R2B-Approve Purchase Replacement And Vehicle Additions And Equipment 967819 91COMMISSION ITEM SUMMARY
Condensed Title:
Request For Approval To Purchase Budgeted Replacement Specialized Equipment Pursuant To Florida State
Contract No.11-10-1202, Florida State Contract No. 11-19-0907 And GSA Contract No. GS-07F-0011J, In The
Amount Of $967,819.91.
Key Intended Outcome Supported:
Increase community satisfaction with City Government.
Supporting Data (Surveys, Environmental Scan, etc.):
97% of residents and 95% of businesses rated the overall quality of fire, EMR, Ocean Rescue preparedness as
excellent or good. 79% of residents and 82% of businesses rated well-designed capital projects as excellent or
good.
Issue: I Shall the Mayor and City Commission approve the purchase?
Item Summary/Recommendation:
Five (5) 2012 Kawasaki Mules, one (1) 2012 Thomas School Bus, one (1) 2012 Boston Whaler, one (1) 2012
BoatMaster trailer, and one (1) 2012 Pierce Velocity PUC Pumper are approved budgeted replacements and will be
funded by the Fleet Management Fund Capital Account No. 510-1780-000673. The Administration recommends
approving the purchase.
Financial Information:
Source of /. ~lil'r~tfpt ...
Funds: 1 $ 967,819.91 510-1780-000673 Fleet Management Fund Capital Account.
2
3
/\ / 4 1\ i/ !-'--,>.,-.., .• +"-,---+-------+----------------1
/, \ 6: ~~~+-------------~--------------------------------------~ I 'JI\ 1. I ~ ~~~.-+-----+-----------------------~
" 9
r-------~ ~~~+-------------~--------------------------------------~ 1;QC
OBPI To~~·· $ 967,819.91
City Clerk's Office Legislative Tracking:
T:\AGENDA\2012\February 08\Consent\Fieet Spec.Summ
MIAMI BEACH
259
AGENDA ITEM _}<_2_£3 __
DATE 2-,3-/2.
~ MIAMI BEACH
City of Miomi Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
TO:
FROM:
Mayor Matti Herrera Bower and Members of the City Commission
Jorge M. Gonzalez, City Manager .Jt:ZJ-,fPI' ..JM4
DATE: February 08, 2012
SUBJECT:REQUEST FOR APPROVAL TO PURCHASE BUDGETED REPLACEMENT
AND VEHICLE ADDITIONS AND EQUIPMENT PURSUANT FLORIDA STATE
CONTRACT NO. 11-10-1202, FLORIDA STATE CONTRACT NO. 11-19-0907
AND GSA CONTRACT NO. GS-07F-0011J IN THE AMOUNT OF $967,819.91.
ADMINISTRATION RECOMMENDATION
Approve the purchase.
FUNDING
$ 967,819.91 Funding is available from the Fleet Management Fund (510-1780-000673}
previously appropriated in the adopted Capital Budget.
ANALYSIS
See attachments:
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.
260
Commission Memorandum
February 08, 2012
Page2
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.
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'. Three (3) of the Nine (9) total vehicles being replaced are two (2)
years or more past their Life Expectancy equating to 33.00%. Six (6) are between zero (0) and
two (2) years past their Life Expectancy equating to 67.00%. 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.
261
Commission Memorandum
February 08, 2012
Page3
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.
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 $111,951.43 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. 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.
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.
262
Commission Memorandum
February 08, 2012
Page4
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. 11-10-1202 and GSA contract No.GS-07F-0011J in the amount
of $967,819.91
JMG/DB/AET/jt
T:\AGENDA\2012\February 08\Fieet Spec.memo.doc
263
N 0) ~ Vehicle Tvpe
N 0) CJ1 MAJOR GROUPING OF VEHICLE/EQUIPMENT EXTENDED LIFE CYCLE illlll Normal Replacement Cycle in Years illlll Extended Replacement Cycle in Years m Acquisition to Delivery Cycle in Month FIRE ENGINE/PUMPER BUS PASSENGER BOAT TRAILER BOAT OCEAN RESCUE UTILITY CART-DIESEL 9 Vehicles/Equipment on the February 08, 2012 Commission Agenda [R2B]
THIS PAGE INTENTIONALLY LEFT BLANK
266