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SR 07-25-2017 3J Ci ty Council Report City Council Meeting : July 25, 2017 Agenda Item: 3.J 1 of 4 To: Mayor and City Council From: Edward King, Director , Big Blue Bus, Transit Maintenance Subject: Transit Air Conditioning Repair Service Recommended Action Staff recommends that the City Council: 1. Award Bid #4290 to Bus Systems Unlimited, a Califor nia -based company, for the repairs and maintenance of the air -conditioning systems on transit buses and Fire Department heavy apparatus; 2. Authorize the City Manager to negotiate and execute an agreement with Bus Systems Unlimited, in an amount not to e xceed $173,250 for one year with four additional one year renewal options to extend on the same terms and conditions, for a total amount not to exceed $866,250, with future year funding contingent on council budget approval. Executive Summary Staff recom mends the award of Bid #4290 to Bus Systems Unlimited to provide repair and maintenance service to air -conditioning systems on transit buses and Fire Department heavy apparatus as required by Big Blue Bus. The award of the bid would enable the City to main tain the air -conditioning systems on its transit buses and Fire vehicles to ensure the safety and comfort of transit customers and Fire Department personnel. The annual expenditure for this bid is not to exceed $173,250 for one year, with four one -year ren ewal options on the same terms and conditions. The total expenditure for the five -year term is not to exceed $866,250. Background Big Blue Bus (BBB) maintain s air -conditioning (AC) systems on its fleet of transit buses to original equipment manufacturer r ecommendation s in order to maintain the performance of the systems at optimum efficiency . On May 7, 2014, staff solicited a bid that included two one -year r enewal options . Contract number 4015 was signed June 30, 2014 , with Bus Systems Unlimited for repair s to the bus AC systems at BBB . On August 2 of 4 26, 2014, Council directed staff to review contracted services throughout the City and identify situations where contracted services could be brought in -house. In order to ensure continuation of the air -conditioni ng service during the review, 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 t he City Manager ’s authority . On January 13, 2015, Council approved staff’s recommendation to award Bid 4139 to Bus Systems Unlimited for repair and maintenance service for air -conditioning systems on transit buses because of the specialized expertise that is required to do this work. When the first renewal option for the contract was executed on June 9, 2015, the contract number was changed from 4015 to 10073.T he total expenditure for the three - year term with the renewal options was not to exceed $525,000. The vendor’s service quality has met contractual obligations with BBB for the duration of the contract. Discussion The City’s fleet of transit buses and Fire Department heavy apparatus require s both major and routine AC system maintenance and repair ser vices. To ensure proper air - conditioning system performance and maximum passenger comfort, BBB performs routine preventative maintenance inspections (PMIs) by testing the AC system for functionality and cleaning the air filters. The vendor , as required by BBB , performs scheduled in -depth AC PMI’s and any needed repairs. The combination of staff and contract AC maintenance and repair enable s BBB to maintain the air -conditioning systems on its transit buses and Fire Department vehicles to original equipment manufacturer standards and provide a comfortable onboard environment for customers and staff year -round. Method of Service On January 13, 2015, Council adopted a Policy for Hiring Contracted or As -needed Staff for Non -professional Services. This policy i ncludes criteria under which contracting for a public service is appropriate. Council approved contracted staff for this 3 of 4 service as an activity requiring technical expertise that City staff does not provide. The service has not substantially changed since that analysis. Th e AC systems equipment must be installed to manufacturer specifications by certified technicians. Providing the necessary training to certify current City employees as technicians with an expertise too narrow to benefit the rest of the or ganization would be costly and ultimately an inefficient use of city funds compared to contracting with an outside vendor. Staff recommends that bid #4290 be awarded to Bus Systems Unlimited for air - conditioning repair and maintenance services related to BBB’s fleet of transit buses and Fire Department’s heavy apparatus, based on the bid price submitted by this vendor and their previous work history with the City. Vendor/Consultant Selection On May 11 , 2017 , the City published Notices Inviting Bids to fur nish and provide air - conditioning repair and maintenance service for transit buses and Fire heavy apparatus in accordance with City specifications. 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. Eight -hundred and fifty vendors were notified, of which 11 vendors downloaded the bid. Two bids were received and opened in public on May 25, 2017 per the table below: Cost Estimate BUS SYSTEMS UNLIMITED @ $45/hr. COMPLETE COACH WORKS @ $85/hr. Estimate - 3,500 hours per year $ 157,500.00 $ 297,500.00 10% Contingency $ 15,750.00 $ 29,750.00 Contract 5yr Total $ 866,250.00 $ 1,636,250.00 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. Bus Systems Unlimited has a posi tive history providing air -conditioning system repair services for Big Blue Bus and is able to meet all of the City requirements in addition to being the lowest bidder. Based on these criteria, Bus Systems Unlimited, the lowest 4 of 4 bidder, is recommended as th e best bidder. Financial Impacts and Budget Actions The contract to be awarded to Bus Systems Unlimited is for an amount not to exceed $866,250. Funds of $173,250 are available in the FY 2017 -18 budget in the Big Blue Bus and Fire Departments. The contra ct will be charged to the following accounts: C410106.589000 $ 160,050 01312.569290 $ 13,200 $ 173,250 Future year funding is contingent on Council budget approval. Prepared By: Getty Modica, Transit Maintenance Officer Approved Forwarde d to Council Attachments: A. Bus Systems Unlimited - Oaks B. June 9, 2015 Staff Report to exercise 1st option (Web link) C. Jan. 13, 2015 Staff Report criteria for contracted labor (Web link) D. June 9, 2015 Staff Report Appr ove 1st renewal of contract 4015 (Web link) REFERENCE:    Agreement  No. 10510   (CCS)