Title
San Francisco International Airport Purchase of Fourteen Phoenix Sky Harbor International Airport Buses (Ordinance S-50785)
Description
The Aviation Department (AVN) requests authorization from the City Manager, or his designee, to conduct a noncompetitive sale with San Francisco International Airport (SFO), who has offered to purchase a maximum of 14, 40-foot ElDorado National Axess low-floor buses (Buses) at a price of $25,000 per bus. Further request to authorize the City Treasurer to accept all funds related to this item. The sale will not exceed a value of $350,000.
Report
Summary
With the opening of Stage 2 of the Phoenix Sky Train on Dec. 20, 2022, AVN determined it no longer needed its fleet of 84, 40-foot buses.
Commencing on Sept. 22, 2022, SFO initiated a pilot program named GoSFO, which expanded airport shuttle service to areas not covered by other transit options. In an endeavor to expand their airport shuttle service, SFO approached AVN about the possibility of a direct purchase of fourteen buses.
The entire fleet of 40-foot shuttle buses owned by AVN are at or near the end of their useful life. AVN has retained six buses for use as a contingency to support special events, irregular airport operations, and PHX Sky Train maintenance operations. AVN has also retained six buses to be used for spare parts inventory. With the exception of the 14 buses requested by SFO, the remainder of the bus fleet have been sold at auction.
Procurement Information
According to Phoenix City Code 43-23B, surplus, unclaimed, or lost property not needed by City departments may be disposed of through a non-competitive sale with any other public entities, provided that such disposition is made pursuant to a request submitted to the CIty Manager. Disposal transactions estimated to exceed the payment ordinance threshold will be submitted to City Council for authorization.
Based on recent bus disposals through auction, AVN has determined it will receive significantly more revenue selling the 14 buses through this non-competitive offer than through auction.
Financial Impact
AVN has adhered to the City's salvage protocol to dispose of the remaining 58 buses. The average auction proceeds per bus were $1,458, for a total of $84,550.
On Sept. 7, 2023, the SFO Airport Commission granted approval to procure a maximum of fourteen buses from AVN at a rate of $25,000 per bus, with total a sale amount of $350,000.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.