Okaloosa County BOCC — February 3, 2015 — Allocate Grant Funding and Award of Bid to Refurbish Two Trolleys — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 3, 2015 TO: Honorable Chairman and Members of the Board FROM: Elliot Kampert SUBJECT: Allocate Grant Funding and Award of Bid to Refurbish Two Trolleys DEPARTMENT: Growth Management BCC DISTRICT: All STATEMENT OF ISSUE: Two trolleys operated as part of the transit system need to be rehabilitated due to significant wear. There are grant funds available to accomplish the work; however, the grant must be revised to allocate the funds into the appropriate line item. BACKGROUND: In 2007, Okaloosa County took delivery of two trolleys, numbered 1 and 2, to provide fixed route service along the tourism corridor routes. According to the Federal Transit Administration's rules, this type of vehicle is expected to have a service life of 12 years and 500,000 miles. However, due to the conditions (primarily moist, salt air environment) in which they operate, these vehicles have experienced significant degradation and have been pulled from service pending repair. Among the more significant issues include corrosion and rust, particularly in the undercarriage and exterior; roof leaks; and interior moisture and mold. Because the vehicles have not reached their service life, the County must either rehabilitate them and return them to service or dispose of them, and return to the FTA the greater of either the remaining amortized value based on 1/12 of the value of the original purchase price for each year remaining or the remaining miles multiplied by 1/500,000th of the original price per mile. Using the remaining years, the remaining value for each vehicle is $55,227; using the mileage method, the value of one trolley is $112,454.14, and $111,147.95 for the other (which has slightly more miles). While the County cannot use grant funds to cover the remaining values and dispose of the vehicles, FTA funds can be used to pay for 100% of the rehabilitation cost with no local match required. In order to determine the rehabilitation value, the County issued a request for bids for rehabilitation of the trolleys which generated one response from Fleetco Specialty Vehicles with a price of $89,318.75 for each vehicle for a total of $178,637.50. Sufficient funds are available in grant FL-90-X642 to pay for this work. This is a 2008 grant which, as originally approved by the Board of County Commissioners, intended to purchase more vehicles than have been acquired due to the County’s then-evolving vehicle purchasing policies. The available funds are within the vehicle purchase line item. In order to make these funds available to rehabilitate the trolleys, it is necessary to move the funds from the grant’s vehicle purchase Activity Line Item to a new Activity Line Item for vehicle rehabilitation. If approved by the Board, this transfer will be done electronically in the FTA's TEAM system; there no hard copies of any documents to sign. Due to the age of some of the transit fleet, it is possible that other vehicles may require repair above typical maintenance, so staff recommends that $200,000 be transferred to the vehicle rehabilitation line item. OPTIONS: The County can either contract for the rehabilitation of the trolleys using the grant funds available, or dispose of them and remit to the FTA their respective remaining values. RECOMMENDATIONS: Staff recommends that the Board of County Commissioners: 1. authorize the creation of a new Activity Line Item, 11.14.09, Trolley and Bus Rehabilitation, within grant FL-90-X642, and the transfer of $200,000 from Activity Line Item 11.12.04 of grant FL-90-X642 to the new line item, 11.14.09 to be used in the rehabilitation, including authorization of all necessary electronic approvals; and 2. authorize the award of a contract to Fleetco Specialty Vehicles in an amount not to exceed $178,638 for the rehabilitation work for