Agenda Item: 7
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: April 9, 2024
SUBJECT: TERMINATION OF CONTRACT WITH EL DORADO NATIONAL
AND REPLACEMENT CONTRACT WITH NEW FLYER
CORPORATION FOR THE PURCHASE AND DELIVERY OF NEW
FUEL CELL BUSES
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
1. Authorize the City Manager or designee to terminate the two existing contracts will El Dorado National Corporation for the purchase and delivery of zero-emission fuel cell buses.
2. Authorize the City Manager or designee to negotiate and execute a contract with New Flyer Corporation for the purchase of four hydrogen fuel cell electric buses, training, and spare parts in an amount not to exceed $6,130,050, or modify the award in the event issues of impossibility of performance arise subject to City Attorney approval.
BACKGROUND
Santa Clarita Transit has a fleet replacement program that meets the Federal Transit Administration’s (FTA) 12-year life cycle for commuter and transit vehicles. Five of the City of Santa Clarita's (City) local buses have reached the end of their useful life and are scheduled to be replaced over the next 18 months.
As required by state law, the City Council adopted the City’s Zero Emissions Transition Plan in late 2020. This plan serves as a roadmap for the City to comply with the state mandate, which requires the City to have a 100 percent zero-emission bus fleet by 2040. In support of this effort, the City awarded a contract to El Dorado National for two zero-emission buses in April 2023 and a second contract for three zero-emission fuel cell buses in November 2023.
Due to supply chain issues and the bankruptcy of critical suppliers, REV Corporation, the parent
company of El Dorado National, decided to sell its school bus manufacturing division and close its transit bus manufacturing division by the end of 2024. The City received notification on January 29, 2024, that El Dorado National would not be able to manufacture and deliver the five buses currently under contract.
In order to maintain compliance with state regulations and the schedule outlined in the City’s Zero Emission Transit Plan, staff has requested pricing from New Flyer Corporation, the only other manufacturer of hydrogen fuel cell buses. The pricing was based on the State of California purchasing cooperative agreement. The use of purchasing cooperative agreements is common within the transit industry and is a practice accepted by the FTA.
To ensure the pricing provided by New Flyer was within industry standards, staff conducted a price analysis and compared the pricing provided to the City with other recent procurements throughout the region. While higher than the El Dorado pricing, New Flyer pricing is in line with current market conditions. Based on the available budget, staff recommends executing a contract with New Flyer Corporation for the purchase of four hydrogen fuel cell electric buses, training, and spare parts, in an amount not to exceed $6,130,050.
ALTERNATIVE ACTION
1. Direct staff to issue a Request for Proposal for the procurement of fuel cell buses.
2. Other action as determined by the City Council.
FISCAL IMPACT
There is no impact to the General Fund as a result of this procurement. The City has programmed Federal 5307 transit grant funds to cover 100 percent of the total contractual cost of the buses.
Adequate funds for this purchase are available in the expenditure account 7003702-520103 (Transit Capital-Automotive Equipment).
ATTACHMENTS
ENC Fuel Cell Order Cancellation
New Flyer of America Option Proposal (available in the City Clerk's Reading File)