AgdaPkt 2011-08-22 - Laserfiche WebLink

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6.1. B. - Page 1 RE PO RT To the Honorable Mayor and City Council From the City Manager August 22, 2011 SUBJECT Amendment Number One to the Electrical Maintenance Service Agreement with Cal- West Lighting and Signal Maintenance, Inc. RECOMMENDATION Approve by Motion the Amendment Number One to the Agreement for an increase of $70,000 to the Electrical Maintenance Service Agreement with Cal-West Lighting and Signal Maintenance, Inc. BACKGROUND On December 3, 2010 the City issued a Request for Proposal (RFP) for Electrical Maintenance Services. Three proposals were received by the deadline of December 22, 2010 and Cal-West submitted a proposal which had the lowest prices for each of the bid items contained in the RFP. On February 22, 2011, the City entered into a one-year Agreement with Cal-West Lighting and Traffic Signal Maintenance, Inc. in the amount of $100,000.00. The City Council also approved authorizing the City Manager to enter into two (2) consecutive one-year extensions, based upon a satisfactory review of the work performed by Cal-West. It has now become evident that the $100,000 will not be sufficient to provide for all of the work that needs to be done during the one year period. An additional $70,000 will be needed to provide for expenses which will be incurred during the remainder of the term of the contract. Staff erred in developing the original dollar amount which would be necessary to cover the costs of maintaining the electrical facilities, including responding to emergency call outs and other unanticipated, uncontrollable expenses, which occur over the course of a year. One reason that additional funding is necessary is due to the high number of utility locating calls handled by Cal-West in response to Underground Service Alert (USA) requests. Utility owners, such as the City of Redwood City, PG&E, cable TV, are required by law to locate and mark their underground utilities when requested to do so by contractors or other persons. Additionally, once a USA request is issued, agencies have a 48-hour window (two working days) in which to complete utility locating and markings prior to the start of any excavation work. The number of USA requests varies significantly throughout the year as contractors begin projects near electrical facilities such as underground street light, traffic signal and communication conduits. To date, Cal-West has responded to 684 USA locate requests between February, 2011 and June, 2011. Staff anticipates there will be approximately 1,500 USA requests over the course of a year. Although the firm's per unit price of $40.00 is the lowest of those