SOUND TRANSIT MOTION NO. M2001-72

A motion of the Board of Directors of the of the Central Puget Sound Regional Transit Authority authorizing the Executive Director to negotiate and execute necessary agreement(s) allowing the like-kind exchange and/or assignment of contract right purchase rights to CalTrain for seven cab cars and ten coaches (17 Bombardier bi-level cars), and five locomotives from the Electro Motive Division of General Motors (EMD) for equipment originally scheduled to be delivered to Sound Transit beginning in July of 2001.

Background:

Sound Transit placed orders for cars, cab cars and locomotives to serve the Sounder Commuter Rail line based upon plans to have capacity for full service of eighteen trips per day with 14 stations open by 2002. Due to schedule change at the manufacturer, 13 cars, 13 cab cars and six locomotives were manufactured four months ahead of schedule. Options to the contract authorized by Resolution No. R98-25 were approved by the Board (Motion No. M99-72 and Motion No. M99-81) requiring Sound Transit to take delivery of an additional 27 cars and five cab cars starting July 1, 2001, as well as five locomotives in September and October of 2001 (Motion No. M99-82).

Since the original orders for equipment were placed with Bombardier, the schedule for opening stations and adding trips has been delayed. Loss of funds due to implementation by the Legislature of the voter-approved I-695 played a major role in delaying commuter rail station openings. Other factors contributing to delays in opening stations and increasing the

trips-per-day schedule are protracted permitting processes (such as the listing of salmon under the Endangered Species Act), and with lengthy negotiations with government entities from municipal to national levels, and lengthy negotiations with Burlington Northern Santa Fe Railway for right of way and track and signal improvements. These delays have postponed the need for additional equipment, making it more costly to take possession of equipment based on original plans for phasing in commuter rail service.

Motion:

It is hereby moved that the Executive Director is authorized to negotiate and execute necessary agreement(s) for the like-kind exchange and/or assignment of contract purchase rights to CalTrain for seven cab cars and ten coaches (17 Bombardier bi-level cars), and five locomotives from the Electro Motive Division of General Motors (EMD) for equipment originally scheduled to be delivered to Sound Transit beginning in July of 2001. Such agreements shall cover all costs associated with the equipment including, but not limited to, increases in the price of this equipment.

APPROVED by the Board of Directors of the Central Puget Sound Regional Transit Authority at a regular meeting thereof held on the ________day of __________, 2001.

 

David Earling
Board Chair

 

ATTEST:

 

Marcia Walker
Board Administrator

  STAFF REPORT SOUND TRANSIT MOTION NO M2001-72 Sounder Agreement to Allow CalTrain to Take Earlier-Delivered Equipment

Meeting:

Date:

Type of Action:

Staff Contact:

Phone:

Finance Committee

Board

8/2/01

8/9/01

Discussion/Possible Action to Recommend Board Approval

Action

Noel Peck, Sounder Program Manager

(206) 398-5115

PROPOSED ACTION

The proposed action would authorize the Executive Director to negotiate and execute necessary agreement(s) to allow a like-kind exchange with CalTrain of seven cab cars and ten coaches (17 Bombardier bi-level cars), and five locomotives from Electro Motive Division of General Motors (EMD) from Sounder Commuter Rail equipment that is in excess of what is required to provide Sounder service at current levels, provided such agreements cover all costs associated with the equipment, including but not limited to increases in the price of this equipment.

KEY FEATURES

 

Highlights of Proposed Action:

DISCUSSION

Sound Transit placed orders for cars, cab cars and locomotives to serve the Sounder Commuter Rail line based upon plans to have capacity for full service of 18 trips per day with 14 stations open by 2002. Due to schedule change at the manufacturer, 13 cars, 13 cab cars and six locomotives were manufactured four months ahead of schedule. Options to the contract authorized by Resolution No. R98-25 were approved by the Board (Motion No. M99-72 and Motion No. M99-81) requiring Sound Transit to take delivery of an additional 27 cars and five cab cars starting July 1, 2001, as well as five locomotives in September and October of 2001 (Motion No. M99-82).

The schedule for opening stations and adding trips has been delayed since the original orders for equipment were placed with Bombardier. Loss of funds due to implementation by the Legislature of the voter-approved I-695 played a major role in delaying commuter rail station openings. Other factors contributing to delays in opening stations and Sound Transit’s ability to increase the trips-per-day schedule are: protracted permitting processes (such as the listing of salmon under the Endangered Species Act), lengthy negotiations with government entities from municipal to national levels, and lengthy negotiations with Burlington Northern Santa Fe Railway for right of way and track and signal improvements, also affected by I-695. These delays have postponed the need for additional equipment.

Staff’s proposed plan will minimize the expense arising from delays. Deal points include:

five-year option for equipment orders under the current contract.

This proposed action provides the Executive Director with authority needed to execute this agreement exchange between the two agencies which will allow for exchanged delivery dates of equipment. Additional approval is required from the Federal Transit Administration (FTA). A copy of a letter dated June 14, 2001, stating the FTA’s concurrence is attached. The FTA is a strong advocate of cooperation among transit agencies within the United States, as well as between the United States and other nations. Details regarding Federal funding need to be worked out before the exchange can be finalized. An estimated timeline, based on currently available information for the leasing of the coaches and cab cars is shown in the following table:

Time (Quarter)

Cars Needed (Sounder Service)

Cars in Yard

(Delivered & Accepted)

Available (for lease/ exchanges)

4th / 2001 16 26 10
1st / 2002 16 40 24
2nd / 2002 21 58 37
3rd / 2002 21 58 37
4th / 2002 21 58 37
1st / 2003 34 58 24
2nd / 2003 34 58 24
3rd / 2003 34 58 24
4th / 2003 40 58 18
1st / 2004 48 58 10
2nd / 2004 48 58 10
3rd / 2004 48 58 10
4th / 2004 58 58 0

 

An alternative timeline, based on currently available information, is shown in the following table:

Time (Quarter)

Cars Needed (Sounder Service)

Cars in Yard

(Delivered & Accepted)

Available (for lease/ exchanges)

4th / 2001

16 26 10

1st / 2002

16 41 25

2nd / 2002

21 41 20

3rd / 2002

21 41 20

4th / 2002

21 41 20

1st / 2003

34 41 7

2nd / 2003

34 58 24

3rd / 2003

34 58 24

4th / 2003

40 58 18

1st / 2004

48 58 10

2nd / 2004

48 58 10

3rd / 2004

48 58 10

4th / 2004

58 58 0

 

 

BUDGET

There are no anticipated costs requiring budget approval associated with this action that would be included in the current staff administrative budgets. Rather than requiring budget, this action will generate savings of $593,000 due to avoided storage costs. Any incidental costs related to the transactions (delivery of vehicles, associated maintenance/repairs, increased cost of equipment) would be borne by CalTrain.

Alternatives

  1. Accept delivery of the equipment as scheduled and store at the King Street maintenance facility at minimal cost.
  2. Not Recommended: Would not allow Sound Transit to "break in" the equipment during the warranty period.

  3. Attempt to negotiate with manufacturer for later delivery dates.

Not Recommended: If manufacturer were to agree to this, the cost to store the equipment would be passed on to Sound Transit.

Consequences of Delay

A minor delay while the Board considers this motion would not have a significant impact. Protracted delay might diminish the opportunity to lease Sounder equipment under terms most favorable to Sound Transit.

 

Regional Partnership and cooperation

Allowing another public transportation entity to benefit from an earlier delivery of rolling stock is viewed by FTA and others as a good example of partnership and cooperation on a national and international level.

Public Involvement

This board action does not lend itself to a local public involvement effort.

Legal Review

MBL 7/23/01