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HomeMy WebLinkAbout _ 4.5(a)--Authorize and Approve Modifications to the award of Bid Schedule 5630 – Traffic Control GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: April'7, 2026 FROM: Nick Zettel, Director of ITEM NO. 4.5(a) Redding Electric Utility ***APPROVED BY*** � �� �� t� �.� 5�� s� �� �� � ��,�� • � � .� � � �. �.�_w� .� �k et e o ��rcctor �a9' e in r tric�Lltriity � � 3/2�+t2��6 G���I1a����arbc�x �'���1�a�nag�r � 4J112t726 nzettel@cityofredding.org wtarbox@cityofredding.gov SUBJECT: 4.5(a)--A�uthorize and Approve Modifications to the award of Bid Schedule 5630 —Traffic Control Services (Highway Specialt Com any, Inc. Recommendation Authorize and approve the following modifications relative to the award of Bid Schedule No. 5630 for traffic control services to Highway Specialty Company Inc.: (1) Authorize the City of Redding (City) Purchasing Officer to amend Purchase Order PUR003039 to increase the not-to-exceed amount from $182,405 to $362,405 for the initial contract term ending September 30, 2026; and (2) Authorize the City's Purchasing Of�cer, or designee, to exercise two one-year extension options through September 30, 2028, if mutually agreeable, with all prices, terms, and conditions remaining the same, in an amount not-to-exceed$362,405 per contract year. Fiscal Impact Redding Electric Utility (REU) included funding for traffic control services within the General System Improvements biennial budget for Fiscal Years 2025-27. Approval of the requested $180,000 increase to Purchase Order PUR003039 will raise the not-to-exceed amount for the initial term to $362,405. If both one-year extension options are exercised, the annual not-to-exceed amount will remain $362,405 per year, for a potential total authorization of $1,087,215 over the three-year period. Future extension years will remain subject to Council-approved budget appropriations. Sufficient funding is available within REU's General System Improvements budget to accommodate the additional cost. Traffic control services are a necessary component of electric utility construction and system improvement projects performed within public rights-of way. As such, these costs are appropriately included as part of capital project expenditures and are antieipated to be reimbursed through bond proceeds associated with elec�ric system improvements. No additional appropriations are required. Report to Redding City Council Apri11, 2026 Re: 4.5(a)--Authorize and Approve Modifications to the award of Bid Schedule 5630 - Traffic Control Page 2 Alternative Action The Council may choose not to approve the staff's recommendation and provide alternative direction. Background/Analysis REU regularly performs electric system construction, maintenance, and emergency response activities within public rights-of-way. TrafF'ic control services are required for these activities to maintain safe travel conditions for the public, protect utility crews working near roadways, and comply with applicable traffic control regulations and safety standards.As a result, traffic control personnel, equipment, and services are essential components of electric utility work performed in public streets. On September 29, 2025, the City of Redding (City) issued Purchase Order PUR003039 to Highway Specialty Company, Inc. following the successful award of Bid 5630 for on-call traffic control services. The initial term began October 1, 2025, and runs through September 30, 2026, with two optional one-year extensions through September 30, 2028. The original purchase order amount of$182,405 was based on estimated service levels at the time of contract award. Because traffic control is directly associated with the execution of these capital improvement activities, it is considered a necessary project cost and is appropriately included as part of General System Improvements and is eligible for reimbursement through electric system bond proceeds. Due to the increased volume of in-house underground construction and continued system improvement activities, utilization of on-call traff'ic control services under Purchase Order PUR003039 has exceeded earlier projections. The purchase order is therefore approaching its authorized limit. Staff recommends increasing the purchase order to ensure sufficient capacity for traffic control services for the remainder of the initial term and to authorize continuation of services under the two one-year extension options at the same annual not-to-exceed amount. Highway Specialty Company, Inc. has performed satisfactorily, and pricing remains consistent with the competitively bid contract schedule. Environmental Review This is not a project defined under the California Environmental Quality Act (CEQA), and no further action is required. Council Pr�ioNity/City Manager Goals • This is a routine operational item. 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