HomeMy WebLinkAbout2004-04-27 - AGENDA REPORTS - SALE OF NINE BUSES (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: David Peterson
DATE: April 27, 2004
SUBJECT: APPROVAL AND AUTHORIZATION OF THE CITY MANAGER
TO EXECUTE AN AGREEMENT WITH R.W. FULKERSON BUS
AND PARTS, LLC. FOR THE SALE OF NINE 1992 NEOPLAN
COMMUTER BUSES
DEPARTMENT: Field Services
RECOMMENDED ACTION
City Council approve and authorize the City Manager or designee to execute a sales agreement
for $90,900 with R.W. Fulkerson Bus and Parts, LLC, for the sale of nine 1992 model Neoplan
City fleet buses subject -i City Attorney approval.
BACKGROUND
Current policy dictates retirement from service of buses that have accumulated 500,000 miles or
12 years of use. In March 2004, nine buses reached the retirement threshold. In anticipation of
this, staff placed advertisements in industry trade magazines as well as on the internet indicating
the City's intent to sell these buses as surplus. Staff received approximately 50 phone calls from
a variety of parties. Responders to the advertisements ranged in location from as close as
Northern California to as far away as West Africa.
Staff received four written offers by the deadline, which was set as March 31, 2004. An auction
process was conducted to allow all participants who made offers to issue counter offers. This
helped ensure the best value for the City as a result of the sale. The highest and best offer
received was from R.W. Fulkerson Bus and Parts, LLC (Fulkerson), a company based in
Missouri. Fulkerson is a bus resale business, a company that purchases buses, refurbishes them,
and then sells them for profit.
Upon such time as the City Manager is given the authority to execute the agreement, Fulkerson
will send representatives from his company to Santa Clarita where the sale will be completed.
At that time, Fulkerson will remove the buses from City property. The buses are being sold
"as -is." The City will have no liability for the buses once the sale is complete.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
Funds secured by the sale will be allotted to Revenue Account No. 801/6714.
The proceeds of the bus sale will be planned for the refurbishment of older fleet vehicles, in an
effort to maintain the highest possible service standards.
ATTACHMENTS
Sales Agreement available in the City Clerk's Reading File