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HomeMy WebLinkAbout2009-12-08 - AGENDA REPORTS - CNG BUSES OMNITRANS CONTR (2)CONSENT CALENDAR DATE: Agenda Item: / . CITY OF SANTA CLARITA AGENDA REPORT Darren Hernandez City Manager Approval Item to be presented by: December 8, 2009 SUBJECT: ASSIGNMENT AGREEMENT WITH OMNITRANS AND CONTRACT WITH NEW FLYER FOR THE PURCHASE OF SEVEN, 40 -FOOT COMPRESSED NATURAL GAS (CNG) BUSES DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council authorize the City Manager or designee to execute an Assignment Agreement with Omintrans, waive the formal bid process, and negotiate and execute the contract with, New Flyer for the purchase of seven (7), 40 -foot buses, in an amount not to exceed $3,351,000, subject to City Attorney approval. BACKGROUND Santa Clarita Transit has a fleet replacement program that meets the Federal Transit Administration's 12 -year life cycle for transit vehicles. Seven 1997 diesel Gillig buses have reached their useful life, and on September 22, 2009, Council authorized staff to execute a Letter of Agreement (LOA) with the Los Angeles Metropolitan Transportation Authority (Metro) for the purchase of seven Compressed Natural Gas (CNG) 40 -foot buses, in an amount not to exceed $2,245,000 from a Metro grant, subject to City Attorney approval. The seven buses will replace the 1997 Gillig buses. In addition, Council authorized staff to execute an Agreement with the South Coast Air Quality Management District (SCAQMD) for a grant in the amount of $247,342 from the Carl Moyer Memorial Air Quality Standards Attainment Program and appropriated the total project cost of $3,351,000. Staff proposes that in lieu of issuing a Request for Proposal (RFP), the City Council approve the Assignment Agreement with Omnitrans. The agreement assigns the City the rights under the option provision of Omnitrans' existing contract to purchase seven compressed natural gas (CNG) transit buses. Subsequent to approval, staff recommends approval of a contract with New IQPPRO ED Flyer for the manufacture of the 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 Omnitrans 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 seven, 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 appropriated the full purchase amount of $3,351,000 in the FY 09-10 budget and has received a grant from Metro in the amount of $2,245,000, a grant from the South Coast Air Quality Management District in the amount of $247,342.00, with the remaining local match of $858,658 to cover the project cost coming from the Transit Fund. a-