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. <br /> Mass Transit Memorandum <br /> No. 072709-1 <br /> July 27, 2009 <br /> TO: Honorable Mayor McElroy and City ouncil Members <br /> FROM: Ryan McCrady, City Manager <br /> Paul McChancy, Mass Transit Administratort r t ` <br /> SUBJECT: Purchase Order for Four 35' Heavy Duty, Low Floor Buses <br /> SUMMARY Staff recommends that Council adopt a Resolution awarding a <br /> RECOMMENDATION: purchase order for four 35' heavy duty, low floor buses to <br /> Gillig, Inc. <br /> BACKGROUND: The Transit System has twelve 35' 1993 RTS buses and thirteen 30' <br /> 2001 Gillig buses, and it must replace the older buses that are at the <br /> end of their useful life. Staff has been very satisfied with the <br /> performance and durability of its Gillig buses and therefore wishes to <br /> purchase more Gillig buses. In September, 2008, Decatur ordered five <br /> 30' Gillig buses. Those buses are scheduled to be delivered by August <br /> 15th <br /> Staff found that the Nashville (TN) Metropolitan Transit Authority has <br /> an open, multi-year order for Gillig buses,but does not expect to <br /> purchase as many as they contracted for. Nashville has made the <br /> unused portion of its contract available to other transit systems. Under <br /> Federal Transit Administration(FTA)rules Decatur may purchase � <br /> buses using another agency's contract if the buses we wish to purchase � <br /> are nearly identical to those in the original contract. This is the <br /> process staff used in 2008 to purchase the five 30' Gillig buses that <br /> will be arriving soon. <br /> The attached Gillig"Price Variance" sheets show the differences in <br /> equipment and prices for the Nashville and Decatur buses. The price <br /> per bus varies based on the options that have been selected, and on <br /> changes required by federal regulations. The first item, Engine <br /> Emissions, shows a price increase of$30,000 per bus for the required <br /> 2010 engine air pollution equipment, compared to Nashville's 2007 <br /> engine. The total of all the other variances is a price decrease of <br /> $8,970. The total price, including delivery to Decatur, is $347,627 per <br /> bus. Staff wishes to round this figure up to a"not to exceed"price of <br /> $350,000 to allow for any minor, unforeseen price increases. <br /> The City has been allocated $1,697,301 in American Recovery and <br /> Reinvestment Act(ARRA) capital funds by FTA. Staff has filed a <br /> grant application with FTA for those funds, including $1,400,000 <br /> budgeted for the purchase of four 35' buses. The FTA ARRA grant <br />