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SR-08-12-1980-6SSanta Mon, California, July 31, 1980 TO: Mayor and City Council AUG 1 2 1980' FROM: City Staff SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT WITH ATE MANAGEMENT AND SERVICE COMPANY FOR NEW BUS INSPECTION SERVICES Introduction This report recommends authorizing the City Manager to enter into the attached professional services contract with ATE Management and Service Company for the inspection of fifteen buses to be assembled by the Grumman - Flxible Corporation early next year. The Urban Mass Transportation Administration (UMTA) encourages transit operators to retain production line inspection firms to ensure the qual- ity of buses purchased with the assistance of UMTA funds. Background On January 8, 1980, the City Council awarded a contract to the Grumman - Flxible Corporation for the purchase of fifteen advance design transit buses. At the present time, Grumman - Flxible estimates that construction of these buses will begin in January 1981. To assist transit properties in obtaining quality transit vehicles, UMTA en- courages them to contract for production line inspection services. UMTA will fund 80% of this cost. City staff requested proposals from four qualified firms. ATE Management and Service Company was the sole respondent. The City has utilized the services of ATE in inspecting the previous order of 32 Grumman - Flxible buses and has found their work to be satisfactory. The total amount of the contract is $12,883, eighty percent of which will be funded by an approved UMTA grant. The 20% local share will come from Trans- portation Development Act (SB 325) funds which have been allocated for this purpose. No City general funds will be required. 6.S AUG 1 2 1580 TO: Mayor and City Council Page Two Recommendation It is recommended that the City Manager be authorized to execute the attached contract with ATE Management and Service Company for professional new bus in- spection service of the City's fifteen buses to be built by the Grumman - Flxible Corporation in early 1981. Prepared by: J. F. Hutchison Director of Transportation R. N. Aronoff Purchasing Agent Reference: Contract No. 3545 (CCS)