HomeMy WebLinkAbout2001-01-09 - AGENDA REPORTS - MCI CORP BUS AGMT (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
City Manager
Item to be pres
DATE: I January 9, 2001
SUBJECT: ASSIGNMENT AGREEMENT
WITH NEW JERSEY TRANSIT
CORPORATION AND CONTRACT WITH MCI CORPORATION TO BUY
FIVE NEW BUSES
DEPARTMENT: Transportation & Engineering Services
RECOMMENDED ACTION
City Council waive City purchasing policy and approve the Assignment Agreement with New Jersey
Transit Corporation. Appropriate $2,000,000 to Account No. 4600-8615 and increase estimated
Transit Revenues for Fund 801-5214 by $1,600,000, with the remaining funds coming from the
City's Transit Fund balance. Authorize the City Manager or designee to execute the Assignment
Agreement, and negotiate and execute the contract with MCI Corporation, subject to City Attorney
approval.
BACKGROUND
Staff recommends pursuing the purchase of five buses at this time for three compelling reasons.
First, the five buses slated for replacement are the only City buses owned by ATCtVancom, whose
contract expires in August 2001. If ATC does not obtain the new contract, the City will either have
to acquire the five buses or require the new contractor to provide five buses, increasing the cost of
that contract. Second, these five buses are the only pre -1990 buses in the fleet, and are not in
compliance with current emissions standards.
This purchase will enable Santa Clarita Transit to have one of the lowest emissions of the bus fleets
in Los Angeles County, and they will become even cleaner in 2002 with a conversion to low sulfur
fuel and particulate traps. Finally, during the past few months, customer complaints regarding the
performance of these buses have been increasing, indicating the need to retire them as soon as
possible.
Staff proposes that in lieu of issuing a Request for Proposals (RFP), the City Council approve the
Assignment Agreement with New Jersey Transit. This agreement assigns to the City the rights under
the option provision of New Jersey Transit's existing contract to purchase five commuter buses.
Subsequent to this approval, staff recommends approval of a contract with MCI Corporation for the
to
i
ASSIGNMENT AGREEMENT WITH NEW JERSEY TRANSIT CORPORATION
AND CONTRACT WITH MCI CORPORATION TO BUY FIVE NEW BUSES
January 9, 2001 — Page 2
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 would also deliver buses within six months, instead of the industry norm
of 18 to 24 months. Additionally, the price paid by the City will be based upon the price negotiated
by New Jersey Transit. Staff also 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.
ALTERNATIVE ACTIONS
Direct staff to pursue the Request for Proposals (RFP) procedure.
2. Other action as determined by the City Council.
FISCAL IMPACT
The City currently has $1,600,000 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 provide funds for new bus acquisition sufficient to cover the 20 percent local
match portion of the cost of these buses.
AA--TTCHMENT
Assignment Agreement with New Jersey Transit Corporation (available in City Clerk's reading file)
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