HomeMy WebLinkAbout2007-11-27 - AGENDA REPORTS - CNG BUS PURCHASE (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
1-19
Agenda Item: /
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approvat
Item to be presented by:
November 27, 2007
Jeff O'Keefe
ASSIGNMENT AGREEMENT WITH MASSACHUSETTS BAY
TRANSPORTATION AUTHORITY AND CONTRACT WITH
NORTH AMERICAN BUS INDUSTRIES FOR THE PURCHASE
OF EIGHT, 40 -FOOT COMPRESSED NATURAL GAS (CNG)
BUSES
Administrative Services
RECOMMENDED ACTION
City Council:
Authorize the City Manager or designee to execute an Assignment Agreement with
Massachusetts Bay Transportation Authority, waive the formal bid process, and negotiate and
execute the contract with North American Bus Industries (NABI) for the purchase of eight
(8), 40 -foot buses, in an amount not to exceed $3,637,200, subject to City Attorney approval.
2. Appropriate $1,637,200 from the Transit Fund to expenditure account 912400.5201.003 to
cover the additional cost of increasing the bus order from four to eight buses. Eighty percent
of this additional cost will be funded with Federal Transit Assistance (FTA 5307) funds or
$1,309,760 for the increased cost. Therefore, increase revenue account #700-4424.009 by
$1,309,760.
BACKGROUND
In order to meet growing demand for transit services within the Santa Clarita Valley, the City's
Transit Division is in need of eight (8) additional 40 -foot Compressed Natural Gas (CNG)
powered transit buses. Four (4) additional buses were approved in the current FY 07-08 budget,
and up to eleven (11) additional buses are programmed with the Federal Transit Administration
(FTA) for replacement in FY 08-09. If approved by Council, the request herein would permit
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staff to purchase the four buses provided for in the current budget and accelerate to this fiscal
year the purchase. of four additional buses planned for in the next fiscal year.
Staff proposes that in lieu of issuing a Request for Proposal (RFP), the City Council approve the
Assignment Agreement with Massachusetts Bay Transportation Authority (MBTA). This
agreement assigns the City the rights under the option provision of MBTA's existing contract to
purchase eight 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 RFP
process, which can consume three to six months, is averted. Additionally, the price paid by the
City is based upon the price already negotiated by MBTA as part of a much larger procurement.
Staff also conducted a price analysis to ensure the most advantageous offer to the City. 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 issue a Request for Proposal for the procurement of eight, 40 -foot CNG transit
buses.
2. Other action as determined by the City Council.
FISCAL IMPACT
There is no impact to the general fund with this procurement. The City has Federal 5307 transit
grants programmed to cover 80% of the total contractual cost of the buses, and the remaining
twenty percent (20%) required local match will come from the Transit Fund balance.
The total contract for the. manufacture of the buses is $3,637,200. The FY 07-08 budget includes
$2,000,000 for this purchase, and an additional $1,637,200 is requested to be appropriated to
expenditure account #12400.5201.003. Eighty percent of the $1,637,200 (or $1,309,760) is
Federal Transit Assistance (FTA) grant funds and requires grant revenue account #700.4424.009
to be increased by $1,309,760. The remaining local required match of $327,440 (20%) will
come from the Transit Fund balance.