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Item 4FCity of Southlake, Texas M E M O R A N D U M January 10, 2007 To: Shana Yelverton, City Manager From: Sharen Jackson, Director of Finance Timothy Slifka, Fleet Coordinator Subject: Award a one year contract for on-site Preventative Maintenance Services for Vehicles and Light Trucks to Mechanic’s Fleet Services, Inc. (RFB0610B106TS600240). Action Requested: Authorization to award a contract for on-site preventative maintenance services for City of Southlake vehicles and light trucks. Background Information: In October 2006, Southlake sent out 27 requests for bids for ‘Preventative Maintenance for Vehicles and Light Trucks.’ Received responses included four ‘No Intent to Submit’ bids and one valid bid from Mechanic’s Fleet Services, Inc. The purpose of this bid was to secure preventative maintenance services for vehicles and light trucks as required by respective manufacturers. Preventative maintenance both enhances the performance of our fleet and ensures its longevity. All services will be performed at multiple predetermined ‘on-site’ locations within Southlake and during after-hours or on weekends. This is an additional benefit as City employees’ labors hours that have been previously affected by transporting and waiting for vehicle maintenance will no longer be required. Additionally, Southlake has been paying a varying labor rate of $75.00 to $95.00 per hour for these services; however, the award of this service to Mechanic’s lowers the rate to $54.00 per hour, a significant hourly rate savings. Financial Considerations: Better use of employee’s productive time as they will no longer be shuttling fleet vehicles and waiting for off-site preventative maintenance services. Reduced labor hourly rate for services compound to historical cost. Citizen Input/ Board Review: None Legal Review: City Attorney has reviewed and approved this bid template. Alternatives: Deny the award and re-bid this service. Supporting Documents: Letter of Agreement Bid Tabulation Staff Recommendation: Authorize the award of these bid services to Mechanic’s Fleet Services. Staff Contact: Sharen Jackson, Director of Finance Deborah Russell, Purchasing Agent Timothy Slifka, Fleet Coordinator