Miscellaneous - �� - -
1
COD we
DEPARTMENT OF MANAGEMENT
SERVICES
'rhe Koger Center • 2737 Centerview Drive • Knight Building • Tallahassee, Florida 32399 -0950
LAWTON CHILES, GOVERNOR September 16, 1994 WILLIAM H. LINDNER, SECRETARY
DMS -94 -1
MEMORANDUM
TO: All State Agencies and Politic Subdivisions
FROM: William H. Lindner, Secretary`
SUBJECT: Rental Vehicle Contract
Based on a survey of the quality of service being provided state
agencies, the competitively bid contract for rental vehicles awarded to
Budget Rent A Car has been extended through September 30, 1995.
The purpose of this contract is to provide maximum economies in the
rental of automobiles for official state business. The contract also
conserves energy by requiring employees to use compact class vehicles when
practical. Therefore, all rentals of automobiles by state agencies are to
be made under the terms, prices, and conditions of this contract which are
outlined in the enclosure.
Agencies should review rental vehicle use to help ensure compliance
with the policy that class B, compact vehicles, be used except when the
number of passengers or the amount of materials make use of a compact class
of vehicle impractical. To assure that class B, compact vehicles are
reserved, they should be requested by vehicle class rather than by vehicle
make and model.
The legislative or judicial branch, any county, county board of public
instruction, municipal, or other local public agency or authority of the
State of Florida may, if they so elect, rent automobiles under the terms,
price, and conditions of this contract.
Any questions concerning this contract or problems experienced should
be directed to the Department of Management Services, Division of Motor
Pool, telephone (904)488 -4290 or Suncom 278 -4290.
WHL /EU /db
Enclosure
October 1, 1994 - September 30, 1995
RENTAL VEHICLE CONTRACT
1. Scope
State rental rates available uniformly at any on- airport or off - airport
rental location operated by the vendor, except in Alaska, Hawaii, New
York on weekends and holidays, other countries, and the out -of -state
cities listed on page 8 that have city surcharges added to the daily
rental rates.
2. Special Rates
Any special rate available to all customers at the time of rental, which
will result in a lower net rate than that offered herein, will be
provided at the time of rental.
3. Reimbursement for Fuel Purchased
Rental rates for all classes of vehicles rented in Florida include
gasoline. To obtain reimbursement for fuel purchased for rental
vehicles provided by the vendor, it will be necessary to retain and
turn -in receipts for fuel purchases to the vendor's rental counter at
the time the vehicle is returned. The company will make a cash
reimbursement to the driver for all fuel purchased if receipts are
turned in at the counter at the time of return. Out -of -state rentals do
not include gasoline, therefore no cash reimbursement are made by Budget
Rent A Car for fuel for out -of -state rentals.
4. Drop -off Charge
No drop -off charges in Florida between cities where vendor has rental
locations. Drop -off charges do apply to out -of -state rentals, when a
rental occurs in one city and is dropped in another. Out -of -state drop -
off charges will vary based on location.
5. Insurance Coverage
Primary insurance coverage is provided in the following amounts:
$100,000/$300,000 bodily injury and $25,000 property damage insurance.
Vendor assumes all fire, accident, and collision losses. Collision
damage is assumed by the vendor and payment of the daily CDW, Collision
Damage Waiver, or LDW, Loss Damage Waiver, fee is not authorized. All
drivers must have a valid driver's license.
NOTE: The rental vehicle contract includes an insurance override
agreement that covers licensed drivers, other than the individual that
rented the vehicle, that use the vehicle with the permission of the
2
renter with all insurance and benefits provided under the rental
agreement. Renter must pick up vehicle. This coverage is provided
business associates, spouse, and children above the age of 18 that are
living at home. Many rental agreements do not provide full insurance
coverage if other than the renter is operating the vehicle.
6. Reporting Accidents
The rental contract includes 100% coverage for all collision damage to
vehicles. Promptly report all vehicle accidents to Budget Rent A Car.
7. Methods of Payment
State issued Diner's Club, Master Card, Visa, or American Express credit
cards, credit cards provided by Budget Rent A Car and "One Trip Travel
Vouchers" provided by Budget are the acceptable methods of payment that
will insure that the state rates will be received. To obtain Budget
credit cards or "One Trip Travel Vouchers" contact your Finance and
Accounting office or one of the Budget Account Representatives listed in
item 19, page 6. See Item 14 on Page 4 for applicable taxes.
NOTE: Prior to entering into credit card agreements, state agencies
must obtain approval from the Department of Banking and Finance, Bureau
of Auditing.
8. Parking Violations
Parking violations are the responsibility of the renter. Budget Rent A
Car and the State of Florida are not liable. The renter will be
reported or contacted for unpaid violations.
9. Contract Period
The rental contract will be effective from October 1, 1994 to
September 30, 1995.
10. Reservations
Reservations for vehicles should be made as soon as travel plans are
known. Reservations must be made by calling the toll free number listed
below or your travel agent. Request State of Florida contract rates,
Rate Code ZA25. Written confirmation of reservations is available on
request. It is recommended that written confirmation be requested for
all rentals. Reference the rate code listed below to assure the state
rental rate is received. NOTE: The Compact (Class B) rental rate is
not guaranteed without a confirmed car reservation for a compact class
rental vehicle.
BUDGET - 1 -800- 526 -6408 BUDGET RATE CODE - ZA25
or your travel agent CORPORATE ACCOUNT NUMBER: 8760006740
3
11.` Energy Conservation
State employees are required to use Compact Class B (Budget Class CCAR)
vehicles except when the number of passengers or the volume of materials
to be transported make use of a Compact Class vehicle impractical. To
assure you receive the proper class vehicle request rental vehicles by
vehicle rental class and not by vehicle make or model. Rental vehicle
classes are listed on page 6. If a Compact Class vehicle is not
available a larger class may be rented. Do not rent from another vendor
unless a compact class vehicle is more economical including CDW or LDW
insurance and fuel than renting a larger class vehicle from Budget.
12. Use of Rental Vehicles Provided by Other Companies
This contract does not prohibit the use of rental vehicles that have
lower net rates including primary insurance coverage, payment of the
collision damage waiver fee, cost of fuel, or when the contract vendor
cannot provide vehicles.
NOTE: Purchase collision damage insurance, if a vehicle is rented from
other than Budget Rent A Car.
NOTE: Under terms of this contract, vehicle provided by Avis, Hertz,
and National can be used only when the contract vendor cannot provide
vehicles.
Vehicles provided by other companies must include primary insurance
coverage. Inquire prior to rental to verify that primary insurance
coverage is provided. All major rental companies provide primary
insurance coverage, but many small companies provide secondary coverage
and the renter's personal vehicle insurance coverage is primary.
13. Completion of Travel Expense Voucher When Rental Cars Provided by Other
Companies Are Used
The Comptroller's Office requires if other than a contract rental
vehicle is used one of the two following statements must appear on the
State of Florida Voucher for Reimbursement of Travel Expenses: "Vehicle
with lower net rate rented" or "Vehicle not available from contract
vendor ".
14. Taxes
Out -of -state rentals will have tax charges. Only in -state rentals that
are billed directly to the agency by use of a Budget Credit Card or
Budget issued one trip travel order are tax exempt. Sales taxes and the
$2.00 per day surcharge will apply to all rentals not billed directly to
the agency. When payment is made by the employee by use of personal
funds, including cash, checks, or credit cards, and the employee is
subsequently reimbursed by the governmental organization the rental
taxable, and sales taxes and the $2.00 surcharge will apply. Note - see
page 9 for additional information.
4
15. Personal Accident Insurance (PAI)
State employees are not authorized to secure this coverage at state
expense but may secure the coverage by personally making payment at the
time of rental. The Department of Insurance does not recommend purchase
of this coverage because it is very expensive for the coverage provided.
16. Trip Length (Note - changes to this section)
The contract is primarily designed to provide low cost transportation on
trips which originate at airport locations and which have an average
length of approximately 85 miles per day. - However, the contract may be
used for state wide travel with no restriction on the miles traveled per
day.
Rentals currently average approximately 75 miles per day. If the number
of high mileage trips experienced increases the total average miles of
contract use above 100 miles per day the following additional per mile
charges will apply to all usage over 100 miles per day.
NOTE - THESE CHARGES DO NOT APPLY AT THIS TIME. WRITTEN NOTICE WILL BE
ISSUED BEFORE THE EXCESS MILEAGE CHARGES APPLY TO RENTALS ABOVE 100
MILES PER DAY.
Additional Net Cost Per Mile
Class A B C D E V
$.07 $.07 $.07 $.09 $.11 $.12
17. Mandatory Seat Belt Use
Under the provisions of Administrative Rule 60B- 1.012, all seated
occupants of state rented vehicles are required to utilize the seat
belts or occupant restraint system provided. Failure to utilize seat
belts or occupant restraint system shall be considered improper use of
a vehicle and shall subject employees to disciplinary action. If an
accident resulting in injury to an employee occurs and the employee is
not utilizing the seat belts or occupant restraint system provided, and
the failure to use the seat belts or occupant restraint system provided
contribute to injuries received, worker's compensation benefits may be
reduced under the provisions of Section 440.09(4), Florida Statutes.
18. Employee Gifts, Rebates, and Coupons Received from Vendors
Under the terms and conditions of this contract the value of promotional
gifts, rebates, and coupon programs initiated after the initial bid will
be provided in the form of discounts from the daily rental rates. NOTE
- Budget's "Awards Plus" program was initiated prior to the bid and the
value of the program is included in the current rental rate.
5
19. Account Representatives
Budget Rent A Car Account Representatives that may be contacted for
assistance are listed below. In addition, the local city managers are
available to provide assistance.
*Ms. Lisa MacAuley 407 - 951 -4803
Ms. Carolyn Karp 800 - 762 -0134
Ms. Joan Howick 800 - 333 -5689
*Primary contact for service problems and complaints, and to set up a
credit card account.
20. Account Representative for Billing Problems or Questions
Billing problems or questions can be resolved by contacting Ms. Joan
Howick, the Budget Account Representative for billing problems, at 800-
333 -5689.
21. Personal Use of Contract
Budget Rent A Car has offered state employee state rates and insurance
coverage for personal use. (NOTE: PERSONAL RENTALS WILL CARRY A $2000
LDW RESPONSIBILITY, MAKING THE RENTER RESPONSIBLE FOR THE FIRST $2000 OF
DAMAGE TO THE BUDGET VEHICLE). The $2,000 LDW responsibility can be
covered by purchase of the LDW coverage. This exposure may be covered
by the renter's personal vehicle insurance, and by certain personal
credit cards. Recommend renter check personal insurance coverage before
renting. Renter must be 21 years old or older, and must be an
authorized user of the credit card presented for rental payment.
22. RENTAL RATES IN -STATE - BUDGET RENT A CAR
VEHICLE CLASSES: BUDGET VEHICLE CLASS CODES
Subcompact - A ECAR
Compact - B CCAR
Intermediate - C ICAR
Full -Size 2 /dr - D SCAR
Full -Size 4 /dr - E FCAR
Mini -Van - V MVAR
6
•
Out -of -state rates are dry rates that do not include fuel. Gasoline
will be charged to the State when the vehicle is checked in based on the
vehicles fuel gauge reading. NOTE: Refunds for fuel purchased will not
be made by Budget for out -of -state rentals.
Drop -off charges do apply to out -of -state rentals. The state will be
charged the out -of -state rental rates and a drop -off charge, or under
the provisions of Section 2, Special Rates, a special rate will be
charged if the special rate will result in a lower net rate than the
out -of -state rate and drop -off charge. Special rates may include
discounted daily rates and mileage charges. Out -of -state drop -off
charges will vary based on location.
ADDEDD DAILY CHARGE CITIES
$ 3.00 Dallas, TX Detroit, MI
Houston, TX Kansas City, MO
Minneapolis /St. Paul, MN New Orleans, LA
San Francisco /Oakland /San Jose, CA Seattle, WA
St. Louis, MO
$ 5.00 Atlanta, GA Baltimore, MD /Washington, D.C.
Boston, MA Hartford, CT
Chicago, IL Philadelphia, PA
$10.00 Manhattan New York Airports
Newark, NJ New York Metro Area
NOTE: CorpRate rates are not available at JFK and LaGuardia airports and
in Manhattan for rentals occurring between the hours of 1:00 p.m.
Friday through 1:00 p.m. Sunday and during certain holiday periods.
8
•
RENTAL VEHICLE CONTRACT TAX CHANGES
The Department of Revenue has ruled that under the provisions of Section
212.08(6), Florida Statutes, rental vehicle use not paid directly by a
governmental organization is taxable.
The Department of Revenue stated that exemption from sales tax and use tax is
not available for any taxable transaction when payment is made by the
employee by use of personal funds, including cash, checks, or credit cards,
even though the employee is subsequently reimbursed by the governmental
organization.
Based on this information, sales tax and the $2.00 per day surcharge on
rental vehicles will apply to all rentals that are not billed directly to the
using agency.
The Airport Rental Vehicle Contract has been awarded to Budget Rent A Car.
For agencies to be exempt from sales tax and the $2.00 per day surcharge,
Budget Rent A Car can issue Budget Credit Cards and Budget One Trip Travel
Vouchers.
To obtain Budget Rent A Car Credit Cards, One Trip Travel Vouchers, or
information on billing formats, contact one of Budget Account Representatives
listed in Section 19 on page 6.
For additional information regarding the "rental vehicle contract, contact the
Division of Motor Pool, Bureau of Motor Vehicles and Watercraft at 488 -4290
or Suncom 278-4290.
9