SR-1000-001-07 (8)
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~CitYOf
Santa Monieae
City Council Report
City Council Meeting: April 25, 2006
Agenda Item: ~
To:
Mayor and City Council
From:
Stephanie Negriff, Director of Transit Services
Subject:
Exercise option to purchase 10 New Flyer buses
Recommended Action
It is recommended that the City Council authorize the City Manager to execute a
modification to Contract 8274 with New Flyer of America in the amount of $941,900 to
cover the procurement of 10 LNG fueled replacement buses and spare parts.
Executive Summary
The City wishes to exercise an option to procure 10 buses for $3,900,720 plus a
contingency of $390,093 and to purchase spare parts for $422,759 plus sales tax of
$34,878. The existing contract with New Flyer of American authorizes $3,806,550 for
the 10 buses only. Additional $941,900 is required for the contract modification.
Discussion
On September 9, 2003, City Council authorized the purchase of 52 LNG fueled transit
buses from New Flyer of America and miscellaneous spare parts for a total cost not to
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exceed of $21,434,677, including $1,948,677 for contingency. Council also authorized
the exercise of an option to purchase up to an additional 20 buses at an option price of
$380,655 per bus. The contract has since been executed with the full amount of
$21,434,677 expended, leaving the purchase option of 20 buses at the City's discretion
to exercise. At this time, the Big Blue Bus seeks to order only 10 more buses to replace
10 older buses.
Since the Big Blue Bus desires to modify some of the components on the 10 buses, the
per bus price is increased to $390,072 with a total of $3,900,720, exceeding the original
purchase option's authorization of $3,806,550 by $94,170. As customary to previous
purchase contracts, a contingency of $390,093 (approximately 10% of the total
purchase price) is included.
The New Flyer fleet will grow to 62 with the purchase of the 10 buses. For repair and
maintenance of these buses, the Big Blue Bus requests an authorization of $457,637 for
spare parts, including sales tax of $34,878.
The contract increase with the New Flyer of America is requested for $941,900,
including additional authority of $94,170 for the purchase of 10 buses, a contingency of
$390,093 and spare parts of $457,637.
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BudQetlFinancial Impact
Funds of $4,748,450 are available at account C410519.589000 Bus Replacement for the
purchase of ten New Flyer of America buses ($3,900,930 plus a contingency of $390,093) and
spare parts ($422,759 plus sales tax of $34,878).
Prepared by:
Ralph Merced, Maintenance Manager
Approved:
Forwarded to Council:
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~~ePha! .ie Negriff !
Director, Transit Services
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