Buses replacing the two 2021 Ford F550 Champion Low-Floor models the city sold to Oaklawn Racing Casino Resort weren't expected to arrive until next year, but the city said the replacements could be on the road in a matter of weeks.
The Hot Springs Board of Directors will consider a resolution Tuesday night approving the purchase of two buses with Ford E450 chassis and ARBOC Spirit of Mobility passenger bodies from Creative Bus Sales. They have a combined cost of $298,062, 85% of which would be reimbursed by the Federal Transit Administration.
The two F550 models the board authorized the city to purchase last month didn't meet specifications for the fixed transit routes they were intended to serve. The inability to easily access the passenger compartment from the driver's seat made them unsuitable for fixed routes. Their configuration was also inadequate for paratransit routes.
The city didn't discover the buses were inconsistent with its specifications until they were delivered in February. City Attorney Brian Albright recommended the city pay the vendor, Central State Bus Sales Inc., to avoid litigation, honoring the $364,704 bid the board awarded the company last July.
Deputy City Manager Lance Spicer said the city sold the buses to Oaklawn for $328,233 in an online auction that drew more than 300 views over three days. The price represented 90% of what the city paid for the buses, meeting the minimum reserve requirement the board established for the sale. The proceeds will be returned to the general fund, which absorbed the $364,704 cost of the two buses.
The $36,471 difference in the purchase and sale prices reduced savings that accrued to the general fund as a result of $2.1 million in Coronavirus Aid, Relief and Economic Security Act funding paying for the entirety of the intracity transit department's 2020 operations. Transit department operations typically require a more than $460,000 annual subsidy from the general fund.
Given the $66,642 difference between the two Ford F55o models the city bought and sold and the two E450 models the city is requesting, the city expects to realize about $30,000 in savings if the board authorizes the purchase of the E450s.
"The hardest thing about purchasing buses or any type of vehicles or equipment at this point is finding ones available for purchase," Spicer said. "It's pretty fortunate we located these two units through the state of Oklahoma contract. I think we're going to probably come out ahead overall."
The E450 models were procured through an Oklahoma Department of Transportation and Office of Management and Enterprises Services solicitation. Other entities receiving Federal Transit Administration funds can use the solicitation to source Americans with Disabilities Act-compliant transit vehicles.
After the board approved the sale of the F550 models last month, the city told the board it could take up to eight months to find replacements and get them on the road.
"These are ones our resident adviser went to the factory and toured and saw the specific (vehicle identification numbers) of the units," Spicer, referring to the E450 models, told the board last week. "To meet all of the FTA requirements from a competitive procurement is difficult.
"It was very fortunate we found this contract and the pricing is good, but also that they actually have the units available for us to have. We will have them in a matter of weeks instead of six to eight months of leave time."
Spicer said if the board authorizes the purchase, the buses could be on the road in a few weeks. The 18-passenger models are 27 feet long and have two spots for wheelchair passengers.
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