HomeMy WebLinkAbout10. 12-435
SEPTEMBER 11, 2012 12-435 RESOLUTION
(CARRIED___6-0_____LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE CIP ADJUSTMENT & ADDITIONAL FUNDING FOR
PURCHASE PURSUANT TO STATE OF MINNESOTA
COOPERATIVE TRANSIT PURCHASE OF TWO BUSES FOR
TRANSPORTATION DEPARTMENT TO NEW FLYER AMERICA,
INC. ($60,000.00)
INITIATED BY: TRANSPORTATION DEPARTMENT
WHEREAS, the Common Council has previously approved replacing two 35’ Transit
buses on a base price through a cooperative purchase program administered by the State
of Minnesota with New Flyer of America, Inc.; and
WHEREAS, costs in addition to the base price are necessary in order to
standardize the two new buses with the Oshkosh Transit fleet; and
WHEREAS, it is necessary to adjust to the CIP to provide for the additional funding.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the 2012 Capital Improvements Budget (Account No. 511-1728-1756-00000
Transit Fund – Motor Buses) be increased in the amount of sixty thousand dollars
($60,000.00) which will be bonded for in 2013 along with the 2013 projects.
BE IT FURTHER RESOLVED that sixty thousand dollars ($60,000) is hereby
appropriated from Acct. No. 511-1728-1756-00000 Transit Fund – Motor Buses for
standardization of buses purchased pursuant to Resolution 12-355 under Section 12-15 of
the Oshkosh Municipal Code through the State of Minnesota Cooperative Purchase with:
NEW FLYER OF AMERICA, INC.
711 Kernaghan Avenue
Winnipeg, Manitoba Canada R2C 3TC
Base Amount: $760,000.00
Standardization: $ 60,000.00
Total: $820,000.00
Of-KO.IH
City of Oshkosh - Transportation Department ON THE WATER
926 Dempsey Trail, Oshkosh,WI 54902 (920)232-5342 (920)232-5343 fax
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Christopher Strong, P.E., Director of Transportation
DATE: September 7, 2012
RE: APPROVE ADDITIONAL FUNDING FOR PURCHASE PURSUANT TO
STATE OF MINNESOTA COOPERATIVE TRANSIT PURCHASE OF
TWO BUSES FOR TRANSPORTATION DEPARTMENT TO NEW
FLYER AMERICA, INC. (+$60,000.00)
Background
At its July 10, 2012 meeting,the Common Council approved a resolution authorizing the City to
enter into a cooperative purchasing agreement for the purchase of two 35' buses from New Flyer
America. The resolution estimated a maximum purchase price of$380,000 per bus, or$760,000
for the two buses. This amount included the standard bus price included in the cooperative
purchasing agreement, with some additional funding in anticipation that some adjustments would
need to be made to have this bus conform to the standards of the rest of our current fleet.
Staff conducted a detailed comparison of the specifications of the standard bus and those of the
rest of our fleet. Upon receiving this comparison,New Flyer estimated that the price per vehicle
would be higher than originally anticipated. Because there may be further price refinement during
the pre-production process, the purchase price of each bus could increase by $30,000, increasing
the total purchase price to $820,000.
Analysis
The largest component of the price increase relates to a technology change in the cooling system
which should lead to long-term improvements in fuel economy. Other changes help promote
standardization with the rest of our bus fleet, which expedites completion of maintenance
activities and helps with training and spare parts inventory requirements.
Fiscal Impact
The $60,000 funding increase is intended to be a ceiling figure that will be sufficient to cover any
other specification changes that may be identified as necessary during the pre-production process.
Staff will continue to work with the vendor on the final specification to ensure that there are no
unnecessary cost additions to the price of the bus.
City of Oshkosh—Transportation Department 1
Approve Additional Funding for Purchase Pursuant to State of Minnesota Cooperative Transit Purchase
of Two Buses for Transportation Department to New Flyer America,Inc. ($60,000.00)/September 7,2012
The additional funding is eligible for Federal and State matching funds through the City's transit
operating assistance grant. Through the matching funds, the City's maximum share of this
$60,000 would be $27,000 (45 percent).
Funding for this item would be charged to account: 511-1728-1756-00000.
Recommendation
Purchasing recommends the Common Council approve the additional $60,000 funding for this
purchase.
Respectfully submitted, Approved:
hristopher Strong, P.E. Mark A. Rohloff
Director of Transportation City Manager
City of Oshkosh—Transportation Department 2