Item 316/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 8/11/2026
Subject: Authorization for the issuance of purchase orders with Econolite Control Products (Cost: $100,000 peryear) and JTB Supply Company, Inc. (Cost: $150,000 peryear) for traffic control operations for Fiscal Year 2026-27 through Fiscal Year 2030-31. (Action Item)
OBJECTIVE
For City Council to authorize issuance of purchase orders to Econolite Control Products (Econolite) in the amount of $100,000 annually for five -years, for a combined $500,000 , and JTB Supply Company, Inc. (JTB Supply) in the amount of $150,000 annually for fi ve years, for a combined $750,000 for the purchase of traffic control products.
BACKGROUND
In accordance with the City’s purchasing policy, a formal bid process is required for the procurement of materials, supplies and equipment exceeding $25,000, including purchases on as-needed basis. As the sole source provider for the City’s traffic signal control system, Econolite is exempt from the formal bidding process pursuant to Garden Grove Municipal Code 2.50.060(C). Similarly, the Public Works Department has determined that it is in the best interest of the City to dispense with the formal bidding for JTB Supply , pursuant to Garden Grove Municipal Code 2.50.060 (G) as JTB Supply has demonstrated wide product availability, proven responsiven ess, and geogr aphic convenience – all factors critical for routine and emergency traffic signal operations.
DISCUSSION
The City exclusively uses Econolite controllers for its traffic signal system. These controllers are essential devices housed at every signalized intersection to regulate the timing and coordination of vehicular and pedestrian traffic signals. Econolite controllers have consistently demonstrated reliability and effectiveness in maintaining safe and efficient traffic flow.
JTB Supply offers a broad inventory of traffic signal hardware from 17 different manufacturers and consistently provides competitive pricing. Their ability to rapidly fulfill urgent requests Item 316/2026
and their close proximity, located in the City of Orange, allows City of Garden Grove’s traffic signal electricians to retrieve emergency orders within the same day.
FINANCIAL IMPACT
The annual contract amounts are $100,000 with Econolite Control Products and $150,000 with JTB Supply Company, Inc. for the purchase of traffic control produc ts. Both contracts have a five-year term. Funding for Fiscal Year 2026-27 is included in the adopted operating budget for the Public Works Engineering Division. Funding for subsequent fiscal years will be incorporated into the Department's annual operating budget through the biennial budget development process.
RECOMMENDATION
It is recommended that the City Council:
• Approve to dispense with bidding pursuant to Garden Grove Municipal Code
2.50.060(C) and (G) and proceed with purchase orders with Econolite Control Products and JTB Supply Company, Inc.;
Authorize the Finance Director , or designee, to issue a purchase order to Econolite Control Products in the amount, not to exceed $100,000 per year for five (5) years, to purchase Econolite controllers; and
Authorize the Finance Director, or designee, to issue a purchase order to JTB Supply Company, Inc., in the amount, not to exceed $150,000 per year for five (5) years, to purchase traffic control products.
By: Valeria Orozco, Administrative Aide
ATTACHMENT(S)
1. Econolite Price List
2. JTB Supply Price List