CC - Item 7A - Traffic Signal Maintenance and Repair Agreement and Budget Amount Increase for St. Francis ElectricROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BILL R. MANIS, CITY MANAGER/,b1,1^
DATE: DECEMBER 12, 2017
SUBJECT: TRAFFIC SIGNAL MAINTENANCE AND REPAIR AGREEMENT AND
BUDGET AMOUNT INCREASE — ST. FRANCIS ELECTRIC
SUMMARY
St. Francis Electric is currently under a two-year contract that began January 1, 2017, with an
option to renew for two additional years, to maintain and repair all of the City -owned traffic
signals at an annual cost of $106,950 or $8,912 monthly. The scope of work per the agreement,
approved by the City Council on December 13, 2016, provides a flat monthly fee for monitoring
of all City -owned traffic signals at an annual cost of $53,475. In addition, the City included
$53,475 to cover the cost of repairs and equipment upgrades. Due to a lack of responsiveness
from the previous contractor (Siemens Industries), there was a backlog of needed repairs and
necessary equipment upgrades, which was not accurately budgeted under the contract with St.
Francis Electric. As a result, St. Francis Electric's contract was under budgeted. It is now
anticipated that the actual amount needed is $172,039 annually or $14,337 monthly.
Expenditures for the first nine months of the contract period have exceeded the contractual
amount by $22,080 and are estimated to exceed the contractual amount by $65,089 by the end of
the contract period (January 2017 — December 2017). As a result, it is necessary to increase the
amount of the contract with St. Francis, as well as increase the budgeted amount for FY 2017-18.
On January 30, 2017, the City entered into a two-year agreement for monitoring and
maintenance all of the City -owned traffic signals with St. Francis Electric. The total annual
contract amount is $106,950 and covers the period January 1st through December 31" each year.
Regular monitoring and maintenance of traffic signals is necessary to ensure public safety and
reduce liability to the City as a preventative measure in mitigating accidents that may be caused
due to system failure. Monitoring and maintenance are two components of a properly
functioning traffic signal system. Of the two components, the monitoring portion can be
considered a fixed cost. Monitoring involves a physical inspection of all lights at each
intersection and testing of associated switches, electrical boxes, pedestrian push buttons, etc.
ITEM NUMBER: -7 Ci
City Council Meeting
December 12, 2017
Page 2 of 2
However, maintenance costs cannot be easily anticipated, as they relate to the repair or
replacement of items found to be worn, faulty, or damaged. Staff had originally anticipated a
monthly cost of $4,456.25 to cover the costs. Unfortunately, this was under budgeted and needs
to be increased.
STAFF RECOMMENDATION
It is recommended that Council take the following actions:
Increase the annual contractual amount for St. Francis Electric by $73,050, for a total
amount of $180,000, which would include a 5% contingency.
2. Increase the budgeted amount for traffic signal maintenance for FY 2017-18 by $30,000
for a total budget amount of $180,000.
FISCAL IMPACT
The additional costs will be funded by the unfunded reserves account.
STRATEGIC PLAN IMPACT — None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared By:
Submitted By:
Pat Pia enior Management Analyst Michelle G. Ramirez, ' e for of Public Works