DATE: MAY 13, 2025
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR BY: ADRIANA ROBLES, PE, CFM, CITY ENGINEER JONATHAN HERNANDEZ, JUNIOR ENGINEER TITLE: REJECTION OF BIDS FOR THE ON-CALL SERVICES FOR TRAFFIC CONTROL DEVICES RECOMMENDED MOTION:
A motion to approve a resolution rejecting bids received for the On-Call Services for Traffic Control Devices.
EXECUTIVE SUMMARY:
On March 18, 2025, the City issued a notice to bidders for the On-Call Services for Traffic Control Devices. On April 8, 2025, the City opened bids and received one (1) bid for a total amount of $94,624.90. The Engineer’s estimate for this project was $70,118.20. Based on the low number of bids received and the significantly high unit prices of the bid received, City staff recommends the rejection of the bid.
BACKGROUND:
On October 22, 2019, City Council approved Resolution No. 21722 (Attachment 1) entering into a contract agreement with Chrisp Company for the On-Call Services for Traffic Control Devices. This on-call included work items specific to traffic control devices, most notably: installation and/or removal of roadside signs, installation and/or removal of pavement striping and markings, installation and/ or removal of curb markings, installation and/or removal of speed cushions in the public right-of-way, installation of rectangular rapid flashing beacons, and installation of radar feedback signs. The scope of services was limited to only traffic control devices to appeal to smaller contractors who specialize in this type of work. Under this contract, the City was able to deliver individual work orders on an on-call basis, most of the work orders issued pertained to the restriping of city streets and the installation of new traffic signs. The contract was for three (3) years and was extended to an additional two (2) years per mutual consent. On October 22, 2024, the contract agreement with Chrisp Company for the On-Call Services for Traffic Control Devices expired and the City issued a solicitation for bids for a new On-Call Services for Traffic Control Devices contract. On April 8, 2025, the City opened bids with the following results:
Contractor
Work Description
Subtotal
Unit Pricing Bid
Chrisp Company
Traffic Striping, Curb and Pavement Markings
$1,039.90
Signs and Markers
$53,585.00
Speed Cushions
$40,00.00
Bid Total: $94,624.90
The only bidder for the On-Call Services for Traffic Control Devices was Chrisp Company, with a total bid shown above.
The bid assumes one unit for each line item. Therefore, the bid total is a sum of all line items, assuming one unit for each. Comparing the Engineer’s estimate with the bid received, there are significant differences in the unit prices for many of the line items, many up to 400% higher. Staff also compared the unit prices with the previous On-Call Services for Traffic Control Devices contract with Chrisp Company in 2019 and found significant increases in unit prices for the same line items. For example, some unit prices increased from $9.50 to $56.00, resulting in a 489% increase. This cost increase greatly exceeds the CPI inflation, which would have increased the unit price to $11.88.
Based on the provisions of the Project Specifications, “The City further reserves the right to award or reject the Base Bid or any item(s) within, depending on available funding.” Due to the significantly high unit prices of the bid received, and the limited funds appropriated to the restriping CIP 9081, a significantly reduced amount of city streets would be restriped on an annual basis. City aims to go out to bid for restriping as a project basis as CIP funds become available every fiscal year. The amount of restriping work that can be performed is limited by the available CIP budgets, therefore, there is a need to prioritize projects. Staff will compile a list of potential restriping projects and will make priority recommendations based on traffic volumes, collisions, service requests, and severity of existing conditions. Once a prioritization list is put together, staff will present the list to the Traffic and Transportation Commission for recommendation to City Council.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
This project addresses the current City’s Council’s goals of “Infrastructure and Environmental Sustainability” and “Effective and Culturally Responsive Government”.
DEPARTMENTAL COORDINATION:
The Public Works Department is collaborating with Legal, Administration and Finance Departments.
FISCAL AND SUSTAINABILITY IMPACT:
Rejecting the bid has no direct fiscal impact.
Fund
Appropriation
Appropriation
Name
Total Appropriation
Amount for Recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
ATTACHMENTS:
Attachment 1: Resolution No. 21722
Attachment 2: Resolution
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