File #: 2015-1699   
Type: Contract Status: Passed
File created: 12/14/2015 In control: System Safety, Security and Operations Committee
On agenda: 1/21/2016 Final action: 1/28/2016
Title: APPROVE the FY16 budget amendment of $42,900,000 for the acceleration of FTA Section 5307 Federal Funding for FY16 to support the 900 Bus Acquisition (project 201056).
Sponsors: System Safety, Security and Operations Committee
Indexes: Budget, Budgeting, Bus Acquisitions, Contracts, Federal Transit Administration, Ontario, Program, Project, Purchase 550 40-Foot Buses For Fleet Replacement (Project), Safety and security, Section 5307, Security, System safety
Attachments: 1. Attachment A - September Board Report, 2. Attachment B - Uses and Sources Table
Meeting_Body
SYSTEM SAFETY, SECURITY AND OPERATIONS COMMITTEE
JANUARY 21, 2016

Subject/Action
SUBJECT: ACCELERATE FEDERAL FUNDING FOR FY16 TO SUPPORT THE 900 FORTY-FOOT BUS ACQUISITION PROJECT
ACTION: APPROVE FY16 BUDGET AMENDMENT OF $42.9 MILLION

Heading
RECOMMENDATION

Title
APPROVE the FY16 budget amendment of $42,900,000 for the acceleration of FTA Section 5307 Federal Funding for FY16 to support the 900 Bus Acquisition (project 201056).

Issue
ISSUE

The FY16 Budget for $5.568B was approved at the May 21, 2015 Board meeting, which included $97.5M for the 900 Forty Foot Bus Acquisition project. Staff anticipated that bus delivery for the 350 bus option would occur through FY17 and the project would be completed within the adopted Life of Project (LOP) Budget of $503.4 million.

Discussion
DISCUSSION

The Contract delivery requirement for the 900 Bus Buy Contract is 8 buses per week for both the 550 Base buy and the 350 Option buy. Due to agency financial constraints in FY16, New Flyer agreed to reduce the weekly delivery rate of the Option buy buses from 8 buses per week to between 5-6 buses per week for the duration of production. At the current rate of production, New Flyer will deliver approximately 257 buses during FY16.

As part of the 900 Bus Buy Contract, New Flyer made a commitment to create new jobs under the U.S. Employment Program. Included in New Flyer's U.S. Employment Program was a commitment to employ approximately 50 new workers to perform final assembly work on Metro buses at its manufacturing facility in Ontario, CA. During negotiations for the 350 Bus Option, New Flyer agreed to reduce the delivery rate from 8 buses per week to 5-6 buses per week without impact to their U.S. Employment Program commitment. If Metro were to reduce the delivery rate to below 5-6 buses per week it will have a negative impact on the U.S. Employment Program that could lead to layoffs at New Flyer's Ontario, CA facility.
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