SR-11-24-2015-3A
City Council
Report
City Council Regular Meeting: November 24, 2015
Agenda Item: 3.A
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To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Government & Community Relations
Subject: Award Bid for Advertising Posting Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4216 to Outdoor Service Providers, Inc., a California-based company for
bus advertisement installation services;
2. Authorize the City Manager to negotiate and execute a contractual service agreement
with Outdoor Service Providers, Inc., in an amount not to exceed $231,000 for one year,
with two additional one-year renewal options in the amount of $468,945, on the same
terms and conditions for a total amount not to exceed $699,945 over a three -year
period, with future year funding contingent on Council budget approval.
Executive Summary
Big Blue Bus utilizes a contracted vendor to post revenue -generating advertisements on
its bus fleet and on Culver CityBus fleet. The vendor also installs BBB informational
interior car cards on BBB’s fleet. Currently, this program produces an average yearly
revenue of approximately $2 million. Staff recommends that Outdoor Service Providers
Inc. provide bus advertising installation services for Big Blue Bus and Culver CityBus at
a cost not to exceed $699,945 for three years.
Background
In 2004, to help offset operational costs, Big Blue Bus (BBB) implemented a revenue-
generating advertising program selling interior and exterior advertising space using in-
house City staff for the advertising sales function. The installation function was
previously performed by City staff. However, in an effort to improve efficiency and
reduce costs, the City engaged an outside vendor to perform installation services. On
August 28, 2007, the City Council awarded the bid to J. Perez Associates, Inc. to
provide these services for a five-year term.
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On June 14, 2011, the City entered into a Memorandum of Understanding (MOU) with
the City of Culver City wherein Big Blue Bus became the advertising sales
concessionaire for Culver CityBus. As required in that MOU, which expires on June 30,
2016, BBB staff coordinates the posting of ads on the Culver CityBus fleet of
approximately 50 buses at its bus yard, along with BBB’s own fleet of 199 buses.
Therefore, BBB is now responsible for coordinating the installation of advertis ing on
approximately 250 buses between two separate properties. Currently, this program
produces an average yearly revenue of approximately $2 million.
On June 12, 2012, the City posted another request for bus posting services for both Big
Blue Bus and the Culver CityBus. J. Perez Associates, Inc. was awarded the bid for a
three-year term. 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 23rd Council meeting, staff noted that the
Request for Proposal’s 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”.
Staff recommended that Council reject the two bids and reissue a new Notice Inviting
Bids in order to obtain the best bidder for this project. Additionally, in order to continue
services in the interim, Staff entered into a Contractual Services Agreement No. 10142
with J. Perez Associates, Inc. for six months, to expire on December 31, 2015, in an
amount not to exceed $85,680.
Discussion
Since the bus advertising posting bid award in 2012, BBB staff realized a significant
change in the way customers access information aligned with the City’s own change in
how it provided information; shifting away from paper consumption. As a result, BBB
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decided to reduce the number of paper schedules placed on the buses. In 2013, BBB
notified J. Perez Associates, Inc. that its installation services for bus schedules and
take-ones were no longer needed. City staff now performs these installations as needed
and by doing so has saved the City over $20,000 per year. Additionally, with the arrival
of the Expo rail line, TAP mobile validators on board, real-time signs at bus stops, and
other new technologies, it was determined that BBB will require more interior car card
space to promote upcoming projects, and therefore would no longer sell interior car card
space to advertisers. Currently, vendor installation services are only needed to post
BBB interior car cards and exterior advertising on BBB buses and Culver City buses.
Vendor/Consultant Selection
On April 23, 2015, the City published Notices Inviting Bids to furnish and deliver bus
advertising installation services as required by Big Blue Bus. The bid was posted on the
City's online bidding site, and notices were advertised in the Santa Monica Daily Press
in accordance with City Charter and Municipal Code provisions. Of the 1,104 vendors
that were notified, 43 vendors downloaded the bid. Two bids were received and publicly
opened on September 9, 2015, per attachment A. Bids were evaluated based on the
criteria in SMMC 2.24.072, including price, previous experience, capacity and skill,
ability to deliver and provide future maintenance or service, and compliance with City
scope of work. Staff recommends Outdoor Service Providers, Inc. (OSP). OSP’s price
per unit cost is considerably lower than J. Perez Associates, Inc. for both inte rior and
exterior postings. Additionally, their experience and a check of references proved
favorable. Based on these criteria, Outdoor Service Providers, Inc., the lowest bidder,
is recommended as the best bidder for the bus advertising installation services in
accordance with City specifications.
Financial Impacts and Budget Actions
The contractual service agreement to be awarded to Outdoor Service Providers, Inc. is
for an amount not to exceed $699,945. Funds in the amount of $231,000 are included in
the FY 2015-16 budget in the Big Blue Bus Department. The agreement will be charged
to the following accounts:
41643.522545 Ad Sales BBB $195,000
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41643.522550 Ad Postings CCB $36,000
Total $231,000
Prepared By: Teri Plummer, Administrative Staff Assistant
Approved
Forwarded to Council
Attachments:
A. F4216 BUS AD INSTALLATION (Bid Results)
B. August 28 2007 Council Meeting (Web Link)
C. June 14, 2011 Council Meeting (Web Link)
D. June 12, 2012 Council Meeting (Web Link)
E. June 23, 2015 Council Meeting (Web Link)
F. July 28, 2015 Council Meeting (Web Link)
ATTACHMENT A
BID #: 4216 BID CLOSE DATE:9/11/2015
PRICING
EXTERIOR PRICE PER UNIT
INTERIOR PRICE PER UNIT
PERCENTAGE DISCOUNT ON ADDITIONAL
SUPPLIES
INTERIOR CAR CARD CLIPS
PAYMENT TERMS
ADDITIONAL CHARGES AND FEES NOT
LISTED
OTHER
PERIOD 2 (FIRST ANNUAL RENEWAL
OPTION)
PERIOD 3 (SECOND ANNUAL RENEW AL
OPTION)
OAKS
ARIZONA
LIVING W AGE
BUSINESS LICENSE
Bid Results
SAME PRICE, TERMS, AND
CONDITIONS OFFERED
EXPIRES 6/30/16
$ 28.00
$ 9.00
0%
NET 30
2% INCREASE
2% INCREASE
BID DESCRIPTION: PROVIDE BUS AD INSTALLATION SERVICE AS REQUIRED BY THE BIG BLUE BUS
NONE
NET 30
NONE
OUTDOORS SERVICE PROVIDERS
LONG BEACH, CA
J PEREZ ASSOCIATES , INC
CYPRESS, CA
$ 18.00
$ 4.00
EXPIRES 6/30/16
SAME PRICE, TERMS, AND
CONDITIONS OFFERED
COMPLETE
INCOMPLETE INCOMPLETE
COMPLETE
RESPONSE RESPONSE
COMPLETE COMPLETE
RESPONSE RESPONSE
$0 / UNIT
0%
$0.50/UNIT
Reference:
Agreement No. 10219
(CCS)