STATEMENT OF ISSUE
StarMetro requests authority to purchase up to three (3) buses and related equipment at a cost of approximately $1.1million from two approved federal grants, FL-90-X646 (5307 Capital for FY2007), and FL-95-X006 (Flex funds for Transit).
This issue is time sensitive and purchase order is needed by March 31, 2009 in order to meet the deadline for honoring manufacturing slots with the Gillig Bus Corporation. The aforementioned bus procurement is contingent upon the release of these funds.

RECOMMENDED ACTION
Option 1 – approve purchase of up to three (3) buses and related equipment with approved federal grants.

FISCAL IMPACT
There will be no fiscal impact to the City as this purchase is funded 100% with federal funds from approved grants. The Office of Budget and Policy has reviewed this item, and it is in compliance with City guidelines.

Ronald Garrison, Executive Director, StarMetro

Anita Favors Thompson, City Manager

For information, please contact: Ralph Wilder, Superintendent of Maintenance, ext. 5217.

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
For StarMetro, the purchase of replacement buses is a high priority. StarMetro has a fleet of seventy-three (73) buses providing service to the City of Tallahassee. Twenty-nine (29) of these buses have been in operation since 1994 or 1996 and have logged over 500,000 miles each. The manufacturer no longer supplies parts for these buses, thereby increasing the cost of maintenance and the difficulty of acquiring parts in the near and long-term future. StarMetro lacks sufficient funding to immediately acquire all twenty-nine (29) buses and is requesting authorization to issue purchase orders for up to three (3) buses and related equipment from these approved federal grants.

Gillig Bus Corporation was selected by the Florida Consortium through a competitive process in compliance with FTA regulations.

CHARITABLE CONTRIBUTIONS
The funding is from the Federal Transit Administration; therefore, charitable contributions are not applicable.

OPTIONS
1. Approve purchase of up to three (3) buses and related equipment with approved federal grants.

Pros: Realized cost savings on fuel expenditures, part acquisitions, preventative maintenance, savings by purchasing at today’s price verses a substantially higher price in the future, improved StarMetro image and improved customer satisfaction with newer/more reliable/more comfortable/better looking buses. The newer buses would produce substantially lower emissions.

Cons: The need to obligate limited future 5307 funds for bus purchases.

2. Do not approve and provide alternative direction to staff.

Pros: Funding could be used for other transit capital projects.

Cons: Pros identified, under Option 1, above would not be achieved, and many, if not all of the current 1994 and 1996 buses would incrementally be taken out of service as availability of parts decreases.

ATTACHMENTS/REFERENCES
None