HomeMy WebLinkAbout1998-01-13 - AGENDA REPORTS - RESO 98 4 FOUR NEW BUSES (2)r
CITY OF SANTA CLARITA
AGENDA REPORT J
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NEW BUSINESS City Manager Approval:
Item to be presented by: Ron Kilcoyne
DATE: January 13, 1998
SUBJECT: WAIVE PURCHASING POLICY FOR THE ACQUISITION OF FOUR NEW
COMMUTER BUSES, AND APPROVE FUTURE ACQUISITION OF SIX
ADDITIONAL NEW COMMUTER BUSES
RESOLUTION NO. 98-4
DEPARTMENT: Transportation & Engineering Services
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City Council adopt Resolution No. 98-4, waive the purchasing policy for the acquisition of four new
commuter buses, and authorize the issuance of a Request for Proposals (RFP) for the acquisition of
six additional commuter buses.
In February 1994, the City of Santa Clarita began operating express bus service to the San Fernando
Valley in response to the Northridge earthquake. These services have proven successful and
continue to operate today on a permanent basis. Because the City did not have bus equipment
available for this service, the contractor providing the service has been required to supply ten buses.
Due to financial constraints, the City did not specify new equipment for these services.
Growth in available transit funds now enables the City to raise the standard for equipment used by
Santa Clarita Transit. By acquiring new vehicles, the City can elevate the transit product to true City
standards, improving customer service and satisfaction. Based upon experience gained over the last
six years, the City can specify equipment that will provide reliable service for up to 20 years.
ATCIVancom, the City's contractor for transit service, has acquired four commuter buses for another
location. These vehicles are no longer needed for the purpose originally intended and can be
diverted to Santa Clarita for immediate use. These vehicles will complete manufacture this month
and have not yet entered passenger service. Should the Council waive the City procurement process,
the City can acquire these buses at costfromATC/Vancom. It is estimated that reduced maintenance
and capital costs associated with City ownership of all commuter buses will result in an approximate
annual savings of $141,312 in contract costs.
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WAIVE PURCHASING POLICY - COMMUTER BUSES
RESOLUTION NO. 98-4
January 13, 1998 - Page 2
To replace the remaining contractor -owned buses, the City would issue an RFP to acquire six
additional new buses. As a result, the City will own all buses used for commuter service, ending the
current arrangement where the City owns half of the buses and the contractor the other half. As
noted above, the contractor will reduce the cost per revenue hour to account for lower maintenance
costs and the residual value of the contractor -owned buses being disposed.
ALTERNATIVE ACTIONS
1. The City take no action. The contractor would continue to be responsible for supplying 10
buses for commuter service, and the City provide 11. The contractor has indicated that they
will replace the existing 1986 Neoplan buses, which have caused considerable problems,
with other used buses which meet the specifications of the existing contract.
2. The contractor retain ownership of the four express buses that have already been procured,
and procure and retain ownership of the additional six. The benefit of this alternative is that
the additional six buses would enter service between August and November 1998, whereas
City procurement would delay arrival of the buses until sometime between February and
December 1999. The disadvantage of this alternative is that the contractor retains ownership
of these new vehicles. When the contract with ATC expires in 2001, the City would have
to procure these or equivalent buses, should the City choose not to continue contracting with
ATC. In addition, while the cost to the City would be about the same as with the
recommended action, this approach precludes the possible use of Federal Transit
Administration (FTA) capital funds to finance up to 80% of the cost of these buses.
3. Approve staff recommendation, except have the contractor procure the remaining six buses,
and the City procure them from the contractor once built. The benefit of this alternative is .
the earlier delivery (as stated in alternative number two above), while the disadvantage is the
inability to possibly use FTA capital funds to finance up to 80% of the cost of these buses.
4. Other action as determined by City Council.
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The City would finance the purchase of these buses in a similar manner that the City acquired all of
its new equipment in 1991. The estimated net annual capital cost will be $150,000 for the four buses
acquired from ATC and $270,000 for the remaining six buses. Projections indicate sufficient funds
available to cover this increasedexpenseutilizing Proposition A, Proposition C, and Transportation
Development Act (TDA) funds. FTA capital funds may also be used to fund up to 80% of the cost
of the six buses acquired by the City, and staff would pursue the use of these funds. However, due
to the uncertainty of these funds, financial projections assume 100% use of local funds.
Resolution 98-4
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RESOLUTION 98-4
A RESOLUTION OF THE
CITY OF SANTA CLARITA, CALIFORNIA
AUTHORIZING THE DISPENSATION OF
COMPETTITVE BIDDING REQUIREMENTS
TO PURCHASE COMMUTER BUSES
WHEREAS, the City of Santa Clarita ("City") operates successful commuter bus services
to the San Fernando Valley; and
WHEREAS, the City seeks to elevate the"standard for bus equipment used by Santa Clarita
Transit; and
WHEREAS, the opportunity exists to immediately acquire state-of-the-art commuter bus
equipment; and
WHEREAS, the City Municipal Code, Section 3.12.270, allows for the dispensation of
competitive bidding procedures when the City Council finds that it is in the public interest.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARTTA does
resolve as follows:
SECTION 1 That a public exigency for new commuter buses exists, and will not permit
a delay resulting from competitive solicitation.
SECTION 2 That it is in the public interest and necessary to purchase commuter buses
without compliance with formal contract procedures.
SECTION 3 That the requirement for competition in the one-time procurement of
commuter buses is hereby waived.
7 - ..
RESOLUTION NO. 98-4
January 13, 1998 - Page 2
PASSED, APPROVED AND ADOPTED this day of
19_.
MAYOR
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CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) §
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify
that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita
at a regular meeting thereof, held on the day of
19_, by the following vote of the Council:
AYES: COUNCIL.MEMBERS:
NOES: COUNCII,MEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
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