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Home My WebLink About04/01/2008, C7 - PROCUREMENT OF REPLACEMENT TRANSIT VEHICLES. COUnck MdivD° 04/01/2008 j ac Enda Rpm C 9 CITY O F SAN LUIS OBISPO FROM: Jay Walter, Public Works Director Prepared By: John Webster, Transit Manager SUBJECT: PROCUREMENT OF REPLACEMENT TRANSIT VEHICLES. CAO RECOMMENDATION 1. Revise the FY 2007-08 Budget to reflect recent new grant amounts and appropriate $87,000 in unappropriated Transit Fund Reserve to act as a local match for the recently received Proposition 113 grant. 2. Approve the purchase of up to five transit vehicle replacements using existing transit vehicle purchasing agreements. 3. Authorize the CAO to sign Purchase Orders for up to five transit vehicle replacements if costs are within the budgeted amount of$1,810,601. DISCUSSION Background The City has been successful in obtaining a number of grants to assist in vehicle replacement of part of the SLO Transit bus fleet. This report outlines the action plan for purchasing these vehicles using a combination of existing piggyback purchasing agreements and the joint Federal Transit Administration Cooperative Procurement Pilot Program with Implicit Purchase Pool Solution that Council previously approved. In 2006, the Council approved the use of"piggyback" vehicle purchase agreements in order to expedite vehicle replacement to meet California Air Resource Board requirements and to replace the City's aging fleet. Pursuant to that direction, the City has entered into two piggyback agreements for vehicle purchases. The first agreement was with Mountain Metro in Colorado and the buses allowed to be purchased are in service today. The City has utilized all of the assigned options under this agreement. In 2007, the CAO signed a second piggyback purchase agreement with Rochester-Genesee RTA (NY) that authorized the City of San Luis Obispo to purchase buses from Gillig Corporation, the same bus company that produced the two most recently delivered buses under the Mountain Metro options. On September 18, 2007 the Council also approved participation in the Federal Transit Administration Cooperative Procurement Pilot Program with Implicit Purchase Pool Solutions to secure additional buses over a five year span as part of a large purchasing pool program. That C�_) -- Transit Vehicle Replacement FY 2007-08 Page 2 Pilot program is currently working toward an April 2008 goal for issuing a Joint Request for Proposals (RFP). Current Situation The City has acquired a significant amount of grant funds for the purchase of five additional buses. The FY 2007-09 Financial Plan established expected budgets for vehicle replacement that now need to be adjusted to reflect actual grants that have been obtained. The City was successful in receiving an unexpected grant of$638,000 from Proposition 1B to help expedite replacement of two of the older buses. This will have a benefit to the City's replacement schedule in that it will advance two vehicle replacements by one year ahead of the adopted Financial Plan. Staff proposes to purchase four of these five buses using the remaining four vehicle options assigned to the City as part of the Rochester-Genesee RTA (NY) piggyback agreement. The final bus will either be purchased through the FTA Cooperative Procurement Pilot program (based upon final price) or staff will pursue additional options from the Rochester agreement to complete the acquisition. "Piggyback" purchasing is allowable under Federal Transit Administration (FTA) guidelines and in essence allows procurements by extending the contract rights to purchase goods and services from one transit agency to another. The initial contract is awarded based on a competitive procurement process with provisions that other agencies may also order transit vehicles from the same contract. Use of cooperative purchasing is also allowed under the City's purchasing ordinance, and the City has used this process in the past to purchase fleet vehicles and buses. Use of cooperative purchasing in this case will expedite the delivery of the transit vehicles based on times savings associated with preparing procurement documents and secure placement on the manufacturing production schedule. The cooperative program with Implicit Purchase Pool Solutions has the added benefit of a 90% Federal and 10% local match. The 10 % savings in available Transportation Development Act (TDA) funds can be to be utilized for capital and operating expenses. Vehicle Replacement Plan San Luis Obispo Transit continues to operate some buses that are over 24 years in age, twice their useful life as defined by the Federal Transit Administration (FTA). As a result, the City's current bus fleet is expensive to maintain and operate, and can be unreliable due to breakdowns. New buses will reduce operating and maintenance costs, provide more reliable service, and allow the City to meet the reductions as required by the California Air Resource Board (CARB). The City expects to replace the majority of the existing sixteen (16) vehicle transit fleet over the next several years as outlined in the FY 2007-09 Financial Plan. FISCAL IMPACT The City has received approved funding for replacement buses as follows: one bus utilizing the FY 2008 FTA Section 5307 funds. Two buses utilizing State Transportation Improvement C'1 -� Transit Vehicle Replacement FY 2007-08 Page 3 Program (STIP) funding and two buses using Proposition 1 B funding. Local matches are required for each grant source and will come from a combination of developer mitigation money ($110,000) and the City's Transportation Development Act(TDA) fund. As part of the November 20, 2007 resolution for Proposition 113 grant submittal, Council committed to meeting local match requirements if the grants were obtained. The grant requires a local match of$87,000 to take advantage of the full grant amount. Currently there are sufficient funds in the Transit Enterprise year end balance to cover this amount. However,the City recently received notice that FY 2007-08 TDA revenues will be lower than expected. SLOCOG and City staff are working on determining what impact on the SLO Transit budget this may have but allocating $87,000 at this time is not expected to cause revenue problems for the budget year. There will be no impact to the City's General Fund. Staff has secured funding from Federal and State transit sources to purchase the vehicles. Tables 1-3 provide individual project funding information. FY 2008 FTA Grant* -Table 1 Project Budget Source Amount FTA 5307 80% $300,000 TDA LTF 20% $75,000 Total $375,000 Funding approved by Council after Public Hearing 11/20/08- Program of Projects(POP) Resolution 9942(2007 series) FY 2008 STIP Grant* -Table le 2 Project Budget STIP* Source Amount STIP 84.5% $600,000 Costco Mitigation(15.5%) $110,000 Total $710,000 Funding Approved by CTC in December 2007 FY 2008 Prop 113 Grant* -Table.3 Project Budget Source Amount Prop 1B 88% $638,601 TDA LTF 12%)* $87,000 Total $725,601 * Project Application approved by Council on 11/20/07(Item C-8) Resolution 9940(2007 series),Project approved by SLOCOG ]2/2007 **Appropriate unallocated transit reserve as local mat h C -7 -3 Transit Vehicle Replacement FY 2007-08 Page 4 Project Costs by Phase(Current Financia!plan) Project Costs Budget-to-Date 2007-08 2008-09 2009-10 2010-11 Total Equipment Acquisition 1,050,000 725,000 750,000 1,050,000 3,575,000 Total 1,030,000 725,000 750,000 1,050,000 3,575,000 Revised Project Costs by Phase Revised Project Costs Budget-to-Date 2007-08 2008-09 2009-10 2010-11 Total Equipment Acquisition 1,810,601 725,000 750.000 1,050,000 4,335,601 Total - 1,810,601 725,000 750,000 1,050,000 4,335,601 Project Funding by Source Project Funding Sources Budget-to-Date 2007-08 2008-09 2009-10 2010-I1 Total FTA 300,000 580,000 600,000 840,000 2,320,000 TDA*(Budget) 56,000 145,000 150,000 210,000 561,000 TDA*(11-20-07 POP) 19,000 19,000 TDA*(Unallocated reserve) 87,000 87,000 Costco Mitigation 110,000 110,000 Other Grant(STIP) 600,601 600,601 Other Grant(PROP-1 B) 638,000 638,000 Total - 1,810,601 1 725,000 1 750,000 1,050,000 4,335,601 Transit Vehicle Replacement FY 2007-08 Page 5 Description of Replacement Units Replacement Fiscal Year 2007-08 City Fleet Number 8615 9227 9226 Transit ID Number 128 129 143 140 141 Vehicle Type Bus Bus Bus Bus Bus Make Gillig Orion Orion Gill-ig Gillig Model 35'diesel 35'diesel 40'-CNG 40'diesel 40'diesel Model Year 1986 1986 1994 1992 1992 Date Entered City Service 1986 1986 1994 1992 1992 Odometer Reading at 12- 1-06 387,843 79,256_ _ 223,314 180,000 230,127 Replacement Guidelines Target: Years or Mileage 12 years 12 years 12 years 12 years 12 years Projected at Replacement: 22 years 22 years 14 Years 16 years 16 years Replacement Cost Base Unit $329,466 $329,466 $348,028 $336,705 $336,705 Accessories&Other Costs 5%annual inflation $0 $0 Delivery Sales Tax $25,534 $25,534 $26,972 $26,095 $26,095 Total Replacement Costs $355,000 $355,000 $375,000 $362,800 $362,800 FUNDING STIP STIP 08-POP PROP 1B PROP 1B Total:2007-08 $1,810,601 ALTERNATIVE Council could authorize additional funds be added to the project budgets in Tables 1-3 to supplement the TDA-LTF local match for the purchase of alternate fuel or hybrid replacements. Approximately $220,000 in additional funds including sales tax would be needed to purchase a new Hybrid Electric model heavy duty transit bus. G:\Staff-Reports-Agendas-Minutes\_CAR\2008\Transit\3US REPLACEMENT(5)\CAR BUS REPLACEMENT FIVE VEHICLES-vl.doc RECEIVE[ COUNCILHEHORTANDUR, MAR 2 7 1000 SLO-CI-T-Y-CLERK —1 c5 Date: March 27, 2008 OUNCIL i4'CDD DIP p�O E'EN DIR TO: Ci Council CAO B'PIRE CHIEF City .ATTORNEY ;O-PW DIR p r�LERK/ORIG E3'POLICE CHF VIA: Ken Hampian, City Administrative Officer �.+dfJ COY p��n� SEC DIR 1 "ITILDIR SP r43,"R DIR FROM: Jay Walter, Public Works Director &- SUBJECT: Table Correction to Item C7 on the April 1, 2008 Council Agenda The purpose of this memo is correct two of the tables on page C7-4 of the April 1, 2008 Council Agenda. Please note, in the original Agenda Report, the Project Costs table showed the incorrect total for 2007-08 Equipment Acquisition (by $20,000). Also, the project funding sources misassigned $601 as STIP funding for 2007-08 when it should have been assigned to PROP-1 B funding. The corrected tables are as follows: CORRECTED TABLES Project Costs by Phase Project Costs Budget-to-Date 2007-08 1 2008-09 1 2009-10 2010-11 Total Equipment Acquisition 1 1,050,000 1 725,000-1 750,0.0.0 1 1,050,000 1 3,575,000 Total - 1,050,000 1 725,000 1 750,000 1 1,050,000 1 3,575,000 Project Funding by Source Project Funding Sources Budget-to-Date 2007-08 2008-09 2009-10 2010-11 Total FTA 300,000 580,000 600,000 840,000 2,320,000 TDA*(Budget) 56,000 145,000 150,000 210,000 561,000 TDA*(11-20-07 POP) 19,000 19,000 TDA*(Unallocated reserve) 87,000 87,000 Costco Mitigation 110,000 110,000 Other Grant(STIP) 600,000 600,000 Other Grant(PROP-113) 1 1 638,601 1 638,601 Total 1,810,601 1 725,000 1 750,000 1,050,000 4,335,601 PAEETII AGENDA DATE �5`` a00 ITEM #