A2490.SR.MG
C
ITY OF SIMI VALLEY
MEMORANDUM
Oc
tober 7, 2024
T
O: City Council
F
ROM: Department of Public Works
S
UBJECT: AUTHORIZATION TO WAIVE THE BIDDING PROCESS PURSUANT TO
THE SIMI VALLEY MUNICIPAL CODE, AND AWARD A CONTRACT TO ECONOLITE CONTROL PRODUCTS, INC. FOR TRAFFIC SIGNAL
EQUIPMENT
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. W
aive the bidding process in accordance with Simi Valley Municipal Code (SVMC) section 2-9.201(e);
2. A
ward with a contract to Econolite Control Products, Inc. (page 4) for traffic signal equipment, CP60000017, in a form approved by the City Attorney, for an amount not- to-exceed $200,000, from October 7, 2024, to October 6, 2026, for a two- year term with an option to extend for three additional one-year terms;
3. Aut
horize the City Manager to execute any subsequent contract amendments as well as incorporate future budgeted funds into the contract amount for the three, one-year term extensions, if desirable; and
4. Take such additional, related, action that may be desirable.
BACKGROUND AND OVERVIEW
T
he City currently operates 121 traffic signals and the signal control infrastructure is aging and has recently experienced outages and delays in repairs due to several factors. The equipment is manufactured by Econolite Control Products, Inc. (“Econolite Products”) . While the City contracts with Econolite Systems, Inc. (“Econolite Systems”) to maintain its traffic signals – including a requirement that Econolite Systems supply equipment from Econolite Products as part of that maintenance agreement – the Public Works Department recommends that the City execute a contract with Econolite Products to ensure that the City maintains sufficient traffic signal control equipment on- hand to respond quickly to unforeseen or emergency circumstances w ith traffic signal repairs utilizing Econolite Products equipment.
AGENDA ITEM NO.
9A
A2490.SR.MG
While the Econolite Systems contract does ensure the system is maintained on a scheduled basis, waiting for equipment to be delivered from Econolite Products can and has result ed in inefficient vehicle traffic flow when traffic signals are not fully operational.
The Public Works Director recommends that the City Council execute an agreement with Econolite Products to purchase equipment that may be utilized by Econolite Systems to help ensure the efficient operations of the City’s traffic signals. Additionally, the City may purchase Econolite equipment that may be used for other traffic signal projects, such as equipment replacements or intersection upgrades performed under separate contracts and possibly other contractors.
FINDINGS AND ALTERNATIVES
Staff recommends t hat the City Council waive the bidding requirements under SVMC section 2- 9.201(e). Specifically, having compatible equipment with the City’s existing traffic signal infrastructure is essential to maintaining uniformity and timely operation of the equipment. In addition, purchasing directly from the manufacturer yields an average savings of 15% on equipment costs compared to purchasing through 3 rd party contracts.
There are 121 intersections in the City of Simi Valley controlled by City -owned traffic signals. These intersections are operated with traffic signal controllers manufactured by Econolite Products. The City chose Econolite Products for its traffic signals in 1984 which is when the City last utilized a competitive bid process for ongoing traffic signal equipment (the City contracted with Econolite Systems via a “piggy-back” agreement in 2021).
While many manufacturer s can provide signal display equipment such as traffic signal heads, poles , and mast arms , the City selected Econolite Products to provide control equipment (this consists of cabinets, controllers , and auxiliary equipment ) for its traffic signal infrastructure. Ensuring such equipment is easily accessible ensures vehicle traffic flows efficiently through intersections. Waiving the bidding requirements under the SVMC section 2-9.201(e) allows the City to contract directly with Econolite Products to utilize its equipment. Econolite Products provides traffic signal control equipment that is desirable for the following reasons:
• Demonstrated performance;
• Availability of replacement parts (Econolite Products has been in business for over 85 years);
• Availability of technical support services (Econolite Systems maintains the City’s traffic lights); and
• Compatibility with existing equipment for interconnection purposes.
The Public Works Department’s budget includes $200,000 for traffic signal equipment.
Similar amounts will be requested in future budgets.
2 A2490.SR.MG
The following alternatives are available to the City Council:
1. Waive the bidding process in accordance with Simi Valley Municipal Code ( SVMC) section 2-9.201(e);
2. Award a contract to Econolite Control Products, Inc. (page 4) for traffic signal equipment, in a form approved by the City Attorney, for an amount not-t o -exceed $200,000,
from October 7, 2024, to October 6, 2026, for a two-year term with an option to extend for three additional one-year terms;
3. Authorize the City Manager to execute any subsequent contract amendments as well as incorporate future budgeted funds into the contract amount for the three, one-y ear term
extensions, if desirable; or
4. Do not
award a contract at this time and provide staff with further direction.
St
aff recommends Alternatives No. 1, 2, and 3.
SUGGESTED CITY COUNCIL MOTION
I m
ove to waive the bidding requirements pursuant to the SVMC section 2-9.201 (e), and award a contract to Econolite Control Products, Inc. for the amount not-to-exceed amount of $200,000, from October 7, 2024, to October 6, 2026, for a two-year term with an option to extend for three additional one-year terms, and authorize the City Manager to approve any subsequent contract amendments and incorporate future budgeted funds into the contract amount for the three, one-year term extensions, as desirable.
SUMMARY
The C
ity’s traffic signal control infrastructure utilizes equipment manufactured by Econolite Control Products , Inc. Separately, the City’s traffic signals are maintained by Econolite Systems, Inc. To ensure timely delivery of equipment that is uniform with the City’s traffic signal infrastructure, it is recommended that the City Council award the attached contract to Econolite Control Products, Inc. for traffic signal control products in the amount of $200,000 from October 7, 2024, to October 6, 2026, and further authorize the City Manager to approve any subsequent contract amendments to incorporate future budgeted funds into the contract amount, and to extend the contract term. ______
______________________________
Ronald K. Fuchiwaki
Public Works Director
Pr
epared by: Dylan Gunning, Senior Management Analyst
INDEX Page
Contract .............................................................................................. 4 3 2-Contract.doc 10/2/24
AGREEMENT NO. 3250014
Services Agreement
CONTRACTOR: Econolite Control Products, Inc. DATE MAILED: 10/07/2024 Below you will find a checklist relating to Insurance and other requirements that are required for doing business with the Ci ty of Simi Valley. Only those items checked- off are MANDATORY, however if your standard policies exceed the minimum requirements please include. Commercial general liability insurance must meet or exceed the requirements of ISO -CGL Form No. CG 00 01 11 85 or 88, or equivalent. The amount of insurance set forth below will be a combined single limit per occurrence for bodily injury, personal injury, and property damage for the policy coverage. Liability policies will be endorsed to name the City, its officials, and employees as “additional insureds” under said insurance coverage and to state that such insurance will be deemed “primary” such that any other insurance that may be carried by the City will be excess thereto. Such insurance must be on an “occurrence,” not a “claims made,” basis and will not be cancelable or subject to reduction except upon thirty (30) days prior written notice to the City.
Comprehensive General Liability, including coverage for premises, products and completed operations, independent contractors, personal injury and contractual obligations with combined single limits of coverage of at least $2 ,000,000 per occurrence. Auto Liability, including owned, non-owned and hired vehicles with at least:
$500,000 per occurrence.
$1,000,000 per occurrence.
As required by State Statutes. A copy of your current policy must be submitted naming yourself and or your company. Workers’ Compensation Insurance: as required by State Statutes. (Not needed if Self -employed with no employees and CONTRACTOR signs statement to this effect.)
Errors & Omissions or Malpractice or Professional Liability: depending on type of contract/service. At least $5 00,000 per occurrence. Business License: The CONTRACTOR must have a current City of Simi Valley license on file at City Hall or purchase said license (at no cost to the City).
PLEASE NOTE: ALL APPLICABLE INFORMATION LISTED ABOVE MUST BE OBTAINED AND ON FILE, PRIOR TO THE ISSUANCE OF A CITY
PURCHASE ORDER BEING SENT TO YOU (VIA EMAIL OR HARD COPY) BY THE RISK MANAGER/PURCHASING AGENT, THUS AUTHORIZING COMMENCEMENT OF WORK FOR THE CITY.
Submitted by (complete all blanks): COLOR COPY REQUIRED BACK TO THE CITY Company Name:
Econolite Control Products, Inc.
By (Print name & title):
Corey Kelly, Senior Account Manager
Company Street Address:
1250 N Tustin Ave
Vendor’s Authorized Signature required:
City, State, Zip:
Anaheim. CA 92807
Date signed:
Phone:
714-630-3700
Agreement Date & Expiration Date:
October 7, 2024 through October 6, 2026, with an option to extend for three (3) additional one-year terms.
Services Rendered:
Purchase of Traffic Control Products
Agreement Amount
$200,000
Originator/Department Contact: Justin Link_____________________ Date initiated:
Department Head Review: City Manager Approval :
Return the original fully executed form to the City Clerk's office
Attach: Scope of Work and/or Quotes
4 1.GENERALLY. The materials, supplies, or services (collectively, “Purchase”) covered by this purchase order (“order”) must be furnished by Seller subject to all the terms and conditions contained in this order which Seller, in accepting this order, agrees to be bound by and comply with in all particulars. No other terms or conditions are binding upon the parties unless subsequently agreed to in writing. Written acceptance or shipment of all or any portion of the Purchase covered by this order constitutes unqualified acceptance of all terms and conditions in this order. The terms of any proposal referred to in this order are included and made a part of the order only to the extent it specified the Purchase ordered, the price, and the delivery, and then only to the extent that such terms are consistent with the terms and conditions of this order.
2.INSPECTION. The Purchase furnished must be exactly as specified in this order, free from all defects in Seller’s performance, design, workmanship, and materials, and, except as otherwise provided, is subject to inspection and test by City at all times and places. If, before final acceptance, any Purchase is found to be incomplete, or not as specified, City may reject it, require Seller to correct it without charge, or require delivery of such Purchase at a reduction in price that is equitable under the circumstances. If seller is unable or refuses to correct such items within a time deemed reasonable by City, City may terminate the order in whole or in part. Seller bears all risks as to rejected Purchases and, in addition to any costs for which Seller may become liable to City under other provisions of this order, must reimburse City for all transportation costs, other related costs incurred, or payments to Seller in accordance with the terms of this order for unaccepted Purchases. Notwithstanding City’s acceptance of any Purchase, Seller is liable for latent defects, fraud, or such gross mistakes as constitute fraud.
3.CHANGES. City may make changes within the general scope of this order in drawings and specifications for specially manufactured supplies, place of delivery, method of shipment or packing of the order by giving notice to Seller and subsequently confirming such changes in writing. If such changes affect the cost of or the time required for performance of this order, an equitable adjustment in the price or delivery or both must be made. No change by Seller is allowed without City’s written approval. Any claim by Seller for an adjustment under this section must be made in writing within thirty (30) days from the date of receipt by Seller of notification of such change unless City waives this condition in writing. Nothing in this section excuses Seller from proceeding with performance of the order as changed.
4. TERMINATION. City may terminate this order at any time, either verbally or in writing, with or without cause. Should termination occur, City will pay Seller as full performance until such termination the unit or pro rata order price for the performed and accepted portion of the Purchase. City may provide written notice of termination for Seller’s default if Seller refuses or fails to comply with this order. If Seller does not cure such failure within a reasonable time period, or fails to perform the Purchase within the time specified (or allowed by extension), Seller will be liable to City for any excess costs incurred by City.
5.TIME EXTENSION. City may extend the time for completion if, in City’s sole determination, Seller was delayed because of causes beyond Seller’s control and without Seller’s fault or negligence. In the event delay was caused by City, Seller’s sole remedy is limited to recovering money actually and necessarily expended by Seller because of the delay; there is no right to recover anticipated profit.
6.REMEDIES CUMULATIVE. City’s rights and remedies under this order are not exclusive and are in addition to any rights and remedies provided by law.
7.TITLE. Title to materials and supplies purchased under this order pass directly from Seller to City upon City’s written acceptance following an actual inspection and City’s opportunity to reject.
8.PAYMENT. City will pay Seller after receiving acceptable invoices for materials and supplies delivered and accepted or services rendered and accepted. City will not pay cartage, shipping, packaging or boxing expenses unless specified in this order. Drafts will not be honored.
9.INDEMNIFICATION. Seller agrees to indemnify and hold City harmless from and against any claim, action, damages, costs (including, without limitation, attorney’s fees), injuries, or liability, arising out of the Purchase or the order, or their performance, except for such loss or damage arising from City’s sole negligence or willful misconduct. Should City be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of the Purchase or order, or their performance, Seller will defend City (at City’s request and with counsel satisfactory to City) and indemnify City for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section “City” includes City’s officers, elected officials, and employees. It is expressly understood and agreed that the foregoing provisions will survive termination of this order. The requirements as to the types and limits of insurance coverage to be maintained by Seller, and any approval of such insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Seller pursuant to this order, including, without limitation, to the provisions concerning indemnification.
10.WARRANTY. Seller agrees that the Purchase is covered by the most favorable commercial warranties the Seller gives to any customer for the same or substantially similar supplies or services, or such other more favorable warranties as is specified in this order. Warranties will be effective notwithstanding any inspection or acceptance of the Purchase by City.
11.ASSIGNMENT. City may assign this order. Except as to any payment due under this order, Seller may not assign or subcontract the order without City’s written approval. Should City give consent, it will not relieve Seller from any obligations under this order and any transferee or subcontractor will be considered Seller’s agent.
12.INSURANCE. Seller must provide the insurance indicated on the face sheet of this order.
13.PERMITS. Seller must procure all necessary permits and licenses, and abide by all federal, state, and local laws, for performing this order.
14.INDEPENDENT CONTRACTOR. City and Seller agree that Seller will act as an independent contractor and will have control of all work and the manner in which is it performed. Seller will be free to contract for similar service to be performed for other employers while under contract with City.
Seller is not an agent or employee of City and is not entitled to participate in any pension plan, insurance, bonus or similar benefits City provides for its employees. Any provision in this order that may appear to give City the right to direct Seller as to the details of doing the work or to exercise a measure of control over the work means that Seller will follow the direction of the City as to end results of the work only.
15.WAIVER. City’s review or acceptance of, or payment for, work product prepared by Seller under this order will not be construed to operate as a waiver of any rights City may have under this Agreement or of any cause of action arising from Seller’s performance. A waiver by City of any breach of any term, covenant, or condition contained in this order will not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained in this order, whether of the same or different character.
16.INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Ventura County.
5 Scope of Work
Procuring traffic control equipment, including Traffic Signal Controller Cabinets, Traffic Signal Controllers, Video Detection Cameras (such as Autoscope Vision), Autoscope Communications Manager, Battery Backup Systems, and necessary Cables and Wiring, separate from the City’s existing maintenance agreement with a separate vendor, Econolite Systems, Inc.
6