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CC - Item 4C - Paratransit Bus Conversion and Back-Up M 4f 4 ° 0 1 ROSEMEAD CITY COUNCIL \ . f STAFF REPORT AtDRPogsrtD.95 TO: THE HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: JEFF ALLRED, CITY MANAGER Sic) DATE: SEPTEMBER S, 2015 SUBJECT: PARATRANSIT BUS CONVERSION AND BACK-UP SUMMARY On August 11, 2015 the City Council directed staff to enter into agreement with Southland Transit for paratransit services as well as converting the five new buses to propane. During recent contract discussions, Southland Transit has recommended that optimal service with back-up should include a total of seven buses instead of six, and that the propane conversions should be completed with the extended range fuel tank system that will be available in October 2015. Southland Transit has provided a letter dated August 26, 2015 (Attachment A) requesting both of these changes. Southland Transit owns the buses currently in use for the Rosemead Explorer and Dial- a-Ride programs and has offered to keep the two most reliable buses as back-up vehicles under the new contract. While there is no additional contract cost for the equipment, the cost to insure the buses is $27,000 annually. As this amount is in excess of the City Manager's signing authority, the Council must approve the additional cost as part of the new contract. For the propane conversion, the bus manufacturer's propane conversion subcontractor, Green Alternative Systems, has provided a quote per bus (Attachment B) to perform the conversion to the soon to be available 64 Gasoline Gallon Equivalent (GGE) propane system. The total cost of conversion per bus is $24,100. Since the City Council specifically approved an amount up to $20,700 (for a 40 GGE system) at the August 11, 2015 meeting, approval of an additional $3,400 per bus is requested for a total additional cost of $17,000. Funding for the additional insurance and conversion will be paid from existing Proposition A funds. Staff Recommendation That the City Council take the following actions to: 1. Authorize the City Manager to execute a contract for a revised amount to include the insurance costs of $27,000 for the two reserve buses, and; ITEM NO. 4.0 City Council Meeting September 8,2015 Page 2 of 2 2. Approve the propane conversion of the five new buses to the extended range 64GGE fuel capacity propane system at an additional cost of$3,400 per bus for a total additional cost of $17,000. FINACIAL IMPACTS The City's transit operations are funded through Proposition A and Proposition C funds, both of which are transportation taxes included in Los Angeles County Sales Tax. For the current fiscal year, Proposition A funds are programmed for the operation of the transit system with an available fund balance of approximately $250,000. The City Council previously approved the use of $103,500 for the propane conversion cost of $20,700 per bus. The remaining fund balance of approximately $150,000 will be utilized to fund the increased insurance cost of $27,000 and the additional costs of $17,000 for the propane conversion. Public Notice Process This item has been noticed through the regular agenda notification process. Submitted by: Anthony MatthL E. H w esworth Interim Public Works Director Assistant City Manager Attachments: A. Southland Transit Letter Dated August 26, 2015 B. Green Alternative Systems Quotation Attachment A AMP- mml Setting the Standard for Community ' Transit in Southern California Southland Transit Inc. August 26, 2015 Matt Hawkesworth City of Rosemead 8838 E Valley Blvd Rosemead CA 91770 SUBJECT: INSURANCE AND LARGER FUEL TANKS Dear Mr. Hawkesworth, Pursuant to your email request dated August 26, 2015 asking for further information regarding the use of the additional two (2) older Southland Transit, Inc. (STI) owned buses to act as spare/back-up buses and conversion of the fuel tank to the largest size possible. As you know, during the recent Request for Proposals (RFP) Process the City ordered five (5) new buses for use on the Rosemead Transit Services consisting of the Dial-A-Ride and Explorer Service. It was discovered during the process that five (5) buses will only cover the minimum peak bus requirements and the operator would be left without a spare bus. Furthermore, if a vehicle were to break down on both services (Dial-A-Ride and Explorer)there would be adverse impact upon service. Our recommendation is to utilize two (2) of our existing buses to ensure there is no issues with service. Furthermore, the current tanks in use upon the Rosemead Transit Service do not last the entire day and drivers have to constantly re-fuel midday. This only became an issue when the Explorer Service increased the hours to run later. It is imperative to have the larger fuel tanks to ensure service quality is not sacrificed and for the buses to last the entire day. It makes good operational sense to have the largest fuel tanks possible placed on the new buses that are on order. Southland Transit, Inc. (STI) is very proud to operate the services on behalf of the City of Rosemead and we truly value our relationship. Should you have any further questions please feel free to contact me at stransue(o.southlandtransit.com or by phone at 1 (626) 258 1310. Sipcere , Scott ransue Vice President/COO Cc: Wayne Seale, Michele Gamez- STI SOUTHLAND TRANSIT INC. 3650 ROCKWELL AVENUE,EL MONTE,CALIFORNIA 91731 626.258.1310•FAX 626 258.1329•INFOQSOUTHLANDTRANSIT.COM Attachment B G I S lkhartClaN 46517 (T) 574.343.1050 GREEN ALTERnATIVE SYSTEMS (F) 574.830.0063 Matt Hawkesworth August 24, 2015 City of Rosemead 8838 Valley Boulevard Rosemead, CA 91770 Dear Matt, Please review the proceeding information on the GAS Roush propane fueling system. GAS is a member of Ford's QVM program; all of the fueling system quoted,comply with the standards of the QVM program. Roush Propane Fueling System -E450 Chassis GASP-E450-SFS2-16-A $18,900.00 (64GGE Fuel Capacity- Extended Range System) • This system requires the 2o16MY E450 6.8L Vio 2-Valve engine with the Ford 91G gaseous prep engine package. • Hardened seats and valves can be installed into the engine,however,any warranty for the Ford chassis and engine is the responsibility of Ford. The installation of the hardened seats and valves should be reviewed with an authorized Ford dealer to understand the implications to the Ford OEM warranty. Option Pricing Installation of the Ford Hardened Seats and Valves $5,200.00 (Aftermarket- Ford Authorized Dealer Price) Please let me know if you have any questions or require any further detailed information. Thank you, Sean P. Connolly