June 11, 2015
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
THROUGH: SCOTT W. KRAUTER, PE, Assistant Director
Public Works Department, Street Maintenance Division
BY: BRIAN E. RUSSELL, Manager
Public Works Department, Street Maintenance Division
SUBJECT
Title
Award a requirements contract to Safeway Sign Company of Adelanto, California in the amount of $625,465.21 for Traffic/Name Signs and reflective sheeting materials.
Body
RECOMMENDATION
Staff recommends that the City Council award a requirements contract in the amount of $625,465.21 to Safeway Sign Company of Adelanto, California for Traffic/Street Name Signs and Reflective Sheeting, and to authorize the Public Works Director or designee to sign the contract on behalf of the City.
EXECUTIVE SUMMARY
The Department of Public Works, Street Maintenance Division, routinely uses traffic and street name signs, as well as other sign materials for both new installation and for the replacement of damaged signs throughout the City. Purchases made will be at contract prices and are included in both the existing FY15 and proposed FY16 budgets.
BACKGROUND
The Department of Public Works, Street Maintenance Division, is seeking to renew a requirements contract for Traffic/Name Signs and reflective sheeting materials. The previous contract was with Safeway Sign Company and has expired. These materials are used on an ongoing basis by the Street Maintenance Division for new installation and replacement of damaged signs throughout the City. The execution of a requirements contract establishes a firm price secured through competitive bidding for a specified time; and, allows the City to make purchases as needed. Since this is a requirements contract, the quantities included in the bid are only estimates. The City is not obligated to purchase the quantities that are listed. Therefore, if budget allocations are less than the contract award amount, there is no obligation to purchase the fully awarded amount.
The Specifications were prepared, and a Notice Inviting Bids was published in the Business Journal on March 11, 2015. Specifications were distributed to twenty eight prospective bidders. Four sealed bid proposals were received from bidders and were opened in a public bid opening on March 31, 2015. Bid proposal prices ranged from $625,465.21 to $979,099.40. The bid submitted by Safeway Sign reflects a 3.6% decrease from the last contract. Safeway Sign Company was determined to be the lowest responsive and responsible bidder. The Bid Evaluation is included as an attachment to this staff report.
Council may award a contract to Safeway Sign Company. The contract will be in effect for one (1) year from the date of the Notice to Proceed with provisions for four (4) one-year extensions at the City's discretion.
The Council may reject all bids. If all bids are rejected, the City will be without a requirements contract for traffic/street name signs and reflective sheeting for approximately sixty days to allow for re-bidding.
ENVIRONMENTAL FINDINGS
A requirements contract for the purchase of reflective sheeting, traffic, and street name signs does not meet the definition of a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference was not implemented because of State Gas Tax funding.
FISCAL IMPACT
This is a requirements contract for material purchases for a period of one (1) year with four (4)-one year extensions. While there is no obligation to purchase the amount that the contract was awarded, the Street Maintenance operating budget allocates $178,000 of Gas Tax annually. In addition, other Divisions and Departments will purchase materials from this contract.
Attachment: Bid Evaluation