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June 15, 2023 Board Meeting Staff Report No.: SR-23-06-023 <br /> <br />Agenda <br />Item # <br />23 <br /> <br />AUTHORIZE PURCHASE AND SALE AGREEMENT OF FIVE (5) NCTD <br />BI-LEVEL RAIL CARS AND TWO (2) LOCOMOTIVES <br /> <br /> Time Sensitive: ☐ Consent: ☐ <br /> <br />STAFF <br />RECOMMENDATION: <br />Authorize the Executive Director, subject to the concurrence of the General <br />Counsel to: <br />1) Finalize negotiations of Purchase and Sale Agreement of five (5) <br />NCTD bi-level rail cars to the Utah Transit Authority (UTA) at a sale <br />price of $200,000 per vehicle, for a total of $1 million, and <br />2) Approve sale of the two (2) Siemens Charger locomotives to the <br />California State Department of Rail and Mass Transportation <br />(DRMT) or to the Southern California Regional Rail Authority <br />(SCRRA). In the event that, NCTD cannot complete sale to the <br />State or SCRRA, approve the solicitation of purchase proposals, <br />advance negotiations with interested parties and execute a <br />Purchase and Sale Agreement for two (2) Siemens Charger <br />locomotives with the successful proposer(s). <br /> <br />3) Direct staff to reserve all sale proceeds for project development and <br />implementation of zero emission rail technologies. <br /> <br />BACKGROUND <br />INFORMATION: <br />The North County Transit District (NCTD) current COASTER fleet includes <br />five (5) locomotives and twenty-eight (28) cab/coach bi-level rail vehicles. <br />Two (2) Siemens Charger locomotives, two train sets (comprised of 2 <br />locomotives, 2 cab bi-level, and 4 coach bi-level), and one (1) cab bi-level <br />are in the manufacturing process and scheduled to be delivered to NCTD <br />in the coming months, which will increase the size of the COASTER fleet. <br /> <br />NCTD is seeking to optimize its rail fleet to foster cost-efficiency, advance <br />its transition to zero emission operations, and advance planning and <br />related activities for the procurement of a new SPRINTER vehicle with <br />capabilities to operate on the inland and coastal rail lines. In order to <br />advance this strategy, staff has determined that it should reduce the <br />COASTER bi-level fleet by selling five (5) passenger bi-level coach cars <br />that have reached the end of their useful life and sell two (2) Siemens <br />Charger locomotives. <br /> <br />Background <br />On September 27, 2019, SANDAG’s Board of Directors allocated $58.8 <br />million to NCTD for the purchase of two additional capacity enhancement <br />train sets to provide more frequent – up to 42 trains per average weekday <br />– COASTER commuter rail service. The goal for increasing services <br />includes allowing commuters and recreational travelers an affordable and