HomeMy WebLinkAbout _ 4.5(a)--Authorize and Approve Modifications to the award of Bid Schedule 5630 – Traffic Control GI �" Y C� F
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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***
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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.
Attachments
Existing Bid Proposal from Highway Specialty Company
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