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SR 01-25-2022 3B City Council Report City Council Meeting: January 25, 2022 Agenda Item: 3.B 1 of 4 To: Mayor and City Council From: Edward F King, Director, Department of Transportation, Transit Maintenance Subject: Award Bid and Enter into Agreement with Coastal Building Services Inc. for Department of Transportation Custodial Services Recommended Action Staff recommends that the City Council: 1. Award Bid # 4419 to Coastal Building Services, Inc. to provide custodial services for the Department of Transportation; 2. Authorize the City Manager to negotiate and execute an agreement with Coastal Building Services Inc., in an amount not to exceed $1,377,277, including a $125,207 contingency, over a five-year period, with future year funding contingent on Council budget approval. Executive Summary The Big Blue Bus (BBB) Division of the Santa Monica Department of Transportation (DOT) operates 24 hours a day, seven days per week with a campus that includes its operations/administrative building, maintenance buildings (maintenance shop, offices, and training facility) and fuel and wash facility. Each of these buildings require ongoing custodial services which includes daily cleaning in all offices, restrooms, breakrooms, and public space areas. Because of the industrial nature of BBB and the volume of employees within the facilities, ongoing detailed cleaning is required to maintain sanitary and safe working conditions. In addition, cleaning standards for all facilities have been updated since the beginning of the pandemic to ensure that all facilities are sanitized and safe. Staff recommends that Bid #4419 be awarded to Coastal Building Services and that an agreement be negotiated and executed for custodial services at the Department of 3.B Packet Pg. 20 2 of 4 Transportation’s facilities for a five-year period with the total five-year contract amount not to exceed $1,377,277 which includes a 10% contingency and a 2% cost escalator. Discussion The DOT’s bus facility includes 95,000 square feet across three buildings that see high foot traffic and industrial use. The facility’s heavy use requires consistent detail cleaning on an ongoing weekly and monthly basis. The custodial services currently provided include regular cleaning and disinfecting of all offices, restrooms, breakrooms, and public high-touch spaces. In addition, the vendor must clean several types of flooring that require consistent care using special equipment. This contract would ensure that working conditions at BBB’s facilities remain clean and sanitary and that no slip hazards arise from material spills or lack of cleaning. The vendor would be responsible for providing qualified personnel trained in best practices for custodial services. BBB has historically contracted custodial services due to the need for cleaning equipment and supplies, storage space, and workforce flexibility operating a 24 hour a day, 7 day a week service 365 days per year. The “Contract and As-Needed Staffing Review Policy, Practice, Recommendations” report approved by Council on January 13th, 2015 recommends that custodial and building maintenance services be contracted out. Bid #4419 requires the vendor to provide all equipment needed to deliver the contracted services, saving the City costs associated with the purchase and storage of equipment. In addition to these cost savings, the nature of the custodial work needed requires a large employee pool that works both days and evenings and includes the requisite supervision during work hours. Custodial staff is regularly on site in two buildings and the fuel wash facilities from 6:00AM-2:30PM daily, and from 6:00PM-2:00AM daily. The alternative to awarding this bid would be to perform all custodial services in-house, which would require four additional full-time employees with an anticipated annual expenditure of $344,600 in addition to the purchase and storage of custodial and detail cleaning equipment. Based on the added cost of bringing this service in-house, staff recommend award of bid #4419 to Coastal Building Services. 3.B Packet Pg. 21 3 of 4 Vendor/Consultant Selection Bidder Recommendation Best Bidder Coastal Building Services, Inc. Evaluation Criteria Bid evaluated on basis of price, quality of services offered, ability to perform all services, bidder experience and demonstrated ability to provide 24/7 service to the Department of Transportation Municipal Code SMMC 2.24.180 Submittals Received Uniserve $ 1,367,173 Coastal Building Services, Inc. $ 1,377,277 Ultimate Maintenance Services, Inc. $ 1,504,635 Olympos Painting, Inc. $ 2,895,321 Bid Data Date Posted Posted On Advertised in (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 10/19/2021 ProcureNow Santa Monica Daily Press 21 11/5/2021 Best Bidder Justification Bids were evaluated based on the criteria in SMMC 2.24.180 including price, ability to provide the services according to City specifications included in the bid, experience, reputation, and training of the bidder. Although Coastal Building Services is not the lowest bidder, they are within 1% of the lowest bidder. Additionally, they have a positive history providing this service with no complaints regarding their workmanship. Their staff has been accommodating of requests for additional disinfecting procedures resulting from the COVID-19 pandemic and have also been respectful of staff working on site when performing their duties. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the BBB fund to award a contract with Coastal Building Services to provide custodial services at the DOT’s Big Blue Bus facilities. Funds in the amount of $120,298 are available in the DOT’s operating fund for 3.B Packet Pg. 22 4 of 4 the last six months of fiscal year 2021-2022 with future year funding contingent on Council budget approval. Contract/Agreement/Purchase Order Request FY 2021-22 Budget Department/CIP Account # Total Contract Amount Request Amount $120,298 60600011.550016 $1,377,277 Prepared By: David Nanjo, Administrative Analyst Approved Forwarded to Council Attachments: A. Coastal 2021 Oaks form (1) 3.B Packet Pg. 23 3.B.a Packet Pg. 24 Attachment: Coastal 2021 Oaks form (1) (4868 : Award Custodial Services Bid) 3.B.a Packet Pg. 25 Attachment: Coastal 2021 Oaks form (1) (4868 : Award Custodial Services Bid)