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SR-07-28-2015-3FCity Council Report Sunda ttlonief 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 • . u u = - r- MVT4 =# 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 1 of 2 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 r.. Edward F. Kllng,.Director 7/17/2015 Elaine M Polachek, Asst City M419 §O015 2of2 Reference: Agreement No. 10141 (CCS)