Agenda Item
City Council
Item #: 3.13. 3/8/2022 File #: 22-0123
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Second Amendment to Agreement with Iteris, Inc. for Traffic Engineering Services for Tustin Avenue/Rose Drive Corridor Regional Traffic Signal Synchronization Program Project.
2. SUMMARY
The Second Amendment authorizes Iteris, Inc. to provide additional traffic engineering services needed to comply with and implement the requirements of Tustin Avenue/Rose Drive Corridor, a Renewed Measure M2 Regional Traffic Signal Synchronization Program Project.
3. RECOMMENDED ACTION
Approve the second amendment to agreement with Iteris, Inc. for Traffic Engineering Services in an additional amount of $872,430; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this amendment is $872,430 and will be funded in Tustin Street Signal Synchronization (20425) through:
TSIP Citywide (287) $113,480
Reimbursable Capital Project (550)
Street Light/Signal Install-Tustin 697,944
Other Capital Outlay- Tustin St Sig (Other Agencies) 61,006 Reimbursement from Renewed Measure M2 (697,944)
Reimbursement from Partner Agencies (61,006)
Total: $113,480
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
6. DISCUSSION AND BACKGROUND
Original Agreement and First Amendment
In September 2021, the City entered into an agreement with Iteris, Inc. (Iteris) to provide traffic engineering services to help City staff implement and deliver the Tustin Avenue/Rose Drive Corridor Regional Traffic Synchronization Program Project (Project). The Project is led by Orange, comprised City of Orange Printed on 3/3/2022Page 1 of 3
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Item #: 3.13. 3/8/2022 File #: 22-0123
Regional Traffic Synchronization Program Project (Project). The Project is led by Orange, comprised of six cities along the corridor, and funded primarily with Orange County Transportation Authority (OCTA) Measure M2 dollars. A First Amendment was executed in February 2022, reflecting minor additions to the scope of work. Said Amendment did not require increasing the original contract amount, as the cost of the added scope was well within the original contract contingency.
Second Amendment
This type of project (traffic signal synchronization and equipment upgrades) is categorically different from traditional public works construction since it disproportionally involves procurement and field integration of “plugand play”equipment. Because much of the necessary equipment has extremely long lead times and their procurement lies on the critical path for project delivery, many municipal agencies that lead similar projects often employ hybrid project delivery methods, including “design- build” or “advance procurement,” to minimize project delays. For more competitive pricing, staff recommends the latter in this particular case. Doing so will better enable the City to meet its project delivery obligations to OCTA and respect time constraints on project funding.
Advance procurement will significantly reduce time for construction mobilization and prevent extensive delays related to existing supply-chain shortages and long lead times for materials.
Moreover, this approach will eliminate the potential of contractor markups on materials and equipment, which can be as high as 20%. And, because all of the traffic signal equipment identified for advance procurement is single-sourced and a majority of that equipment is sole-sourced, there is no expected benefit to bid out this equipment with the project’sfuture construction work. The advance procurement approach for this project was discussed with and approved by the City Attorney’soffice; and requires a Second Amendment to the contract. All traffic signal equipment identified in the Second Amendment will be ordered by Iteris in accordance with the City’spurchasing requirements; and either installed by the respective manufacturers or the eventual construction contractor, depending on the nature of the work.
Also included in the Second Amendment is the implementation of Automated Traffic Signal Performance Measures (ATSPMs) for City of Orange intersections along the Project corridor. As identified in the Project’s original application to OCTA, the City intends to use ATSPMs to continuously collect data at its intersections to proactively identify and correct deficiencies in signal timing. Previous Traffic Signal Synchronization Program projects (TSSP) within the City have implemented ATSPMs using Iteris’SPM Service. Most recently, Iteris’SPM Service, selected for its user-friendliness and unique features, was installed at City intersections along Main Street and Katella Avenue. To maintain consistency with previous deployments throughout the City, Iteris’SPM Services will be implemented at 19 intersections along Tustin Street in Orange for a period of three years as part of this Project. Iteris’cost proposal for SPM Service falls within Project’sestimates for ATSPMs.
The original contract amount was not-to-exceed $1,183,975.10. The Second Amendment would increase the contract amount by $872,430, totaling not-to-exceed $2,056,405.10. Per the funding guidelines for this TSSP project, 80% of the Project cost is funded by OCTA Measure M2 dollars, with the remaining 20% being shared by the six participating cities. All applicable funds have already been appropriated.
7. ATTACHMENTS
· Second Amendment
City of Orange Printed on 3/3/2022Page 2 of 3
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Item #: 3.13. 3/8/2022 File #: 22-0123
· Iteris Estimate
City of Orange Printed on 3/3/2022Page 3 of 3
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