2007-26714 ResoRESOLUTION NO. 2007-26714
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING PURSUANT TO
SECTION 2-367(D) OF THE MIAMI BEACH CITY CODE, THE SOLE
SOURCE PURCHASE OF A MAINTENANCE AND SERVICE
AGREEMENT, WHICH IS A UNIQUE PROPRIETY SERVICE FOR THE
PARKEON MODEL DG CLASSIC MASTER METER, FROM BYTEWISE
SOLUTIONS, INC., THE REGIONAL SERVICE PROVIDER FOR
PARKEON, IN THE ESTIMATED AMOUNT OF $210,000.
WHEREAS, on May 21, 2003, the City approved the issuance of a Request for
Proposals for 250 Multi-Space Parking Pay Stations; and
WHEREAS, on January 14, 2004, the Mayor and City Commission authorized the
Administration to proceed with the purchase of Parkeon Model DG Classic Master Meters
from Bytewise, the local authorized distributor for Parkeon (formerly known as
SchlumbergerSema); and
WHEREAS, the Parking Department was able to secure atwo-year parts and
maintenance warranty from Bytewise on all of the 250 multi-space pay stations purchased;
and
WHEREAS, the 250 multi-space pay stations are coming off of their two-year parts
and maintenance warranty and the City is exploring a mechanism by which it can maintain
and service the pay stations at current and improved service levels without interruptions or
downtime; and
WHEREAS, after contacting the manufacturer of the DG Classic Master Meters,
Parkeon informed the City that Bytewise is the sole authorized distributor of Parkeon
products, services, and support in the State of Florida; and
WHEREAS, the Administration has complied with the documenting requirements for
sole source purchases, pursuant to Section 2-367 (d) of the Miami Beach City Code; and
WHEREAS, funding for a Maintenance and Service Agreement for the Parkeon
Model DG Classic Master Meter was appropriated on September 26, 2007 via Resolution
2007-26650 and is available from Parking Operations Fund 480.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve the sole source purchase, pursuant to Section 2-367(d) of the
Miami Beach City Code, in the estimated amount of $210,000, from Bytewise Solutions,
Inc., the sole source provider of a Maintenance and Service Agreement for the Parkeon
Model Dg Classic Master Meter.
PASSED and ADOPTED this 12thday of December , 2007.
ATTEST:
~~ ~~~L..
Robert Parcher, City Clerk M tti H. Bower, Mayor
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COMMISSION ITEM SUMMARY
A Resolution approving, pursuant to section 2-367(d) of the Miami Beach City Code, the sole source purchase
of a Maintenance and Service Agreement, which is a unique proprietary service for the Parkeon Model Dg
Classic Pay Station, from Bytewise Solutions, Inc., the regional service provider for Parkeon, in the estimated
amount of $210,000.
Condensed Title:
Key Intended Outcome Supported:
Increase parking availability; enhance mobility throughout the City; improve processes through information
technology; and, increase community satisfaction with City services.
Supporting Data (Surveys, Environmental Scan, etc.): Available parking is ranked No.5 by residents as
one of the changes that will make Miami Beach a better place to live, work, play or visit; 77% of residents rated
availability of parking across Miami Beach as too little or much too little.
Item Summa /Recommendation:
In a continued effort to improve parking services for residents and visitors of the City, the Parking Department
has recommended implementation of a Maintenance and Service Agreement with Bytewise Solutions Inc.
(Bytewise) for the service of 250 out-of-warranty Parkeon Model Dg Classic Pay Stations. On May 21, 2003
the City's Procurement Department issued an RFP (Request for Proposals) for 250 multi-space parking pay
stations. On January 14, 2004, the City Commission authorized Administration to proceed with the purchase of
Parkeon Model Dg Classic Pay Stations from Bytewise, the local authorized distributor for Parkeon (formerly
known as SchlumbergerSema).
As part of the procurement process, the Parking Department was able to secure atwo-year parts and
maintenance warranty from Bytewise on all of the 250 multi-space pay stations. As the pay stations are
coming off of warranty, the City is exploring a mechanism in which we can maintain and service our pay
stations at current and improved service levels without interruptions or downtime due to the regular usage,
wear and tear. It should be noted that the pay stations endure heavy outdoor usage, day and night; and are
subject to elements of weather with rain, heat, humidity, wind, and often sand causing parts to break or
malfunction. After contacting the manufacturer of the Dg Classic Pay Stations, Parkeon informed the City that
Bytewise is the sole authorized distributor of Parkeon products, services, and support in the State of Florida.
Pursuant to Section 2-367(d) of the Miami Beach City Code, Parkeon has provided this information in writing
(enclosed as Attachment A).
The Parking Department conducted an analysis to determine which alternative (Bytewise Maintenance/Service
Agreement vs. Procured Inventory) was more cost effective for maintaining/servicing our 250 Pay Stations and
the Bytewise Maintenance/Service Agreement provides an annual cost savings of $32,825.
Issue:
Should the City Commission adopt the Resolution?
Adviso Board Recommendation:
N/A
Financial Information:
Source of
Funds:
Financial Impact Sum
$105,000 Parking Fund On-Street
Maintenance Account
105,000 Parking Fund Off-Street
Maintenance Account
$210,000
Contract
cif clerk's office Le islative Trackin
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Saul Frances, Parking Director
Sign-Offs: Department
Director Assistant City Manager City Manager
_
SF RCM
~~ ~ ~~~ ~ AGENDA ITEM C7~
DATE /02 ~a ~~
m MIAMIBEACH
CiTy of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 12, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING PURSUANT TO SECTION 2-367(d) OF
THE MIAMI BEACH CITY CODE, THE SOLE SOURCE PURCHASE OF A
MAINTENANCE AND SERVICE AGREEMENT, WHICH IS A UNIQUE
PROPRIETARY SERVICE FOR THE PARKEON MODEL DG CLASSIC PAY
STATION, FROM BYTEWISE SOLUTIONS, INC., THE REGIONAL SERVICE
PROVIDER FOR PARKEON, IN THE ESTIMATED AMOUNT OF $210,000.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING
$105,000 Funding is available from account # 480-0462-000325 (On-Street Parking
Contract Maintenance).
$105,000 Funding is available from account # 480-0463-000325 (Off-Street Parking
Contract Maintenance).
KEY INTENDED OUTCOMES SUPPORTED
Improve parking availability; enhance mobility throughout the City; improve processes
through information technology; and, increase community satisfaction with City services.
ANALYSIS
In a continued effort to improve parking services for residents and visitors of the City, the
Parking Department has recommended implementation of a Maintenance and Service
Agreement with Bytewise Solutions Inc. (Bytewise) for the service of 250 out-of-warranty
Parkeon Model Dg Classic Pay Stations.
On May 21, 2003 the City's Procurement Department issued an RFP (Request for
Proposals) for 250 multi-space parking pay stations. On January 14, 2004, the City
Commission authorized Administration to proceed with the purchase of Parkeon Model Dg
Classic Pay Stations from Bytewise, the local authorized distributor for Parkeon (formerly
known as SchlumbergerSema).
As part of the procurement process, the Parking Department was able to secure atwo-year
parts and maintenance warranty from Bytewise on all of the 250 multi-space pay stations;
however, the warranty period has expired and all 250 pay stations are currently out of
warranty. The Parking Department has explored various options for maintenance/service as
this is essential in order to maintain appropriate operating service levels without interruptions
or downtime due to the regular usage, wear and tear; and malfunctions. It should be noted
that the pay stations endure heavy outdoor usage, day and night; and are subject to
elements of weather with rain, heat, humidity, wind, and often sand causing parts to break or
malfunction.
To address the multi-pay station maintenance, the Parking Department conducted an
analysis comparing outsourcing and procured inventory options. The outsourcing option
(recommended option) would require a maintenance and service agreement with Bytewise
Solutions, Inc, who is Parkeon's (pay station manufacturer) locally authorized representative
to sell, service, and distribute their equipment. This option provides a GMP (guaranteed
maximum price) for all parts. In other words, all parts are repaired or replaced by the service
provider regardless of the number of malfunctions.
Alternatively, the procured inventory option would require an expense of a parts inventory
that would require the City to carry varying levels of each part for all 250 pay stations.
Typically, inventory levels should be at 10% or 25 of each part. This is not a cost effective
method. Moreover, the warranty of said inventory parts is 180 days. Malfunctions beyond
that threshold would require repair or replacement of those parts at list prices. Please note
that both options analyzed include $69,000 for service calls for troubleshooting and/or
malfunctions that require a certified technician.
The following is the Bytewise (outsourced) Maintenance/Service Agreement vs. Procured
Inventory analysis that the Parking Department conducted to determine the most cost
effective method of maintaining and servicing its 250 Pay Stations:
Bytewise Maintenance/Service Agreement:
a. 250 Pay Stations at an estimated monthly cost $47 per unit equates to
annual cost of $141,000. This option includes a rotating inventory of at least
25 parts (10% of 250 units) of each of the most common malfunctioning
parts. All replacement parts are warranted with repair and/or replacement
included in the monthly fee.
Annual Cost: $141,000
b. Service calls billed at an hourly rate.
Annual Cost: $ 69,000
Grand Total Cost: $210,000
II. Procured Inventory of Parts:
a. An inventory of 25 of each of the most common malfunctioning parts would
need to be procured. The following is a listing of said parts and and their
replacement costs. Please note that under this model each part has a
limited warranty of 180 days and upon expiration of the warranty, should said
replacement part fail, it would require the purchase of additional replacement
part, at list price:
Part: Cost Inventory (25 of each)
Printer: $ 718 $17,950
Bill Acceptor: $1,150 $28,750
Card Reader: $1,450 $36,250
Main Board: $1,190 $29,750
Modem: $1,260 $31,500
Coin Selector: $ 680 $17,000
Solar Charger P/S: $ 210 $ 5,250
Interfaces: $ 165 $ 4,125
Relay Boards: $ 130 $ 3,250
Annual Parts Cost: $173,825
b. Service calls billed at an hourly rate.
Annual Cost:
Grand Total Cost:
$69,000
$242,825
After contacting the manufacturer of the Dg Classic Pay Stations, Parkeon informed the City
that Bytewise is the sole authorized distributor of Parkeon products, services, and support in
the State of Florida. Pursuant to Section 2-367(d) of the Miami Beach City Code, Parkeon
has provided this information in writing (enclosed as Attachment A).
PROPOSED MAINTENANCE AND SERVICE AGREEMENT
In the proposed maintenance and service plan, the Administration is recommending that
Bytewise provide the City with a fully stocked parts cabinet at the City's Parking Meter
Division Headquarters. The City's Meter Division would provide regular services forthe pay
stations and Bytewise would provide an on-call technician for repairs that could not be made
in-house by the City. This technician would be available at a 25% discount off Bytewise's
regular service rates.
The parts cabinet should be stocked at a minimum with 10% of the most commonly
malfunctioning parts and would be replenished weekly to maintain minimum stock levels.
Under the plan Bytewise is responsible for all repairs of the parts covered under plan and if
for any reason a part cannot be fixed, the part will be replaced. Some of the most commonly
replaced parts include:
• Printers
• Batteries
• Accumulators
• Door Handles
• Pins
• Collection Doors
• Fans
• Bill Acceptors
• Micro Switches
• Main Boards
• Wire Harnesses
• Solenoids
• Escrow Units
• Cash Box Sensors
• Credit Card Acceptors
• Charger Boxes
• Access Boards
• Connectors
• Solar Panels
• Coin Detection Sensors
• Fuses & Agitators
The Parking Department is also recommending that the proposed plan include:
• Preventive Maintenance service be performed on each pay station every 16 weeks;
• Liquidated damages for inventory levels below set standards;
Terms valid for a period of two years with two one-year options available at the City's
request after the initial two year period;
Loaner pay stations be made available should the Pay Station be deemed as
temporarily inoperable;
Inventory tracking system be in place for parts.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the attached
resolution authorizing approving, pursuant to Section 2-367 (d) of the Miami Beach City
Code, the sole source purchase of a Maintenance and Service Agreement, which is a
unique proprietary service for the Parkeon model Dg Classic Pay Station, from Bytewise
Solutions, Inc., the regional service provider for Parkeon, in the estimated amount of
$210,000.
T:\AGENDA\2007\dec1207\Consent\Pay Station Maint & Serv Memo.doc
The City has budgeted and appropriated $210,000 in Fiscal Year 2007/08 for the proposed
plan. This figure includes the following estimates:
ATTACHMENT
A
-P PARKEOfI
August zs, zoos
Mr. Saul Frances
Director - Parking Department
City of Miami Beach
1130 Washington Avenue:, Suite 100
Miami Beach, `Florida 33139
Dear Mr. Frances,
This letter serves as confirmation ghat Bytewise Solutions, inc_. is the sole distributor
of Parkeon producf and services in the State of Florida.. As .such, Bytewise Solutions is
authorized to perform installation, maintenance and support for Pariteon product.
Should you require further information, please da not hesitate to contact me.
Sincerely,
Cc: Sunil Jotwani, Bytewise Solutions
AARKEON • 40 Twosome Drive, Unit 7 • Moorestown, N1 48057 ~ USA
T 1-856-234-800Q • F 1-856-234717$ * Bwvvvv.parkeon.com • irrfo~paricean.com
Michael i{avur
President, Narth America