Subject: REPORT ON RFP FOR ALTERNATIVE FUEL SHUTTLE BUS
COUNCIL DISTRICT: City-Wide
Report on Request for Proposals and Approval to reject all proposals for lease and maintenance of compressed natural gas (CNG) shuttle buses for the San Jose International Airport; and adoption of a resolution authorizing the Director of General Services to negotiate and execute an agreement with Penske Truck Leasing Co., L.P. for a seven year lease and maintenance of CNG buses for a first year cost not to exceed $2,950,000.
BACKGROUND
On October 5, 1999, City Council (Item 9f) approved a 7-year lease and maintenance agreement with Penske Truck Leasing Co., L.P. to provide and maintain a new fleet of 20 clean diesel parking shuttle buses. On March 28, 2000, City Council approved an amendment for a 2-year Lease and Maintenance agreement with a 1-year option with Penske Truck Leasing Co., L.P. to add 17 used 1992 model shuttle buses to provide service for the rental car shuttle bus operation. This amendment will expire on March 31, 2003.
In anticipation of the retirement of the 1992 model buses, the Airport requested an RFP be issued to provide and maintain a fleet of twenty (20) CNG powered buses. As part of the air quality certification for the Airport’s master plan, the California Clean Air Resources Board set a mitigation measure requiring the use of alternative fuel, non-gasoline, non-diesel buses for a replacement shuttle bus fleet. An analysis completed by the Airport’s Environmental staff recommends compressed natural gas as the appropriate fuel source for Airport vehicles.
On April 13, 2001 the General Services Department issued a Request for Proposal which was sent to 27 vendors. A mandatory pre-proposal conference was held on April 19, 2001. Four prospective vendors attended this meeting. On May 14, 1002 one (1) proposal was received.
The proposal which was from Penske Truck Leasing Co., L.P. was reviewed for compliance with the requirements of the RFP. In their response Penske proposed four different models of buses from three manufacturers. This would provide the opportunity for the Airport to choose the bus best suited to their needs. However, Penske’s pricing provided a median price of all four buses rather than a firm per month lease price. Therefore, the proposal was deemed non-responsive.
Penske Truck Leasing Co., L.P. has been the only vendor to respond to RFPs distributed in 1999 and 2001 for the lease and maintenance of shuttle buses. They have provided for the maintenance of the Airport’s shuttle bus fleet for over seven (7) years without difficulty. They are responsive to the Airport’s needs and work with staff to resolve issues in a timely manner. Based on their ability to meet the needs of the Airport and the fact that no other vendor has responded to our RFPs, staff is recommending rejection of the submitted proposal and authority to negotiate with Penske to obtain a firm per month lease cost based on the bus that is deemed to best meet the needs of the Airport.
The cost of the CNG buses is estimated at approximately 20 percent higher than that of clean diesel buses. The Airport has received approval for VTA/TFCA grant that will cover incremental costs up to $500,000. Vehicles must be ordered by June 30, 2001 to be eligible for grant funding. Delivery of the buses is scheduled for March 1, 2003 to provide training and transition periods.
The Request for Proposal was placed on the City of San Jose’s web site.
The project has been coordinated with the City Manager’s Budget Office, Airport Department and the City Attorney’s Office.
Fund: Airport Maintenance and Operations Fund - 523
Amount: $84,347,962
Budget Document: Proposed 2001-2002 Operating Budget, Page 6
FRANCIS B. MCVEY
Acting Director, General Services Department