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Page 3 of 4 <br />proposed 4% increase each subsequent year to account for anticipated increases in labor, materials, and <br />maintenance costs. Lockworks has consistently met the high standard of service that the City requires for <br />almost two decades and has demonstrated its commitment to maintaining the longstanding relationship <br />by extending pricing terms that are fair and reasonable based on the City’s needs. However, the City <br />reserves the right to terminate the agreement with 30-day written notice at any time during the <br />agreement term should it determine the pricing structure is no longer in the City’s best interest. <br />Staff recommends determining that, due to the nature of the support services, competitive bidding is not <br />likely to serve the best interests of the City or result in the lowest price and approving and authorizing the <br />City Manager to execute an agreement for services through December 31, 2029, with Lockworks <br />Unlimited, Inc. in an amount not to exceed $711,592. <br />FISCAL IMPACT <br />This agreement will span multiple fiscal years. Staff will allocate funds from the PWS operating budget <br />based on the adopted budgets for each fiscal year on an as-needed basis. <br />ENVIRONMENTAL REVIEW <br />This project meets the CEQA exemption criteria as set forth in CEQA Guidelines Section 15301 (Class 1- <br />Existing Facilities) in that it involves the maintenance of existing City facilities with negligible or no <br />expansion of use. <br />PUBLIC NOTICE <br />Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 <br />hours prior to the meeting. <br />ALTERNATIVES <br />The City Council may choose not to award the agreement as recommended and direct staff to pursue an <br />alternative method to providing services. <br />ATTACHMENTS <br />Attachment A – Agreement for Services with Lockworks Unlimited, Inc. <br />6.K. - Page 3 of 18 <br />200