ITEM 6-I
Council Meeting: October 10, 1989
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Exercise an Option for the Purchase
of Ten Transit Coaches for the Santa Monica Municipal
Bus Lines, Bid #2157
Introduction
This report concerns the award of bid for ten transit coaches in
the total amount not to exceed $1,980,899.50, including
applicable sales tax. These buses will replace ten 16-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 could be exercised unilaterally by the
City. 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 two
options. On February 28, 1989, the City Council authorized staff
to exercise the first option. According to the bid, the second
10-bus option can be exercised by the City before March 8, 1990.
Greyhound, Inc. bid the following prices for the second option of
ten (10) transit buses with tires and ten (10) spare wheels:
ITEM UNIT PRICE TOTAL PRICE
Base Bus (without items and
materials for handicapped $164,030.00 $1,640,300.00
6-1/2% Sales Tax 10,661.95 106,619.50
Subtotal $174,691.95 $1,746,919.50
Items and Materials for
physically handicapped 20,088.00 200,880.00
Delivery Charge 3,310.00 33,100.00
TOTAL $198,089.95 $1,980,899.50
The original buses were delivered in November 1988, and have
received a positive reception over the past year from both
passengers and drivers. The buses purchased as part of the first
option will soon be delivered for service. Because of the good
service record enjoyed to date, staff is recommending that the
City Council exercise the second option to purchase ten
additional vehicles of the same type.
Budget/Financial Impact
Currently, Transportation Development Act (TDA) funds in the
amount of $2,205,000.00 have been appropriated for the project in
the FY 1989/90 budget, account number 41-750-658-23390-8931-
99117. The balance of the funds, beyond those needed to complete
the bus purchase, will be available for get ready costs,
including installation of two-way radios and fareboxes, and
inspection services.
Recommendation
It is recommended that City Council exercise the second option to
bid #2157, in the total amount not to exceed $1,980,899.50.
including applicable sales tax, for the purchase of ten transit
coaches from Greyhound, Inc.
Prepared By: E. O. Barnes, Purchasing Agent
Pam Wortham, Assistant Purchasing Agent