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HomeMy WebLinkAbout1991-10-22 - AGENDA REPORTS - PROCEDURES LOCAL TRANSIT BUSES (2)iC � I ;_ ' a� Dowk City Manager Appro Item to be presented enni i NEW BUSINESS DATE: October 22; 1991 SUBJECT: WAIVE COMPETITIVE BIDDING PROCEDURES TO PURCHASE FIVE LOCAL TRANSIT BUSES DEPARTMENT: Public Works ffiffe—K&TRIERM On August 28, 1990, Council- adopted Ordinance No. 90-25 amending the Municipal Code relating to the exceptions to competitive bidding requirements. Ordinance No. 90-25 allows the City to directly negotiate a price for supplies, service or equipment if Council determines it is in the public interest and necessity to do so. Through this process, the City was able to negotiate a price with Gillig Corporation for the purchase of 13 Gillig "Spirit" buses at the same time, the Foothill Transit Zone was also in the process of negotiating a price with the Gillig corporation. Thus, the City and Foothill Transit Zone were able to combine orders to form a large contract that resulted in a lower cost per bus. On September 10, 1991 Council authorized the purchase of five buses estimated at $200,000 - $210,000 each. The request was made to add to the City's current transit fleet of 13 buses because: a significant increase in ridership over the previous years. requests from residents to provide additional service to Canyon Country and a route to San Fernando Valley to connect with RTD. Once again, the City has the opportunity to "piggy -back" with Foothill Transit Zone to purchase the five additional City buses.. It has been determined that due to the increased ridership and use of the City's transit system, a bus with a greater passenger capacity is desirable. The Gillig "Phantom" bus has a seating capacity for 39 passengers vs. the Gillig "Spirit" seating capacity of 27 passengers. The Foothill Transit Zone completed a formal bidding process for the Gillig "Phantom." The cost per bus is $221,030. APPROVED Waive Competitive Bidding Procedures October 22, 1991 Page 2 "Piggy -backing" onto the Foothill Transit Zone contract would provide the following savings to the City: Save administrative time and costs that would be needed to develop the bus specifications and bidding documents, advertise, receive bids, evaluate the bids and award the contract; and Receive delivery of the buses in February/March 1992. This delivery is extremely fast in an industry geared to a 10-15 month lead time. Cost savings to the City by "piggy -backing". onto the Foothill Transit Zone bid is $31,020 based on the City's past experience with an outside consultant to coordinate the purchase of the Gillig Spirit buses. Costs for leasing additional buses until the Gillig "Phantoms" are operational can be reduced by eliminating the time to process the project through the formal bidding process. It should be noted that the Gillig "Phantom" buses are particulate trap equipped which emits 60 - 70% less pollutants than allowed by CARB's 1994 regulations covering urban buses. i Fiscal Impact The City will use Proposition A funds to pay the debt service for these five buses. Annual debt service for these five buses is expected not to exceed $190,000 for the next 12 years. RECOMMENDATION Declare that it is in the public interest and necessity to purchase five Gillig "Phantom" buses (equipment) in compliance with the formal contract procedures in accordance with Subsection (7), Section 1., Ordinance No. 90-25. 2. Direct staff to issue a purchase order for the issue of five Gillig "Phantom" buses in an amount not to exceed $1,106,000. MStgmm WAIVEBUS