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HomeMy WebLinkAboutItem 13 - Shuttle Buses /3 MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER ') MEETING DATE: MAY 19, 2009 SUBJECT: APPROVAL TO PURCHASE FOUR TRANSPORTATION SHUTTLE BUSES FOR THE OPERATION OF A CIRCULATORY TROLLEY SYSTEM RECOMMENDATION: City Council to consider approval of the purchase of four shuttle buses from National Bus Sales through an interlocal agreement with the Houston-Galveston Area Council in the total amount of$377,036. FUNDING SOURCE: Funds are available in account 115-48910-350-7/CVB FundNehicles/Convention & Visitors Bureau/Grapevine Vintage Railroad. BACKGROUND: This purchase will be made through an existing interlocal agreement with the Houston- Galveston Area Council (HGAC) as allowed by Texas Local Government Code, Section 271.102. The Interlocal Agreement and Cooperative Purchasing Agreement satisfy all bidding requirements under the Local Government Code. This request is to approve the purchase of four transportation shuttle buses that will be manufactured by National Bus Sales. The buses will be used for the operation of a circulator trolley transportation system between DFW Airport and Grapevine hotels and attractions. The trolley will operate limited hours and will be used to transport hotel guests and other passengers to Grapevine destinations. Council reviewed the proposed routes and revenue/cost projections and approved the bus shuttle program at the April 7, 2009 Council meeting. The manufacturer of the buses will be National Bus Sales. National Bus Sales has a contract with HGAC as the bus manufacturer. The total cost of the buses will be $649,036. At the end of three years, National Bus Sales has agreed to re-purchase the buses for $272,000 with a mileage cap of 120,000 miles per unit. A cost of .20/mile would be assessed to the City for mileage in excess of 120,000 miles/unit. The total cost to the City including the re- purchase agreement will be $377,036 excluding any mileage overage. May 13,2009(4:56PM) Staff recommends approval of the buses from National Bus Sales in the total amount of $377,036 with approval of the mileage conditions. CD May 13,2009(4:56PM)