HomeMy WebLinkAbout2006-11-28 - AGENDA REPORTS - LACO MTA BUS ASSIGNMENT AGMT (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: [
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
November 28, 2006
• ON
ASSIGNMENT AGREEMENT WITH LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY AND
CONTRACT WITH NORTH AMERICAN BUS INDUSTRIES FOR
THE FUTURE PURCHASE OF EXPANSION BUSES
Administrative Services
RECOMMENDED ACTION
City Council:
1) Waive the formal bid process, and approve the Assignment Agreement with Los Angeles
County Metropolitan Transportation Authority (MTA).
2) Authorize the City Manager or designee to execute the Assignment Agreement, and negotiate
and execute the contract with North American Bus Industries (NABI), subject to City
Attorney approval.
3) Increase estimated revenue of $1,540,000 in account #801-5176, and appropriate
$1,540,000 into account #2460-8615.
BACKGROUND
In addition to the fleet of small buses that Transit currently operates, the transit program operates
two distinct fleets of large buses (commuter and heavily populated school service). Transit is in
need of these two additional vehicles for service expansion and growth. The local service fleet
consists of buses, which are recognizable for having front and rear passenger doors, and operate
within the confines of the Santa Clarita Valley.
Staff proposes that in lieu of issuing an Invitation to Bid, City Council approve the Assignment
Agreement with the MTA. This Agreement assigns the rights to the City, under the option
provision of MTA's existing contract, to purchase two (2) 60 -foot Articulated Low -Floor
compressed natural gas (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 realizes considerable time and cost savings. The bid process, which
can consume three to six months, is averted. The MTA estimates that staff and consultant time
to complete the bid process exceeds 800 hours. Additionally, the price paid by the City will be
based upon the price negotiated by the MTA as part of a much larger 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
1. Direct staff to pursue to Invitation to Bid procedure.
2. Other action as determined by the City Council.
FISCAL IMPACT
The City currently has funds programmed in the Transit Fund 801 to cover the purchase of these
buses. The contract for manufacture of the buses is $1,540,000. No general funds will be used
for this procurement.
ATTACHMENTS
Assignment Agreement with the L.A. County Metropolitan Transportation Authority (MTA)
SP -1 APPENDIX A ASSIGNMENT AGREEMENT
ASSIGNMENT OF OPTION TO PURCHASE AGREEMENT
Los Angeles County Metropolitan Transportation Authority of Los Angeles, California, "Assignor",
hereby assigns to Santa Clarita Transit of Santa Clarita, CA, °Assignee", its option to purchase
from North American Bus Industries (NABI) of Anniston. AL, "Seller", two (2) NABI 60 -foot
Articulated Low Floor CNG transit Vehicles ("Option Vehicles") at a price and under the terms and
conditions contained in Assignor's Contract No OP33200646, dated May 27, 2003 with Seller.
Such option commenced, per terms of Contract, on May 27, 2003 and may be exercised at any
time on or before May 27, 2008.
With respect to the Option Vehicles assigned hereunder and this Assignment, Assignee agrees to
perform all covenants, conditions and obligations required of Assignor under said Contract and
agrees to defend, indemnify and hold Assignor harmless from any liability or obligation under said
Contract. Assignee 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 Vehicles 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
Vehicles or any rights whatsoever assigned hereunder.
Dated this g'" day of November, 2006
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
LACMTA PART C- SPECIAL PROVISIONS
CONTRACT NO. OP33200646 1 ISSUED: 06.14.02
CONFORMED 02.14.03