TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: JUNE 24, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
AUTHORIZATION TO AMEND THE AGREEMENT WITH ECONOLITE FOR CITYWIDE TRAFFIC SIGNAL MAINTENANCE (FUNDING SOURCE: GENERAL FUND)
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SUMMARY
The Engineering Division is responsible for maintaining and repairing the City’s traffic signal system. These services are currently provided on a contractual basis by the signal maintenance company Econolite Systems, Inc. (Econolite) of Anaheim. The City Council approved the current agreement with Econolite at its March 25, 2021 meeting, with options to extend this contract still available. However, due to the number of signal pole knockdowns that had to be addressed during the current fiscal year, the current contract amount will not cover the maintenance activities through June 30, 2025.
To continue to provide traffic signal maintenance services, staff recommends the City Council authorize an amendment to the current agreement with Econolite to add additional funds to cover the unforeseen costs due to traffic signal pole knockdowns.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to amend the current agreement with Econolite Systems, Inc., for annual traffic signal maintenance, increasing compensation by $30,000, for a total contract amount of $155,000 in 2024-25;
B. Authorize the City Manager to extend the agreement for four additional one-year terms in an amount not to exceed $155,000 per year; and
C. Appropriate $30,000 from the unassigned General Fund balance in 2024-25 and an additional $30,000 from the unassigned General Fund balance in 2025-26 to fund the amended contract through June 30, 2026.
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ALTERNATIVE TO RECOMMENDATION
In addition to the staff recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The cost for traffic signal maintenance and repair services is estimated at $125,000 annually and was included in the 2024-2026 Budget.
The Econolite contract includes the option to extend the agreement for up to four additional one-year terms starting from the March 25, 2021 approval. At the time of the extension, consideration may be given to the contractor to adjust unit prices based on increased fuel and/or labor costs or unforeseen circumstances.
Through the first three years of the five total years authorized, the budget of $125,000 was sufficient to account for the annual costs for monthly preventative maintenance services. However, during the current fiscal year, the City incurred costs for the replacement of approximately four damaged traffic signal poles, accounting for an additional cost of $27,293, at the locations listed below.
• Arrow Highway at Claremont Boulevard (two occurrences)
• Arrow Highway at Indian Hill Boulevard
• Base Line Road at Padua Avenue
The cost to prepare and complete this report is estimated at $964, which is included in the Community Development Department's operating budget.
ANALYSIS
Econolite provides preventative maintenance checks at each signal location monthly and responds to call-outs from City staff due to signal malfunctions and needed repairs. The City also relies on the signal maintenance contractor to respond to additional signal issues beyond the routine maintenance and repair responses. These include signal knockdowns from collisions, signal loop repairs, and temporary generator placement during planned power outages, as necessary.
The City Council last authorized a contract with Econolite Systems, Inc. in the amount of $125,000 per year at their March 25, 2021 meeting. This amount is based on the anticipated costs for both the preventative maintenance and repair of the City’s 43 traffic signals, three pedestrian signals, and 11 driver feedback signs. The costs associated with monthly preventative maintenance checks for the traffic and pedestrian signals and driver feedback signs are estimated at approximately $36,000 annually. The signal repair costs are more variable in nature and can differ substantially from year to year. Based on the previous year’s records, signal repairs have been estimated at approximately $49,000.
In the current fiscal year, the contract is projected to have $48,200 in preventative maintenance costs, $67,500 in callouts, and $39,000 in additional costs due to pole knockdowns and/or miscellaneous unforeseen repairs. These projected costs reflect the need for an additional $30,000, bringing the total contract amount to $155,000.
Additional expenditures associated with the signal maintenance contract include: (a) repairs associated with signal pole damage and knockdowns, and software upgrades and corrections; (b) signal loop replacements; and (c) the placement of generators at signal locations during power outages associated with the Southern California Edison Pole replacement program.
Staff recommends an additional $30,000 for the current fiscal year, for a total not to exceed $155,000, and four additional one-year contract extensions, in the amount not to exceed $155,000 per year. With the City Council’s approval, the additional appropriations will allow for the additional costs during the current 2024-26 budget cycle and additional appropriations will be requested in future budget cycles to support these ongoing costs.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relation to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: City Council Priorities, General Plan, and the 2024-2026 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Vincent Ramos
Community Development Director Associate Engineer
Reviewed by:
Maria B. Tipping, P.E.
City Engineer