Title
Purchase of Federal Assets from Palm Beach County Transit (Palm Tran) to the Regional Transit System (RTS) (B)
This item is a request to authorize the City Manager to execute an Agreement between the City of Gainesville Regional Transit System (RTS) and Palm Beach County Transit (Palm Tran) to purchase Federal Assets.
Explanation
The Regional Transit System (RTS) fixed route fleet consists of one hundred five transit buses. Eighteen percent of this fleet exceeds their useful life expectancy. In order to maintain service levels and manage fleet costs, RTS is purchasing new buses as funds become available. Palm Tran has recently acquired new buses and desires to sell eleven Gillig low floor heavy-duty diesel powered transit buses from their current fleet to RTS. These buses are one (1) 2000 Gillig low floor 40' bus, one (1) 2000 Gillig low floor 35' bus, and 9 (nine) 2001 Gillig low floor 35' buses that have reached their useful life expectancy. These assets are in good condition and can be placed back in service with minimal maintenance. The addition will allow RTS to retire buses that are 1997-year models and a burden to the system to keep in service.
The Federal Transit Administration (FTA) requires a fair market price analysis that was performed by Palm Tran staff. The fair market price averaged out to $4,194 per bus or $46,134 for all eleven buses. RTS Maintenance staff inspected the mechanical condition of the buses and believes that the price is acceptable. City Commission approval is required in order to accept these federal assets.
Fiscal Note
Funding for these buses is included in the RTS FY12 capital budget.
Recommendation
The City Commission authorize the City Manager to execute an agreement with Palm Beach County Transit (Palm Tran) to purchase the Federal Assets, subject to approval by the City Attorney as to form and legality.
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