C2G - Award Motorcycle Lease Contract

Procurement Requests - C2 G

COMMISSION MEMORANDUM

RECOMMENDATION

It is recommended that the Mayor and City Commission approve the award of a three (3) year term contract pursuant to Bid (ITB) 2025-141-MP, for Leasing of Motorcycles to TMCAA, Inc. d/b/a Alligator Alley Harley-Davidson, as the lowest responsive and responsible bidder. Further authorizing the month-to-month extension of the existing agreement with TMCAA, Inc. d/b/a Alligator Alley Harley-Davidson until the agreement has been replaced and the leasing of motorcycles has been transitioned under the new agreement, for a period not exceed six (6) months.

This solicitation is currently under the cone of silence.

BACKGROUND/HISTORY

Since 1998, the City of Miami Beach ("City") Police Department has operated a lease-only program for its motorcycle fleet. The department currently leases 19 Harley-Davidson Electra Glide Police Motorcycles (FLHTP) under a three (3) year agreement with TMCAA Inc., doing business as Alligator Alley Harley-Davidson (“Alligator Alley Harley-Davidson”), pursuant to Invitation to Bid (ITB) 2021-195-DF. This agreement is set to expire on May 26, 2025. The current agreement included an option to extend the agreement for an additional three (3) year term, provided the contractor will maintain the same prices, terms, and conditions. In the event that the City exercised its option to renew beyond the initial three (3) year agreement, the contractor was required to replace the existing fleet with the latest models. However, on October 16, 2024, the Administration contacted Alligator Alley Harley-Davidson requesting an additional three (3) year renewal extension, and Alligator Alley Harley-Davidson advised the City that it could not offer a replacement fleet while maintaining the same prices, terms, and conditions.

As a result, this ITB was issued to establish a replacement agreement for the lease of motorcycles. In addition, since Alligator Alley Harley-Davidson did not agree to the additional three (3) year renewal extension, it is necessary to extend the agreement on a month-to-month basis upon the same terms and conditions of the contract and at the same compensation and payment as provided in the agreement to allow for the transition of the motorcycle fleet.

ANALYSIS

On February 3, 2025, the ITB was issued. The Procurement Department issued bid notices to approximately 121 companies utilizing the City’s e-procurement system, with 11 prospective bidders accessing the solicitation. A voluntary pre-bid conference was held to provide information to bidders submitting a response on February 19, 2025. The notices resulted in the receipt of two (2) responses from Peterson’s Harley-Davidson and TMCAA Inc d/b/a Alligator Alley Harley- Davidson (“Alligator Alley Harley-Davidson”). A tabulation of bids received is included in Attachment A.

The ITB cost proposal form included three (3) groups: Group 1 – Motorcycle Leasing (2, 3, or 4 years); Group 2 – Hourly Labor Rates and Parts Discount; and Group 3 – Equipment Transfer Fees. Upon review, staff determined that awarding group 2 is not necessary at this time.

The solicitation stated that the lowest responsive, responsible bidder, meeting all terms, conditions, and specifications, would be recommended for award. The Procurement and Police Departments have determined that Alligator Alley Harley-Davidson is the lowest responsive and responsible bidder. In addition, the Police Department has determined that the three (3) year lease option is the most beneficial to its operations which includes the standard new vehicle warranty provided by the manufacturer.

A brief description of the lowest responsive and responsible bidder is below.

ALLIGATOR ALLEY HARLEY-DAVIDSON Alligator Alley Harley-Davidson is a family-owned business, owned by Paul Veracka, who inherited it from his father in 2019. The company is an authorized Harley-Davidson dealer for motorcycle sales and services. Alligator Alley Harley-Davidson has supplied motorcycles to the City of Fort Lauderdale, the Broward Sheriff's Office, and the City of Homestead. Alligator Alley Harley-Davidson is also the incumbent for the City's current motorcycle contract, and to date, the City is satisfied with the services provided. Additionally, the City has received positive feedback from the City of Fort Lauderdale and the City of Homestead.

FISCAL IMPACT STATEMENT

As indicated in Attachment A, the two bidders, Peterson’s Harley-Davidson and Alligator Alley Harley-Davidson, both provided pricing for the two (2) and three (3) year lease options. Neither bidder provided a price for a four (4) year lease option.

Alligator Alley Harley Davidson (3-year lease) * $602.65/month

Peterson’s Harley Davidson (3-year lease) $605.00/month

Current cost (3-year lease) *lowest responsive, responsible bidder. $569.21 month

The current contract supports the lease of 19 motorcycles; however, the Police Department will be leasing only 18 under the new contract. Under the proposed new contract, the estimated annual cost per motorcycle, based on Alligator Alley Harley-Davidson’s pricing, would be approximately $7,231.80, compared to the current cost of $6,830.52. This represents an annual increase of approximately $401.28 per motorcycle or $7,223.04 for all 18 motorcycles.

Since the execution of the prior contract in 2021, the Consumer Price Index (CPI) has increased by approximately 16%. In contrast, the pricing submitted by Alligator Alley Harley-Davidson reflects only a 6% increase, representing a cost increase significantly below the rate of inflation. Despite the increase in cost, leasing these motorcycles remains crucial for the department's operations. These motorcycles are essential for performing essential tasks performed by the

Police Department which require mobility and efficiency. The value the motorcycles provide to the department far outweighs the cost, making it in the City’s best interest to continue leasing them.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

Purchases pursuant to the award of the ITB shall be subject to funds availability approved through the City’s budgeting process. Grant funding will not be utilized for this project. Budget 011-1120-000323-20-401-595-00-00- Code 00-

Amount

$130,000

CONCLUSION

Based on the foregoing, it is recommended that the Mayor and City Commission of the City of Miami Beach, Florida, approve the award of a three-year term contract pursuant to Bid (ITB) 2025- 141-MP, for Leasing of Motorcycles to TMCAA, Inc. d/b/a Alligator Alley Harley-Davidson, as the lowest responsive and responsible bidder. Further authorizing the month-to-month extension of the existing agreement with the TMCAA, Inc. d/b/a Alligator Alley Harley-Davidson until the agreement has been replaced and the leasing of motorcycles has been transitioned under the new agreement, for a period not to exceed six (6) months.

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying?

If so, specify the name of lobbyist(s) and principal(s):

Department

Procurement

Sponsor(s)

Co-sponsor(s)

Condensed Title

Award ITB 2025-141-MP, Leasing of Motorcycles. PD

Previous Action (For City Clerk Use Only)