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HomeMy WebLinkAbout2023-02-28 - AGENDA REPORTS - CONTR DIAL A RIDE BUSESO Agenda Item: 5 1. CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: ' DATE: February 28, 2023 SUBJECT: EL DORADO NATIONAL CORPORATION, GILLIG CORPORATION, AND A-Z BUS SALES CONTRACTS FOR THE PURCHASE AND DELIVERY OF LOCAL AND DIAL -A -RIDE BUSES DEPARTMENT: Economic Development PRESENTER: Adrian Aguilar RECOMMENDED ACTION City Council: Authorize the City Manager or designee to execute a contract with El Dorado National Corporation for the purchase of two (2) 40-foot hydrogen fuel cell electric buses, training, and spare parts in an amount not to exceed $2,500,616, or modify the award in the event issues of impossibility of performance arise, subject to City Attorney approval. 2. Authorize the City Manager or designee to negotiate and execute a contract with Gillig Corporation for the purchase of one (1) 29-foot and two (2) 40-foot compressed natural gas buses in an amount not to exceed $2,251,825, or modify the award in the event issues of impossibility of performance arise, subject to City Attorney approval. 3. Authorize the City Manager or designee to negotiate and execute a contract with A-Z Bus Sales for the purchase of two (2) 24-foot compressed natural gas cutaway buses in an amount not to exceed $437,396, or modify the award in the event issues of impossibility of performance arise, subject to City Attorney approval. BACKGROUND Santa Clarita Transit has a fleet replacement program that meets the Federal Transit Administration's (FTA) 12-year life cycle for commuter and transit vehicles and 7-year life cycle for Dial -A -Ride vehicles. Five of the City of Santa Clarita's (City) local buses and two of the Dial -A -Ride buses have reached the end of their useful life and are scheduled to be replaced over the next 18 months. Page 1 Packet Pg. 26 O As required by state law, the City Council adopted the City Zero Emissions Transition Plan (Plan) in late 2020. The Plan serves as a roadmap for the City to comply with the state mandate which requires the City to have a 100-percent zero emission bus fleet by 2040. The Plan calls for a phased approach in which 50 percent of all new local transit buses purchased before 2028 are zero emission. This approach will allow the City to control capital and operating costs, as Compressed Natural Gas (CNG) buses are less expensive to purchase and operate. The purchase of two hydrogen fuel cell electric (fuel cell) and three CNG local buses allows the City to continue to improve fleet reliability, reduce emissions within the region, and improve the overall fuel economy of the City's bus fleet. The buses proposed for purchase have new vehicle designs and technology that will improve the customer experience. The recommended action would also bring the City in alignment with the desired capital replacement schedule, where approximately one -twelfth of the transit fleet and one -seventh of the Dial -A -Ride fleet are scheduled for replacement each fiscal year. The City intends to purchase the fuel cell buses through the State of Virginia Contract and the CNG powered vehicles through the CalACT/Morongo Basin Transit Authority (MBTA) vehicle purchasing cooperative, of which the City is a member. Purchasing buses through this method expedites the purchasing process and ensures competitive pricing. Under these cooperative agreements, product specifications were identified and prices negotiated, based on the total projected participation of the cooperative members rather than just the vehicles scheduled to be purchased by the City. As an added measure, staff conducted a price analysis of both cooperatives to ensure the proposed pricing is within industry standards and is the most advantageous to the City. The use of purchasing cooperatives is common within the transit industry and is a practice accepted by the FTA. If this action is approved by the City Council, the City will be able to take advantage of state incentive programs for the purchase of zero emission buses, to replace a number of aging buses that have reached the end of their useful life, and to implement the latest engine technology. ALTERNATIVE ACTION 1. Direct staff to issue a Request for Proposal for the procurement of fuel cell and CNG powered transit, and Dial -A -Ride buses. 2. Other action as determined by the City Council. FISCAL IMPACT There is no impact to the General Fund as a result of this procurement. The City has programmed Federal 5307 Transit Grant funds to cover 80 percent of the total contractual cost of the buses. The remaining 20 percent will be funded using Municipal Operator Service Improvement Program (MOSIP) funds. Adequate funds for this purchase are available in Transit Capital Equipment Account 97003702-520103. Page 2 Packet Pg. 27