SR-06-12-2012-3KCity Council Meeting: June 12, 2012
Agenda Item:
To: Mayor and City Council
From: Edward F. King, Director of Transit Services and Culver City Bus Fleets
Subject: Ad and Public Information Posting for Big Blue Bus and Culver City Bus
Fleets
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional service agreement with J. Perez Associates, Inc., a California -
based company, in the amount of $786,468 for the posting of exterior and interior
advertisements, placement of interior car cards, and stocking of on -board schedule
racks for Big Blue Bus and Culver City Bus.
Executive Summary
The Big Blue Bus (BBB) utilizes a contracted vendor to post revenue - generating
advertisements on its bus fleet. In addition, the vendor stocks the interior schedule
racks with public information and bus timetables. BBB recently became the advertising
concessionaire for Culver City Bus. The current agreement with J. Perez Associates,
Inc. expires on June 30, 2012. Staff recommends that J. Perez Associates, Inc. provide
posting of exterior and interior advertisements, placement of interior car cards, and
stocking of on -board schedule racks for BBB and Culver City Bus at a cost of $786,468
in order to provide continuity of service and oversight of a single contract for both transit
agencies.
Background
To help offset operational costs, the Big Blue Bus (BBB) operates an in- house, revenue -
generating advertising program. Since 2004 BBB has directly sold interior and exterior
advertising space using in -house City staff for the advertising sales function. This
program produces yearly revenue between $1 -1.5 million. The neat and timely posting
and removal of the advertisements is an essential component of the program. BBB has
set a goal of keeping customer information continually available through stocking maps
and schedules, newsletters, informational take -ones and other information on each bus.
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The most efficient manner in which to install ads, restock bus schedules and place other
public information on the buses is in the evening and overnight hours when the majority
of the fleet is out of service and centralized at the bus yard. Staff performed a fiscal
comparison between hiring employees and using a vendor to provide posting services.
The results indicated it was more economical to engage an outside vendor to perform
this evening and overnight work. On August 28 2007, City Council awarded the bid to J.
Perez and Associates, Inc. to provide these services for a five -year term.
Discussion
Since the current bus advertising and public information posting bid was awarded in
2007, the City has entered into a two -year Memorandum of Understanding (MOU) with
Culver City Bus on June 14 2011 wherein the Big Blue Bus became its advertising
sales concessionaire. As required in the MOU, Big Blue Bus staff coordinates the
posting of such ads on the Culver City Bus fleet of approximately 50 buses at its bus
yard. Therefore the Big Blue Bus is now responsible for coordinating the installation of
advertising and public information on a fleet of over 250 buses on two separate
properties during evening and overnight hours
Contractor /Consultant Selection
In April 2012, the City posted a request for bus advertising and public information
posting service proposals on the City's Planet Bid website in accordance with City
Charter and Municipal Code provisions. Evaluation criteria included experience working
with similar scopes of work and transit systems of similar size, the qualifications of the
bidder and their staff, suggested methodology to accomplish the work and cost
effectiveness. Eighteen vendors downloaded the specifications, however only one bid
was received, from J. Perez Associates, Inc.
Staff recommends J. Perez Associates, Inc. a Long Beach -based company, which has
successfully provided these services to the Big Blue Bus in the past. To increase
coordination of the service between the agencies, staff is recommending that J. Perez
Associates, Inc. perform work at both properties. J. Perez Associates, Inc. has been in
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business since 1992 and currently provides posting service to transit agencies across
the country in cities including Atlanta, Miami, Detroit, Cleveland, San Diego, and Los
Angeles.
J. Perez Associates, Inc. would perform all work with one full -time worker, who would be
managed by one supervisor with one administrative staff helping coordinate. City staff
would provide schedules and directions to J. Perez Associates, Inc. staff, but would not
participate in the actual posting activities.
The cost for interior and exterior posting by J. Perez Associates, Inc. is $259,596.00 for
the first year. Performed in- house, these services would cost approximately $272,694
for the first year and increase by a minimum of four percent per year each year
thereafter (see Attachment A), primarily due to the need for additional staffing and
higher fringe benefits rates to perform the same services.
Financial Impacts & Budget Actions
The agreement to be awarded to J. Perez Associates, Inc. for the three -year term is
$786,468. Funds in the amount of $259,596 are available in account number
41643.522545 in the FY 2012 -13 adopted budget. Budget authority for subsequent
years will be requested in each budget cycle for Council approval. Future funding is
contingent upon Council approval.
Prepared by: Linda Gamberg, Acting Customer Relations Administrator
Approved:
Edward F. King
Director of Transit Services
Attachment A: Cost Comparison
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Forwarded to Council:
Rod Gould
City Manager
Attachment A
Attachment A
Contract vs. In -House Services Cost Comparison
(Bid #2925)
Cost Comparison: Bus Ad Posting (Big Blue Bus & Culver City, Buses)
J. Perez Associates, Inc. In -House .
Weeks
48
Overhead - Includes hiring, training, payroll, personnel administration, health benefits,
uniforms, tools, safety equipment,liability insurance and vacation /sick/holiday leaves.
Bid requires vendor to provide its employees working facilities and storage space.
CosGCOni adson 2012'
HrIWk
.ice.. W
Pa Rate*
JPA
I In- House **
I Difference
I % Difference
Year1
$259,596.00
$272,694.15
($13.098.15)
-5°!
Year2
$262,152.00
$286,328.85
$24.176.85
-9 °.5
Year
$264,720.00
$300,645.30
$35,925.30
-14%
1 $33.96
$70,630.35
Posting Installer (evening)
20
1 52
Total
$617,868.00
1 $859,668.30
($73,200.30)
52
**
Would increase if COLA and fringe increases
TLmInS�±§ Pdst4HReES�_._.��
Office
HrIWk
.' �
Weeks
.ice.. W
Pa Rate*
' + ? ,w
Value
Night supervisor
15
1 52
1 $61.01
$47,585.54
Coordinator
10
1 52
$56.67
$29,468.56
Admin Assist
10
52
$44.01
$22,883.85
Posting Installer (evening)
40
1 52
1 $33.96
$70,630.35
Posting Installer (evening)
20
1 52
1 $33.96
$35,315.18
Prep Tech (evening)
20
52
$33.96
$35,315.18
Qty-
Cost
Value
25 sq ft cubicle
1
$518.50
Total:
$241,198.65
* Pa rate includes fringe benefits.
TLmInS�±§ Pdst4HReES�_._.��
Office
w:
$1,000.00
Application/materials training
400 sq ft storage space
12
$1,000.00
$24,000.00
Work Space
Total:
$2,000.00
Waili!�Spae610fif dd (5tatt
y
Month Cost
Value
400 sq ft storage space
12
$2,000.00
$24,000.00
Work Space
city.
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
B &W printer
1
$1,500.00
$1,500.00
Office supplies
1
$500.00
$500.00
Telephone usage
1
1 $600.00
$600.00
Total:
$29,495.50
In -House Cost Estimated for Year 1: $272,694.15
Reference Contract No.
9595 (CCS).