GUZMAN, SILVINO, JOSEFINA AND EFRAIN (2)

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FLE 2ES0L[JTI0N NG, 83® 78 �wp 11TEEtfENT WITH GRYIP JW CABLE ROR OVERHEAD .4I3 UNDERGROUND CABLE p3�h CRY P iMAGER I CLERK OF THE COYNOL G� I £: RECOW95NDED ACTION That the City Council adopt a resolution authorizing an exemption to the bidding process, and 2) adopt and execute an agreement with Group W Cable, !no., for overhead and underground cable installation services. EXECUTIVE U M hi wi wn c_=.jvh e the Computerized Traffic Signal System, the Transportation Eepar went is installing traffic signal interconnect cable wherever practical. This cable is intended to link most of the major traffic signals in the City with the central canputer system. In lieu of paying underground construction permit fees, Group W Cable has offered to offset the value of the permit fees against the value of the overhead and underground cable installation services that it would provide. The estimated value of the permit fees in question is $30,232. The estimated value of overhead and underground cable installation services to be provided is $27,682. If the value of the services provided by Group W Cable is less than the value of the permit fees, Group W Cable will pay the difference- If it is the contrary, the City will pay the difference. vpproval of this action would not in any way eliminate Group IMF Cable's responsibility toward applying and meeting the City's construction permit obligations. Refer to Exhibit A for a preliminary listing of propose.; traffic signal interconnect facility locations. The City would basically be paying for the cost of the materials and same minimal labor charges. Normally, the City would have installed the cable underground; however, because Group W Cable is installing over --ground and underground cable, r_.e City has elected to have its cable installed over -ground and undergrounh it is estimated that if the City were to 100 percent install the cable underground, that it would cost $300,000. Thus, the potential savings of this action, if approved, would be in the vicinity of $270,OOO. Ai�i offer of this nature codes very seldan. i � -`) --- cc; Z Immediate approval of this action is nondssary in view that Group W Cable has already commenced construction of the Santa Ana WTu System@ c delay of this action ;Mould reduce any potential savings that the City would receive, ALTERNATIVE Initiate a bid call for the installation of underground cable The estimated - project cost is $300,000.