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