Loading...
HomeMy WebLinkAboutE-8 Staff Report - Yunex Contract PO IncreaseCONSENT ITEM E-8 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ROBERT DELGADILLO, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER DATE: MARCH 18, 2024 SUBJECT: APPROVAL OF INCREASE TO BLANKET PURCHASE ORDER FOR TRAFFIC SIGNAL MAINTENANCE SERVICES BACKGROUND: In April of 2023, City Council awarded a traffic signal maintenance services agreement to Yunex LLC. This was based on an open, competitive bid which included a base routine maintenance contract amount as well as on-call rate for emergency and repair services as needed. Currently the blanket purchase order for traffic signal maintenance services is set to $100,000. Due to an unforeseen increase in collisions there have been costly repairs performed. Staff is recommending the blanket purchase order be increased in an amount not to exceed $200,000. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Approve an increase to the Yunex blanket purchase order in an amount not-to-exceed $200,000. ANALYSIS: Yunex LLC was awarded a traffic signal maintenance services agreement in April of 2023 through the processes of an open, competitive bid. When initially establishing the contract purchase order, the city added a lower amount to the preventive service amount in order to allow ourselves time to experience a few months of the service/maintenance call amounts. This fiscal year the city has experienced augmented costs due to an increase in major traffic collisions. The damages have included traffic signal poles and traffic signal control cabinets which have been expensive to replace and repair. Emergency labor for the traffic collision repairs have also affected the repair costs. Approved City Council March 18, 2024 Yunex Blanket Purchase Order Increase March 18, 2024 Page 2 To ensure that invoices are processed in a timely manner, staff is requesting that the annual blanket purchase order be increased from $100,000 to $200,000. FISCAL IMPACT: Funds for the recommended action is included in the FY 2023-24 approved budget under account 12-55- 661-000-6493 to cover the cost of routine traffic signal maintenance and additional service calls. Prepared by: Reviewed by: Natalie Reagan Robert Delgadillo, P.E. Management Analyst Director of Public Works/City Engineer Reviewed and Approved by: Sergio Gonzalez City Manager