REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with Statewide Traffic Safety and Signs, Inc. dba Statewide Safety Systems for Traffic Control Services for Silicon Valley Power
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Silicon Valley Power (SVP), has over 500 miles of overhead and underground transmission and distribution facilities required to transmit power to end users including Santa Clara residents and businesses. Many of these facilities are in the public right of way, such as roadways. In order to safely perform maintenance activities, SVP regularly requires traffic control services to establish and maintain safe work areas around public roadways.
DISCUSSION
Pursuant to City Code Section 2.105.140(d), a formal Request for Bids (RFB) was conducted with the award recommendation based on the lowest responsive and responsible bidder. In April 2022, the City issued the RFB for Traffic Control Services which was published on the City’s e-procurement system. The RFB requested bids from qualified sources to provide as-needed traffic control services in support of SVP maintenance activities and other activities in the public right of way. Two bids were received by the bid deadline. The City deemed one bid non-responsive as the bidder failed to provide sufficient information to determine whether the bidder met the minimum qualifications.
Staff performed reference checks on the responsive bidder, Statewide Traffic Safety and Signs, Inc. dba Statewide Safety Systems (Statewide). Staff also performed a price analysis and concluded that Statewide’s bid prices were not fair and reasonable. As a result, the Purchasing Division Manager rejected all bids pursuant to Section 2.105.200 of the City Code of the City of Santa Clara, which states that “if all bids or proposals are rejected, the Purchasing Division Manager or designee may re-notice the solicitation or award without further complying with the provisions of this Chapter [Chapter 2.105 of the City Code] if readvertising is determined to be an idle act.”
The Purchasing Division Manager determined that readvertising was an idle act. Staff performed outreach to multiple vendors and extended the bid deadline to increase participation. However, only the abovementioned bids were received by the extended deadline. Therefore, the Purchasing Division Manager directed staff to engage with Statewide to negotiate fair and reasonable pricing. City staff successfully negotiated a cost savings of $284,250 over the proposed five-year term.
Staff requests authorization for the City Manager to execute an agreement with Statewide with a maximum compensation not to exceed $1,250,000 over a five-year term. The proposed agreement includes a high-level scope of services and compensation paid on a time-and-materials basis at rates established in the agreement. The contractor may request adjustments once per calendar year. Any rate increases must be approved by the City and must be substantiated by the contractor to the satisfaction of the City.
Currently, Statewide is providing traffic control services using a purchase order and staff is satisfied with their services.
ENVIRONMENTAL REVIEW
Staff recommends that the City Council determine that the actions being considered are exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15301 of Title 14 of the California Code of Regulations as the services involve traffic control relating to existing City facilities.
FISCAL IMPACT
The maximum compensation under the agreement is $1,250,000 over the five-year term. There is also a recommendation to authorize the City Manager to negotiate amendments to the agreement that could increase the maximum compensation to $1,500,000. The costs associated with this agreement are budgeted as part of SVP’s capital and operating budget based on the type of project requiring services. Funding for the first two years of the agreement is included in the Adopted FY 2023/24 and FY 2024/25 Operating Budget in the Electric Utility Operating and Capital Funds.
Funds required for these agreements in future years will be included in proposed budgets for corresponding years.
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 <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine the proposed actions are exempt from CEQA pursuant to Section 15301 (Existing Facilities) of Title 14 of the California Code of Regulations;
2. Authorize the City Manager to execute an agreement with Statewide Traffic Safety and Signs dba Statewide Safety Systems (Agreement) for traffic control services with a maximum compensation not to exceed $1,250,000 over a five-year term when the Agreement is executed and ending on December 31, 2028, to be funded by the Electric Utility Funds subject to appropriation of funds for future years; and
3. Authorize the City Manager to take any actions as necessary to implement and administer the Agreement and negotiate and execute amendments to the Agreement to (a) add or delete services consistent with their scope of services; (b) adjust rates based on market conditions or labor agreement requirements; and (c) increase the maximum compensation by up to $250,000 for a total maximum compensation of $1,500,000 over a five year period, subject to the appropriation of funds and the review and approval as to form by the City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Proposed Agreement with Statewide Traffic Safety and Signs