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Home My WebLink About04 - Approval of M/RSA for Graffiti Abatement Services - CorrespondenceReceived After Agenda Printed February 22, 2022 Item No. 4 From: City Clerk"s Office To: Mulvey, Jennifer; Rieff, Kim Subject: FW: Graffiti Removal Services Contract Award Recommendation Date: February 22, 2022 1:47:01 PM Attachments: imaae001.a_na 8 Cost File Altternate.odf From: Juan Reinoso <juanr@urbangraffiti.com> Sent: Tuesday, February 22, 2022 1:45:36 PM (UTC -08:00) Pacific Time (US & Canada) To: Dixon, Diane <ddixon@newportbeachca.gov>; Avery, Brad <bavery@newportbeachca.gov>; Duffield, Duffy <dduffield@newportbeachca.gov>; Muldoon, Kevin <kmuldoon@newportbeachca.gov>; Blom, Noah <NBlom @newportbeachca.gov>; Brenner, Joy <JBrenner@newportbeachca.gov>; O'Neill, William <woneill@newportbeachca.gov> Cc: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: Graffiti Removal Services Contract Award Recommendation [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Esteemed Council Members, With the understanding that city staff did their due diligence evaluating the proposals based on the information provided by the contractors and their recommendation is based primarily on cost. I feel that it is imperative that the following be taken into consideration before making a final decision. • The rates proposed by the recommended contractor are questionable for the simple fact that they seem to be based on what we are currently charging the city rather than current market costs and current wage rates required by the Department of Industrial Relations. Our current agreement with the city is based on 2013-2014 rates of $40.94 for weekday work and $54.58 for Saturday, Sunday and holiday work. The prevailing wages that apply to this project are now $53.17 for weekdays, $70.38 for Saturdays and $87.59 for Sundays and holidays. These wage rates do not include additional costs such as payroll taxes and workers compensation insurance. The average $500.00 daily cost this contractor is proposing cannot possibly cover the required prevailing wages, mandatory apprentice costs, transportation, materials and administration. • The recommended contractor is currently in violation of DIR regulations for not submitting payroll reports. A search of all their current public works projects shows they have failed to submit any payroll reports since 2019. • The recommended contractor has had their contractor's license suspended for workers compensation insurance violations. Finally, and more importantly, I highly doubt that the proposed contractor is aware of the fact that the City of Newport Beach is a highly visited community that is subjected to a high degree of transitory graffiti. They may not be aware that the reason why there is little if any graffiti visible throughout the city it is because over 95% of it is removed proactively by the contractor. That means, boots on the ground actively searching and removing graffiti throughout the city with full day service and not merely responding to service calls. Please review the attached Alternate Pricing we submitted with our proposal. You will note that it is highly competitive and flexible. Nevertheless, I do realize that your responsibility is to provide the residents the best service at the most cost-effective price. I wish the city and its residents the best and hereby offer our services in the future should they be needed. Juan Reinoso President Urban Graffiti Enterprises, Inc. "Taking Pride In Our Communities" 0uanr a urbangraffiti.com Off (626) 815-4900 Fax (626) 815-4499 Please consider the environment before you print. For daily work requirements and explanation of terms herein, please see page 2. BASE BID — DAILY SERVICE PRICING - MON, WED, & FRI AND BOTH Saturday and Sunday, DAILY COST' Mon, Wed, Fri, Sat & Sun 5 days per week All-inclusive graffiti $ (M thru F) abatement services per Scope of Services $ (Sat & Sun) OPTION #2 — DAILY SERVICE PRICING - MONDAY Through SUNDAY — 7 days per week, DAILY COST' 7 -day/ week service All-inclusive graffiti $ (M thru F) abatement services per Scope of Services $ (Sat & Sun) OPTION #3 — DAILY SERVICE PRICING - MONDAY Through Friday — 5 days per week, DAILY COST' — Monday thru Friday 5 days per week All-inclusive graffiti abatement services per $ (M -W -F) Scope of Services (Bid Costing Items continue on next page) Extra Work and After -Hours Pricing After Hours / Weekends Extra Work After Hours Holidays' Minimum # City Requests Extra Work Hourly Rate Hourly Rate Hourly Rate of Hours All-inclusive graffiti abatement services per Scope Services $ 155.00 of $170.00 $ City Discretion / Optional Bid Item — Required for Contractor to Offer (See Scope of Services), but Optional for City to include in Contract Agreement Monthly Cost Contractor in-house web - based work order system or portal for City staff $ No Charge access 1. Daily Cost Pricing rate shall include all labor (field and administrative), materials, equipment, tools, insurances, vehicles, transportation, etc. necessary to do the Work requested in the Scope of Services. 2. For Base Bid, After Hours Rate shall apply to Tuesday and Thursday, and from 4:30PM to 7:OOAM on other days. For Option #2, After Hours Rate shall apply to 4:30PM to 7:OOAM any day of the week. For Option #3, After Hours Rate shall be any time outside of the normal business hours of Monday — Friday, 7:00 am — 4:30 pm. 3. Daily Work Services — Based on an 8 -hour work day, including travel time. 4. City may request Contractor to perform work on City -observed Holidays. This work will be scheduled in advance with consultation with Contractor Project Manager and provide as much prior notice as possible. 5. The City of Newport Beach reserves the right to modify the frequency of service (base bid, option #2, option #3) during the course of the contract term due to service level need or budget constraints. Other Costs: In the space below or on a separate page, please indicate any other costs that may be associated with providing the requested services in this RFB that are not included in the table above. Please also assume a five (5) year contract term and describe any annual rate increases over this time, if applicable (e.g. U -CPI adjustments): Option #2 (7 -weekly service days) : Saturday - $705.00 Sunday - $775.00 The rates herein stated are in accordance with DIR regulations such as applicable prevailing wages, apprenticeship compliance and payroll reporting requirements. These rates are subject to yearly CPI increases. Please see attached Alternate Pricing Alternate Pricing City of Newport Beach RFB No. 22-24 The prevailing wage rates for the classification of workers required to perform these services have increased exponentially compared to those that apply to the current contract. We suggest taking a more practical approach to get the most out of the resources dedicated to this project. Rather than a more expensive "as -needed" daily service agreement, that would not have city dedicated personnel. We recommend continuing the same, 5 -day Monday — Friday weekly service schedule at a fixed monthly rate with as -needed weekend emergency services. This model has effectively kept the city's graffiti under control for the past 8 years. The primary reason for the success of the city's graffiti program is because over 90% of it is removed before it is reported. Often times, the same day or the day after it was put up. That can only be achieved with constant, proactive patrolling and eradication upon site. The alternate service schedule and rates we are proposing as follows: • (1) Fully equipped Service Tech, 5 -days per week Monday thru Friday - $13,000.00 per month. (Additional service crews will be provided if needed, at reduced rates) • Saturday emergency service - $490.00 per call -out (includes first 2 hours of service) • Sunday/holiday emergency service - $545.00 per call -out (includes first 2 hours of service) Regular weekend service can be added or interchanged with weekdays if the city desires, with a slight increase in cost, to cover the higher weekend wage rates required by DIR. Pricing provided shall include any and all labor [prevailing wage]; materials; equipment; supervision; travel and expenses; and insurance to provide the services described in this RFB solicitation. The undersigned certifies that submission of this Bid is made without prior understanding, arrangement, agreement, or connection with any corporation, firm or person submitting a Bid for the same services, and is in all respects fair and without collusion of fraud. The undersigned certifies that they have not entered into any arrangement or agreement with any City of Newport Beach public officer. The undersigned understands collusive practices are a violation of State and Federal law and can result in fines, prison sentences, and civil damage awards. Digitally signed by Juan Reinoso DN: cn=Juan Reinoso gn=Juan Reinoso c=US United O SO States I=US United States o=Urban Graffi Juan Rein Enterprises,lnc. e=juanr@urbangrafti.com Reason: I am the author of this document 12/9/2021 Location: Date: 2021-12-08 11:14-08:00 Bidders Signature Juan Reinoso/President Printed Name and Title Date