HomeMy WebLinkAbout2004-05-25 - AGENDA REPORTS - AGREE TO BUY 14 BUSES (2)Agenda Item:_ 200
CITY OF SANTA CLARITA
AGENDA REPORT /
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Chris Daste
DATE: May 25, 2004
SUBJECT: ASSIGNMENT AGREEMENT WITH THE CITY OF CULVER
CITY AND CONTRACT WITH NEW FLYER INDUSTRIES TO
BUY FOURTEEN BUSES
DEPARTMENT: Field Services
RECOMMENDED ACTION
City Council waive City purchasing policy and approve the Assignment Agreement with the
City of Culver City. Authorize the City Manager or designee to execute the Assignment
Agreement, and negotiate and execute the contract with New Flyer Industries, subject to City
Attorney approval. City Council approve appropriation of $4,773,622 in
Account No. 5400-8615 from Transit Fund 801.
BACKGROUND
On May 27, 2003, City Council authorized the City Manager to negotiate and execute a contract
with North American Bus Industries for the purchase of compressed natural gas (CNG) buses.
Those negotiations failed due to pricing and specification conflicts. This action will replace the
prior effort, and still deliver CNG buses in a timely manner.
Staff proposes that in lieu of issuing a Request for Proposals (RFP), City Council approve the
Assignment Agreement with the City of Culver City. This Agreement assigns the rights to the
City, under the option provision of Culver City's existing contract, to purchase 14 compressed
natural gas (CNG) transit buses. Subsequent to this approval, staff recommends approval of a
contract with New Flyer Industries 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. Culver City reports that City and consultant
staff time to complete the RFP process exceeded 800 hours. Additionally, the price paid by the
City will be based upon the price negotiated by Culver City as part of a much larger
APPROVED
procurement. 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 federal funds programmed in grants to cover 75 percent of the cost of
these buses. In addition, Transit Fund 801 provides funds for new bus acquisition to cover the
required 25 percent local match portion of the cost of these buses. The contract for manufacture
of the buses is $4,773,622. No general funds will be used for this procurement.
ATTACHMENTS
Assignment Agreement with the City of Culver City available in the City Clerk's Reading File