2002-24918 Reso
RESOLUTION NO. 2002-24918..
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AWARDING A CONTRACT TO LARRY'S
CHEVRON, PURSUANT TO INVITATION TO BID NO. 62-00/01, FOR
PURCHASING AUTOMOTIVE FUEL AND OTHER VARIOUS AUTOMOTIVE
SERVICES FOR CITY VEHICLES, ON AN AS NEEDED BASIS, AT AN
ESTIMATED AMOUNT OF $750,000.
WHEREAS, the City of Miami Beach has one single source of fuel, which is located
on Terminal Island, to serve it's current fleet of approximately 1100 pieces of rolling
stock; and
WHEREAS, there is no secondary source of fuel, which will support our fleet in the
event Terminal Island fuel tanks are not accessible; and
WHEREAS, the City issued Invitation to Bid No. 62-00/01, for the purchase of
automotive fuel and other various automotive services for city vehicles; and
WHEREAS, there are two parts to this project: first, pricing formulas for calculating
the cost of selling fuel to the City of Miami Beach; and second, the successful bidder is
required to allow the City of Miami Beach Fuel Management System (RNI 2000) to be
integrated with the bidders existing operation and financial system; and
WHEREAS, four (4) firms submitted bids in response to Bid No. 62-00/01, and after
reviewing all the bids, Larry's Chevron offered a price structure that was based on raw
cost plus $ .10 per gallon mark up plus any applicable taxes; and
WHEREAS, the City's fuel management system provider is RAPAC International
d/b/a RNI 2000, which has been in service in Fleet Management and Fire Station 2
since 1995: and
WHEREAS, the RNI 2000 authorizes fuel transactions, starts the pumps and allows
drivers to fuel their vehicle or equipment, and provides Fleet Management information
such as; vehicle number, type of fuel being dispensed. quantity, current mileage, engine
hours (run time) and calculates miles per gallon; and
WHEREAS, the Chevron Corporation representatives in Atlanta and California) and
the local bidder, Larry's Chevron, have reached the conclusion that an interface is
possible: and
WHEREAS, the complete cost of the project is estimated at $92,000 (hardware
$20K, software $50K, support and testing $15K, installation $5K and final testing on site
$2K) of which RAPAC will be absorbing an estimated 65% the cost associated with
creating the software, testing and implementation; and
WHEREAS, RAPAC states the total dollar commitment by the City for the project is
$32,500, which includes all site hardware; installation, system software, testing and
support necessary to implement the RNI 2000 Fuel Management System at the
Chevron site and provide the necessary information back to Fleet Management on
Terminal Island; and
WHEREAS, based on this year's forecast, the City will consume approximately
635,000 gallons of fuel, which forecasted at 70% of all GAS dispensed from the private
sector would be 444,500 gallons of fuel at an anticipated annual cost of $750,000; and
WHEREAS, the average taken (70%) over the anticipated usage equals $35,560
($.08 avg. x 444,500 gallons), and based on a 100% purchased from the private sector
the maximum increase based on current information and today's fleet count would cost
the City $69,000.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, award a contract to Larry's
Chevron, pursuant to Invitation to Bid No. 62-00/01, for the purchase of automotive fuel and other various
automotive services for City vehicles, on an as needed basis, at an estimated 'amount of $750,000.
PASSED and ADOPTED THIS 10th
day of July
2002.
ATTEST:
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CITY CLER
T:\AGENDA\2001\JULlOO1\CONSENT\ResoFuel.doc
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
AWARDING A CONTRACT TO LARRY'S CHEVRON, PURSUANT TO INVITATION TO BID NO. 62-
00/01, FOR PURCHASING AUTOMOTIVE FUEL AND OTHER VARIOUS AUTOMOTIVE SERVICES
FOR CITY VEHICLES, ON AN AS NEEDED BASIS, AT AN ESTIMATED AMOUNT OF $750,000.
Issue:
WHETHER TO ADOPT THE RESOLUTION AND AWARD A CONTRACT TO LARRY'S CHEVRON.
Item Summary/Recommendation:
CURRENTLY, THE CITY OF MIAMI BEACH HAS ONE SINGLE SOURCE OF FUEL, WHICH IS LOCATED
ON TERMINAL ISLAND, TO SERVE IT'S CURRENT FLEET OF APPROXIMATELY 1100 PIECES OF
ROLLING STOCK. THERE IS NO SECONDARY SOURCE OF FUEL, WHICH WILL SUPPORT OUR
FLEET IN THE EVENT TERMINAL ISLAND FUEL TANKS ARE NOT ACCESSIBLE.
THERE ARE TWO PARTS TO THIS PROJECT: FIRST, PRICING FORMULAS FOR CALCULATING THE
COST OF SELLING FUEL TO THE CITY OF MIAMI BEACH; AND SECOND, THE SUCCESSFUL BIDDER
IS REQUIRED TO ALLOW THE CITY OF MIAMI BEACH FUEL MANAGEMENT SYSTEM (RNI 2000) TO
BE INTEGRATED WITH THE BIDDERS EXISTING OPERATION AND FINANCIAL SYSTEM. BASED ON
THIS YEARS FORECAST, THE CITY WILL CONSUME APPROXIMATELY 635,000 GALLONS OF FUEL.
FORECASTING 70% OF ALL GAS DISPENSED FROM THE PRIVATE SECTOR WOULD BE 444,500
GALLONS OF FUEL AT AN ANTICIPATED ANNUAL COST OF $750,000.
THE ADMINISTRATION RECOMMENDS THAT THE CITY COMMISSION ADOPT THE ATTACHED
RESOLUTION WHICH AWARDS A CONTRACT TO LARRY'S CHEVRON FOR PURCHASING
AUTOMOTIVE FUEL AND OTHER VARIOUS AUTOMOTIVE SERVICES FOR CITY VEHICLES, ON AN
AS NEEDED BASIS.
Advisory Board Recommendation:
I
Financial Information:
Amount to be expended:
Source of
Funds:
510.1780.000.676
In Various Department's Budget
~
Finance Dept.
City Clerk's Office Legislative Tracking:
I Gus Lopez
AGENDA ITEM
DATE
C7J"
7-/0-0 L
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
COMMISSION MEMORANDUM
From:
Mayor David Dermer and
Members of the City co:<mmiSSion
Jorge M. Gonzalez \
City Manager 0
Date: July 10, 2002
To:
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AWARDING A CONTRACT TO LARRY'S CHEVRON, PURSUANT TO
INVITATION TO BID NO. 62-00/01, FOR PURCHASING AUTOMOTIVE FUEL AND
OTHER VARIOUS AUTOMOTIVE SERVICES FOR CITY VEHICLES, ON AN AS NEEDED
BASIS, AT AN ESTIMATED AMOUNT OF $750,000.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Currently, the City of Miami Beach has one single source of fuel, which is located on
Terminal Island, to serve it's current fleet of approximately 1100 pieces of rolling stock.
There is no secondary source of fuel, which will support our fleet in the event Terminal
Island fuel tanks are not accessible.
Before reconstruction, Fire Station No. 2 was the primary site for vehicles and heavy
equipment to fuel. Since that time the tanks have been removed and there are no
immediate plans to install a new fuel island on this site with any significant capacity.
There are two parts to this project: first, pricing formulas for calculating the cost of selling
fuel to the City of Miami Beach; and second, the successful bidder is required to allow the
City of Miami Beach Fuel Management System (RNI 2000) to be integrated with the
bidders existing operation and financial system.
DemandStar by Onvia issued bid notices to 1 ,406 individuals, which resulted in 26
individuals/firms requesting or downloading copies of the Bid, with four (4) firms submitting
bids. After reviewing all the bids, Larry's Chevron offered a price structure that was logical,
straightforward and more importantly can be audited.
The proposed bid is based on raw cost plus $ .10 per gallon mark up plus any applicable
taxes. The bidder provided a detailed listing of their fuel cost over a several week period.
Fleet Management did a comparison of cost of fuel purchased by the bidder and the City
Of Miami Beach. The difference varied from .01 to .13 cents per gallon (see attached
spreadsheet). The additional cost for fueling in the private sector is projected at $69,000.
The difference in cost is based on the estimated number of gallons to be purchased from
this station. We believe this cost will be offset with the reduction of man-hours associated
with travel time to and from Terminal Island and waiting in line to access the pumps. The
goal is to increase the number of employee man-hours on the job which will improve
opportunities to improve customer service and response times especially in the area ofthe
police department.
The City's fuel management system provider is RAPAC International d/b/a RN12000. The
system has been in service in Fleet Management and Fire Station 2 since 1995. The RNI
2000 system has demonstrated a reliability factor of 99.8%. The system was unavailable
once when lightning struck and twice when the salt air and humidity corroded the contacts
in the Manual Fuel Key system.
The RNI 2000 authorizes fuel transactions, starts the pumps and allows drivers to fuel their
vehicle or equipment. The system provides Fleet Management information such as;
vehicle number, type of fuel being dispensed, quantity, current mileage, engine hours (run
time) and calculates miles per gallon. This information is uploaded into the Fleet
Management Program (CCG Faster System) and is used to also schedule preventative
maintenance.
Representatives from RAPAC have been in contact both telephonically and in person with
the Chevron Corporation representatives (in Atlanta and California) and the local bidder.
Together they have reached the conclusion that an interface is possible and are awaiting
approval to proceed. It should be noted that although RAPAC has hundreds of
installations like this in several countries, this would be the first in the continental US.
The complete cost of the project is estimated at $92,000 (hardware $20K, software $50K,
support and testing $15K, installation $5K and final testing on site $2K) of which the City Of
Miami Beach is only responsible for a portion. It is clear that RAPAC and Chevron will also
benefit in this endeavor. As a result, RAPAC will be absorbing an estimated 65% the cost
associated with creating the software, testing and implementation.
RAPAC states the total dollar commitment by the City Of Miami Beach for the project
is $32,500. Fleet Management has a budget item in the current year covering this cost.
This includes all site hardware; installation, system software, testing and support necessary
to implement the RNI 2000 Fuel Management System at the Chevron site and provide the
necessary information back to Fleet Management on Terminal Island.
RAPAC is projecting 60-days from the date of notification to proceed to have the system
installed and online provided there are no significant unforeseen issues. The hardware to
be installed is removable and can be relocated should the City of Miami Beach desire to
make a change in vendor. The Software for the system is an upgrade from our existing
system allowing us to use a remote site within the private sector.
Cost Projection
Based on this year's forecast, the City will consume approximately 635,000 gallons of fuel.
Forecasting 70% of all GAS dispensed from the private sector would be 444,500 gallons of
fuel at an anticipated annual cost of $750,000.
The average taken (70%) over the attached sampling equals $35,560 ($.08 avg. x 444,500
gallons). Even if 100% of all GAS was purchased from the private sector the maximum
increase based on current information and today's fleet count would cost the City $69,000.
Fleet Management is also exploring additional sources to fuel our vehicles and equipment.
One of the opportunities being investigated is using a company who can fuel vehicles and
equipment on site during non-business hours. This would eliminate more down time for the
vehicle/equipment and increase employee man-hours dedicated to the job.
The Administration recommends that the City Commission adopt the attached resolution
which awards a contract to Larry's Chevron for purchasing fuel and other various
automotive services for City vehicles, on an as needed basis.
JMG:MOB:GL:DT