Title
An Ordinance approving the agreements for the purchase of traffic signal equipment from Iteris Inc. and Gades Sales Company and authorizing the City Manager to execute agreements for the same. (PWC 8/12/24)
Body
Issue/Request:
An Ordinance approving the agreements for the purchase of traffic signal equipment from Iteris Inc. and Gades Sales Company and authorizing the City Manager to execute agreements for the same.
Key Issues:
• The City has a need to purchase traffic signal equipment regularly to maintain the City’s traffic signal infrastructure
• In September 2023, the City conducted a competitive bid process for the purchase of Miscellaneous Traffic Signal Components (Solicitation 2024-027)
• The City awarded contracts to two suppliers for the purchase of materials, Iteris, Inc. and Gades Sales Company, at a time when annual equipment expenses were less than $75,000 per year
• Based on the continued need for materials and the positive performance of both vendors, the Iteris contract was renewed on May 20, 2024, with effective dates September 28, 2024, through September 27, 2025. The Gades Sales contract was renewed on June 10, 2024, with effective dates September 28, 2024, through September 27, 2025.
• Due to inflation and the aging out of existing traffic signal components, the City anticipates exceeding the $75,000 maximum per year, per vendor for Iteris Inc. and Gades Sales Company.
• Section 4 of the Procurement policy states if the City anticipates spending more than $75,000 in a year with a vendor, the City Council must approve the contract.
Proposed Committee Motion:
FIRST MOTION: I move to recommend to the City Council approval of an Ordinance approving the agreements for the purchase of traffic signal equipment from Iteris Inc. and Gades Sales Company and authorizing the City Manager to execute agreements for the same.
Proposed City Council Motion:
FIRST MOTION: I move for second reading of an Ordinance approving the agreements for the purchase of traffic signal equipment from Iteris Inc. and Gades Sales Company and authorizing the City Manager to execute agreements for the same.
SECOND MOTION: I move for adoption of an Ordinance approving the agreements for the purchase of traffic signal equipment from Iteris Inc. and Gades Sales Company and authorizing the City Manager to execute agreements for the same.
Background:
Iteris, Inc. and Gades Sales Company are traffic signal vendors that provide a multitude of signal components used by the City. Iteris is the exclusive vendor for the video detection system used by the City of Lee's Summit and Gades is the exclusive vendor the signal controller used by the City. The City benefits from these contracts because the technicians are familiar with the specific equipment and have experienced good customer service from both vendors.
Historically, the annual budget for each contract was less than $75,000 per year. Recently, inflation has increased pricing so that the annual spending amounts will exceed $75,000 per contract. The options are (a) shut down traffic signal maintenance late in the fiscal year to stay under the $75,000 limit, or (b) seek Council approval so the contracts will meet the amounts authorized in the City’s annual budget. Allowing the contracts to exceed $75,000 per year, per vendor, will authorize City staff to repair signals throughout the entire year to upgrade equipment to keep our signals in good working order. The authorized budget amounts to be used on these contracts have been approved by City Council and all procurement in use of these contracts will adhere to the City's Procurement Policy.
Impact/Analysis:
The City will be able to purchase traffic signal equipment at the lowest prices and upgrade equipment in line with our Asset Management Plan.
Presenter
Susan Barry, City Traffic Engineer
Recommendation
Staff recommends approval.
Committee Recommendation
Committee Recommendation: The Public Works Committee voted unanimously 4-0, to recommend to City Council approval of an Ordinance approving the agreements for the purchase of traffic signal equipment from Iteris Inc. and Gades Sales Company and authorizing the City Manager to execute agreements for the same.