City Council Memorandum
TO:
HONORABLE MAYOR AND CITY COUNCIL
DATE: FEBRUARY 21, 2023
FROM:
FINANCE DEPARTMENT
WARDS: ALL
SUBJECT: REQUEST FOR BID 7793 – AGREEMENT WITH WASH MASTER, LLC FOR CITYWIDE CAR WASH SERVICES FOR AN AMOUNT OF $92,100, INCLUDING A CHANGE ORDER AUTHORITY OF 15% FOR A TOTAL AMOUNT NOT TO EXCEED $105,915, WITH THE OPTION TO EXTEND FOR THREE ADDITIONAL ONE-YEAR TERMS ISSUE:
Approve the Services Agreement with Wash Master, LLC of Beaumont, California, for Citywide Car Wash Services for a one-year agreement term in the amount of $92,100, including a 15% change order authority amount of $13,815 for a total not to exceed $105,915, with the option to extend for three additional one-year terms.
RECOMMENDATIONS:
That the City Council:
Approve the Services Agreement with Wash Master, LLC for a one-year term in the amount of $92,100 with the option to extend for three additional one-year terms; Approve 15% change order authority for the agreement; and Authorize the City Manager, or designee, to execute the Services Agreement with Wash Master, LLC, including making minor and non-substantive changes, including Amendments for term extensions up to three additional one-year terms, subject to the availability of budgeted funds.
BACKGROUND:
On April 19, 2021, staff released Bid 7793 for Citywide Car Wash services to be utilized by the Riverside Public Utilities and Parks and Recreation Departments. The Bid ensures that competitive pricing for car wash services were obtained and utilized across two Departments and several Divisions. It also provides a consistent wash schedule, on location, to maintain a clean fleet of vehicles.
The Special Transportation Division of the City of Riverside’s Parks, Recreation and Community Services Department currently operates a fleet of paratransit and administrative vehicles which consists of different types of vehicles such as cutaway buses, vans, and a sedan. The Riverside Public Utilities operate different types of vehicles which may range from SUV’s Trucks or cars. To efficiently clean vehicles, an onsite cleaning service is needed to wash vehicles on the City’s schedule. This minimizes interference with the daily tasks of staff.
On May 13, 2021, the City received bids from four Southern California companies, all of which were under $50,000 and all were deemed responsive. Titan Detail LLC was the lowest responsive bidder, and was Awarded Bid 7793 on August 9, 2021, entering into a one-year agreement with the City for an annual total of $35,052.
During the first year of the vendor’s contract, it was reported that Titan Detail LLC was failing to meet performance standards and unable to keep up with the required schedule of cleanings due to unavoidable and irreconcilable obstacles. It was decided that the agreement would not be renewed upon expiring, and the second lowest responsive bidder from the original procurement would be offered a contract to continue the services. Given that the Bid 7793 was completed less than two years ago staff reached out to the other responsive and responsible bidders to gauge their interest in contracting with the City for the prices quoted in their respective bid.
DISCUSSION:
Upon receiving updated pricing from the second lowest bidder, Wash Master, LLC, and determining that the increase of 1.1845% in their proposed costs was well within the standard CPI percentage increase of 3.5% for the area, it was deemed that the price increases were acceptable, and the vendor accepted the City’s offer to enter into an agreement.
Additionally, due to the gradual ease of COVID-19 orders, and a more regular schedule resumed by City staff and the Public, vehicle usage has increased. This has resulted in the need for more regular vehicle washes. The original agreement cost will not cover the increased demands of the City, and as such the total agreement amount has increased to $92,100. In addition, a 15% Change Order Authority is being requested to allow the City to avoid any unanticipated escalations of vehicle wash needs due to increased use.
The original Bid 7793 results are summarized in the table below and are based on cost to wash all vehicle units one time:
Proposer
City Location
Bid Amount
*Titan Detail LLC
Temecula, CA
$2,168.00
Wash Master LLC
Beaumont, CA
$2,406.00**
Bumper to Bumper
Riverside, CA
$3,873.00
Qualified Mobile, Inc.
Norco, CA
$4,808.50
*Lowest Responsive Bidder failed to meet contract requirements **Updated pricing, as Wash Master LLC has increased their fees by 1.1845%, which is well within the listed 3.5% Consumer Price Index (CPI) increase for the Riverside area.
The Purchasing Manager concurs that the recommended actions are in compliance with the Purchasing Resolution No. 23914.
STRATEGIC PLAN ALIGNMENT
This item contributes to Strategic Priority 5 – High Performing Government and Goal 5.2 – Utilize technology, data, and process improvement strategies to increase efficiencies, guide decision making, and ensure services are accessible and distributed equitably throughout all geographic areas of the City.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The Services Agreement will allow Riverside Public Utilities and Parks and Recreation Departments to continue to efficiently provide service to the public with a professional, clean fleet. Regular cleanings will improve community perception of City of Riverside employees, as well as provide safer, cleaner vehicles for public transportation.
Equity – The Services Agreement will allow Riverside Public Utilities and Parks and Recreation Departments to continue providing uninterrupted services to the public.
Fiscal Responsibility – The Services Agreement will allow Riverside Public Utilities and Parks and Recreation Departments to utilize car washing services during business hours without interruption of daily tasks, allowing City staff to continue their daily tasks uninterrupted. This will cut additional costs by avoiding the need for City staff to be responsible for washing their own vehicles.
Innovation – The Services Agreement will allow Riverside Public Utilities and Parks and Recreation Departments to provide staff and the public access to regularly cleaned vehicles on the City’s Schedule through the utilization of a citywide bid, leveraging price and the streamlining of services.
Sustainability & Resiliency – The Services Agreement for Citywide Car Wash Services will allow Riverside Public Utilities and Parks and Recreation Departments to maintain clean and safe vehicles while continuing to offer continuity of operations to the public.
FISCAL IMPACT:
The fiscal impact of the Services Agreement with Wash Master LLC is $92,100 for a term of one year, with three optional one-year extensions, plus 15% Change Order authority of $13,815 for a total of $105,915. Charges will be allocated to each Department’s approved and available budgeted funds as the services are utilized.
Prepared by: Jennifer McCoy CPPO, Purchasing Manager
Certified as to
availability of funds: Kristie Thomas, Assistant Chief Financial Officer Approved by: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/City Treasurer Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Services Agreement with Wash Master LLC
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