TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Director of Public Works
PREPARED BY: Andree’ Kinney, Management Analyst
SUBJECT: First Amendment to the Implementation Agreement Amendment
with Western Riverside Council of Governments for Streetlight
Operation and Maintenance
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RECOMMENDATION
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Approve the First Amendment to the Implementation Agreement between Western Riverside Council of Governments to implement maintenance and repair program for streetlights;
Approve Appendix 6 to the WRCOG new PSA with Yunex Traffic and WRCOG for the City to receive streetlight Operation and Maintenance services, in substantially the forms attached hereto; and
Authorize the City Manager to execute the First Amendment to the Implementation Plan and Appendix 6 to the WRCOG PSA Agreement subject to City Attorney’s final approval.
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PRIOR ACTION/VOTE
On March 7, 2017, the City Council adopted Resolution No. 17-3703, approving the Purchase and Sale Agreement, including the No-Fee Pole License Agreement, with Southern California Edison to acquire approximately 6,500 streetlights within the City limits (Vote: 5-0).
On December 19, 2017, the City Council adopted Resolution No. 17-3840, authorizing the execution of an equipment/purchase agreement with Banc of America Leasing & Capital LLC; and an Implementation Agreement between the Western Riverside Council of Governments and for the Maintenance and Repair Program for Streetlights (Vote: 5-0).
On April 3, 2018, the City Council adopted Resolution No. 18-3884, authorizing execution of the paying agent agreement and escrow account control agreement with Wilmington Trust, National Association Bank related to the Southern California Edison Purchase and Retrofit Project
(Vote: 5-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
The Western Riverside Council of Governments (WRCOG) Regional Streetlight Program currently provides services to the City of Murrieta (City), including streetlight operations and maintenance (O&M) services, project management, and as-needed technical assistance, for smart streetlight technologies, such as traffic sensors, and as-needed support for broadband initiatives or projects.
On May 10, 2017, the City entered into a Purchase and Sale Agreement (PSA) with Southern California Edison (SCE) to purchase eligible streetlights within the City’s jurisdiction from SCE. By February 2020, the City had purchased 6,450 streetlights from SCE that would be entered into the Regional Streetlight Program and included an additional seventeen historically City-owned and operated streetlights as well.
On March 27, 2018, WRCOG entered into an Amended & Restated Professional Services Agreement with Siemens Industry, Inc., Intelligent Traffic Systems, (Original Professional Service Agreement) to provide streetlight retrofit and O&M services (Service) which was subsequently amended. The City executed an Appendix to the PSA between WRCOG, Siemens, and the City to receive the Services.
On April 3, 2018, the City entered into an Implementation Agreement with WRCOG to implement the maintenance and repair program for the City’s streetlights as well as receive the Services provided by the Regional Streetlight Program. The City also entered into Appendix 7 to the WRCOG PSA in order to receive streetlight O&M services provided by Yunex Traffic, formerly Siemens, within the City’s jurisdiction.
On October 27, 2021, WRCOG consented to the transfer of the contract pertaining to Siemens' Intelligent Traffic Systems (ITS) business to Yunex Traffic due to the worldwide carve-out of the ITS business into a separate business entity under the new brand name Yunex Traffic. On February 2, 2022, the City of Murrieta consented to the transfer to Yunex Traffic.
On November 7, 2022, WRCOG and Yunex entered into a Second Amendment to the Amended & Restated PSA to extend the term of the contract to December 1, 2023. Subsequently, on December 6, 2022, the City entered into the Second Amendment to Appendix 7 to the WRCOG Amended & Restated PSA to extend the contract term with Yunex Traffic to December 1, 2023, which has expired.
On July 12, 2023, WRCOG released Request for Proposals Number 23-02, seeking a provider for streetlight O&M services for the agencies participating in the Regional Streetlight Program. On October 2, 2023, the WRCOG Executive Committee approved an award to Yunex Traffic and authorized a new PSA to provide streetlight O&M services to the member agencies in the Regional Streetlight Program.
The First Amendment to the Implementation Agreement will replace the original PSA with the new PSA between WRCOG and Yunex. All other terms of the Implementation Agreement will remain in effect. Appendix 6 of the new PSA defines the scope of work for Yunex and provides the applicable rates for services that Yunex will provide to the City. The PSA has an effective date of December 1, 2023, and has a three-year term with an optional two-year extension, not to exceed five-years.
FISCAL IMPACT
The City is responsible for all costs arising from the WRCOG PSA with Yunex Traffic for services provided within the City’s jurisdiction for an estimated amount of $901,711 over the estimated five-year term of the Agreement. This is subject to change based on the number of streetlights added to and/or removed from the Program and any additional work requested by the City.
The monthly street light maintenance costs for Fiscal Years 2023/24 and 2024/25 are budgeted in various funds, which include the General Fund, the Community Services Districts Zones, and Lighting and Landscape Districts. Supplemental costs associated with the repair/replacement of streetlight knockdowns are also budgeted in the biennial budget in the General Fund account 1106150-61960. The budget for subsequent years of the Agreement will be included in future biennial budgets.
ATTACHMENTS
1. First Amendment to the Implementation Agreement between the Western Riverside Council of Governments and the City of Murrieta
2. Appendix 6 to Western Riverside Council of Governments Professional Service Agreement with Yunex LLC
3. Original Implementation Agreement