SR-08-28-2012-3CCity Council Meeting: August 28, 2012
Agenda Item: 3Cs
To: Mayor and City Council
From: Edward F. King, Director of Transit Services
Subject: Transit Facilities Maintenance
Recommended Action
Staff recommends that City Council award Bid No. 3096 to Harder Brake Lathe &
Electric, a Santa Monica, California -based company, to provide facilities maintenance
services for $300,000 per year with two additional one -year renewal options in the
amount of $318,000 and $337,080, for a total amount not to exceed $955,080.
Executive Summary
Preventive maintenance inspection service and repair of the 100,000 plus square feet of
Big Blue Bus facilities is necessary to keep the buildings and grounds safe, operating to
original equipment manufacturer recommendations and specifications, and to ensure
compliance with federal, state and City codes and regulations. Harder Brake Lathe &
Electric is recommended to provide this service following a formal bid process. The bid
award is for a one -year period with two additional one -year renewal options. The total
estimated expenditure for the three -year term would be $955,080.
Background
The Big Blue Bus is a 24 hour, 7 day per week operation with 103,598 square feet of
built facilities. A minimum of three journeyman -level facility technicians are needed to
adequately perform the inspections and repairs on building HVAC, plumbing and
electrical systems. Although sections of BBB facilities have undergone refurbishment
and repair, long -term planning of preventive maintenance has not been conducted
consistently on site. In addition, the BBB facilities maintenance staffing level is not
sufficient to perform maintenance services.
E
Discussion
BBB onsite facilities consist of three major buildings (the Operations Building, the Fuel
and Wash Facility, and the Transit Maintenance Facility), tangential components
(parking lots, underground facilities) and grounds (landscape, utilities). The Fuel
Dispensary at 5t" and Olympic, Blue: The Transit Store, and the Transit Mall make up
BBB off -site facilities. To ensure compliance with original equipment manufacturer
warranties and to maintain functionality, facility subsystems require scheduled
maintenance. Building systems such as HVAC, plumbing, in- ground hoists, methane
detection system, fuel systems and electrical need to be maintained to manufacturer
specification to minimize deterioration and to maximize safety for both staff and the
general public.
Due to the hours of operation, the scale of facilities and the technical complexity of
alternative fuel dispensing and maintenance infrastructure, the facilities maintenance
function requires an ongoing preventative maintenance program. Each section of the
BBB Campus would be assigned inspection and status /condition reports on a recurring
basis with timed intervals in ratio to usage, industry standards, and age.
BBB staff explored the possibility of the City's Public Works Department Facilities
Maintenance Division staff providing BBB facilities maintenance service on a long -term
and comprehensive basis. In March, 2012, BBB staff submitted a proposal to the
Facility Maintenance staff for review and discussion. Based on the extensive BBB scope
of work, the City's Facility Maintenance staff was unable to take on additional
responsibilities and declined to bid.
The award to Harder Brake Lathe & Electric would enable the Big Blue Bus to move
forward with an all- inclusive approach to maintenance and repairs of the facility and
grounds and ensure that they remain functional and are maintained to industry
standards.
2
Vendor Selection
In June 2012, the City published Notices Inviting Bids to provide facilities maintenance
as required by the Big Blue Bus in accordance with City specifications. The bid was
posted on the City's on -line bidding site, and notices were advertised in the Santa
Monica Daily Press in accordance with City Charter and Municipal Code provisions.
One hundred and sixty -nine vendors were notified; twenty -three prospective vendors
downloaded the bid specifications. One bid was received and publicly opened on June
22, 2012. The bid was evaluated based on the price, product availability, selection, and
quality of material, positive history with vendor and compliance with City specifications.
Based on these criteria, Harder Brake Lathe & Electric is recommended as the best
bidder to provide facilities maintenance in accordance with the City specification.
A cost analysis has been completed to compare the economic impact of providing
facility maintenance services in -house with contracted services. The analysis shows
that outsourcing is the most cost - effective measure. As shown in Attachment A, the
estimated cost for providing facility maintenance services in- house, including staffing
and overhead is $398,156 the first year. This is 39% higher than Harder Brake &
Electric's costs. In -house costs for years two through three are estimated at 35 % -30%
higher than those of Harder. The utilization of contracted services allows for more
effective and efficient use of resources and is consistent with the policy of
supplementing, rather than supplanting permanent City positions.
3
Harder
Elect.
In- House*
including 3%
COLA
Difference
% Difference
Year 1
$286,000.00
$398,156.50
$112,156.50
-39%
Year +6%
$303,160.00
$408,415.00
$105,255.00
-35%
Year 3 + 6%
$321,349.00
$418,971.00
$97,622.00
-30%
Total
$910,509.00
$1,225,542.50
($315,033.50)
3
Financial Impacts & Budget Actions
The amount of the purchase order to be awarded to Harder Brake Lathe & Electric for
the three -year term is $955,080. Funds in the amount of $300,000 are available in the
FY 2012 -13 budget at account number 41651.555015. Budget authority for the
subsequent years will be requested in the following 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: Forwarded to Council:
Edward F. King Rod Gould
Director of Transit S rvices City Manager
Attachment: Attachment A
12
Attachment A
Contract vs. In -House Services Cost Comparison
(Bid #2934)
HARDER BRAKE AND ELECTRIC
Personnmlt _ ..............._._�.. _�..
�Hr/Wk
Hr/Wk
Weeks Pay Rate
Amount
Facility Tech /Electrician 40 52 $55.00
$114,400.00
Facility Tech/Electrician 40 52 $55.00
$114,400.00
Facility Tech /Electrician 20 52 $55.00
$57,200.00
Total
$286,000.00
Overhead- Includes hiring, training, payroll, personnel administration, health benefits,
40
uniforms, tools, safety equipment, and vacation /sick/holiday leaves.
$36.12
Based on 2080 hours
$116,690.00
TMIning� ....._. _., ....._._....,....w.:....,.,..._ _.w., ___....___- _....___.,..
Bid requires vendor to provide trained journeyman level technicians
WorkApacetOlffce `u .....,...._.w.. - , ..`
Six buildings including parking lot and grounds
Bid requires vendor to provide all labor to perform inspections and repairs and some pads.
BBB will provide the majority of materials.
Harder Brake Lathe and Electrical year price $286,000.00
In -House
FTE Electrician II's Salaries & wages+ Fringe Benefits
sting based on 2080 hours (1680 Direct Labor Hours)
$119,706.00
$119,706.00
$119,706.00
In -House Cost Estimated for Year 1: $398,156.50 1 $408415.00 1 $418,971.00
Hr/Wk
Weeks
Pay Rate
Amount I
Amount
II (1 FTE)
40
52
$36.12
$113,759.00
$116,690.00
II (1 FTE)
40
52
$36.12
$113,759.00
$116,690.00
II (1 FTE)
40
52
$36.12
$113,759.00
$116,690.00
II (.5 FTE)
20
52
$36.12
$56,879.50
$58,345.00
FTE Electrician II's Salaries & wages+ Fringe Benefits
sting based on 2080 hours (1680 Direct Labor Hours)
$119,706.00
$119,706.00
$119,706.00
In -House Cost Estimated for Year 1: $398,156.50 1 $408415.00 1 $418,971.00
Harder Elect
- In- House
including 3%
-COLA
Difference
%Difference
Year 1
$286,000.00
$398,156.50
$112,156.50
-39%
Year +6%
$303160.00
$408,415.00
$105,255.00
-35%
Year +6%
$321,349.00
$418,971.00
($97,622.00
-30%
Total
$910509.00
$1,225,542.50
$315,033.50