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ADOPT RESOLUTION TO PURCHASE A FLEET MANAGEMENT SYSTEM AND A GPS TELEMATICS SYSTEM
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of a Cooperative Purchasing Agreement through Sourcewell Contract No. 022217-CVS to provide the City access to preferential pricing of professional services for implementation, software licenses, and hosting from Chevin Fleet Solutions.
3. Approve the use of a Leveraged Procurement Agreement through the State of California, Department of Goods and Services, Contract No. 1-19-58-69 to provide the City access to preferential pricing of vehicle and equipment hardware, staff training, and hosting from GeoTab.
4. Authorize the City Manager to execute a three-year agreement from December 2021 to December 2024, in the amount not to exceed $308,000, with Chevin Fleet Solutions of Fitchburg, MA, for the purchase and implementation of a dedicated fleet management system.
5. Authorize the City Manager to execute a three-year agreement from December 2021 to December 2024, in the amount not to exceed $422,022.50, with GeoTab of Las Vegas, NV, for the purchase and integration of Global Positioning System telematics and electronic data collection for City vehicles and equipment.
6. Appropriate funds in the amount of $146,440 from the Fleet Internal Service Fund (0000-000-110000-500-000) to the Fleet Internal Service Fund Fiscal Year 2021-22 equipment acquisition account (4530-718-800004-500-000).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Public Works Department recommends the purchase and implementation of a dedicated fleet management system with Global Positioning System (GPS) telematics. Fleet management systems are an industry standard that provide an electronic platform to manage a fleet efficiently to enhance vehicle and equipment performance, safety, and compliance. Systems provide a range of capabilities including maintenance monitoring, vehicle diagnostics, idle time, fuel efficiency, inventory, and physical location of fleet. The implementation of a dedicated fleet management system with GPS telematics will improve the City’s business processes to provide consistent, reliable, and accurate financial and vehicle records.
To implement the proposed system, using existing cooperative/leveraged agreements available from Sourcewell and the State of California will simplify and streamline the procurement process. Staff recommends approval of both a Cooperative Purchasing Agreement with Chevin Fleet Solutions for the purchase and implementation of a dedicated fleet management system, and a Leveraged Purchasing Agreement (LPA) with GeoTab for integration of GPS telematics and electronic data collection for City vehicles and equipment.
It is recommended that Council adopt a resolution authorizing the City Manager to execute two agreements, for a total of $730,022.50 for the purchase and integration of a fleet management system with GPS telematics.
DISCUSSION
Background
The City’s fleet of over 1,000 vehicles and equipment is currently tracked and managed manually between multiple systems with minimal integration: CityWorks, an asset management work order system; Tyler-Munis, the City’s current financial system; HTE, the City’s historical financial system; E.J. Ward Fuel Management System; and various Excel spreadsheets. The manual entry required to track information necessitates redundant data entry across all platforms to provide accurate information and data. Pulling reliable data points for analysis is labor intensive and often challenging. No system is intuitive, requiring all preventative maintenance, permits, and inspections to be scheduled manually in multiple platforms for proper notification, tracking, and to meet State and local regulatory compliance.
In 2013, Management Partners, an external audit company, conducted an audit of the Fleet section. Their first recommendation was to implement a dedicated fleet management system that would provide a work-order system specific to streamlining fleet operations and to allow for preventive maintenance program tracking and fiscal transparency.
A dedicated fleet management system is an industry standard and is vital to running an efficient preventive maintenance program that can fully integrate with third-party fueling, GPS, vehicle inspections, and parts and inventory support systems.
In July 2020, a Selection Committee was formed between the Information Technology and Public Works Departments to evaluate options for fleet management systems. The Committee created a selection criterion and narrowed potential vendors to the following: Chevin Fleet Solutions; CityWorks; Tyler-Munis; and RTA. While Tyler-Munis and CityWorks both offered fleet management systems, they were not user friendly, lacked comprehensive features, or had high implementation costs through third-party support systems. The Tyler-Munis implementation quote was overpriced at approximately $2.6 million, with an annual cost of over $300,000. CityWorks lacked comprehensive features and was not user-friendly. RTA offered a solid product, but had limitations with user customization and customer support. Chevin Fleet Solutions has the most comprehensive system, supplies superior customer service, secure hosting abilities, reporting ease, and is reasonable in cost.
Present Situation
The Public Works Department recommends the purchase and implementation of a dedicated fleet management system with GPS telematics through existing cooperative/leveraged agreements available from Sourcewell and the State of California. The implementation includes initially installing hardware for 550 vehicles and 150 auxiliary devices, plus staff training. The project is scoped to include future system expansion among the City’s fleet.
Sourcewell is a public agency based in Minnesota that issues Cooperative Purchasing Agreements to simplify the procurement process for public agencies and takes advantage of volume purchasing. Use of a Cooperative Purchasing Agreement streamlines administrative costs and procedures while maintaining the integrity of the competitive bidding process.
Another procurement approach that is separate from Sourcewell, is the use of LPA contracts. LPAs streamline the procurement process and take advantage of volume purchasing. LPAs have been competitively bid, reviewed, evaluated, and recommended to the State of California for consideration of award. The use of these contracts is available to California State and local government agencies.
The recommended resolution authorizes the City Manager to execute two agreements, one Cooperative Purchasing Agreement through Sourcewell and one LPA through the State of California, Department of Goods and Services, for a total of $730,022.50 for the following:
• $308,000 with Chevin Fleet Solutions of Fitchburg, MA, for the purchase and implementation of a dedicated fleet management system (Attachment A).
• $422,022.50 with GeoTab of Las Vegas, NV, for the purchase and integration of GPS telematics and electronic data collection for City vehicles and equipment (Attachment B).
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. Sourcewell established a Cooperative Purchasing Agreement with Chevin Fleet Solutions for the purchase of a dedicated fleet management system.
2. The State of California, Department of Goods and Services, established an LPA with GeoTab for the purchase and integration of GPS telematics and electronic data collection for City vehicles and equipment.
3. The Chevin Fleet Solutions and GeoTab procurement agreements were established pursuant to formal competitive bidding processes conducted by Sourcewell and the State of California, Department of Goods and Services, on behalf of its governmental members, of which the City is one.
4. Taking advantage of the procurement agreements negotiated by Sourcewell and the State of California, Department of Goods and Services, will save the administrative expense of City staff conducting separate procurements.
5. The specifications for the software available through the procurement agreements meet the City’s requirements.
FINANCIAL SUMMARY
Funding was allocated in Fiscal Year (FY) 2018-19 to purchase a dedicated fleet management system; however, the acquisition was put on hold until phase-one of the City’s ERP system was implemented and funding was returned to the Fleet Internal Service Fund (ISF) balance at fiscal year-end. To complete this purchase, staff recommends appropriating $146,440 from the Fleet Internal Service Fund Balance to the Fleet ISF FY 2021-22 equipment acquisition account. With the appropriation of funds, there will be sufficient funding available in the FY 2021-22 Fleet Internal Service Fund Equipment Acquisition Fund Account (4530-718-800004-500-000) for the initial purchase cost of a dedicated fleet management system from Chevin Fleet Solutions and a GPS Telematics System from GeoTab. A full breakdown of contract costs with accounts is detailed in Attachment C.
Due to the allocation of ISF costs across City funds based on inventory, the annual ongoing impact to General Fund is estimated to be $165,000 starting in FY 2022-23 and is not currently included as an expense in the City’s Long-Range Financial Plan. These costs are partially offset as the City will avoid additional expenses for required upgrades and system maintenance to antiquated systems currently in place.
Implementation Cost Breakdown:
December 2021 - June 2022
Equipment $ 29,723
Annual Implementation $100,050
Contingency (6-month allocation) $ 16,667
Total FY 2021-22 Cost: $146,440
Impact to General Fund $103,489
Attachment A - Chevin Fleet Solutions (Fleet Management System)
Attachment B - GeoTab (GPS Telematics System)
Attachment C - Financial Summary Breakdown