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CC - FOUR-FITHS VOTE REQUIREMENT - Approval of (1) a Budget Amendment Appropriating $80,000 of Proposition C Discretionary Funds to the Transportation Department, (2) a Lease Agreement with Shuttle Bus Leasing for the Acquisition of Two Advanced Design, Heavy-Duty, Low Floor, New Flyer Compressed Natural Gas (CNG) Transit Buses for a Term Ending on June 30, 2016 (with an Option to Extend the Agreement for Two Additional Months) in an Amount Not-to-Exceed $71,000.
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CC - FOUR-FITHS VOTE REQUIREMENT - Approval of (1) a Budget Amendment Appropriating $80,000 of Proposition C Discretionary Funds to the Transportation Department, (2) a Lease Agreement with Shuttle Bus Leasing for the Acquisition of Two Advanced Design, Heavy-Duty, Low Floor, New Flyer Compressed Natural Gas (CNG) Transit Buses for a Term Ending on June 30, 2016 (with an Option to Extend the Agreement for Two Additional Months) in an Amount Not-to-Exceed $71,000.
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Contact Person/Dept: Paul Condran/Transportation
Phone Number: (310) 253-6520
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (12/10/15)
Department Approval: Art Ida, Director of Transportation (12/01/15)
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RECOMMENDATION
Staff recommends the City Council approve (1) a Budget Amendment appropriating $80,000 of Proposition C Discretionary Funds to the Transportation Department in the City Council Adopted Budget for Fiscal Year 2015/2016 and (2) a Lease Agreement with Shuttle Bus Leasing for the acquisition of Two (2) advanced design, heavy-duty, low floor, New Flyer compressed natural gas (CNG) transit buses for a term ending on June 30, 2016 (with an option to extend the agreement for two additional months) in an amount not-to-exceed $71,000.
A Budget Amendment Requires a 4/5th Vote.
BACKGROUND
To accommodate increasing demand for transit services as a result of the Line 4 extension to Playa Vista, staff recommends that the City Council approve a lease agreement for two transit buses. These buses will be retained until Culver City accepts delivery of 18 new transit buses with an estimated delivery date of June 2016. The Transportation Department's current fleet of 54 transit buses cannot sustain permanent in-service use of two additional buses while ensuring the safe and reliable maintenance, repairs, and statutory requirements services of the fleet.
DISCUSSION
Transportation Department staff has contacted several transit bus lease providers regarding the possible short-term lease of two CNG powered transit buses meeting the City's specifications and needs to serve existing and future transit routes during Fiscal Year 2015/2016. Staff contacted three vendors to obtain quotes for the lease of 40' transit vehicles. Two vendors (Creative Bus and A-to-Z Bus Sales) declined to provide quotes, while Shuttle Bus Leasing provided a quote of $3,500 per month, per-vehicle.
Staff recommends a lease period of six months during the existing Fiscal Year, but is requesting that sufficient funding be appropriated for an additional two months should an extension be required. In addition to lease costs, one-time preparation costs, including painting and equipment installation, will be required prior to the buses' deployment.
Pursuant to Culver City Municipal Code Section 3.07.085.C.7, the leasing of the transit buses is exempt from the formal competitive bid process, as it is a rental of equipment or other personal property.
The proposed budget amendment is calculated as follows:
Cost of Lease (two buses, 8 months) $56,000
One-Time Cost of Painting (paid to Shuttle Bus Leasing) $15,000
One-Time Preparation Cost (paid to third party vendors) $ 9,000
TOTAL $80,000
FISCAL ANALYSIS
Sufficient funds to pay for the cost of the two leased buses are available from Prop C Discretionary MOSIP funds for capital expenses. The proposed budget amendment would appropriate funding from that source to Transportation Department account 20370300.732100.
No general fund monies will be used for this acquisition.
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
1. Approve a Budget Amendment appropriating $80,000 of Proposition C Discretionary Funds to the Transportation Department in the City Council Adopted Budget for Fiscal Year 2015/2016; and,
2. Approve a lease agreement with Shuttle Bus Leasing for the lease of two (2) CNG powered forty-foot (40') low floor, heavy duty, New Flyer buses for a term ending June 30, 2016 (with an option to extend the agreement for two additional months) in an amount not-to-exceed $71,000; and,
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the City Manager to execute such documents on behalf of the City.
A Budget Amendment Requires a 4/5ths Vote.