TO:
VIA:
CITY COUNCIL
CITY ADMINISTRATOR
Placentia City Council
AGENDA REPORT
FROM: DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES & INFRASTRUCTURE DATE: JUNE 20, 2023
SUBJECT: AWARD OF CONTRACT TO BEAR ELECTRICAL SOLUTIONS, INC. FOR
TRAFFIC SIGNAL MAINTENANCE SERVICES
FISCAL
IMPACT: EXPENSE: $ 510,000 TOTAL COST FOR SERVICES (3 -Year) BUDGETED: $ 170,000 FISCAL YEAR 2023-24 OPERATING BUDGET (103590-6099)
$ 170,000 FISCAL YEAR 2024-25 OPERATING BUDGET
$ 170,000 ESTIMATED FOR FISCAL YEAR 2025-26
OPERATING BUDGET
SUMMARY:
In July 2018, the City Council awarded a Maintenance Services Agreement to Bear Electrical Solutions, Inc. ("Bear") for traffic signal maintenance and repair services. The agreement is for a three-year term with the option to extend the term for one (1) additional two-year term. In April 2021, the City approved the extension of an additional two-year contract term with Bear, and increased the contract not -to -exceed amount to $340,000 ($170,000 per year) and approved contract change order authority for the City Administrator up to $34,000.
Since 2018, Bear Electric has demonstrated its qualifications, capabilities, and responsiveness through the services provided to the City of Placentia for citywide traffic signal maintenance services. The current maintenance service contract with Bear is set to expire on June 30, 2023, and Staff is proposing to enter a new Maintenance Services Agreement with Bear utilizing the unit pricing Bear proposed in its RFP response to the City of Tustin. The City of Tustin solicited bids for a new traffic signal maintenance contract with an identical work scope and bid schedule used by Placentia. The pricing received by Tustin is competitive and similar to how much the City currently pays for the same service. As such, staff recommends utilizing the piggybacking provision of the City's purchasing policy. Under the City's contract piggyback provision, the proposed contract will be for a three-year term, from Fiscal Year 2023-2024 through Fiscal Year 2025-2026, with the option to extend the agreement for one (1) additional two-year term RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve a Professional Services Agreement with Bear Electrical Solutions, Inc. for Traffic Signal Maintenance Services in an amount not -to -exceed $170,000 per year for an initial three (3) year contract term, with the option to extend for one (1) additional two (2) year term; and
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June 20, 2023
City Council Agenda
June 20, 2023
2. Authorize the City Administrator to approve contract change orders up to ten percent (10%) of the annual contract not -to -exceed amount; and
3. Authorize the City Administrator to approve the eligible contract term extension for one (1) additional two (2) year term based upon contractor performance and at the discretion of the City; and
4. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
DISCUSSION:
In July 2018, the City Council awarded a Maintenance Services Agreement to Bear Electrical Solutions, Inc. ("Bear") for traffic signal maintenance and repair services. Amendment No. 1 and No. 2 were administratively approved in July 2019 and March 2021, respectively, to provide for additional spending cap authority to cover a series of additional extraordinary repair work orders completed by the City's contractor over the initial three (3) years. In April 2021, the City approved the extension of an additional two-year contract term with Bear and increased the contract not -to - exceed amount to $340,000 ($170,000 per year) and approved contract change order authority for the City Administrator up to $34,000.
Bear has demonstrated its qualifications, capabilities, and responsiveness through the services provided to the City of Placentia for citywide traffic signal maintenance services. Bear is currently servicing multi-year signal and streetlight maintenance contracts for over 65 agencies representing over 3,500 signalized intersections and 60,000 streetlights. Bear has a strong presence in Orange County as it currently provides traffic signal maintenance services to a number of nearby local cities, including Tustin, Laguna Niguel, San Juan Capistrano, Cerritos, Aliso Viejo, and Mission Viejo.
The Placentia Municipal Code, Section 3.08.070, allows the City to purchase from a supplier who has been awarded a contract resulting from a formal competitive bid process by another governmental agency within the state or by the federal government. The City of Tustin solicited bids for a new traffic signal maintenance contract with an identical work scope and bid schedule used by Placentia. The pricing received by Tustin is competitive and similar to the amount the City currently pays for the same service. On June 2, 2022, the City of Tustin completed a competitive procurement for traffic signal maintenance services and received the following three proposals for routine preventative maintenance monthly costs:
Firms Amount
Bear Electrical Solutions $8,300.00/month
Crosstown Electrical and Data Inc. $8,749.00/month
Yunex Traffic USA $11,047.00/month
City Council Agenda
June 20, 2023
On July 1, 2022, the City of Tustin awarded a traffic signal maintenance services contract to Bear Electrical Solutions, Inc. in the not -to -exceed amount of $99,600 per year for routine preventative maintenance services.
The monthly routine maintenance costs associated with the City of Tustin contract is $55 per intersection. There are one hundred thirty three (133) intersections in the City of Tustin. The current monthly routine maintenance costs associated with the City of Placentia is $50 per intersection. There are sixty-one (61) intersections throughout the City including three (3) quiet zone intersections. In addition to the base bid schedule for preventative maintenance, the extraordinary repair rate associated with the City of Tustin contract is $130 per hour. By comparison, the current extraordinary repair rate associated with the City of Placentia is $118 per intersection. As such, labor rate escalation proposed by Bear Electrical is found to be reasonable comparing to the unit price listed in the current contract.
Since 2018, Bear Electric has been responsive to every maintenance request in a timely manner and made proper and efficient repairs during the current traffic signal maintenance services contract. Furthermore, Bear's technicians have extensive knowledge about the traffic signal system in Placentia, and the company is equipped with the resources to maintain and provide an extensive inventory of parts and equipment, ensuring the ability to complete timely repairs to the City's infrastructure in the event of signal failure. Staff recommends utilizing the piggybacking provision of the City's purchasing policy and enter a new Maintenance Services Agreement with Bear based on the pricing levels Bear proposed in its RFP response to the City of Tustin in 2022.
The proposed contract would be for a three-year term, from Fiscal Year 2023-2024 through Fiscal Year 2025-2026, with the option to extend the agreement for one (1) additional two-year term.
Under the terms of the proposed agreement, the contract scope of work for these services provides for monthly, quarterly, bi-annual and annual preventative maintenance services to maintain traffic signal equipment, intersection safety lights, flashing beacons and speed feedback signs. The scope of work also provides for extraordinary repairs as well as 24-hour emergency response.
FISCAL IMPACT:
The agreement with Bear is for an annual not -to -exceed amount of $170,000. The term of the agreement is three (3) years for a cumulative three (3) year not -to -exceed contract amount of $510,000, with the option to extend for one (1) additional two (2) year term based upon contractor performance and at the discretion of the City.
Prepared by:
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Kyra Tao
Transportation Manager
Reviewed and approved by:
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Jennifer Lampman
Director of Finance
City Council Agenda
June 20, 2023
Reviewed and approved by:
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Luis Estevez
Deputy City Administrator
Reviewed and approved by:
Da ien R. Arrula
City Administrator
Attachments:
1. Professional Services Agreement with Bear Electrical Solutions, Inc.
2. Tustin's Traffic Signals Maintenance Service Agreement