Council Meeting: 11/12/96                    Santa Monica, CA

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Authorize the City Manager to Negotiate and Execute a
          Contract to Purchase Thirty-six (36) New Low-Floor,
          Clean Diesel Transit Buses, with an Option for Thirty-one (31) Buses

Introduction
The Transportation Department maintains a program of replacing
its older transit buses to provide safe, reliable, comfortable
service to the patrons of Santa Monica's Big Blue Buses.  This
report recommends that the City Manager be authorized to enter
into a contract with New Flyer of America to furnish and deliver
thirty-six (36) new 40-foot, low-floor, clean diesel buses, with
miscellaneous spare parts in the amount of $10,008,038 to replace
overage existing buses.  The contract includes an option for an
additional thirty-one (31) buses in an amount not to exceed
$9,036,210.

Background
The Transportation Department maintains a capital improvement
program to replace aging buses on an ongoing basis.  Under this
program, the Department replaces buses after they reach 12 years
of age.  Experience indicates that buses that exceed this age are
more costly to maintain and suffer from major corrosion due to
the City's proximity to the ocean.  A review of the condition of
our current fleet indicates that replacement should not be
delayed. 

In FY 1995-96, the Department scheduled 11 buses for replacement
in the City's Capital Improvement Program (CIP).  The FY 1996-97
budget calls for the replacement of 25 buses.  The CIP also
includes the programming of 16 replacement buses in FY 1997-98
and 15 buses in FY 1998-99. 

Due to major changes occurring in bus technology, in FY 1995-96,
Transportation Department staff began researching available
buses.  A new, low-floor bus design was tested in service.  The
overwhelmingly positive response has convinced the Department
that the next order of buses should be of low-floor design.     

Currently, the Transportation Department is working on an
alternative fuels conversion program, which includes the
completion of the compressed natural gas (CNG) dispensing
facility within four years.  Specifications for the buses ordered
now will allow for conversion of the engines and fuel tanks to
natural gas.

Purchase of the buses has been complicated by current
manufacturer backlogs.  A major manufacturer has left the field,
resulting in long delays for bus deliveries, approaching two
years and more.  Because the Department needs to purchase buses
quickly to replace 12-year old equipment, staff recommends a
joint purchase with the Long Beach Public Transportation Company
for low-floor buses.  Because Long Beach used federal procurement
guidelines when competitively bidding their buses, the procedure
meets the City criteria for joint purchasing under Section
2.24.080 of the Santa Monica Municipal Code.  This will allow the
Department to take delivery about a year and a half earlier than
could normally be expected.

Financial/Budgetary Considerations
Funds for the purchase of 36 buses are in capital improvement
accounts 41-750-658-20096-8900-99519 and 41-750-658-20097-8900-99519.  Although the option orders are listed in the CIP,
appropriations for the option orders have not been requested. 
Per City policy, the option will not be exercised until funds
have been appropriated.

Recommendation
City staff recommends that the City Council authorize the City
Manager to negotiate and execute a contract with New Flyer of
America for the purchase of thirty-six (36) buses with an option
for up to thirty-one (31) additional buses.  The option will be
at the pleasure of the City and will not be exercised until after
sufficient funds have been appropriated.