That the City Council:
A.  Approve and authorize the City Manager to enter into a five-year agreement with Yunex LLC for an amount not-to-exceed $500,000 for Citywide Traffic Signal Maintenance Services, Fiscal Year 2022-2023 through Fiscal Year 2026-2027; and,

B.  Authorize staff to issue a purchase order to Yunex LLC in the amount of $100,000 for Fiscal Year 2022-2023.

Since 2010, Yunex LLC (formerly known as Siemens Mobility, Inc.) has demonstrated its qualifications, capabilities, and responsiveness through the services provided to the City of La Habra under an "on-call" contract for citywide traffic signal maintenance services. Yunex LLC is a worldwide technology company with business units in many sectors serving public agencies, including traffic and transportation, and is currently responsible to maintain more than 10,000 signalized intersections nationwide, including 4,000 signals owned by 115 public agencies in Southern California. Yunex LLC has a strong presence in Orange County as it currently provides traffic signal maintenance services to a number of nearby local cities, including Fullerton, Buena Park, Huntington Beach, Diamond Bar, and Redondo Beach.

The La Habra Municipal Code (LHMC), Section 4.20.070, allows the City to utilize cooperative governmental purchasing contracts or pricing for a given item or service which was established through another governmental agency’s successful bid process for that general or specific type of item or service, and which had been conducted on a negotiated or competitive basis.  In May 2022, the City of Redondo Beach completed a competitive procurement for traffic signal maintenance services similar to those now desired by the City of La Habra.  The City of Redondo Beach received the following four proposals:
 

The City of Redondo Beach's Evaluation Committee determined Yunex LLC to be the most experienced and knowledgeable vendor and recommended an award of contract to Yunex LLC.  On June 21, 2022, the City of Redondo Beach awarded a traffic signal maintenance services contract to Yunex LLC (Attachment 1) that would not exceed $154,234 per year, which included a 10% contingency.

The monthly routine maintenance costs associated with the City of Redondo Beach contract is $89 per intersection and $43 per flashing beacon.  There are fifty-four (54) intersections and forty-five (45) flashing beacons throughout the City of Redondo Beach.  The total monthly routine maintenance cost is $6,741 for the City of Redondo Beach.

By comparison, the monthly routine maintenance costs associated with the City of La Habra is $75 per intersection and $45 per flashing beacon.  There are thirty-five (35) intersections and six (6) flashing beacons throughout the City of La Habra.  The monthly routine maintenance cost is $2,895 for the City of La Habra.

In July 2022, La Habra staff negotiated proposed terms and pricing for a new contract with Yunex LLC. The proposed contract would be for a five-year term, from Fiscal Year 2022-2023 through Fiscal Year 2026-2027, with the option to extend the agreement on a year-to-year basis for five additional years thereafter. The proposed negotiated contract amount is $100,000 per year, which is consistent with the pricing levels Yunex LLC proposed in its RFP response to the City of Redondo Beach. The proposed contract amount will cover the monthly routine maintenance cost of $2,895, totaling $34,740 per year, with the remaining balance of $65,260 per year set aside for as needed emergency work or "extraordinary" maintenance services.

Under the terms of the proposed agreement with the City of La Habra, Yunex LLC will provide monthly, quarterly, semi-annual, and annual maintenance of thirty-five (35) traffic signals.  In addition, Yunex LLC will be required to provide stand-by staff, 24-hours per day, to respond to as-needed emergency services.  Furthermore, Yunex LLC is equipped with the resources to maintain and provide an extensive inventory of parts and equipment, ensuring the ability to complete timely repairs to the City's infrastructure in the event of signal failure. 

Staff recommends that the City Council approve and authorize the City Manager to execute an agreement (Attachment 2) with Yunex LLC to provide citywide traffic signal maintenance services in the amount of $500,000 for the next five years, and authorize staff to issue a purchase order in an amount not to exceed $100,000 for Fiscal Year 2022-2023.

Staff has projected an annual routine maintenance cost of approximately $34,740 for the upcoming fiscal year.  Additionally, "extraordinary" (non-routine) maintenance will be provided on either a fixed fee or a "time and material" basis.  Based on experience, staff estimates an annual "extraordinary" maintenance cost of approximately $65,260 for the upcoming fiscal year. Funding for Citywide traffic signal maintenance is included in the approved Traffic Management budget for Fiscal Year 2022-2023 and there are sufficient budgeted funds to issue a purchase order to Yunex LLC in the amount not to exceed $100,000 for routine and extraordinary maintenance services for FY 2022-2023; therefore, no additional funds are requested at this time.

RN 1.6 Regional Transportation System Improvements
RN 1,7 Street System Improvements
RN 1.8 Safe Street Design

GOAL 3
Objective F - Maintenance and upgrade the City's traffic signal system