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HomeMy WebLinkAbout12 TRAFFIC SIGN MAINT 03-20-06 AGENDA REPORT MEETING DATE: MARCH 20, 2006 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: APPROVAL OF CONTRACT FOR ANNUAL MAINTENANCE SERVICES FOR CITYWIDE TRAFFIC SIGNALS SUMMARY Approval of the contract for Annual Maintenance Services for Citywide Traffic Signals will enable Republic Electric to provide traffic signal maintenance services to the City on an annual basis. RECOMMENDATION It is recommended that the City Council approve the contract for Annual Maintenance Services for Citywide Traffic Signals, FY 2005-2006 through FY 2010-2011, with Republic Electric and authorize the Mayor and City Clerk to execute the contract documents on behalf of the City. FISCAL IMPACT Funds to maintain the City's traffic signal system are currently appropriated in the City's FY 2005-2006 Public Works Department/Engineering Division operating budget (Account No. 01-402-6215). Under the new contract, annual routine and extraordinary maintenance is estimated to cost $243,619. Based on traffic signal maintenance expenditures through February 2006, it is anticipated that sufficient funding will be available to pay for services under the new signal maintenance contract through the end of FY 2005/06 without a budget adjustment. BACKGROUND The current City contract with Computer Service Company (CSC) of Corona for citywide traffic signal maintenance services is a four-year contract. The contract expired in November 2004 and was extended by mutual agreement until a new contract and specifications could be prepared. A request for proposal (RFP) was sent to CSC, Econolite E-Team and Republic Electric, the three signal maintenance contractors presently providing services for many public agencies in the Southern California area. CSC did not formally respond to the RFP because it is reducing its staff levels due to a reduction in workload. The new contract has a five year term, renewable each year based upon performance and subject to approval of the City Engineer. The contract will begin upon the date of the Notice to Proceed and will continue through June 30, 2011. Approval of Contract for Annual Maintenance Services for Citywide Traffic Signals March 20, 2006 Page 2 DISCUSSION Traffic signal maintenance is a highly specialized, technical field. As such, there are very few companies providing these services. Since there can be substantial liability incurred by the City as a result of these maintenance services, the City practices extreme caution in selecting a firm to provide these services. In the RFP, contractors were informed that selection would be based on demonstrated competence, professional qualifications, prior experience and financial background. The following is a comparison of information received from each contractor as requested in the RFP: Republic Electric Econolite E-Team Years in Business 25 Years in Business 4 Number of Employees 150 Number of Employees 44 Financial Statement Yes Financial Statement No Subcontractors No Subcontractors Yes Although experience and other factors were considered in selecting a contractor, cost of services was also a factor. Maintenance of the City of Tustin's nine-nine (99) traffic signals and other lighted traffic control devices and street lights is separated into routine preventative maintenance and extraordinary maintenance. The following is a cost comparison between the two proposals: Republic Electric Econolite E-Team Routine Maintenance Extraordinary Maintenance $77,904 $165.715 $243,619 Routine Maintenance Extraordinary Maintenance $95,342 $287.498 $283,840 In contacting other agencies regarding performance of each contractor, favorable comments were received for both. However, based upon information provided in the proposals, including anticipated costs, staff recommends that the City Council approve a contract with Republic Electric to provide citywide traffic signal maintenance services for FY 2005-2006 through FY 2010-2011. Tim D. Serlet Director of Public Works/City Engineer Dana R. Kasdan Engineering Services Manager S:\City Councilltems\2006 CouncilltemslApproval of contract Traffic Slg Maint Svcs.doc