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HomeMy WebLinkAbout1991-04-09 - AGENDA REPORTS - SPIRIT BUS CONTRACT (2)CONSENT CALENDAR DATE: April 9, 1991 SUBJECT: Gillig Corp. " DEPARTMENT: Public Works n BACKGROUND AGENDA REPORT City Manager Approval Item to be presented t" Bus Contract John Medina, Director s The=City Council adopted Ordinance Number 90-25 last August, and determined that itis in the public interest and necessity to direct staff to work with the Foothill Transit Zone combine our bus orders and negotiate a lower purchase price from the Gillig Corporation for the City order of 13 "Spirit" buses. At their January 8, 1991 meeting, Council directed staff to draft a contract for the purchase of 13 "Spirit" buses and subsequently issue a Purchase Order. Attached is a contract approved by the City Attorney's Office and signed by Gillig which will complete the process.of acquiring the 13 Gillig buses. The total cost of each coach including tax and.delivery is $155,675.73 for a total cost of $2,025,870.99. As you know, the cost will be funded with Proposition A funds which may only be used for transit programs. The buses will be deliverd prior to the expansion of the City's routes scheduled for August of this year. RECOMMENDATION Direct the Mayor to sign the contract between the City and the Gillig Corporation for the purchase of 13 Gillig "Spirit" buses. Attachment: Contract DEL: 125 Agenda Item:_.,, )r , CONTRACT 4 • THIS CONTRACT, made and entered into this 24 day of January, 1991, by and between the GILLIG CORPORATION, hereinafter called "Contractor" 25800 Clawiter Road, Hayward, California 94545, and CITYOFSANTA CLARITA, 23920 Valencia Boulevard, Suite 300, Santa Clarita, CA 91355, hereinafter called the "Purchaser." The Contractor and the Purchaser, agree as follows: 1. The Contractor shall deliver: Thirteen (13) Gillig "SPIRIT"transit vehicles. If there are discrepancies between any of the terms contained in Exhibit A of this Contract, the terms of this Contract shall govern .and shall provide the' vehicles quoted in the Contractor's letters dated October 15, 1990 and February 8, 1991, attached as Exhibit A. Contractor warrants the performance of the vehicles as provided in its standard warranty, attached as Exhibit A. _ 2. DELIVERY The Contractor shall complete all work and furnish all equipment called for under this Contract. Work shall be completed in June 1, 1991. 3. DELIVERY PROCEDURE . Delivery date shall be determined.by a receipt signed by the City's Transit Coordinator or the City's cgntracted inspector. Contractor shall have risk of loss of the coach, including any damages sustained during the common carrier driveway operation. The Purchaser shall assume risk of loss of the coach on delivery by the common carrier driveway service, or on release to the Purchaser's drivers at the Gillig manufacturing plant. 4. ACCEPTANCE OF COACH Within ten (10) calendar days after arrival at the designated point of delivery, each coach shall undergo inspection for acceptance. Acceptance may occur earlier if the Purchaser notifies the contractor of early acceptance or places the coach in revenue service. 5. NON-ACCEPTANCE OF COACH If the equipment is not accepted, the Contractor requires a letter within fifteen (15) calendar days after delivery listing all the items for resolution. The Contractor will diligently pursue resolution of items or the work may be performed,by the Purchaser with reimbursement by the Contractor, subject to mutual approval, However, no work shall be • performed for the Contractor's account without prior approval of the Contractor. -1- 6. PAYMENT SCHEDULE The Purchaser shall make payment in full within thirty (30) days after acceptance of each vehicle. 7. LATE PAYMENT In the event of delay of payment for the equipment beyond the payment scheduled, the Purchaser shall pay to the Contractor late payment damages equal to the daily interest on the balance due for each calendar day for equipment. The daily late payment damages shall be calculated using the prime rate published by the Manhattan Bank on each day the payment is late. 8. TITLE Adequate documents for securing the coach(es) shall be provided to the Purchaser upon delivery. Following acceptance of the coach, the Contractor warrants that the title shall pass to the Purchaser free and clear of all liens, mortgages, and encumbrances, financing statements, security agreements, claims, and demands of any characters. 8. EQUAL EMPLOYMENT OPPORTUNITY In connection with the execution of this Contract, the Contractor shall not discriminate against any employee or applicant for employment because of race, creed, marital status, age, color, set, national origin, or handicap, except for a bona fide.occupational qualification. The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, creed, marital status, age, color, sex, national origin, or handicap,.except for bona fide occupational qualification. Such actionsshall include, but not be limited to the following: employment, upgrading, demotion, or transfer, recruitment of advertising, layoff or termination, rates of pay or other forms of:compensation, and selection for training including apprenticeship. 10. PROHIBITED INTEREST No member, officer, or employee of the Purchaser during his tenure or within one year thereafter shall have any interest, direct or indirect, in this Contract or the proceeds thereof. 11. CONTRACT CHANGES Any proposed change in this Contract shall be by mutual agreement of both parties. -2- 12. TERMINATION OF CONTRACT . Termination for Convenience. The Purchaser may terminate this Contract, in whole.or in part, at any time by written notice to the Contractor. The Contractor shall be paid its costs, including contract close-out costs, and profit on work performed up to the time of termination provided contractor attempts to mitigate in good faith by resale of the work performed as provided in the California Commercial Code. The Contractor shall submit its termination claim to the Purchaser to be paid by the Purchaser. If the Contractor has any property in its possession belonging to the Purchaser, the Purchaser will account for same, and dispose of it in the manner Purchaser directs. 13. Contractor and Purchaser shall indemnify and hold each other harmless from and against all. costs, .claims, losses and liabilities which may be assessed against either one of them based on any negligence or liability of the other in the performance of its .duties as provided herein. 14. The provisions of this Contract shall control in case of .conflicting or inconsistent provisions contained in any purchase order or other sales document executed by both Contractor and Purchaser. In witness whereof, the Purchaser has authorized the execution of this Contract in duplicate on the day of 1991. CITY OF SANTA CLARITA • Purcha"r By Title CONTRACTOR GILLILCQRPORATION By " V � - — �� \ i Brian Macleod Title Vice President Date March 15, 1991 1WW 0 EXHIBIT A GILLIG CORPORATION October 15, 1990 Mr. William P. Forsythe Executive Director Foothill Transit Zone 100 No. Barranca Avenue, Suite 980 West Covina, California 91791-1600 Dear Bill: BOX 3008 HAYWARD. CALIFORNIA 94540-3008 TELEPHONE 4151785-1500 PAX 4151785.6819 We appreciate this opportunity to quote on your procurement of 20 mid-sized transit buses. Our 27-1/2 foot bus called the "SPIRIT" was specifically designed to provide many years of reliable service in the most severe applications, including city transit- and suburban commuter operations. The heavy duty design of the SPIRIT incorporates most of the "big bus" features including: * Air Ride Suspension * Allison Transmission. * Air Brakes * Rockwell Axles * Turbocharged Diesel Engine * Rear Engine Design j with the advantages of a mid-sized bus, such as lower price, improved maneuverability, better fuel consumption, etc. These heavy duty components are combined with a transit proven, rugged yet lightweight aluminum body design that offers fresh new styling to promote ridership. The SPIRIT provides todays cost conscious operator with a logical alternative to the medium duty "cutaway" or body on chassis vehicles and their inherently high life cycle costs. Gillig is pleased to quote the vehicles outlined below. This includes the basic equipment as was discussed in our October 10th meeting. QUANTITY 20 SPIRIT Buses - Foothill Transit - 7 Santa Clarita Transit - 13 SPECIFICATIONS Size: 27.5 Feet by 96 Inches Wide, 110 Inches Wide Gross Vehicle Weight: 26,500 -Pounds Seated -Capacity: 22 + 1 W/C Position Type of Seats: American Seating Model 6468T With VR50 Mr. William P. Forsythe October 15, 1990 Page 2 Engine: Caterpillar Model 3208T a 210 HP Transmission: Allison Model MTB 643 (Retarded) Front Axle: Rockwell Model FF943 Drive Axle: Rockwell Model RS17-145 Air Conditioning System: Thermo King Model U1 Passenger Windows: Transom Style 28% Gray Tint Driver's Windows: Full Slider Type, 73% Gray Tint Tires: (6) Michelin'XZA 255/80R x 22.5 Wheels: Polished Aluminum, Stud Pilot Type Wheelchair Lift: Lift -U with separate power supply and center door location. Farebox: GFI Cents -A -Bill ADDITIONAL FEATURES 100 Gallon Fuel Tank P.A. System with AM/FM Radio/Cassette Automatic Slack Adjusters Spinner II Auxiliary Oil Filter Pull Cord Stop Request Touch Tape Door Control System Super Max Destination Sign Front & Side (Foothill only) Two Roof Vents STANDARD SAFETY EQUIPMENT 5 Lb. Fire Extinguisher 24 Unit First Aid Kit 3 -Piece Safety Triangle Kit WARRANTY As noted on the enclosed standard warranty sheet. In response to Dennis Luppen's question on the use of recycled engine oil, Caterpillar indicates that it is acceptable and will not affect the warranty provided the.oil change intervals are not changed and•:the recycled oil meets minimum specifications (to be provided in the next few days). I Mr. William P. Forsythe October 15, 1990 Pace 3 Extended component warranties are available at additional cost, however, they must be purchased before delivery of your first coach. SANTA CLARITA OPTION DIFFERENCES Same specifications as for Foothill except as noted. below: Max Destination Sign Front & Side (in lieu of Super Max; Particulate Trap System Different Paint Scheme PRICING After reviewing the specifications and taking into consideration the strong requests from both Foothill and Santa Clarita to reduce prices from those quoted in the meeting ($149,000 for Foothill and $174,000 for Santa Clarita) and also take into consideration the potential savings from the combined purchase, Gillig is pleased to quote the following substantially reduced pricing - FOOTHILL SPIRITS - $144,878.00 Per Coach Tax - 8,449.37 (Excl. Handicap Equip.) Delivery - 1,190.00 Total - $154,517.37 Per Coach SANTA CLARITA SPIRITS - $168,389.00 Per Coach Tax - :9,977.59 (Excl. Handicap Equip.) Delivery - 1,190.00 Total - $179,556.59 Per Coach This -pricing assumes this order would be built and processed as one order with a single contract, single contact, single inspection service, and identical specifications except as noted above. This quote is valid for 30 days from the date of this letter. Payment to be made in full 15 days after acceptance (non-acceptance requires a list of deviations within 7 days of delivery). In response to your concerns on windshield replacement costs, we believe that -both the aesthetics and structural integrity of the one piece windshield (less joint surface, non-complex curvature, etc.) outweigh the slightly higher cost; however, Gillig is willing to guarantee the windshield replacement cost for three years. Our current list price is $850.45, but we will reduce this for Foothill Mr. William P. Forsythe October 15, 1990 Pace 4 and Santa Clarita replacements only to $475.00 plus freight, and we will not increase this, to cover inflation by, by more than 5% per year. DELIVERY Your delivery requirements are very aggressive, buz we have managed to reschedule our build and can now deliver your first coach within 180 days after receipt of your confirming order, provided we receive that order within the next 10 days. Delivery of your 20th bus will be made within 210 days from your order. Furthermore, due to current industry leadtimes, this delivery timing assumes the pre -production meeting will be held within 10 days of your confirming order. Bill, it is our pleasure to provide you and the City of Santa Clarita with this quote, and we look forward to selling you our reliable and cost effective SPIRITS in the near future. If you have any questions, please call me' or Gary or our Sales Engineering Coordinator, Eiji (pronounced A.G.) Kinoshita. We would also appreciate your help in expediting the process so we can achieve the delivery we promised. , Very truly yours, GILLIG CORPORATION Brian Macleod Vice President BM:gs cc: Wil Reich, Manager Transit Sales Gary Willms, Manager Transit Marketing Ken Robinson,. Sales Engineering Manager Eiji Kinoshita, Sales Engineering Coordinator Larry Vessels, Plant Manager, Hillsboro Charles Cowie, Project Manager, Hillsboro