SR-06-10-2014-3CC Yof City Council Report
Santa Monica'
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.
Background
BBB currently operates 37 Liquid Natural Gas (LNG) NABI buses which were
purchased in 2002. Federal Transit Administration (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
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efficiencies, further reducing exhaust emissions through improved emission technology,
and providing our customers with increased comfort.
Discussion
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,
and warranty in conformance with Agreement No. 9855 for a total amount of
$6,763,405. The breakout of the purchase for 11 transit vehicles as follows:
11 Transit 40 -foot Coaches including Tax & Delivery $5,777,453
Spare Parts $236,304
ADA $339,031
Extended Warranty $88,550
Contingency $322,067
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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 0410519.589000. Future year
funding is contingent on Council approval and budget adoption.
Prepared by: Getty Modica, Transit Maintenance Officer
Approved:
Edward F. King V
Director of Transit Services
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Forwarded to Council:
Rod Gould
City Manager