ITEM 6-D

Council Meeting:  September 27, 1994

TO:        Mayor and City Council

FROM: City Staff

SUBJECT:   Recommendation to Award Bid to Furnish and Deliver
           Twenty-One (21) New Transit Buses and Miscellaneous
           Parts, Bid #2507

Introduction

This report concerns award of bid to furnish and deliver twenty-one
(21) new 40-foot clean-diesel buses, and miscellaneous parts, in
the total amount of $4,969,979.50.

Background

In response to published Notices Inviting Bids (published July 28
and 29, 1994) to furnish and deliver twenty-one (21) new 40-foot,
clean-diesel transit buses, in accordance with City specifications,
bids were received and publicly opened and read on August 29, 1994.
Proposal forms were mailed to four (4) vendors and notices were
advertised in accordance with City Charter and Municipal Code
provisions.  One proposal was received as follows:

Bid of Nova Bus Corporation

Item                               Unit Price      Total Price 
Base Bus (without items and        $195,044.00     $4,095,924.00
materials for physically
handicapped)

8.25% Sales Tax*                     16,091.13        337,913.73

Items and Materials for              17,754.00        372,834.00
Physically Handicapped

Delivery Charge                       3,102.00         65,142.00

Spare Parts (including tax and                         98,165.77
deliver)                            __________      ____________

     TOTAL PRICE                   $231,991.13        $4,969,979.50


*Sales tax does not apply to items and materials for the physically
handicapped.

Because only one bid was received, inquiries were made to determine
reasons for other manufacturers not bidding.  Two cited significant
order backlogs that did not permit delivery of buses in less than a 
year's time, while the other mentioned its extremely heavy bid
schedule.  The recent announced withdrawal of a major manufacturer
of buses from the business apparently has led to this imbalance of
manufacturing capacity.

These vehicles will replace vehicles originally purchased in 1973
and 1981.  The purchase of the clean-diesel vehicles is consistent
with the City's reduced emissions fuel policy.  The buses to be
purchased will have the newest clean diesel engine technology.  

These newly-designed, 4-cylinder engines reduce emissions through
improved internal combustion engine and catalytic converter
technology, rendering the diesel particulate trap obsolete.  By
comparison to the buses being replaced, these buses will reduce
particulates by almost 90% and other emissions by an average over
70%.

Staff has evaluated the low bid and finds that it meets City
specifications. 
 
Budget/Financial Impact

Funds for the purchase of the vehicles are in Capital Improvement
Budget "Bus Replacement Program" accounts #41-750-658-20094-8900-
99519 ($2,418,077.07), and #41-750-658-20095-8900-99519
($2,551,902.43).

Recommendation

It is recommended that the award of Bid #2507 be made to Nova Bus
Corporation in the total amount of $4,969,979.50 for twenty-one
(21) buses and spare parts.

Prepared By:   Bob Ayer, Assistant Director of Transportation
               Pamela Wortham, Purchasing Agent
               Theodore Baxter, Buyer