R2A-Approve Purchase Replacement And Vehicle Additions And Equipment 3477 980COMMISSION ITEM SUMMARY
Condensed Title:
Request For Approval To Purchase Budgeted Replacement/Addition Vehicles And Equipment Pursuant To Florida State
Contract No. 11-19-0907, In The Amount Of $3,477.980.00.
Key Intended Outcome Supported:
Ensure well-maintained infrastructure. Improve parking availability. Maintain Miami Beach public areas & rights of way
citywide. Increase satisfaction with family recreational activities. Ensure well-maintained facilities. Improve cleanliness of
Miami Beach riQhts of way especially in business areas. Increase community satisfaction with City Government.
Supporting Data (Surveys, Environmental Scan, etc.):
55% of residents, 48% of businesses rated the condition of roads as excellent or good, and 64% of residents, 66% of businesses
rated the condition of sidewalks as excellent or good. 21% of residents and 28% of businesses rated the availability of parking across
MB as about the right amount. 83% of residents and 81% of businesses rated the landscape maintenance in rights of way and public
areas as excellent or good. 73% of residents and 46% of businesses rated the availability of family friendly activities as about the right
amount. 88% of residents and 80% of businesses rated how safety they fell in business/commercial areas during evening/night as
very safe or reasonably safe.87% of residents and 85% of businesses rated the appearance and maintenance of the City's public
buildings as excellent or good. 71% of residents and 66% of businesses rated the cleanliness of streets in business/commercial areas
as excellent or good. 91% of domestic visitors and 81% of international visitors indicated they definitely would or very likely would
return to Miami Beach in the future. 97% of residents and 95% of businesses rated the overall quality of fire, EMR, preparedness as
excellent or good. 79% of residents and 82% of businesses rated well-desiQned capital projects as excellent or Qood.
Issue:
l Shall the Mayor and City Commission approve the purchase?
Item Summary/Recommendation:
One (1) 2012 Ford Focus, four (4) 2012 Ford F-150 and four (4) 2012 Ford F-250 are approved budgeted replacements and will be
funded by the Public Works Water Division Enterprise Fund Capital Account No. 425-0410-000673. One(1) 2012Ford Focus and
one(1) 2012 Ford F-150 are approved budgeted replacements and will be funded by the Public Works Sewer Operations Division
Enterprise Fund Capital Account No. 425-0420-000673. One (1) 2012 Ford Focus is an approved budgeted replacement and will be
funded by the Public Works Storm Water Division Capital Account No. 427-0427-000673. Four (4} 2012 Ford F-250 are approved
budgeted replacements and will be funded by the Public Works Sanitation Division Enterprise Fund Account No. 435-0430-000673.
One (1) 2012 Ford F-150 is an approved budgeted replacement and will be funded by the Public Works Sanitation Division
Enterprise Fund Capital Account No. 435-9962-000673. Two (2) 2012 Ford Transit Connect, two (2) 2012 Ford Focus and one (1)
2012 Ford F-350 are approved budgeted replacements and will be funded by the Parking on Street Capital Account No. 480-0462-
000673. Four (4) 2012 Ford Focus are approved budgeted additions and will be funded by the Parking on Street Capital Account No.
480-0462-000673. One (1) 2012 Ford F-150 is an approved budgeted replacement and will be funded by the Parking off Street
Capital Account No. 480-0463-000673. Fifty one (51) 2012 Ford Focus, seven (7) 2012 Ford F-150, three (3)" 2012 Ford F-250, one
(1) 2012 Ford F-350, ten(1 0} 2013 New Generation Police Interceptor utility, two (2} 2012 Chevrolet Caprice Police package, thirty
nine (39) 2013 New Generation Police Interceptor sedan, twenty (20) 2012 Ford Fusions, two (2) 2012 Dodge Charger Police
package and one (1) 2012 Ford Taurus are approved budgeted replacements and will be funded by the Fleet Management Fund
Capital Account No. 510-1780-000673. Two (2) 2012 Ford Focus are approved budgeted additions and will be funded by the CIP
Capital Account No. 011-0820-000673.0ne (1) 2012 ford E-250, two (2) 2012 Ford F-250 and one (1) 2012 Ford F-350 are approved
budgeted replacements and will be funded by the Public Works prop. Mgmt. Division Capital Account No. 520-1720-000673. Two (2)
2012 Ford Transit Connect and three (3) 2012 Ford Focus are approved budgeted replacements and will be funded by the IT capital
Account No.550-0640-000673.
The Administration recommends approving the purchase.
Financial Information·
Source of Amp~~t
Funds: ' 1 . $ 159,603.00
. ·~. $ 32,337.00
/"' 3 $ 16,087.00
L / 4 $ 103,862.00
/\ I 5 $ 16,953.00
I \J I ,~. $ 163,530.00
\1\ 7 $ 16,080.00
1\"\. 8 $ 32,174.00 u \ . 9 $ 92,349.00 , ~(} $ 88,026.00
1:1 $ 2,756.979.00
OBPI Tqte;J $ 3,477.980.00
SF __
T:\AGENDA \2012\February 8\Consent\Fieet.Summ
MIAMIB CH
··A~t9!1nt ·;.·' ....
425-0410-000673 PW Water Div. Ent. Fund Capital Account.
425-0420-000673 PW Sewer Div. Ent. Fund Capital Account.
427-0427-000673 PW Storm Water Div. Capital Account
435-0430-000673 PW Sanitation Div. Ent. Fund Capital Account
435-9962-000673 PW Sanitation Div. Ent. Fund Capital Account.
480-0462-000673 Parking on Street Fund Capital Account.
480-0463-000673 Parking off Street Fund Capital Account.
011-0820-000673 CIP Fund Account.
550-0640-000673 IT Fund Capital Account
520-1720-000673 PW Prope_rty Mgmt. Fund Capital Account.
510-1780-000673 Fleet Management Fund Capital Account.
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AGENDA ITEM _f<._:l_A __
DATE __.2 ...... --'<-~--4-/ ..... 2...~
m MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO:
FROM:
Mayor Matti Herrera Bower and Members of the City Commission
Jorge M. Gonzalez, City Manager ~ ~
DATE: February 08, 2012
SUBJECT: REQUEST FOR APPROVAL TO PURCHASE BUDGETED REPLACEMENT
AND VEHICLE ADDITIONS AND EQUIPMENT PURSUANT TO FLORIDA
STATE CONTRACT N0.11-19-09071N THE AMOUNT OF $3,477,980.00.
ADMINISTRATION RECOMMENDATION
Approve the purchase.
FUNDING
$ 159,603.00
$ 32,337.00
$ 16,087.00
$ 103,862.00
$ 16,953.00
$ 163,530.00
$ 16,080.00
$ 32,174.00
$ 92,349.00
$ 88,026.00
$2,756.979.00
ANALYSIS
Funding is available from the Public Works Water Division Enterprise Fund
Capital Account No. 425-041 0-000673.
Funding is available from the Public Works Sewer Division Enterprise Fund
Capital Account No. 425-0420-000673.
Funding available from The Public Works Storm Water Division Enterprise
Fund Capital Account No. 427-0427-000673.
Funding is available from the Public Works Sanitation Division Enterprise
Fund Capital Account No. 435-0430-000673.
Funding is available from the Public Works Sanitation Division Enterprise
Fund Capital Account No. 435-9962-000673.
Funding is available from the Parking On-Street Fund Capital Account No.
480-0462-000673.
Funding is available from the Parking off Street Fund Capital Account No.
480-0463-000673.
Funding is available from the CIP Fund Account No. 011-0820-
000673.
Funding is available from the IT Fund Capital Account No.550-0640-
0000673.
Funding is available from the Public Works Property Management Division
Capital Account No. 520-1720-000673.
Funding is available from the Fleet Management Fund Capital Account No.
510-1780-000673 previously appropriated in the adopted Capital Budget.
See attachments:
246
Commission Memorandum
February 08, 2012
Page2
BACKGROUND
1. All vehicles and equipment are scheduled for review and or replacement based on a
pre-determined schedule using the average life expectancy based on industry
standards and type of service for which the vehicle/equipment is being used.
2. Each year the Fleet Management capital budget for replacements is adjusted in
accordance with the schedule.
3. Once the vehicle(s) reach the planned replacement schedule, the vehicle/equipment
is physically inspected.
4. All information related to the vehicle is reviewed i.e. age, mileage/hours,
maintenance cost, depreciation value, residual value, accident record and overall
condition are taken into consideration.
5. Determination is made whether the vehicle(s) should be replaced or can safely
remain in the fleet for an additional time period and still be cost effective to maintain.
6. The vehicles and equipment that are being replaced are based on the Fleet
Management approved budget for FY11/12 and does not exceed the overall
budgeted amount for the fiscal year.
7. Exceptions do occur when approved funds from a previous year are encumbered
and carried forward. This usually is a result of the need to revise specifications
based on current situation and customer requirements.
8. Manufacturers may phase out makes and models due to exceeding their capacity to
fill orders in any particular model year. Specifically the latter situation typically
benefits the City by receiving a newer model vehicle with previous model year
pricing.
Vehicle/Equipment Efficiency Program
Economic conditions and rising fuel prices has driven Fleet Management to review vehicle
and equipment efficiency. Implementation of rightsizing and downsizing is a key priority for
both Fleet Management and end user departments. Over the last couple of years, the City
has purchased 'flex fuel' vehicles, departments have gone from full size sedans to midsize
and even compact cars. Departments have also re-structured how to conduct their
operations more efficiently. As of this date we have downsized 107 vehicles within Police
and Fire Department. Building and Code Compliance departments and others have
eliminated 1 02 vehicles and equipment over the last several years.
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Commission Memorandum
February 08, 2012
Page3
Additional Vehicle Assessment
Beyond the typical vehicle analysis that is conducted, Fleet Management in conjunction with
the affected Departments has adopted a temporary added level of review to assist in helping
to balance the budget. The additional review is intended to assure that the vehicle is
absolutely needed in order to perform the functions of the respective Department and if so,
can the vehicle be deferred safely for an additional year. This added review is a temporary
measure as eventually maintenance costs will increase as the fleet ages, to the point that
the policy becomes counterproductive. This additional review was started in fiscal year
08/09. It is a balancing act to determine if the deferral will cost more in added maintenance
cost versus the savings from the deferral and is shown in the accompanying attachments as
'Original Replacement Schedule'. One Hundred One (1 01) of the One Hundred Sixty Eight
(168) total vehicles being replaced are two (2) years or more past their Life Expectancy
equating to 60.00%. Sixty Seven (67) are between zero (0) and two (2) years past their Life
Expectancy equating to 40.00%. In all instances the useful life of the vehicle has been
completed or no longer cost effective to operate or maintain.
Vehicle/Equipment Acquisitions
In preparing the annual fleet acquisitions list, Fleet Management analyzes contract pricing
when such contracts are available and within the guidelines of the City Procurement Policy.
The analysis of the State wide contracts is critical as this review affects the decision to use
the contracts or pursue a separate bid. Historically, and again in this fiscal year, the review
indicates that use of the large State wide contracts are much more advantageous to the City
than bidding on our own. When the Contracts are compared to the manufacturer's
suggested retail price (MSRP), the pricing historically and also in this year, is significantly
lower because certain Fleet dealers, usually high volume factory recognized, receive a "price
concession" from the vehicle manufacturers when bidding on government contracts.
Upfitting of Vehicles and Equipment
Upfitting of vehicles and equipment is accomplished through the OEM (Original Equipment
Manufacturer) or a third party vendor. Cost comparison and warranty coverage is
researched by Fleet Management and Fleet will make the decision based on what is in the
best interest for the City.
Extended Warranties
First year models and specialized vehicles receive more consideration based on the
complexity of the vehicle. In the case of a Police or Fire take home vehicle we made a
conscious decision to not purchase extended warranties as of 2003 because the vehicle has
been proven to perform well up to the 85,000 miles and beyond with no major repairs. To
date we have saved $1,731,231 in warranty.
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Commission Memorandum
February 08, 2012
Page4
Benefits of State and Contract Pricing
Fleet Management typically utilizes Contracts from the State of Florida, Florida Sheriffs
Association (FSA) and Government Services Association (GSA). Historically the Florida
Sheriffs Association has been the primary contract used because they have consistently
offered vehicles, equipment and services at the lowest cost to the City. FSA "request for
bid" is sent to over 20 dealers throughout the state for police vehicles. The results are a
2,000 page contract document which covers everything from A TV's, motorcycles, police
cars, rescue vehicles to waste haulers.
Police Vehicles and Fire apparatuses being the bulk of the contract. This contract is a good
example where the City benefits from the aggregate purchasing power of FSA, which are
over 6,000 units statewide annually. In the absence of an approved available contract Fleet
Management will formally bid any vehicle or equipment over $25,000. In the current
acquisition the City will save $954,097 based on contract price versus MSRP.
Surplus Vehicles and Equipment
Once a vehicle or equipment is identified as "surplus" it is generally scheduled for sale at
public auction or in some instances the vehicle/equipment may be used as a trade-in,
offered to other law enforcement agencies at fair market value, whichever is in the best
interest of the City. Surplus police vehicles are offered for sale "AS IS" fully equipped to
other Police Agencies prior to being auctioned. These types of sales generally increase
surplus value because we eliminate the expense of decommissioning the vehicle (removal of
police equipment).This process effectively reduces the City's cost of ownership and
completes the vehicles life cycle. The process that is utilized by the City extracts the
remaining values from the vehicles and is applied to future purchases to reduce the new
acquisition cost.
Occasionally you will see a vehicle being replaced that has already been sent to auction.
This is usually as a result of a vehicle being dead lined prior to replacement as the repair
costs would exceed the value of the vehicle, the remaining service life is less than one (1)
year and/or the vehicle is unsafe to operate.
Additional Vehicles Purchase
The Parking on Street department is adding four (4) 2012 Ford Focus for enforcement.
These vehicles will be utilized by part time officers added in FY11 budget to cover all shifts.
The CIP department is adding two (2) 2012 Ford Focus. The availability of two additional
cars will improve accessibility to field staff visiting their projects on an on-going basis. The
use of marked City cars will also have the serve to remind the community that there is City
staff on the job monitoring the progress of our projects. These vehicles are approved
budgeted additions.
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Commission Memorandum
February 08, 2012
PageS
Recommendation
All of the vehicles recommended for replacement have been evaluated to determine if the
piece is still necessary for the functions performed and if its condition warrants deferred
replacement. Given the age, high maintenance cost and down time, none of these vehicles
can be deferred. Upon approval by the commission, the City Manager will direct Fleet
Management at his discretion the vehicles and equipment that will receive final approval for
purchase.
CONCLUSION
Based on the aforementioned, the Administration recommends that the City Commission
approve the purchase of the budgeted replacement vehicles and equipment pursuant to
Florida State Contract No. 11-19-0907 in the amount of $3,477,980.00.
JMG/DB/AET/jt
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N CJ1 ~ MAJOR GROUPING OF VEHICLE/EQUIPMENT EXTENDED LIFE CYCLE !l!lll Normal Replacement Cycle in Years VAN UTILITY 3/4 TON TRUCK 4WD 3/4 TON CREW CAB TRUCK 4WD 3/4 TON TRUCK 2WD 1/2 TON TRUCK 2WD 1 TON UTILITY BODY CAR COMPACT VAN MINI/CARGO TRUCK 4WD 1/2 TON TRUCK 2WD 3/4 TON UTILITY BODY TRUCK 2WD 3/4 TON CREW CAB TRUCK 2WD 1 TON CREW CAB SEDAN FWD FULL SIZE-PURSUIT POLICE INTERCEPTOR UTILITY AWD CAR INTERMEDIATE SEDAN POLICE INTERCEPTOR-PURSUIT SEDAN FULL SIZE-ADMIN 111111 Extended Replacement Cycle in Years ru Acquisition to Delivery Cycle in Month 168 Vehicles/Equipment on the February 08,2012 Commission Agenda
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