HomeMy WebLinkAbout2000-01-11 - AGENDA REPORTS - AGMT IPTC GILLIG BUS (3)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
YIN
Item to be presented by: nthony J. Nisich
DATE: January 11, 2000
SUBJECT: ASSIGNMENT AGREEMENT WITH INDIANAPOLIS PUBLIC
TRANSPORTATION CORPORATION AND CONTRACT WITH GILLIG
CORPORATION
DEPARTMENT: Transportation & Engineering Services
RECOMMENDED ACTION
City Council waive City purchasing policy, and approve the Assignment Agreement with the
Indianapolis Public Transportation Corporation (IPTC). Authorize the City Manager or designee
to execute the Assignment Agreement, and negotiate and execute the contract with the Gillig
Corporation.
BACKGROUND
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. In
November, 1999, Council approved an item identical to this one which failed to achieve the desired
result, due to the high cost of the buses in that negotiation. A more desirable contract has been
identified in Indiana. Staff proposes that in lieu of issuing a Request for Proposals (RFP), Council
approve the Assignment Agreement with the IPTC. This agreement assigns to the City the rights
under the option provision of the IPTC's existing contract to purchase sixteen 40 -foot transit buses
and six 30 -foot buses. Subsequent to this approval, staff recommends approval of a contract with
the Gillig Corporation 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 six 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 the IPTC. 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 INDIANAPOLIS PUBLIC TRANSPORTATION
CORPORATION AND CONTRACT WITH GILLIG CORPORATION
January 11, 2000 - 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 Council appropriated funds at mid -year.
ATTACHMENT
Assignment Agreement with the Indianapolis Public Transportation Corporation
\transit\agenda\gilpurc.doc