Report Prepared by: Daniel Dabney, Lieutenant, Police Department
Title
SUBJECT: Approval to Waive the Competitive Bidding Requirements and Award Thunderbird Maintenance, Inc the Contract for Graffiti Abatement Services in an Amount not to Exceed $264,747.60 in the First Year
REPORT IN BRIEF
Considers approving to waive the City’s competitive bidding requirements pursuant to Merced Municipal Code Section 3.04.210 and approving the contract with Thunderbird Maintenance, Inc for graffiti abatement services in the amount not to exceed $264,747.60 for the first year. This agreement is for a term of 5 years, with an annual cost adjustment of up to 5% for operational costs.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code Section 3.04.210; and,
B. Approving one of the proposed bids and awarding the contract to Thunderbird Maintenance, Inc. for graffiti abatement services in an amount not to exceed $264,747.60 in the first year, a 5-year term, with annual increases of up to 5% for operational costs; and,
C. Authorizing the City Manager or the Deputy City Manager, to execute the necessary documents or contracts that are approved as to form by the City Attorney; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
City of Merced Charter Section 3.04.210 - Exemptions from Competitive Bidding:
Except as otherwise provided in this chapter, competitive bidding requirements for purchases in excess of twenty-five thousand dollars ($25,000.00), the "bidding threshold”, may be waived with the approval of the city council. Waivers may be authorized for, but are not limited to, cooperative purchasing in conjunction with other governmental entities, professional services, annual service or supply agreements, or purchases necessary for standardization on particular types of equipment. The bidding threshold shall be adjusted for inflation utilizing the same index and methodology as the bidding threshold in Section 3.04.080 of this code.
CITY COUNCIL PRIORITIES
As provided for in the FY 2023/2024 adopted budget.
DISCUSSION
Background
The City of Merced graffiti abatement contract has expired, and the previous vendor providing service to the city sold the business without notice. The City is currently using Brisco Enterprises as a temporary service provider until a new contract is approved.
The City went out for bid and received two responses, one from the current contractor, Brisco Enterprises who is doing business as Thunderbird Maintenance, Inc (TM) and the other was from ----a vendor based in Portland, Oregon who provided an incomplete bid response.
After the bids were received, the City Attorney advised that prevailing wage applies to the bids and suggested we waive competitive bidding and set a new contract to include prevailing wage.
Since only two responses were previously received, and one was incomplete, the City requests to waive the bid process and use the current provider, Brisco Enterprises, dba. Thunderbird Maintenance, Inc.
The amount quoted is for maintaining the quality of service the City of Merced and residents have become accustomed to and is based on the prevailing wage rate (Index 2023-2) for Merced County of a Journeyman Painter as defined by the Department of Industrial Relations (DIR) of the State of California. To maintain this level of service would require 130 hours a month of abatement services. Services are provided at a flat hourly rate that includes time and material at a rate of $169.71 an hour. The annual compensation rate at a level of service of 130 hours a month is $264,747.60. This would be the proposed not to exceed amount that TM proposes to the City of Merced for the first year of the agreement under option one. This agreement is for a term of 5 years, with an annual cost adjustment of up to 5% for operational costs. Additional funding is needed in the amount of $55,125.60 and would be funded by salary savings available in the 23/24 fiscal year Police budget.
IMPACT ON CITY RESOURCES
The 23/24 fiscal year Police Budget includes $209,622 for graffiti abatement services. An additional amount of $55,125.60 is required to maintain the same level of service during the 23/24 fiscal year. This additional amount will be funded with department salary savings. Future year amounts will be included in the budget process with a 5% increase per terms of the agreement.
ATTACHMENTS
1. Thunderbird Maintenance, Inc Original bid
2. Thunderbird Maintenance, Inc Addendum 1
3. Thunderbird Maintenance, Professional Services Agreement