Staff Report.St Francis Electric Contract Third Amendment
PREPARED BY: Gary Heap
Town Engineer
Reviewed by: Town Manager, Town Attorney, Finance Director, and Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/06/2023 ITEM NO: 6
DATE: May 12, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Third Amendment to the
Agreement for Services with St. Francis Electric, Inc. for Traffic Signal and
Streetlight Maintenance and Underground Service Alert Locating Services to
Include:
a. An Increase to the Contract Amount for Fiscal Year 2022/23 in the
Amount of $53,381, for a Fiscal Year Amount of $238,381 and a Total
Agreement Amount Not to Exceed $953,948; and
b. An Expenditure Budget Adjustment in the Amount of $53,381 from
Available Capital/Special Project Reserve.
RECOMMENDATION:
Authorize the Town Manager to execute a third amendment (Attachment 1) to the Agreement
for Services with St. Francis Electric, Inc. for traffic signal and streetlight maintenance and
underground service alert (USA) locating to include:
a. An increase to the contract amount for Fiscal Year (FY) 2022/23 in the amount of $53,381,
for a fiscal year amount of $238,381 and a total agreement amount not to exceed $953,948;
and
b. An expenditure budget adjustment in the amount of $53,381 from available Capital/Special
Project Reserve.
BACKGROUND:
The Town of Los Gatos utilizes contractual services for the routine maintenance of traffic signals
and streetlights, the repair of traffic signals and streetlights, and underground utility locating
services relating the electric services within the Town’s jurisdiction. Traffic signal and
streetlight contractual services include repairs on an as-needed basis, periodic inspections,
testing of the equipment, and lamp replacements. Underground utility locating services involve
PAGE 2 OF 3 SUBJECT: Authorize the Town Manager to Execute a Third Amendment to the Agreement for Services with St. Francis Electric, Inc. for Traffic Signal and Streetlight Maintenance and Underground Service Alert Locating Services DATE: May 12, 2023
BACKGROUND (continued):
responding to Underground Service Alert (USA) requests to identify and mark the Town’s
underground infrastructure at construction sites prior to any digging operations.
Staff has determined that contractual services are the most cost-effective delivery method due
to technical expertise and specialty equipment required for this work.
On September 15, 2020, the Town Council authorized the execution of a five-year Agreement
for Services (FY 2020/21 through FY 2024/25) with St. Francis Electric, Inc. (Exhibit A) to provide
traffic signal and streetlight repair and maintenance and USA locating services for a total
agreement amount not to exceed $675,000 ($135,000 per year).
On August 3, 2021, the Town Council authorized a first amendment to the Agreement (Exhibit
A) for an increase of $8,567 for FY 2020/21 to cover the cost overage from a high number of
USA requests received for various development and Town capital improvement projects for a
total agreement amount not to exceed $683,567.
On March 15, 2022, the Town Council authorized a second amendment to the Agreement
(Exhibit A) for: a) an increase of $67,000 for FY 2021/22 to cover cost overages for routine and
response maintenance and USA requests; and b) an increase of $50,000 per year to the base
compensation of the agreement ($150,000 total) for remaining three fiscal years. This resulted
in a total agreement amount of $900,567.
DISCUSSION:
The service needs and resulting costs each fiscal year depend on the number of traffic signal
and streetlight repair and maintenance calls and USA requests. The budget for response repair
and maintenance services has been exhausted for this fiscal year, with pending invoices that
need to be paid. The Town encountered numerous traffic signal repair issues during this
current fiscal year due to the excessive winter storms and traffic crashes that damaged
equipment; more funds are needed to replace and maintain traffic signal cabinets, conduits,
wiring, and poles for the remainder of the fiscal year.
This third amendment is for an additional $53,381 for the response maintenance repairs
needed for the remainder of FY 2022/23 to continue the contract services by St. Francis Electric
without disruptions.
The table on the next page reflects the amendment amounts, increasing the total five-year
contract amount not to exceed $953,948.
PAGE 3 OF 3 SUBJECT: Authorize the Town Manager to Execute a Third Amendment to the Agreement for Services with St. Francis Electric, Inc. for Traffic Signal and Streetlight Maintenance and Underground Service Alert Locating Services DATE: May 12, 2023
DISCUSSION (continued):
Original Contract $ 675,000 -----
First Amendment $ 8,567 For FY20/21 Services
Second Amendment $ 67,000
$ 150,000
For FY 2021/22 Services
For FY 2022/23 to FY 2024/25 Base Services
Third Amendment
(Proposed) $ 53,381
For FY 2022/23 Services
Total $ 953,948 ----
CONCLUSION:
The Town Council’s authorization of the third contract amendment for the traffic signal and
streetlight repair services would allow St. Francis Electric to continue providing the contract
services in FY 2022/23.
COORDINATION:
This report was coordinated with the Finance Department.
FISCAL IMPACT:
The budget adjustment in the amount of $53,381 from Available Capital/Special Project
Reserve will allow for sufficient funds to be available in the FY 2022/23 Parks and Public Works
Engineering Program Operating Budget for the contract amendment.
ENVIRONMENTAL ASSESSMENT:
The actions associated with this item are not a project defined under CEQA, and no further
action is required.
Attachments:
1. Third Amendment to Agreement for Services with St. Francis Electric, Inc.
2. Exhibit A to Attachment 1 – 2nd Amendment, 1st Amendment, and Original Agreement