HomeMy WebLinkAbout2012-11-27 - 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: November 27. 2012
SUBJECT: ASSIGNMENT AGREEMENT WITH STATE OF MINNESOTA
AND CONTRACT WITH GILLIG FOR THE PURCHASE OF 11,
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 State
of Minnesota, and waive the formal bid process;
2. Authorize the City Manager or designee to negotiate and execute a contract with Gillig for
the purchase of 11, 40 -foot CNG buses, in an amount of $5,339,559, or modify the award in
the event issues of impossibility of performance arise, subject to City Attorney approval; and
3. Appropriate funds in the amount of $5,339,559 to account 12400.5201.003, increase the
grant revenue account 700.4424.009 by $4,271,647, increase Proposition 1B account
700.4621.001 by $1,716,057, and reduce MOSIP account 700.4422.007 by $648,145.
BACKGROUND
Santa Clarita Transit has a fleet replacement program that mects 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 12 months. Last fiscal year,
Council awarded a contract to Gillig Corporation for the purchase of 10 CNG buses. With
approval of this action by Council, the City will be able to replace the remaining 11 of the 21
diesel -powered vehicles. This approval would bring the City more in line with the desired
capital replacement schedule and would also allow the City's local transit fleet to operate
exclusively on compressed natural gas.
Staff proposes that in lieu of issuing a Request for Proposal (RFP), the City Council approve the
PROWED
Assignment Agreement with the State of Minnesota. This agreement assigns the City the rights
under the option provision of Minnesota's existing contract to purchase II 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 State of Minnesota as part of a much larger procurement. Staff conducted a price analysis to
ensure the most advantageous offer to the City, and this option approach to acquisition is
prevalent within the transit industry and accepted by the Federal Transit Administration.
ALTERNATIVE ACTIONS
1. Direct staff to issue a Request for Proposal for the procurement of 11, 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 20
percent (20%) required local match will come from a Proposition 1 B grant.
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