AGENDA REPORT. LANr LORI Q. City Commission
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1 4 F Y LANr AGENDA REPORT LORI Q DATE January TO City Commission FROM David R Sollenberger City Manager SUBJECT Amendment Two to the Fleet Management and Vehicle Maintenance Agreement with First Vehicle Services Inc RECOMMENDATION That the City Commission Adopt a resolution approving Amendment Two to the Fleet Management Maintenance Agreement with First Vehicle Services Inc FVS and Vehicle EXECUTIVE SUMMARY The FVS requested an amendment to agreement to extend the term of contract and to adjust the operating target cost in accordance with the agreement The FVS also agreed to amend the agreement as requested by staff The amendments are 1 Extend the term of contract one year to January Amend the scope of work and total target cost to cover costs for maintenance and repairs of heavy equipment vehicles and small equipment regardless of life cycle including costs up to incurred for repairs demonstrated abuse vandalism accident damage and acts of force majeure necessitated as a result of 3 Adjust the total operating target cost from to Amend Section wherein the time of delivery of each unit is changed from 730am to900am 5 Set the effective date ofthe amendment on February MEETING OF January AGENDA ITEM NO 3 e
2 BACKGROUND On February the City Commission a approved contract with FVS with a total operating target cost at for the two years initial term of the contract which ends on January The current contract is based on life cycle of each unit Based on the current contract any cost incurred for repairs necessitated as a result of demonstrated abuse vandalism vandalism and accident damage and costs for maintenance and repairs ofaunit over its life cycle are considered non contract work not covered by the total operating target cost therefore are extra costto the City Section306 ofthe contract allows the City to renew expand and extend the contract by mutual agreement for renewal periods offive one yeaz terms each Subsection 513 states The operating tazget cost shall be adjusted to correspond to increases or decreases in the fleet size or the type of equipment if such total changes aze at least five percent5 These adjustments shall be made semi annually and shall not be limited by the Cost Price Index CPI Adjustment ofthe operating tazget for the ensuing yeaz with the exception of labor shall not exceed the Cost Price Index CPI for all urban consumers in the Transportation Category for the State offlorida for the prior year In 2008 the City s fleet has an average age of eight years As of December 2008 the City s fleet consisted of 922 units compazed to 908 in 2007 The applicable determined at59 In 2008 there were 406 units that were out of life cycle expected that an additional 110 units a 119increase will be over its life cycle CPI was It is in 2009 On February the City Commission approved Amendment One increasing the total tazget operating cost to Prior to expiration of the contract the FVS requested to extend the term of contract one yeaz to January and an adjustment ofthe total operating tazget costto Option 1 due to significant increase in costs for parts and employee insurance health caze and benefits The operating tazget cost adjustment is a 514increase from the previous yeaz but is lower than the59cpi The FVS and staff agreed to change the delivery time of a unit from 730am to900 am The start of business hour for City departments is at800am so the change will allow staff sufficient time to prepare and transport the unit to the gazage facility The FVS and staff also negotiated Option 2 an alternative amendment to contract with the total operating target cost at This total operating tazget cost covers costs ofmaintenance and repairs ofall units regazdless oflife cycle including costs up to for repairs necessitated as a result of demonstrated abuse vandalism accident damage and force majeure Under this alternative non contract costs will be eliminated except for costs in excess of for repairs due to repairs necessitated as a result of demonstrated abuse vandalism accident damage and force majeure The costs based on life cycle and the alternative non life cycle options aze compazed below
3 Comparison of Estimated Costs 2008 Actual Costs 2009 Estimated Cost 2009 Estimated Cost Option 1 Option 2 No of Units in City fleet No of Units out of life cycle 406 Total Operating Target Cost Non Contract Cost Included Total Operating Target Cost Option 2 based onnon life cycle with the total operating target cost at be more cost effective than the Option 1 which is based on life cycle ofthe units 17 will FISCAL IMPACT Funds are budgeted in the current budget Respectfully Submitted DAVID R SOLLE BERGER City Manager Prepared by M ark Emery c Services Fleet Coordinator Pat Austin General Services Superintendent Yubhc Worksll rector Kevin Orth ActingPchasing Agent Kenneth W Buchman City A Funding available Martin JWi sgerhof
4 RESOLUTION NO A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PLANT CITY FLORIDA APPROVING AN AMENDMENT TWO 2 TO THE AGREEMENT WITH FIRST VEHICLE SERVICES INC AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY FLORIDA BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF PLANT CITY Section 1 The form ofamendment two 2 to the agreement between the City ofplant City and First Vehicle Services Inc a copy being attached is hereby approved and authorized Section 2 The City Manager is hereby authorized and directed to execute said agreement on behalf ofthe City Adopted by the City Commission on January ATTEST Rick A Lott Mayor Commissioner Virginia L Helper City Clerk Approved as to form and correctness Kenneth W Buchman City Attorney
5 AMENDMENT TWO TO THE FLEET MANAGEMENT AND VEHICLE MAINTENANCE AGREEMENT BETWEEN CITY OF PLANT CITY FLORIDA AND FIRST VEHICLE SERVICES INC WHEREAS the City of Plant City Florida City and First Vehicle Services Inc FVS entered into afleet Maintenance and Vehicle Maintenance Agreement on February and WHEREAS since the execution of the contract there has been an increase in the City s fleet and WHEREAS there are currently 922 vehicles heavy equipment and small equipment December and as of WHEREAS the City and FVS now desire to amend the agreement as of January and NOW THEREFORE in consideration of the mutual benefits rights and obligations derived from the agreement the City and FVS hereby agree to amend and reaffirm as follows 1 The agreement is amended to extend the term ofthe contract one year to January Section 5 Costing Methodology subsection 501 is amended as follows 501 Operating Target and Maximum PriceThe Operating Target which shall be the Contractor s operating budget for each year of this Contract shall include the following cost items a b c d Personnel costs Parts supplies outside services Overhead expenses Corporate administrative expense and management fees Costs up to incurred for Unit repairs necessitated as a result of demonstrated abuse vandalism and accident damage during Contract the life of the f Costs of capital repairs and maintenance designed beyond the agreed life cycle for the Unit to extend the life of a Unit Costs incurred by Contractor to repair replace or maintain any Units or equipment not included in Attachment A 3 Section 5 Costing Methodology subsection 501 last paragraph is amended as follows stoma legti pme is 143ne eti get itattasl3 er te as sh The
6 Operating Target for the term under this amendment for all heavy equipment vehicles and for small equipment is The maximum annual cost to the City shall be the Operating Target adjusted in accordance with the provisions ofsection507 All pricing is exclusive of salestax 4 Section 5Costing Methodology subsection507 is amended as follows 507 Additional Reimbursable Items The following items shall be directly reimbursable by the City to the Contractor outside ofthe Operating Tazget a Costs in excess of X incurred for Unit repairs necessitated as a result of demonstrated abuse vandalism a accident damage and force majeured b Costs for fuel l 1 F T T Pl ug eecctckvthc anr agfee li esoreas ltesi go occ T T o ed Attachment uivaaa Costs incurred by Contractor for any agreed capital expenditures that aze not included in the Operating Tazget 3 Costs incurred by Contractor as a result in changes of the law regarding Unit g maintenance repair replacement or retrofitting during the life ofthe Contract Costs incurred by Contractor to replace Shop Equipment pursuant to Section orto acquire additional Shop Equipment not included in Attachment B 5 Section 11 Scope of Work subsection is amended as follows General The Contractor shall provide scheduled preventive maintenance remedial repairs overhaul mobile service towing tine service and replacement motor pool operations fleet management parts inventory acquisition and maintenance snow removal and such other allied services as may be required to assure the continuity of effective and economical operation of Units as described in Attachment A The Contractor shall furnish all necessary supervision labor tools parts and supplies required to maintain the fleet in astate of repair and service consistent with Good Fleet Management Practice The Contractor shall provide and maintain a permanent detailed automated record system for each vehicle and vehicle category in order to provide a basis for optimum fleet management The scope of work shall apply to all Units regardless of life cycle 2
7 6 Section 11 follows Scope ofwork subsection last paragraph first sentence is amended as The City shall be obligated to transport each Unit with the appropriate paperwork to the garage area ofthe facility by ter900am the day ofservice 7 Except as amended by this document the Agreement as previously amended force and effect and legally binding upon the City and FVS remains in full 8 This amendment is effective February IN WITNESS WHEREOF the City and FVS hereto have affixed their respective signatures date indicated below as ofthe ATTEST CITY OF PLANT CITY a Florida Municipal Corporation By Virginia L Helper City Clerk By David R Sollenberger City Manager Approved as to form and correctness Kenneth W Buchman City Attorney Date FIRST VEHICLE SERVICES Inc ATTEST By Dale R Domish Senior Vice President Date 3
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