SR 02-28-1989 6L
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Santa Monica, California
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PURCH:EOB:jw
Council Meeting: February 28, 1989
TO:
Mayor and city Council
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FROM: city staff
SUBJECT: Recommendation to Exercise an Option for the Purchase
of Ten Transit Coaches for the Santa Monica Municipal
Bus Lines, Bid Number 2157
INTRODUCTION
This report concerns the award of bid for ten transit coaches in
the total amount of $1,886,550, including applicable sales tax.
These buses will replace ten I3-year old buses in the Municipal
Bus Lines fleet.
BACKGROUND
On March 8, 1988, the City Council awarded Bid #2157 to
Greyhound, Inc. to furnish and deliver ten 51-passenger transit
coaches, based on bids opened on February 16, 1988. As part of
that bid proposal, the City required the bidder to submit firm
prices for additional buses.
This requirement resulted in two
options, each of which can be exercised unilaterally by the City.
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The first ten-bus option may be exercised by the City within one
year of bid award. A second ten-bus option may be exercised by
the City within two years of bid award.
The staff report,
proposing the award of the original ten buses stated that staff
would return to Council at a future time, if the decision was
made to recommend exercise of the options.
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Greyhound, Inc. bid the following prices for the first option of
ten (10) transit buses with tires and ten (10) spare wheels:
Item unit Price Total Price
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Base Bus (without items and $156,220.00 $1,562,200.00
materials for handicapped
6-1/2% Sales Tax* 10,154.00 101,540.00
Items and Materials for 19,131. 00 191,310.00
physically handicapped
Delivery Charge 3,150.00 31,500.00
TOTAL PRICE $188,655.00 $1,886,550.00
* Sales tax does not apply to wheelchair lifts and other items
and materials for the physically handicapped.
The original buses were delivered in November 1988 and have
received a positive reception from both passengers and drivers.
Therefore, staff is recommending that the City Council exercise
the first option to purchase ten additional vehicles of the same
type. staff will return to Council at a future time if funding
is approved in the FY 1989-90 budget to purchase buses, and if
the decision is made to recommend exercise of the second option.
BUDGETARY/FINANCIAL IMPACT
Currently, Transportation Development Act (TDA) funds in the
amount of $2,100,000 have been appropriated for the proj ect in
the FY 1988-89 budget, account number 41-750-658-000-927. The
balance of the funds, beyond those needed to complete the bus
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purchase, will be available for get ready costs, including
installation of two-way radios and fareboxes, and any necessary
inspection services.
RECOMMENDATION
It is recomm~nded that the City council exercise the first option
to Bid #2157, in the total amount of $1,886,550, including tax,
for the purchase of ten transit coaches from Greyhound, Inc.
Prepared by: E. O. Barnes, Purchasing Agent
fbuscc
02/22/89
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