ADMINISTRATIVE REPORT
MEETING DATE: October 7, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: September 23, 2026
SUBJECT: Amendment No. 6 to Agreement No. 2022-029 with Safeway Sign Company (increase compensation by $45,000; revised not to exceed $610,112.42) to continue the supply of traffic signs.
RECOMMENDATION:
Staff recommends approval of the amendment.
BACKGROUND:
On February 23, 2022, the City Council approved the annual contract for the supply of traffic signs with Safeway Sign Company, in the amount of $199,992.42; renewable annually thereafter for four consecutive one-year periods.
This contract is primarily used by the Public Works Department’s General Services Division. Due to an unanticipated increase in usage of the contract, compensation needs to be increased to meet the demand for traffic signs.
Per the terms of the contract, amendments increasing the contract and/or extending the contract have been approved as follows:
• Amendment No. 1 approved February 2, 2023; increased compensation by $97,560 for a revised not-to-exceed amount of $297,552.42 and extended term by one year to February 22, 2024.
• Amendment No. 2 approved February 14, 2024; increased compensation by $97,560 for a revised not-to-exceed amount of $395,112.42 and extended term by one year to February 22, 2025.
• Amendment No. 3 approved February 12, 2025; increased compensation by $20,000 for a revised not-to-exceed amount of $415,112.42 and extended term by one year to February 22, 2026.
• Amendment No. 4 approved February 11, 2026; increased compensation by $50,000 for a revised not-to-exceed amount of $465,112.42 and extended term by one year to February 22, 2027.
• Amendment No. 5 approved March 25, 2026; increased compensation by $100,000 for a revised not-to-exceed amount of $565,112.42.
If approved, Amendment No. 6 will increase compensation by $45,000 for a revised not to exceed amount of $610,112.42 to allow the continuance of supplying traffic signs to the term date of February 22, 2027.
FISCAL IMPACT:
The Department has budgeted in Fiscal Year 2026-27 funding within the General Fund for these services and this contract as part of the normal operations of the Department.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
Amendment No. 6 to Agreement No. 2022-029