The URL can be used to link to this page

Home My WebLink AboutReso 2023-3474RESOLUTION NO. 2023 -� A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, RATIFYING AN INCREASE IN SPENDING AUTHORITY WITH TEXAS BUS SALES FOR THE PURCHASE OF A 2020 ELDORADO AEROELITE SHUTTLE BUS, IN AN AMOUNT NOT TO EXCEED EIGHT THOUSAND ONE HUNDRED TWENTY- SEVEN DOLLARS AND FORTY CENTS ($8,127.40); AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on November 191h, 2020, via Resolution No. 2020-3134, the City Commission of the City of Sunny Isles Beach ("City") approved the purchase of a 2020 Eldorado Aeroelite Shuttle Bus ("Bus"), in an amount not to exceed $160,631.00; and WHEREAS, on December 17, 2020, via Resolution No. 2020-3153, the City Commission approved Resolution No. 2020-3134 to reflect Texas Bus Sales ("Vendor") as the correct vendor; and WHEREAS, the Vendor has notified the City of significant delays in production and manufacturing of the Bus, and of a price increase of $8,127.40; and 'WHEREAS, to avoid further delays, the City Manager has determined that it is in the best interest of the City to proceed with the purchase of the Bus and authorize an increase to the Purchase Order issued to the Vendor; and WHEREAS, the City Commission wishes to ratify the increase in spending authority with the Vendor for the Bus, in an amount not to exceed Eight Thousand One Hundred Twenty - Seven Dollars and Forty Cents ($8,127.40). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Authorization of Purchase. The City Commission hereby ratifies the increase in spending authority with Texas Bus Sales for the purchase of a 2020 Eldorado Aeroelite Shuttle Bus, in an amount not to exceed Eight Thousand One Hundred Twenty -Seven Dollars and Forty Cents ($8,127.40). Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 3. Effective Date. This Resolution shall become effecti up -o adoption. PASSED AND ADOPTED on this 16th day February 20 3. Larisa Svechin, Mayor @BCL@ECOB5CF2.doc Page 1 of 2 ATTEST: APPROVED AS TO FORM AN. LEGAL F�FICIENCY: Mauri io Be ancur, MC, City Clerk Valerie Vicente, City Attorney Moved by:L Seconded by: 'q7 ��C'sE'# Vote: Mayor Svechin Vice Mayor Joseph Commissioner Lama Commissioner Stuyvesant Commissioner Viscarra a./ (Yes) (No) (Yes) (No) (Yes) (No) (Yes) (No) (Yes) (No) @BCL@ECOB5CF2.doc Page 2 of 2 t Bus Sales 00 Friday, July 15, 2022 Jorge de la Nuez Transportation Manager Transportation Trust City of Sunny Isles Beach 18070 Collins Avenue, 3rd Floor Sunny Isles Beach, Florida 33160 i delanuezna.sibfl. net Dear Jorge: This letter is in reference to the delivery time of Shuttle Bus that you have on order with Texas Bus Sales. Between the time of the order submittal, there have been very significant chassis delays with the chassis manufacturer. These delays have obviously made it impossible for Texas Bus Sales and Forest River to meet the stated delivery time. The delivery time was stated in good faith but, due these circumstances which are beyond our control, the lead time for the delivery of the vehicles could be as long as another 270 days. Here is why, As the world shut down because of the COVID-19 pandemic, many factories closed with it, making the supplies needed for semiconductor chip manufacturing unavailable for months. Increased demand for consumer electronics caused shifts that rippled up the supply chain. Auto manufacturers, like Ford, have to predict the amount of chips they will need to produce their cars, trucks and specialty vehicle chassis and order them in advance from one of the chip manufacturers. As of now, it can take at Least half of a year for a chip order to come in. The current demand for chips is so great that manufacturers can't make enough chips to meet it at this time, meaning consumers are seeing higher prices for less goods. Bad decisions by the auto industry also added to the shortage. When COVID started, many companies canceled their orders for chips because they assumed the economy was about to take a lengthy hit. Auto manufacturers in particular cancelled orders, so chip companies switched to making chips for consumer products, attempting to meet the explosive demand caused by the pandemic. Having retooled their plants to make chips for consumer goods instead of cars, a shortage of car chips ensued. The chip shortages that are causing chassis' shortages were devastating to many of the bus manufacturing plants. After being in central Kansas since the 1950s, ElDorado Bus, once known as "AMERICA'S BEST BUS VALUE" closed its facility in Salina. Their massive plant was the most advanced shuttle plant in America. The closure was because of a reduction in business caused primarily by the COVID-19 pandemic. A portion of ElDorado's production was moved to the Champion Bus plant in Imlay City Michigan. This plant had a 194,000 -plus square foot building and property encompassing 73 acres. In 2020, ELDorado Bus and Champion Bus were sold by REV Group to Forest River, a Berkshire Hathaway subsidiary. At the time of the acquisition, Forest River had high praise for Champion and ELDorado's "historic and iconic brands." In December 2021 Forest River's closed the Champion Plant saying the ongoing shortage of bus chassis within the automotive industry was the sole reason for shuttering the plant. As a result, all operations in Imlay were consolidated and moved to Forest River's existing facilities in Elkhart, Indiana. Ultimately about eight Bus Manufacturing Plants that employed almost 4,000 employees have been reduced to one plant with about 250 employees. TRANSPORTATION SOLUT/ONS, EXPERIENCE IS THE DIFFERENCE www.texasbussales.com 1605 West 34th Street - Houston, Texas 77018 -713-681-3600 1210 Hallmark Street — San Antonio, Texas 78216 -210-349-6500 sBus Sa/es Chassis availability is driving the whole decision on plant closures. Bus Manufactures are getting less than 30 percent of the chassis needed on a monthly basis. Company officials believe the supply issues aren't a short-term problem. Analysts project the chassis shortage will continue well past 2022 and Long into 2023. The chassis shortages continue to grow the production backlog which is now in excess of 5,500 buses. The backlash of the COVID-19 pandemic has caused massive commodity price increases that cannot be absorbed by the bus manufacturers and are in turn being passed along to the consumer. Attached is a Forest River Memo highlighting the commodity increases. The pricing has substantially increased due to market conditions. As a result we are asking you to look the revised HGAC Pricing Proposal and amend your Purchase Order to the revised price. We understand and appreciate the frustration this causes, Texas Bus Sales is in the same situation with having to make adjustments. Like the delivery time the price was stated in good faith but, due these circumstances and current conditions which are well beyond our control we have to implement this new pricing. You certainly have the option of cancelling the order and re -ordering or rebidding. With the massive back log that exist now that would only further delay your order. I sincerely apologize for the inconvenience this causes you. As questions arise, please feel free to contact me at 713-681-3600 extension 225 or darryl.r@texasbussales.com Sincerely, Texas Bus Sales, Inc. President TR.4NSPORTA TION SOL UT/ONS, EXPERIENCE IS THE DIFFERENCE www.texasbussales.com 1605 West 34th Street - Houston, Texas 77018 -713-681-3600 1210 Hallmark Street — San Antonio, Texas 78216 -210-349-6500 4 C T E FOREST RIVER BUS 2367 CENTURY DRIVE • GOSHEN, INDIANA 46528 - 1.800.348.7440 Dear Forest River Bus Dealer, As you have likely heard, we continue to receive significant price increases on a daily basis. Commodity pricing seems to be the most effected. We have received 25 increases in the past two weeks alone. For that reason, we have no choice but to increase the cost on our base bus, seating and air conditioning options. I thought it would be helpful to show you examples of correspondences that we have received from our vendors. The following are actual portions of emails that we have received and are typical of what we are receiving from material vendors on a daily basis. As you can see many of the metal and commodity related pricing notices are drastic and include comments like, "...pricing will not be confirmed until day of shipment" and "...this pricing is only valid until noon tomorrow." The steel we ordered a while back has arrived. Or suppUgr doesnY give the final 'price untie i possible. I wanted yo equates to 197 .1ncr ise of the rapid movement in, the market] heir dock. I want to be as transparent as en't sticker shocked when we ship, this With the continued increasing demand for all raw materials, we are continuing to have the same increased supply and delivery issues as shared several weeks ago in the last market update. The;past two we the raw EPS material manafactures have published that supply is going to continue to tighten to the point that demarld.will not be fully met fn the coming 'weeks; Add to this the global and Asian demand is putting further pressure on supply which is impacting pricing levels, yet another price increase taking effect on Oct 4, 2021. We are working daily with our 3 suppliers to maintain supply and keep deliveries up for you. Please see attached current price correction on this P0, this is a 6896 increase on stanchion` tubing Jay, I was just informed by XXXXXX that our windows. -will more than double in price effective', October 4th. ou 'T M FOREST RIVER BUS 2367 CENTURY DRIVE • GOSHEN, INDIANA 46528 • 1.800.348.7440 Attached, you wilt find your current pricing document. I have also included the graph that shows the weekly price history. All of the mills that we purchase our Douglas Fir panels from are off the market imported panels (like your Radiata Pine) are just as tight At this point right We have received the updated mill pricing. Please note, the pricing has substantially increased due to the market conditions. Please confirm you approve this pricing and send over a revised PO and we'll get this set-up—Me mil! pricing Is only valid until noon tamorrow. As you can see the commodity material market requires constant monitoring and predicting the changes is nearly impossible. To exacerbate the situation, vendors are not price protecting previous quotes (like they have traditionally) which has a very significant financial effect on our now 5,500+ unit backlog. Based on the notices we have received in just the last few weeks, we have no choice but to institute additional price increases effective October 1st. At this point we are limiting the increase to commodities and materials in the base price, along with increases we have received on seating and air conditioning. We are doing our best to manage and negotiate with our other vendors to put off any specific line item option increases until the first of the year. I will update you in the next few months whether we can make that happen or not. I recognize that these increases are frustrating and make it hard for you to manage your business. Please understand we are doing all we can in order to minimize them, and minimize the disruption to your business. Unfortunately, we are in uncharted waters and the challenges appear to be with us for at least the near future. Thank you again for your continued trust and partnership. David Wright �BIWWTRACT PRICING WORKSHEET For MOTOR VEHICLES Only Contract No.: BT01-19 Date Prepared: 7/15/2022 � �+,ro.. , .3 � �� +'�s'`.i. '' '� "��"��"�'� ��.Y� y 1?�'v ,h�'<�' ,` a•, a- k sary s^& r �'� r a�Rk- -3^'�ta `�': . ��x> � �',. � � :� be• ed��to�F`��AC� .� k X3,.93 tS4 �h�e ore= �ea e� a{o rintle ibl��j �� ,,� _ tti..'�.M%.� Buying Agency: City of Sunny Isles Beach / Pelican Community Park Contractor: Texas Bus Sales Contact Person: Genesis Cuevas Prepared By: B Darryl Rickaway Phone: 305-792-1953 Phone: 713-681-3600 ext 225 Fax:11Fax: Emaii: gcuevas(a)sibf1.net Emaii:darryl.r(a Codemexasbussales.com Product : I LEF Desc ription: I Aero Elite TC 320 - 24 Passenger w/2 -Wheelchair spaces A. Product Item Base Unit Price Per Contractor's H -GAC Contract: 1 $ 116,738.00 B. Published Options - Itemize below - Attach additional sheet(s) if necessary - Include Option Code in description if applicable. (Note: Published Options are options which were submitted and priced in Contractor's bid.) Description Cost Description Cost SEE ATTACHED SHEET Subtotal From Additional Sheet(s): $ 24,204.00 III Subtotal B: $ 24,204.00 C. Unpublished Options - Itemize below / attach additional sheet(s) if necessary. (Note: Unpublished options are items which were not submitted and priced in Contractor's bid.) Description Cost Description Cost SEE ATTACHED SHEET Subtotal From Additional Sheet(s): $1,657.00 Subtotal C: $1,657.00 Check: Total cost of Unpublished Options (C) cannot exceed 25% of the total of the Base Unit Price plus Published Options (A+B). FFor this transaction the percentage is: 1 Total Cost Before Any Applicable Trade -In / Other Allowances / Discounts (A+B+C) Quantity Ordered: 0 X Subtotal of A + B + C: $ 142,599.00 11 SubtotalD: $ 142,599.00 E. H -GAC Order Processing Charge (Amount Per Current Policy) Subtotal E: $ 600.00 F. Trade -Ins / Other Allowances / Special Discounts / Freight / Installation Description Cost Description Cost Subtotal F: $ 25,559.40 Delivery Date: 120 ARO G. Total Purchase Price (D+E+F): $168,758.40 MANUFACTURER'S BASE VEHICLE HGAC Bid No: BT01-19"Shutt/e/Transit Buses" Contract Dates: January 01, 2019 to December 31, 2020 Contractor. Texas Bus Sales, Inc. LEF - Type A Transit Bus Aero Elite TC 320 - 24 Passenger w/2 -Wheelchair spaces PRODUCT ITEM BASE UNIT FEATURES CHASSIS IH "Cab & Chassis", 23,500 GVWR 215 HP International DT Max Force diesel engine Allison Series 2100, 5 speed automatic transmission 320 amp Leece-Neville Alternator 15,500 Ib. International rear axle, 4.44 ratio with air ride suspension 8,000 Ib. Dana Spicer front axle, Parabolic taper leaf springs Fast Idle Control, manually activated hand throttle mounted in steering wheel Tilt steering column Cruise control mounted in steering wheel Steel belted radial tires (245R/70R19.5) Dual batteries (1,100 cca) 4 wheel disc brakes, Hydraulic w/ABS, "Diamond Life" 65 gallon caged fuel tank In dash 24,000 BTU a/c & 45,000 BTU heat Black rubber flooring in cab area ADVANTAGE XL BODY: Fully welded steel cage construction using steel tubing meeting all applicable FMVSS requirements Pre -painted white aluminum side walls and skirts .060" thick pre -painted aluminum upper sidewall metal (from roof to FRP to floor molding) .040" thick pre -painted aluminum skirts formed with a 4" radius on the bottom. 5.2mm thick luan is secured by fasteners to each roof bow, One-piece .040" thick FRP roof is bonded with adhesive to the luan. One-piece fiberglass rear cap with anti -ride feature Fiberglass front cap "Starview" drivers visibility window in front of entry door Electric actuated passenger entry door with full length glass 36" wide x 36" high upper double T -Slider tempered safety glass window with climate control tint Rear egress window Black Heavy-duty steel powder -coated rear bumper Rear mud flaps Contoured styled exterior mirrors w/ convex lens in a resin injection -molded housing Sealed LED stop, tail, and turn signal lights with reverse lights ADA compliant surface mounted exterior entry door light Flat floor (no wheel wells) with 80" interior floor to ceiling height Seat track mounted in floors & sidewalls for adjustable passenger seats w/track insert in floor only Black slip resistant floor covering White step nosing at passenger entry door 5/8" exterior grade plywood flooring Ceiling and rear wall fabric for sound abatement FRP (fiberglass reinforced plastic) sidewalls for ease of cleaning White step nosing 1.25' left hand vertical passenger assist rail at entry door Intermotive FlexTech Electrical System LED entry door step well lights LED driver and passenger area lighting Non -retractable seat belts Bright white exterior finish MANUFACTURER'S BASE VEHICLE HGAC Bid No: BTO1-19"Shutt/e/Transit Buses" Contract Dates: January 01, 2019 to December 31, 2020 Contractor- Texas Bus Sales, Inc. AIR CONDITIONING: Rear Air Conditioning system rated at 58,000 BTU's with: Dual compressors, chassis supplied plus an auxiliary dedicated to rear system 3 fan skirt mounted condenser unit rated at 76,000 BTU's Rear evaporator rated at 52,000 BTU's/1,330 CFM Rear floor heater rated at 45,000 BTU's GENERAL & SAFETY FEATURES: Auxiliary high idle control Right hand entry handrail Overhead handrail Reverse alarm Driver's passenger view mirror First aid kit, fire extinguisher, & reflector kit Rear window wide angle lens LED exterior entry door light SEATING: Freedman mid -high back passenger seats with: Commercial grade level 1 fabric or vinyl upholstery Slim line, flip up armrests, aisle side Retractable seat belts, under frame mounted Padded grab handles, aisle side seats Two 17" flipseats, one installed over each wheelchair position High back reclining driver's seat w/ armrests PARATRANSIT: ADA compliance features with: Additional leaf spring to the the rear axle to support the w/c lift Double outward opening wheelchair lift door Fully automatic Braun wheelchair lift Transmission interlock LED skirt mounted exterior lights in the lift area Two retractable (4) point wheelchair securement tie downs ADA & Priority seating decals Tiedown belt storage box EXTERIOR Bright white exterior finish BASE VEHICLE INTERIOR LAYOUT: INS HOW WHEELCHAIR A. PRODUCT ITEM BASE UNIT PRICE Base Contract Price Is $ 116,738.00 MANUFACTURER'S OPTIONS HGAC Bid No. BTO1-19; "Shuttle/Transit Buses" Contract Dates; January 01, 2019 to December 31, 2020 Contractor, • Texas Bus Sales Inc. B. PUBLISHED OPTIONS 1 2128000M Front End Tire Alignment $240.00 $ 1 2129000V Tire Valve Extensions, 6" $32.00 $ 1 2237000M Heat Shield, Exhaust/Gas Tank $71.00 $ 1 2317000P Fast Idle, W/Interlock, Aero Elite Navistar $420.00 $ 1 2650000V Stainless Steel Screws, Exterior $123.00 $ 1 303OElVC Door, Entry 30 Electric SC Galvanized $0.00 $ 1 3404000Y Door, Rear 32x54 (Ss Upgrade N/A) $482.00 $ 1 4128930P A/C, ACT 91323s Heavy Duty 125K BTU SC - Side Evaporator $7,163.00 $ 1 4400653P Heater, 65K BTU Vertical 5/8" $423.00 $ 29 6604000J Seat Cover, Level 4 $62.00 $ 1 6735000F Floor, 3/4" 2611 Composite $1,515.00 $ 1 7105000F Handrail, Overhead, additional $88.00 $ 1 715700JP Lights, LED Exterior Pkg, W/Rear Turn, Center -mount Brake Light, Side Marker $162.00 $ 1 71640ILP Lights, Independent Brake LED Round $85.00 $ 1 7180002P Rear Door Ajar Buzzer, Phillips $90.00 $ 1 7238000P Speakers, (4) $77.00 $ 1 7270072P Radio, AM/FM/USB/MP3/PA Handheld REI System Aero Elite $319.00 $ 1 7274007P Rear View Camera, REI System, 7" LCD Color $364.00 $ 1 73540GWG Standee Line, 2 X 30 White Gerflor $27.00 $ 1 7607000V Wheel Inserts, Stainless Steel Navistar $291.00 $ 1 772000CM Modesty Panel, Driver - Formica $51.00 $ 1 7735001P Stop Request, Passenger Pull Cord & ADA Tape $652.00 $ 1 7741000P Stop Request Sign, Flush Mount, Front $86.00 $ 2 8315100E Seat, Freedman Notch -Back Double Foldseat $852.00 $ 1 86100LCP Light, LED Lift Interior Ceiling Mount $28.00 $ 1 9130320M Paint, Full Body Single Color (320) (Gray4) $2,633.00 $ 4 SPF00010 Chassis Model Year Price Increase, 2018 Model Year to 2022 Model Year $1,320.00 $ 240.00 32.00 71.00 420.00 123.00 482.00 7,163.00 423.00 1,798.00 1,515.00 88.00 162.00 85.00 90.00 77.00 319.00 364.00 27.00 291.00 51.00 652.00 86.00 1,704.00 28.00 2,633.00 5,280.00 Total Cost of Published Options 24,204.00 C. UNPUBLISHED OPTIONS 1 5560205P Cabliner w/ Destination Sign Prep 425.00 425.00 0 140OPEGG Driver Seat - Cover To Match Passenger Seats 588.00 - 0 7270120H Angeltrax Security Camera System with 6 Cameras 6,230.00 - 28 SP060020 Freedman - Seats - Logo On Seat Backs - Embroidery Per (1) 44.00 1,232.00 1 SPO -4 Upgrade to 240HP Cummins Engine - - Total Cost of Unpublished Optional Equipment 1,657.00 F. NON -EQUIPMENT CHARGES 1 Freight Delivery to ABS 2,750.00 2,750.00 1 PDI & MR Pre -Delivery Inspection & Make Ready 1,650.00 1,650.00 1 NEI -1 Dealer Pick Up Fee 315.00 315.00 1 NEI -2 Title Fee 795.00 795.00 1 NEI -3 Driver Proctection System 2,700.00 2,700.00 1 NEI -6 Body Builder's Model year price increase 12,368.00 12,368.00 1 NEI -7 Supplier's Raw Material Surcharges 4,981.40 4,981.40 Total Cost of Non -equipment Charges 25,559.40 OPTIONAL FLOORPLAN HGAC Bid No. BT0I-19 "Shuttle/Transit Buses" Contract Dates January 01, 2019 to December 31, 2020 Contractor, Texas Bus Sales. Inc. I OPTIONAL FLOOR PLAN I 4 R n < LU Signature: (Purchaser's Authorized Signature) I C`r* oPLO v s�M hyo City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax MEMORANDUM TO: Honorable Mayor and City Commissioners VIA: Stan Morris, City Manager FROM: Audra Curts-Whann, Assistant City Manager DATE: February 16, 2023 RE: Ratifying an Increase in Spending Authority with Texas Bus Sales RECOMMENDATION: Staff recommends approval of this Resolution. REASONS: On November 19, 2022, Resolution No. 2020-3134 was approved authorizing the City Manager tc purchase a of 24 / 2 wheelchairs passenger shuttle bus, with Texas Bus Sales, through an Interlocal Cooperative Purchasing contract in an amount not to exceed $155,631.00, in addition to a $5,000 contingency. On July 15, 2022, Texas Bus Sales sent a written notification, identified in Attachment A, to the city stating the following: "There have been very significant chassis delays with the chassis manufacturer and production which causes a delay of an additional 270 days and a price increase from $155,631 to $168,758.40. At such time, Purchasing notified the vendor to keep the subject PO active until the city received commission approval to increase the P0, which the vendor agreed to. The amendment to increase the PO was not taken on the September 2022 agenda because we were uncertain of a projected delivery date and final price, given the market volatility. On January 27th, 2023, Texas Bus Sales sent a notification stating the shuttle bus will be delivered towards the end of March/early April. At that time, the PO was increased to avoid any further delays. FUNDING SOURCE: Funds have been appropriated in account no. 110-5-5440-464200-00000. Item Number: 10.M ATTACHMENTS: Resolution Attachment "A" Item Number: 10.M