Agenda Item: 13
CITY OF SANTA CLARITA
AGENDA REPORT
CITY MANAGER APPROVAL:
DATE: May 27, 2025
SUBJECT: CONTRACT WITH GILLIG CORPORATION FOR THE
MANUFACTURING AND DELIVERY OF TWO CNG BUSES
DEPARTMENT: Economic Development
PRESENTER: Adrian Aguilar
RECOMMENDED ACTION
City Council:
1. Award a contract to Gillig Corporation for the purchase of two 29-foot Compressed Natural Gas buses, for a total contract amount not to exceed $1,850,357.
2. Authorize the City Manager or designee to execute all contracts and associated documents, and modify the award in the event of 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 and 7-year life cycle for Dial-A-Ride vehicles. Two 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.
The City's local transit fleet is composed of all Compressed Natural Gas (CNG) buses. This purchase will allow the City to continue to improve fleet reliability, reduce emissions within the region, and improve the overall fuel economy of the City’s bus fleet. The buses proposed for purchase will also have new technology, such as improved suspension and UV air purifiers, that will improve the customer experience. The recommended action also aligns with the City’s capital replacement strategy, which calls for the replacement of approximately one-twelfth of the transit fleet each fiscal year.
After conducting extensive research to find the most competitive pricing and the highest quality vehicles, staff recommends using the City’s “piggyback” purchasing option for this procurement.
The use of "piggyback" purchasing allows the City to place orders against a competitively awarded public agency contract. The City intends to purchase these vehicles through the CalACT/Morongo Basin Transit Authority (MBTA) vehicle purchasing cooperative, of which the City is a member. This contract, which was awarded on July 25, 2024, was solicited through a competitive bid process and is valid through July 24, 2029.
As an added measure, City staff conducted a price analysis to ensure the proposed pricing is within industry standards and is the most advantageous to the City. The use of purchasing cooperatives is common within the transit industry and is a practice accepted by the FTA.
Upon approval by the City Council, the City will be able to replace two aging buses that have reached the end of their useful life and take advantage of recent developments in engine technology by replacing older, less-efficient vehicles. This purchase is also consistent with the City’s Zero Emissions Transition Plan, which calls for the purchase of CNG buses through 2028.
Based on current productions timelines, delivery of these buses is anticipated in late 2026.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The City has programmed Federal 5307 Transit Grant Funds to cover 80 percent of the total contractual cost of the buses. The remaining 20 percent will be funded using Municipal Operator Service Improvement Program (MOSIP) funds. Adequate funds for the purchase of one bus are included in the Fiscal Year 2024-25 budget in the amount of $887,415, Transit Capital Automotive Equipment account 7003702-520103. The remaining funds for the second bus, in the amount of $962,943, are included in the Fiscal Year 2025-26 proposed budget and will be available, contingent on City Council budget approval, in Transit Capital Automotive Equipment account 7003702-520103. There is no impact to the General Fund as a result of this procurement.
ATTACHMENTS
Price Sheet
Gillig RFP Proposal (available in the City Clerk's Reading File)