City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 14, 2023 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: INCREASE PURCHASE ORDER NO. 230016 WITH 3M COMPANY OF ST. PAUL, MINNESOTA, IN THE AMOUNT OF $35,000 FOR THE PURCHASE OF VINYL MATERIALS USED IN THE FABRICATION AND INSTALLATION OF SIGNS BY CITY CREWS FOR A REVISED PURCHASE ORDER AMOUNT OF $84,000 ISSUE:
Authorize an increase of Purchase Order No. 230016 with 3M Company of St. Paul, Minnesota, in the amount of $35,000 for the purchase of vinyl materials used in the fabrication and installation of signs by City crews for a revised purchase order amount of $84,000.
RECOMMENDATIONS:
That the City Council authorize an increase of Purchase Order No. 230016 with 3M Company of St. Paul, Minnesota, in the amount of $35,000 for the purchase of materials used in the fabrication and installation of City signs for a revised purchase order amount of $84,000.
BACKGROUND:
The Public Works Department is responsible for the daily maintenance of all regulatory, warning, and directional signage along the approximately 872 miles of surface streets throughout the City of Riverside. The City’s street maintenance services are delivered through two principal methods – Capital Improvement Projects and by Public Works Street Maintenance Division crews.
City crews are responsible for ensuring sign fabrication and installation are in accordance with the Manual on Uniform Traffic Control Devices (MUTCD) for Streets and Highways issued by the Federal Highway Administration of the United States Department of Transportation and revised by the State of California Department of Transportation to specify the standards by which traffic signs, road surface markings, and signals are designed, installed, and used.
In fiscal year FY 2021/22, staff fabricated and installed over 4,100 signs. During the first six months of FY 2022/23, crews fabricated and installed over 5,100 signs, a 25% increase over the prior year. Traffic engineering projects consumed a large portion of the vinyl inventory and aluminum sign materials required to fabricate signs. Further, the Sign Shop supports requests from other departments and divisions including Riverside Public Utilities, Parks, Recreation and Community Services Department, and Public Works Parking Services Division which has led to a further reduction in inventory. It is expected that the increase to this purchase order will be sufficient for the Street Maintenance Sign Shop to maintain a proper inventory of regulatory, warning, and directional signs necessary to complete the requests for the remainder of FY 2022/23.
DISCUSSION:
Purchase Order No. 230016 was issued for $49,000 on July 1, 2022 for use for FY 2022/23. An increase in sign projects require the City to increase Purchase Order No. 230016. At the time the Purchase Order was issued, Purchasing Resolution 23812 was in effect, section 602(h) of Resolution 23812 was used for the procurement. Section 602(h) allowed for an exception to competitive procurement process and stated, “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required in the following circumstances: …(h) When Goods can be Procured from a Bidder who offers the same or better price, terms and conditions as the Bidder previously offered as the Lowest Responsive Bidder under Competitive Procurement conducted by the City or another public agency, provided that, in the opinion of the Manager, it is in the best interests of the City to do so”.
The 3M Company informed the City that we could take advantage of the County of El Dorado Bid #21-289-002 that the County had awarded to 3M for the purchase of sign fabrication materials with pricing valid through December 21, 2023. The additional increase to Purchase Order No. 230016 is necessary to replenish existing vinyl inventory used daily in the fabrication of regulatory, warning and directional signage throughout the 872 miles of surface streets within the City of Riverside.
The Public Works Department is requesting approval for an increase of $35,000 to Purchase Order No. 230016, for a revised total annual expenditure authority of $84,000 for vinyl signage materials. Purchasing Resolution 23914 replaced Resolution 23812 on October 18, 2022. Purchasing Resolution 23914 also allows for an exception to competitive procurement of goods in Section 602(h) with the same verbiage as the previous Purchasing Resolution.
Section 1104 of Purchasing Resolution 23914 allows for change orders for the purposes of “adding and/or deleting quantity of items being procured”. The resolution specifies that “Unless otherwise specifically authorized by the Awarding Entity” a “Change Order which causes the contract price to exceed $50,000, if the Contract and/or Purchase Order was not previously approved by the Awarding Entity” requires Awarding Entity approval.
The Purchasing Manager concurs that the recommendation to approve the increase is in compliance with Purchasing Resolution 23914.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 6 – Infrastructure, Mobility & Connectivity and Goal 6.2 – Maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with the five Cross-Cutting Threads as follows:
Community Trust – The City uses a high-quality retroreflective vinyl material when fabricating regulatory, warning and directional signs throughout the City.
Equity – The Public Works Department fabricates regulatory, warning, and directional signage installed throughout the City of Riverside.
Fiscal Responsibility – Taking advantage of the County of El Dorado Bid #21-289-002 for the purchase of sign fabrication materials from the 3M Company enables the City of Riverside to access fixed rates through December 21, 2023.
Innovation – The City of Riverside is unique among many municipalities in that we have the ability to quickly fabricate all types of regulatory, warning, and directional signage.
Sustainability and Resiliency – The ability to control the fabrication of signs provides the quick ability to adopt changes ensuring regulatory requirements are followed. Furthermore, the use of high-quality materials promotes resilience of our infrastructure.
FISCAL IMPACT:
The total fiscal impact is $35,000. The total revised amount for vinyl materials used in the fabrication of City signs is $84,000. Funds are budgeted and available in the General Fund, Public Works-Streets-Maintenance-Signing Supplies account 4110100-424143 to cover this additional cost.
Prepared by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer
Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
3M Company – Vinyl Signage Materials ● Page 2