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SR 06-11-2019 3D City Council Report City Council Meeting: June 11, 2019 Agenda Item: 3.D 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Award Agreement for Citywide Roofing Contractor Services Recommended Action Staff recommends that City Council: 1. Award Bid #4377 to Best Contracting Services, Inc., Danny Letner Inc., dba Letner Roofing and Maverick Roofing, Inc., all California-based companies, for roofing contractor services for the Public Works Department; 2. Authorize the City Manager to negotiate and execute an agreement with Best Contracting Services, Inc. in an amount not to exceed $150,000 for two years, with one additional three-year renewal option in the amount of $225,000, on the same terms and conditions, for a total amount not to exceed $375,000 over a five-year period, with future year funding contingent on Council budget approval; 3. Authorize the City Manager to negotiate and execute an agreement with Letner Roofing, Inc., in an amount not to exceed $200,000 for two years, with one additional three-year renewal option in the amount of $380,650, including a 15% increase for year three and a 10% increase for years four and five, for a total amount not to exceed $580,650 over a five-year period, with future year funding contingent on Council budget approval; 4. Authorize the City Manager to negotiate and execute an agreement with Maverick Roofing, Inc., in an amount not to exceed $110,000 for two years, with one additional three-year renewal option in the amount of $165,000, on the same terms and conditions, for a total amount not to exceed $275,000 over a five-year period, with future year funding contingent on Council budget approval. Summary To maintain the structural integrity, safety and appearance of City facility roofs, the Facilities Maintenance Division contracts out roofing repair and replacement services. Staff recommends a split award for Bid #4377 as follows: Best Contracting Services, Inc., would be the primary contractor for roofing projects that contain a waterproofing component for a total amount not to exceed $375,000 over a five-year period; Letner Roofing would be the primary contractor for large-scale roofing repairs and replacements for a total amount not to exceed $580,650 over a five-year period; and 2 of 4 Maverick Roofing Inc., would be the primary contractor for minor a nd urgent repairs, for a total amount not to exceed $275,000 over a five-year period. Discussion The Facilities Maintenance Division contracts out approximately 30 roofing projects annually. These projects include repairs, replacements, leak mitigation, and installing coatings, gutters, roof drains and skylights. It is necessary to contract out these jobs as in-house staff do not possess the necessary equipment, specialized skills, training and licensing. To ensure the City has access to the best pricing, prompt response times and applicable project expertise, staff recommends splitting the award between Best Contracting Services, Inc., Letner Roofing and Maverick Roofing, Inc. Best Contracting Services, Inc. would primarily provide roofing services such as leak mitigation and waterproofing as Best Contracting has satisfactorily provided such services for the City over the past three years. Based on Letner Roofing’s extensive experience with multi- million dollar projects, Letner Roofing would provide services for the City’s large-scale projects that are often long-term, intricate and require a large workforce. Maverick Roofing, Inc. has the lowest minimum call-out charge and fastest response time, thus Maverick Roofing would perform urgent and minor repairs that require a prompt response time and are small-scale in nature. Vendor/Consultant Selection Bid Data Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 1/31/2019 City's Online Bidding Site Santa Monica Daily Press 28 5 2/22/2019 Submittals Received Selection Criteria Best Contracting Services, Inc. $85.00/hour Municipal Code SMMC 2.24.072 $160.00/hour (OT) Commercial Roofing Systems, Inc. $109.00/hour Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. $153.00/hour (OT) 3 of 4 Concrete Construction $130.00/hour Best and Lowest Bidders Best Contracting Services, Inc., Letner Roofing and Maverick Roofing, Inc. $177.00/hour (OT) Letner Roofing $104.84/hour $137.45/hour (OT) Maverick Roofing, Inc. $55.69/hour $72.88/hour (OT) Best Bidder Justification Best Contracting Services, Inc. has satisfactorily provided roofing contractor services for the City for the past three years. In addition, Best Contracting Services, Inc. has continued to provide competitive pricing and dependable service. Letner Roofing was the most experienced bidder by over 20 years, and their bid submittal yielded impressive references. Letner Roofing has successfully completed multi-million-dollar projects for the University of Southern California, Cedars-Sinai Medical Center, Irvine School District and the University of California, Los Angeles. These organizations confirmed that Letner Roofing provided satisfactory work and remained budget-conscious. Maverick Roofing, Inc. has provided roofing contractor services for the City, as a sub contractor, for the past year. Maverick Roofing has provided fast response times and the most competitive pricing. Based on these criteria, Best Contracting Services, Inc., Letner Roofing and Maverick Roofing, Inc., are recommended as the best bidders. *Lowest bids were based on the general pricing total (regular time and overtime) Financial Impacts and Budget Actions Staff seeks authority to award agreements with Best Contracting Services, Inc., Letner Roofing and Maverick Roofing, Inc. for roofing contractor services. Agreement Requests Contractor Request Amounts FY 2019-20 Budget Public Works Department Account # Total Contract Amounts Best Contracting Services, Inc. $75,000 01500020.529480 $375,000 Letner Roofing $100,000 01500020.529480 $580,650 Maverick Roofing, Inc. $55,000 01500020.529480 $275,000 Future year funding is contingent on Council budget approval 4 of 4 Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Best Contracting Services Oaks Initiative Disclosure Form B. Letner Roofing Co. Oaks Initiative Disclosure Form C. Maverick Roofing Oaks Initiative Disclosure Form REFERENCE: Contract No. 10854 - 10856 (CCS)