HomeMy WebLinkAboutAGENDA REPORT 2010 0505 CC REG ITEM 10G ITEM 10.G.
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MOORPARK CITY COUNCIL "'O"
AGENDA REPORT
TO: Honorable City Council
FROM: Yugal K. Lail, City Engineer/Public Works Directo
Prepared by: Shaun Kroes, Senior Management Analys
DATE: April 23, 2010 (CC meeting of 05/05/2010)
SUBJECT: Consider Purchase Order with El Dorado National for the Addition of an
Extended Warranty for the Compressed Natural Gas (CNG) Transit
Buses
BACKGROUND/DISCUSSION
On October 21, 2009, the City Council approved the purchase of three, 32-foot, El Dorado
National Compressed Natural Gas (CNG) buses with a seating capacity of 27 passengers
per bus from El Dorado National. The purchase included a two-year, unlimited mileage
warranty on the engine and a two year, unlimited mileage warranty on the transmission.
The City's current contractor for bus maintenance, Coach America (CUSA), recommended
the City purchase an extended warranty in order to keep the City's maintenance costs low.
The City's purchase agreement with El Dorado National enables the City to purchase an
extended warranty for each bus. The engine warranty would be extended an additional
three years, to a five-year warranty, with a 300,000 mile limitation. Each bus averages less
than 50,000 miles per year, so the 300,000 limitation should not affect the City. The
transmission warranty would be extended an additional three years, to a five-year warranty,
with unlimited mileage.
FISCAL IMPACT
The extended warranty purchase will cost:
Engine ($7,500/bus): $22,500
Transmission ($2,840/bus: $8,520
Total: $31,020
S Tubl c Work s\Everyone\Reports\Stall Reports\2010\May\05-05-2010(Ei Dorado Extended Warranty)doc 282
Honorable City Council
May 5, 2010
Page 2
Funds available for the CNG Bus Purchase:
Total funds budgeted: $1,260,000 (America Recovery and Reinvestment Act)
Current bus purchase: $1,200,000
Funds remaining: $60,000
Extended Warranty: $31,020
Funds remaining: $28,980
The remaining $28,980 can be used for additional bus purchase expenses, including the
services of a bus production inspector. The anticipated inspector cost is between $15,000
and $20,000.
STAFF RECOMMENDATION (Roll Call Vote)
Authorize the City Manager to issue a purchase order to El Dorado National for the
purchase of extended warranties (engine and transmission)for the City's three CNG buses
in an amount not to exceed $31,020.
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