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SR-510-003 (14) BBB:SN:RM:\trans\admin\council\NABI Council Meeting: September 10, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Authorize the City Manager to Increase Contract with North American Bus Industries, Inc., for the Purchase of Thirty-seven New Forty-foot, Low-floor, Lightweight, Liquid Natural Gas Powered Transit Buses and Miscellaneous Spare Parts in the Amount of $250,000 for Changes Required to Original Bus Specifications, Bid #2772, Contract #7634 Introduction This report recommends that the City Manager be authorized to increase Contract #7634 with North American Bus Industries, Inc. (NABI), to furnish and deliver 37 new 40-foot, low-floor, lightweight, liquid natural gas powered buses, with miscellaneous spare parts in the amount of $250,000. Background In November 1999, the Transportation Department placed an order for 37 new transit buses as part of a capital improvement program to replace and expand the existing fleet. The build cycle for an order of this nature is typically 24-30 months. During the course of that build cycle, a number of tests are performed to ensure that the most up-to-date, appropriate components are included as part of each bus. The buses have a scheduled useful life of 12 years so it is important to be sure that the buses are delivered with the best possible configuration and components to serve the City?s needs over this 12-year period. In the course of building this order, the Big Blue Bus made changes to the original specifications in order to obtain the best possible configuration and 1 components. These changes included additional safety measures (fire sensors and curb guards), improvements in component quality (by-pass filters, fuel fill ports), ease of maintenance (transit windows) and upgrades (bike racks) that became available during the course of the build cycle. This request to increase the contract is to cover these improvements and changes to the original bus order. Financial/Budgetary Considerations The amount of the original contract was $13,071,453. The requested increase of $250,000 represents less than a 2% variance on the original contract, which is well within normal contingencies for this type of contract. Funds are available in account C41011699.589000 in the Transportation capital reserve funds for this increase. Recommendation City staff recommends that the City Council authorize the City Manager to increase the contract with North American Bus Industries, Inc., for the purchase of 37 new forty-foot, low-floor, lightweight, LNG powered transit buses with miscellaneous spare parts. Prepared by: Stephanie Negriff, Acting Director of Transportation Ralph Merced, Transit Maintenance Manager 2