SR 07-12-2016 3E
Ci ty Council
Report
City Council Meeting : July 12, 2016
Agenda Item: 3.E
1 of 6
To: Mayor and City Council
From: Martin Pastucha, Director , Public Works, Water Resources
Subject: Award Contractual Services Agreements for Water/Wastewater Facilities and
Equipment Painting Services
Recommended Action
Staff recommends that the City Co uncil:
1. Award Bid #4252 to Pearl Painting, a California -based company, as primary vendor
for painting services for Water/Wastewater facilities; and secondary vendor for painting
services for fire hydrants and Water/Wastewater equipment such as vault co vers; and
U.S. National Corp., a California -based company, as primary vendor for painting
services for fire hydrants and Water/Wastewater equipment; and secondary vendor for
painting services for Water/Wastewater facilities.
2. Authorize the City Manager to negotiate and execute an agreement with Pearl
Painting , in an amount not to exceed $480,000 over a five -year period on the same
terms and conditions , with future year funding contingent on Council budget approval.
3. Authorize the City Manager to neg otiate and execute an agreement with U.S.
National Corp., in an amount not to exceed $367,000 over a five -year period including
10% annual increases, with future year funding contingent on Council budget approval.
Executive Summary
The City contracts for painting services in order to properly maintain its water treatment
and wastewater processing facilities, reservoirs, booster pumps and emergency
generator stations along with approximately 1,400 fire hydrants and assorted equipment
located throughout Sant a Monica including air vents, piping and water meter vault
covers. In April 2016, the City solicited bids for such services. After reviewing the six
bids received, staff recommends a split bid award: Pearl Painting would provide facility
painting servic es on an hourly rate basis for a total not to exceed amount of $480,000
over a five -year period; and U.S. National Corp. would provide painting services for fire
hydrants and vault covers on a fixed -price basis for a total not to exceed amount of
$367,000 over a five -year period. Each contractor would serve as a back -up to the
other for their respective services.
Due to the amount of painting and travel time required to paint facilities and equipment
located throughout Santa Monica and two sites in We st Los Angeles (Arcadia Water
2 of 6
Plant and Charnock Well Field), contractor services are required to supplement the
efforts of the City's Paint Shop. Therefore, the recommended actions are consistent
with the Council -approved Policy for Hiring Contracted or As -Needed Staff for Non -
Professional Services and meet the criteria for space requirement s and
capital/equipment requir ement s .
Discussion
The City owns and maintains water and wastewater equipment located throughout
Santa Monica including piping, air vent s, meter vault lids and approximately 1,400 fire
hydrants. In addition, the City maintains water and wastewater treatment facilities
located in Santa Monica and West Los Angeles including the Arcadia Water Treatment
Plant (1228 S. Bundy Drive), Charnock W ell Field (11375 Westminster Avenue), Moss
Avenue Pumping Station (1621 Appian Way), Santa Monica Urban Runoff Recycling
Facility (SMURRF, 1625 Appian Way), various reservoirs, booster pumps and
emergency generator stations. Structures are painted every t en years and fire hydrants
every two years or on an as -needed basis depending on observed conditions to prevent
corrosion and deterioration, and preserve the aesthetics of the City's infrastructure.
Painting services are also required for new equipment in stallations.
A portion of painting costs for wastewater treatment facilities would be covered by the
City of Los Angeles per existing maintenance agreements including 100%
reimbursement for work completed at the Moss Avenue Pumping Station and 50%
reimbur sement for the SMURRF .
Method of Service
On January 13, 2015, Council adopted a Policy for Hiring Contracted or As -Needed
Staff for Non -Professional Services (Attachment B). This policy includes criteria under
which contracting for a public service is ap propriate. Staff has reviewed the service
needs, and recommends providing painting services through contractors due to the
following criteria:
1. Capital / Equipment Requirements - paint truck(s) would be required along with
purchase of associated equipm ent such as sprayers, ladders , and safety gear. Paint
storage and parking would also need to be identified or created at Water/Wastewater
locations. The current City Yards location, where Water/Wastewater operations are
3 of 6
housed, is already at capacity . It w ould be problematic to add additional parking and
additional space for equipment at this location.
2. Risk - some painting would occur in confined spaces and subterranean locations as
well as painting piping and tanks in elevated locations, painting mecha nical equipment
and painting in the vicinity of water treatment chemicals.
Vendor Selection
On May 4, 2016, the City published Notices Inviting Bids to provide painting services for
Water/Wastewater facilities and equipment in accordance with City speci fications. 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. 38 vendors downloaded the bid. Six bids were received and publicly opened
on May 16, 2016 per Attachment A.
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver, quality of product, and compliance with City specifications.
Pearl Painting offered the lowest hourly rates and has provided Water/Wastewater
painting services satisfactorily over the past three years. U.S. National Corp. offered
the lowest "per -piece" pricing for fire hydrant painting and the second lowest pricing on
vault cover painting. Despit e annual 10% price increases, U.S. National Corp.'s per -
piece pricing would remain the lowest of the six bidders each year over the proposed
five -year agreement period. By splitting the bid award, the City would achieve the best
pricing on painting servic es whether quoted on an hourly rate or per -piece basis; and
achieve an estimated $72,468 savings over a five -year period versus awarding this bid
to a single contractor. Each contractor would also be able to serve as the back -up to
the other in case of av ailability or response time issues. U.S. National Corp is a larger
painting company able to deploy up to eight painters and three trucks to Santa Monica /
West Los Angeles if needed; while Pearl Painting is a sole proprietorship based locally
in Santa Mon ica.
Staff verified that the Painting and Decorating (C33) contractor’s licenses for both
vendors are current, active , and in good standing. Staff also checked references with
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the Inland Empire Utilities Agency and Coachella Valley Unified School Distric t and
found both contractors had satisfactorily performed similar painting work in a timely and
cost -efficient manner where quality was maintained throughout.
Based on these criteria, Pearl Painting is recommended as the best bidder to perform
painting s ervices on Water/Wastewater facilities and other work quoted on an hourly
rate basis; and U.S. National Corp. is recommended as the best bidder to perform
painting services on fire hydrants and vault covers on a fixed per -piece pricing basis.
Alternatives
If the City were to provide painting services using in -house staff , staff estimates a cost
difference of $80,798 for Year 1, including $53,000 one -time for paint truck and start -up
equipment and $177,798 ongoing for staff ing and equipment ($230,798 total Year 1
cost ). To bring the service in -house 2 FTE Painter would be needed along with start -up
equipment such as paint truck, sprayers, ladders, and safety gear. The proposed not to
exceed amount for contractors Pearl Painting and U.S. National Corp. is $150,000.
Over the five -year agreement, in -house costs are estimated at $1,035,446 versus
contractor costs estimated not to exceed $847,000 , a difference of $188,446 . With
prevailing wage now applicable to City maintenance agreements greater than $15,000
established after April 2015 per changes to the California Labor Code, the cost gap
between contractor services and in -house staff has narrowed significantly for painting
services. The City's previous Water/Wastewater painting contractor rate was $28 per
hour for fiscal years 2013/14 to 2015/16 under Santa Monica Living Wage requirements
compared to current bids of $42.20 per hour for Pearl Painting and $75 per hour for
U.S. National Corp. at prevailing wage rates.
The City's Facilities Maintenance Pain t Shop is staffed with two full -time painters who
are responsible for painting the City's inventory of approximately 170 structures. Over
the past three years, Facilities painters have devoted an average of 275 hours per year
to painting Water/Wastewater sites to supplement the efforts of contractor services.
However, requesting additional painting services for fire hydrants, vault covers and
Water/Wastewater facilit ies including extensive piping would put an undue burden on
5 of 6
staff and lead to significant delays for other City Departments requesting Facilities
painting services.
Should the City opt to hire additional painters for the purpose of painting water and
wastewater facilities and equipment, the agreements with Pearl Painting and U.S.
National Cor p. could be reduced in value and/or term.
Financial Impacts and Budget Actions
The agreement to be awarded to Pearl Painting is for an amount not to exceed
$480,000. Funds of $90,000 are available in the FY 2016 -17 budget in the Public
Works Department. The agreement to be awarded to U.S. National Corporation is for an
amount not to exceed $367,000. Funds of $60,000 are available in the FY 2016 -17
budget in the Public Works Department. The agreement will be charged to the following
accounts. Future year funding is contingent on Council budget approval.
Account Number Pearl Painting
Amount
U.S. National Corp.
Amount
Total
25671.555010 $10,000 $50,000 $60,000
25672.555010 $25,000 $0 $25,000
25673.555010 $25,000 $0 $25,000
31661.555010 $10,000 $10,000 $2 0,000
31661.566450 $10,000 $0 $10,000
31661.566631 $10,000 $0 $10,000
TOTAL $90,000 $60,000 $150,000
6 of 6
Prepared By: Kevin Nagata, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Attachment A - Bid #4252 Results - Water/Wastewater Painting Services
B. Attachment B - Staff Report - Contract and As -Needed Staffing Review Report -
1/13/2015 - Item 8 -C
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10
PA
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2 TR
U
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1
PA
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1 TR
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5
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PA
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3 TR
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3
PA
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2 TR
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8
PA
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4 TRUCKS8 PAINTERS 3 TRUCKS
YE
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Y
E
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N
O
N
O
N
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RESPONSE
20
YE
A
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2
0
YE
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2
6
YE
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3
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5
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GE
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1.
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PL
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6:00 PM ‐ 7:00 AM.
SA
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& SUN ANY WEEK DAY. ANY TIME AFTER 5:00 PM
$9
7
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4
7
PE
R
HO
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$5
6
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4
3
PE
R
HO
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LO
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D
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PR
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F
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$5
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5
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$
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9
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PER HOUR$85.00 PER HOUR PREVAILING WAGE REQUIRED
$6
4
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9
8
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HO
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$4
2
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PE
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1
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$
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8
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PER HOUR$75.00 PER HOUR
PR
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$1
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8
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$8
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$
9
8
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FIRE HYDRANT $50.00 PER FIRE HYDRANT PREVAILING WAGE REQUIRED
$1
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PR
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ST
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PAINTINGU.S. NATIONAL CORP.
BI
D
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:
PR
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CL
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,
CALIFORNIAPANORAMA CITY, CALIFORNIA
BI
D
#:
42
5
2
BI
D
CL
O
S
E
DA
T
E
:
5/
2
0
/
1
6
AJ
FI
S
T
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CO
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P
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IN
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PA
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PAGE 1 OF 1
Reference:
Contract No. 10338
(CCS)