08.g. Agreement with Lee Wilson ElectricMEMORANDUM
TO: CITY COUNCIL
FROM: DOUG PERRIN, DIRECTOR OF RECREATION AND MAINTENANCE
SERVICES Df.
SUBJECT: CONSIDERA'I'ION OF FIRST AMENDMENT TO CONTRACTOR
SERVICES AGREEMENT WITH LEE WILSON ELECTRIC
DATE: JUNE 12,2012
RECOMMENDATION:
It is recommended that the City Council approve and authorize the City Manager to
execute an amendment extending the Contractor Services Agreement with Lee
Wilson Electric Company, Inc (Lee Wilson), for traffic signal maintenance.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Last year, the City of Arroyo Grande ("City") paid approximately $18,180 in expenses
related to traffic signal maintenance services and $27,836 in traffic signal repairs.
The proposed extension maintains the same rates and charges. The City currently
has $13,245 remaining in its budget for FY 2011-12 and has budgeted $45,200 for
FY 2012-1 3. Minimal staff time will be required to adrr~inister this contract.
BACKGROUND:
The City contracts for services to maintain fourteen (14) existing traffic signals. Signal
maintenance includes routine inspection of the equipment, including the signal
heads, lamps, inductor loops, pedestrian push buttons and cleaning of the signal
control cabinet.
At its April 13, 2010 meeting, the City Council approved a two (2) year agreement
with Lee Wilson Electric to provide traffic signal maintenance. That agreement
included the option of three (3) one (1) year options to renew. Lee Wilson Electric has
been performing this service for the last twenty-one (21) years and staff recommends
that a one year amended extending the agreement with Lee Wilson Electric be
approved based on their knowledge and experience with the City's traffic signal
system, past performance and timely emergency response. The amendment will
allow Lee Wilson to exercise the remaining two (2) one (1) year extensions without
further amendment to the Agreement.
Agenda Item 8.g.
Page 1
CITY COUNCIL
CONSIDERATION OF AN AMENDMENT TO CONTRACTOR SERVICES
AGREEMENT FOR LEE WILSON ELECTRIC FOR MAINTENANCE OF TRAFFIC
SIGNALS
JUNE 12,2012
PAGE 2
ANALYSIS OF ISSUES:
The previous Agreement commenced on May 1, 2010 and expired on April 30, 2012.
On May 8, 2012, the City received a letter from Lee Wilson Electric Company
(Attachment 2) indicating that they would like to extend the Agreement for one
additional year. The City proposes to amend the Agreement to clarify the mariner in
which Lee Wilson is to exercise the options to renew and confirm that any extensions
are subject to the same terms and conditions as the Agreement. Any future
extensions will not require any further Council approval. The City has the option of
terminating the Agreement at any time and for any reason upon ten (10) days prior
notice.
ALTERNATIVES:
The following alternatives are provided for the City Council's consideration:
1. Approve the attached amendment to the service agreement with Lee Wilson
Electric, Inc.;
2. Modify as appropriate and approve the amendment to the service agreement;
3. Do not approve the amendment to the service agreement and direct staff to
prepare an RFP to be distributed to selected contractors; or
4. Provide direction to staff.
ADVANTAGES:
The proposed amendment clarifies the manner in which the options to extend are
exercised and confirms that such extensions are subject to the same terms and
conditions as the Agreement. In addition, approval will allow for uninterrupted
maintenance of the City's fourteen (14) traffic signals.
DISADVANTAGES:
There are no disadvantages identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, June 7, 2012. The Agenda
and report were posted on the City's website on Friday, June 8, 2012. No public
comments were received.
Attachments:
1. First Amendment to Contractor Services Agreement
2. Letter from Lee Wilson
Agenda Item 8.g.
Page 2
FIRST AMENDMENT TO
CONTRACTOR SERVICES AGREEMENT
This FIRST AMENDMENT TO CONTRACTOR SERVICES AGREEMENT ("First
Amendment") is made and entered into this day of 2012, by and
between the CITY OF ARROYO GRANDE, a California Municipal Corporation ("City"),
and LEE WILSON ELECTRIC COMPANY, INC., a California Corporation with
("Contractor"). The City and Contractor are sometimes referred to herein as the
"Parties".
WHEREAS, on May 1, 201 0, the City and Contractor entered into a Contractor Services
Agreement (the "Agreement") wherein Contractor agreed to provide City with traffic
signal maintenance services subject to the terms and conditions set forth in the
Agreement. A true and correct copy of the Agreement is on file with the Administrative
Services Department and is incorporated herein by this reference as though set forth in
full; and
WHEREAS, the Agreement included three (3) one (1 ) year options to extend; and
WHEREAS, on May 8, 2012, the City received a request from Contractor to extend the
Agreement for one (1 ) additional year; and
WHEREAS, by this First Amendment, the parties wish to amend the Agreement to
incorporate the one (1) year extension requested by Contractor and allow Contractor to
exercise the remaining two (2) one (1) year extensions without further amendment to
the Agreement.
NOW THEREFORE, in consideration of the mutual covenants and conditions set forth
herein, the Parties agree as follows:
1. The above recitals are true and correct and are incorporated herein by this
reference.
2. The terms and conditions set forth in the Agreement are hereby revived subject
to the amendments set forth herein.
3. Section 1, entitled "TERM" shall be amended in its entirety as follows:
"This Agreement shall commence on May 1, 2010 and shall remain and continue
in effect until April 30, 2013, unless sooner terminated pursuant to the provisions
of this Agreement. This Agreement also allows two (2) one (1) year options to
extend. Contractor shall be able to exercise said options to extend by providing
City with written notice thereof no later than fifteen (15) days prior to the
Agenda Item 8.g.
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ATTACHMENT 1
expiration of the term of this Agreement. Unless otherwise agreed to by the
parties, each option to extend shall be subject to all terms and conditions hereof."
4. Except as modified herein, all other terms and conditions of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, this First Amendment has been duly executed as of the date
first set forth above.
CITY OF ARROYO GRANDE: LEE WILSON ELECTRIC COMPANY, INC.
By:
Steven Adams, City Manager Lee Wilson
President
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM:
Timothy J. Carmel, City Attorney
Agenda Item 8.g.
Page 4
'B =LEE WILSON= -
ELECTRIC COMPANY\ P.O. BOX 250 ARROYO GRANDE, CALIFORNIA 93421-0250
ESTABLISHED 1929 1151 EL CAMIN0 REAL PHONE (805) 489-4216 FAX (805) 489-0248
May 8,2012
City of Arroyo Grande
Administrative Services Department
214 E. Branch Street
Arroyo Grande, CA 93420
RE: Traffic Signal Maintenance Annual Contract
Gentlemen,
Lee Wilson Electric Company, Inc. would like to extendthe pricing on our contract
dated from May 1,2010 through April 30,2012 for one additional year.
Please contact our office if this is acceptable with the City of Arroyo Grande at
your earliest convenience.
Sincerely,
LEE WILSON ELECTRIC CO., INC.
By:
A CALlFORNlA CORPORATION STATE LICENSE #85 1738
Agenda Item 8.g.
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ATTACHMENT 2
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