TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:March 14, 2023
SUBJECT: Purchase Used Bus to Support Summer Beach Bus Program RECOMMENDATION:
1. Authorize staff to waive City’s normal equipment purchasing process of Thousand Oaks Municipal Code Sec. 3-10.201 for the purchase of a used motorcoach-type bus to support Summer Beach Bus Program and Special Projects.
2. Authorize staff to open a purchase order in an amount not-to-exceed $150,000.
3. Approve budget appropriation and expenditure in an amount not-to-exceed $150,000 from A/C #651-0000-341-9900 (Transportation Fund, Net Position) to A/C #651-5540-685-8400 (Bus/Equipment Over $5,000).
4. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
$150,000 Increase to FY 2022-23 Transit Program Budget. Funding to come from unallocated Transportation Development Act (TDA) funds. No adverse impact to transit operations budget or transit program support for street and road maintenance. Additional costs for bus maintenance and fuel estimated not to exceed $20,000 annually will be requested during the upcoming biennial budget process.
BACKGROUND:
Thousand Oaks Transit (TOT) was established in 1981 and provides fixed route and commuter bus service, Senior Dial-A-Ride (DAR), and Americans with Disabilities Act (ADA) paratransit services to residents of Thousand Oaks. In addition, TOT provides services under contract to the City of Moorpark, City of
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6 Westlake Village, City of Agoura Hills, and County of Ventura for Oak Park and select unincorporated areas, and East County Transit Alliance’s (ECTA) InterCity DAR service.
Since 2010, except when interrupted by the COVID-19 pandemic, TOT has operated the Summer Beach Bus program, which provides transportation from Thousand Oaks to Zuma Beach in Malibu. The Beach Bus program is largely grant-funded using federal funding sources set aside for the program. Additionally, the Transit Program routinely receives requests from other City departments, governmental, and non-profit organizations to provide transportation service for special events, facility tours, employee orientations, etc.
Since the inception of the Summer Beach Bus program, the City has relied almost exclusively on vendors other than our contracted transit operator, MV Transportation, Inc. (MV), to provide the service. Both the City and MV lack the necessary vehicles to effectively operate the summer program. The City’s current fleet of transit buses are not suitable for this particular use.
The City has leased vehicles for the program on a temporary but expensive basis for as much as $45,000 for a 10-week period. Staff has also solicited proposals from qualified operators with available vehicles. However, in three of the last four years that a Request for Proposal has been issued, the City has not received a single qualified proposal. The lack of response has forced staff to seek out a qualified vendor and negotiate terms which are not as favorable to the City as compared to the cost if MV was providing the service and a vehicle was available.
DISCUSSION/ANALYSIS:
Since the Summer Beach Bus program is only offered for up to 10 weeks and other requests for transportation support are infrequent, it is not financially prudent or practical to purchase a brand-new vehicle to support these programs. Costs for a new motorcoach-type bus would exceed $600,000.
There are, however, reasonably priced used buses on the market and staff are confident that a well-maintained defect-free bus that meets the City’s needs can be secured for less than $150,000. Staff would seek a vehicle with seating for at least 44 passengers, that is less than 10 years old, meets all applicable California Air Resources Board emission requirements, and is under 250,000 miles. A well- maintained motorcoach has a useful life exceeding 500,000 miles. A used motorcoach meeting the City’s criteria should be capable of supporting the program for eight to ten years before a replacement would be needed. By purchasing used, should the City decide to discontinue the Summer Beach bus program at a later date, the vehicle can be sold at a minimal loss to the City as it will have already been substantially depreciated.
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6 The bus would also give the City an important back-up vehicle to use in emergencies. The purchase of the bus would not present any challenge to Fleet staff to maintain as the powertrain and systems will be similar to existing transit buses and other heavy vehicles operated by the City.
By having a vehicle capable of providing the service in support of the Summer Beach Bus (and other special programs and projects), staff can then use MV drivers to provide service at our regular contracted rate, a substantially reduced cost over outside contractor rates, and with the reassurance the program can be operated effectively. Staff estimates directly operating the Summer Beach Bus will save a minimum of $30,000 annually through savings in the additional insurance costs required of past contractors ($27,000 annually) and associated overhead.
Since our existing contractor will be directly operating the service there are no increased overhead and insurance costs and fuel will be at the City’s lower cost basis. The overall daily cost to provide the service is expected to be at least half of what prior contractors have charged on a daily basis. Additionally, with a vehicle in hand and MV drivers and staff available to operate it, the program can be advertised months instead of weeks in advance, boosting community awareness and ridership.
The Summer Beach Bus program cannot justify the cost of a new bus or provide the necessary lead time that may be required to secure a new vehicle. Therefore, the purchase of a used vehicle is the most time and cost-effective solution.
Purchasing a used bus is not practical using the Request for Bid process as the inventory is highly variable from dealership to dealership and due to high demand for used buses, desirable inventory sells quickly. The dealers are unwilling to “hold” inventory to allow the City to go through its usual and customary capital equipment purchasing process. Therefore, for the reasons stated above, including variations in inventory, limited inventory availability, and unwillingness of dealers to hold vehicles, staff is requesting a waiver of the City’s equipment purchasing process of TOMC Sec. 3-10.201 to acquire a used motorcoach-type bus and authorization to open a purchase order in anticipation of a vehicle coming available. Pursuant to TOMC 3-10.501, purchasing procedures may be waived with City Council approval due to unforeseen circumstances that justify an exception.
Pending City Council’s approval to waive the City’s normal equipment purchasing process, staff will contact multiple reputable used bus suppliers throughout the western United States to identify a reasonably priced motorcoach-type bus available for purchase. Once an available and appropriate bus is identified, the City will negotiate a purchase price and issue a purchase order to secure the vehicle.
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6 COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
G. Continue City's commitment to community and cultural programs and services (such as Performing Arts/Theatres, Libraries, TOTV, Visual Arts, Youth and Senior Programs).
PREPARED BY: Mike Houser, Transit Program Manager
DPW:9401-10\mh\\Council\Purchased Used Bus to Support Summer Beach Bus Program.docx