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sr-121410-3fCity Council Meeting: December 14, 2010 Agenda Item: To: Mayor and City Council From: Stephanie Negriff, Director of Transit Services Subject: Exercise Option to Purchase Five Articulated CNG Transit Coaches and Spare Parts Recommended Action Staff recommends that the City Council: 1) Authorize the City Manager to negotiate and execute a modification to Contract #2969 with North American Bus Industries Inc, (NABI), an Alabama-based company, in the amount of $5,187,207 to purchase five low-floor articulated Compressed Natural Gas (CNG) transit coaches and miscellaneous spare parts. 2) Authorize the City Manager to issue a Notice to Proceed. Executive Summary Staff recommends exercising an option on an existing contract to procure five alternative fuel transit coaches for $4,715,643 including tax, plus a 10% contingency of $471,564. The total option order of five coaches is $5,187,207. The five vehicles recommended for purchase will replace five 1995 diesel powered 40-foot buses which have exceeded their 12-year useful life cycle. In addition to the efficiency enhancements that the new subfleet will provide, the buses will reduce peak period overcrowding on Rapid Bus services, improving passenger comfort and service quality. The total option order cost of $5,187,207 will be funded using Federal, State and County transit sales tax funds. Background In June 2005, Big Blue Bus implemented its first Bus Rapid Transit (BRT) route on Lincoln Boulevard and began a second BRT line on Pico Boulevard in September 2008. Upon inception, these lines were determined to be ideal for using 60-foot articulated buses, due to the routes' straight-line configuration and high ridership demand. 1 Discussion Vendor Selection In February 2009, the City published Notices Inviting Bids to furnish and deliver up to 21 60-foot advanced design, low floor, alternative fuel transit coaches in accordance with City specifications. Bid forms were posted on Planet Bids, the City's electronic. bidding system," and notices were advertised in accordance with City Charter and Municipal Code provisions. One bid was received and publicly opened on April 22, 2009. Previous Council Actions On June 9. 2009, Council authorized the purchase of 11 articulated low-floor CNG transit coaches and miscellaneous spare parts from NABI for a total not to exceed $11,628,563. On March 9, 2010, Council exercised an option to purchase five additional buses and spare parts from NABI for a total not to exceed $4,898,946. The option on today's agenda purchases the last five of the original 21 buses in the executed contract. The City has the ability to exercise additional options through June 30, 2014. Financial Impacts & Budget Actions The contract modification to be awarded to NABI is $5,187,207 including: Five coaches including tax and spare parts: $4,715,643 Contingency (10%) $471,564 The project is funded by the FTA Section 5307 Capital Funds. Funds for this purchase are available in account 0410519.589000. Prepared by: Ralph Merced, Transit Maintenance Manager Approved: She anie Negriff Dtfector of Transit Services Forwarded to Council: Rod Gould City Manager 2 Reference Amended Contract No. 2969 (CCS).