HomeMy WebLinkAbout2012-02-28 - AGENDA REPORTS - CNG BUS PURCHASE (2)Agenda Item: 4
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR City Manager Approval:
Item to be presented by: Adrian Aguilar
DATE: February 28, 2012
SUBJECT: ENTER INTO ASSIGNMENT AGREEMENT WITH CITY OF
FRESNO, AND CONTRACT WITH GILLIG FOR THE
PURCHASE OF TEN, 40 -FOOT COMPRESSED NATURAL GAS
(CNG) BUSES
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council:
1. Authorize the City Manager or designee to execute an Assignment Agreement with the City
of Fresno, and waive the formal bid process.
2. Negotiate and execute a contract with Gillig for the purchase of ten (10), 40 -foot CNG buses,
in the amount of $4,844,200, or modify the award in the event issues of impossibility of
performance arise, subject to City Attorney approval.
3. Appropriate funds in the amount of $4,844,200 to account 12400-201.003, and increase the
federal grant revenue account 700-4424.009 by $3,875,360 and the Municipal Operators
Service Improvement Program (MOSIP) revenue account 700-4422.007 by $968,840.
BACKGROUND
Santa Clarita Transit has a fleet replacement program that meets the 'Federal Transit
Administration's 12 -year life cycle for transit vehicles. Twenty-one diesel buses have reached
their useful life and are scheduled to be replaced over the next 18 months. With approval of this
action by Council, the City will be able to replace 10 of the 21 vehicles this year, with the
balance scheduled to be replaced next fiscal year. All ten replacement buses will run on
compressed natural gas (CNG). This approval would also bring the City more in line with the
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desired capital replacement schedule, _in which approximately 1/12 of the transit fleet is
scheduled for replacement each fiscal year.
Staff proposes that in lieu of issuing a Request for Proposal (RFP), the City Council approve the
Assignment Agreement with the City of Fresno. This agreement assigns the City the rights under
the option provision of Fresno's existing contract to purchase ten compressed natural gas (CNG)
transit buses. Additionally, staff recommends approval of a contract with Gillig 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 the
City of Fresno as part of a much larger procurement. Staff also conducted a price analysis to
ensure the most advantageous offer to the City. This option approach of an existing contract 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 ten, 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 $3,875,360 in
Federal 5307 transit grants funds programmed to cover eighty percent (80%) of the total contract
amount and $968,840 in MOSIP funds programmed for the remaining twenty percent (20%)
local match.
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