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Council Meeting July 22, 1997
JUl 221997
Santa MOnica, Callforma
TO Mayor and CIty Council
FROM City Staff
SUBJECT Recommendation to Provide Bus Parts, and Adopt a Resolution Authorizing
City Manager to NegotIate and Execute Purchase Orders for the Purchase
of Bus Parts
Introdl,Jctlon
ThiS report concerns the purchase of bus parts and requests that City Council authorize
the City Manager to negotiate and execute purchase orders for the purchase of bus parts
on the open market
Backaround
The Transportation Department operates 135 buses over 12 routes, travehng over 3 8
million miles and serving more than 18,000,000 riders annually In order to maintain these
buses In dally servIce, the Department stocks over 3,500 dIfferent bus parts In Inventory
DUring the year, approximately $500,000 IS spent to replenish the bus parts Inventory
On December 17. 1996. Council authOrized the City Manager to negotiate and execute
purchase orders for the purchase of bus parts for FY 1996-97 Staff reqUires the ability to
purchase parts on the open market In order to ensure both the availability of the part when
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JUL 2 2 1997
needed and to take advantage of volume pricing and/or price breaks offered by one or
more vendors durmg the year due to changing market conditions
The market fleXibility for purchaSing bus parts IS extremely limited Unlike truck and
automotive parts which are available from a large number of vendors (either locally,
regionally or nationally) bus parts are available from a limited number of vendors Some
parts are only available from one vendor, the orlgmal equipment manufacturer (OEM) or their
authorized distributor (Universal Coach Parts) Non-OEM parts are available, at this time,
from four vendors nationwide (Universal Coach Parts, Mohawk Manufacturing, MunCie
Reclamation and Midwest Bus Corporation), though availability of the parts vary among the
four vendors
When parts are available from more than one vendor, purchase deCISions depend not only
on cost, but also on part availability and estimated delivery time Parts needed for routine
repairs can be eaSily maintained In Inventory and purchases planned so that they can be
made from the lowest cost vendor However, due to the large number of parts on any
particular bus model, It IS often not practicable to stock all parts In Inventory, or stock In
suffiCient quantIties to maintain the buses In service when a unique problem occurs At
these times, when emergency part purchases are reqUired, part availability and delivery time
are conSidered crUCial to the purchaSing decIsions
Under the open market program, after City CounCil authorization, annual purchase orders
WIll be Issued to known bus parts vendors When parts need to be restocked, staff Will soliCit
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quotes from each vendor who can supply parts and award to the lowest responsive and
responsIble bidder who has the parts available Records Will be kept to ensure that all
vendors listing the part have been contacted The ability to contmually purchase parts on
the open market Will ensure that Inventones are kept moderate and that safe quality bus
servIce IS marntalned and available to the pUblic at the lowest possible cost
The Items covered by these agreements Will Include replacement bus parts for Motor
Coach Industries (MCI), NOVA and General Motors CorporatIon (GMC) transit coaches
which compnse the Big Blue Bus fleet
BudgetlFrnanclallmpact
Fiscal Year 1997-98 appropriation authonty for this purchase IS In the Maintenance
DIVISion, TransportatIon Department, account number 41-600-651-1 0601-4422-25422 As
Items are drawn from Inventory, they WIll be expensed against thIs account The estImated
annual expenditure IS $500,000 00 for FY 1997-98
Recommendatton
It IS recommended that a resolution be adopted authOriZing the City Manager to negotiate
and execute purchase orders for the purchase of bus parts on the open market
Prepared By Pam Wortham, Purchasing Agent
Margarita Lee, Buyer
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CIty Council Meetmg: July 22. 1997
Santa Monica, California
RESOLUTION NO. 9166
(CCS)
{City Council Series}
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA TO AUTHORIZE THE CITY MANAGER
TO NEGOTIATE AND EXECUTE CONTRACTS FOR THE
PURCHASE OF BUS PARTS
WHEREAS, the Santa MOnica's Big Blue Bus operates 135 buses over 12
routes, traveling 3,8 million miles and serving more than 18.000,000 riders annually;
WHEREAS, It IS vital to the travel needs of the bus riding pubhc that the Big Blue
Buses be properly malntamed to ensure the safe travel for Its nders; and
WHEREAS, availability of bus parts IS necessary to the proper maintenance of
the bus fleet;
WHEREAS, staff has determined that the formal bidding procedures are not
conducive to the flexibility needed to guarantee availability of bus parts nor ensure that
the lowest possible pnce IS received due to changing market conditions In bus parts;
WHEREAS, Santa MOnica MUniCipal Code Section 2.24.1 OO(b) provides for the
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waiver of formal blddmg procedures, after rejection of all bIds, when necessary to
address concerns such as those set forth above;
.
WHEREAS, Santa Monica MUnicipal Code Section 2.24. 1 OO~ provides for the
waiver of formal bIdding procedures when deemed by City Council to be of urgent
necessity or cause unnecessary expense and delay as set forth above;
WHEREAS, Santa MOnica MUnicipal Code SectIon 2.24.080(1) prOVides for an
exception to competitive bidding on proprietary Items of anginal eqUIpment
manufacturers and/or their authorized exclusIve dIstributors;
NOW THEREFORE, THE CITY COUNCil OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOllOWS:
SECTION 1. In accordance with Santa MOnica MUniCipal Code Section
2.24.100(bL the City Council finds and declares that bus parts may be purchased
under more favorable circumstances In the open market and the competItive blddmg
procedure should be waived for non-OEM bus parts.
SECTION 2. In accordance with Santa Monica MunicIpal Code Section
2.24.100(cL the City Council finds and declared that certain bus part purchases are
of urgent necessity and the competttlve blddmg procedure should be waived for
non~OEM bus parts.
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SECTION 3. In accordance with Santa MOnica MUnicipal Code Section
2 24 080( 1) the City Council frnds and declares that certain bus part purchases are the
propnetary Items of onglnal equipment manufacturers and/or their authonzed exclusive
distributors and the competItive bidding process should be waived for non-OEM bus
parts
SECTION 4. In accordance with the above listed Santa MOnica MUniCipal
Code sections, the City Council authorizes the City Manager to negotiate and execute
purchase orders for the purchase of bus parts.
SECTION 5
The City Clerk shall certify to the adoption of this Resolution,
and thenceforth and thereafter the same shall be In full force and effect
APPROVED AS TO FORM'
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MARSHA JOr\,JES MOUTRIE
City Attorney
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Adopted and approved tills 22nd of July 1997
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P$ O'Connor. ~Iayor
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I. Mana M Ste\vart. CIty Clerk of the CIty of Santa ~1omca. do hereby certifY that the
foregomg ResolutIOn 9166(CCS) '.vas duly adopted at a meetmg of the CIty Council held on the
22nd of July. 1997 by the follov,'mg vote
Ayes
Councllmembers
Femstem. Genser. :vlayor Pro Tern Holbrook. Mayor
O'Connor. Rosenstem
Noes
Councllmembers
Kone
Abstam
Councllrnembers
None
Absent
Councllmembers
Ebner. Greenberg
ATTEST
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Mana M Stewart. eny Clerk