REPORT TO THE CITY COUNCIL FROM: GREGORY A. BARFIELD, M.A., Interim Director Department of Transportation BY: RODOLFO CASTRO, Fleet Manager Department of Transportation BLAKE RINCON, Fleet Operations Specialist Department of Transportation SUBJECT ..Title Approval of a Product Purchase Utilizing a Washington Statewide Contract with Gillig LLC. for Twelve (12) 40' Low Floor CNG buses in the amount of $11,020,284. ..Body RECOMMENDATION Staff recommends approval of a product purchase utilizing a Washington statewide contract with Gillig LLC. for twelve (12) 40' low floor CNG buses in the amount of $11,020,284. EXECUTIVE SUMMARY The Department of Transportation/Fresno Area Express (FAX) seeks to purchase twelve (12) 40' Low Floor Compressed Natural Gas (CNG) buses from Gillig LLC (Gillig). This purchase is part of the FAX effort to: replace vehicles that have exceeded their useful life, improved quality and reliability of service, and allow for the compliance with the California Air Resource Board (CARB) Innovative Clean Transit (ICT) regulation. This contract is a State Cooperative Purchasing Schedule Contract (SCPC) under Section 3019 of the FAST Act and compliant with FTA Guidelines. The state of Washington, through the Department of Enterprise Services (DES), has contracted with Gillig to provide transit buses and related equipment to multiple participants, including transit organizations from other states. The contract incorporates FTA required clauses and certifications. BACKGROUND CARB issued the ICT regulation, effective October 1, 2019, requiring all transit agencies to gradually transition all bus and paratransit vehicles to a 100 percent zero-emission fleet by 2040. To meet this goal, FAX developed our ICT Transition Plan, which was approved by Council on June 18, 2020. Per the schedule detailed in the ICT Transition Plan, FAX must procure a mix of compressed natural gas (CNG) buses, battery electric buses (BEBs), and hydrogen fuel cell electric buses (FCEBs) to meet our service requirements. The CNG buses from this procurement will replace aging CNG rolling stock deemed past its useful business life. FAX believes one more order of CNG buses will need to occur. FAX sought competitively bid cooperative agreements for CNG buses at a discounted rate in April of 2023. FAX staff has evaluated Gillig's proposal and determined the contents of the cooperative purchase meet both City and Federal procurement requirements. Staff also conducted a price analysis, and determined the CNG bus cost is found to be fair and reasonable. The cooperative purchase agreement also conforms to the requirements of FTA C 4220. 1F, Chapter IV, 2(14)(i), which dictates that rolling stock agreements must not exceed the five-year limit. It is the recommendation of staff that City Council approve the use of Washington State Cooperative Purchase #06719 to procure twelve (12) Gillig 40' CNG buses. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, this vehicle purchase does not constitute a project for the purposes of CEQA. LOCAL PREFERENCE Local preference is not applicable as federal funds preclude the use of local preference. FISCAL IMPACT There is no fiscal impact to the General Fund from this action. Purchases from this contract shall be funded primarily through FTA Program 5339(c) funds. FAX enterprise funds will make up the required local match. Appropriations were included and are available in the FAX FY2024 budget. Attachments: State Cooperative Purchasing Contract Gillig Quote