SR 04-24-2018 3F
City Council
Report
City Council Meeting: April 24, 2018
Agenda Item: 3.F
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To: Mayor and City Council
From: Edward King, Director, Big Blue Bus, Transit Maintenance
Subject: Bus Body Repairs and Painting Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4318 to Carlos Guzman Inc., a California-based company, to provide
body repair and painting of transit coaches;
2. Authorize the City Manager to negotiate and execute an agreement with Carlos
Guzman Inc., in an amount not to exceed $703,098 for one year, with four (4)
additional contract years, in the amount of $2,812,392 on the same terms and
conditions for a total amount not to exceed $3,515,490 over a five-year period
which includes a $319,590 10% contingency with future year funding contingent
on City Council budget approval.
Executive Summary
Staff recommends the award of Bid #4318 to Carlos Guzman Inc. to provide bus body
repairs and painting services as required by Big Blue Bus (BBB). The award is for a
specified hourly labor rate and materials price plus applicable sales taxes for a five -year
period with successive contract years at the same price, terms, and conditions as the
first contract year. The expenditure for this bid is not to exceed $3,515,490 which
includes a 10% contingency, over a five-year period.
Background
The body repair and painting of transit buses are necessary to address normal wear
and tear and accident damage during the 12 -year useful life of a bus. This service
ensures that buses with damaged exteriors can be repaired and returned to service in a
timely manner. On June 23, 2015, Council awarded bid #4183 to Carlos Guzman for an
amount not to exceed $1,950,000 over a three -year period. The resulting agreement
expires on June 30, 2018, requiring BBB to solicit bids for body repairs and painting
services for its fleet of transit buses.
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Discussion
The City’s fleet of transit buses require body repair and painting services for buses that
become damaged through normal wear and tear or accidents. It is essential that repairs
be made promptly to preserve acceptable customer service levels. BBB staff performs
minor body repairs in-house; however, repairs and painting resulting from major
accidents exceeds BBB’s capabilities, workspace, and staffing levels. The amount of
work needed to keep the fleet in an as-new condition is equivalent to nine Full Time
Employee’s (FTE’s) time.
BBB currently has one full time employee performing minor body repairs. Transit buses
requiring extensive repairs and painting are sent to an outside body shop that can repair
multiple buses simultaneously. In addition, the outside body shop has a drive-in paint
booth that can accommodate 30’, 40’, and 60’ buses. Per Environmental Protection
Agency (EPA) regulations, extensive painting must be performed in a paint booth.
BBB’s facility does not have a paint booth because of its close proximity to a school.
Due to the number of buses requiring body repair and paint services to keep BBB’s fleet
in an as-new condition, the space required, and the EPA requirement of a paint booth
staff recommends that overflow body repair and painting services be awarded under Bid
#4318.
Method of Service
On August 26, 2014 staff was directed by Council to review contracted services
throughout the City and identify situations where contracted services could be brought
in-house. Per Attachment A of the January 13, 2015 Staff Report titled “As -Needed and
Contract Staffing Review Report,” Transit Bus Body Painting and Repair services were
identified as meeting the criteria for contractual services due to specialized technology
and expertise, space requirements, capital equipment requirements, and excessive risk
associated with painting buses.
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Based on the number of buses requiring body repair and paint services to keep the fleet
in an as-new condition, bringing this service in-house would require a minimum of nine
(9) additional FTEs, two additional work bays and a paint booth to accommodate 30’,
40’, and 60’ coaches. Bid #4318 requires vendors to have a fully enclosed paint booth in
their facility in accordance with Federal, State, and Local rules and regulations, and
requires vendors to have certified painters and technicians on staff. The bid also
requires vendors to have their own repair facility, which may be subject to approval by
BBB staff.
Vendor Selection
On February 1, 2018, the City published Notices Inviting Bids to provide bus body
repairs and painting services in accordance with City specifications. 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. Seven (7)
vendors downloaded the bid. Proposals from Carlos Guzman Inc. and McCray
Enterprises were received and publicly opened on February 21 2018.
Cost Estimate Carlos Guzman McCray Enterprises
Estimate - 5- year period $ 3,195,900.00 $ 3,467,750.00
10% Contingency $ 319,590.00 $ 346,775.00
Contract 5yr Total $ 3,515,490.00 $ 3,814,525.00
Bids were evaluated based on the criteria in SMMC 2.24.07 2, which include price,
previous experience, ability to deliver, quality of product and compliance with City
specifications. In evaluating the bids, BBB staff requested two paint samples from each
vendor, and performed three tests to gauge quality of paint work: a gloss test, an
orange peel test, and a pull test. Both vendors met BBB’s expectations on all tests,
though Carlos Guzman Inc.’s sample scored higher on the gloss test. BBB staff
reviewed the cost proposal submitted by Carlos Guzman and compared it to the
previous agreement and found the cost increase to be reasonable. Carlos Guzman Inc.
has had a positive history of providing bus body repairs and painting services for Big
Blue Bus and is able to meet all of the City’s requirements in addition to being the
lowest bidder. Based on these criteria, Carlos Guzman Inc. is recommended as the best
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bidder and staff recommends that Council award Bid #4318 to Carlos Guzman Inc. for
bus body repair and painting services. The total expenditure for the five -year period is
not to exceed $3,515,490.
Financial Impacts and Budget Actions
The contract to be awarded to Carlos Guzman Inc. is for an amount not to exceed
$3,515,490 which includes a 10% contingency. Funds of $703,098 are available in the
FY 2018-19 Approved Budget in the Big Blue Bus Department. The contract will be
charged to 60600008.550012. Future year funding is contingent on Council budget
approval.
Prepared By: David Nanjo, Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. 6/23/15 Council approval bid 4183
B. Carlos Guzman Oaks
REFERENCE:
Agreement No. 10664
(CCS)