Title
Outsourcing of Vehicle Paint and Body Repairs to the CEI Group (B)
Explanation
For the past several years, the City has opted to solicit bids weekly for paint and body repairs to City vehicles. The City typically spends approximately $70,000 annually with five (5) different local vendors who provide these services. Current procedures were developed over the last several years after meetings between staff and local vendors. However, despite multiple revisions, the process remains unacceptable from a Fleet performance perspective. Because of this, Fleet Management staff investigated alternative solutions and now recommends the utilization of an auto accident management company. These companies handle the entire process when notified of the need for a repair including analysis of the damage, determination of how the vehicle should be repaired, selection of a pre-approved shop to do the repair work, review of any requested supplements, inspection of the completed job, and payment to the shop.
Some of the major drawbacks of the current process and potential improvements by utilizing an accident management company include:
1) Reduction in Downtime - Due to legal and procedural barriers, the downtime on a vehicle from the time it is made available for inspection to the time it is picked up for repairs by the paint and body vendor is a minimum of thirteen (13) calendar days. The unavailability of vehicles is a tremendous disadvantage to operating departments and adversely affects the delivery of the services that they provide. This proposal reduces the current downtime from thirteen (13) calendar days to a normal downtime of one (1) business day. However, if the accident occurs on Friday afternoon and the following Monday is a City observed holiday, then a maximum of three (3) calendar days would be realized.
2) Reduction in Staff Time - Staff currently spends an average of nine (9) hours per week on the process for each vehicle requiring paint and body repair work (assuming no protests, no requests for supplements, etc.). Under the proposed contract, staff time would be reduced to an average of one (1) hour per week per vehicle.
3) Internal Lack of Expertise in Paint and Body Work - This is a highly specialized skill and it is not cost effective to hire a full time City employee who is an expert in the field. Under the proposed contract, the City would be represented by the experts. Additionally, advantages include potential reduction in repair costs, expert opinions on totaled versus repair decisions and on enhancement in the quality of repairs.
4) Improved Handling of Large Vehicle Repairs - Currently, repairs to buses and other heavy vehicles are done in Sanford, FL (Pride, Inc.) because no local vendor provides these services. The downtime is much greater than thirteen (13) days. The proposed vendor has an authorized repair shop in Ocala which will result in less downtime on large city vehicles. The same additional advantages stated in item 1.) also apply regarding expediting of repairs.
5) Reduced Potential Liability to the City - Because Paint and Body Shop Vendors must meet certain prerequisites to become authorized by the proposed company, the City will have additional assurance that all applicable Federal, State and Local regulations are met.
6) Additional Services Provided - Added value in utilizing the proposed vendor includes operators training through the vendor provided Drivers' Training Program, Appraisal and Collection Services and additional assurance "piggybacking" opportunities on the State of Washington contract.
A letter was sent to local paint and body vendors on July 19, 2004 stating Fleet Management's intention to recommend the utilization of an accident management company. The vendors were also provided information on how to become an authorized repair shop to be utilized by the proposed company.
Fiscal Note
Funds for paint and body repairs are available in the Fleet Fund for FY 2004 and are also proposed in the budgets for FY 2005 and 2006.
Recommendation
The City Commission authorize the City Manager or designee to execute a contract for auto accident management services with the CEI Group by piggybacking on the competitive bid process of the State of Washington for a period of one (1) year.