R98-70 AUTHORIZING THE CITY STAFF TO SUBMIT BID ON USED TROLLEY BUS

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COMMUNITY DEVELOPMENT MEMORANDUM 98-53 May 27, 1998 To: Honorable Mayor and City Council Members From: James L. Williams, Jr., City Manager Cecil Collins, Jr., Director of Department of Community Development Robert S. Reed, Mass Transit Administrator Subject: Authorization to Bid on Used Trolley Bus The City of El Paso, Texas is disposing of four (4) 1989 Chance trolley buses and two (2) 1990 Chance trolley buses. All vehicles are equipped with Caterpillar diesel engines and Allison transmissions. The coaches have been used in daily service and reportedly are in very good running condition. Chance trolley coaches are heavy-duty vehicles and normally cost in the $275,000 - $300,000 range when purchased new. The City of El Paso has established a minimum bid of $15,000 and an appraisal places their value at $30,000 - $35,000. Sealed bids will be accepted until Wednesday, June 3rd, 1998 and payment must be made immediately thereafter. Therefore, the City Council is being asked to authorize the submission of a sealed bid, not to exceed $35,000, for the purchase of one of the trolley buses. The vehicles will be inspected by the transit maintenance superintendent before a bid is submitted. If successful in acquiring one of the trolleys, the City should be able to place it into service as a downtown shuttle bus in July, 1998. The City has received federal funds to purchase a new trolley bus and is awaiting approval of matching State funds. It will probably be the first of next year before the new trolley can be received. At that time, the used Chance trolley would be utilized as a back-up vehicle and for charter work. Federal and State funds cannot be spent for the purchase of used equipment. However, mass transit has sufficient monies in the Study Fund to pay for the cost of the trolley bus.