Item Coversheet

OLD BUSINESS  1.

COMMITTEE MEMORANDUM

TO: Finance and Citywide Projects Committee Members


FROM:
Jimmy L. Morales, City Manager


DATE: June 28, 2019


SUBJECT:DISCUSSION REGARDING A WATERLESS CAR WASH RFP AT GARAGES - UPDATE

HISTORY:

On October 18, 2017, the Mayor and Commission approved a referral to the Finance and Citywide Projects Committee (FCWPC), to discuss Waterless Car Wash RFP at municipal garages. The FCWPC discussed the item at their November 8, 2017, meeting and recommended that the Administration pursue the offering of waterless car wash services at the municipal parking garages, beginning with a pilot phase before full deployment. These services would be deployed as a concession agreement with the selected provider.

On December 13, 2017, City Commission adopted Resolution No.2017-30099, accepting the recommendations made by FCWPC. The parameters for moving forward included:

  1. Awarding any resulting Concession agreement in two phases. The first phase shall be a pilot program at one or more selected garage(s) for a period not to exceed six months. The second phase may include, but is not a guarantee, a longer term with an expanded number of garages from which to offer the services.

  2. A requirement that water usage shall be minimal and any water used must be collected and discarded according to law.

  1. All chemicals utilized shall be non-harmful to the environment and properly disposed to the requirements of the Environmental Protection Agency and Florida Department of Environmental Protection; and

Additionally, on December 13, 2017, the Mayor and City Commission authorized the Administration to issue an RFP for Waterless Car Wash Concession, and to release the final draft of the RFP to the Mayor and City Commission via LTC (Letter to Commission).

On July 25, 2018 the City Commission adopted Resolution No. 2018-30400 accepting the recommendation of the City Manager to enter into negotiations with GT Eco Carwash, LLC pursuant to RFP No. 2018-157-WG for Waterless Car wash Concession.

The Agreement for the Pilot Program was executed on December 7, 2018 with an expiration date of June 5, 2019. On June 5, 2019 the City Commission approved an extension of the pilot program until September 5, 2019.

A highlight of the terms included in the Phase I - Pilot Concession Agreement are:

  • Revenue payment: Concessionaire shall remit to the City 8% of the monthly gross receipts generated by the program.

  • Utility Charges: The City provides electrical power connections to the Concession area during the Term. Concessionaire pays the City an amount equal to $0.15 per vehicle services, for utility charges during the Pilot Program.


ANALYSIS:
Services started at the 17th Street Garage (G5), located at 640-17th Street, in February 2019 and once a week at the City Hall Garage, located at 1755 Meridian Avenue in March 2019. As of the end of May 2019, 377 vehicles have been serviced and the City has collected $1,034.94 (8%) revenue share.


CONCLUSION:

The Administration deems Phase I of the Waterless Car Wash Pilot to be successful; therefore, the Administration’s recommendation is to proceed with Phase II of RFP 2018-157-WG for Waterless Carwash Services, extending Waterless Car Wash services to other municipal garages and extending the term of the concession agreement.