Resolution 2018-30332 RESOLUTION NO. 2018-30332
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER AND WAIVING, BY A 5/7THS VOTE, THE FORMAL
COMPETITIVE REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE
CITY'S BEST INTEREST, AND AUTHORIZING THE RENTAL OF
UNDERCOVER VEHICLES FROM BUDGET RENT A CAR SYSTEM, INC., AS
APPROVED BY THE CITY MANAGER, FOR THE PURPOSE OF THE POLICE
DEPARTMENT'S INVESTIGATIVE OPERATIONS, IN THE AGGREGATE NOT
TO EXCEED AMOUNT OF $180,000 FOR A PERIOD OF SIX (6) MONTHS, OR
UNTIL THE EXECUTION OF A REPLACEMENT CONTRACT, FOLLOWING A
COMPETITIVE SOLICITATION, WHICHEVER COMES FIRST.
WHEREAS, the City of Miami Beach ("City) Police Department, as part of their normal
operations, depends heavily on undercover operations during criminal investigations;
WHEREAS, in order to remain anonymous during undercover operations, the Police
Department relies on rental cars; and
WHEREAS, on April 23, 2014, the Mayor and City Commission awarded Invitation to Bid
(ITB) 2014-176-LR for the rental of vehicles to Enterprise Leasing Company of Florida, LLC
("Enterprise"); and
WHEREAS, on May 8, 2014, the City of Miami Beach and Enterprise entered into an
Agreement, pursuant to ITB 2014-176-LR, with a term of three (3) years and two (2) one (1)
year renewal options (the "Agreement"); and
WHEREAS, the Agreement, pursuant to Appendix D Special Conditions Section 3.1
Cost Escalation, provides that the City may consider price increases, not to exceed the
applicable Bureau of Labor Statistics ("BLS") CPI-U index, or 3%, whichever is less; and
WHEREAS, on February 15, 2017, Enterprise submitted a letter to the Procurement
Department requesting to increase the contract rates based on the then applicable CPI-U of
2.6% at the time of the first contract term renewal; and
WHEREAS, on March 20, 2017, the City Manager approved the rate increase, and the
first term contract renewal, and extended the expiration date of the Agreement to May 7, 2018;
and
WHEREAS, during the second renewal term, Enterprise requested a price increase
which exceeded the applicable CPI-U increase of 2.3% for March 2017 through March 2018, as
well as the 3% maximum allowable increase stipulated in the Agreement; and
WHEREAS, when staff notified Enterprise of the increase restrictions, Enterprise
declined to renew the Agreement for another year; and
WHEREAS, in light of the current contractor's refusal to extend the Agreement, the
City's Procurement and Police Departments are working to draft and issue a new ITB which will
seek to establish a replacement contract for these services; and
WHEREAS, it is critical that the Police Department have access to rental cars for its
undercover operations while the City completes its formal solicitation process; and
WHEREAS, in the interim, staff requested quotes and compared pricing from local rental
car service providers from contracts awarded by local municipalities from Budget Rent a Car
System, Inc., Enterprise/National and Royal Rent a Car Systems of Florida, Inc. that can meet
the needs of the Police Department for these undercover vehicles; and
WHEREAS, the Administration has determined that Budget Rent a Car System, Inc. has
provided the lowest pricing for the vehicles for the short term; and
WHEREAS, the Administration believes it is in the best interest of the City to waive the
formal competitive requirements and allow the administration to rent undercover vehicles from
Budget Rent a Car System, Inc. based on the quotes received for a period of six (6) months or
until a replacement agreement is executed, whichever comes first.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission
of the City of Miami Beach, Florida, accept the recommendation of the City Manager and waive,
by a 5/7ths vote, the formal competitive requirement, finding such waiver to be in the City's best
interest, and authorizing the rental of undercover vehicles from Budget Rent A Car System, Inc,
as approved by the City Manager, for the purpose of the Police Department's investigative
operations, in the aggregate not to exceed amount of$180,000 for a period of six (6) months, or
until the execution of a replacement contract, following a competitive solicitation, whichever
comes first.
PASSED AND ADOPTED this r day of lune_ 2018.
Dan Gelber, Mayor
ATTEST:
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Rafael E. Granado, City Clerk f '\'\ ,Q
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: June 6, 2018
SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER AND WAIVING, BY A 5/7THS VOTE, THE FORMAL COMPETITIVE
REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE CITY'S BEST
INTEREST, AND AUTHORIZING THE RENTAL OF UNDERCOVER VEHICLES
FROM BUDGET RENT A CAR SYSTEM, INC., AS APPROVED BY THE CITY
MANAGER, FOR THE PURPOSE OF THE POLICE DEPARTMENT'S
INVESTIGATIVE OPERATIONS, IN THE AGGREGATE NOT TO EXCEED
AMOUNT OF $180,000 FOR A PERIOD OF SIX (6) MONTHS, OR UNTIL THE
EXECUTION OF A REPLACEMENT CONTRACT, FOLLOWING A COMPETITIVE
SOLICITATION, WHICHEVER COMES FIRST.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City of Miami Beach ("City") Police Department, as part of its normal operations, depends
heavily on undercover operations during criminal investigations. The Police Department uses rental
cars during undercover operations to remain disguised in order to ensure the integrity of any given
criminal case and for the safety of all parties involved.
On April 23, 2014, the Mayor and City Commission awarded Invitation to Bid (ITS) 2014-176-LR for
the rental of vehicles to Enterprise Leasing Company of Florida, LLC ("Enterprise'). On May 8,
2014, the City and Enterprise entered into an Agreement, pursuant to ITB 2014-176-LR (the
"Agreement"), with a term of three (3)years and two(2)one (1)year renewal options.
The Police Department uses the services provided under the Agreement to lease, on average, thirty
(30) vehicles per month to conduct undercover operations. These rental vehicles have an estimated
monthly cost to the City of$25,000. During certain periods, usage could be higher.
As is customary in contracting, the Agreement contains a provision that allows the City to consider
price increase during each renewal term in an amount not exceeding the applicable Bureau of Labor
Statistics ("BLS") CPI-U index, or 3%, whichever is less. On February 15, 2017, during the first
renewal term, Enterprise submitted a letter to the Procurement Department requesting a rate
increase based on the then applicable CPI-U of 2.6%. On March 20, 2017, the City Manager
approved the rate increase and renewal of the Agreement for one (1) year with an expiration date of
May 7, 2018.
At the time of the second contract renewal term, Enterprise requested a rate increase which
exceeded the CPI-U increase of 2.3% for March 2017 through March 2018, as well as the 3%
maximum allowable increase stipulated in the Agreement. When staff notified Enterprise of the
Page 602 of 1103
increase restrictions, Enterprise declined to renew the Agreement for another year. As a result, the
Procurement and Police Departments are working to draft and issue a new ITB which will seek to
establish a replacement contract for these services.
However, until such time as a replacement contract is awarded, it is critical that the Police
Department continue to have access to rental cars for its undercover operations while the City
completes its formal solicitation process. In the interim, staff requested quotes and compared pricing
from car service providers pursuant to contracts awarded by local municipalities from Budget Rent a
Car System, Inc., Enterprise/National and Royal Rent a Car Systems of Florida, Inc. that can meet
the Police Department's needs for these undercover vehicles. The Administration has determined
that Budget Rent a Car System, Inc. has provided the lowest pricing for the vehicles for the short
term period of six (6) months. To continue with the current level of vehicles utilized, the Police
Department anticipates expenditures of approximately$150,000 to $180,000.
Therefore, the Administration believes that it is in the best interest of the City to waive the formal
competitive requirements and allow the administration to rent undercover vehicles for the Police
Department from Budget Rent a Car System, Inc. based on the quotes received for a period of six(6)
months or until a replacement agreement is executed, whichever occurs first.
CONCLUSION
Given that the current contractor has declined to renew the contract and the importance of continuing
to provide rental cars for the Police Department's investigative operations, I recommend that the
Mayor and City Commission of the City of Miami Beach, Florida, accept the recommendation of the
City Manager and waive, by a 5/7ths vote, the formal competitive requirement, finding such waiver to
be in the City's best interest, and authorizing the rental of undercover vehicles from Budget Rent A
Car System, Inc, as approved by the City Manager, for the purpose of the Police Department's
investigative operations, in the aggregate not to exceed amount of $180,000 for a period of six (6)
months, or until the execution of a replacement contract, following a competitive solicitation,
whichever comes first.
KEY INTENDED OUTCOMES SUPPORTED
Streamline The Delivery Of Services Through All Departments
Amount 1 180,000 Account 1 011-1140-000323-20-401-595-00-00-00
Legislative Tracking
Police/Procurement
ATTACHMENTS:
Description
❑ Resolution
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