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SR 05-22-2018 3B City Council Report City Council Meeting: May 22, 2018 Agenda Item: 3.B 1 of 3 To: Mayor and City Council From: Susan Cline, Director, Public Works Subject: Award Contract to Beacon Mortuary, Inc. for Mortuary and Transportation Services Recommended Action Staff recommends that the City Council: 1. Award RFP #155 for Mortuary and Transportation Services to Beacon Mortuary, Inc., a California-based company, for mortuary, decedent preparation, and decedent transportation services; 2. Authorize the City Manager to negotiate and execute an agreement with Beacon Mortuary, Inc., in an amount not to exceed $85,000 for one year, with four additional one-year renewal options in the amount of $85,000 on the same terms and conditions, for a total not to exceed $425,000 over a five-year period, with future year funding contingent on Council budget approval. Executive Summary The City-owned Woodlawn Cemetery, Mausoleum and Mortuary provides mortuary services via contract, including transporting decedents from their place of death to Woodlawn Cemetery for embalming, cremation, and other related services. Staff recommends an agreement to be awarded to Beacon Mortuary, Inc. for a total not to exceed $425,000 over a five-year period for mortuary services, decedent preparation, and decedent transportation services. Discussion The City purchased the Woodlawn Cemetery in 1897 and the Mausoleum in 1972. Woodlawn Cemetery, Mausoleum and Mortuary started providing mortuary services in June 2011 to provide the community with the convenience of arranging for end-of-life services, including embalming and cremation, at one location. While cemetery operations and maintenance are conducted by City staff, mortuary services are both specialized and sporadic, making City staffing cost prohibitive. Since July 1, 2016, 2 of 3 Woodlawn Cemetery, Mausoleum and Mortuary, has contracted with Beacon Mortuary, Inc. for these services. The City’s contract with Beacon Mortuary expires on June 30, 2018. The contract amount is below Council threshold and did not require Council approval. Woodlawn Cemetery, Mausoleum and Mortuary must have the ability to respond around-the-clock to any location when a death occurs, to transport decedents from their place of death to Woodlawn Cemetery, prepare decedents for burial or death, and provide other mortuary related services. This service has always been contracted out since the City began providing mortuary services in 2011 due to specialty licensing requirements for embalmers and due to variable transportation demand services. Vendor/Consultant Selection On January 4, 2018, the City issued a Request for Proposals (RFP) for mortuary services, decedent preparation, and decedent transportation services. The RFP 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. Ten vendors downloaded the RFP. One firm responded. Upon receiving only a single bid, staff verified the RFP was distributed to qualified firms. Based on the proposal’s distribution and based on the pricing received, staff was satisfied that reissuing the RFP would not attract additional responses and better pricing. Pricing is consistent with previous year pricing. The response to the RFP was reviewed by a selection panel of staff from the Public Works Department. Evaluation was based on the following criteria: previous experience, qualifications, capacity and skill, ability to deliver, and compliance with City specifications and scope of work. Based on these criteria and criteria in SMMC 2.24.073, staff recommends Beacon Mortuary, Inc. as the best qualified firm to provide mortuary services, decedent preparation, and decedent transportation services based on Beacon’s area of expertise and qualifications. The services that Beacon Mortuary, Inc. would provide would be paid for by the City but are immediately recovered from the client families during the funeral arrangement 3 of 3 conference as part of the cemetery’s revenues. The charges are based upon a “per decedent” charge from the vendor. Financial Impacts and Budget Actions The contract to be awarded to Beacon Mortuary, Inc. is for an amount not to exceed $425,000. Funds of $85,000 are available in the FY 2018-19 proposed budget in the Public Works Department. The contract will be charged to account 37641.556100 and 37641.556110. Future funding is contingent on Council budget approval. Prepared By: Sybille Moen, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Oaks Initiative Disclosure Form REFERENCE: Agreement NO. 10681 (CCS)