 $682,504.00 Data, Inc.
Siemens $120,274.00 $265,472.00 $385,746.00 $771,492.00 Mobility, Inc.
Staff reviewed the bids and concluded that Econolite submitted the lowest responsive and responsible bid. Econolite met the bid specifications set forth by the City of Thousand Oaks, and has been their traffic signal maintenance contractor for many years. The bid amount of $67,440.66 equates to $16,860.17 quarterly, $5,620.06 monthly, and/or $46.45 per signal for routine maintenance of 121 City of Simi Valley-owned traffic signals. The extraordinary work may include repair due to traffic collisions, vandalism, or equipment failures, as well as traffic signal control or equipment upgrades.
It should be noted that the bid price for extraordinary work reflects only a sample of costs that may be incurred by the City for work performed under this classification. The estimated quantities used in the bid were for comparison purposes based on prior years.
These quantities only include labor hours and a selection of commonly used items, such as LED modules, countdown pedestrian modules, and safety lights. Additional parts and equipment necessary in the event of an extraordinary incident is not quantified in the bid due to the uncertainty of the materials required; the bid specification allows for a 15% mark up in direct costs of materials.
Staff recommends awarding a contract to Econolite Systems in the budgeted amount of $290,000 per year, for a total of $580,000, for the two-year contract.
The FY 2021-22 Public Works Preliminary Base Budget contains $219,500 for traffic signal services and $84,000 from Traffic Impact Fees for the maintenance of the 121 City owned traffic signals. A similar amount will be requested in FY 2022-23 to fund this proposed two-year contract.
TRC21006.SR.DB
8 The following alternatives are available to the City Council:
1. Award the attached contract to Econolite Systems, Inc., (Econolite) to procure service and maintenance for traffic signal preventative maintenance, emergency repair, and non-emergency maintenance for an amount not to exceed $580,000, for a two-year period ending June 30, 2023.
2. Authorize the City Manager to approve one (1) additional two-year amendment.
3. Provide staff with additional direction.
Staff recommends Alternative Nos. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to award of the traffic signal maintenance contract to Econolite Systems, Inc., for an amount not to exceed $580,000, for a two-year period ending June 30, 2023, and authorize the City Manager to approve one (1) additional two-year amendment.
SUMMARY
The City's current contract for traffic signal maintenance will expire on June 30, 2021. On May 7, 2020, City staff actively participated in a solicitation for traffic signal maintenance services for the City of Thousand Oaks, with staff providing rankings to the City of Thousand Oaks for selection of their contractor. Three contractors submitted bids, and each were deemed responsible and responsive. Based on the Thousand Oaks Solicitation, and the favorable rates submitted thereto, staff recommends selection of Econolite Systems, Inc. The proposed contract is for a two year term from July 1, 2021, through June 30, 2023, for an amount not to exceed $580,000, with the option to extend for one (1) additional two-year term.
Public Works Director
Prepared by: Justin Link, Principal Engineer
INDEX
Contract. ..................................................................................................................... 4 Exhibit A - City of Thousand Oaks - Agreement for General Services ...................... 9 Exhibit B - Schedule of Fees, Schedule "A" ............................................................. 50 TRC21006.SR.DB
TRC21006.CON.DB
CONTRACT BETWEEN THE CITY OF SIMI VALLEY, AND
ECONOLITE SYSTEMS, INC., TO PROCURE SERVICE
AND MAINTENANCE FOR TRAFFIC SIGNAL
PREVENTATIVE MAINTENANCE, EMERGENCY REPAIR,
AND NON-EMERGENCY MAINTENANCE
THIS CONTRACT is made and entered into in the City of Simi Valley on this 7 th day of June, 2021, by and between the CITY OF SIMI VALLEY, municipal corporation, hereinafter referred to as CITY, and ECONOLITE SYSTEMS, INC., a California corporation, hereinafter referred to as CONTRACTOR, each a “Party,” and collectively, “Parties”.
RECITALS
WHEREAS, the CITY wishes to procure service and maintenance for Traffic Signal Preventative Maintenance, Emergency Repair, and Non-Emergency Maintenance; WHEREAS, CONTRACTOR has a valid contract with another
governmental agency (City of Thousand Oaks, Contract No. DPW: 821-30) under which CONTRACTOR provides Traffic Signal Preventative Maintenance, Emergency Repair, and Non-Emergency Maintenance Services (the “Cooperative Contract”); and NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
AGREEMENT
1. Term. The term of this CONTRACT shall be from July 1, 2021, through the 30 th day of June 2023 or until completion of all of the CONTRACTOR’S obligations under this CONTRACT and its accompanying exhibits. This contract may be extended one (1) additional two-year term upon mutual written consent of the City Manager and the CONTRACTOR, but in any event no longer than June 30, 2025, as set forth in the City of Thousand Oaks contract dated June 9, 2020, Section 6 attached hereto and incorporated herein as Exhibit “A”.
2. Description of Supplies, Equipment, Materials, or Services.This CONTRACT is for the procurement service and maintenance for Traffic Signal Preventative Maintenance, Emergency Repair, and Non-Emergency Maintenance.
CONTRACTOR agrees to supply the item(s) more specifically set forth in the City of Thousand Oaks contract dated June 9, 2020, Page 16, Scope of Work, attached hereto and incorporated herein as Exhibit “A”.
3. Compensation and Payment.
A. The CITY shall be obligated to pay CONTRACTOR based
upon the unit and/or lump sum prices in Schedule of Fees, Exhibit “B”, Schedule “A”. 9 2
B. Payments to the CONTRACTOR shall be made within 30
days after receipt of an original invoice from the CONTRACTOR and acceptance of the goods and/or services by CITY.
C. In no event shall the total amount paid for this CONTRACT exceed $580,000 (the “Not-To-Exceed Limit”) unless otherwise agreed to by the Parties in writing. CONTRACTOR acknowledges that CONTRACTOR is not guaranteed to receive the Not-To-Exceed Limit or any particular or minimum amount of compensation or work under this CONTRACT
4. CONTRACTOR Representations and Obligations.
A. CONTRACTOR shall perform as required by this
CONTRACT. CONTRACTOR also warrants on behalf of itself and all subcontractors engaged for the performance of this CONTRACT that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.
B. CONTRACTOR shall obey all Federal, State, local, and special district laws, ordinances, and regulations.
C. CONTRACTOR shall indemnify, defend, and hold CITY
harmless from any claim that prevailing wages should have been paid pursuant to this CONTRACT, including federal prevailing wage requirements under the Davis-Bacon Act, if applicable and shall be liable for the payment of same and any penalties thereon.
D. CONTRACTOR shall abide by the CITY’S Business Tax
Ordinance, of which proof of payment must be obtained prior to performance of this CONTRACT. CONTRACTOR shall maintain a valid Business Tax Certificate for the term of the CONTRACT.
5. Audit.
A. At any time during normal business hours and as often as the CITY may reasonably deem necessary, CONTRACTOR shall make available to CITY for inspection its records pertaining to this CONTRACT. CONTRACTOR shall permit CITY to audit, examine and/or reproduce such records. CONTRACTOR will retain such financial records, time sheets, work progress reports, invoices, bills and project records for at least two (2) years after termination or final payment under this CONTRACT. This paragraph shall survive for two (2) years after termination of this CONTRACT.
B. CITY shall have the option of inspecting and/or auditing all records and other written materials used by CONTRACTOR in preparing its statements to CITY as a condition precedent to any payment to CONTRACTOR. 10 3
6. Hold Harmless and Indemnification. CONTRACTOR shall defend, indemnify, and hold harmless CITY, its agents, officials, officers, representatives, and employees, from and against all claims, lawsuits, liabilities or damages of whatever nature arising out of or in connection with, or relating in any manner to any act or omission of CONTRACTOR, its agents, employees, and subcontractors, and employees thereof, pursuant to the performance or non-performance of this CONTRACT. The CONTRACTOR shall thoroughly investigate any and all claims and indemnify the CITY and do whatever is necessary to protect the CITY, its agents, officials, officers, representatives, and employees as to any such claims, lawsuits, liabilities, expenses, or damages arising out of this CONTRACT. The CONTRACTOR must select an attorney acceptable to the CITY who will defend such proceeding and the CITY will control any litigation thereof. Such approval by the CITY will not be unreasonably withheld. This paragraph shall survive the termination of this CONTRACT.
7. Amendments. Any amendment, modification, or variation from the terms of this CONTRACT shall be in writing and shall be effective only upon mutual written approval by the City Manager and CONTRACTOR.
8. Anti-Discrimination. In the performance of the terms of this CONTRACT, CONTRACTOR shall not engage in, nor permit subcontractors to engage in, discrimination in employment of persons because of the age, race, color, religious creed, sex, sexual orientation, national origin, ancestry, physical disability, mental disability, medical condition, or marital status of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735.
9. Termination. If, during the term of this CONTRACT, CITY determines that CONTRACTOR is not faithfully abiding by any term or condition contained herein, CITY may notify CONTRACTOR in writing of such defect or failure to perform. The notice must give to the CONTRACTOR a ten (10) day period of time thereafter in which to perform the work or cure the deficiency. If CONTRACTOR has not performed the work or cured said deficiency within the ten (10) days specified in the notice, such failure shall constitute a breach of this CONTRACT, and CITY may terminate this CONTRACT immediately by written notice to CONTRACTOR. Thereafter, neither Party shall have any further duties, obligations, responsibilities, or rights under this CONTRACT except, however, any and all obligations of CONTRACTOR'S surety shall remain in full force and effect and shall not be extinguished, reduced, or in any manner waived by the termination hereof. In such event, CONTRACTOR shall be entitled to the reasonable value of its services pursuant to the applicable price or rate schedules in this CONTRACT (but in any event not to exceed the “Not-To-Exceed Limit) performed from the beginning of the period in which the breach occurs up to the day it received CITY'S Notice of Termination, minus any damages, including liquidated damages if so provided herein, occasioned by such breach. CITY reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the CITY'S sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall CONTRACTOR be entitled to receive in excess of the Not-To- Exceed limit.
10. Complete CONTRACT; Order of Precedence . This CONTRACT and its accompanying exhibits shall constitute the complete CONTRACT between the 11 4
Parties hereto. No verbal agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such verbal agreement, understanding, or representation be binding upon the Parties hereto. In interpreting this CONTRACT, this CONTRACT shall take precedence over the Cooperative Contract.
11. Time of Performance. Time is of the essence in this CONTRACT.
12. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto; provided, however, that no Party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without the prior written consent of the other Party, and any such assignment without said consent shall be void.
13. Authority to Execute Contract. Both CITY and CONTRACTOR do covenant that each individual executing this CONTRACT on behalf of each Party is a person duly authorized and empowered to execute contracts for such Party.
14. Jurisdiction and Venue . Jurisdiction is in an appropriate court in the State of California and venue lies in Ventura County, and the Parties do not consent to arbitration. In the event of any dispute, each Party shall bear its own fees and costs (including attorneys’ fees). This CONTRACT shall be governed by California law, without regard to conflict of law principles.
15. Non-Appropriation of Funds . Payments due and payable to CONTRACTOR for current goods and/or services are within the current budget and within an available, unexhausted and unencumbered appropriation of CITY. In the event CITY/DISTRICT has not appropriated sufficient funds for payment of goods and/or services beyond the current fiscal year, this CONTRACT shall cover only those costs incurred up to the conclusion of the current fiscal year.
16. Taxpayer Identification Number. CONTRACTOR shall provide CITY with a complete Request for Taxpayer Identification Number and Certification, form W-9 (latest revision), as issued by the Internal Revenue Service.
17. Permits and Licenses . CONTRACTOR, at its sole cost and expense, shall obtain and maintain during the term of this CONTRACT, all appropriate permits, licenses, and certificates that may be required in connection with the performance of this CONTRACT.
18. Waivers. The waiver by one Party of any term or condition of this CONTRACT, or any breach thereof, shall not be construed to be a general waiver by said Party or as a waiver of any other term or breach.
19. Notices. All written notices required by, or related to this CONTRACT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither Party to this CONTRACT shall refuse to accept such mail; the Parties to this CONTRACT shall promptly inform the other Party of any 12 5
change of address. All notices required by this CONTRACT are effective on the day of receipt, unless otherwise indicated herein. The mailing address of each Party to this CONTRACT is as follows:
CITY City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, CA 93063
Staff Contact: Justin Link, Principal Engineer
(805) 583-6884
CONTRACTOR Econolite Systems, Inc.
1250 N. Tustin Avenue
Anaheim, CA 92807
Staff Contact: Rodney Mathis
(714) 630-3700
IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed as of the Effective Date.
Attest: City of Simi Valley, A Municipal
Corporation
By:
Lucy Blanco, City Clerk Keith L. Mashburn, Mayor of the City of Simi Valley
Approved as to Form:
David L. Caceres
Interim City Attorney
Approved as to Content:
Brian Paul Gabler
City Manager
By:
Print Name:
Title:
By:
Print Name:
Title:
Alison M. Phagan
Deputy Administrative Services Director
(Support Services)
Ronald K. Fuchiwaki
Public Works Director
13 EXHIBIT “A”
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
ECONOLITE SYSTEMS, INC., TO PROCURE SERVICE
AND MAINTENANCE FOR TRAFFIC SIGNAL
PREVENTATIVE MAINTENANCE, EMERGENCY REPAIR,
AND NON-EMERGENCY MAINTENANCE
CITY OF THOUSAND OAKS CONTRACT DATED
JUNE 9, 2020
TERM: Section 6, Page 4
DESCRIPTION OF SERVICES: Scope of Work, Page 16
INSURANCE: Section 9, Page 6
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35 43
36 44
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43 51
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46 54
EXHIBIT “B”
COST INFORMATION
CONTRACT BETWEEN THE CITY OF SIMI VALLEY AND
ECONOLITE SYSTEMS, INC., TO PROCURE SERVICE
AND MAINTENANCE FOR TRAFFIC SIGNAL
PREVENTATIVE MAINTENANCE, EMERGENCY REPAIR,
AND NON-EMERGENCY MAINTENANCE
47 55
48 56
ATTACHMENT B
57 58
59 60
61 62
63 64