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Home My WebLink About03-17-2015 C4 RTA Vehicle AcquisitionCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Daryl Grigsby, Public Works Director Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: ACQUISITION OF SLO RTA’S SURPLUS VEHICLE FOR $1 RECOMMENDATION 1. Authorize the Transit Manager to execute a purchase order and acquire one surplus gasoline cut-away vehicle from the Regional Transit Authority (RTA) and add it to the SLO Transit fleet for a cost of $1 plus any tax and licensing fees. 2. Approve an amendment to the Transit Fund budget to add a CIP appropriation in the amount of $1.00 to allow the vehicle purchase to be recognized for fixed asset tracking purposes. DISCUSSION In 2014, the Atascadero El Camino Shuttle (City of Atascadero) and SLO RTA consolidated services in the North County. One outcome of that consolidation was RTA’s acquisition of the Atascadero fixed route fleet. After integrating the Atascadero El Camino Shuttle service into the RTA Route 9 service, RTA is left with a surplus 2011 Ford El Dorado Aero Elite 29 ft. gasoline cut-away vehicle. With no need for this vehicle RTA is willing to transfer the vehicle to SLO Transit under a partnering and neighboring agency arrangement for $1. Currently, the City SLO Transit fleet is comprised of 30’, 35’ and 40’ vehicles. Staff plans on using this smaller size vehicle as a test on specific routes that have low ridership rates and constrained neighborhoods. Acquiring the vehicle for very little capital investment ($1 USD) will give the City the opportunity to experiment with various routes without having to borrow or lease a similar vehicle. Maintenance cost to service the vehicle can be accommodated within the existing contract amounts with First Transit. The Federal Transit Administration has assigned a 7-year/200,000 mile minimum economically useful life to this vehicle class. The four year old vehicle has accumulated a little more than 100,000 miles with a remaining useful life of at least another 100,000 miles. While the 28- passenger cut-away vehicle is a slight departure from the larger SLO Transit’s traditional fixed- route vehicle, there are some anticipated uses for this type of vehicle as a result of the Short Range Transit Plan update currently underway. Upon acquisition, the vehicle would be branded in SLO Transit insignia (paint or decal), and outfitted with a farebox, Wi-Fi and AVL system before being put into use. SLO Transit already has most of this equipment on hand for the conversion of this vehicle into the SLO Transit fleet. Any incidental costs associated with furnishing this equipment onto the vehicle can easily be absorbed in the Transit Operating budget. 3/17/2015 C4 C4-1 ACQUISITION OF SLO RTA’S SURPLUS VEHICLE FOR $1 Page 2 CONCURRENCES This process is supported by SLO RTA. FISCAL IMPACT SLO Transit is purchasing the vehicle for only $1. The expense has no impact on the General Fund and would be covered solely by the Transit Fund, using deferred revenues from prior Fiscal year(s). Ongoing costs, associated with ownership of this vehicle, are also accounted for. The vehicle needs no significant maintenance, beyond the typical tune-ups, having been maintained by the former transit agency. While these cost are traditionally expected to go up as the vehicle becomes older, the Transit fund’s Preventative Maintenance expenses are expected to go down as three 2001 vehicles are retired later this year. It can also be noted that cut-away vehicles have much lower maintenance costs, compared to fixed-route buses. The replacement of this type of vehicle is uncertain at this time. The purchase of this particularly type of vehicle is not an intended to introduce cut-away vehicles into the fleet mix but rather to use it as part of pilot service associated with the Short Range Transit Plan and/or until ridership grows to support a traditional sized fixed-route vehicle on new routes. If approved, staff will make the CIP request to track the vehicle as Transit inventory. ALTERNATIVES 1. Deny the purchase of the vehicle. This alternative is not recommended because there is an operational need and it can be acquired without fiscal impact to the Transit Fund. ATTACHMENT Attachment 1 – Photos of RTA Surplus Vehicle Attachment 2 - CIP Request - Acquisition of Surplus Vehicle - $1 "T:\Council Agenda Reports\2015\2015-03-17\Vehicle Acquisition - RTA Surplus Vehicle" C4-2 ATTACHMENT 1 C4-3 ATTACHMENT 1 C4-4 ATTACHMENT 1 C4-5 ATTACHMENT 1 C4-6 ATTACHMENT 1 C4-7 ATTACHMENT 1 C4-8 ATTACHMENT 1 C4-9 ATTACHMENT 1 C4-10 ATTACHMENT 1 C4-11 ATTACHMENT 1 C4-12 CAPITAL IMPROVEMENT PLAN - TRANSPORTATION FLEET REPLACEMENT – SLO TRANSIT VEHICLES Attachment 2 Project Description Purchase of RTA Surplus Vehicle will cost: • $1 in FY 14-15 • Adding ancillary equipment (e.g. radios, destination signs, avl, etc.) $10,000  Maintenance/Replacement  New project  Fleet Replacement  New Fleet Request  Council Goal / Measure Y Priority - List: Need and Urgency In 2014 the Atascadero El Camino Shuttle (City of Atascadero) and SLO RTA consolidated services in the North County. One outcome of that consolidation was RTA’s acquisition of the Atascadero fixed route fleet. After integrating the Atascadero El Camino Shuttle service into the RTA Route 9 service, RTA is left with a surplus 2011 Ford El Dorado Aero Elite 29 ft. gasoline cut-away vehicle. With no need for this vehicle, RTA is willing to transfer the vehicle to SLO Transit, under a partnering and neighboring agency arrangement, for $1. The Federal Transit Administration has assigned a 7-year/200,000 mile minimum economically useful life to this vehicle class. The four year old vehicle has accumulated a little more than 100,000 miles with a remaining useful life of at least another 100,000 miles. While the 28-passenger cut-away vehicle is a slight departure from the larger SLO Transit’s traditional fixed-route vehicle, there are some anticipated uses for this type of vehicle as a result of the Short Range Transit Plan update currently underway. Upon acquisition, the vehicle would be branded (paint or decal) in SLO Transit insignia, outfitted with a farebox, Wi-Fi and AVL system before being put into use. SLO Transit already has most of this equipment on hand for the conversion of this vehicle into the SLO Transit fleet. Any incidental costs associated with furnishing this equipment onto the vehicle can easily be absorbed in the Transit Operating budget. The decision for purchasing this vehicle is recommended for the following reasons 1. Purchase of a new version of this vehicle is around $250,000, not including additional equipment costs 2. Lease of a vehicle of this type would cost $x,xxx monthly 3. The vehicle is in the immediately available and in our area 4. There are some anticipated uses for this shorter vehicle to come out of the SRTP process. Operating Program Number and Title: 50700 – Transit Enterprise Fund C4 - 1 3 CAPITAL IMPROVEMENT PLAN - TRANSPORTATION FLEET REPLACEMENT – SLO TRANSIT VEHICLES Attachment 2 Project Phasing and Funding Sources Description of Puchase Unit Replacement Fiscal Year 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 City Fleet Number (TBD) Vehicle Type Cut-Away (Bus) Make Ford Model El Dorado Aero Elite Model Year 2011 Date Entered City Service Odometer Reading at 02-2015 100,000 Replacement Guidelines Target: Years or Mileage 2020 or 200,000 miles Proposed: Years or Mileage 2020 or 200,000 miles Replacement Cost Base Unit Accessories & Other Costs 10,000$ Delivery 1$ Sales Tax Total Replacement Costs 10,001 - - - - Year Totals:10,001 - Note: Final vehicles that will be replace in future year will be determined based upon future replacement and rehabilitation cost analysis of each vehicle needing to be replaced. Detail of ongoing costs and alternatives to ongoing costs including return on investment information: No on-going costs as vehicle maintenance and training (except major engine repairs) is contractor responsibility under current contract. Deny, or defer the request. Deferring replacement of these buses could lead to higher costs for maintenance and operation and impact the purchased transportation contract with the contractor. Additional funds will be needed for increased repairs should replacements be deferred. C4 - 1 4 CAPITAL IMPROVEMENT PLAN - TRANSPORTATION FLEET REPLACEMENT – SLO TRANSIT VEHICLES Attachment 2 Anticipated Vehicle Life Span: 4 years Budget to Date 2014-152016-172016-172019-202020-2021 Total TDA $10,001 $10,001 Total $0$10,001 $0 $0 $0 $0$10,001 Project Funding by Source *Final funding sources will be determined based upon available grant funding from Federal, state and local sources. Reduced / Enhanced Project Alternatives  Alternate project is feasible or advantageous – Possible major bus rehab project to replace engine, transmission and other components estimated @ $225,000 per vehicle. Downside is that alternate fuel or clean diesel technology engines not available due to older design restrictions in engine compartment.  Project can be phased – Number of years for phasing: Bus replacements already spreading over five year Financial Plan to help absorb the impact of vehicle replacements. The buses meet or exceed target age for replacement as recommended by the FTA. Deferring replacements could lead to increased repairs above routine preventative maintenance. The buses could be retrofit to extend their useful life. Purchase of replacement buses has been cost effective for the City rather than major vehicular rehabilitations. Final determination of purchase versus rehabilitation will be made dependent upon amount of grant funding received by the City.  Leasing Alternative: Leasing can be beneficial in some instances for specialty construction equipment or low usage vehicles, although it is not always viable for all vehicles. A comprehensive cost analysis for fleet leasing for transit buses would need to be conducted in order to fully evaluate the cost benefits of this alternative. Project Team Assignment Program Estimated Hours Vehicle Specifications Fleet Maintenance Supervisor & Transit Manager 0 Vehicle Procurement Transit Manager 2 Iinstallation of Equipment & Ready for Service Transit contractor 4 C4 - 1 5 THIS PAGE IS INTENTIONALLY LEFT BLANK