HomeMy WebLinkAbout09. 21-543NOVEMBER 9, 2021 21-543 RESOLUTION
(CARRIED___6-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: APPROVE AGREEMENT WITH KOBUSSEN BUSES LTD FOR
INTERCITY BUS SERVICES FOR GO TRANSIT (2022: $190,200;
2023: $194,100; 2024: $198,600)
INITIATED BY: PURCHASING DIVISION
WHEREAS, the City of Oshkosh in partnership with Winnebago County has
contracted with a private vendor to provide intercity bus service between the cities of
Oshkosh and Neenah; and
WHEREAS, the current agreement expires in December 2021; and
WHEREAS, the City of Oshkosh requested proposals to continue this service for a
three year term with optional renewals; and
WHEREAS, there was one proposal submittal which staff reviewed and determined
that this proposal meets the requirements of the request for proposals and is reasonable.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the appropriate City officials are hereby authorized directed to enter into an
appropriate agreement with Kobussen Buses LTD for Intercity Bus Services for GO Transit
for 2022-2024 in accordance with the advertised Request for Proposals and proposal
submitted by Kobussen Buses LTD and that said City officials are authorized and directed
to take those steps necessary to implement the terms and conditions of the Agreement.
Acct. No. 511-1728-6449-00000 Purchased Transportation
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Jon G. Urben, General Services Manager
DATE: November 2, 2021
RE: Approve Agreement with Kobussen Buses LTD for Intercity Bus Services for GO Transit
(2022: $190,200; 2023: $194,100; 2024: $198,600)
BACKGROUND
In partnership with Winnebago County, the City of Oshkosh contracts with a private vendor to provide
daily (Monday-Saturday) intercity bus service between the cities of Oshkosh and Neenah. The intercity
bus service is called Route 10 and has been running since 2002. The current 5-year contract with
Kobussen Buses LTD expires on December 31, 2021.
ANALYSIS
In preparation for this procurement, Transportation and Purchasing developed a request for proposal
(RFP) to solicit contractors to provide intercity city bus services. The RFP included requirements for
drivers, vehicles, radio communication, service standards and federal regulatory compliance. Proposal
requests were sent to vendors who were known bus service providers. The RFP included an initial three
year term with the option for two, one-year renewals. In addition, the RFP document was advertised in
the local paper and posted online on Demandstar and the State of Wisconsin’s Vendornet. Proposals
were due on October 21, 2021. Only one proposal was received from Kobussen Buses LTD. Staff review
concluded Kobussen’s proposal met the minimum requirements necessary to move forward in the
evaluation process.
Transportation and Purchasing staff reviewed the proposal received from Kobussen Buses LTD and
concluded they could effectively provide the service based on their written responses. Additionally,
Kobussen has satisfactorily performed the service under the current agreement. The RFP cost proposal
form requested rates per revenue hour and/or revenue mile and any escalator clauses applicable for years
2-5 of the contract term. A price analysis was used to determine price reasonableness by comparing the
negotiated rate to other contract rates from similar bus services in the area. Staff reviewed rates for bus
service contracts with Waukesha Metro – Route 79, Waukesha Metro Route 901/904/905, and Washington
County Commuter Service into Milwaukee. The cost of the Waukesha Metro Routes were $203.43 and
$177.60 per revenue hour respectively. The Washington County Commuter Service rate per revenue hour
was $200.00. The negotiated rate of $58.01 was below the rates reviewed. Years 2-5 of the cost proposal
also included an annual consumer price index (CPI) adjustment (minimum increase of 2%) and a monthly
fuel adjustment set according to fuel cost changes. Each adjustment will be based on data provided by
the U.S. Bureau of Labor Statistics. An increase in funding from Winnebago County was included in the
2022 budget anticipating increased costs for this service.
FISCAL IMPACT
The Transit Utility budgeted $179,200 for this service in A/N#: 511-1728-6449-00000 (Purchased
Transportation) of their 2022 operating budget. The estimated cost for this service for calendar year 2022
would be $190,200. Federal and state grant funding would cover approximately 53.5% of the service cost
($101,757); passenger fares cover about 11% ($20,922); Winnebago County aid covers 34% ($65,000) and
the local city share will be less than 2% ($2,521). The estimated cost for this service for calendar year 2023
would be $194,100, and for 2024 would be $198,600 with similar federal and state grant funding to offset
the costs.
RECOMMENDATION
Purchasing recommends that the Common Council award this three-year agreement to Kobussen Buses,
LTD, W914 County Road CE, Kaukauna, WI 54130 for estimated costs of $190,200 in 2022, $194,100 in
2023 and $198,600 in 2024. If there are any questions about this recommendation please contact
Transportation Director Jim Collins or myself.
Respectfully Submitted, Approved:
Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager