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SR-07-23-2013-3D0 City of City Council Report Santa Monica' City Council Meeting: July 23, 2013 Agenda Item: 3 -D To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Assignment of 16 Option Buses to Arlington County Transit Recommended Action Staff recommends that the City Council authorize the City Manager to: Negotiate and execute an assignment agreement with Arlington County Transit in Arlington, Virginia and North America Bus Industries Inc. (NABI) for the release of sixteen 40 -foot CNG low floor buses from contract No. 9175 (CCS). 2. Negotiate and execute an assignment agreement with other cities that request release of buses from contract No. 9175 (CCS) on an as- needed basis until the agreement expires on December 31, 2015. Executive Summary On May 27, 2010, the City executed contract No. 9175 (CCS) with NABI to purchase nine 40- foot CNG powered low floor buses with five one -year options to purchase up to 15 buses per option year. Arlington County Transit has petitioned the City to release sixteen 40 -foot CNG powered low floor buses from contract No. 9175 (CCS). Fifteen buses would be from option year three and one from option year four. The release of the option buses would enable Arlington County Transit to expedite their purchasing process by approximately eight months. The City would retain rights to the remaining 14 buses in option year four and 15 buses in option year five. The release of 16 buses would not be detrimental to the City as the Big Blue Bus does not intend to purchase buses from option year three or four of contract No. 9175 (CCS). 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 No. 9175 (CCS) until the agreement expires on December 31, 2015 or all options have been assigned. Discussion On Februar23 2010, Council approved award of Bid No. 2981 to North American Bus Industries, Inc. to purchase nine 40 -foot CNG powered low floor buses with options to purchase additional buses over a five -year period. On May 27, 2010, the City executed contract No. 9175 (CCS) with NABI to purchase nine 40 -foot CNG powered low floor buses with five one -year options to purchase up to 15 buses per option year. The City took delivery of the first nine buses in April 2011. Arlington County Transit has an immediate need for sixteen 40 -foot CNG powered buses. The purchase of the vehicles would enable Arlington to provide better transit services. The Big Blue Bus would like to assist Arlington County Transit by releasing the requested number of buses. The City currently has option rights to 15 buses in year three, 15 buses in year four and 15 buses in year five of contract No. 9175 (CCS). Given current and future anticipated operations, the release of the 16 buses would not be detrimental to the City. The Big Blue Bus would have 14 option buses remaining in option year four and 15 buses in option year five. Furthermore, the Big Blue Bus ordered 58 buses from Gillig LLC, contract No. 9591, approved by Council on June 12, 2012 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. Arlington County Transit would like the opportunity to participate on the City of Santa Monica's contract with NABI, which would allow Arlington County Transit to expedite the purchasing process and enable the purchase of vehicles approximately eight months earlier than issuing a separate Request for Proposal. 2 Staff recommends that the City release rights to sixteen 40 -foot buses to Arlington County Transit, 15 buses from option year three and one from option year four of contract No. 9175 and authorize the City Manager to release other option buses on an as- needed basis through December 31, 2015 providing that doing so does not infringe on future 40 -foot bus needs of the City of Santa Monica. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Funds for these buses were not included in the FY 2013 -14 CIP and for that reason, there is no immediate financial impact. Prepared by: Getty Modica, Transit Maintenance Officer Forwarded to Council: Edward F' King Rod Gould Director of Transit Servic s City Manager 3 Reference: Agreement No. 9772 (CCS)