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HomeMy WebLinkAboutPR 21485: APPROVAL TO EXTEND THE CONTRACT WXPIRATION DATE WITH PROTERRA, INC. P. City of Port Arthur Transit Department Memorandum To: Ron Burton,City Manager From: Ivan Mitchell,Transit Director Date: January 1,2020 Re: P.R.21485—Port Arthur Transit's Electric Vehicle Purchase Contract Extension Nature of Request: Authorize the City Manager to extend the contract expiration date with Proterra, Inc.of Burlingame,California to purchase six(6)battery electric vehicles and charging infrastructure for Port Arthur Transit(PAT)until January 21,2021. Background: In 2016,PAT was awarded FTA section 5339(c)funds to purchase six(6)battery electric buses(BEB). Under the FTA's section 5339(c)Low or No Emission guidelines,PAT was permitted to select a direct vendor without undergoing the FTA's standard Request for Proposal(RFP) process. PAT selected Proterra,Inc.as the vendor to procure six(6)BEB's. Per Resolution 19-518 the City Council authorized the City Manager to enter into a contract with Proterra,Inc.with a contract expiration of June 30,2020. Due to the emergence of COVID-19 in 2020,Proterra,Inc.will not meet the previously prescribed vehicle delivery starting in May 2020;therefore PAT has been working with Proterra to establish new • delivery dates. PAT has agreed to a new contract expiration of January 31,2021. Recommendation: It is recommended Proposed Resolution No. 21485 be approved. This resolution would authorize the City Manager to extend the contract expiration date with Proterra, Inc. to purchase six (6)battery electric vehicles and charging infrastructure with a new expiration of January 31,2021. Budgetary/Fiscal Effect:The contract extension does not have a budgetary impact. P.R. No. 21485 7/1/2020 IM RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXTEND THE CONTRACT EXPIRATION DATE WITH PROTERRA, INC. OF BURLINGAME, CALIFORNIA FOR THE PURCHASE OF SIX (6) BATTERY ELECTRIC VEHICLES AND CHARGING INFRASTRUCTURE FOR PORT ARTHUR TRANSIT, UNTIL JANUARY 31,2021; FUNDS AVAILABLE IN ACCOUNT 401-1509-561.93-00. WHEREAS, per Resolution 19-518 the City Council authorized the City Manager to enter into a contract with Proterra, Inc. to purchase six (6) battery electric vehicles (BEB's) and charging infrastructure; and, WHEREAS, the terms for Contract No. P2018-07-Port Arthur expired on June 30, 2020; and, WHEREAS, due to the emergence of COVID-19 which has impacted supply chains and required manufacturing facilities to curtail production, Proterra, Inc. will not meet the previously prescribed delivery dates starting in May 2020; and, WHEREAS, after further consultation with Proterra, Inc. Port Arthur Transit (PAT) agreed to a new contract expiration of January 31, 2021. WHEREAS, PAT recommends to extend the contract expiration date with Proterra, Inc. as delineated in Exhibit"A". NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the facts and opinions in the preamble are true and correct. THAT,the City Manager is hereby authorized to extend the contract expiration date with Proterra, Inc. of Burlingame, California to purchase six (6)battery electric vehicles and charging infrastructure until January 31, 2021. THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ,ADOPTED AND APPROVED this day of A.D. 2020 at a Regular Meeting of the City of Port Arthur, Texas by the following vote: AYES: P.R. No. 2148.5 7/1/2020 IM Mayor: Councilmembers: NOES: ATTEST: Sherri Bellard,City Secretary Thurman"Bill"Bartie, Mayor APPROVED AS TO FORM: . Val Tizeno, ity Attorney APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABILITY OF FUNDS: 401-1509-561.93-00 Ron Burton Kandy Danied City Manager Interim Director of Finance Clifton Williams, CPPB Ivan Mitchell Purchasing Manger Transit Director P.R. No.21485 7/1/2020 IM Exhibit "A" PROTERRA July 02 2020 Ivan Mitchell Transit Director Port Arthur Transit 344 Procter Street Port Arthur, TX 77640 Email: ivan.mitchell(a�portarthurtx.Qov Subject: Term Extension Request for Contract No. 'P2018-07-Port Arthur' Dear Mr. Mitchell: Regarding the Contract No. P2018-07-Port Arthur which was executed between Proterra Inc("Proterra") and Port Arthur Transit ("PAT") as of 11/18/2019, Proterra intends to bring to PAT's attention that the term of said contract expired on 06/30/2020. Considering the still prevalent dynamic situation of COVID-19 and along with the Notice of Force Majeure letter previously submitted by Proterra on 04/14/2020, Proterra hereby requests PAT to initiate a contract amendment to extend the term of the contract to accommodate the communicated delay in the production schedule. Attached herewith please find supporting document: 1) EXHIBIT A — PAT Contract Extension Schedule — Rev1 Proterra hereby also confirms that the six (6) buses under this contract will be produced in it's Greenville, South Carolina facility. We are excited to continue working with PAT on the electric bus program and look forward to a long and successful partnership. If you have any questions or would like any additional information, please feel free to contact me at (323) 360-1499 or at ndixitc proterra.com. Sincerely, Nishant Dixit Customer Program Manager Proterra Inc Cc: Lauren Cochran, Regional Sales Director, Proterra Proterra Proprietary and Confidential Information Page 1 Headquarters East Coast Manufacturing West Coast Manufacturing 1815 Rollins Road,Burlingame,CA 94010 I Whitlee Court.Greenville.SC 29607 383 Cheryl Lane,City of Industry.CA 91789 www.proterra.com EXHIBIT A Proterra, Inc. Contract No. P2018-07-Port Arthur Revised Contract Schedule ITEM DESCRIPTION DUE DATE 1 Pre-Production Meeting 4/30/2019 2 Notice to Proceed (NTP) 12/2/2019 Vendor submittals for site and application-specific design guides and equipment 3 12/30/2019 configuration details. Submitted at completion of Design Review#2. 4 Vendor supplied equipment submittals including cutsheets, installation and 1/31/2020 operation requirements(NLT 30 days after Design Review#2) 5 Training Plan Draft(60 days before first class) 10/4/2020 6 Training Documentation Draft(60 days before first class) 10/4/2020 7 Equipment Documentation(DRAFT 60 Days before first class) 10/4/2020 8 Final Training Plan and Documentation (30 days before 6th bus delivery) 10/31/2020 9 Test Plans& Final Test Report 10/1/2020 (Test Plans NLT seven (7)calendar days prior to the actual test. ) 10 Equipment Documentation (Final 30 Days prior to delivery of 6th bus) 10/31/2020 11 Training Aids (30 Days prior to delivery of 6th bus) 10/31/2020 12 Bus Delivery(6th Bus) 11/30/2020 13 Training(Upon delivery of 6th bus) 12/3/2020 14 Final acceptance of 6th bus and charging systems (within 30 days of bus delivery) 12/30/2020 15 Updated training and maintenance materials (At close of delivery of all buses) 1/30/2021 16 End of contract term 1/31/2021 Contract Dates Approval Contract Dates Approval (Reference Exhibit A— Rev1) (Reference Exhibit A— Revi) Nishant Dixit Ron Burton Customer Program Manager City Manager Proterra Inc. City of Port Arthur