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1993-0921_C.B. ELECTRIC_D5_Agenda Report f AGENDA ITEM September 21, 1993 TO: George Scarborough, City Manager FROM: Ronald C. Sievers, Director Public Lands and Facilities SUBJECT: Award of Bid - City Street Light Maintenance and Repairs Recommendation By motion, accept the bids for City Street Light Maintenance and Repairs as submitted and award to the lowest qualified bidder, C. B. Electric, for an estimated annual amount not to exceed $20,000, at the unit prices listed on the bid proposal. SITUATION The City of San Juan Capistrano has approximately 1200 City owned street lights which are maintained annually. Currently, the City receives bids and authorizes maintenance and repairs on a per job basis. This is charged on an hourly rate by the contractor. Specifications for annual maintenance and repair of City street lights were approved at the July 20th City Council meeting and staff was authorized to advertise for bids. The purpose of soliciting an annual contract for City owned street lights is to lower the per job costs and give the City the flexibility of either performing more work for the same amount of money or, if necessary, to reduce annual costs without substantially reducing service levels, as well as reduce the staff time currently expended using "per job" pricing. The Department of Public Lands and Facilities, therefore, prepared a bid document calling for prices on both a per lamp basis and a per hour basis, intended to provide additional flexibility in obtaining maintenance and repair of City street lights. A pre-bid conference was held on August 10, 1993, to answer questions and make clarifications. Four companies attended the pre-bid conference. The bid opening was held on August 17, 1993. Two companies submitted bids for the City Street Light Maintenance and Repairs contract: C. B. Electric, and California Retrofit, Inc. FOR CITY COUNCIL AGEN 1... PAGENDA ITEM September 21, 1993 Page 2 California Retrofit, Inc. (CRI) submitted a price for individual parts rather than a per light average as requested in the bid and, therefore, could not be considered when analyzing certain portions of the bid. However, the parts prices submitted by CRI were checked against our current parts costs and were found to be higher. The bids were analyzed by taking into account: 1) the per lamp prices; 2) the per hour prices which included number of men and equipment provided for that price; 3) location and ability to respond on both an emergency and non-emergency basis; and 4) the cost of parts. After reviewing the bids, it was determined that the most economical price for the City was on a "per light"basis,with the Contractor supplying the parts. This was determined as follows: 1. The total number of lights repaired in the past two years was determined. 2. The average time spent per light and the average parts costs were calculated. 3. The figures bid by both companies were used to calculate what the costs would have been based on the bids submitted. The projected costs were as follows: C.B. Electric California Retrofit Hourly Costs (City-Supplied Parts) Per Bid $68.00 $60.00 x (times) .85 hrs (Historical Time Required Per Light) X .85 .85 Plus Parts Costs (Historical Cost Per Light) $57.80 $51.00 = Total Hourly Cost Per Light (City-Supplied Parts) 21.00 21.00 $78.80 $72.00 Hourly Costs (Contractor-Supplied Parts) Per Bid $95.00 * N/A (Incorrect x (times) .85 hrs (Historical Time Required Per Light) X 85 Info Supplied) = Total Hourly Cost Per Light (Contr-Supplied Parts) $80.75 Per Light Cost (City-Supplied Parts) Per Bid $45.00 $50.00 Plus Parts Costs (Historical Cost Per Light) 21.00 21.00 = Total Per Light Cost (City-Supplied Parts) $66.00 $71.00 Per Light Cost (Contractor-Supplied Parts) Per Bid * N/A Incorrect = Total Per Light Cost (Contractor-Supplied Parts) **$65.00 Info Supplied) * Non-applicable figures provided in bid proposal;unable to consider in final analysis of bid. **Denotes Low Bid AGENDA ITEM September 21, 1993 Page 3 Per this bid analysis, the low bidder is C.B. Electric (providing services on a per light basis with the contractor supplying the parts). In addition to obtaining a lower per light cost for repairs, there will be savings in the time required by staff to verify the work performed. It will be much quicker for staff to count the number of lights repaired than to verify the number of hours the contractor spent on each repair. Additionally, by having the contractor supply the parts, staff time will be saved by not ordering and stocking parts. This contract will extend from September 1993 through June 1995, with an option to renew for two years if mutually agreed upon by the City and the contractor. The Department of Public Lands and Facilities has reviewed all references for the low bidder, C.B. Electric, and the contract, insurance verification, statements of experience and equipment, etc. have been received. NOTIFICATION C.B. Electric California Retrofit, Inc. COMMISSION/BOARD REVIEW. RECOMMENDATIONS N/A FINANCIAL CONSIDERATIONS Funding for the 1993-94 City Street Light Maintenance and Repair Contract is currently budgeted in Account #01-62429-4442. ALTERNA FE ACTIONS 1. Accept the City Street Light Maintenance and Repair bids as submitted and award to the lowest qualified bidder, C.B. Electric, for an estimated annual amount not to exceed $20,000, at the unit prices listed on the bid proposal. 2. Do not accept the City Street Light Maintenance and Repair bids as submitted. 3. Refer to staff for additional information. AGENDA ITEM September 21, 1993 Page 4 Recommendation By motion, accept the bids for City Street Light Maintenance and Repair as submitted and award to the lowest qualified bidder, C.B. Electric, for an estimated annual amount not to exceed $20,000, at the unit prices listed on the bid proposal. Respectfully submitted, Ronald C. Sievers RCS:sc