City Council Meeting: April 14, 2015

Agenda Item: 3-B  

 

 

To:†††††††††††††††††† Mayor and City Council 

From:††††††††††††† Edward F. King, Director of Transit Services

Subject:††††††††† Authorize a Notice to Proceed to Gillig LLC to Purchase Four 30-foot and 25 40-foot Compressed Natural Gas Buses

 

 

Recommended Action

Staff recommends that the City Council:

  1. Authorize the City Manager to negotiate and execute a modification in reference to Agreement #9855 to include the purchase of 30-foot Compressed Natural Gas (CNG) powered transit buses and authorize a notice to proceed to Gillig LLC, a California-based company, in reference to Agreement #9855, to furnish and deliver four 30-foot CNG transit buses in an amount not to exceed $2,653,026.
  2. Authorize a notice to proceed to Gillig LLC, a California-based company, in reference to Agreement #9855, to furnish and deliver twenty-five 40-foot CNG powered transit buses in an amount not to exceed $16,767,086.
  3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report.

 

 

Executive Summary

The purchase of four 30-foot CNG transit buses would enable Big Blue Bus (BBB) to meet operational needs identified for new service with the Expo Phase II light rail integration project. The four 30-foot buses would replace four 40-foot buses that have reached the end of their 12 year useful life cycle.

 

The purchase of 25 40-foot CNG transit buses would enable the timely replacement of 25 40-foot transit buses that have reached the end of their 12-year useful life cycle by the delivery date of the new buses.

 

The total combined purchase amount for four 30-foot CNG transit buses and 25 40‑foot CNG buses including spare parts, training and warranty, is not to exceed $19,420,112.

 

 

Background

BBB currently operates 86 Liquefied Natural Gas (LNG) buses purchased between 2002 and 2006 of which 24 buses have reached the end of their useful life per Federal Transit Administration (FTA) guidelines.In addition, 52 New Flyer LNG vehicles will have completed their useful life of 12 years in 2016.FTA guidelines set the useful life of a bus at 12 years of age or 500,000 in miles.BBB has a Capital Improvement Program to replace aging buses as they approach the end of their lifecycle.

 

On January 14, 2014, the City entered into Agreement No. 9855 with Gillig LLC to purchase up to 99 vehicles of 30-, 35-, and 40-foot, low floor, CNG powered transit vehicles.

 

Vendor Selection

Santa Monicaís Big Blue Bus (BBB), along with 21 other agencies, participated in a joint procurement to purchase buses.Central Contra Costa Transit Authority (CCCTA), in Concord, California, 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. This was with the understanding that Council approval would be obtained separately through the term of the contract to authorize the purchase of buses in quantities and configurations to be specified, in conformance with the contract documents.A maximum of 99 buses would be purchased under this contract contingent funding availability.

 

BBB was allocated $9,907,539 of Federal Section 5307 Formula Grant funds in June 2014.

 

Discussion

30-foot CNG Gillig Bus Justification

 

BBB is undertaking a substantial change in routing as a result of the additional seven new light rail stations in their service area.These stations are associated with the LA County Metro project, Expo Phase II, which extends the Expo Light Rail from downtown Los Angeles to downtown Santa Monica.New Route 43 operates via San Vicente to 26th Street, south (north) to the Bergamot Terminal.As a result of this new route, the current fleet of buses cannot physically make the turns at two locations because of the length of the current buses.The Gillig 30-foot bus provides the appropriate turning radius as compared to the current buses in the fleet.BBB has explored various other options such as rerouting existing vehicles around these challenging turns, but was unable to find a suitable path for the bus.Based on maneuverability and functionality, staff recommends the purchase of four 30-foot CNG powered Gillig buses for replacement of the four 40-foot buses, with delivery dates as early as December 2015 and through January 2016.The new 30-foot buses will haveapproximately 30 seats and be equipped with bicycle racks and the systemís Advanced Fleet Management System. Total capacity for this size bus is 45-46 riders.†† Based upon ridership forecast for the new route, a 30 foot bus will accommodate anticipated loads.

 

40-foot CNG Gillig Bus Justification

The purchase of 25 40-foot CNG Gillig buses would replace nine 2002 NABI LNG buses and 16 2004 New Flyer LNG buses that have reached their useful life cycle of 12 years. The purchase of new buses would eliminate high maintenance costs associated with maintaining old buses.The new buses would lower the cost of maintenance per mile, increase the efficiency of the transit system, while providing our customers with more reliable service and increased comfort and reduce exhaust emissions through improved emission technology.The new buses will have a minimum of 40 seats andbe equipped with bicycle racks and the systemís Advanced Fleet Management System.†††

 

Staff recommends that Council authorize the City Manager to issue a Notice to Proceed to purchase four 30-foot buses at $577,961 per bus and 25 40-foot buses at $593,712 per bus, including tax, delivery, ADA compliance, and extended warranties.Additional costs in the amount of $500,000 for spare parts and $1,765,465 for contingency would bring the Notice to Proceed total amount not to exceed to $19,420,112.

 


 

At this time, staff recommends replacing 29 Transit buses in the following manner:

Recommended Purchase

Number of Buses

Purchase Justification

Delivery Schedule

30' CNG Powered Gillig buses

4

Replace (4) 2002 NABI LNG buses / Needed for Expo Phase II

December 2015 - January 2016

40' CNG Powered Gillig buses

25

Replace (9) 2002 NABI LNG buses and (16) 2004 New Flyer buses†††††††††††

20 months from issue of Notice to Proceed

Total number of buses recommended

29

 

 

 

 

The breakout of the purchases for 30-foot and 40-foot transit vehicles are as follows:

††††††††††† 30-foot CNG Vehicles

††††††††††† 4 CNG 30-foot, including tax and delivery †††††††††††††††††††† $2,141,258

††††††††††† ADA Compliance†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $131,584

††††††††††† Extended Warranty††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $39,000

††††††††††† Spare Parts†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $100,000

††††††††††† Contingency (10%)†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $241,184

††††††††††† Sub-total for 30-foot††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $2,653,026

 

††††††††††† 40-foot CNG Vehicles

††††††††††† 25 CNG 40-foot, including tax and delivery††††††††††††††††††† $13,776,655

††††††††††† ADA Compliance†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $822,400

††††††††††† Extended Warranty††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $243,750

††††††††††† Spare Parts†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $400,000

††††††††††† Contingency (10%)†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $1,524,281

††††††††††† Sub-total for 40-foot††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $16,767,086

 

††††††††††† Total Combined Purchase Amount††††††††††††††††††††††††††††† $19,420,112

 

Financial Impacts & Budget Actions

The Notice to Proceed with Gillig LLC is for an amount not to exceed $19,420,112.Funds in the amount of $9,512,573 are included in the FY 2014-15 Capital Improvement Program budget in account C410519.589000.Award of a $9,907,539 grant from the Federal Transit Administration requires the following FY 2014-15 budget changes:

1.    Establish revenue budget at account 41642.407516 in the amount of $9,907,539.

2.    Appropriate the following expenditures to reflect receipt of the Federal Section 5307 Formula Grant Funds:$9,907,539 at account C410519.589000.†††

 

Prepared by: Getty Modica, Transit Maintenance Officer

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Edward F. King

Director of Transit Services

 

Elaine M. Polachek

Interim City Manager

 

 

Attachment A Ė Pricing