HomeMy WebLinkAbout2023-02-28 - AGENDA REPORTS - CONTR AMEND DIAL A RIDEO
Agenda Item: 6
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: TAA,/�
DATE: February 28, 2023
SUBJECT: CONTRACT AMENDMENT WITH A-Z BUS SALES FOR THE
PURCHASE AND DELIVERY OF DIAL -A -RIDE BUSES
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
1. Amend the letter of agreement dated April 11, 2022, with A-Z Bus Sales and increase the
not -to -exceed amount for the purchase of two CNG Dial -A -Ride buses by a one-time price
adjustment of $63,749, from $363,647 to $427,396.
2. Appropriate funds in the amount of $63,749 to Expenditure Account 7003702.520103, and
from those funds, increase Miscellaneous Federal Grants Revenue Account 700.442409 by
$51,000 and increase Municipal Operator Service Improvement Program Revenue Account
700.442207 by $12,749.
3. Authorize the City Manager or designee to execute all contract documents, or modify the
award in the event issues of impossibility of performance arise, subject to City Attorney
approval.
BACKGROUND
In March 2022, the City Council approved the use of a state-wide Transit Consortium
(Consortium) and awarded a contract to A-Z Bus Sales for the purchase and delivery of two
compressed natural gas (CNG) Dial -a -Ride (DAR) cutaway buses. In May 2022, A-Z Bus Sales
and three other bus manufacturers submitted a formal request to the Consortium to increase the
base cost of their vehicles. The Consortium reviewed the documentation submitted by the bus
manufacturers justifying the request. The driving force behind the price increase request was
Ford Motor Company, which significantly increased the price of vehicle chassis while
decreasing their availability. This was magnified by supply chain shortages and raising material
costs across the board.
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In consultation with legal counsel and the Federal Transit Administration, the Consortium
approved the requested one-time price adjustment to the base cost, which was retroactively
applied and affected the contract awarded by the City Council in March 2022.
The one-time price adjustment of $63,749 resulted in an 18 percent increase to the cost of the
vehicles on order for a total of $427,396, which exceeds the $363,647 approved by the City
Council for this contract.
Staff conducted a separate analysis of the revised pricing and determined the new pricing to be in
line with the current transit and commercial vehicle market.
ALTERNATIVE ACTION
Cancel the contract with A-Z Bus Sales and direct staff to issue an RFP to purchase two
CNG-powered cutaway buses.
2. Other action as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact to the General Fund. The City has programmed Federal 5307 Transit
Grant funds to cover 80 percent of the requested increase. The remaining 20 percent will be
funded using Municipal Operator Service Improvement Program (MOSIP) funds.
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