R7I Waive Bid-Execute Amendment 3 Agmt w-Limousines Of S Fla -Municipal TroCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The Recommendation Of The City Manager, Waiving By 5t7'n Vote The Competitive Bidding Requirement,
Approving And Authorizing The Mayor And City Clerk To Execute Amendment No. 3 To The Agreement With Limousines Of South
Florida, lnc., Approving Fifteen New Low Floor Trolley Vehicles For The North Beach And Middle Beach Routes For Trolley
Operations ln An Amount Not To Exceed $7.880.000 Annuall
Key lntended Outcome Supported:
Ensure Comprehensive Mobility Addressing All Modes Throughout The City.
Supporting Data: As recently indicated in the 2014 City of Miami Beach Community Satisfaction Final Report, citywide Traffic Flow,
Parking Availability and Road Conditions have been rated as very poor and appear in a down trend. Additionally, according to the
same report, 49o/o of Miami Beach residents would be willino to use local bus circulators as an alternate mode of transoortati
Item Summa
Financial lnformation :
On April 30,2014, the City Commission approved the award of Bid No. 2014-154-SR for Turnkey Trolley Operations and Maintenance Services to
Limousines of South Florida, lnc. (LSF), providing for the operation of the existing North Beach Trolley service and included provisions for
additional routes at the City's sole discretion. On April 15,2015, as a result of concerns regarding the accessibility of High-Floor trolley vehicles by
elderly and disabled persons, the City Commission directed the Administration to use Low-Floor trolley vehicles for the provision of present and
future trolley service. ln addition, on June 10,2015 the City Commission approved the Middle Beach Loop and the Collins Link routes. The
implementation of the Middle Beach Loop and the Collins Link requires an Amendment to the existing Agreement with LSF. The provisions
included in this Agreement provide that the hourly rate shall be negotiated if the change in service is increased or reduced by more than 20%.The
addition of these routes would represent an increase of more than 300%, from approximately 23,000 to 94,000 total operating hours per year.
During negotiations, the Administration focused on reducing the hourly rate based on LSF's savings on fixed overhead costs (e.9. facilities,
security, admin, etc.) as a result of the substantial increase in the number of operating hours (economies of scale). The Administration also
focused on the decrease in fuel prices over recent months, pursuant to the index adjustment provided in the contract. The last significant point of
focus was the increase in hourly rate due to the change from ln-Step trolley vehicles to low-floor (which doubles capital investment by LSF).
LSF, however, raised concerns about potential unforeseen costs that may result from the operation and maintenance of the new Low-Floortrolley
vehicles. LSF advised that the proposed hourly rate for the Low-Floor vehicle option includes an added cost due to potential "unforeseen/unknown
conditions". LSF does not have experience with the operation and maintenance of the proposed vehicles given that Low-Floor trolleys were
introduced in the market in 2015. LSF has provided little to no documentation to support the higher maintenance costs, in particular, information to
substantiate the "unforeseen" costs included in this hourly rate. The initial hourly rate proposed by LSF for low floor trolley vehicles was $82.33
prior to negotiations. The final hourly rate proposed by LSF is $78.39, a decrease in the annual cost of $329,000.
LSF proposed that two (2) additional trolley vehicle options be considered (i.e., a High-Floor/ln-Step Lift trolley vehicle option and a
Modified/'Kneeling' High-Floor/Rear-End Lift trolley vehicle option). With all vehicle options, the City was not able to review supporting
documentation for a charge in the fuel rate calculation proposed by LSF. ln addition, the proposed rates did not reflect any significant economies
of scale for the increased hours. However, LSF's hourly rate for the bid in April 2014 was approximately $18.00 less than the second bidder and
LSF is the only turnkey trolley operator in Miami-Dade County at this time.
RECOMMENDATION
Pursuant to the City Commission motion on April 15,2015 directing the Administration to use low-floor trolley vehicles for the existing and future
trolley routes in the City, the attached Resolution approves and authorizes the Mayor and City Clerk to execute Amendment No. 3 to the
Agreement between the City and LSF for the addition of the Middle Beach Trolley routes and service plan using low-floor trolley vehicles at a cost
of $7,880,000 annually.
However, given the $1 ,1 80,000 annual cost differential between the use of low-floor vehicles and high-floor vehicles, the Administration suggests
that the Commission consider the use of the modified/'kneeling' high-floor trolley vehicles. Further, as an alternative, should the City Commission
believe that low-floor trolley vehicles for the service are critical, the Commission may elect to consider issuing a bid forthe Middle Beach Loop and
Collins Link. Please note that issuing a bid for the Middle Beach routes will delay implementation of the Middle Beach Loop and Collins Link by
approximately 3 - 4 months and, fu(her, there is a possibility that LSF may be the only bidder and/or that the resulting hourly rates may be higher
than those LSF at this time.
Board
Source of Funds:Amount Account
$6,052,000 FY 2015/16; 106-9615-000349 Transportation Fund
J\t-)$1,828,000 FY 2015/16 1 87-6300-000349 PTP Fund
\ Total | $7,880,000
MIAMIBEACH,b
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City of }liomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33139 www. m iomibeochfl.gov
SSION MEMORANDUM
TO: Mayor Philip Levine and Mem the City
FROM: Jimmy L. Morales, City Manager
DATE: October 21,2015
SUBJECT:A RESOLUTION OF THE MA AND CITY COMMISSION OF THE CITY OF
MIAM! BEACH, FLORIDA, ACCEPTING THE REGOMMENDATION OF THE
CITY MANAGER AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE
BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY, AND APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 3 TO THE
AGREEMENT, DATED MAY8,2014, BETWEEN THE CITYAND LIMOUSINES
OF SOUTH FLORIDA, !NC., FOR TURN.KEY OPERATIONS AND
MAINTENANCE SERVICES OF A MUNICIPAL TROLLEY SYSTEM FOR THE
CITY OF MIAMI BEAGH; SAID AMENDMENT INCREASING THE SCOPE OF
THE AGREEMENT TO INCLUDE THE FOLLOWING: (1) THE ADDITION OF
THE OPERATION AND MAINTENANCE SERVICES FOR TWO NEW ROUTES
tN MTDDLE BEACH (THE MTDDLE BEACH LOOP AND THE GOLLINS LtNK);
(2) THE ADDTTTON OF FTFTEEN (15) NEW LOW FLOOR TROLLEY
VEHICLES FOR THE OPERATION OF THE NORTH BEACH AND MIDDLE
BEACH ROUTES; (3) A NEGOTIATED NEw HOURLY RATE
COMMENSURATE WITH THE COST OF SAID NEW TROLLEY VEHICLES
AND THE ADDITIONAL SERVICES FOR THE NEW MIDDLE BEACH
ROUTES; (4) THE EARLY EXERCISE OF THE TwO (2) RENEWAL OPTIONS,
EXTENDING THE AGREEMENT TERM THROUGH MAY 7, 2021; (5) lN
ADDTTTON TO THE TERM PROVIDED !N SUBSECTTON (4) OF THIS
RESOLUTION, FURTHER EXTENDING THE TERM, AS TO EACH ROUTE, TO
TNCLUDE A FULL StXTy (60) MONTH TERM, GOMMENCTNG AS OF THE
ROLL.OUT DATE OF ALL THE NEW TROLLEY VEHIGLES FOR EACH
RESPECTIVE ROUTE; (6) AUTHORIZING THE clTY MANAGER TO
APPROVE THE PURCHASE OF ADDITIONAL OPTIONAL EQUIPMENT FOR
THE TROLLEY VEHICLES IN THE CITY FLEET, AS MAY BE NEEDED IN THE
ADMI N ISTRATION'S DISC RETION, SU BJ ECT TO F U N DING AVA! LAB! LITY;
AND (7) ANY ADDTTTONAL MODTFTCATTONS DEEMED NECESSARY By THE
ADMINISTRATION WITH RESPECT TO THE ADDITIONAL SCOPE
CONTEMPLATED BY THE AMENDMENT; SAID AMENDMENT INCREASING
THE COST OF THE AGREEMENT, IN AN AMOUNT NOT TO EXCEED
$7,880,000 ANNUALLY.
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BAGKGROUND
On April 30,2014, the City Commission approved the award of lnvitation to Bid (lTB) No. 2014-154-
SR for Turnkey Trolley Operations and Maintenance Services to Limousines of South Florida, lnc.
(LSF). Following the approval of the lTB, an Agreement between the City and LSF was executed on
May 8, 2014. This ITB allowed for the operation of the existing North Beach Trolley service and
included provisions for additional routes at the City's sole discretion.
On October 22,2014, the City Commission made a motion directing the Administration to proceed
with planning and developing a Middle Beach Trolley route and service plan as part of a citywide
i ntercon nected trol ley system.
On April 15,2015, as a result of some concerns from the Administration regarding the accessibility
of High-Floortrolley vehicles by elderly and disabled persons and the impact on headways, the City
Commission passed a motion directing the Administration to use Low-Floor trolley vehicles for the
provision of present and future trolley service. At this meeting, the City Commission also referred the
Middle Beach Trolley route and service plan to the Neighborhood/Community Affairs Committee
(NCAC) for discussion.
On May 29,2015, the Administration presented a proposed Middle Beach Loop and the Collins Link
routes and service plans to the NCAC. The Committee passed a motion recommending the
approval of the proposed Middle Beach Trolley route and service plan (as presented by the
Administration) which was subsequently approved by the City Commission on June 10,2015. At the
same time, the City Commission authorized the Mayor and City Clerk to execute lnterlocal
Agreements with Miami-Dade County for the operation of two (2) municipal circulator routes.
The proposed trolley routes and lnterlocal agreements were subsequently approved by Miami-Dade
Transit (MDT), the County's Transit Services and Mobility Committee (TSMC) on August 26,2015,
and the Board of County Commissioners (BCC) on September 1, 2015 after concluding that the
City's proposed trolley routes would not have an adverse impact on the existing MDT bus service.
The documents have been executed and have been filed with the City Clerk's office.
ANALYS!S
Low-Floor Trolley Vehicles (No-Lift)
As the Administration reported to the City Commission at its January 10, 2015 meeting, the
implementation of the Middle Beach Trolley routes (Middle Beach Loop and Collins Link) requires an
Amendment to the existing Agreement with LSF, which was executed based solely on the North
Beach Trolley route. However, the Agreement includes provisions that allow for the addition of
routes at the City's discretion. The provisions included in this Agreement also indicate that the hourly
rate shall be negotiated if the change in service is increased or reduced by more than 20%. lt is
important to note that the addition of the Middle Beach Loop and Collins Link would reoresent an
increase of more than 300%. from approximatelv 23.000 to 94.000 total operatino hours per vear.
The negotiations between the Administration and LSF focused on reducing the current hourly rate
for LSF's overhead costs (e.9. facilities, security, administration, supervision, etc.) due to economies
of scale resulting from the proposed increase in total number of operating hours.
The Administration also focused on reducing the hourly rate based on savings on fuel as oil prices
have dropped significantly within the last twelve (12) months. The current Agreement includes
provisions for adjustments in the hourly rate when fuel price fluctuations are greater than 10%. The
fuel index included in the contract has declined 49.5o/o since contract execution. The hourly rate
provided by LSF in April 2014 for the fuel component of the rate was $9.60.
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The last focus of negotiation was the increase in hourly rate due to the change in vehicle type from
the current ln-Step trolley vehicles to Low-Floor vehicles. This component represented a significant
change as the capital cost of each Low-Floor trolley vehicle is nearly double the cost of an ln-Step
trolley vehicle. As stated above, Low-Floortrolley vehicles were recommended by City Commission
for an hourly rate not to exceed $79.91 per hour (15% above the current hourly rate). An hourly rate
for operation of trolley services in both North and Middle Beach with new Low-Floor vehicles was
proposed by LSF and is presented below.
For the low-floor trolley service LSF will purchase fifteen (15) new Low-Floor trolley vehicles in
addition to the existing five (5) High-Floor ln-Step trolley vehicles currently providing service in North
Beach. The existing five (5) North Beach trolley vehicles would serve as spares for the entire fleet
(North Beach and Mid Beach) while the proposed fifteen (15) trolley vehicles would be used to
operate the North Beach Loop and the Middle Beach Loops.
It is important to note that during the negotiations between the Administration and LSF for the
addition of the Middle Beach Loop and the Collins Link to the existing Agreement, LSF raised
concerns about manufacturerwarranty being voided due to after-market modifications to the vehicle
chassis as well as potential unforeseen costs that may result from the operation and maintenance of
the new Low-Floor trolley vehicles. ln particular, LSF expressed concerns with the reduced useful
life of the tires due to the vehicle's lower suspension.
Due to these stated concerns, LSF advised that the proposed hourly rate for the Low-Floor vehicle
option includes an added cost due to potential "unforeseen/unknown conditions". lt is important to
note that LSF has not had experience with the operation and maintenance of the proposed vehicles
given that Low-Floor trolleys were introduced in the market in2015. Additionally, LSF has provided
little to no documentation to support the higher maintenance costs, in particular, information to
substantiate the "unforeseen" costs included in the hourly rate for low-floor trolley vehicles.
The initial hourly rate proposed by LSF for lowfloortrolley vehicles was $82.33 priorto negotiations.
The final hourly rate proposed by LSF is $78.39, representing a decrease in the annual cost of
$329,000. Despite this decrease, the Administration continues to have the following concerns:
1. While the LSF-proposed hourly rate includes a fuel adjustment, LSF has subsequently
informed the City that the $9.60 hourly rate currently in effect included additives, fueling
personnel, and maintenance-related costs in addition to fuel, and that the fuel component
was really only $5.24 per hour. ln addition, LSF's proposed rate includes a contingency
factor of 9% of fuel cost in case fuel prices increase. As a result, even if the City were to
continue with the existing service, the fuel decrease proposed by LSF is $2.58 instead of
$4.75 (i.e., $9.60 x49.5o/o). While LSF has explained the components to staff, staff has not
been able to review or verify any supporting documentation.
2. Similarly, LSF has explained that they believe they will have increased costs due to the
expanded fleet (e.9., storage facilities, increased supplies, etc.), thereby offsetting any
overhead savings. However, without review of supporting documentation, the City cannot
verify the costs.
3. The final hourly rate proposed by LSF for service using low-floor trolley vehicles is $78.39.
This rate is $12.58 higherthan the service using eithertype of high floortrolleyvehicle.
While the City concurs that these vehicles have increased maintenance and fuel costs and
are more expensive to purchase, staff was not provided with supportive documentation for
review.
Nonetheless, it is worth noting that when the lnvitation to Bid for Turnkey Trolley Operations and
Maintenance Services was issued in April 2014, LSF's hourly rate ($69.49) was approximately $tA
301
Commission Memorandum - Amendment No. 3 to Turnkey Trolley Operations and Maintenance Services Agreement
October 21,2015
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lower than the second bidder (MV Transportation); although, MV Transportation bid on a more
expensive high floor trolley vehicle. Further, LSF is the only entity operating full turn-key trolley
service in Miami-Dade County at this time and it is possible that if the City were to rebid these
services, the hourly rate could be higher than LSF's proposed rates. As an example, the City of
Miami Gardens recently entered into a contract with LSF for full turnkey trolley services at an hourly
rate of $72.40 which is $2.91 higher than our current rate for the same type of high floor trolley
vehicle.
Due to the concerns expressed by LSF with regards to Low-Floor trolley vehicles, LSF proposed that
two (2) additional trolley vehicle options be considered by the City (i.e., a High-Floor/ln-Step Lift
trolley vehicle option and a Modified/'Kneeling' High-Floor/Rear-End Lift trolley vehicle option).
Below are the initial (prior to negotiations) and final hourly rates proposed by LSF for each option.
lmages of each vehicle option are depicted in Attachment B.
Option 1 - Existing High-Floor/ln-Step Lift Trolley Vehicles
This option includes the purchase by LSF of fifteen (15) new High-Floor/ln-Step trolley vehicles
(same type of vehicle currently used for the North Beach Loop) in addition to the existing five (5)
vehicles currently providing service in North Beach. The existing five (5) North Beach trolleyvehicles
would serve as spares for the entire fleet (North Beach and Middle Beach) while the proposed
fifteen (15) trolley vehicles would be used to operate the North Beach Loop and the Middle Beach
Loops.
The initial hourly rate proposed by LSF for this vehicle option was $69.49 prior to negotiation. The
final hourly rate proposed by LSF is $65.81.
Option 2 - Modified/"Kneeling" High-Floor/Rear-End Lift Trolley Vehicle
This option includes the purchase by LSF of fourteen (14) new High-Floor/Rear-Lift "kneeling" trolley
vehicles in addition to the existing five (5) High-Floor/in-step lift trolley vehicles currently providing
service in North Beach. Four (4) of the existing five (5) North Beach Trolley vehicles would serve as
spares for the entire fleet while the new fourteen (14) vehicles and one (1) of the existing North
Beach Trolley vehicles would be used to operate the expanded service (North Beach Loop and the
Middle Beach Loops).
The initial hourly rate proposed by LSF for this vehicle option was $69.49 prior to negotiations. The
final hourly rate proposed by LSF is $65.81.
COMPARISON OF PROS AND CONS FOR EACH TROLLEY VEHICLE OPTION
Below is a list of pros/cons developed by Transportation Department staff for each of the trolley
vehicle options presented by LSF.
Low-Floor Trolley Vehicle (No-Lift)
According to the TCRP Report 41, Chapter 2, of the Transportation Research Board titled "New
Design and Operating Experiences with Low-Floor Buses", sponsored by the Federal Transit
Administration (FTA), the following major pros and cons were identified by transit agencies
(nationwide) using Low-Floor vehicles:
Pros. lmproved accessibility for all. Positive impact on ridership. lmproves customer's perception of service and reliability. Encourages use by disable patrons
. lmproves maneuverability (steering/handling)
. Much less cost of maintenance for access equipment (ramp)
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o 5 to 6 times less road-calls/breakdowns for access issues. Minimal changes to maintenance facilities required. Better driver eye contact with passengers
Cons. Reduced seating capacity as compared to the same size High-Floor vehicle. Roughly 20 o/o shorter life of tires. Some agencies identified sporadic wheel damage. Higher capital cost of vehicle
Option 1 - Existing High-Floor/ln-Step Lift Trolley Vehicle
Proso Lower capital cost of vehicle. LSF's familiarity with operation and maintenance of the vehicle
Conso Frequent lift breakdowns. Delays in service due to breakdowns or accessibility issues. Perceived as inconvenient and unsafe by disable and elderly passengers
Option 2 - Modified/Kneeling High-Floor/Rear-End Lift Trolley Vehicle
Proso Lowest capital cost of vehicle. LSF's familiarity with operation and maintenance of the vehicleo Modified step raiser (partially enhanced access)
Cons. Frequent lift breakdownso Delays in service due to breakdowns or accessibility issueso Perceived as inconvenient and unsafe by disable and elderly passengers
. ADA passenger sits at rear of vehicle (out of reach/unattended)o Adversely impacts interior vehicle aestheticso Consumes interior space in the rear of the vehicle (less leg room)
Additionally, staff found that currently more than 90% of the vehicles used for transit service in the
nation (including Miami-Dade Transit) are low-floor vehicles. lt is important to note that most transit
agencies use low-floor buses. Only a handful of transit agencies use trolley vehicles and even fewer
have low-floor trolley vehicles since this type of vehicle was only recently introduced in the market.
The cities of Coral Gables and Virginia Beach have recently purchased low-floor trolley vehicles and
both cities have indicated to staff that they are pleased with the performance of their new vehicles.
Staff also looked into the lift-related breakdowns and deployments on the City's existing North
Beach Trolley and Alton-West Trolley service. Staff found that from April to August 2015, the North
Beach Trolley service, which operates with High-Floor trolley vehicles with in-step hydraulic lifts,
experienced an average of 108 lift deployments per month. lf we consider that every lift deployment
can potentially delay the affected trolley for nearly ten (10) minutes, the total amount of lost service
hours can escalate to 18 hour or more per month. ln addition, staff noted that, on average, five (5) to
seven (7) lift-related malfunctions occur each month on the North Beach Trolley service. It has been
documented that each lift malfunction delays the impacted vehicle by approximately 30 minutes and
often requires an LSF supervisorto drive to the location of the affected trolley vehicle and repairthe
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Commission Memorandum - Amendment No. 3 to Turnkey Trolley Operations and Maintenance Services Agreement
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malfunctioning in-step lift. lt is important to note that in addition to the loss of service hours, the
delavs caused by lift deplovments and lift malfunctions also have a sionificant impact on the
advertised headways.
ln regards to the Alton-West trolley, which uses a rear-end hydraulic lift, staffs analysis showed that,
on average, this service reported ten (10) deployments per month. However, staff has found this
type of lift to be often non-functional when inspected. The City of Miami also uses this type of lift on
its trolley vehicles, and staff from the City of Miami has also reported experiencing significant issues
with this type of lift.
The use of high floor vehicles versus low floor vehicles for the expanded trolley service was
discussed at the Transportation, Parking, and Bicycle-Pedestrian Facilities Committee on October
12,2015. At the meeting, the Committee recommended the use of low-floor trolley vehicles while
recognizing the higher cost associated with this type of vehicle.
Regardless of the vehicle option selected, upon approval of the Amendment by the City
Commission, LSF will have all necessary guarantees to order vehicles for the operation of the
Middle Beach Loop and Collins Link routes. lt is important to note that upon ordering the trolley
vehicles, the manufacturing and delivery of the vehicles may take from four (4) - nine (9) months
depending on the type of trolley vehicle selected and the current level of demand experienced by the
manufacturer once the order is submitted. The Administration will work with trolley manufacturer to
expedite the manufacturing and delivery of the trolley vehicles to the extent possible.
The following material changes to the current Agreement with LSF will be included in Amendment
No.3:
1. Performance Penalties - Given that performance penalties are currently based on the
number of vehicles and operating hours, the daily fee cap will be adjusted proportionally to
the groMh in fleet and hours of operation.
2. New Vehicles - Depending on the vehicle option approved by City Commission, the
proposed Amendment will include provisions for the purchase by LSF of trolley vehicles
required for the operation of the following three (3) routes. North Beach Loop, Collins Link,
and Middle Beach Loop at the desired service headways of approximately 10 minutes.
Additionally, this provision will require that the existing High-Floor/ln-Step trolley vehicles
currently operating in North Beach serve as spare vehicles forthe expanded trolley service.
3. Vehicle Ownership - Ownership of vehicles at the end of the contract term is not currently
addressed in the Agreement. A provision addressing the ownership of the vehicle at the end
of the contract term will be included in this Amendment. The hourly rate proposed by LSF
for each of the (3) vehicle options presented herein are based on LSF providing a credit
(built into the hourly rate) to the City of approximately $20,000 per high-floor trolley vehicle
and $50,000 for low-floor trolley vehicle for the residual value of each vehicle at the end of
the contract term and LSF owning the vehicles at the end of the contract term.
4. Optional Equipment - Currently, the Agreement includes a provision for the purchase and
installation of "optional equipment" at the City's sole discretion at a not-to-exceed cost of
$200,000. This Amendment will include a provision giving authority to the City Manager to
increase the cap as needed in order to secure the purchase and installation of optional
equipment for new vehicles and service including, but not limited to, the GPS trackers,
modems automatic passenger counters, monitors, and automated voice information
systems. The increase will be subject to budget availability.
5. Hourly Rate - The current hourly operating rate of $69.49 is based on LSF providing 23,360
304
Commission Memorandum - Amendment No. 3 to Turnkey Trolley Operations and Maintenance Services Agreement
October 21,2015
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hours per year of turnkey trolley service for the North Beach Loop using four (4) High-
Floor/ln-Step trolley vehicles (plus one spare trolley vehicle). The Amendment will include
the final hourly rate proposed by LSF of $78.39 for low-floor trolleys. Additionally, a provision
addressing the commencement date of the new hourly operating rate will be included in the
Amendment.
6. Term - Given that LSF's hourly operating rate is based on a 60-month vehicle amortization
schedule, and since the delivery of trolley vehicles may take as much as nine (9) months
from the time the order is placed, thereby extending the contract term beyond all approved
renewal terms, the Administration is recommending that the City Commission waive
competitive bidding for the period of time required to guarantee a minimum of 60-month
operation with the negotiated hourly operating rate, in orderto ensure LSF receives a return
on its investment.
7 . lnsurance and Performance Bond - Currently, the cost of these two items are included in the
current hourly operating rate of $69.49 for the North Beach Trolley. The Administration
recommends that the proposed Amendment include language providing for the City to pay
LSF for these costs as a pass-through/direct reimbursable (actual cost to be provided
separately by LSF). This modification is intended to result in a lower hourly operating rate
based on current actual costs paid by LSF for insurance and performance bond.
FISCAL IMPACT
Cost - lf approved by the City Commission, this Amendment will result in the implementation of two
(2) newtrolley routes (the Middle Beach Loop and Collins Link) in addition to the continuation of the
existing North Beach Loop. A breakdown of the annual operating costs for each vehicle option has
been included in the table below. For comparison purposes, it should be noted that the annual
operatino cost (1.) of the existinq North Beach Loop is approximately $1.630.000.
Should the City Commission wish to consider the use of high-floor trolley vehicles for
the service, the followin costs would be a
Annual Gosts Applicable to Amendment No. 3
(Based on final hourly rates proposed by LSF)
Low-Floor
(No-Lift)
Annual Costs Applicable to Amendment No. 3
(Based on final hourly rates proposed by LSF)
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October 21,2015
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Funding Source - Funding for the above costs will be provided from the Transportation Fund and
People's Transportation Plan (PTP) Fund as included in the FY2O15I16 budget.
The City's Trolley budget for Fiscal Year 2015/'16 has been calculated based on an anticipated
turnkey hourly rate of $76.00 and has been recommended by the Finance and Citywide Projects
Committee (FCWPC) and accepted by the Mayor and City Commission. lt is important to note that
the final hourly rate proposed by LSF for service with Low-Floor vehicles is $2.39 per hour higher
than budgeted. However, a maximum hourly rate of $79.91 (15% increase over the current hourly
operating rate of $69.49) has been approved by the City Commission for the implementation of
citywide trolley services with new Low-Floor vehicles. Should the City Commission wish to move
fonryard with the Low-Floor option presented in this memo (final hourly rate proposed by LSF of
$78.39), the Administration would use funding currently allocated to the proposed South Beach
Trolley which will not start operations at the beginning of the fiscal year as originally budgeted. The
City is currently in discussions with the County on the proposed route for the South Beach Trolley
which is anticipated to be implemented later in the fiscal year.
RECOMMENDATION
Pursuant to the City Commission motion on April 15,2015 directing the Administration to use low-
floor trolley vehicles for the existing and future trolley routes in the City, the attached Resolution
approves and authorizes the Mayor and City Clerk to execute Amendment No. 3 to the Agreement
between the City and LSF forthe addition of the Middle Beach Trolley routes and service plan using
low-floor trolley vehicles at a cost of $7,880,000 annually.
However, given the $1 ,180,000 annual cost differential between the use of low-floor vehicles and
high-floor vehicles, the Administration suggests that the Commission consider the use of the
modified/'kneeling' high-floor trolley vehicles. Further, as an alternative, should the City Commission
believe that low-floor trolley vehicles for the service are critical, the Commission may elect to
consider issuing a bid for the Middle Beach Loop and Collins Link given that LSF does not have
experience with the operation of low-floor trolley vehicles and staff cannot provide supportive
analysis for the hourly rate proposed by LSF for operation of low-floor trolley vehicles. Please note
that issuing a bid for the Middle Beach routes will delay implementation of the Middle Beach Loop
and Collins Link by approximately 3 - 4 months and, further, there is a possibility that LSF may be
the only bidder and/or that the resulting hourly rates may be higher than those proposed by LSF at
this time.
Attachments:
A. Route map and service plan for Middle Beach Loop and Collins Link
B4[mages of vehicle options proposed by LSF
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T:\AGENDA\201S\October 14\Amendment No3 to Tumkey Trolley Operations and Maintenance Services Agreement MEMO.doc
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Attachment A
COLLINS LINK:
Frequency - 10-15 Minutes
Number of Vehicles - 5
Direction - Counterclockwise
Lenght - 6 Miles
MIDDLE EEACH LOOP:
Frequency - 10-15 Minutes
Number of Vehicles - 6
Direction - Counterclockwise
Lenght - 8 Miles
Proposed Middle Beach Loop (Phase
Proposed Collins Link (Phase ll)
Potential Connection to Publix
Parking Garage
Parking Lot
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i*MIDDLE BEACH TROLLEY
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Attachment B
Lo\M-Floor (No-Lift)
lnterior
Exterior
308
Attachmernt B
High-FIoor (l n-Step Lift)
Exterior
!nterior
309
Attachment B
High-FIoor (Rear-End Lift)
Exterior
lnterior
310
Attachment B
Ramp
Hydraulic Lift
311
RESOLUTION NO.
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 5/7TH VOTE, THE COMPETITIVE
BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY, AND APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 3 TO THE
AGREEMENT, DATED MAY 8, 2014, BETWEEN THE CITY AND LIMOUSINES
OF SOUTH FLORIDA, INC., FOR TURN-KEY OPERATIONS AND
MAINTENANCE SERVICES OF A MUNICIPAL TROLLEY SYSTEM FOR THE
CITY OF MIAMI BEACH; SAID AMENDMENT INCREASING THE SCOPE OF
THE AGREEMENT TO INCLUDE THE FOLLOWING: (1) THE ADDITION OF
THE OPERATION AND MAINTENANCE SERVICES FOR TWO NEW ROUTES
tN MTDDLE BEACH (THE MTDDLE BEACH LOOP AND THE COLLTNS L!NK);
l2l THE ADDTTTON OF FTFTEEN (15) NEW LOW-FLOOR TROLLEY
VEHIGLES FOR THE OPERATION OF THE NORTH BEAGH AND MIDDLE
BEACH ROUTES; (3) A NEGOTIATED NEW HOURLY RATE
COMMENSURATE WITH THE COST OF SAID NEW TROLLEY VEHICLES
AND THE ADDITIONAL SERVICES FOR THE NEW MIDDLE BEAGH
ROUTES; (4) THE EARLY EXERCISE OF THE Two (2) RENEWAL oPTloNS,
EXTENDING THE AGREEMENT TERM THROUGH MAY 7, 2021; (5) lN
ADDITION TO THE TERM PROVIDED IN SUBSECTTON (4) OF THIS
RESOLUTION, FURTHER EXTENDING THE TERM, AS TO EACH ROUTE, TO
INGLUDE A FULL SIXTY (60) MONTH TERM, COMMENCTNG AS OF THE
ROLL.OUT DATE OF ALL THE NEW TROLLEY VEHICLES FOR EACH
RESPECTIVE ROUTE; (6) AUTHORIZING THE CITY MANAGER TO
APPROVE THE PURCHASE OF ADDITIONAL OPTIONAL EQUIPMENT FOR
THE TROLLEY VEHICLES IN THE CITY FLEET, AS MAY BE NEEDED !N THE
ADMINISTRATION'S DISCRETION, SUBJECT TO FUNDING AVAILABILIW;
AND (7) ANY ADDTTTONAL MODIFICAT|ONS DEEMED NECESSARY BY THE
ADM!NISTRATION WITH RESPECT TO THE ADDITIONAL SCOPE
CONTEMPLATED BY THE AMENDMENT; SAID AMENDMENT INCREASING
THE COST OF THE AGREEMENT, IN AN AMOUNT NOT TO EXCEED
$7,880,000 ANNUALLY.
WHEREAS, on April 30,2014, the City Commission approved the award of lnvitation to
Bid (lTB) No.2014-154-SR for Turnkey Trolley Operations and Maintenance Services to
Limousines of South Florida, lnc. (LSF), and following the approval of the lTB, an Agreement
between the City and LSF was executed on May 8, 2014; and
WHEREAS, this ITB allowed for the operation of the existing North Beach Trolley
service and included provisions for the addition of routes at the City's sole discretion and
subsequent re-negotiation of hourly rates if change in service increased or decreased by more
than 20%; and
WHEREAS, on October 22, 2014, the City Commission made a motion directing the
Administration to proceed with planning and developing a Middle Beach Trolley route and
service plan as part of a citywide interconnected trolley system; and
WHEREAS, on April 15,2015, the City Commission directed the Administration to use
Low-Floor vehicles for the provision of present and future trolley services and also referred the
Middle Beach Trolley route and service plan to the Neighborhood Community Affairs Committee
(NCAC) for a recommendation; and
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WHEREAS, on May 29,2015, the Administration presented the proposed Middle Beach
Loop and Collins Link routes to the NCAC, which Committee recommended the approval of said
routes and service plans, and directed the Administration to secure the approval of the City
Commission; and
WHEREAS, on June 10,2015, the City Commission passed a resolution accepting the
recommendation of the NCAC regarding the proposed Middle Beach Trolley Routes and service
plans and which authorized the Mayor and City Clerk to execute Interlocal Agreements with
Miami-Dade County for the operation of two municipal circulator routes: the Middle Beach Loop
and the Collins Link; and
WHEREAS, the proposed trolley routes and lnterlocal agreements were subsequently
approved by Miami-Dade Transit (MDT), the County's Transit Services and Mobility Committee
(TSMC) on August 26, 2015, and the Board of County Commissioners (BCC) on September 1,
2015 after concluding that the City's proposed trolley routes would not have an adverse impact
on the existing MDT bus service; and
WHEREAS, the lnterlocal Agreements for the Middle Beach Loop and the Collins Link
are currently fully executed and in effect;
WHEREAS, an Amendment to the existing Agreement between the City and LSF is
required based on the addition of the Middle Beach Loop and Collins Link which represent an
increase in service of more than 300%, from roughly 23,000 to 94,000 operating hours per year;
and
WHEREAS, LSF has proposed the following hourly rates in connection with the following
three (3) vehicle options for the operation of the North Beach (4 vehicles), the Middle Beach
Loop (6 vehicles), and the Collins Link (5 vehicles) routes:
Low Floor (No-Lift):includes the purchase of fifteen (15) new trolley
vehicles (no-lift), at the rate of $78.39 per operating
hour;
Existing High-Floor/ln-Step Lift: includes the purchase of fifteen (15) new trolley
vehicles, at $65.81 per operating hour; and
Modified/Kneeling/H ig h-Floor/Rear
End Lift: includes the purchase of fourteen (14) new trolley
vehicles and use of one (1) existing North Beach
trolley vehicle, at the rate of $65.81 per operating
hour; and
WHEREAS, funding in the amount of $7,880,000 is budgeted in FY 2015i 16 to cover the
anticipated costs of the operation of the North Beach Loop, Collins Link and Middle Beach Loop;
and
WHEREAS, pursuant to the City Commission motion on April 15, 2015 directing the
Administration to use low-floor trolley vehicles for existing and future routes in the City, the
Administration recommends executing Amendment No. 3, utilizing the Low-Floor trolley
vehicles, which amendment will contain the following essential modifications to the existing
Agreement, subject to final negotiations.
1. Performance Penalties - Given that performance penalties are currently based on the
number of vehicles and operating hours, the daily fee cap will be adjusted proportionally
to the grovrrth in fleet and hours of operation.
2. New Vehicles - Purchase by LSF of fifteen (15) new low-floor trolley vehicles required
for the operation of the three (3) routes. Additionally, this provision will require that the
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five (5) existing high-floor trolley vehicles currently operating in North Beach will serve as
spare vehicles for the expanded trolley service.
3. Vehicle Ownership - A provision clarifying that LSF shall own the new trolley vehicles at
the end of the term or early termination of the Agreement, as the negotiated hourly rate
already includes a credit of $50,000 per vehicle, for the residual value of the
Modified/Kneeling/High-Floor trolley vehicles.
4. Optional Equipment - Currently, the Agreement includes a provision for the purchase
and installation of "optional equipment" at the City's sole discretion at a notto-exceed
cost of $200,000. This Amendment will include a provision giving authority to the City
Manager to increase the cap as needed in order to secure the purchase and installation
of optional equipment for new vehicles and service including, but not limited to, the GPS
trackers, modems automatic passenger counters, monitors, and automated voice
information systems. The increase will be subject to budget availability.
5. Hourly Rate - The current hourly operating rate of $69.49 is based on LSF providing
23,360 hours per year of turnkey trolley service for the North Beach Loop using four (4)
High-Floor/ln-Step trolley vehicles (plus one spare trolley vehicle). The Amendment will
include the final hourly rate proposed by LSF of $78.39 for low-floor trolleys. Additionally,
a provision addressing the commencement date of the new hourly operating rate will be
included in the Amendment.
6. Term - Given that LSF's hourly rate is based on a 60-month term and that the delivery of
trolley vehicles may take as much as nine (9) months, the contract term would need to
be extended past the current initial term and available renewal terms. The 60-month
term for each respective route would begin when the entire fleet for a particular route is
ready to roll out, therefore each route would have a separate term.
7. lnsurance and Performance Bond - Currently, these two items are built-into the existing
hourly operating rate. The amendment will provide that, at the option of the City, the City
may opt to pay the insurance and performance bond components of the hourly operating
rate as a pass-through, as an option to possibly reducing the hourly rate during the term;
and
WHEREAS, the City Manager recommends that the City Commission waive, by a 5t7th
vote, the competitive bidding requirement, finding said waiver to be in the best interest of the
City, in that, by guaranteeing that LSF may amortize its investment over the minimum 60-month
term, the City will be guaranteed the lower negotiated hourly operating rate.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
accept the recommendation of the City Manager and waive, by 5t7th vote, the competitive
bidding requirement, finding such waiver to be in the best interest of the City, and approve and
authorize the Mayor and City Clerk to execute Amendment No. 3 to the Agreement, dated May
8,2014, between the City and Limousines of South Florida, lnc., for Turn-Key Operations and
Maintenance Services of a Municipal Trolley System for the City of Miami Beach; said
Amendment increasing the scope of the Agreement to include the following: (1) the addition of
the operation and maintenance services for two new routes in Middle Beach (the Middle Beach
Loop and the Collins Link); (2) the addition of fifteen (15) new low-floor trolley vehicles for the
operation of the North Beach and Middle Beach routes; (3) a negotiated new hourly rate
commensurate with the cost of said new trolley vehicles and the additional services for the new
Middle Beach routes; (4) the early exercise of the two (2) renewal options, extending the
Agreement term through May 7, 2021; (5) in addition to the term provided in subsection (4) of
this Resolution, further extending the term, as to each route, to include a full sixty (60) month
term, commencing as of the roll-out date of all the new trolley vehicles for each respective route;
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(6) authorizing the City Manager to approve the purchase of additional optional equipment for
the trolley vehicles in the City fleet, as may be needed in the administration's discretion, subject
to funding availability; and (7) any additional modifications deemed necessary by the
Administration with respect to the additional scope contemplated by the Amendment; said
Amendment increasing the cost of the Agreement, in an amount not to exceed $7,880,000
annually.
PASSED and ADOPTED this day of October, 2015.
ATTEST:
PHILIP LEVINE, MAYOR
RAFAEL E. GRANADO, GITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOI{ExECuy'grlt( t 1li,L,LJ l N,///2,,1
-
City Attorney / Pbte
Agenda/October 1 4, 20 1 S/Transportation/Amendment
Services Agreement RESO for low-floor trolley vehicles
.z_____-,
No. 3 to Turnkey Trolley Operations and Maintenance
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