That the City Council:
A.  Approve and authorize the City Manager to enter into an agreement with AGA Engineers, Inc., in an amount not to exceed $261,450 for Citywide Traffic Signal Operations, Fiscal Year 2022-2023 through Fiscal Year 2027-2028; and

B. Authorize staff to issue a purchase order to AGA Engineers, Inc., for Fiscal Year 2022-2023 in the amount of $43,575.

In October 2016, the City of La Habra awarded a contract to AGA Engineers, Inc. (AGA) to provide traffic signal operations services on a citywide basis.  The term of the contract was for a six-year period, from Fiscal Year 2016-2017 to Fiscal Year 2021-2022, which expired on June 30, 2022.  AGA is currently providing traffic signal operation services on a "month-to-month" basis. AGA has provided traffic signal operations services to the City of La Habra for more than 20 years, providing consistently high quality, reliable service, which has been demonstrated numerous times over the years, especially during "on-call" emergencies. 

La Habra Municipal Code (LHMC) Section 4.20.070 "Exceptions to Bidding Requirements For Purchase of Goods and Services" provides the City the opportunity to utilize cooperative governmental purchasing contracts or pricing for a given item or service which was established through another governmental agency’s successful bid award for that general or specific type of item or service, and which had been conducted on a negotiated or competitive basis.  The City of Laguna Niguel completed a competitive procurement in March 2021 for traffic signal services similar to those now desired by the City of La Habra, awarding a two-year contract to AGA in support of their Public Works Department's management of traffic signal operations.  Likewise, in July 2020, the City of Montclair also completed a competitive procurement process and awarded a four-year contract to AGA for these same services. 

In July 2022, staff negotiated proposed terms and pricing for a new contract with AGA consistent with the bidding exceptions contained within LHMC Section 4.20.070.  The proposed contract would be for a six-year term, from Fiscal Year 2022-2023 through Fiscal Year 2027-2028.  The negotiated contract amount is $261,450, which is approximately $43,575 per year and consistent with the pricing levels AGA proposed in recent RFP responses.  This amount includes a fee of $97.50 per intersection per month for the first year of the proposed contract, as well as an annual adjustment fee of $2.50 per intersection per month for the duration of the contract.  During the term of the agreement, AGA will monitor a total of thirty-five (35) signalized intersections citywide.
 
Staff recommends that the City Council approve and authorize the City Manager to execute an agreement (Attachment 1) with AGA to provide professional traffic signal operation services Citywide and authorize staff to issue a purchase order not to exceed the amount of $261,450.

Funding for professional engineering services for Citywide Traffic Signal Operations is included in the approved General Fund Traffic Management Budget for Fiscal Year 2022-2023.  There are sufficient funds for the proposed $261,450 cost of the first year for this agreement; therefore, no additional funds are requested at this time.