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Item 4F (2)City of Southlake, Texas MEMORANDUM January 10, 2007 To: From: Shana Yelverton, City Manager 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 perfonned 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 7777.5 7M777777 (DATE) MECHANICS FLEET SERVICES, INC 1931 CR 129 Pearland, Texas 77581 Attn: Jerry T. Smith, Owner Subject: RFB0609BI06TS600240, ON -SITE PREVENTATIVE MAINTENANCE SERVICES FOR CITY OF SOUTHLAKE VEHICLES AND LIGHT TRUCKS Dear Mr. Smith The City of Southlake is pleased to inform you that on , 2007 the City Council approved the award to Mechanics Fleet Services, Inc. of Pearland, Texas for the purchase of "On -Site Preventative Maintenance Services for City of Southlake Vehicles and Light Trucks" This award and letter of agreement are based on your bid to the City (Bid #RFB0609BI06TS600240), copy enclosed.. The terms and conditions proposed and accepted in this purchase order are as follows: Payment Terns: Net 30 days (Unless otherwise noted — such as pre - and/or partial payinent) Method of Payment: Shall be made either by purchasing card or by purchase order. Delivery Terms: FOB Destination Tenn of Contract: It is agreed that City will have the option to extend the contract for up to four (4) additional years, in one -year intervals. Delivery Address: City of Southlake, 1440 Main Street, Southlake, Texas 76092 City Contact: Timothy Slifka, 817.748.8312 Send all billing to: City of Southlake 1400 Main Street, Suite 440, Accounts Payable Southlake, TX 76092 Certifications: Bidder certifies they will be subject to and comply with all applicable federal, state, and local laws, ordinances, rules and regulations. Other Charges: The City of Southlake is a tax exempt municipal corporation and is exempt from all federal, state, and local sales taxes. All other specifications, terms and conditions shall be as provided in the original procurement documents. No other attachments to or in response to this order will be accepted unless approved in writing by the Purchasing Agent or an authorized representative of the City of Southlake. Thank you for participating in our procurement process. Please call 817.748.8940 with any questions. Sincerely, Deb Russell Purchasing Agent, City of Southlake 1400 Main Street, Suite 440 Southlake, Texas 76092 drussell@ci.southlake.tx.us Phone 1 Fax: 817.748.8940 1 817.748.8048 Cc: Timothy Slifka, Fleet Coordinator File (2 copies) CITY OF SOUTHLAKE DEPARTMENT: FINANCE 106 TS BID TABULATION FORM QUOTE DUE: _ 11.3.06 RFQ: RF'B0609BI06TS600240 Form Prepared By: DEB RUSSELL MECHANICS FLEET SERVICES Date Prepared; 11.3.06 INC C�uoter #: Contact Name JERRY T. SMITH Contact Number: 800.688.33.98 Physical Address 1931 CR 129, PEARLANE, TX 77581 ITEM Description: Line Items 1. - 13 TOTAL, LINE ITEMS 1- 11 Year 1 of Contract $ 69,740.36 YR 2 OF CONTRACT - 15T OPTION YR @ 4 %: $ 72 ,529.97 YR 3 OF CONTRACT - 2ND OPTION YR @ 4 %: $ 75,431.17 YR 4 OF CONTRACT � 3RD OPTION YR @ 4 %: $ 78,44B.42 YR 5 OF CONTRACT - 4TH OPTION YR @ 4 %: $ 81,566.36 TOTAL ALL YEARS FOR SERVICES: $ 377,736.28 Hourly tabor rate for general fleet repairs not covered in $ 54.00 Line Item 14.. contract. Per Hour Parts pricing percentage ( %) markup over cost of parts for Line Item 15: general fleet repairs. Line Item 15a: less than $50 cost 100% Lute Ite 1 More than $50 cost 30% Request award to for the following reason(&): Low Bid Delivery Time Emeagency repair PURCHASING AGENT APPROVAL. DATE- Other