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Commission Memorandum Bid No. 23-03104 AprIl 14,2004 Page 2 ANALYSIS Currently the City Is leasing 4 Mid Size Sedans, 4 Fun Size cars, 2 Mini Passenger Vans, 5 Pick-up Trucks, and 8 Utility Vehicles, however the City's Police Department reserves the right to change and choose the type of vehicle most suited for their line of work. By revising the specifications and comparing the new bids to the previous/rejected bids received, the City will realize an estimated savings of $128,000 ($32,000 annually for four years). The estimated annual contract amount of $193,466 represents an annual increase of $14,000, or approximately a 7% Increase to the current contract, which was awarded under a firm-fixed price since 1999. The vehicles will be late models with low mileage, neat and clean in appearance, and in good operating condition, complete with air conditioning, automatic transmission, radio, power brakes and power steering. There will be no mileage charges, or rental charges of any nature except for refueling charges allowed on any rental. The selection of vehicles is classified Into groups with various monthly bid prices. From these groups, the City may choose the vehicle most suited for their line of work. The contract will be In effect upon execution of the contract for two (2) years. Providing the successful bidders will agree to maintain the same price, tenns and conditions of the current contract, this contract could be extended for an additional two (2) years. on a year to year basis, If mutually agreed upon by both parties. INSURANCE The City of Miami Beach shall assume responsibility for the auto liability and physical damage through Its self Insurance program up to the limits provided for in Florida State Statutes 768.28. Any claims for physical damage to rental vehicles must be submitted In writing to the City of Miami Beach Risk Manager within thirty (30) calendar days from the return date ofthe vehlcle(s). The City of Miami Beach shall not be responsible for any claims submitted after the required thirty (30) calendar days. Additionally. the City of Miami Beach will not be held liable for nonnal wear and tear of the vehlcles(s) rented under this bid. A replacement vehicle shall be provided within the shortest time possible, not to exceed one (1) hour upon notification. When a replacement vehicle Is not available within one hour. an upgrade vehicle will be supplied at no additional charge to the City. Vendor shall provide a required maintenance schedule for each vehicle within 24 hours upon delivery. The vehicle shall be completely serviced and ready for operation. 19