Honorable Mayor and Members of the City Council. Len Gorecki, Assistant City Manager/Director of Public Works Philip Wang, Associate Engineer
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1 14-J TO: ATTENTION: FROM: Honorable Mayor and Members of the City Council Jeffrey L. Stewart, City Manager Len Gorecki, Assistant City Manager/Director of Public Works Philip Wang, Associate Engineer SUBJECT: Consideration and possible action to adopt Resolution No A Resolution establishing a project payment account; and authorizing the City Manager to execute a purchase order with NexTech Systems, Inc., without the need for additional bidding. DATE: March 25, 2019 EXECUTIVE SUMMARY This action would establish a project payment account and authorize the City Manager to execute a purchase order with NexTech Systems, Inc. (Vendor), for the equipment associated with the Eucalyptus Avenue Street Improvements from Somerset Boulevard to Flora Vista Street. Equipment includes traffic signal equipment, radar feedback signs, and rectangular rapid flashing beacons. RECOMMENDATION TO CITY COUNCIL 1) Adopt Resolution No ; and 2) Authorize the City Manager to pay the Vendor an amount not to exceed $85,000 before delivery of the equipment. Any such payment must be secured by a surety in a form approved by the City Attorney and accomplished via purchase order in a form approved by the City Attorney to insure warranties and deliveries; or 3) Alternatively, discuss and take other action related to this item. FISCAL IMPACT The revised estimated cost for the purchase of this equipment (traffic signal, radar feedback signs, and rectangular rapid flashing beacons) is $85,000. Funds are available in Account No (Grant Funds CIP Sidewalk Projects). Page 1 of 2-1-
2 Staff Report Purchase Order with NexTech Systems, Inc., for equipment for the Eucalyptus Avenue Street Improvements Project March 25, 2019 Page 2 of 2 DISCUSSION The City obtained a grant for a Safe Routes to School project from the State of California in the amount of $307,964. This project was designed to improve pedestrian safety along Eucalyptus Avenue primarily benefiting students of Frank E. Woodruff Elementary School. The project has multiple safety elements including a high visibility crosswalk in front of the school, curb extensions (bulb-outs), and ADA improvements along Eucalyptus Avenue. On January 28, 2019, the City Council authorized the Director of Public Works, or designee, to purchase traffic signal equipment for the project in advance of the construction. The current estimated cost is $85,000. The advanced purchase of this equipment will result in an overall cost savings, as well as reduce the overall lead-time associated with the delivery. Staff solicited informal quotations for the traffic signal equipment and received four quotes. However, only one quote, submitted by NexTech Systems, Inc., was deemed complete and responsive. Since the equipment requested is specialized, few vendors are able to provide a complete quotation that includes all of the equipment needed. Due to this issue, staff believes a formal bid process would produce similar results and would result in unnecessary costs associated with staff time, reproduction costs, bid advertisement costs, and a delay in the delivery of the equipment. Therefore, staff is recommending that the City Manager execute a purchase order with NexTech Systems, Inc., for purchase of the equipment related to this project. ATTACHMENT Resolution No
3 CITY OF BELLFLOWER RESOLUTION NO A RESOLUTION ESTABLISHING A PROJECT PAYMENT ACCOUNT; AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE ORDER WITH NEXTECH SYSTEMS, INC., WITHOUT THE NEED FOR ADDITIONAL BIDDING THE CITY COUNCIL RESOLVES AS FOLLOWS: SECTION 1: The City Council finds and declares as follows: A. The Safe Routes to School (SR2S) - Eucalyptus Avenue Street Improvements from Somerset Boulevard to Flora Vista Street project, Specifications No. 13/14-04 (Project) was designed by Hartzog and Crabill, Inc. (Designer); B. The City Council authorized the Director of Public Works, or designee, to purchase traffic signal equipment for the Project; C. The Designer included in the design the following equipment, that may be preordered with grant funds: traffic signal modification at Eucalyptus Avenue and Alondra Boulevard, rectangular rapid flashing beacons on Eucalyptus, and radar feedback signs on Eucalyptus (Equipment); D. Based upon the quotation from NexTech Systems Inc. (Vendor), the City Council understands and believes that the total value of the (Equipment) is not to exceed $85,000; E. Ordinarily, the City would need to comply with the competitive bidding requirements set forth in the California Public Contracts Code for this type of purchase; F. The purpose of such bidding requirements is to guard against favoritism, improvidence, extravagance, fraud and corruption, to prevent waste of public funds, and to obtain the best economic result for the public; G. The facts and circumstances of this Project, however, demonstrate that competitive bids would be unavailing or would not produce an advantage, and the advertisement for competitive bid would thus be undesirable and impractical for the following reasons: Page 1 of 3-3-
4 City of Bellflower Resolution No Page 2 of 3 1. Four vendors were solicited for an informal quotation and out of the four vendors, only one vendor submitted a complete quote for all the equipment; 2. Vendor is the manufacturer of the specified rectangular rapid flashing beacons specified in The Project; 3. Other vendors were unable to obtain a quotation for the specified equipment and thus had no bids for various items and thus were unable to submit a complete quotation; 4. The Safe Routes to School Grant has a lapsing date of June 30, 2019, and seeking bids would result in the inability for the City to obtain reimbursement for this traffic signal equipment as invoicing is due at the latest May 15, 2019, to the State. 5. Seeking bids for the Project would cost the City both time and money, resulting in an unnecessary delay to the Project; and H. In waiving the competitive bid requirements otherwise required by the Public Contract Code, the City Council takes note of the analysis and decisions set forth in Graydon v. Pasadena Redevelopment Agency (1980) Cal.App.3d 631; Hodgeman v. City of San Diego (1942) 53 Cal. App.2 nd 610; Orange County Water Dist. v. Bennett (1958) 156 Cal. App.2 nd 745; and Los Angeles G&E Corp. v. City of Los Angeles (1922) 188 Cal SECTION 2: Project Payment Account. For purposes of the Contract Documents administering the Project, the City Council directs the City Manager, or designee, to establish an account allocating Safe Routes to School Grant Funds from the current fiscal year budget to pay for the Equipment ( Project Payment Account ). The Project Payment Account is the sole source of funds available for the Equipment Sum. SECTION 3: Authorizations. The City Manager is authorized to execute a purchase order in a form approved by the City Attorney to purchase the Equipment including without limitation, terms and conditions for prepaying the Vendor in anamount not to exceed $85,000 secured by a surety in a form approved by the City Attorney. SECTION 4: This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution. -4-
5 City of Bellflower Resolution No Page 3 of 3 SECTION 5: If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 6: The Mayor, or presiding officer, is hereby authorized to affix [his or her] signature to this Resolution signifying its adoption by the City Council of the City of Bellflower, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 7: adoption. This Resolution will become effective immediately upon PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 25 TH DAY OF MARCH ATTEST: Sonny R. Santa Ines, Mayor Mayra Ochiqui, City Clerk APPROVED AS TO FORM: Karl H. Berger, City Attorney -5-
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