REPORT TO THE CITY COUNCIL
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: BRIAN E. RUSSELL, Assistant Director
Public Works Department, Streets, Landscape, and Graffiti Divisions
CARLA GONZALEZ, Management Analyst II
Public Works Department, Streets, Landscape, and Graffiti Divisions
SUBJECT
Title
Approve the award of a requirements contract for the purchase of Traffic Street Name Signs and Reflective Sheeting to Safety Network Traffic Signs, Inc. of Fresno, California for one year, with five optional one-year extensions in an amount not to exceed $199,813.77, plus an annual 20% contingency and PPI increases (Bid File No. 12500293) (Citywide).
Body
RECOMMENDATION
Staff recommends that the City Council approve the award of a requirements contract in an amount not to exceed $199,813.77 plus an annual 20% contingency and PPI increases for one year with five optional one-year extensions to Safety Network Traffic Signs, Inc. of Fresno, California, as the lowest responsive and responsible bidder for the purchase of Traffic Street Name Signs and Reflective Sheeting, and to authorize the Public Works Director or designee to sign the contract on the City’s behalf.
EXECUTIVE SUMMARY
The Street Maintenance Division of Public Works uses a requirements contract to purchase traffic street name signs and reflective sheeting materials to be used by City crews for the maintenance and installation of traffic signs throughout the City. The prior contract term has expired, and materials are currently being purchased through a purchase order. On September 3, 2024, the bidding process was initiated to establish a new requirements contract. Three proposals were received, and Safety Network Traffic Signs, Inc., was the lowest responsive and responsible bidder with a bid amount of $199,813.77. After evaluation, staff recommends the award of a one-year contract with five optional one-year extensions to Safety Network Traffic Signs, Inc. in an amount not to exceed $199,813.77 plus an annual 20% contingency and PPI increases. Funding for this contract is included in the Public Works Department’s FY2025 budget.
BACKGROUND
The City of Fresno Public Works Department maintains approximately 70,000 traffic signs throughout Fresno. The Street Maintenance Division of Public Works uses traffic signs and reflective sheeting materials for the maintenance and installation of traffic signs throughout the City in accordance with the California Manual on Uniform Traffic Control Devices (MUTCD).
Traffic signs often require replacement due to fading, vandalism, weathering, or as a result of engineering safety enhancements. Once a traffic sign is damaged or loses its retro reflectivity, it must be replaced as soon as possible to minimize impacts to the public. The Street Maintenance Division currently has a staff of twelve dedicated to traffic sign maintenance. In FY2024, staff replaced approximately 2,500 traffic signs through the Retro Reflectivity Program and completed 238 work orders issued by the Traffic Engineering Division with half of the requests being for new traffic sign installations. The traffic sign unit also responds immediately to re-stand or to replace damaged or down signs as these can pose a hazard to the public. There is an average of three requests on a single weekday and up to five requests on a weekend for the damaged or down signs.
The execution of a requirements contract establishes a firm price, secured through competitive bidding, for a specified time and allows the City to make material purchases as needed. On September 3, 2024, specifications for the Traffic Street Name Signs and Reflective Sheeting requirements contract were advertised and downloaded by seven building exchanges and sixteen prospective bidders. A public bid opening was held on October 1, 2024, with a total of three bid proposals received.
The previous contract for traffic sign materials was awarded to Safety Network Traffic Signs, Inc. through the informal procurement process. City staff is satisfied with the materials supplied by this contractor and remains confident that Safety Network Traffic Signs, Inc. will continue to provide the City with high quality materials. The current bid reflects a 59% increase from the previously awarded contract. This is due to an industry wide increase in raw materials associated with the production of aluminum as well as an increase in the quantity of materials for City crews to continue the maintenance and installation of traffic signs throughout the City of Fresno.
The City’s Attorney’s Office has reviewed the specifications for this requirements contract and approved as to form.
Funding for this contract is included in the FY2025 budget through State Gas Tax. Since this is a requirements contract, there is no obligation to purchase a minimum amount of material if budgets or scopes of work are adjusted.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference was not implemented because the award of this contract utilizes state funding. However, Safety Network Traffic Signs, Inc., is a local business as defined by the Fresno Municipal Code.
FISCAL IMPACT
No General Funds are budgeted for purchases in this contract. Appropriations in the FY2025 budget are funded through State Gas Tax.
Attachment:
Bid Evaluation and Fiscal Impact Statement