Administrative
Report
H.13., File # 23-5814 Meeting Date: 4/18/2023
To: MAYOR AND CITY COUNCIL
From: CAMERON HARDING, COMMUNITY SERVICES DIRECTOR, WENDY COLLAZO,
FINANCIAL SERVICES DIRECTOR
TITLE
ADOPT BY 4/5THS VOTE AND BY TITLE ONLY RESOLUTION NO. CC-2304-040 A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING A 2022-2023 FISCAL YEAR BUDGET MODIFICATION TO APPROPRIATE $243,944.88 IN AVAILABLE FEDERAL TRANSIT ADMINISTRATION 5307 FUNDS TO THE OTHER GOVERNMENTAL GRANTS FUND AND $60,986.22 IN AVAILABLE PROPOSITION A LOCAL
RETURN TRANSPORTATION FUNDS TO THE TRANSIT FUND
EXECUTIVE SUMMARY
On December 21, 2021, the City Council approved the procurement of five (5) transit vehicles in the amount of $2,797,910.30 to replace Beach Cities Transit fixed route buses that were exceeding their useful life standards. The vehicles were ordered at that time and have been under construction.
The costs for materials and supplies have increased during the past year due to supply chain issues that have impacted all industries, which has resulted in a cost increase for the buses. The proposed budget modification allows the City to fund the First Amendment with Creative Bus Services, Inc. (CBSI) for the increased amount of $304,931.10.
Beach Cities Transit (BCT) is responsible for providing safe, efficient and cost-effective transportation programs to Redondo Beach and South Bay residents and visitors. Operation of the BCT system fixed routes and WAVE dial-a-ride helps the City of Redondo Beach reduce carbon emissions and mitigates congestion in the South Bay. As a recipient of Federal Transit Administration (FTA) funds, BCT must comply with the FTA’s vehicle replacement and procurement requirements.
The funds to be used for vehicle purchase include Federal Transit Administration (FTA) 5307 Grant funds, Measure R Clean Fuel Funds, and Proposition A Local Return Funds. These funding sources are restricted to transportation system uses. No General Fund money will be used for the purchase.
BACKGROUND
BCT operates a fleet of 20 transit vehicles. On December 21, 2021, City Council approved the procurement to replace five (5) Compressed Natural Gas (CNG) powered transit vehicles, for $2,797,910.30, which is funded with 80% of FTA 5307 funds and 20% Local Transit funds. The City purchased the vehicles from CBSI and leveraged the federally approved 2018 California Association for Coordinated Transportation (CALACT)/Morongo Basin Transit Authority (MBTA) Vehicle Purchasing Cooperative Agreement. The procurement amount of $2,797.910.30 has been previously
H.13., File # 23-5814 Meeting Date: 4/18/2023
encumbered in a Purchase Order.
Due to industry-wide supply chain and material delays and shortages, CALACT/MBTA performed a cost analysis of the 2018 procurement. The analysis showed that the rate increases included in the original Cooperative Purchasing Agreement were below actual costs. As a result, CALACT/MBTA amended the 2018 Purchasing Cooperative Agreement with force majeure price increases.
The Budget Modification authorizes the appropriation of FTA 5307 Grant funding in the amount of $243,944.88 and the appropriation of Proposition A Local Return funding in the amount of 60,986.22.
The appropriations will allow the City to fund the first amendment with CBSI for the purchase price increase of $304,931.10.
BCT’s fixed route system operates the 102 and 109 bus lines, two fixed route lines providing north/south service connecting the South Bay beach cities - Redondo Beach, Hermosa Beach, Manhattan Beach and El Segundo. The WAVE is a paratransit service for senior/disabled residents of the cities of Redondo Beach and Hermosa Beach. Service information, including schedules and maps, is located in the Transit section on the City’s website.
COORDINATION
The Community Services Department coordinated with the Financial Services Department and the City Attorney’s Office to prepare this item. The Agreement has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
FTA 5307 Grant Funding, Measure R Clean Fuel Funds and Proposition A Local Return Funds are the Transit Fund revenue sources that will be used for the procurement of the five (5) vehicles. City Council previously approved $2,797,910.30 of funds in the FY 2021-22 Budget for the vehicle purchase. Those funds have been encumbered and carried-over in the FY 2022-23 budget. The recommended funding allocations needed to cover the purchase price increase will be provided by transportation restricted monies. No General Funds will be used for the purchase of the transit vehicles.
Funding FY 2022-23 Expenditures FY 2022-23
Additional FTA 5307 Funds $243,944.88 Cost Increase $302,931.10 Prop A Local Return Funds $60,986.22 Contingency $ 2,000.00 Total $304,931.10 Total $304,931.10
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - #CC-2304-040 Budget Modification
· Agmt - First Amendment to Agreement with Creative Bus Services, Inc. · Agmt - Original Agreement with Creative Bus Services, Inc., December 21, 2021 · Certificate of Insurance - Creative Bus Services, Inc.
H.13., File # 23-5814 Meeting Date: 4/18/2023