HomeMy WebLinkAbout10/04/2011, C6 - TRANSIT VEHICLE PROCUREMENT AGREEMENT WITH ROCHESTER GENESEE REGIONAL TRANSIT AUTHORITY council Mea in`Date
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CITY OF SAN LUIS OBISPO
FROM: Jay D. Walter, Director of Public Works
Prepared By: John Webster, Sr.,Transit Manager
SUBJECT: TRANSIT VEHICLE PROCUREMENT AGREEMENT WITH ROCHESTER
GENESEE REGIONAL TRANSIT AUTHORITY
RECOMMENDATIONS
1. Authorize the City Manager or her designee to execute an agreement with Rochester-Genesee
Regional Transit Authority for the purchase of one 40-foot Low Floor diesel transit coach
from Gillig Corporation.
2. Authorize the Finance Director to award Purchase Orders for vehicle acquisition if costs are
within the budgeted amounts.
DISCUSSION
Background
On June 21, 2011, Council authorized the Finance Director to award contracts and execute purchase
orders for vehicle acquisition if costs are within the budgeted amounts in the Transit Fund Program of
Projects. Resolution 10278 (2011 series) specifically authorized using Implicit Purchase Pool Solutions
for the transit purchase agreements as the only method of procurement. The contract with Implicit
Purchase Pool Solutions using their Cooperative Pilot Procurement Program (CPPP) and joint Request
for Bid(RFB) award with Gillig has experienced an increase in the base purchase price for a vehicle due
to market factors. The annual adjustment in the contract increased the cost of the bus purchase and as a
result, staff reviewed alternate purchase options in order to reduce costs and stay within the base budget.
Staff determined that the purchase price with the same manufacturer (Gillig) could be reduced by
utilizing a piggyback contract as opposed to the Implicit Purchase Pool agreement.
Staff is now recommending the approval of an agreement for the purchase of one 40-foot Low Floor
diesel model coach with Rochester-Genesee Regional Transit Authority(RGRTA) located in Rochester,
New York. This purchase would replace a 1997-model bus (Asset #9823) and complete the previously
approved transit vehicle replacement schedule with a modest budget savings of$25,000 that will be used
to augment bus features such as on board cameras or farebox.
Table 1 compares the bid pricing of using both the RGRTA agreement and Implicit CPPP award. The
vehicle replacement budget approved on June 21, 2011 utilizes $415,000 in Prop 1B funding and
purchasing a bus using the RGRTA agreement will provide the City with the greatest amount of savings
as the Implicit CPPP pricing actually exceeds the budget by more than $9,000. Both options are with
Gillig Corporation for the actual bus construction so there is no issue of comparing vehicle types.
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Transit Vehicle Procurement Page 2
Table 1
Agency Budget(Prop 1 B) I Base Bid 40' Sales Tax Total
Implicit CPPP $ 415,000 $ 392,060 $ 32,345 $424,405
Rochester Genesee RTA $ 415,000 $ 359,775 $ 29,681 $389,456
Variance 1 $ (32,285) $ (2,664) $ (34,949)
Piggyback Agreement
"Piggyback" purchasing is allowable under Federal Transit Administration (FTA) guidelines. These
agreements allow 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 allow other agencies to order vehicles from the same contract after they
have reviewed that the award complied with FTA purchasing requirements. This type of cooperative
purchasing is also allowed under the City's purchasing ordinance. The City has used this process in the
past to purchase fleet vehicles and buses.
Using this cooperative purchasing method will expedite the delivery of the transit vehicle based on
the time savings associated with not having to prepare individual procurement documents and will
secure the City's place on the bus manufacturing production schedule. Estimated vehicle delivery by
Gillig, using the RGRTA agreement, would be in early 2012.
FISCAL IMPACT
There will be no impact to the City's General Fund in the adoption of the staff recommendation as
funding was secured from Federal and State sources to purchase transit vehicles. This vehicle
replacement will be totally funded from Proposition 1 B funding that is currently available and $25,544
remains in the budget that will be used for bus features mentioned previously. It is also important to note
that these funds are only available for use on capital projects and cannot be converted to backfill any
SLO Transit operational funding shortfalls at the Federal or State level.
ALTERNATIVES
1. Defer Bus Purchase. The Council could defer the replacement of the 1997 40-ft diesel bus.
The recommended fleet replacement schedule for buses is every twelve years. Staff does not
recommend this option as this bus vehicle has already exceeded the recommended 12-year life
cycle. Deferring this vehicle beyond this point could lead to excessive operating costs related
to vehicle maintenance and repairs.
Z Deny Agreement The Council could deny the use of the agreement with RGRTA and direct
staff to explore other purchasing alternatives. Staff does not recommend this option, as the
use of these types of agreements will expedite the process by not having to prepare the
procurement documents and soliciting bids. This option is expected to delay the purchase and
delivery of a bus vehicle an additional six months and would not necessarily guarantee a
lower price than that provided through the agreement or CPPP.
3. Defer Agreement and Explore Fuel Alternatives. The Council could defer the use of the
agreement with RGRTA and direct staff to explore other purchasing options for alternative
fuels, such as Compressed Natural Gas (CNG), Hybrid or other alternate fuel models. Staff
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Transit Vehicle Procurement Page 3
does not recommend this alternative as the available Proposition 1B funding is insufficient to
cover the additional costs associated with these types of vehicles.
ATTACHMENTS
1. RGRTA agreement
2. Resolution 10278 (Series 2011)
T:\Council Agenda Repons\Public Works CAR\201 I\TRANS MCAR-RGTA-BUS OPTIONS-OCTOBER 4-201 BCAR-DRAFT Piggyback agreement with
RGRTA-v4.docx
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Attachment 1
CONTRACT USE AGREEMENT
FOR
CITY OF SAN LUIS OBISPO
This Contract Use Agreement, made this _ day of 2011 by and among the Rochester-
Genesee Regional Transportation Authority of Rochester,New York("RGRTA"),Gillig located at 25800
Clawiter Road, Hayward, California ("Gillig"), and City of San Luis Obispo located at 919 Palm Street,
San Luis Obispo,California("San Luis Obispo").
Whereas, by a request for proposals dated July 16, 2006, RGRTA initiated a governmentally-
supervised procurement process for the supply and delivery of Diesel-Powered, Heavy Duty, Low
Floor Buses (the `Buses") with availability for "piggyback use" by other governmental agencies
within these United States; and
Whereas,Gillig submitted a proposal to supply said buses;and
Whereas. RGRTA accepted Gillig's proposal and awarded a contract to Gillig on December 7, 2006
(the"Contract").
Now, therefore, in consideration of the mutual covenants and agreements of the parties herein
contained and to be performed,the parties agree as follows:
1. RGRTA and Gillig give San Luis Obispo permission to purchase one(1) of the Buses on the
terms and conditions, including without limitation the pricing terms and conditions,contained
in the Contract, all of which terms and conditions are hereby deemed incorporated into this
Agreement.
2. Gillig represents to San Luis Obispo that Gillig has the requisite specialized expertise and
experience, and can and will provide the Buses and any other equipment, supplies, or other
goods available under the Contract with respect to the Buses,under the terms of the Contract.
3. Gillig agrees to perform for the benefit of San Luis Obispo all its obligations under the
Contract with respect to the one(1)Bus being purchased by San Luis Obispo.
4. San Luis Obispo assumes all rights and obligations of RGRTA under the Contract to the
extent those rights and obligations pertain to the one (1) Bus which are the subject of this
Contract Use Agreement; and San Luis Obispo represents and warrants to RGRTA and Gillig
that San Luis Obispo shall perform all of such obligations in accordance with the terms of the
Contract.
5. Gillig releases RGRTA from any responsibility or obligation under the Contract with respect
to the one (1) Bus that will be purchased by San Luis Obispo. RGRTA is a party to this
Agreement for the sole purpose of confirming that San Luis Obispo is permitted to use the
Contract as contemplated by this Agreement; and RGRTA assumes no additional obligations
or responsibility through its execution of this Agreement.
[SIGNATURES APPEAR ON PAGE 2]
1
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Attachment 1
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS CONTRACT USE
AGREEMENT AS OF THE FIRST DATE ABOVE WRITTEN.
GILLIG ROCHESTER-GENESEE REGIONAL
TRANSPORTATION AUTHORITY
By: By:
Chief Executive Officer
CITY OF SAN LUIS OBISPO
By:
Title:
2
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Attachment-2
RESOLUTION NO. 10278(2011 Series)
RESOLUTION OF THE CITY OF SAN LUIS OBISPO APPROVING THE
PROCUREMENT OF TRANSIT VEHICLE REPLACEMENTS
WHEREAS, the City of San Luis Obispo (referred hereinafter as the City) operates San
Luis Obispo Transit(SLO Transit); and
WHEREAS,the City Council chose the clean diesel path on October 15,2002; and
WHEREAS, California Air Resources Board required transit operators to choose either.
the clean diesel or alternative fuel path by January 1,2003; and
WHEREAS, the City has identified three buses that need to be replaced to comply with
the current emission requirements of the California Air Resources Board; and
WHEREAS,the City has identified one staff vehicle that needs to be replaced; and
WHEREAS, The City of San Luis Obispo and SLO Transit are eligible applicants for
Califomia Proposition Fund Program Policies and Procedures and FTA 5307 funding;and
WHEREAS, the City has allocated a portion of Proposition 1B, Public Transportation
Modernization, Improvement, and Service Enhancement Account (PTMISEA) and FTA 5307
funding to be used for SLO Transit capital projects; and
WHEREAS, the City has secured funding from the Federal Transit Administration
(FTA), Public Transportation, Modernization, Improvement, and Service Enhancement Account
(PTMISEA) which is one of the programs included in Proposition 1B, the Transportation
Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act and Transportation
Development Act (TDA) to assist in the City's compliance of the emission requirements and
staff vehicle replacement.
NOW THEREFORE,BE IT RESOLVED that the City Council of San Luis Obispo:
SECTION 1. Approves using transit purchasing agreements with Implicit Purchase
Pooling Solutions and the National Joint Powers Alliance to procure transit bus and staff
replacement vehicles that comply with the California Air Resources Board (CARB) emission
standards.
SECTION 2. Authorize the Finance Director to execute Purchase Orders for vehicle
acquisition if costs are within the budgeted amount.
R 10278
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Attachment-2
Resolution No. 10278 (2011 Series)
Page 2
Upon motion of Council Member Carter, seconded by Vice Mayor Ashbaugh, and on the
following vote:
AYES: Council Members Carter, Carpenter and Smith, Vice Mayor Ashbaugh
and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 21 st day of June 2011.
ViceMa John Ashlg'aZo
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
r
istine Dietrick
y Attorney
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. 0 1
council memoizanbum
September 27, 2011
RED FILE
TO: City Council MEETING AGENDA
FROM: Jay Walter, Public Works Director DATEL� ITEM #
VIA: Katie Lichtig, City Manager *�,
SUBJECT: Red File Consent Item C-6 Council Reading File Information
Consent Item (C6) on the October 4, 2011 Council Agenda recommends the following:
1. Authorize the City Manager or her designee to execute an agreement with Rochester-
Genesee Regional Transit Authority(RGRTA) for the purchase of one 40-foot Low Floor
diesel transit coach from Gillig Corporation.
2. Authorize the Finance Director to award Purchase Orders for vehicle acquisition if costs
are within the budgeted amounts.
At the end of the report reference to the Council Reading File was inadvertently omitted. The
Council Reading File contains the contract documents that the City relied on to be able to
participate in the piggyback purchase arrangement.
• 2008 Original RGRTA contract for Purchase of 32 Diesel buses
• 2008 Price Sheet
• 2008 Change order#2
• 2008 Change order#3
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