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SR-6-R (27) I2t&o -IF 9 a06 ees 'R AV6 , f fJ9B PURCH PW JP \flnance\purch\stfrpts\srawd bid Council Meeting August 11, 1998 Santa MOnica, California TO Mayor and CIty CouncIl FROM City Staff SUBJECT Recommendation to Provide Bus Parts, and Adopt a Resolution Authorlzmg City Manager to NegotIate and Execute Purchase Orders for the Purchase of Bus Parts Introduction 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 Background The Transportation Department operates 135 buses over 12 routes, travelmg over 38 million miles and serving more than 18,000,000 nders annually In order to mamtain these buses In dally service, the Department stocks over 3,500 dIfferent bus parts In Inventory Durmg 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 m order to ensure both the avaIlability of the part when -1- 6R AUG t 11198 needed and to take advantage of volume pricing and/or pnce 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 orlgmal equipment manufacturer (OEM) or their authorized distributor (Universal Coach Parts) Non-OEM parts are available, at thiS time, from SIX vendors nationwide (Universal Coach Parts, Mohawk Manufactunng, Muncie Reclamation, Nova Centre, Gillig and Neopart Corporation), though availability ofthe parts vary among the SIX 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 malntamed 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 m 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 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 -2- solrClt 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 mventones are kept moderate and that safe quality bus service IS maintained 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 comprise the Big Blue Bus fleet BudgetlFlnanclallmpact Fiscal Year 1998-99 appropnatlon authority for this purchase IS m the Mamtenance DIVISion, Transportation Department, account number41-60Q-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 1998-99 Recommendation It IS recommended that a resolution be adopted authonzlng the CIty Manager to negotiate and execute purchase orders for the purchase of bus parts on the open market Prepared By Pam Wortham, Purchasmg Agent Margarita Lee, Buyer Pat Butters, Mamtenance Manager -3- F:\atty\munl\laws\busparts. res City Council Meeting: August 11, 1998 Santa Monica, California RESOLUTION NO. 9306 (CCS) (City Council Senes) 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; and WHEREAS, It IS vital to the travel needs of the bus ndlng 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; and 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 price IS received due to changing market conditions in bus parts, and -1- WHEREAS, Santa Monica MUnicipal Code Section 2.24.100(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; and WHEREAS, Santa Monica MUnicipal Code Section 2.24.080(1) provides for an exception to competItive bidding on propnetary items of onginal equipment manufacturers and/or their authOrized exclUSive dlstnbutors, 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(b), the City Council finds and declares that bus parts may be purchased under more favorable circumstances In the open market and the competitive bidding procedure should be waived for non-OEM bus parts. SECTION 2. In accordance With Santa MonIca MuniCipal Code Section 2.24.1 DOle), 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 3. In accordance With Santa MOnica MuniCipal Code Section 2.24.0BO( 1) the City Council finds and declares that certain bus part purchases are the propnetary Items of anginal equipment manufacturers and/or their authoTlzed -2- exclusive dlstnbutors and the competitive blddmg 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 authoTlzes 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: ~ t \ , ,:- ./ -\. , .~' '-_ i . } .Yj I. J ~ I' .. r.........~, .4-~.0~ L' iA....CL{... .fL-L(.. '111I ..,. f MARSHA JONES MOUTRI E City Attorney -3- Adopted and approved this 11th of August, 1998 4-,~ Robert Holbrook, Mayor I. Mana M Stewart, City Clerk of the CIty of Santa Monrca, do hereby certify that the foregoing Resolution 9306 (CCS) was duly adopted at a meeting of the Santa Monica CIty Council held on the 11th of August, 1998 by the following vote Ayes Council members Ebner, Felnstem, Genser, Greenberg, Holbrook, O'Connor, Rosenstem Noes Councllmembers None Abstam Councllmembers None Absent Councllmembers None ATTEST ~~~~ Marra M Stewart, City Clerk