Report Prepared by: Juan Olmos, Public Works Manager - Tax Services
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Approve Agreements for Supplies and Services for the Purchase of Traffic Signal and Streetlight Parts with Tesco Controls, Inc., in the Amount not to Exceed $60,000, Purchase of Asphalt and Related Materials with SYAR Industries, Inc., in the Amount not to Exceed $40,000, and Purchase of Traffic Paint, Stencils, and Related Supplies with International Coatings Company, Inc., in the Amount not to Exceed $40,000, with the Contracts’ Terms Ending June 30, 2022
REPORT IN BRIEF
Considers waiving the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 and approving three (3) separate Supply and Service Agreements for the purchase of various traffic signal and streetlight parts, asphalt and related materials, as well as traffic paint and related supplies for Fiscal Year 2021/2022.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210 for annual service and supply agreements; and,
B. Approving an Agreement for Supplies and Services with Tesco Controls, Inc., in the Amount not to Exceed $60,000; and,
C. Approving an Agreement for Supplies and Services with SYAR Industries, Inc., in the Amount not to Exceed $40,000; and,
D. Approving the Agreement for Supplies and Services with International Coatings Company, Inc., in the Amount not to Exceed $40,000; and,
E. Authorizing the City Manager or the Deputy City Manager, to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
City of Merced Charter Section 3.04.210 - Exemptions from Competitive Bidding:
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold”, may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
As provided for in the FY 2021/2022 adopted budget.
DISCUSSION
The City of Merced Streets Division utilizes multiple vendors for the purchase of various signal and streetlight parts, for the purchase of asphalt and related roadway materials, as well as purchase of traffic paint, stencil guard, and related supplies. These parts are needed for unforeseen repair work or work related to vehicle accidents that damage City infrastructure.
The Public Works Streets Division performs in-house traffic signal preventive maintenance and streetlights repairs. Additionally, an essential part of street maintenance performed by the Streets Division includes painting street legends, markings, and completing asphalt repairs.
The Streets Division is requesting Council waive competitive bidding requirements to allow for the annual supply and service agreements to be executed up to the listed threshold amounts. The agreements have been approved as to form by the City Attorney’s Office and funding is available within the FY 2021/2022 adopted budget.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed; funding is available within the FY 2021/2022 adopted budget.
ATTACHMENTS
1. Tesco Controls, Inc. Agreement
2. SYAR Industries, Inc. Agreement
3. International Coatings Company, Inc. Agreement