Title
Regional Transit System (RTS) Procurement of Buses (Federal Assets) and Components from the Central Florida Regional Transit Authority (LYNX) (B)
This item is a request for the City Commission to approve the procurement of buses, paint services and parts inventory from the Central Florida Regional Transit Authority (LYNX).
Explanation
The Regional Transit System (RTS) fixed route fleet consists of 129 transit buses. Nearly 43% (55 buses) of this fleet exceeds their useful life expectancy. RTS purchases new buses when funding is available and acquires used buses and components when it is not.
The Central Florida Regional Transit Authority (LYNX) desires to transfer eleven (11) diesel powered transit buses and components to RTS. In order to maintain service levels and manage fleet costs, RTS would like to acquire these buses. The buses are 2006 and 2007 Gillig buses that are 40’ in length. The aforementioned federal assets are in good condition and can be placed into service with minimal maintenance. This is similar to a bus conveyance RTS received from LYNX in 2009, 2010, and 2014.
All 11 buses come equipped with Internal Destination Signs that have an FTA value of approximately $1,448 each. LYNX desires to transfer the remaining balance of the federal interest totaling $15,933.30 for these signs to RTS at no cost.
City Commission approval is required to obtain these federal assets in addition to the approval from the FTA. Ten (10) diesel buses are being transferred rather than sold because the fair market value of $6,500 per bus is in excess of $5,000 and would have to be remitted to the FTA. The remaining balance of the federal interest in these ten (10) buses totaling $65,000 would also be transferred to RTS at no cost as an FTA grantee.
One (1) retired bus has been appraised at a value of $3,600 which includes the value of the components installed on it. RTS will pay LYNX $3,600 for the full fair market value of this one (1) bus. In addition, Gainesville will pay LYNX $11,989.32 to paint the exterior of 7 buses. RTS recommends the purchase of the paint services & materials as they are both offered at 35% of fair market value.
Fiscal Note
The Internal Destination Signs and ten (10) Diesel Buses will be transferred to RTS at no cost. The Federal interest remaining in the one (1) Diesel Bus is $3,600 and would be paid to LYNX by RTS. LYNX has authorized the transfer of the aforementioned assets to RTS pending FTA approval. The cost for painting the buses including materials is $11,989.32. Funds are available in the FY16 budget for the purchase of the buses and painting services totaling $15,589.32.
Recommendation
The City Commission: 1) approve the transfer of eleven (11) Gillig buses and components from Central Florida Regional Transit Authority (LYNX) to the City of Gainesville Regional Transit System (RTS) for a cost of $3,600; 2) authorize painting services in the amount of $11,989.32 as part of the aforementioned bus acquisition from Central Florida Regional Transit Authority (LYNX); and 3) authorize the City Manager or his designee to execute any documents necessary to facilitate this transaction, subject to approval by the City Attorney as to form and legality.