SR-01-08-1980-6ZSanta Monica; .alifornia, December 24, 1979
TO: Mayor and City Council L7
FROM: City Staff AN 8 1080
SUBJECT: AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONTRACT WITH
THE GRUAM9AN- FLXIBLE CORPORATION FOR THE PURCHASE OF ADVANCED
DESIGN BUSES,
Introduction
This report requests that the City Council authorize the City Manager to execute
a contract with the Grumman - Flxible Corporation for the purchase of fourteen
advanced design transit buses and further authorize the City Manager to add a
fifteenth bus to the order if additional funding is made available to the City.
Background
On September 12, 1978, the City Council approved item #6F, authorizing the
submission of a federal grant application to the Urban Mass Transportation
Administration (UMTA) for the purchase of fifteen advanced design buses.
These buses are expected to replace ten buses purchased in 1967 and five
bought in 1968. At the time of delivery of the new equipment, the buses to
be replaced will be fourteen and thirteen years old respectively.
On June 27, 1979, UMTA approved the grant, which with the required 200 local
share provided by Transportation Development Act funds totals $2,175,000.
Subsequently, the City prepared bid documents and called for bids for 15
buses in accordance with federal procurement procedures. Two bids were
received; one from Grumman- Flxible Corporation in the amount of $2,208,646.00,
and the other from General Motors Corporation in the amount of $2,236,229.40.
Both prices are F.O.B. Santa Monica and include tax.
The grant assistance is sufficient to purchase only fourteen buses, as neither
UMTA, nor City Staff, foresaw the extent of the rapid escalation of bus prices
which has recently occurred. Therefore, it is staff's intent to approach the
Los Angeles County Transportation Commission (LACTC) to obtain the additional
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To: Mayor and City Council -2- December 24, 1979
funding necessary to purchase the fifteenth bus and to complete the grant
project.
However, because the price quoted by Grumman - Flxible Corporation, the low
bidder, is good for only sixty days, City Staff has received tentative
agreement from Grumman - Flxible Corporation and from the funding agencies that
it would be proper to award the contract for the fourteen immediately and
authorize the City Manager to add the fifteenth bus to the order if the
appropriate agencies approve the additional funding sought. In any event,
no City general funds will be used.
Alternatives
1. The City Council could reject the bids. Given the rapid escalation of
bus prices, replacing the older equipment in the future will be even
more expensive,
2. The City Council could authorize the City Manager to execute a contract
for fifteen buses. If funding assistance did not materialize, the City
would then be liable to pay for the fifteenth bus from City funds.
3. The City Council could authorize the City Manager to execute a contract
with the Grumman - Flxible Corporation, the low bidder, for the purchase
of fourteen advanced design transit buses and permit the Manager to add
a fifteenth bus to the order if additional funding is made available to
the City.
Recommendation
City Staff recommends that the City Council authorize the City Manager to
execute a contract with the Grumman - Flxible Corporation for the purchase of
fourteen advanced design transit buses and further authorize the City Manager
to add a fifteenth bus to the order if additional funding is made available
to the City.
Prepared by: Jack Hutchison
Bob Ayer
JFH /RLA /cb