TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: DIRECTOR OF PUBLIC WORKS

DATE: JUNE 3, 2003

SUBJECT: SIGNAL MAINTENANCE SERVICES FOR FY 2003-04, 04-05, 05-06

RECOMMENDATIONS

1. Award a contract for Signal Maintenance Services for Fiscal Years 2003 – 04, 2004 – 05, and 2005 –06 to Republic Electric, and authorize the Mayor and City Clerk to execute a contract.
2. Authorize the expenditure of up to $ 55,000 for signal maintenance services for FY 03 -04

BACKGROUND

The City of Rancho Palos Verdes utilizes contract services for signal maintenance services. A contract for these services was last advertised and awarded in 1997. In April of this year, a new contract was prepared and advertised. Bids were opened on May 9, 2003.

DISCUSSION

The results of the bid are as follows:

Contractor	Total Bid Amount
Republic Electric	$ 25,228
Peek Signal	$ 37,798

Some of the key provisions of this contract are as follows:

• The contract establishes fixed unit prices for an estimated scope of services.

• Unit prices are fixed for the first year, with an increase each July 1 thereafter, in accordance with the Producer Price Index.

• The term of the contract is three years, with an option for three one-year extensions.

• The City may terminate this contract at any time with a thirty day written notice.

• The bid document estimated a level of service, the actual bid amount reflects historic costs

The City of Rancho Palos Verdes does have some familiarity with Republic Electric in that they recently completed work on the project to upgrade the city’s signals, and they performed well. Staff believes that their good performance on that one time project is a good indicator as to how they will perform on a long-term maintenance contract. In addition, the person they have assigned to manage this contract is a former employee of the City’s current signal maintenance contract, and staff has been pleased with his performance.

Republic Electric is a national company with offices in California and the northeast. They have recently opened a southern California office and they are in the process of aggressively pursuing clients. The City of Lomita is currently the only nearby southern California community utilizing their services for signal maintenance, but that contract has only been in place for three months and staff from Lomita had little feedback. The cities of Highland California, and Grand Terrace California – both in San Bernardino County – currently utilize Republic Electric for signal maintenance services. Both communities are satisfied with their performance.

It is recommended that a three-year contract for signal maintenance be awarded to Republic Electric. This is based principally on the fact that Republic Electrics performed well on a project to upgrade the City’s signals, and that the person they have assigned to manage the project is someone staff is familiar with, and has confidence in.

CONCLUSION

Adopting the staff recommendations with result in the award of a three-year contract for signal maintenance services to Republic Electric.

ALTERNATIVE ACTION

Request staff to re-advertise this project to obtain additional bids. Staff does not believe that this would result in additional bids or lower prices.

FISCAL IMPACT

The authorized expenditure limit of $ 55,000 is included in the baseline FY 03 – 04 budget.

Respectfully Submitted,

Dean E. Allison

Director of Public Works

Reviewed,

Les Evans

City Manager

Attachment:

Contract