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SR-03-19-2013-3BCity of City Council Report Santa Moniel City Council Meeting: March 19, 20113 Agenda Item: 3-8 To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Assignment of One 60 -Foot Articulated Bus to the City of Fort Collins, Colorado Recommended Action Staff recommends that the City Council authorize the City Manager to: 1. Negotiate and execute an assignment agreement with the City of Fort Collins, Colorado and North America Bus Industries (NABI) for the release of one 60 -foot articulated bus from contract agreement No. 9126. 2. Negotiate and execute an assignment agreement with other cities that request release of buses from contract agreement No. 9126 on an as- needed basis until the agreement expires on August 31, 2014. Executive Summary The City of Fort Collins has petitioned the City to release one 60 -foot articulated bus from option year four of contract agreement No. 9126 in order to expedite the purchasing process by approximately eight months and enable them to provide better services to their community. The City would retain rights to the remaining 14 buses in option year four and 15 buses in option year five. Staff recommends that the City release rights to one articulated bus to the City of Fort Collins from option four of contract agreement No. 9126. The release of one bus in option year four will not be detrimental to the City as the Big Blue Bus does not intend to purchase buses from this option year. Staff also recommends that Council authorize the City Manager to negotiate assignment agreements with other municipalities and government agencies that wish to purchase option buses from contract agreement No. 9126 until the agreement expires on August 31, 2014. 1 Discussion On June 9, 2009, Council approved award of Bid No. 2969 to North American Bus Industries to purchase 11 articulated buses with options to purchase additional buses over a four -year period. On September 29, 2009, the City executed contract agreement No. 9126 with NAB[ for the purchase of 11 articulating buses with four one -year options to purchase up to 15 buses per option year. The City took delivery of the first 11 buses and shortly after petitioned to exercise two option orders for a total purchase and delivery of 21 articulated buses. The City of Fort Collins has an immediate need for one articulated bus which will enable them to provide better transit services to their community. The Big Blue would like to assist the City of Fort Collins. The City currently has option rights to 15 buses in year four and 15 buses in year five of contract agreement No. 9126. The release of one bus in option year four will not be detrimental to the City as the Big Blue Bus does not intend to purchase buses from this option year. Federal purchasing regulations allow transit properties to procure vehicles and equipment by "piggybacking" on another agency's purchase. Piggybacking is the post - award use of a contractual process that allows an agency that was not involved in the original competitive procurement to purchase the same supplies /equipment through that original process. The City of Fort Collins would like the opportunity to participate on the City of Santa Monica's contract agreement with NABI, which will allow the City of Fort Collins to expedite the purchasing process and enable them to purchase the vehicle approximately eight months earlier than issuing a separate Request for Proposal. Staff recommends that the City release rights to one articulated bus to the City of Fort Collins from option four of contract agreement No. 9126 and to release other option buses on an as- needed basis permitting that doing so does not infringe on future articulated bus needs of the City of Santa Monica. 2 Financial Impacts & Budget Actions There are no immediate financial impacts or budget actions necessary as a result of the release of rights to one option bus. Prepared by: Getty Modica, Transit Maintenance Officer Approved: Edward F. King Director of Transit 3 Forwarded to Council: e Rod Gould City Manager Reference Contract No. 9720 (CCS)