HomeMy WebLinkAbout1999-11-09 - AGENDA REPORTS - AGMT DETROIT DOT/NOVA BUS (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
DATE: November 9, 1999
City Manager Approval:
Item to be presented by:
SUBJECT: ASSIGNMENT AGREEMENT WTTH DETROIT DEPARTMENT OF
TRANSPORTATION AND CONTRACT WITH NOVA BUS, INC.
DEPARTMENT: Transportation & Engineering Services
RECOMMENDED ACTION
City Council waive City purchasing policy, and approve the Assignment Agreement with City of
Detroit, Michigan, Department of Transportation. Authorize the City Manager or designee to
execute the Assignment Agreement, and negotiate and execute the contract with Nova Bus, Inc.
Over the past seven years, in an effort to keep pace with enormous growth, the City has purchased
used buses. In addition, many of the original 1991 buses have reached their maximum useful life.
Recently, the City successfully competed for federal funding to purchase new buses. Staff proposes
that in lieu of issuing a Request for Proposals (RFP), Council approve the Assignment Agreement
with Detroit Department of Transportation (DOT). This agreement assigns to the City the rights
under the option provision of Detroit DOT's existing contract to purchase sixteen 40 -foot transit
buses. Subsequent to this approval, staff recommends approval of a contract with Nova Bus, Inc. for
the manufacture of these buses.
By assuming the option of an existing contract, the City realizes considerable time and cost savings.
The RFP process, which can consume three to six months, is averted. This opportunity could also
deliver buses within nine months, instead of the industry norm of 18 to 24 months. Also, .the price
paid by the City will be based upon the price negotiated by Detroit DOT in 1997. In addition, staff
has conducted a price analysis to ensure the most advantageous offer to the City. Finally, the option
approach to acquisition is prevalent within the transit industry and is commonly accepted by the
Federal Transit Administration.
ASSIGNMENT AGREEMENT WITH DETROIT DEPARTMENT OF TRANSPORTATION
AND CONTRACT WITH NOVA BUS, INC.
November 9, 1999 - Page 2
ALTERNATIVE ACTIONS
Direct staff to pursue the Request for Proposal (RFP) procedure.
2. Other action as determined by City Council.
FISCAL IMPACT
The City currently has $3.9 million in federal funds programmed in the Transportation Improvement
Plan (TIP) to cover 80 percent of the cost of these buses. In addition, the Transit Division fiscal
planning documents include bus replacement funds, which are sufficient to cover the 20 percent local
match portion of the cost of these buses. Staff anticipates the purchase of these buses to occur in
Fiscal Year 1999-2000, and will return to Council to appropriate funds at mid -year.
ATTACHMENT
Assignment Agreement with Detroit Department of Transportation
S:\TRANSn1AGENDA\novapmc.doc