REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute an Agreement with Bear Electrical Solutions, LLC for Traffic Signal Maintenance, Repair, and Support Services
Report
BACKGROUND
The Department of Public Works (DPW) is responsible for operating, maintaining, and managing projects associated with approximately 145 traffic signals, 16 pedestrian hybrid beacons, 24 flashing beacons, 36 radar speed feedback signs, six lighted crosswalks, a reversible lane system on Lafayette Street, and 10 permanent changeable message signs on Tasman Drive and Great America Parkway in northern Santa Clara.
In an effort to ensure the safe and reliable operation of this infrastructure, the City uses a specialized contractor to provide dedicated resources for traffic signal maintenance, repair, and support services including construction support, underground service alert calls, and other as-needed services related to traffic signal cameras and various other traffic signal infrastructure.
On April 6, 2021, the City Council awarded a purchase order to Bear Electrical Solutions, LLC for traffic signal maintenance, repair, and support services. The purchase order expired on April 15, 2026. Staff conducted a solicitation and is seeking to enter into a new agreement to ensure continuity of these important services.
DISCUSSION
Pursuant to Section 2.105.140(c) of the Santa Clara City Code (City Code), a formal Request for Proposals (RFP) was conducted with the award recommendation to the overall highest-ranked proposer based on best value.
On February 17, 2026, staff published the RFP for traffic signal maintenance, repair, and support services on the City’s e-procurement system. A total of 24 companies viewed the RFP, and two proposals were received from the following firms:
• Bear Electrical Solutions, LLC (Bear Electrical)
• St. Francis Electric, LLC
Proposals were evaluated by a panel comprised of three evaluators from DPW in accordance with the RFP evaluation criteria, including firm experience, qualifications, technical capabilities, and cost. Based on the evaluation, the panel determined that Bear Electrical’s proposal represented the best value to the City and recommended award accordingly. On April 13, 2026, a Notice of Intended Award was subsequently issued to notify respondents of the selection.
Staff issued an interim purchase order to Bear Electrical in the amount of $200,000 to continue these essential services between the expiration of the existing purchase order and execution of a new agreement. In accordance with Section 2.105.300(a) of the City Code, the City Manager is authorized to execute purchase orders and agreements on behalf of the City in amounts up to and including $250,000.
Staff requests City Council authorization to execute an agreement with Bear Electrical for traffic signal maintenance, repair, and support services for a total not-to-exceed amount of $9,603,030. This amount includes the initial five-year term, up to two one-year options, and a 10% contingency. The initial term of the agreement is five years, starting on or around July 1, 2026 and ending on or around June 30, 2031. The City may, at its sole discretion, exercise up to two one-year options to extend the term through 2033, with any increases in compensation remaining within the total not-to-exceed maximum compensation reflected below.
Table 1 summarizes the maximum compensation for this agreement.
Table 1 - Contract Maximum Compensation
|
Description |
Amount |
|
Initial Term Year 1 of 5 Term (07/01/2026 - 06/30/2027) |
$1,153,660 |
|
Initial Term Year 2 of 5 Term (07/01/2027 - 06/30/2028) |
$1,188,460 |
|
Initial Term Year 3 of 5 Term (07/01/2028 - 06/30/2029) |
$1,212,045 |
|
Initial Term Year 4 of 5 Term (07/01/2029 - 06/30/2030) |
$1,231,880 |
|
Initial Term Year 5 of 5 Term (07/01/2030 - 06/30/2031) |
$1,251,065 |
|
Option Year 1 (07/01/2031 - 06/30/2032) |
$1,313,618 |
|
Option Year 2 (07/01/2032 - 06/30/2033) |
$1,379,299 |
|
Contingency (10%) |
$873,003 |
|
Total Not-to-Exceed Maximum Compensation |
$9,603,030 |
Compensation under the agreement is based on fixed unit pricing per intersection for preventative maintenance services and time and materials for additional as-needed services. Pricing is fixed for the initial five-year term, after which the contractor may request rate adjustments no more than once annually. Any proposed rate adjustments are subject to approval by the City and must be substantiated by the contractor to the satisfaction of the City. Option Years 1 through 2 assume an annual price increase of 5%.
A contingency is included to account for unanticipated service requirements and potential rate increases exceeding the assumed amount. Staff will monitor and manage expenditures throughout the term of the agreement based on operational needs, to ensure that costs remain within the authorized maximum compensation.
Under the proposed agreement, Bear Electrical will provide comprehensive traffic signal maintenance, repair, and support services on an as-needed basis. Services include the implementation of a routine preventative maintenance program for the City’s traffic signal system consisting of annual inspections, testing, cleaning, repairs, and minor replacements for traffic signals, beacons, radar feedback signs, and lighted crosswalks.
The Agreement includes prevailing wage requirements.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Funding for the construction-related support is available in several capital projects including Traffic Pre-Emptors (CIP 533-1218), Traffic Signal Enhancements (CIP 533-1219), Retroflective Borders on Traffic Signal Backplates (CIP 533-1294), and Traffic Signal Interconnect (CIP 533-1232) in the Streets and Highways Capital Fund in FY 2026/27. Funding for the general signal maintenance portion of the agreement is budgeted in the Department of Public Works’ FY 2026/27 General Fund operating budget. The FY 2026/27 budget for signal maintenance is $835,000 and is $152,000 below the first year cost plus 10% contingency of $987,000. There is potential that the Department may be able to absorb the higher costs, however if this is not possible, it may be necessary to bring forward a budget action at a later date. Funding for future years will be factored into the operating budget; these expenditures will be subject to future appropriations of funds adopted by Council.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to execute the agreement with Bear Electrical Solutions, LLC for traffic signal maintenance, repair, and support services, for a not-to-exceed amount of $9,603,030, inclusive of the initial five-year term, up to two one-year option periods, and a 10% contingency, subject to the appropriation of funds and final review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions necessary to implement and administer the agreement with Bear Electrical Solutions, LLC, including exercising up to two one-year options in accordance with the agreement through 2033, and to negotiate and execute future amendment(s) to (a) add or delete services associated with the services, (b) adjust rates consistent with market conditions, and (c) make de minimis changes, subject to the above maximum compensation limit and final review and approval as to form by the City Attorney.
Staff
Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. Draft Agreement with Bear Electrical Solutions, LLC