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HomeMy WebLinkAboutAGENDA REPORT 2009 1021 CC REG ITEM 10E ITEM 10.E. CITY OF MOORPARK.CALAFORM�u City Council Meeting of /P A 009 ACTION: MOORPARK CITY COUNCIL AGENDA REPORT 3Y: � TO: Honorable City Council FROM: Yugal K. Lall, City Engineer/Public Works Director Prepared by: Shaun Kroes, Senior Management Analyst- DATE: October 8, 2009 (CC meeting of 10/21/2009) SUBJECT: Consider Change to Purchase Order from Creative Bus Sales to El Dorado National for Three Compressed Natural Gas (CNG) Transit Buses BACKGROUND/DISCUSSION On July 1, 2009, the City Council approved the purchase of three, 32-foot, El Dorado National Compressed Natural Gas (CNG) buses with a seating capacity of 27 passengers per bus from Creative Bus Sales. City staff has recently obtained feedback that per Federal Transportation Administration guidelines, the City needs to issue a purchase order directly to El Dorado National instead of Creative Bus Sales. El Dorado National is the manufacturer of the EZ Rider II bus. Creative Bus Sales is the California dealer for El Dorado National and is responsible for receipt of vehicle delivery, state licensing, etc. The City will still go through Creative Bus Sales as far as coordinating the production of the buses. Creative Bus Sales receives a per-bus fee from El Dorado National and does not lose its revenue source as a result of the purchase order change. The delivery of buses remains on schedule, and is expected in early summer 2010. FISCAL IMPACT The purchase of the buses is cost neutral as the City will receive up to $1,260,000 in American Recovery and Reinvestment Act (ARRA) reimbursement funding for expenditures associated with the bus purchase. The current purchase order with Creative Bus Sales will be rescinded and a new purchase order in the same amount ($1,200,000) will be generated to El Dorado National. SAPublic Works\Everyone\Reports\Staff Reports\2009\0ctober\10-21-2009(El Dorado Bus Purchase).doc 247 Honorable City Council October 21, 2009 Page 2 STAFF RECOMMENDATION Rescind Purchase Order Number 09000003 to Creative Bus Sales and authorize the City Manager to issue a new purchase order to El Dorado National for the purchase of three CNG buses in an amount not to exceed $1,200,000. SAPublic Works\Everyone\Reports\Staff Reports\2009\0ctober\10-21-2009(EI Dorado Bus Purchase).doc 248