City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 9, 2025
Report #:2502-4118
TITLE
Approval of a Professional Services Contract Number C25192686 with Statewide Traffic Safety and Signs, Inc. in an Amount Not-to-Exceed of $2,125,000 for On-Call Traffic Control Services for Utilities a Period of Five (5) Years; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Contract C25192686 (Attachment A) with Statewide Traffic Safety and Signs, Inc. for on-call traffic control services for a term of five years and a total not-to-exceed amount of $2,125,000.
BACKGROUND
The City of Palo Alto Utilities (CPAU) Department provides and maintains the infrastructure for water, natural gas, wastewater, electricity, and fiber optics. The Water, Gas, Wastewater Operations and Electric, Fiber Operations are collectively responsible for maintaining the infrastructure of all 5 municipal provided utilities and responding to utility related emergencies.
The Water Gas Wastewater Engineering and Electric Fiber Engineering divisions coordinate and manage capital improvement projects throughout the City to improve the City’s infrastructure.
Below is a table of the approximate number of miles of infrastructure that the City owns:
Table 1: City Owned Infrastructure
Type of Utility Number of Miles
Electric* 195
Fiber Optic* 73.43
Gas Mains 210.5
Water Mains 231
Wastewater Mains 216
*These values only capture underground distribution lines/cable. This excludes the number of miles of overhead cable that CPAU maintains.
CPAU’s previous contract for on-call traffic control services was a 3-year term for a total not-to- exceed amount of $255.000 and an annual not-to-exceed amount of $85,000. CPAU spent the annual total-not-to-exceed amount of $85,000 in the first two years of the contract for traffic control services to support electric, water, gas, and wastewater collection capital improvement projects (CIP). In June 2024, a contract amendment was approved to add an additional $200,000 to support the electric grid modernization and fiber-to-the-premises pilot projects which resulted in a new not-to-exceed amount of $455,000 for the same 3-year term. Due to supply chain issues of wooden utility poles, CPAU replaced a smaller number of poles than anticipated. As of May 2025, there is approximately $200,000 remaining in the contract which will be reappropriated to the new contract.
The current contract is scheduled to end on June 30, 2025.
ANALYSIS
The City of Palo Alto’s Utility Department is seeking an on-call traffic control services contractor who will provide traffic control, traffic plans, and lend traffic control equipment upon request.
Utilities Operations Department installs, replaces, repairs, and maintains all the City’s infrastructure while also responding to utility emergencies 24/7. Most of this work is located in the public right-of-way which requires traffic control depending on the road layout, intersection/crossings, existing signage, road type, and traffic volume. Traffic control services are expected to support large capital investments including grid modernization, wood pole replacement, and Fiber-to-the-Premises projects. The selected service provider will set up, maintain, and tear down the traffic control equipment allowing crew members to focus on their project work and complete it more efficiently. The contract is sized to support all traffic control needs for the Utilities Department including all divisions such as Water, Gas, Wastewater Operations, Electric Operations, and Utilities Engineering.
Solicitation Process
A request for proposals (RFP) for the project was posted on OpenGov, the City’s eProcurement platform and 3,256 vendors were notified. The solicitation period was posted for 14 days and 3 proposals were received. The solicitation closed on November 6, 2024.
Table 2: Summary of Request for Proposal
Proposal Description On-Call Traffic Control Services
Proposed Length of Project 5 years
Number of Vendors Notified 3,256
Number of Proposal Packages Downloaded 15
Total Days to Respond to Proposal 14 days
Number of Proposals Received 3
Proposal Price Range $1,595,315 - $2,112,977
Public Link to Solicitation https://procurement.opengov.com/portal/pa lo-alto-ca/projects/124133
The proposals were evaluated by a panel and determined to be responsive to the criteria identified in the RFP. Statewide Traffic Safety and Signs, Inc. was selected by the panel because of the quality and effectiveness of their services, the experience of their field staff, prior record of performance with the City, and their ability to provide future services. Statewide Traffic Safety and Signs, Inc. had the highest score out of the three qualifying proposals. The panel did not select the lower bid proposals because of their lack in quality of their proposals and uncertainty in meeting the City’s scope of work for traffic control for on-call services. Statewide Traffic Safety and Signs, Inc.’s proposal conveyed that they have the experience and capabilities to provide professional traffic control plans and on-call traffic control services within the required response time.
Statewide Traffic Safety and Signs, Inc. is a licensed C-31 Construction Zone Traffic Control Contractor in California who has many years of municipal experience and ensures all staff are trained in the latest Manuel on Uniform Traffic Control Devices (MUTCD) and California Manual on Uniform Traffic Control Devices (CAMUTCD). When on-call services are needed they will be assigned on a Task Order basis. Individual Utilities project managers will be responsible for issuing the Task Order, evaluating the proposed scope of work, reviewing the experience and billing rates of the proposed staff and ensuring appropriately qualified staff are assigned to each task. This contract is on the City’s professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non-appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager.
FISCAL/RESOURCE IMPACT
Funding for the contract is available in the respective capital improvement program project budgets such as but not limited to Grid Modernization for Electrification (EL-24000), Wood Pole Replacement (EL-19004), and Fiber-to-the-Premises (FO-24000). Funding will be assigned based on construction work. Funding in subsequent years is subject to Council’s approval of each fiscal year’s budget appropriation. In comparison to the 2022 contract, the hourly rate has increased by approximately 15% from $217 to $250 per hour for two staff crew to setup traffic control for intersection, lane, or street closures.
STAKEHOLDER ENGAGEMENT
The RFP for the on-call traffic control contract was posted on OpenGov eProcurement platform and vendors were notified by the City. The solicitation period lasted 14 days and closed on November 6, 2024. The City received three proposals.
ENVIRONMENTAL REVIEW
Approval of this professional services agreement for on-call traffic control services does not meet the definition of a project under the California Environmental Quality Act (CEQA) pursuant to the California Public Resources Code Section 21065, because it can be seen with certainty that the services will not cause a direct physical change in the environment. The on-call traffic control services may be used to support the completion of work that would constitute a ”project” under CEQA; those projects will be subject to CEQA analysis.
ATTACHMENTS
Attachment A: Statewide Traffic Safety and Signs, Inc.; Contract C25192686 APPROVED BY:
Alan Kurotori, Director of Utilities