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HomeMy WebLinkAboutAGENDA REPORT 1995 0315 CC REG ITEM 11DTO: FROM: DATE: SUBJECT: Background : ITEM AM x Council Meeting t�- 1.6 1995 ACTION:/ AGENDA REPORT CITY OF MOORPARK Honorable City Council Mary R. Lindley, Assistant to the City Managerj� %, March 7, 1995 (CC Meeting of March 15) Consider the Purchase of a City Bus and Exception to the Competitive Bidding Requirement The City currently contracts out the operation of its bus service to Antelope Valley Bus Service. The contract between the City and Antelope includes the provision of a bus, bus driver, fuel, and maintenance. Antelope charges the City $375.44 per day. The bus operates 9.5 hours per day and the total cost of the bus contract for FY 1994/95 is $96,276. Staff is proposing that the City purchase and retain ownership of a bus and solicit proposals for operations, maintenance, and a back -up bus. The purpose for such an arrangement is to: 1) reduce the cost of the City's bus service, 2) to provide better service by obtaining a higher quality vehicle (greater curb appeal) , and 3) reduce TDA expenditures and utilize a funding source previously not used by the City. It is hoped that the purchase and new contract would be in place by July 1995. The City of Camarillo currently operates its bus service under this type of an arrangement. Staff recommends purchasing a 27 foot, 21 passenger bus (cut -away Chevrolet van) with two wheelchair :stations and an electric wheelchair lift. Additional specifications include, but are not limited to: automatic overdrive, four speed transmission; dual hydraulic power assisted disc brakes; power steering; 40 gallon capacity fuel tank; high output heaters; front and roof - mounted rear air - conditioning; and a fare box. The bus will be white and include striping and lettering. The City seal would be attached to the sides of the bus as it is now. The City of Delano recently bid a bus RFP on a vehicle similar to the specifications that would be desired in Moorpark. I spoke with the successful bidder, United Bus Corporation, regarding its willingness to honor its bid price with Delano for the City of 00128 Bus Purchase March 7, 1995 Page 2 Moorpark. They have indicated that they are willing to provide the same bus at the same price. They would also be willing to make adjustments to the bus specifications to better meet Moorpark's needs. Specifically, the City could decline the CNG fuel package that Delano requested, choose an alternate seating pattern (see Exhibit A), and specify different wheelchair station locations. The cost of the bus, with tax, is $57,132.1.9. In order to take advantage of the bid offer presented to Delano (sole source purchase), the City Council needs to approve this purchase as an exemption to the City's Municipal Code 3.04.120. The City Attorney has advised staff that this section allows the City Council, by majority vote, to waive the purchasing procedures to fit a specific purchase, when such a purchase is not in violation of state law. The City would then "piggy- back" onto Delano's bid award saving the City approximately two to three months on the purchase of the bus (it takes approximately three to four months to receive a bus after the order is placed). Staff proposes to pay for the bus using Simi Valley /Moorpark Urbanized Area Section 9 funding. Section 9 funds require a 20 percent match ($11,426.44) which. could be covered by the City's TDA funds. Based on information obtained from Laidlaw (City of Camarillo's operator) , operating the bus system with a City owned bus could save the City approximately 20 to 25 percent in contract operating expenses. The savings in TDA funds would equal approximately $138,701 over a seven year period (the life of the bus based on its use is seven to ten years). Since the City would probably need to replace the bus every seven to ten years, it could anticipate an expenditure of $76,560, with inflation factored in, at the end of that time period. Section 9 funds would again be used to purchase a replacement bus, with $15,312 TDA match. The old bus could either be sold and the money used to off -set the new purchase, or the City could retain the bus to be used as a back -up. In either case, total TDA savings would still be $123,000. If Section 9 funds are not available, the City could use its TDA funds to purchase a replacement bus. With $138,701 in savings, there is more than sufficient TDA savings to purchase a bus. The City would still be spending less in TDA for transit services than it does under the current arrangement. 00129 Bus Purchase March 7, 1995 Page 3 Last, since owning a bus significantly alters our existing contract with Antelope for bus services, staff recommends that the City solicit new proposals for the operation and maintenance of a City owned bus and the availability of a back -up bus. The Transportation and Streets Committee reviewed and discussed the purchase of a City bus at its January meeting. The Committee expressed support for the purchase as long as there were financial benefits to doing so. The Committee requested that staff attempt to identify any cost savings, which resulted in the aforementioned information in this staff report. Since that meeting, it has come to staff's attention that while the bus purchase qualifies for Section 9 funding, it will take six to eight months before the City receives the funds. In order to proceed with the purchase at this time, the City needs to allocate either General Funds or TDA to cover the bus purchase and then reimburse itself when the Section 9 funds are received. Reimbursement for an advanced purchase is allowable and is the accepted practice for most transit operators, including Simi Valley and Thousand Oaks. Because the price quoted by United Bus Company is only good until March 16, (a price increase was scheduled for March 1 but was delayed for the City's benefit), the time constraints do not allow for the Transportation and Streets Committee to meet regarding the advance funding issue. Recommendation (Roll Call Vote) Staff recommends that the City Council: 1) Approve the purchase of a City bus from United Bus Corporation at a cost not to exceed $57,138 ($45,705.75 Section 9 and $11,426.44 TDA) and direct the City Manager to sign the purchase order; 2) Approve the sole - source bus purchase as an exemption to the City's Municipal Code 3.04.120; and 3) Allocate $57,138 from the City's TDA funds to cover the advance purchase of the bus, $45,705.75 to be reimbursed upon receipt of Section I> funds; 4) Direct staff to develop a bus service RFP which would be brought back to the City Council for approval before distribution. 00130 2nd set of tie downs under rear 2 seats • • PREL-Imit-siA DOC- TITLE DATE F] , 1 D CHAMPION F11111k, D, U1 1i.i III, MOTOR COACH INC. Pill AVAY F p III 1 (041 wig 111!11111111111W