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SR-6-T (8) ({uJ#9/~ r; 'T PURCH PW JP \finance\purch\stfrpts\srawd bid 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 -1- (,"( 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 -2- 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 -3- ~ PW:PW.JP:f:\fmance\purch\stfrpts\reso wpd 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 -1- 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. -2- . f -11 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' , I ~, (/r' I , i4A ~ a)/)'lNt./l.4uM MARSHA JOr\,JES MOUTRIE City Attorney -3- t ) t Adopted and approved tills 22nd of July 1997 \ -- t~lIJ O&t,UJ-- P$ O'Connor. ~Iayor ; i j , -- 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 ~_I~~ I Mana M Stewart. eny Clerk