CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 8.5 AGENDA TITLE: Adopt resolution approving the acquisition and transfer of ownership of five 2006 CNG Orion VII buses from the Transit Joint Powers Authority for Merced County to the City of Elk Grove for service utilization in e-tran s bus fleet MEETING DATE: February 10, 2016 PREPARED BY: DEPARTMENT HEAD: Jean Foletta, Transit System Manager Mike Costa, Transit Planner Bob Murdoch, Director of Public Works RECOMMENDED ACTION: Staff recommends the City Council adopt a resolution approving the acquisition and transfer of ownership of five 2006 Compressed Natural Gas (CNG) Orion VII buses from the Transit Joint Powers Authority for Merced County (TJPAMC) to the City of Elk Grove for service utilization in e-tran s bus fleet. BACKGROUND INFORMATION: The City of Elk Grove s e-tran fleet currently consists of 58 CNG buses, ranging in manufacture year from 2000 to 2015. A maximum of 46 buses are used at any given time during peak service periods, leaving 12 buses to serve as spare service vehicles. Federal Transit Administration (FTA) regulations identify that a fleet of 50 vehicles or more should maintain a minimum 20% spare vehicle ratio. The City currently maintains a 26% percent spare ratio. 1
Elk Grove City Council February 10, 2016 Page 2 of 3 DISCUSSION: In coordination with the City s Fleet and Facilities Division, Transit staff has identified the need to replace 11 buses within the next two to three years based on meeting their FTA useful life and CNG tank expiration date. The oldest buses in the fleet are six buses manufactured in 2000. These buses were refurbished in 2014 and have at least two years of useful life remaining. The City has no buses manufactured in 2001. The buses next in line to be replaced are seven 2002 Orion VII buses and four 2003 Orion V buses. Staff has applied for regional funding administered by the Sacramento Area Council of Governments (SACOG) to replace nine older buses in the next three years. The cost to replace nine buses corresponds to the maximum funding available. However, it is more likely that the City will only receive funding for five to seven new buses. Considering this scenario, staff has researched and coordinated with other transit agencies to acquire buses in order to ensure that an adequate spare ratio can be maintained at all times. Staff contacted the TJPAMC, which currently has five 2006 CNG Orion VII buses available to be acquired at no cost. On January 15, 2016, the City s Transit and Fleet Maintenance staff conducted a site visit to inspect the buses condition. All five buses are in relatively good condition with five years of useful life remaining, and can be placed into service following re-branding and some general maintenance and repair work. Pursuant to FTA Circular 5010.1D, buses purchased with Federal funding where the useful life has not been met, Federal interest of the buses is required to be transferred to the agency acquiring the vehicles. This ensures that the vehicles are maintained in compliance with Federal requirements until the end of their FTA useful life. All five of Merced s buses have not yet reached their FTA useful life as noted above. Should the City Council approve the acquisition and ownership transfer of these buses, City staff will coordinate with TJPAMC staff to contact the FTA regional office and complete the documentation needed to transfer the FTA interest from TJPAMC to the City. In accordance with Federal requirements, the City would assume the remaining Federal interest in the received buses, agree to maintain the buses for active service for the duration of the buses FTA useful life, add the buses to the City s equipment inventory records, and include the buses in the City s rolling stock status report. 2
Elk Grove City Council February 10, 2016 Page 3 of 3 FISCAL IMPACT: The TJPAMC has offered the five 2006 CNG Orion VII buses to the City at no charge. This will not result in any direct impact to the City s General Fund. Any post acquisition rebranding or maintenance work will be conducted using funding that is currently available in Transit s FY 2015-16 Budget. The total estimated cost to re-brand all five buses is $25,000. ATTACHMENT: 1. Resolution 3
ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK GROVE APPROVING THE ACQUISITION AND TRANSFER OF OWNERSHIP OF FIVE 2006 CNG ORION VII BUSES FROM THE TRANSIT JOINT POWERS AUTHORITY FOR MERCED COUNTY TO THE CITY OF ELK GROVE FOR SERVICE UTILIZATION IN E-TRAN S BUS FLEET WHEREAS, the City of Elk Grove (City) has identified a need to replace a total of 11 Compressed Natural Gas (CNG) buses within the next two to three years; and WHEREAS, the Transit Joint Powers Authority of Merced County (TJPAMC) has five 2006 CNG Orion VII buses available for the City to acquire at no cost, which the City needs in order to ensure that an adequate spare ratio can be maintained at all times; and WHEREAS, the City of Elk Grove, as a direct recipient (grantee) of Federal funding; and the TJPAMC, also a direct recipient (grantee) of Federal funding, seek to engage in a no-cost, grantee-to-grantee transfer of five (5) 2006 Orion VII buses, 35- foot in length and CNG-powered (rolling stock), in accordance with Federal Transit Administration (FTA) Circular 5010.1D, which would result in a mutually beneficial agreement for both parties; and WHEREAS, the City of Elk Grove, as the receiving grantee, would assume the remaining, depreciated Federal interest in received equipment, agree to maintain the received equipment for active service for the duration of its useful life in accordance with FTA requirements, add the equipment to the City s equipment inventory records, and include the buses in the City s rolling stock status reports; and WHEREAS, while the City of Elk Grove would receive a transfer of ownership from the TJPAMC for the specified buses, to include pre-installed transit related equipment, at no cost for the acquisition, the City would assume all costs associated with transfer of title, transporting and preparing the buses for service. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Elk Grove adopts a resolution to acquire and transfer five 2006 CNG Orion VII buses from TJPAMC to the City of Elk Grove for service utilization in e-tran s bus fleet. The following buses will be transferred from TJPAMC to the City of Elk Grove: TJPAMC Vehicle Number VIN Number M-90 1VHGF3T2256702082 M-91 1VHGF3L2856702135 M-92 1VHGF3L2X56702136 M-97 1VHGF3L2856702149 M-98 1VHGF3L2456702150 BE IT FURTHER RESOLVED that the City Council of the City of Elk Grove authorizes the City Manager, or her designee, to execute and submit all required FTA documents necessary to transfer ownership of the buses from TJPAMC to the City pursuant to Federal regulations. 4
PASSED AND ADOPTED by the City Council of the City of Elk Grove this 10 th day of February 2016. GARY DAVIS, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY 5