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HomeMy WebLinkAboutAgenda Report - December 21, 2005 E-04AGENDA ITEM E"A CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Authorizing City Manager to Negotiate and Purchase Five Type 2 Medium Bus (Dial -A -Ride) Transit Vehicles Off of the State Contract, Authorizing Conversion of the Five Vehicles to Compressed Natural Gas (CNG) and Appropriating Funds ($425,000) MEETING DATE: December 21, 2005 PREPARED BY: Public Works Director RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City Manager to negotiate and purchase five Type 2 Medium Bus transit vehicles off of the State contract, authorizing conversion of the five vehicles to compressed natural gas (CNG), and appropriating funds as shown below. BACKGROUND INFORMATION: The City currently operates numerous CNG vehicles and a fueling station. The City's Transit Division currently operates a fleet of 25 transit vehicles. Of those 25 vehicles, 20 operate on CNG. The purchase of the five new vehicles would allow the City to reach its commitment to the Air Resources Board of a 100% CNG fleet. The City received grant funding to replace five gasoline transit vehicles in 2005106. The five new vehicles will replace five older gasoline vehicles in our fleet which will be sold out of state to meet the requirements of the grant funding. The five vehicles proposed are standard Dial -A -Ride style transit vehicles. Staff anticipates these vehicles will also be utilized in off hours for Fixed Route whenever possible. Staff is recommending that the five new gasoline vehicles be procured off of the State contract due to the limited availability of CNG vehicles and the ease of procurement provided by the State contract. After the purchase of the five gasoline vehicles, staff is recommending the City Council authorize the City Manager to negotiate a change order with Creative Bus Sales (the State contract holder) to convert the vehicles to CNG. Those five vehicles will then be converted to CNG prior to the City taking possession to comply with the grant funding requirements. The Transportation and Fleet and Facilities Managers are meeting with staff from the maintenance shop and transit operations to select the options available on the vehicles. The City has received a CMAQ grant for five vehicles in 2005106 from the San Joaquin Council of Governments, as well as Measure K funding for a portion of these vehicles. While it was anticipated that the grants would cover the entire cost, due to the limited availability of small CNG vehicles and the need to convert the vehicles to CNG, Transportation Development Act (TDA) funds may need to be utilized to fund the remainder of the purchase price. Grant funding will be utilized first with TDA funds used to cover any remaining balance, not to exceed $10,000 per vehicle. FISCAL IMPACT: The cost of five vehicles has been included in the budget for the Transit system at an estimated cost of $400,000. Failure to award the agreement could result in loss of the grant funding, which could result in higher maintenance costs as we would be forced to continue to maintain the old buses. FUNDING AVAILABLE: The bus purchases will be utilizing: Transportation Development ActtFares $ 50,000 Congestion Mitigation/Air Quality Funds $300,000 Measure K Transit Capi nds $ 75,000 Richard C. Prima, Jr. Public Works Director Prepared by Tiffani M. Fink, Transportation Manager cc: Fleet and Facilities Manager Transportation Manager APPROVED: f Blair Kinr, City Manager J:ITRANSITICSMSuses.doc 1211512006 RESOLUTION NO. 2005-257 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND PURCHASE FIVE TYPE 2 MEDIUM BUS TRANSIT VEHICLES THROUGH THE STATE CONTRACT, AUTHORIZING CONVERSION OF THE VEHICLES. TO COMPRESSED NATURAL GAS, AND FURTHER APPROPRIATING FUNDS WHEREAS, Lodi Municipal Code Section 3.20.070 authorizes dispensing with bids for purchases of supplies, services, or equipment when it is in the best interest of the City to do so; and WHEREAS, the City of Lodi currently operates numerous compressed natural gas (CNG) vehicles and a fueling station, and the City Transit Division currently operates a fleet of 25 transit vehicles, of which 20 operate on CNG; and WHEREAS, the purchase of five new vehicles would allow the City to reach its commitment to the Air Resources Board of a 100% CNG fleet; and WHEREAS, the City received grant funding to replace five gasoline transit vehicles in 2005-06; and WHEREAS, staff recommends purchasing five new gasoline vehicles to be procured through the State of California contract due to the limited availability of CNG vehicles and the ease of procurement provkled by the State contract; and WHEREAS, staff further recommends that the City Council authorize the City Manager to negotiate a change order with Creative Bus Sales to convert the vehicles to CNG. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to negotiate and purchase five Type 2 Medium Bus (Dial -A -Ride) Transit Vehicles through the State of California contract; and BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to negotiate a change order with Creative Bus Sales to convert the vehicles to CNG prior to the City taking possession to comply with the grant funding requirements; and BE IT FURTHER RESOLVED that funds be appropriated as follows: Transportation Development Act/Fares $ 50,000 Congestion Mitigation/Air Quality Funds $300,000 Measure K Transit Capital Funds $ 75,000 Dated: December 21, 2005 I hereby certify that Resolution No. 2005-257 was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 21, 2005, by the following vote: AYES: COUNCIL MEMBERS — Beckman, Hansen, Johnson, Mounce, and Mayor Hitchcock NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACiCSTON City Clerk 2005-257