SUBJECT/RECOMMENDATION:
Title
Authorize the purchase of vehicles (heavy and light duty) and equipment in the not-to-exceed amount of $17,575,900.00, pursuant to Clearwater Code of Ordinances Sections 2.563(1)(c), Piggyback, 2.563(1)(d), Non-competitive purchases, and 2.561(5), Small Purchases; declare the vehicles and equipment being replaced as surplus and authorize for disposal at auction or trade-in, whichever is in the best interest of the City, pursuant to Clearwater Code of Ordinances Sections 2.623(6), (7)(c), (7)(e), and (8); authorize lease purchase under the City's Master Lease Purchase Agreement or internal financing via an interfund loan from the Capital Improvement Fund, whichever is deemed to be in the City's best interest, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The Fleet Division is requesting a consolidated expenditure authorization in the not-to-exceed amount of $17,575,900.00 for the acquisition of vehicles and equipment per attached spreadsheet. New purchases are to replace designated units due for replacement in FY25, which have reached the end of their useful and economic life. Factors used to determine the end of useful and economic life include, but are not limited to age, life to date, mileage/hours of operations, historical maintenance cost as compared to like vehicles, operating cost per mile/hour, anticipated and ongoing repairs, and physical condition.
Due to delays in manufacturing, the Fleet Department is requesting to begin the procurement process for the vehicles and equipment on the FY25 vehicle purchase/replacement list ahead of the FY25 budget that starts October 1, 2024. In addition to prolonged delays in receiving vehicles and/or equipment, the order banks for the vehicles are fluid and open and close without notice. Ordering now will enable Fleet to get orders submitted in advance of other municipalities who may be ordering later. Finally, the authorization to purchase helps insulate the City against price increases (will purchase on current quotes) as there have been substantial increases year after year.
Authorization is requested to piggyback off the following contracts, pursuant to Clearwater Code 2.563(1)(c):
• Florida Sheriffs Association (FSA), a purchasing cooperative in the State of Florida
o Contract #FSA23-VEL31.0, Pursuit, Administrative and Other Vehicles - valid through September 30, 2024.
o Contract #FSA23-VEH21.0, Heavy Trucks - valid through September 30, 2024.
o Contract #FSA23-EQU21.0, Heavy Equipment - valid through September 30, 2024.
§ There are anticipated renewals on all contracts.
• Omnia Partners (Omnia), the largest cooperative purchasing organization for public sector procurement.
o Contract #EV2671-01 Utility, Transportation, and Golf Vehicles valid through December 31, 2026.
• Sourcewell (formerly NJPA), a purchasing cooperative operating under legislative authority in the State of Minnesota.
o Contract #060920-NAF, Class 4-8 Chassis with Related Equipment - valid through August 1, 2024.
o Contract #091521-NAF, Cars, Trucks, Vans, SUVs, Cab Chassis & Other Vehicles - valid through November 8, 2025
• State of Florida, Department of Management Services, cooperatively bids requirements of agencies throughout Florida.
o Contract #25100000-23-STC, Motor Vehicles valid through May 16, 2025.
o Contract # 25101600-21-STC, Medium and Heavy Trucks - valid through September 30, 2026.
o Contract # 25101900-21-STC, Agriculture and Lawn Equipment - valid through December 31, 2026.
Authorization to add additional piggyback contracts is requested as needed to ensure the City is receiving the most competitive pricing for vehicles and equipment which will be monitored by the Procurement Division.
Authorization to procure optional features not included on the piggyback contract, as impractical, due to delay in receipt of vehicle and/or equipment, possible void of warranty for after-market items, manufacturer delay in receiving parts, etc., pursuant to Clearwater Code of Ordinances Section 2.563(1)(d). Typically, when procuring optional features through the dealership, these features are priced below Manufacturer Suggested Retail Price (MSRP). This will be monitored for compliance by the Procurement Division.
While most of the vehicles and equipment are procured through piggyback contracts, for those that do not fall under this category, authorization is requested to procure these vehicles and equipment through competitive quotes pursuant to Section 2.561(5) Small Purchases, purchases under $50,000.00. This will be monitored for compliance by the Procurement Division.
Once the new vehicle is road ready (graphics, accessories or upfitting, etc.) and equipment has been upfitted, appropriate vehicles and equipment designated for surplus authorization will be transferred to Tampa Machinery Auction. Tampa Machinery Auction was competitively solicited by Pinellas County under Contract No. 190-0534-R(JJ) valid through November 17, 2027.
For vehicles with long lead times and limited availability, staff is requesting to amend the fiscal year 2023/24 capital project budget increasing amounts that would have been included in fiscal year 2024/25 for motorized equipment replacement (lease/purchase financing).
For the remaining vehicles and equipment, purchase orders will not be issued until after the fiscal year 2024/25 budget is approved and next year funding is available.
APPROPRIATION CODE AND AMOUNT:
A third quarter budget amendment will provide the following increases to capital projects:
• An increase of $10,419,500 in lease/purchase funding to L1910, Motorized Equipment Replacement - L/P
• An increase of $1,100,000 in lease/purchase funding to L2301, Motorized Equipment Purchases - L/P
FUND IMPACTED
010 General Fund 2,352,500 L/P
421 Public Utilities 1,372,000 L/P
423 Gas 359,000 L/P
424 Solid Waste 7,339,000 L/P
426 Recycling 716,000 L/P
432 Marina 200,000 L/P
555 Cust Svc/IT 68,000 L/P
565 Gen Service 513,000 L/P
Total 12,919,500
Penny Funds (94238) 336,000 Cash/CIP
Garage Fund (94233) 162,900 Cash/CIP
General Fund-Parks Operating 85,500 Cash/Operating
W&S Fund-Public Utilities Operating 31,000 Cash/Operating
Stormwater Fund- Strm CIP (C1908) 2,243,000 Cash/CIP
Public Works (L2301) 471,000 L/P
Public Utilities (L2301) 200,000 L/P
Parks (L2301) 369,000 L/P
Solid Waste Fund (L2301) 758,000 L/P
4,656,400
Grand Total 17,575,900
Total 24-25 VRL Budget 17,575,900
Total 23-24 VRL Budget 10,095,700
Budget Change 24/25 vs 23/24 7,480,220
Budget Increase/Decrease 74%
STRATEGIC PRIORITY:
These purchases help accomplish strategic objective 1.2. Fleet division operators maintain public infrastructure to deliver effective and efficient services by optimizing City assets and resources.
