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HomeMy WebLinkAbout5B - Coach Crafters Payment MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT JUNE 5, 2006 5B Kelly Meyer, Asst. to the City Manager CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PARTIAL PAYMENT TO COACH CRAFTERS FOR THIRD LAKER LINES BUS. Introduction On April 1, 2006, Laker Lines implemented its most recent service changes. We relocated the park & ride from its Colorado Street location in downtown Prior Lake to Shepherd of the Lake Church. We also added a third bus which allowed us to increase the trips provided from 4 to 6. The Met Council provides additional funding for capital acquisitions such as buses. The buses are owned by the Met Council and leased back to the transit providers at no cost. The typical process is to make a request, and once the request is approved and allocated funding, the procurement process proceeds. Prior Lake completed this process and is on schedule to get a new 44 passenger coach in the Fall of 2006. Because staff wanted to add the additional morning and evening routes sooner than the fall of 2006 (Le. coordinated with the change in park & ride location), we purchased and refurbished a used bus with the intent of using the bus to add the additional routes until the new coach bus was delivered. The used bus would then be used only as a spare in instances where one of the other buses needed repair. The acquisition (and the used bus) were given approval by the Met Council that they would fund this bus purchase. Current Circumstances Since that time, we have been invoiced for bus and forwarded that invoice on to the Met Council. Because of the long legislative session and the transit issues that were on the table during the session, the invoice has yet to be processed. In the meantime we received the bus in April, put it in service, and the vendor has continued to call staff about payment. Conclusion The total cost of the purchase was $57,811.42. Staff is recommending that the City make a partial payment to Coach Crafters in the amount of $20,000, to be reimbursed by the Met Council at the time they pay the remainder of the invoice within the next 60 days. There are no significant issues. The Met Council has indicated that they would reimburse the City in that manner if the City wished to advance payment. www.cityofpriorlake.com Pfi6h~ 9t5'2~~7:4~3tf 7al'f~~~~~47.4245 FINANCIAL IMPACT: The funds would be drawn from the Transit Fund balance. There is sufficient funding for this purpose. ALTERNATIVES: 1. Adopt Resolution os-xx as part of the Consent Agenda authorizing a partial payment to Coach Crafters in the amount of $20,000 for third Laker Lines bus. 2. Remove this item from the Consent Agenda for additional discussion. RECOMMENDED MOTION: Alternative 1. Reviewed 1.1 Frank Boyles, City < ;~ (~ ~. avn"(~::: RESOLUTION 06-XX 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 Motion By: Second By: WHEREAS, the City of Prior Lake seeks as part of its 2030 Vision and Strategic Plan to continue to improve transit services and options for Prior Lake residents; and WHEREAS, in order to accelerate implementation of a third morning and evening route for Laker Lines express commuters, the City purchased and refurbished a used bus through Coach Crafters; and WHEREAS, the Metropolitan Council authorized the purchase and agreed to fund the capital acquisition; and WHEREAS, due to the long legislative session where transit issues were at the. forefront, the Met Council has taken a very long time to process the payment of the Coach Crafters invoice; and WHEREAS, the City Council deems it reasonable in this instance to advance a partial payment to the vendor to be reimbursed by the Metropolitan Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA that: 1. The recitals set forth above are incorporated herein. 2. The City Council authorizes expenditure of funds in the amount of $20,000 from the transit fund balance to Coach Crafters, to be reimbursed by the Metropolitan Council when final payment of the invoice is made. PASSED AND ADOPTED THIS 5TH DAY OF JUNE, 2006. YES NO I Haugen I Dornbush I Erickson I LeMair I Millar Haugen Dornbush Ericskon LeMair Millar City Manager, City of Prior Lake www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245