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SR 06-26-2018 3L City Council Report City Council Meeting: June 26, 2018 Agenda Item: 3.L 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Street & Fleet Services Subject: Award Bid for Traffic Signs and Supplies Recommended Action Staff recommends that the City Council: 1. Award Bid #4312 to Safeway Sign Company, Safety Network Traffic Signs, Inc., and Maneri Sign Co., Inc., all California-based companies, for the purchase and delivery of traffic signs and supplies; 2. Authorize the Purchasing Services Manager to issue a purchase order with Safeway Signs Company for the purchase and delivery of traffic signs and supplies in the amount not to exceed $85,000 for one year, with four additional one-year renewal options and a price increase of 10% annually. 3. Authorize the Purchasing Services Manager to issue a purchase order with Safety Network Traffic Signs, Inc. for the purchase and delivery of traffic signs and supplies in the amount not to exceed $15,000 for one year, with four additional one-year renewal options and a price increase of 7% annually. 4. Authorize the Purchasing Services Manager to issue a purchase order with Maneri Sign Company, Inc. for the purchase and delivery of traffic signs and supplies in the amount not to exceed $50,000 for one year, with four additional one-year renewal options and a price increase of 5% annually. Executive Summary The City uses regulatory, warning, directional, and special street signs for traffic control, parking, and wayfinding. The Street and Fleet Services Division is responsible for inspecting and maintaining these signs. Staff anticipates that sign replacements over the next five years will increase as staff carries out its comprehensive maintenance program to ensure that all signs comply with Federal Highway Administration (FHWA) requirements. Staff recommends awarding purchase orders to Safety Network Traffic Signs, Inc., Safeway Sign Company, and Maneri Sign Co., Inc. for signs and supplies for a total amount not to exceed $881,476 over a five-year period. Background 2 of 4 On June 15, 2016, the City awarded bid #52015-OG to Safeway Sign Company and Hi- Way Safety to supply and deliver traffic signs and related supplies for a two-year period ending June 30, 2018. This was an informal bid with a total amount not to exceed $175,000 and did not require Council approval. Discussion Staff maintains approximately 30,000 street signs citywide. Regulatory, warning and street name signs must meet the minimum retro-reflectivity levels established by the Federal Highway Administration (FHWA). The Street and Fleet Services Division has implemented a comprehensive maintenance program which involves measuring the sign retro-reflectivity, assessing for physical damage, and recording the geographical location of the sign. Similar to the annual sidewalk inspection program, the City has been split into ten maintenance zones, which will be inspected once every seven years following the initial assessment. Two of 10 zones were inspected in FY 2017-18. Signs which fail retro-reflectivity, are damaged, or that do not meet current sign specifications will be flagged for replacement in the division work order system. Expenditures for sign purchases are expected to increase over the next several years as signs are replaced. These purchase orders would also be used for new sign installations requested by the City’s Traffic Engineering and Mobility divisions. Vendor Selection On March 14, 2018, the City published Notices Inviting Bids to furnish and deliver traffic signs and related supplies in accordance with City specifications. The bid was posted on the City’s online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Twenty-five vendors downloaded the bid. The following seven bids were received and publicly opened on March 29, 2018. Kaso John Enterprises $78,441.28 A Cone Zone, Inc. $57,409.40 Myers & Sons Hi-Way Safety, Inc. $39,150.72 Statewide Traffic Safety and Signs, Inc. $31,787.75 Maneri Sign Co., Inc. $31,349.20 3 of 4 Safety Network Traffic Signs, Inc $24,157.23 Safeway Sign Company $23,240.50 Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Safeway Sign Company, Safety Network Traffic Signs, Inc., and Maneri Sign Co., Inc. provided the lowest bid pricing for heavily purchased sign types. Both Safeway Sign Company, and Maneri Sign Co., Inc. have previously provided signs to the City and have demonstrated the ability to deliver a high quality product within the specified delivery timeframe. While Safeway Network Traffic Signs, Inc. is a new vendor, their prices were also competitive, and three references affirmed their ability to deliver a quality product within the desired delivery timeframe. Based on these criteria, Safety Network Traffic Signs, Inc., Safeway Sign Company, and Maneri Sign Co., Inc., the lowest bidders, are recommended as the best bidders. Maneri Sign Company offers the best price for no parking signs, which are used heavily throughout the city. Safeway would be the primary vendor as they offer the best pricing on most of the commonly used signs. Safety Network would be a backup provider of signs as their prices are very consistent with Safeway and, in some cases, are less expensive. Financial Impacts and Budget Actions The purchase orders to be awarded to Safety Network Traffic Signs, Inc., Safeway Sign Company, and Maneri Sign Co., Inc. are for an amount not to exceed $881,476. Funds of $120,000 are available in the proposed FY 2018-19 budget in the Public Works Department and $30,000 in the Planning and Community Development Department. The purchase orders will be split across the three vendors and charged to the following accounts: 014213.544010/01500014.525080 $120,000 01416.588110/01700007.575080 $ 30,000 TOTAL $150,000 4 of 4 Renewal amounts for each vendor is based on renewal options offered in bid submittal. Future year funding is contingent on Council budget approval. Prepared By: Kori Jones, Administrative Analyst Approved Forwarded to Council Attachments: A. Safety Network Traffic Signs, Inc. Oaks Form B. Safeway Sign Company Oaks Form C. Maneri Sign Company Oaks Form