Item 6-K

City Council Meeting: 03-23-99 Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Authorize City Manager to Negotiate and Enter into a Sole Source Agreement with APS Systems for the Procurement of Two 26 Foot Low-Floor Electric Buses, Necessary Spare Parts and Test Equipment, Total Agreement Not to Exceed $520,000 Introduction

This report recommends that the Council approve the procurement of two low-floor 26 foot electric buses, necessary spare parts and test equipment. The two buses will bring the Transportation Department electric bus fleet up to five buses. The two buses will be used in regular transit route service and help provide backup for the TIDE service.

Background

The Transportation Department is in the process of expanding service to alleviate bus overcrowding and improve transit services within the Big Blue Bus service area.

The Department has determined that there are several service areas where the current ridership demands do not require the use of a large 40 foot bus. The 26 foot electric shuttle bus demonstration project will be expanded to test small electric buses on all-day transit routes. The Department will evaluate the operating performance, reliability and bus change-out impacts involved with operating an electric bus fleet. Electric buses in TIDE service currently operate 10 to 12 hours before needing a battery pack recharge. The new buses will be equipped with on-board chargers capable of cutting the recharge time in half, from 8 hours to 4 hours. This reduced charging time greatly improves the electric bus fueling turn-around time and bus availability for both scheduled and unscheduled bus trade outs.

Discussion

A Request for Letters of Interest and Statement of Qualifications was sent to ten electric bus manufacturers on January 5, 1999 to see if any manufacturers currently make a low- floor 26 foot electric bus equal to or better than the APS buses purchased by the City in 1996. The Request was also published in "Passenger Transport" (the transit industry's weekly newspaper) on January 4, 1999. Four letters of interest were received. Three of the firms (AVS, Columbine Bus and IntelliSystems) expressed interest in providing the City with buses other than what was specified, but none of the three firms has made a 26 foot low-floor electric bus. APS is the only manufacturer that makes a 26 foot low-floor electric bus using a fully composite body structure that completely isolates high voltage electrical components from the passenger compartment. The City owns three 26 foot low-floor electric buses that were manufactured by APS and have been operating satisfactorily on the TIDE service for the past two years.

Because APS Systems currently has no competition in the 26 foot electric bus market, staff recommends that the City proceed with an Original Equipment Manufacturer (OEM), sole source procurement for two more 26 foot low-floor electric buses from APS Systems under the Santa Monica Municipal Code Exceptions to Competitive Bidding, Section 2.24.080 (1). Procurement from APS enables the City to maintain a standardized fleet of electric buses which minimizes the costs incurred with driver training, mechanic training and parts storage issues.

APS Systems has agreed to provide current state-of-the-art 26 foot low-floor electric buses to the City at the same price, $226,000 per bus plus tax, as the City's previous electric bus procurement in 1996 in Agreement No. 7197. The new electric buses will have all the improvements that APS has made to the bus since the City's last order. Delivery time from placement of order is 120 days.

Budgetary/Financial Impact

The total cost of the two buses plus spare parts is $520,000. Funding for the purchase is provided through four funding sources: California Energy Commission/PVEA (Petroleum Violation Escrow Account) Program, Proposition A Local Return Funds, Federal Transit Administration (FTA) Section 9 Funds and Transit Development Act Funds.

Recommendation

City staff recommends that the City Council authorize the City Manager to negotiate and enter into a sole source agreement with APS Systems for the procurement of two 26 foot low-floor electric buses, necessary spare parts and test equipment, total agreement not to exceed $520,000.

Prepared by:

John Catoe, Director of Transportation

Roy Neva, Facilities Maintenance & Vehicle Engr. Manager