TO:
Honorable Mayor and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Richard Gill, Parks & Recreation Director
Bruce Moe, Finance Director
Eve Kelso, Recreation Services Manager
Gwen Eng, General Services Manager
SUBJECT:Title
Purchase of One Replacement Dial-A-Ride Paratransit Vehicle from Hoglund Bus Company in the Amount of $69,240; Transfer of $75,000 from Unreserved Measure R Fund Balance to Proposition A Fund; Appropriate $75,000 from Proposition A Fund.
APPROVE; TRANSFER; APPROPRIATE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
a) Waive formal bidding per Municipal Code Section 2.36.150 (cooperative purchasing);
b) Authorize the City Manager to purchase one replacement Dial-A-Ride paratransit vehicle in the amount of $69,240 from Hoglund Bus Company;
c) Approve a transfer of $75,000 from Unreserved Measure R Fund balance to the Proposition A Fund;
d) Appropriate $75,000 from Proposition A in order to purchase and equip the vehicle.
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FISCAL IMPLICATIONS:
Funds totaling $65,000 were budgeted in the fiscal year (FY) 2012-2013 Fleet Management Fund to purchase and equip this vehicle. However, this allocation more appropriately should come from the Proposition A Fund which is the source of funding for Dial-A-Ride operations. As a result, staff is recommending that the City Council appropriate the necessary funds ($75,000) from Proposition A. However, existing service level coupled with flat revenues have caused the Proposition A Fund to be in a deficit position with no fund balance upon which to draw for this needed purchase. In fact, the FY 2012-2013 budget already includes a fund transfer of $70,092 from the Measure R Fund to support Proposition A activities including Dial-A-Ride operations.
Measure R funding is the result of a countywide transportation sales tax measure approved by the voters in 2008. It can be used for such purposes as street maintenance and repairs. It can also be used for many of the same purposes for which Proposition A funds are utilized, including Dial-A-Ride services. As a result, and due to the shortfall of Proposition A funds, staff is recommending that Measure R funds be transferred to Proposition A to complete the purchase. The transfer is necessary so that expenditures for Dial-A-Ride are appropriately captured in the Proposition A Fund even if the source of funds is elsewhere.
Staff considered other funding sources, including exchanging with another city, General Fund monies for discounted Proposition A funds (a common, allowable practice); however, staff was not able to locate any agencies interested in such an exchange at this time. As a result, staff is recommending the use of Measure R funds for this purchase.
The total cost to purchase and equip this unit is $75,000; $69,240 for the vehicle and $5,760 for equipment. The current balance in the Measure R fund is $779,789. This transfer will reduce that amount to $704,789.
DISCUSSION:
The FY 2012-2013 budget includes the replacement of 61 vehicles in the City’s fleet. The list includes a wide variety of vehicles that need to be replaced in order to maintain service levels, reduce repair costs and provide for cost-effective fleet operations. The list represents several “catch-up” years when the fleet was not actively replaced due to budget constraints. Where possible and practical, alternative fuel vehicles have been selected. For this requirement, there are no practical alternative fuel vehicles that meet our paratransit needs.
This recommended purchase is for one replacement Dial-A-Ride vehicle, an 8-passenger paratransit vehicle. The City maintains a fleet of three Dial-A-Ride buses and one van. Three units are typically in operation during peak periods. If a vehicle is in for scheduled maintenance, or for unscheduled repairs, service may be affected. This unit will replace the existing van.
The current unit, purchased in 2004, has accumulated over 120,000 miles. It is in need of a replacement wheelchair lift due to mechanical problems, and is no longer economically feasible to maintain due to age and mileage.
Staff reviewed the various models of small paratransit vehicles available in the market. This vehicle from the Hoglund Bus Company was selected based on the following criteria: side entry for wheelchair users, which is safer than rear; adequate seating capacity to meet ridership demands; a vehicle size suitable to navigate narrow streets and parking lots with weight and/or height restrictions; an effective layout that maximizes access, headroom and legroom for passengers; and local service facilities for repairs and warranty work.
Whenever practical, the City “piggybacks” onto contracts which are economically advantageous. Piggybacking is the extension of pricing, terms, and conditions to other governmental agencies at the mutual consent of all parties. This is permissible under the City’s Municipal Code, section 2.36.150. In this case, Hoglund Bus Company has offered the City pricing from the Minnesota Department of Transportation (MnDOT) Cooperative Purchasing Venture (CPV). MnDOT is a state transit agency that competitively solicits bids on a wide variety of transit vehicles. As the lead agency on the bid, MnDot, solicited bids and made multiple awards for accessible paratransit vehicles on behalf of 1,000 member agencies nationwide. The awards were based on varying models and specifications.
Hoglund Bus Company was the lowest bidder for the model specified by the City of Manhattan Beach. Because of the pricing and structure of the competitive bid and resulting contracts, staff believes that the MnDOT CPV pricing is the best attainable that meets the City’s needs. As a result staff recommends purchasing the paratransit vehicle from Hoglund Bus Company.
The original budgeted amount of $65,000 (incorrectly allocated in the Fleet Fund) is not sufficient to effect the purchase. That amount was based upon replacing the existing unit with the same make and model vehicle; however, that van is no longer available. In addition, a new seat belt law is in effect which reduces seating capacity in this size van, requiring a larger vehicle to obtain adequate seating capacity. These issues resulted in a total cost above the original budget (in the Fleet Fund) of $10,000 ($4,240 for the vehicle and $5,760 for graphics and back-up camera). In order to effect the purchase the required funds ($75,000) need to be transferred from Measure R (to Proposition A) and appropriated from Proposition A.
The requested vehicle was selected as the best solution for the City’s needs. Based on this available piggyback opportunity, staff recommends City Council authorize the City Manager to purchase one paratransit vehicle from Hoglund Bus Company in the amount of $69,240. If this purchase is approved, the existing unit will be retired and sent to auction. The new vehicle will arrive in approximately three months.
CONCLUSION
Staff recommends that the City Council:
a) Waive formal bidding per Municipal Code Section 2.36.150 (cooperative purchasing);
b) Authorize the City Manager to purchase one replacement Dial-A-Ride paratransit vehicle in the amount of $69,240 from Hoglund Bus Company;
c) Approve a transfer of $75,000 from Unreserved Measure R Fund balance to the Proposition A Fund;
d) Appropriate $75,000 from Proposition A in order to purchase and equip the vehicle.