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 Safeway Sign Company of Adelanto, California for one year, with four optional single year extensions in the amount of $216,691.60 per year, plus an annual 20% contingency for Producer Price Index (PPI) increases, for a not to exceed annual amount of $260,029.92 (Bid File No. 12600435) (Citywide).
Body
RECOMMENDATION
Staff recommends that City Council approve the award of a requirements contract in the amount of $216,691.60 (per year) plus an annual 20% contingency for PPI increases for one year, with four optional one-year extensions to Safeway Sign Company of Adelanto, 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. An annual not to exceed expenditure of $260,029.92.
EXECUTIVE SUMMARY
The Street Maintenance Division of Public Works uses a requirements contract for the purchase of traffic street name signs and reflective sheeting materials which are used by City crews for the installation and maintenance of traffic signs throughout the City. The prior contract term expired on January 3, 2026. On October 28, 2025, the bidding process was initiated to establish a new requirements contract. Two proposals were received, and Safeway Sign Company was the lowest, responsive and responsible bidder with a bid amount of $216,691.60. After evaluation, staff recommends the award of a one-year contract with four optional one-year extensions to Safeway Sign Company in an amount not to exceed $216,691.60 per year plus an annual 20% contingency and PPI increases. Funding for this contract is included in the FY2026 Department of Public Works operating budget. This is a requirements contract, and there is no obligation to purchase a minimum amount of material if budgets or scopes of work are adjusted.
BACKGROUND
The Street Maintenance Division of Public Works maintains approximately 70,000 traffic signs throughout Fresno. The Division 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 engineering safety enhancements. Once a traffic sign is damaged or loses its retro-reflectivity, it must be replaced promptly to minimize impacts on the public. The Street Maintenance Division currently employs twelve staff members dedicated to roadway striping, pavement markings, curb painting and traffic sign maintenance. In FY2025, staff replaced approximately 2,000 traffic signs through the retro-reflectivity inspection process, completed 196 work orders issued by the Traffic and Engineering Services Division, and addressed a monthly average of 15 work orders received though Fresgo requests. The traffic sign unit also responds immediately to re-stand or replace damaged or downed signs, which can pose hazards to the public, averaging 10-15 calls per week.
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. The prior contract expired on January 3, 2026, so the City must award a new contract to continue procuring these materials. On October 28, 2025, specifications for the requirements contract for Traffic Street Name Signs and Reflective Sheeting was advertised and downloaded by one building exchange with five prospective bidders. A public bid opening was held on November 18, 2025, with a total of two bid proposals received. Staff evaluated the bid proposals received, with the lowest, responsive and responsible bidder being Safeway Sign Company of Adelanto, California.
The City’s Attorney’s Office has reviewed the specifications of this requirements contract and approved as to form.
Funding for this contract is included in the FY2026 Department of Public Works budget and is funded with State Gas Tax.
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.
FISCAL IMPACT
No General Funds are budgeted for purchases in this contract. Appropriations are included in the FY2026 Department of Public Works budget and are funded through State Gas Tax.
Attachment:
Bid Evaluation and Fiscal Impact Statement