HomeMy WebLinkAbout1998-10-13 - AGENDA REPORTS - WAIVE PURCHASING POLICY (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
DATE: October 13, 1998
City Manager Approval:
Item to be presented by: (Ron Kilcoyne
SUBJECT: WAIVE PURCHASING POLICY FOR THE ACQUISITION OF USED
BUSES, AUTHORIZE TRANSFER OF > FEDERAL ASSETS, ` AND
AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE
A CONTRACT TO PURCHASE SIX (6) USED BUSES
RESOLUTION NO. 98-112
RESOLUTION NO.98-116
DEPARTMENT: Transportation & Engineering Services
RECOMMENDED ACTION
City Council adopt Resolution No. 98-112 and Resolution No. 98-116; waive the purchasing policy;
authorize the transfer of federal assets; authorize the City Manager to negotiate and execute.a
contract to purchase six (6) used buses; and authorize the transfer of $26,400 from the Transit Fund
Balance to Account No. 4600/8615 for the purchase of six (6) used buses from Golden Gate Transit,
and $51,000 from the Transit Fund Balance to Account No. 4600/7332 for refurbishment of used
buses.
BACKGROUND
In 1991, the City of Santa Clarita began operating local fixed -route bus service in the Santa Clarita
Valley. The original fleet for that service consisted of thirteen (13) 30 -foot Gillig Spirit coaches,
which have been designated by the federal government as having a useful life of seven.(7) years or
200,000 miles. These vehicles met the useful life age threshold for replacement in August 1998.
Additionally, the average mileage on each of these vehicles exceeds 400,000 miles. An investment
of approximately $25,000 each in rehabilitation costs will be required to extend the life of these
vehicles by 125,000 miles, or about two years.
As reported previously, ridership on the local fixed -route system continues to grow at a substantial
rate. The year ending June 30, 1998 reflected ridership numbers 13 percent higher than the previous
year, and capacity remains a challenge during peak hours. These smaller, declining Gillig Spirit
coaches have become an obstacle to meeting that challenge. In addition, three of these vehicles have
been permanently removed from service due to fire damage.
A .'1.1'`1 I i Agenda _
WAIVE PURCHASING POLICY ON USED BUSES
RESOLUTION NO. 98-112
RESOLUTION NO. 98-116
October 13, 1998 - Page 2
Staff recently became aware of a well-maintained fleet of older 40 -foot fixed -route vehicles,
currently operated by Golden Gate Transit in Marin County. After inspection of the vehicles, it has
been determined that the purchase of six (6) of these vehicles will provide improved service until
new buses can be acquired. The City can acquire these buses for $4,400 each for a total of $26,400.
An additional $8,500 per bus ($51,000 total) will cover transportation to Santa Clarita, painting the
exteriors of the buses, replacing etched windows, and installing new tires.
The market value of these buses is $22,000 each. However, since they were originally purchased
with Federal Transit Administration (FTA) funds, federal guidelines allow the transfer of federally
financed assets from one public agency to another. Since FTA funds covered 80 percent of the
purchase price, that value is transferred to Santa Clarita, leaving a balance of $4,400 per bus that the
City must pay Golden Gate Transit.
ALTERNATIVE ACTIONS
The City takes no action. As a.result, staff would rehabilitate the existing 30 -foot fleet utilizing
insurance proceeds.
Other action as determined by City Council.
FISCAL IMPACT
The City would finance the purchase of these buses using available insurance funds, which are
included in the Transit Fund Balance. The insurance funds were received for Gillig Spirit coaches,
which were lost to fire. Additional rehabilitation costs would also be funded through available
insurance funds.
ATTACHMENTS
Resolution No. 98-112
Resolution No. 98-116
Wan&MagendMA=bs998.dnc
RESOLUTION 98-112
A RESOLUTION OF THE
CITY OF SANTA CLARITA, CALIFORNIA
AUTHORIZING THE DISPENSATION OF
COMPETITIVE BIDDING REQUIREMENTS
TO PURCHASE USED BUSES
WHEREAS, the City of Santa Clarita ("City") operates successful local fixed -route bus
services; and
WHEREAS, the opportunity exists to immediately acquire used fixed -route bus equipment;
TTI
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 CLARITA does
resolve as follows:
SECTION 1 That a public exigency for additional 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 used buses
without compliance with formal contract procedures.
SECTION 3 That the requirement for competition in the one-time procurement of
used buses is hereby waived.
PASSED, APPROVED AND ADOPTED this day of
19
MAYOR
ATTEST:
CITY CLERK
RESOLUTION NO. 98-112
October 13, 1998 — Page 2
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
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: COUNCILNIEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
Vmnsiftagenda%uwbsn.doc
RESOLUTION NO. 98-116
A RESOLUTION OF THE
CITY OF SANTA CLARITA, CALIFORNIA
AUTHORIZING THE TRANSFER OF
FEDERAL ASSETS
TO THE CITY OF SANTA CLARITA
WHEREAS, the City of Santa Clarita ("City") may take possession of six federally -funded
buses; and
WHEREAS, the Golden Gate Transit system has several older transit buses in its fleet that
it would like to replace; and
WHEREAS, the Federal Transit Administration has approved the transfer of six buses to
City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA does
resolve as follows:
SECTION 1 The City of Santa Clarita must document the acceptance of the transfer
of the federal assets in an approved resolution by its City Council; and
SECTION 2 The City of Santa Clarita will ensure that all FTA grant requirements
will apply, including spare ratio and useful life requirements; and
SECTION 3 The City of Santa Clarita will ensure that the assets will be included in
its, property records as required in FTA Circular 5010.113, Paragraph (5)f.(1) (Equipment
Management), including the applicable percentage of federal interest in the transferred assets;
and
SECTION 4 The local value charged to the City of Santa Clarita will be no more than
20 percent of the depreciated book value of said buses; and
SECTION 5 The City Manager may decide which and how many of the six buses
will be transferred to the City of Santa Clarita.
RESOLUTION NO. 98-116
October 13, 1998 — Page 2.
PASSED, APPROVED AND ADOPTED this day of
19
ki M am,
ATTEST:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARTTA )
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: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
ltren Wagendalusebsn1.dw