City Council Report


City Council Meeting: June 10, 2014

Agenda Item: 3-C


To:               Mayor and City Council 

From:           Edward F. King, Director of Transit Services

Subject:        Issue a Notice to Proceed to Gillig LLC to Purchase Eleven (11) 40-foot Compressed Natural Gas Buses



Recommended Action

Staff recommends that the City Council authorize the City Manager to issue a Notice to Proceed to Gillig LLC, a California-based company in an amount not to exceed $6,763,405 (including a 5% contingency), to furnish and deliver eleven 40-foot, low floor, Compressed Natural Gas (CNG) powered transit buses at pricing established through Agreement No. 9855, with future year funding contingent on Council approval and budget adoption.  


Executive Summary

Santa Monica’s Big Blue Bus (BBB), along with 20 other agencies, participated in a joint procurement to purchase buses.  Central Contra Costa Transit Authority (CCCTA), the lead agency, issued a Request for Proposal (RFP) for the production and delivery of 30, 35, and 40-foot Heavy-Duty Low Floor transit buses.  CCCTA determined Gillig LLC was the best bidder. 



BBB currently operates 99 Liquid Natural Gas (LNG) buses which were purchased between 2002 and 2006, 37 of which have reached the end of their useful life per Federal Transit Administration (FTA) guidelines. FTA guidelines set the useful life of a transit vehicle at 12 years of age or 500,000 miles.  BBB has a capital improvement program to replace aging buses as they approach the end of their useful service and these 37 buses have been identified for replacement.


The Notice to Proceed to Gillig LLC for the purchase of 11 40-foot CNG-powered transit buses would ensure that buses that have reached their useful life cycle be replaced in a timely manner, thereby lowering the cost of maintenance per mile, increasing efficiencies, further reducing exhaust emissions through improved emission technology, and providing our customers with increased comfort.    



In November and December 2011, staff evaluated four 40-foot buses by different manufacturers.  The evaluation allowed Motor Coach Operators to drive the buses.  Maintenance technicians evaluated vehicle components.  Motor Coach Cleaners inspected buses and put them through the service lane and fuel island.  All employees who participated in this cross functional process provided feedback using a technical rating sheet to score their pros/cons of the vehicle. Based on the feedback received, it was determined that the Gillig LLC bus best fit the needs of the BBB.  


On June 12, 2012, Council authorized Agreement No. 9855 with Gillig LLC to purchase and deliver 40-foot, low floor, CNG powered transit buses for a period of five years at predetermined base prices plus Producers Price Index (PPI) 1413 from the Bureau of Labor Statistics (United States Department of Labor).


On January 14, 2014, the City entered into Agreement No. 9855 with Gillig LLC to secure buses for future bus procurements with the associated cost pricing at the time the procurement was authorized by the City Council.


Staff recommends that Council authorize the City Manager to issue a Notice to Proceed to purchase 11 40-foot CNG buses at $564,094 per bus, including tax, delivery, ADA compliance, and extended warranties. Additional costs in the amount of $236,304 for spare parts and $322,067 for contingency  would bring the Notice to Proceed total amount to $6,763,405.

The breakout of the purchase for 11 transit vehicles as follows:

11 CNG 40-Foot Buses Including Tax and Delivery

 $       5,777,453

ADA Compliance

 $          339,031

Extended Warranty

 $            88,550

Spare Parts

 $          236,304

5% Contingency

 $          322,067


 $       6,763,405



Financial Impacts & Budget Actions

The Notice to Proceed with Gillig LLC is for an amount not to exceed $6,763,405 (including a 5% contingency).  Funds are included in the FY 2014-15 proposed Capital Improvement Program budget in account C410519.589000.  Future year funding is contingent on Council approval and budget adoption.   



Prepared by: Getty Modica, Transit Maintenance Officer




Forwarded to Council:







Edward F. King

Director of Transit Services


Rod Gould

City Manager