SR-205-003 (608)
Purch:PW:ML:RAH:F:\FINANCE\PURCH\STFRPTS\SRBD2872.DOC
Council Meeting: April 27, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award Bid #2872 and Authorize the City Manager to Execute a Contract for
Bus Advertisement Posting Services and On-Board Schedule Rack Stocking
Introduction
This report recommends award of bid and authorization for the City Manager to execute a
three-year contract to providebus advertisement posting services and on-board schedule
rack stocking for the Big Blue Bus Department at specified yearly prices. The estimated
expenditure over three years is $451,691.
Background
On March 19, 2003, the City issued a Request for Proposal (RFP) for advertising
concession services that would have provided selling, placing, installing and managing
commercial advertising on the interior and exterior of the Big Blue Bus fleet. Further
analysis suggested that the City would be better served if the advertising sales function
were brought in-house. Advantages of an in-house advertising program include the
potential for increased net revenues, more flexibility on the placement of commercial ads
versus City-sponsored promotions, and additional control over advertising content. On
June 10, 2003 at the recommendation of staff, City Council rejected all submittals received
in response to the RFP and supported staff’s recommendation to continue the advertising
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program without the services of an outside advertising concessionaire. Subsequently, a
temporary employee with experience in advertising sales was hired to manage the sale
and booking of advertising space, and a firm was hired on a temporary basis to post the
advertising on the buses. The in-house program has been successful in achieving
budgeted revenues for FY 2004. Staff intends to continue the in-house program and
select a posting firm on a permanent basis.
Discussion
In February 2004, the City published Notices Inviting Bids to providebus advertisement
posting services and on-board schedule rack stocking in accordance with City
specifications. Bids were received and publicly opened and read on March 10, 2004. Bid
forms were mailed to nine vendors and notices were advertised in accordance with City
Charter and Municipal Code provisions. The following two bids were received:
Vendor Year 1 Year 2 Year 3 Total
J. Perez Associates, Inc. $132,600 $138,528 $144,563 $415,691
God Bless America Corp. $186,912 $191,160 $191,160 $569,232
The bids were evaluated based on the qualifications of the bidder and their staff,
suggested methodology to accomplish the work, and cost effectiveness. Staff has
evaluated the bid submitted by J. Perez Associates, Inc. and finds that it meets City
specifications. Staff recommends J. Perez Associates, Inc. to provide bus advertisement
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posting services and on-board schedule rack stocking based on the City’s best bidder
criteria, as set forth in Santa Monica Municipal code Section 2.24.072 as follows:
1. J. Perez Associates, Inc. submitted the most competitive price for services;
2. J. Perez Associates, Inc. demonstrated a better understanding of the project as
reflected in their scope of work and proposed methodology;
3. J. Perez Associates, Inc. has over twelve years of advertising posting experience
with various transit agencies including the Big Blue Bus, Orange County Transit
Authority, North San Diego Transit, Norwalk Transit, Long Beach Transit, Omni
Transit in San Bernardino, and the Los Angeles Metropolitan Transit Authority.
4. And, J. Perez Associates, Inc. has the staffing capacity and an experienced project
management team that meet the bid requirements.
Budget/Financial Impact
This is a three-year contract. Funding for the contract is included in account number
41643.522545in the City's FY2003-04 budget. Budget authority to fulfill contract payment
obligations in subsequent years will be included in each annual proposed City budget.
Recommendation
It is recommended that City Council award Bid #2872 to J. Perez Associates, Inc. at
specified prices, and authorize the City Manager to execute a three-year contract with
them to provide bus advertisement posting services and on-board schedule rack stocking.
Prepared By: Diane Howell, Purchasing Agent
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Richard Chiu, Buyer
Stephanie Negriff, Director of Transit Services
Janeene de Martinez, Assistant Director, Transit Finance and Business
Services
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