SR-121796-6K
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Council Meeting December 17, 1996 Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SU BJ ECT RecommendatIon to Reject Bids to Provide Suspension (Bld# 2587) and
Distributor (Bid #2486) Bus Parts, and Adopt a Resolution Authorizing City
Manager to Negotiate and Execute Purchase Orders for the Purchase of
Bus Parts
Introduction
This report concerns rejection of bids to provide suspension and distributor 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 In an estimated total amount
not to exceed $500,000 for FY 1996-97
Background
The Transportation Department operates 135 buses over 12 routes, traveling 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 certain bus
parts Inventory
Staff soliCited bids for distributor parts and suspension parts for the fiscal year After
evaluating the bids and reviewing the overall bus parts purchaSing needs, It was
determined that greater fleXibility was needed to purchase parts Staff req UI res th e
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ability to purchase parts on the open market In order to ensure both the availabilIty of
the part when needed and to take advantage of volume prlcmg and/or price breaks
offered by one or more vendors dUring 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 original equipment manufacturer (OEM) or
their authorized distributor (Universal Coach Parts) Non-OEM parts are available, atthls
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 mamtaln 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 purchasmg 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
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sohclt 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 continually
purchase parts on the open market will ensure that inventories are kept moderate and
that safe quality bus service IS maintained and available to the pubhc 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 comprise the Big Blue Bus fleet
BudgeUFmanclallmpact
Fiscal Year 1996-97 appropriatIon authOrity for this purchase IS In the Maintenance
DIvISion, Transportation Department, account number 41-600-651-00000-4422-25422
As Items are drawn from Inventory, they Will be expensed against this account
Recommendation
It IS recommended that
1 Bid #2586 and Bid #2587 be rejected
2 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
Janet Shelton, Administrative Services Officer
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City Council Meeting December 17, 1996 Santa MOnica, California
RESOLUTION NO 9111 (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 PURCHASE ORDERS 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 nders annually,
WHEREAS, It ]S vital to the travel needs of the bus rrdlng public that the BIg Blue
Buses be properly maintained 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, the City sent out Notices Inviting Bids to furnish and deliver
suspension and dlstnbutor bus parts and to guarantee prices for one year,
WHEREAS, two responses were received for distributor parts and three responses
were received for suspensIon parts,
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WHEREAS, staff had determmed that the formal blddmg procedures are not
conducive to the flexibility needed to guarantee availability of bus parts nor ensure that
the lowest possible price IS received due to changing market conditions In bus parts,
WHEREAS, Santa Momca MUniCipal Code Section 224 100(b) provides for the
waiver of formal bidding procedures, after rejection of all bids, when necessary to
address concerns such as those set forth above,
WHEREAS, Santa MOnica MUniCipal Code SectIon 224 100(c) 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 Momca MUniCipal Code Section 224080(1) provides for an
exception to competitive blddmg on proprietary Items of ongmal 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 The City Council hereby rejects all bids for the suspension and
distributor parts.
SECTION 2 In accordance with Santa MOnica MUniCipal Code Section
2 24 1 OO(b) I the City CouncIl finds and declares that bus parts may be purchased under
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more favorable circumstances In the open market and the competltlve blddmg procedure
should be waived for non-OEM bus parts
SECTION 3 In accordance with Santa MOnica MUnicipal Code Section
224 100(c) the City Council finds and declares that certain bus part purchases are of
urgent necessIty and the competItive bidding procedure should be waived for non-OEM
bus parts
SECTION 4 In accordance with Santa MOnica MUnicipal Code Section
2 24 080(1) the City Council finds and declares that certain bus part purchases are the
proprietary Items of original equIpment manufacturers and/or their authorized exclUSive
distributors and the competitive bIdding process should be waived for non-OEM bus
parts
SECTION 5 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 6 The City Clerk shall certl'fy 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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I '~J-_{ Li..--I.--I"..' J. L.c..t", ~ <" ;
MARSHA JONES MOUTRIE
City Attorney
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Adopted and approved thIS 17th of December. 1996
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- Mayor
1 hereby cemfy that the foregomg ResolutIOn 9111(CCS) was duty adopted at a meetmg
of the CIty Counctl held on the 17th of December, 1996 by the followlllg vote
Ayes Councllmembers Ebner. Femstem. Genser, Greenberg, Holbrook, O'Connor,
Rosenstem
::-.Ioes CounCllmembers None
Abstalll CouncIlmembers None
Absent Councllrnembers None
ATTEST
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City Clerk