REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Tom Herbel, Acting Director of Public Works
Subject:
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Approve and authorize execution of an Amendment to the existing Agreement with Siemens Mobility Inc. to provide a fee rate increase to certain hourly rates commensurate with the Consumer Price Index for the Citywide Streetlight Maintenance services through March 2021
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Statement of Issue:
The initial 3 year term of the City's agreement for streetlight maintenance services with Siemens Mobility Inc. (Siemens) includes a provision for up to 2, 1-year contract extensions with mutual agreement by both parties. Siemens has indicated that in order to extend their maintenance services, they request an increase to certain components of their standard maintenance rates. Siemens bases their requested increase on data from the previous 3 years of Consumer Price Index (CPI).
Financial Impact:
The recommended action would result in an additional expenditure of approximately $15,500 through the end of the 1 year extension (11 months). The rate increase can be accommodated within the Public Works Department's current budget for street light maintenance services through the end of FY2019/20 and the additional funds will be reflected in the proposed FY2020/21 budget in General Fund business unit 10085304. The total authorized expenditures under the existing contract are sufficient and do not require amendment.
Recommended Action:
recommendation
Authorize the Mayor and City Clerk to execute "Amendment to Service Agreement Between the City of Huntington Beach and Siemens Mobility Inc., for Streetlight Transfer, Retrofit, and Maintenance Service" approved as to form by the City Attorney, dated March 6, 2017, increasing Compensation for all standard maintenance and extraordinary maintenance tasks identified in Exhibit B by 9%, which reflects partial Consumer Price Index...
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