SR-082807-1Bc7-~
;tYO, City Council Report
Santa Monica
City Council Meeting: August 28, 2007
Agenda Item:
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Award of Bid for Advertisement Posting and Schedule Rack Stocking
Services
Recommended Action
Staff recommends that the City Council award Bid #2925 to J. Perez Associates, Inc. to
provide bus advertisement posting and on-board schedule rack stocking services, at
specified rates, for athree-year period with two additional one-year renewal options.
The estimated expenditure for the first year is $199,704. The total estimated
expenditure for the five-year term is $1,061,064.
Executive Summary
Bids were reviewed for a posting service that maintains the interior and exterior postings
and stocks the on-board display systems of all Big Blue Buses. This function is part of
the advertising sales program and is required to meet the goals of providing customer
service information to passengers. A cost analysis was completed to investigate the
benefits of moving this function in-house. The analysis (see attachment) shows that
continuing to outsource this component is the most cost-effective measure at this time.
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Discussion
For the past three years the Big Blue Bus (BBB) has directly sold interior and exterior
advertising space using in-house city staff for the advertising sales function. This
program produces yearly revenue of over $1.6 million. The timely posting and removal
of the advertisements is an essential component of the program. In addition, to provide
excellent customer service, the BBB has set a goal of keeping customer information
available to everyone who rides by stocking maps and schedules, newsletters,
informational take-ones and other information on each bus.
Service improvements over the past few years have further developed the interior car
card sales program and the BBB has experienced a significant increase in the quantity
of passenger information that needs to be placed on the buses. J. Perez Associates,
Inc. would be responsible for ensuring this vital customer information is available to the
customers and that BBB meets the contract deadlines of its advertisers.
Bids were reviewed and staff recommends awarding the bid to J. Perez Associates, Inc.
to provide bus advertisement posting and on-board schedule rack stocking services for
the entire fleet of the BBB. In a means to measure the cost-effectiveness of their bid,
the BBB drafted an in-house program using various elements of their bid.
In summary, staff evaluated several factors:
Cost -The cost for interior and exterior posting by J. Perez Associates, Inc. is
$199,704 for the first year. The cost for providing the same services (staffing, overhead
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and supervision in-house) would be $272,926.49 for the first year, a 37% increase over
the J. Perez Associates, Inc. bid (see. attachment).
J. Perez Associates, Inc. Bid -The J. Perez Associates, Inc. bid states that all work
will be performed by two full-time workers, who will be managed by two supervisors. No
additional assistance from City staff is required
Performance -Staff revised the service specifications with this new bid. The new
scope increased the number of postings to allow for more interior car card sales and to
meet the increased number of schedules and take-ones occurring due to service
improvements. Measures of accountability will continue to be in place to ensure proper
performance and adherence to the standards of the BBB.
Flexibility/Availability of Workforce - Understanding the fast pace and quick
turnaround time required within the outdoor advertising arena is vital to this operation.
As the current service provider, J. Perez Associates, Inc. has proven its ability to adapt
to BBB's schedule and accommodate any sudden requests. In addition, J. Perez
Associates, Inc. must provide additional trained technicians at times when the workload
requires extra help to complete-projects with tight deadlines.
Staff's review showed that the utilization of the contracted services allows for more
effective and efficient use of resources. This report recommends that Council award the
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bid to J: Perez Associates, Inc. for athree-year period with two additional one-year
renewal options.
This recommendation does not preclude Council from future decisions it may make on
citywide policies regarding service contracting. The recommendation continues the past
three-year practice of contracting interior and exterior posting services and is consistent
with a policy of supplementing, rather than supplanting, permanent City positions, as no
City employee positions will be lost as a result of this recommendation.
Vendor Selection
In April 2007, the City published Notices Inviting Bids to provide bus advertisement
posting and on-board schedule rack stocking services in accordance with City
specifications. Bid forms were mailed to 15 vendors and notices were advertised in
accordance with City Charter and Municipal Code provisions. Two bids were received
and publicly opened on May 14, 2007 as follows:
Vendor J. Perez Associates, Inc. Sign Central
Year 1 $199,704 $1,097,630
Year 2 205,956 1,149,910
Year3 212,208 1,201,690
Year 4 218,472 1,260,270
Year 5 224,724 1,320,150
Total $1,061,064 $6,029,650
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Bids were evaluated based upon competitive pricing, project management, cost-
effectiveness, and vendor experience. Based upon these criteria, J. Perez Associates,
Ina is recommended as the best bidder.
Budget/Financial Impact
Fiscal Year 2007-08 budget authority in the amount of $199,704 is available at account
41643.522545, "Advertising -Exterior Bus Panels Printing." Budget authority for
subsequent years will be included in each annual proposed City budget.
Prepared by:
Dan Dawson, Transit Customer Relations Administrator
of Transit Services
Attachment:
Attachment A -Contract vs. In-House Services Cost Comparison
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Approved: Forwarded to Council:
J. Perez Assoicates, Inc.
Attachment A
Contract vs. In-House Services Cost Comparison
(Bid #zszs>
In-House
of Services 48
rervisor 48
Ming Installer 48
Ming Installer 48
~rhead -Includes hiring, training, payroll, personnel administralion,health benefits,
orms, tools, safety equipment, and vacation/sick/holiday leaves.
_. , a
Bid requires vendor to provide trained [echicians
requires vendor to provide its employees working facilities and storage space.
Equ,~mgn~and Materials ~, .;.; ~ ~ z ~ i ~, : :.
Bid requires vendor to provide wrrugated plastic boards and pickup truck.
J. Perez Associates, Inc. Year 1 Price: $199 704.00
nator 10 52 $40.35 $20,982.00
Assist 10 52 $39.32 $20,446.40
7lnstaller 40 52 $29.29 $60,923.20
7lnslaller 40 52 $29.29 $60,923.20
rtion and Prep Tech 40 52 $29.29 $60,923.20
Total: $224,198.00
ate includes frinoe bene0ls.
Tfainigg f4!'.Pasting Rgpe .. .. ....: . ..._._.; ,.. ... ,.__.....:.;)S
Office $1,000.00
Vinyl (t2ining by outside vendor) $1,500.00
Total: $2,500.00
ork..$P.$c6/Office GS,ta~ Up,costl... <. ~ . .. ..: . .. .... _,. '
Month
Cost
Value .
400 sgft 12 $1,400.00 $16,800. 00
Work Space Qty. Cost Value
72"tables 2 $123.00 $246. 00
3.5' x 6' x 24"shelves 2 $215.50 $431. 00
Office Space Qty. Cost Value
25 sq ft cubicle 1 $518.50 $518. 50
Computer 1 $1,700.00 $1,700. 00
6RW printer 1 $1,500.00 $1,500. 00
Offce supplies 1 $800.00 $800. 00
Telephone usage 1 $600.00 $600. 00
Cell phone 1 $617.99 $617. 99
Total: $23,213. 49
EquipmeaDand Mafer~ala _.,,~,.,.
- , -
Qly.
Cost Value
Corrugated plastic boards 229 $35.00 $8,015.00
Electric cart 1 $15,000.00 $15,000.00
Total: $23,015.00
In-House Cost Estimated for Year 1; $272,926.49
JPA In•HOUSe* Difference % Difference
Yeari $199,704.00 $272,926.49 ($73,222.49) -37%
Year2 $205,956.00 $267,951.69 ($61,995.69) -30%
Year3 $212,208.00 $293,680.16 ($81,472.16) -38%
Year4 (optional) $218,472.00 $321,928.15 ($103,456.15) -47%
Years (optional) $224,724.00 $352,944.93 ($126,220.93) -57%
Total $1,061,064.00 $1,509,431.42 $448,367.42
In-house cost for Years 2 through 5 are based on estimated inflat/on /actors.