Agenda Item Wording:
title
Contract for the Purchase of Street Name Signs - Authorize the City Manager to award an annual contract for the supply and delivery of street name signs to Safeway Sign Company at an amount not to exceed $65,000 annually, totaling $325,000 over the life of the contract, from the Gas Tax Fund (111), with an option to renew annually for up to four (4) additional one-year terms.
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Deadline for Action: 2/3/2025
Submitting Department: Public Works
Contact Name and Phone Number
Danny Galindo, Public Works Manager, danny.galindo@visalia.city <mailto:danny.galindo@visalia.city> , 713-4186
Nick Bartsch, Public Works Director, nick.bartsch@visalia.city <mailto:nick.bartsch@visalia.city> , 713-4052
Department Recommendation:
Staff recommends that the City Council authorize the City Manager to award an annual contract to Safeway Sign Company for supply and delivery of traffic street name signs (SNS) in accordance with the specifications of Request for Bid (RFB) 23-24-22 in the amount of $65,000 annually, totaling $325,000 over the life of the contract. The bid amount came in at $51,407.30, and to account for the potential annual CPI increases allowable to the vendor per the contract specifications, staff is requesting the annual NTE amount be $65,000. This is a one-year contract, with an option to renew annually for up to four (4) additional one-year terms.
Background Discussion:
Due to the expiration of the prior contract for the supply and delivery of street name signs (SNS), Staff solicited bid proposals through Request for Bid (RFB) 23-24-22. Purchasing advertised the RFB on November 1st & 6th, 2024 in the Visalia Times Delta newspaper, on Bidnet, and sent letters to past companies the City has completed this type of work with. Bids were publicly opened on December 3, 2024, and received the following six-bids:
1. Fyre Marketing - 32,474.74
2. Safeway Sign Company - $51,407.30
3. Safety Network Traffic Signs - $51,537.50
4. Front Signs - $82,562.71
5. Blink Signs - $84,187.20
6. Azco Supply - $152,132.19
Staff evaluated the lowest bid from Fyre Marketing. The provided references were checked and their prior experience did not meet the criteria that was required. Staff requested additional references and ultimately determined they did not meet the RFB requirements.
Safeway Sign Company was the second lowest bidder. Their references were contacted and established that Safeway Sign Company met all the requirements of the RFB.
While these signs were once produced in-house, staff found that due to the growing magnitude of the number of signs needed, it was more efficient to have them made by an outside manufacturer. The need for the replacement of SNS has increased over time with the City’s growth, and with this economy of scale, it is better served through an annual contract to produce and supply these signs.
City staff evaluates SNS throughout the year and maintains a list of signs that require replacement due to fading and loss of reflectivity. Staff typically replaces a total of 950 signs per year under this contract as they work throughout the various sections of the City. The new contract will be for a one-year period with the option of four renewable one-year extensions. Staff will continue to be responsible for the installation of SNS through the management of this program.
Fiscal Impact:
Funding for the supply and delivery of street signs is budgeted under CP0406 within the Gas Tax Fund (111) in the amount of $80,000, annually.
Prior Council Action: On April 1, 2019, City Council authorized the City Manager to award a 5-year contract to Safety Network Traffic Signs Inc. for the supply and delivery of street signs.
Other: N/A
Alternatives: Not award this contract and produce these signs in-house. This is not recommended due to the impact on staff’s current workload and a likely increase in costs to do so.
Recommended Motion (and Alternative Motions if expected):
recommendation
I motion to authorize the City Manager to award an annual contract to Safeway Sign Company in the amount of not to exceed $65,000 annually, totaling $325,000 over the life of the contract for the supply and delivery of street name signs in accordance with the specifications of Request for Bid (RFB) 23-24-22, with an option to renew annually for up to four (4) additional one-year terms.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Click or tap here to enter text.
Bid Summary
Ownership Discloser