DATE: April 8, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Public Works Department
TITLE: AWARD OF CONTRACT AND PURCHASE ORDER FOR THE INSTALLATION OF STRIPING AT VARIOUS INTERSECTIONS
RECOMMENDATION
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Staff recommends that the City Council award a Public Works Agreement (PWA) and approve a purchase order to Payneco Specialties Inc. dba Payco Specialties (Payco), in the amount of $206,256 ($171,256 plus an additional contingency of $35,000), for roadway striping at various locations; authorize the City Manager to execute the agreement upon receipt of all supporting documents; and authorize the Financial Services Director, or designee, to execute the purchase order.
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BACKGROUND AND ANALYSIS
On January 29, 2026, staff advertised the project for “Striping Project at Various Locations, FY 25-26,” inviting bids from interested contractors. Subsequently, a total of two bids were received for this project. After a comprehensive evaluation, staff has determined that all bids met the necessary criteria, and Payco has been identified as the lowest responsive and responsible bidder.
To enhance traffic safety, the proposed improvements will involve refreshing existing and/or installing new crosswalks, limit lines, legends, sharrows and arrows; and establish new bike lanes and on street parking.
The scheduled completion for the project is summer 2026. If other necessary striping is required, a $35,000 contingency is available.
FISCAL IMPACT
The PWA and purchase order with Payneco Specialties, Inc. is $171,256 plus a contingency of $35,000 for a total of $206,256 and will be charged to the Misc. Traffic Marking’s account 425411212.5355 which has an available balance of $208,878; therefore, there are sufficient funds available for use.
|
Description |
Amount |
Account Number |
Available Balance |
|
Payco Specialties PWA |
$206,256 |
425411212.5355 |
$208,878 |
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form. The contract must be awarded to the lowest responsible bidder. The Public Contract Code defines “responsible bidder” as a bidder who has demonstrated the attributes of trustworthiness as well as quality, fitness, capacity and experience to satisfactorily perform a public works contract.
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Prepared by: Teala Cotter, City Traffic Engineer
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Bid Tabulation
3. PWA - Payco
4. Exhibit A - Payco Proposal