A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 8 TO THE AGREEMENT DATED MAY 8, 2014, BETWEEN THE CITY AND LIMOUSINES OF SOUTH FLORIDA (LSF), INC, FOR TURN-KEY OPERATIONS AND MAINTENANCE SERVICES OF A MUNICIPAL TROLLEY SYSTEM FOR THE CITY OF MIAMI BEACH; SAID AMENDMENT ADDING, AT NO ADDITIONAL COST TO THE CITY, ONE (1) USED 2006 HIGH-FLOOR TROLLEY VEHICLE TO THE CITY'S FLEET, TO BE USED SOLELY AS A SPARE; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL AMENDMENT.

The Administration recommends that the Mayor and City Commission adopt the resolution approving amendment no. 8 to the trolley agreement to add a used 2006 high-floor trolley vehicle to the City’s fleet, at no cost to the City, to be used solely as a spare vehicle to improve trolley service reliability.

On April 30, 2014, the City Commission approved the award of Invitation to Bid (ITB) No. 2014-154-SR for Turnkey Trolley Operations and Maintenance Services to LSF. Following the approval of the ITB, an agreement between the City and LSF was executed on May 8, 2014. This agreement allowed for the operation of the existing North Beach trolley service and included provisions for additional routes at the City’s sole discretion.

On July 30, 2014, the City Commission adopted Resolution No. 2014-28708, authorizing the City to execute Amendment No. 1 to the agreement, which increased the scope of the agreement to include optional equipment, as well as additional automated stop announcement equipment, with capability of displaying public advertisements. Amendment No. 1 was executed on October 6, 2014. 

On March 18, 2015, the Mayor and the City Commission adopted Resolution No. 2015-28967, approving, and authorizing Amendment No. 2 to the agreement, incorporating an enhanced scope of services to the agreement in order to accommodate additional transportation expenses needed for the City’s Centennial celebration, increasing the cost of the agreement for said enhanced scope of services during the 2014-2015 fiscal year, solely. Amendment No. 2 was executed on March 24, 2015. 

On October 21, 2015, the Mayor and City Commission adopted Resolution No. 2015-29194, waiving, by 5/7^th vote, the competitive bidding requirement, exercising provisions of the contract allowing for additional routes at the City’s sole discretion, and approving Amendment No. 3 to the agreement; said amendment providing for the following: 1) the addition of the operation and maintenance services for two (2) new routes in Middle Beach (the Middle Beach Loop and the Collins Link); 2) the addition of fourteen (14) new modified/kneeling high-floor/rear end wheel chair lift trolley vehicles for the operation of the North Beach and Middle Beach routes, in an amount not to exceed $6,700,000 annually; 3) a negotiated new hourly rate commensurate with the cost of said trolley vehicles and the additional services for the new Middle Beach routes; 4) the early exercise of the two (2) renewal options, extending the agreement to May 7, 2021; 5) in addition to the term provided in the previous subsection (4), further extending the term, as to each route, to include a full sixty (60) month term, commencing as of the roll-out date of all the modified high-floor trolley vehicles for each respective route; and 6) authorizing the City Manager to approve the purchase of additional optional equipment for the new modified/high floor trolley vehicles. Amendment No. 3 was executed on January 14, 2016.

On July 20, 2016, the Mayor and City Commission adopted Resolution No. 2016-29519, accepting the recommendation of the City Manager and waiving, by 5/7^th vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City, exercising provisions of the contract allowing for additional routes at the City’s sole discretion, and approving Amendment No. 4 to the agreement in substantial form, increasing the scope of the agreement to include the following: 1) the addition of one (1) bi-directional route in South Beach for a term of sixty (60) months, commencing as of the roll-out date for the low-floor trolley vehicles; 2) the addition of twelve (12) new low-floor trolley vehicles for use in all City trolley routes; 3) a negotiated new hourly rate for the low-floor trolley vehicles and additional associated services; and 4) increasing the annual cost of the agreement, from a not to exceed cost of $6,700,000 to a not to exceed cost of $12,000,000; authorizing the City Manager to approve the purchase of additional optional equipment for the low-floor trolley vehicles, as may be needed in the Administration’s discretion, subject to funding availability; authorizing the City Manager to terminate the existing Interlocal Agreement (for the South Beach Local), in connection with the negotiation of a new Interlocal Agreement with Miami-Dade County for the South Beach Trolley route; and further authorizing the Mayor and City Clerk to execute the final negotiated Interlocal Agreement and Amendment No. 4.  Amendment No. 4 was executed on March 29, 2017.

On May 17, 2017, the Mayor and City Commission adopted Resolution No. 2017-29873, approving and authorizing the City Manager and City Clerk to execute Amendment No. 5 to the agreement; approving the replacement of Collins Link route alignment with Collins Express route, at no additional cost to the City, to provide more direct intracity connectivity between Washington Avenue/Lincoln Road and 88 Street.  Amendment No. 5 was executed on October 26, 2017.

On October 18, 2017, the Mayor and City Commission adopted Ordinance No. 2017-4143, amending certain provisions of the City Living Wage Ordinance as codified in Sections 2-407 through 2-410 of the City Code. The primary purpose of the amendment to the Ordinance was to adjust and increase the hourly living wage rate and health benefit paid by service contractors covered under the Ordinance to their covered employees, with the proposed increased for the calendar year 2018 to be “phased-in” over a three (3) year period commencing on January 1, 2018. In order to assure that covered service contractors doing business with the City, including LSF, continue to comply with the provisions of the Ordinance as amended, Amendment No. 6 to the agreement with LSF was executed on December 4, 2018.

On January 16, 2019, the Mayor and City Commission adopted Resolution No. 2019-30687, approving and authorizing the City Manager and City Clerk to execute Amendment No. 7 to the agreement; including the following modifications: (1) adding one (1) used high-floor trolley vehicle to the city’s trolley fleet to be used as a spare only, including the installation of optional equipment, in the approximate lump sum cost to the city of $3,500, with operating/maintenance costs, in the approximate annual amount of $3,600, which costs will remain within the current not to exceed contract amount of $12,000,000; (2) permitting the operation of all trolley vehicle types (high-floor, modified high-floor  or low-floor) along any of the City's trolley routes, as needed, to ensure proper service coverage; and (3) modifying other miscellaneous provisions of the agreement to address the current operating conditions of the trolley services, which include (i) updating the trolley routes, (ii) reducing the on-time performance goal from 95% to 85% for all trolley routes, (iii) clarifying the methodology for determining fuel charge adjustments and for calculating on-time performance, and (iv) including a release of any alleged claims (against the City) by LSF for fuel charge reimbursements and a release for any alleged claims (against LSF) by the City for on-time performance penalties, both through the effective date of the amendment.  Amendment No. 7 was executed on March 15, 2019.

The City’s current trolley fleet consists of 32 trolley vehicles (6 high-floor trolley vehicles, 14 modified/high-floor kneeling, and 12 low-floor trolley vehicles). Twenty-five vehicles are used in operation and seven vehicles are used as spare vehicles. Based on statements made by LSF’s staff, some of the vehicle repairs are taking longer than expected due to lack of availability of parts or the need to have vehicles under warranty repaired at an authorized dealer rather than at LSF's maintenance facility. LSF proffered the addition of one 2006 used high-floor trolley vehicle, that would be acquired by LSF, to the City’s fleet, enabling for an additional spare vehicle to help improve overall service reliability. LSF also committed covering the capital cost for the purchase and installation of optional equipment on this vehicle including, but not limited to, GPS trackers, modems, automatic passenger counters, monitors, video system, and automated voice information systems, as well as the recurring monthly operation/maintenance costs of the optional equipment.

Based on information received from LSF, despite its age, the 2006 vehicle has only been used as a circulator around a parking lot of a public attraction, thus has very low mileage (approximately 50,000 miles), far less than most of the trolleys currently in use in Miami Beach.  Per LSF, all maintenance reports indicate the 2006 trolley vehicle is in excellent mechanical condition.

The addition, at no cost to the City, of a used 2006 high-floor trolley vehicle with low mileage and in good mechanical condition to be used as a spare vehicle would improve the reliability of the City’s trolley service.