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HomeMy WebLinkAboutH- 5 Amendment & Increase to PUblic Works Dept. a� 1r 40 AZUSA' CONSENT CALENDAR TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: NASSER ABBASZADEH, CITY ENGINEER VIA: RICK COLE, CITY MANAGER /ekia DATE: FEBRUARY 19, 2002 SUBJECT: AMENDMENT AND INCREASE TO THE PUBLIC WORKS DEPARTMENT PROJECT TO FUND INCREASES IN PURCHASE ORDERS WITH SIGNAL MAINTENANCE INC. PEEK AND LOS ANGELES COUNTY DEPARTMENT OF PUBLIC WORKS RECOMMENDATION It is recommended City Council approve an increase of $30,000 in blanket Purchase Order number 210676 with Signal Maintenance, Inc./Peek and an increase of $10,000 in PO number 210886 with Los Angeles County Department of Public Works. It is further recommended City Council approve an amendment to the 2002 Operating Budget for the Public Works Department recognizing $40,000 in funding from collections revenue to fund these increases. BACKGROUND Purchase order number 210676 is issued to the City's traffic signal service contractor, Signal Maintenance Inc/Peek, to maintain City owned traffic signals, while Purchase order number 210886 is issued to LA County Department of Public Works to maintain joint traffic signals between the City and County. Both purchase orders cover routine as well as extraordinary (accidents and knock downs) maintenance. After each accident, the City typically recoups its costs associated with a knock down. However, there usually is a time lag between the initial response to an accident and eventual reimbursement by the insurance company of the at-fault driver. In the meantime, accidents drain the existing balances in blanket purchase order accounts to the point that we are not able to pay the vendors. Increases in both purchase orders are required for us to reimburse our contractors. FISCAL IMPACT This action will amend the 2002 Operating Budget by increasing revenues and expenditures by $40,000 to fund the increases in the purchase orders within the Public Works Department budget.