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Home My WebLink About1996-01-08 96-80 ORDERCOUNCIL ACTION Date: 1-8-96 Item No90-80 Item/Rubject: ORDER, Directing the City Manager Not to Privatize the Maintenance of the City's Fire Alarm, Traffic Signal, and Street Light Systeme Rasponaible Department: City Manager commentary: The City issued requests for proposals in November for the maintenance of the City's Fire Alarm, Traffic Signal, and Street Light systems. No responses were received to our requests for fire alarm maintenance and traffic signal maintenance. Potential bidders were enn acted regarding the reasons for their decision not to submit proposal. The comments which were made are Summarized on the attached memorandun from the Purchasing Agent. Several proposals were received for Street Light Maintenance. The lowest cost proposal was free S/L Construction of Augusta in the amount of 572,000. This is within $2,500 of the City's estimated annual costs of 595,379. Staff recommended that this proposal not be accepted due to the potential additional costa associated with extra work since much of this extra work is already included in the City's cost figure. in addition, staff and cost reductions within the Electrical Division cannot be accomplished sufficient to offset the costs of this program as long as the City remains responsible for the other work of the Division such as traffic signal and fire alarm maintenance. At its last meeting, the Finance Committee reviewed these proposed areae for privatization and also recommended we not proceed. Manager's Comments: t riTY nm Nd. Associated Information: Purchasing Agent's memo, letter from nInstitute, bid tabulation for street light maintenance NANre Legal Approval: t T —zntroduced For _Zpassage _ First R6adin9 Pagaof Referral m Assigned eo Camda Poppet Jenuary 8, 1196 CITY OF BANGOR (TITLE.) Mrbert ... _._. hirecting the.. city. manager. Not toprivatize the Maintenance of the City's Fire Alarm, Traffic Signal, and Street Light Systema avow City CoueoS of ON city "a"Ver., ORDERED, THAT the City Manager not proceed with the potential privatization of the City's Fire Alarm, Traffic Signal, and Street Light Maintenance. 1 IN.CITY Wll1996 .. 80 dasszd B, 1996- _ R D O ADE R Passed- _ Titl • Directing the City Manager Not CITY CLERPi- to Privatize the Maintenance of the - - City's P1re Traffic glgml. and - Street Light Systema. _ - _ .............. . .... �I....gip.............Auedgned LNµ✓^KN. to .... • �Cuuncilaao. 9 96-80 Memorandum To: Fimmce CommoseM bers From: David N. Pellegrino, PurclmsingAgent Dare: 1212911995 Subject: Pnvemom mofFire Alarm, Trafc5lgnalandSheetLight Maintenance Services Reamers for Proposals were issued in November for each of the maintenance hems noted above. Pre -proposal meetings were also held with prospective proposers to answer questions and clarify the City's requirements. All requests for changes in the RFP were discussed and agreed upon among the individuals spending the meetings. We received no response to our requests for fere almm maintenance and traffic signalmaintenance We did receive three proposals for street tight maintenance and a bid tabulation is attached. I have called a number of the companies solicited to determine wiry they did not respond to the fire alarm and track signal RFPs. Excerpts are as follows: Fin Adamn Maintenance RFP: • scot my normal scope of work • the condition of the system was questionable • being responsible for the conduits was too much of a gamble • since the City requested as somal lump arm amount it was an "opportunity to loose money" • the reponse time was too restrictive Traffic Shoal Maintenance RFP: • see attached letter firm Sorry Institute • Bangor Hydro a. the economics didnt work b. the liability exposure was too great c certification oftechtdcams would take throe years d. traffic signal maintenance is not our primary responsibility and in an emergency situation our priority would have to be electrical service. • A.D. Electric - SabatNs, Maine atheconditionsoftlml2FPweretoorestrictive b. the response time should be 24 hours not one how c, the system needs major maintenance (over 100 loops not working). d. there is no nceA to have IMSA certified technicians e. you have 10 restrict our liability exposure am 13 f if you went through the entire system and brought everything up to par,I would be interested. • Rearie Light Company- Cape Neddick, Maine a. response time impossible for us to meet b. most of our work is in southern Maine and it would not pay for us to locate an employee and abucket truck in Bangor. c. you would have to drop the certification and professional engineer requirement d. would have to extend the response time e. even with the above agreed upon l may not respond because you are too far away. The proposals for Street Light Maintenance were reviewed win U Barrett and Sim_Ring. The lowest cart proposal from &L Construction of Augusts($'/2,800.00) was within few thousand dollars of the City's carts of $75,374.00. We would recommend that this proposal not be accepted because: (1) The cost ofthe earn wodr as proposed by the low bidder cannot be fully quantified and much ofthese costs are already included in the City's program costs. (2) The employees who maintain our street lighting system are also the same employees who maintain our traffic signals, the alamr system, and perform other associated electrical work. The number of employees assigned to the electrical division cannot be reduced sufficiently to offset the wmraot street light maintenance costs while still performing these other duties. We do recognize that the throe ofelectdcal division employees could be better utilized, particularly on maintaining and upgrading our traffic signal system, if street light maintenance was contracted out. Untbrmnately, this would have the effect of increasing one costs bothfortlds year and for future budget years. (iiventheemphasisofthe Councuonwntrolling costs and the tax mte, we would not recommend that this be done a this dine. It could be looked at in the annual budge[ process when a decision could be made to contract this function out should we wish to focus the time and efforts of our employees in other more critical areas. M 12 T ly s1mRv ws3Tmrc... November 28, 1995 Mr, David Pellegrino, Purchasing Agent City ofBurger Purchasing Department City Hall, 73 Harlow Street Bangor, ME Mot Reference. Trappe Signal Operations and Maintenance, AFP Dear Mr. Pelleamum. We wish to thank the City ofBaogor through yew office for the time and effort it took to put together the referenced bid package. The Surry, Institute looked very hard at this project before deciding not to submit a bid. As noted at the pre-bid conference, we do not presently have the equipment or personnel necessary to do the contract work to both our satisfactions. While we had obtained the financial commitments and could have hired the certified and experienced personnel, we could not project aretum on imestment that would offset the serious liability exposure. As you know, Mame law Gmds liability for municipalities. Because a private contractors does not have this liability limit we would be subjected us to a different operational and maintenance standard than the City which would make our annual costs much higher than what the City is currently spending. Thank you for you consideration in this matter and please keep the Sorry Institute on the City ofBangor s bidders lin for Traffic and Transportation Engineering projects. Sincartaf/ y Michael A Waugh, P.E. '. President . P.O. Bon 113- Sorry M6ce0166a Ra1166v-3690 ' CITY OF BANGOR Page 1 of 1 BID TABULATION Bid Opening: October 11, 1995 PRIVATIZATION OF STREET LIGHT MAINTENANCE SRVS SO. Construcllon Au usta, Maine AA Electric Servioe Ben or Maine Bangor Hydro Ben or Maine ITEM DECRIPTION CITY. UNIT Unit Price Item Totai Unit Ptice Item Total UnitItem Price Total 1. Vear i 2. Vear2 3. Year3 4. Houd Ratea Bullet TNticG eremrB Hel r Master El llen oume aan an Electrician i 1 1 Annual Annual Annual hr hr Or 72600.00 12500.00 72500.00 53.00 35.00 30.00 72,800.00 72 WO.Oo 72,500.00 8960000 91400.00 93300.00 45.00 2900 29.011 a9,60o.00 91,400.0011 9330000 Alternatn e his 10='"d 113119andlmnsfer . 0 nerahl to SHE. Ind des; Maintenance &paws Electrical UOIiTroGc 8 Electrician 5. Materials 8 So Instant. u ercenta a hr 47.00 10% 29.00 25% 6. Installation Cost Retrofit P rem 365 as 55.0021,1]5.00 45.00 17325.00 TOTAL AMOUNT BID cost for ysntr one_y_rojL L93,9]500 108925.00 588091.00