Administrative
Report
H.12., File # 23-6028 Meeting Date: 5/16/2023
To: MAYOR AND CITY COUNCIL
From: CAMERON HARDING, COMMUNITY SERVICES DIRECTOR
TITLE
APPROVE AN AMENDMENT TO THE AGREEMENT WITH CREATIVE BUS SALES, INC. TO PURCHASE 5 CLASS H LOW FLOOR BUS ELDORADO NATIONAL PASSPORT EZ RIDER BRT II 32’ BUSES, UNDER THE FEDERALLY APPROVED COOPERATIVE PURCHASE AGREEMENT
WITH THE CALIFORNIA ASSOCIATION FOR COORDINATED TRANSPORTATION/MORONGO
BASIN TRANSIT AUTHORITY VEHICLE PURCHASING COOPERATIVE FOR AN INCREASED PURCHASE AMOUNT OF $304,931.10
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 are exceeding their useful lifespans. 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, and have resulted in a change in total price for the buses of $304,931.10.
On April 18, 2023, the City Council approved the FY 2023-23 budget modification authorizing the appropriation of Federal Transit Administration 5307 funds and Proposition A Local Return Transportation Funds to fund the first amendment with Creative Bus Sales, Inc. (CBSI) for an additional $304,931.10 due to the increased costs.
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 only. No General Fund money will be used for the purchase of the buses.
BACKGROUND
BCT operates a fleet of 20 transit vehicles. On December 21, 2021, City Council approved the procurement of five (5) replacement Compressed Natural Gas (CNG) powered transit vehicles, for $2,797,910.30. Eighty percent of the purchase is funded by FTA 5307 funds and twenty percent is from local transit funds. The City purchased the vehicles from CBSI and leveraged the federally
H.12., File # 23-6028 Meeting Date: 5/16/2023
from 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 encumbered in a Purchase Order. The buses are expected to be delivered by August 2023.
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 first amendment to the Agreement increases the CBSI Agreement total by $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 Agreement has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Funding for the amendment is provided by transportation restricted funds. No general fund money will be used for the acquisition of these buses.
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
· Agmt - First Amendment to Agreement with Creative Bus Sales, Inc. · Agmt - Original Agreement with Creative Bus Sales, Inc., December 21, 2021 · Insurance - Creative Bus Sales, Inc.