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HomeMy WebLinkAbout2012-09-25 - AGENDA REPORTS - COMMUTER BUS PURCHASE (2)Agenda Item• 9 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Adrian Aguilar DATE: September 25, 2012 SUBJECT: ASSIGNMENT AGREEMENT WITH YOLO COUNTY TRANSPORTATION DISTRICT AND CONTRACT WITH MOTOR COACH INDUSTRIES FOR THE PURCHASE OF SIX, 45 -FOOT COMMUTER BUSES DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council: Authorize the City Manager or designee to execute an Assignment Agreement with Yolo County Transportation District, and waive the formal bid process. 2. Negotiate and execute a contract with Motor Coach Industries (MCI) for the purchase of six (6), 45 -foot buses, in an amount not to exceed $3,782,170, or modify the awards in the event issues of impossibility of performance arise, subject to City Attorney approval. Appropriate funds in the amount of $3,782,170 to the automotive equipment account 12400-5201.003, and increase the federal grant revenue account 700-4424.009 by $3,025,736. BACKGROUND Santa Clarita Transit has a fleet replacement program that meets the Federal Transit Administration's 12 -year life cycle for transit vehicles. Eight of the City commuter 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 six of the eight vehicles this year with the balance schedule to be replaced next fiscal year. This approval would also bring the City more in line with the desired capital replacement schedule, in which approximately 1/12 of the transit fleet is scheduled for replacement each fiscal year. QirpwJ�J�� _,- Staff proposes that in lieu of issuing a Request for Proposal (RFP), the City Council approve the Assignment Agreement with Yolo County Transportation District (Polo). This agreement assigns the City the rights under the option provision of Yolo's existing contract to purchase six (6) commuter buses. Subsequent to this approval, staff recommends approval of a contract with MCI 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 Yolo as part of a much larger procurement. Staff also conducted a price analysis to ensure the most advantageous offer to the City. The results of that analysis confinned that the pricing is in line with industry standards and provides the City with the best value. The Assignment Agreement 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 six, 45 -foot commuter 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 programmed Federal 5307 transit grant funds to cover 80% of the total contractual cost of the buses, and the remaining twenty percent (201/o) required local match will come from the Transit Fund balance.