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sr-062612-3fCity of City Council Report Santa Monica® City Council Meeting: June 26, 2012 Agenda Item: 3 F To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Bus Paint and Body Repair Recommended Action Staff recommends that the City Council award Bid No. 3093 to Carlos Guzman, Inc., a California -based company, to provide body repair and painting of transit coaches. The award shall be for a one -year term for $600,000 with two additional one -year renewal options. The total amount for the three -year term is $1,800,000. Executive Summary Body repair and painting of transit coaches are necessary to address normal wear and tear during the useful life of a bus. Carlos Guzman, Inc. is recommended to provide this service following a formal bid process. The bid award is for a specified hourly labor and material price plus applicable sales tax for a one -year period with two additional one - year renewal options with the same price, terms and conditions as the first renewal year. The total annual estimated expenditure is $600,000 with the three -year term estimated at $1,800,000. Discussion The BBB requires body repair and painting services for transit coaches that become damaged through normal wear and tear or accidents. It is essential that repairs be made promptly to preserve acceptable customer service levels. BBB staff performs minor body repairs in- house; however, major accident and bus painting requirements exceed in -house body and repair capabilities for work space and staffing. 1 Vendor Selection In April 2012, the City published Notices Inviting Bids to provide bus paint and body repair as required by the Big Blue Bus in accordance with City specifications. The bid was posted on the City's on -line bidding site, Planet Bids, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Four bids were received and publicly opened on April 30, 2012 per Attachment A. Bids were evaluated based on price and compliance with City specifications, ability to meet minimum qualifications, paint samples and references. Two bidders did not meet minimum qualifications and were disqualified. Based upon the above criteria and substantial difference in rates per hour, Carlos Guzman, Inc. is recommended as the best bidder to provide bus paint and body repair. Financial Impacts & Budget Actions The amount of the purchase order to be awarded to Carlos Guzman, Inc. for the three - year term is $1,800,000. Funds in the amount of $600,000 are included in the FY 2012- 13 budget at account 41651.555011. Budget authority for subsequent years will be requested in each budget cycle for Council approval. Future funding is contingent upon Council approval. All funds used for this purchase order come from funding sources specifically dedicated for transit uses. Prepared by: Getty Modica, Transit Maintenance Officer Approved: Edward F. King Director of Transit Attachments: Attachment A —Pricing 2 Forwarded to Council: Rod Gould City Manager ATTACHMENT A BID 3093 BID DESCRIPTION: PROVIDE BUS PAINT AND BODY REPAIR AS REQUIRED BY THE BIG BLUE BUS BID CLOSING DATE: 5 -1 -2012 DISQUALIFIED ABC COMPANIES AND L &J AUTO BODY & PAINT SUBMITTED BIDS BUT DID NOT PROVIDE A PAINT SAMPLE. Carlos Guzman, Inc. SIGNAL HILL, CA DIVERSIFIED SERVICES MIRA LOMA, CA ABC COMPANIES COSTA MESA, CA L &J AUTO BODY AND PAINT LAWN DALE, CA PRICING BODY AND REPAIR LABOR PER HOUR $32.00 $71.00 DISQUALIFIED FOR NOT SUBMITTING ALL BID REQUIREMENTS DISQUALIFIED FOR NOT SUBMITTING ALL BID REQUIREMENTS REFINISH AND PAINTING LABOR PER HOUR $32.00 $51.00 PAINT AND MATERIALS PER HOUR $35.00 COST+ 10% MECHANICAL REPAIR PER HOUR $40.00 $86.00 OVERTIME BODY AND REPAIR LABOR PER HOUR $48.00 $71.00 OVERTIME REFINISH AND PAINT LABOR PER HOUR $48.00 $51.00 OVERTIME MECHANICAL REPAIR PER HOUR $60.00 $86.00 PICKUP AND DELIVERY PER UNIT $100.00 $300.00 RENEWAL YEAR TWO INCREASE NO INCREASE 5% RENEWAL YEAR THREE INCREASE NO INCREASE 5% DISQUALIFIED ABC COMPANIES AND L &J AUTO BODY & PAINT SUBMITTED BIDS BUT DID NOT PROVIDE A PAINT SAMPLE.