HomeMy WebLinkAbout2003-05-27 - AGENDA REPORTS - AGMT MTA BUS EXPANSION (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by:
Agenda Item• _(_
DATE: May 27, 2003
SUBJECT: ASSIGNMENT AGREEMENT WITH THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY AND CONTRACT
WITH NORTH AMERICAN BUS INDUSTRIES, INC. FOR THE FUTURE
PURCHASE OF EXPANSION AND REPLACEMENT BUSES
DEPARTMENT: Field Services
RECOMMENDED ACTION
City Council waive City purchasing policy and approve the Assignment Agreement with Los Angeles
County Metropolitan Transportation Authority in lieu of issuing a Request for Proposal. Authorize the
City Manager or designee to execute the Assignment Agreement, and negotiate and execute the
contract with North American Bus Industries, Incorporated (NABI), subject to City Attorney approval.
BACKGROUND
The Transit program plans to replace old diesel buses and expand the fleet with compressed natural gas
(CNG) powered vehicles, beginning with the planned opening of the Transit Maintenance Facility in
December 2004. Although vehicles would not arrive for eighteen months, standard industry production
cycles require the recommended action now to ensure timely delivery.
Staff proposes that in lieu of issuing a Request for Proposals (RFP), City Council approve the
Assignment Agreement with the Los Angeles County Metropolitan Transportation Authority (MTA).
This agreement assigns to the City the rights under the option provision of MTA's existing contract to
enter into an agreement for the future purchase of twelve CNG transit buses. Subsequent to this
approval, staff recommends approval of a contract with NABI for the manufacture of these buses.
By assuming the option of an existing contract, the City averts an RFP process that could delay delivery
of the CNG buses, and realizes considerable cost savings. The option approach to acquisition is both
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prevalent within the transit industry, and commonly accepted by the Federal Transit Administration. In
addition, the price paid by the City for these future buses will be based upon the price negotiated by the
MTA as part of a much larger procurement. Staff has also conducted a price analysis in order to ensure
that this is the most advantageous purchase option for the City.
Subject to this approval, staff will return to the City Council for the necessary budget appropriation in
Fiscal Year 2004/2005.
ALTERNATIVE ACTIONS
1. 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 $2,770,000 in federal funds programmed in the Transportation Improvement
Plan (TIP) to cover 65 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 35 percent local
match portion of the cost of these buses. At this time, staff is not requesting approval for the
appropriation of any funds. The appropriation of funds to purchase future expansion and replacement
buses will be requested as part of the Fiscal Year 2004/2005 Budget Process.
ATTACHMENTS
Assignment Agreement with MTA
ASSIGNMENT OF OPTION TO, PURCHASE AGREEMENT
Los Angeles County Metropolitan Transportation Authority of Los Angeles, California, "Assignor', hereby
assigns to the City of Santa Clarita, CA, "Assignee", its option to purchase from North American Bus
Industries, Inc. of Anniston, AL, "Seller' twelve (12) NABI Low Floor 40 -foot CNG transit buses ("Option
Buses") at a price and under the terms and conditions contained in Assignor's Contract No. OP33200634,
dated July 22, 2000 with Seller ("Contract").
Such option commenced, per terms of Contract, on July 22, 2000, and may be exercised at any time on
or before July 22, 2004.
With respect to the Option Buses assigned hereunder and this Assignment, Assignee agrees to perform
indemnify and hold Assignor harmless from any liability or obligation under said Contrall covenants, conditions and obligations required of Assignor under said Contract and agract. Assignee
enforcement
to defend,
further agrees to hold Assignor harmless from any deficiency or defect in the legality or enforcement of
the terms of said Contract or option to purchase thereunder. Assignee agrees and understands that
Assignor is not acting as a broker or agent in this transaction and is not representing Seller or Assignee,
but rather is acting as a principle in assigning its interest in the above -referenced option to purchase the
Option Buses under the Contract to Assignee.
Assignee hereby unconditionally releases and covenants not to sue Assignor upon any claims, liabilities,
damages, obligations or judgments whatsoever, in law or in equity, whether known or unknown, or
claimed, which they or either of them have or claim to have or which they or either of them may have or
claim to have in the future against Assignor, with respect to the Option Buses or any rights whatsoever
assigned hereunder.
Dated this _ day of 2003
Assignor
Assignee
I hereby accept and approve the terms of this agreement and agree to hold Assignor harmless from any
further liability or obligation under our agreement.
Seller
Amendment No. 5
1 Contract No. OP33200634
CA: mm