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SR-06-09-2015-3J- 10900 City it Report city nl %anda Home$' City Council Regular Meeting: June 9, 2015 Agenda Item: <,� To: Mayor and City Council From: Edward King, Director of Transit Services (BBB) Subject: Transit Air Conditioning Repair Service Recommended Action Staff recommends that the City Council authorize the City Manager to exercise the first year renewal option to contractual service agreement #4015 with Bus Systems Unlimited, a California -based company, to provide transit air conditioning maintenance and repair services in an amount not to exceed $175,000 for one year, with one additional one -year renewal option under the same price, terms and conditions for a total amount not to exceed $525,000 over the three -year period, with future year funding contingent on Council budget approval. Executive Summary Staff recommends exercising renewal options for up to two additional years of contractual services agreement #4015 with Bus Systems Unlimited, to provide transit air conditioning maintenance and repair services at specified labor rates set forth in the agreement. Background Big Blue Bus (BBB) must maintain transit air conditioning systems to original equipment manufacturer recommendations in order to keep buses at comfortable temperatures. In May 2014, staff solicited a bid that included multi -year renewal options. In the midst of the selection process, on August 26, 2014, staff was directed by Council to review contracted services throughout the City and identify situations where contracted services could be brought in- house. Because continuation of the service was necessary during the review time, staff structured the agreement to include a one -year term with two one -year renewal options, pending the outcome of the study and Council action. The bid was awarded by contractual services agreement for the first year under the authority of the City Manager. 1 of 4 On January 13, 2015, Council agreed with staff's determination that this service is best contracted out because of the specialized expertise that is required, allowing staff to exercise the renewal options. With the renewal options, the total expenditure for the three -year term is $525,000 and, as a formal bid, requires Council approval. Discussion The City's fleet of transit buses requires both major and routine air conditioning system maintenance and repair services, depending upon the age of the bus fleet and bus type. To ensure proper air conditioning system performance and maximum passenger comfort, BBB performs routine preventive maintenance inspections (PMIs) on transit bus air conditioning (AC) systems, by testing the AC system for functionality and cleaning the filters. The scheduled and in -depth AC PMIs and all required repairs are performed by Bus Systems Unlimited. The air conditioning maintenance and repair service would enable BBB to maintain the transit air conditioning systems to original equipment manufacturer standards and provide a comfortable onboard environment yearround. Method of Service On January 13, 2015, Council adopted a Policy for Hiring Contracted or As- needed Staff for Non - professional Services. This policy includes criteria under which contracting for a public service is appropriate. Council approved contracted staff for this service as an activity requiring technical expertise that City staff cannot or does not provide. This equipment must be installed to manufacturer specifications by certified technicians. Thus each employee completing this work is required to undergo specific training on an ongoing basis to complete work accurately. Providing the service in house would require building a new and specialized expertise within City staff that is not part of its core mission, applies only to that specific activity, and thus provides lower return in service provided on investment of financial and other resources. This renewal is at the same price and terms as the initial agreement. Staff will re- review 2of4 the transit air conditioning maintenance and repair service needs according to the Council adopted policy following the end of this contract term. Vendor /Consultant Selection In April 2014, the City published Notices Inviting Bids to provide transit air conditioning repair service as required by the Big Blue Bus in accordance with City specifications. The bid was posted on the City's online bidding site, Planet Bids, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Two bids were received and publicly opened on May 21, 2014 per Attachment A. Bids were evaluated based on competitive pricing and vendor experience. Based on these criteria, Bus Systems Unlimited was recommended and a Contractual Services Agreement was executed for a one -year period, July 1, 2014 through June 30, 2015, with options for up to two additional one -year renewals requiring Council approval. Staff recommends exercising the renewal options of agreement #4015 with Bus Systems Unlimited for up to two additional years, to provide transit air conditioning repair service at specified labor rates set forth in the agreement. 3 of 4 Financial Impacts & Budget Actions The renewal option to be awarded to Bus Systems Unlimited is for $175,000, with one additional one -year renewal option in the amount of $175,000 for an amended agreement amount not to exceed $525,000. Funds are included in the FY 2015 -16 Proposed Capital Improvement Program budget in account C410106.589000. Future year funding is contingent on Council budget approval. Prepared By: Getty Modica, Transit Maintenance Officer Approved Forwarded to Council 7 Edward Director of Trani NH116 Elaine M Polachek, Interim City M6r1' OOrI5 Attachments: A. F4139 TRANSIT AC REPAIR SERVICE (XLSX) B. January 13, 2015 Staff Report (web link) Hne lEl BID RESULTS ATTACHMENT -A BID In 4139 BID CLOSE DATE: 5121/2014 BID TITLE: PROVIDE REPAIR SERVICES AND MISC. PARTS FOR TRANSIT BUS AIR CONDITIONING SYSTEMS AND OTHER RELATED SERVICES AS REQUIRED BY THE BIG BLUE BUS REQUIREMENTS Sus SystemSVnlitited. ' Sun,Vplley, CA .'TKServleet, Yemen, CA, - PRICING: CAN COMPLY BUSINESS LICENSE PROVIDED PROVIDED MINIMUM QUALIFICATIONS HOURLY LABOR RATE: $ 50.00 EXPERIENCE STATEMENT $ 100.00 NON COLLUSION AFFIDAVIT PROVIDED OVERTIME HORLY LABOR RATE: $ 60.00 OAKS INCOMPLETE $ 150.00 ARIZONA PROVIDED PROVIDED TRAVELTIME HORLY RATE: $ Per PROVIDED $ 60.00 PROVIDED Per HOUR TRAINING HOURLY LABOR RATE: $ 50.00 PROVIDED $ 100.00 PRICE TO PERFORM MANUAL PMI A/C SERVICE ON THE FOLLOWING ON BOARD SYSTEMS: (cost includes ports nndlabar) Sutrak Wide AC35 Roof Unit: No. of hours: 4.0 cost: $ 200.00 No. of hours: 2.3 cost: $ 295.00 Thermo King Intelligent I Roof Unit: No. of hours: 3.0 cos[: $ 150.00 No. of hours: 2.3 cost: $ 295.00 Thermo King In[elligne[ II R6 Series Roof Unit: No. of hours: 4.0 cost: $ 200.00 No. of hours: 2.3 cost: $ 295.00 Thermo King Intelligent II TIT M60 Series Rear Unit: No. of hours: 4.0 cost: $ 200.00 No. of hours: 2.3 cost: $ 295.00 Thermo King TE Series All Electric HVAC Rear Unit: No. of hours: 3.01 cost: 1 $ 150.00 No of hours: 2.3 cost $ 295.00 Carrier under Floor Unit: No of hours: 4.0 cost: $ 200.00 No. of hours: 2.3 cost: $ 295.00 Cost plus Increase percentage on misc. parts related to but not including the a hove scope of work: Cost Plus: 15% Cost Plus: 0% PAYMENT TERMS: 30 DAYS NET 30 RENEWAL OPTIONS: YEAR2: SAME PRICE, TERMS, AND CONDITIONS SAME PRICE, TERMS, AND CONDITIONS YEAR 2: SAME PRICE, TERMS, AND CONDITIONS SAME PRICE, TERMS, AND CONDITIONS REQUIREMENTS COMPLIANCE INSURANCE CAN COMPLY CAN COMPLY BUSINESS LICENSE PROVIDED PROVIDED MINIMUM QUALIFICATIONS CAN COMPLY CAN COMPLY EXPERIENCE STATEMENT PROVIDED PROVIDED NON COLLUSION AFFIDAVIT PROVIDED PROVIDED OAKS INCOMPLETE INCOMPLETE ARIZONA PROVIDED PROVIDED FY 2014 -15 UVING WAGE PROVIDED PROVIDED SUBCONTRACTOR INSURANCE COMPLIANCE CERT. PROVIDED PROVIDED DEBARMENT CERTIFICATION PROVIDED PROVIDED Reference: Agreement No. 10073 (CCS)