Agenda #: 5.8
Meeting Date: June 6, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: PROCUREMENT OF RESIDENTIAL STREET NAME SIGNS FOR AREAS 4-7.
STRATEGIC
GOAL: Safe, Sustainable & Healthy Community
RECOMMENDATION:
Approve, and authorize the City Manager to issue a Purchase Order in the amount of $102,866.56 to Athaco Inc. to manufacture residential street name signs and to supply the associated mounting hardware, plus a contingency amount of $10,286.66, for a total authorization of $113,153.21.
FINANCIAL IMPACT:
Procurement of 702 residential street name signs and associated mounting hardware for Phase 2 is estimated to cost $102,866.56. A contingency amount of $10,286.66 (10%) for change orders to be approved by the City Manager, for a total purchase order authorization of $113,153.22 is proposed. Adequate funding is available in Fiscal Year 2022/23 Public Works Operating Budget.
BACKGROUND:
On April 4, 2022, the Public Works Department released a Request for Bids (RFB) for the manufacture of residential street name signs and associated mounting hardware for Phase 1 (Areas 1-3), through the City’s online bidding platform (PlanetBids).
Staff determined that Athaco, Inc. (dba “Main Street Signs”) was the lowest responsible bidder. The City Council approved Athaco, Inc. to manufacture 680 street name signs and associated mounting hardware for Phase 1 at its June 7, 2022 meeting.
Athaco, Inc. has manufactured the street name signs that feature the updated design with the City’s current streetscape theme and palette, including the replacement of the City Seal with the windmill logo, a white Highway Gothic typeface, over a standard
green background, onto a custom-shaped sign.
All of the Phase 1 signs are anticipated to be delivered by June 30, 2023. Public Works staff are actively installing new signs within the neighborhoods as they pass a quality control inspection.
The Phase 2 (Areas 4-7) work of the citywide residential street name sign replacement project is the same overall scope of work as the first one, only differed by the total quantities of signs and hardware being procured (Attachment 2).
ANALYSIS:
The City has negotiated with Athaco, Inc. to secure unit prices for the Phase 2 work.
The vendor agreed to maintain their current unit pricing from the Phase 1 procurement.
The negotiated purchase prices are consistent with the vendor’s April 2022 bid proposal unit prices plus a 9.5% sales tax rate, as shown in Attachment 1. The final purchase price for all residential street name signs and associated mounting hardware for Areas 4-7 is estimated at $102,866.56.
Based on the current market conditions, this option is competitive and potentially costsaving because of the guaranteed unit prices. The alternative option to solicit new bids could result in excessive cost increases for the same work. Importantly, this vendor has manufactured the custom street name signs that already conform to the latest design template and meet the City’s standards and expectations.
As an extension of the current Phase 1 procurement process, this recommendation to procure additional signs and hardware from Athaco, Inc. for Phase 2 complies with the City’s Purchasing Policy and DBMC Section 3.24.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.8.a Athaco Inc. Letter & Pricing Sheet
2. 5.8.b City Street Areas Map