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SR-010808-1H~~+ City of City Council Report Santa Monica City Council Meeting: January 8, 2008 Agenda Item: `° To: Mayor and City Council From: Stephanie Negriff, Director of Transit Services Subject: Rejection of Bid #2924 to Furnish and Deliver up to Five Small Alternative Fuel Transit Vehicles With Options to Purchase up to 25 Additional Vehicles Recommended Action Staff recommends that the City Council authorize the City Manager to reject all bids received for the purchase of Small Alternative Fuel Transit Vehicles. Executive Summary At its September 25, 2007 City Council meeting, Council directed staff to go back to the proposed supplier of Bid No. 2924 with suggestions. to modify the design of the five, small alternatively fueled transit vehicles. Staff. met with the vendor and it was determined that they could not make the suggested changes. As a result of this discussion, the City Council should reject the bids. Staff will come back to the City Council at a later time with another design concept. There will be no fiscal impact as a result of this action. Discussion Previous Council Actions At the September 25, 2007 City Council Meeting staff recommended the award of Bid #2924 to North American Bus Industries to purchase five compressed natural gas powered trolley designed transit coaches and miscellaneous spare parts, with options to purchase up to 25 additional coaches. Discussion ensued on the proposed design of the trolley and the need to have a design that is unique and identifiable with the City of Santa Monica. After considerable discussion, staff was directed to consult with the supplier regarding revising the design 1 to address the ideas, suggestions and comments. made during the discussion and return to the City Council with options. Staff met with the supplier regarding optional designs and modifications to determine if anew design could be provided without compromising the structural integrity of the vehicle. After review of the designs presented, the manufacturer determined that they could not produce the alternative design concept for Council consideration.. Staff will re-evaluate bid specifications, research the open market for other acceptable designs, unique body types, and advanced alternative fuel technology such as natural gas/hybrid, and return to the City Council for an award at the appropriate time. Financial Impacts & Budget Actions There are enough regular buses for the community transit services. The trolley style bus is an alternative to address concerns from the business and resident communities. The delay of the purchase of the trolley buses does not impact the daily operations and hence the negative financial impact is minimal if any. Prepared by: Ralph Merced, Maintenance Manager Approved: Forwarded to Council: Stept~a ie Negriff nt Ewell i Director of Transit Services Cit anager 2