Title
Request for Approval to purchase one (1) Allianz 3000 Street Sweeper from Florida Municipal Equipment, Inc. (FME) located in Lakeland, Florida. (B)
Explanation
For the past twelve (12) years, the City of Gainesville has purchased street sweepers from Florida Municipal Equipment, Inc. (FME). Our initial bid was based on a total cost contract which guaranteed a maximum repair and maintenance cost for the life of the equipment and a guaranteed buyback price at the end of the contract. This concept has provided the City with a cost-savings of approximately $60,000 per year in repair and maintenance cost for (4) street sweepers. It has also reduced downtime drastically while allowing the City to realize additional cost and operational benefits of a standardized fleet of street sweepers. Non-contractual added value from this supplier include the following at no additional cost to the City: 1) the provision of a loaner street sweeper which is domiciled at our facility and used whenever one of our units is down for repair or maintenance and, 2) an inventory of repair and maintenance parts at our facility for which we are billed for only when used. This arrangement allows for little or no downtime to the operating department. These added value benefits will be included in the new contract. The operating department has tested other competitor's equipment and unanimously supports the procurement of the street sweeper that is being recommended. Staff has been quite satisfied with the product and its supplier and would like to continue this partnership. Based on all of the above, staff is recommending that the sweeper is purchased from this specified source. The cost of the new street sweeper is $162,433 and the guaranteed buyback price for the sweeper that is being replaced is $22,000. The net cost of the new street sweeper is $140,433.
Fiscal Impact
Funding for the replacement is budgeted in the Fleet Replacement fund for FY 2009.
Recommendation
The City Commission approve the purchase of a street sweeper from Florida Municipal Equipment, Inc. for the net price of $140,433 and authorize the City Manager or his designee to execute the contract pending approval as to form and legality from the City Attorney's office.