SR-07-28-2015-3FCity Council Report
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City Council Regular Meeting: July 28, 2015
Agenda Item:.-
To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Government & Community Relations
Subject: Reject Bid No. 4193 to provide Bus Advertising Installation Services for Big
Blue Bus
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Staff recommends that the City Council:
1. Reject all bids for Bid #4193 (Bus Advertising Installation Service).
2. Direct staff to reissue a bid in order to obtain the best bidder for Bus Advertising
Installation Service.
3. Authorize staff to execute an interim contractual service agreement with J. Perez
Associates, Inc., in an amount not to exceed $85,680 for six months (July 1, 2015 —
December 31, 2015).
Executive Summary
Big Blue Bus (BBB) utilizes a contracted vendor, J. Perez Associates, Inc., to post exterior
and interior advertisements on its bus fleet as well as exterior advertisements on the Culver
City bus fleet. The J. Perez Associates, Inc. contract expired on June 30, 2015. The City
published Notices Inviting Bids and two proposals were received. J. Perez Associates, Inc.,
and Outside Services Providers, Inc. (OSP). Staff recommends that City Council reject
these two bid responses since the Bid Fee Schedule Chart did not allow for a clear
determination of best bidder and authorize an interim agreement with J. Perez Associates to
continue services while the work is re -bid.
Discussion
BBB has an existing contract with J. Perez Associates, Inc. to provide advertising posting
services such as installation of advertising on the sides of buses and inside the buses. The
contract expired on June 30, 2015. To continue these services, on April 23, 2015, the City
published Notices Inviting Bids to secure advertising posting services for one year, with an
option for two additional years. Two vendors responded to the bid, Outside Services
Providers, Inc. (OSP) and J. Perez Associates, Inc. OSP was selected as the lowest bidder
based on rate per unit pricing. A Staff Report was submitted for the June 23, 2015 council
meeting recommending that Council award Bid #4193 to OSP. However, prior to the June
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23 Council meeting, staff noted that the Request for Proposals' Fee Schedule chart allowed
for ambiguity as it requested bidders to provide pricing for three different options: Rate per
Unit, Flat Monthly Fee for Entire Fleet, and Flat Yearly Fee for Entire Fleet. Although both
bidders provided pricing as requested, it was difficult to determine which proposal was
indeed "the lowest bid." While one bidder may have been the lowest bidder under one
pricing metric, the other may have been the lowest under a different metric.
Staff recommends that City Council reject the two bids and direct staff to issue a new Notice
Inviting Bids in order to obtain the best bidder for this project. The new fee schedule request
will specify the precise pricing metrics in which to bid. Additionally, in order to continue ad
posting services, staff recommends that City Council allow staff to enter into an interim
contractual service agreement with J. Perez Associates, Inc. to extend the term of
Agreement on a month -to -month basis not to exceed six months.
Financial Impacts and Budget Actions
The interim contractual service agreement to be awarded to J. Perez Associates, Inc. is
for an amount not to exceed $85,680, for an extended term expiring December 31,
2015. Funds are available in the FY 2015 -16 budget in the Big Blue Bus Department.
The interim contractual service agreement will be charged to the following accounts:
41643.522545 (Ad Posting — BBB) $64,260
41643.522550 (Ad Posting — Culver City) $21,420
Total: $85,680
Prepared By: Teri Plummer, Administrative Staff Assistant
Approved Forwarded to Council
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Edward F. Kllng,.Director 7/17/2015 Elaine M Polachek, Asst City M419 §O015
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Reference:
Agreement No. 10141
(CCS)