sr-032211-3bCity Council Meeting: March. 22, 2011
Agenda Item: ~- ~
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Change Order to Modify Engine Packages for 30-Foot Transit Coaches
from Hybrid-Electric to Compressed Natural Gas
Recommended Action
Staff recommends that the City Council
1) Authorize City Manager to negotiate and execute a modification to Contract No.
8963 with Creative Bus Sales to change the engine type as originally specified
for ten 30-foot buses from hybrid-electric to compressed natural gas.
2) Authorize City Manager to issue a Notice to Proceed.
Executive Summary
Following the delivery of an initial order of five 30-foot hybrid-powered transit coaches,
the manufacturer of hybrid-electric engine packages filed Chapter 11 bankruptcy. In
order to fulfill the contract to replace ten 30-foot buses that have exceeded their useful
life, staff recommends modifying the existing contract for the remaining option order for
ten buses to specify compressed natural gas engines in lieu of hybrid engines.
The original contract amount for these ten vehicles will be reduced as a result of this
modification from $8,061,367 to $6,321,994 including a 10% contingency, training and
spare parts.
Background.
On July 23, 2008 City Council authorized the purchase of five gasoline/hybrid transit
coaches from Creative Bus Sales for an amount not to exceed $4,127,544, including
contingencies. The executed contract allowed the City an option to purchase up to 25
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additional vehicles at quoted prices per option year for athree-year period from July 1,
2009 through June 30, 2012
On March 24, 2009, Council authorized staff to exercise its option to purchase ten
additional 30-foot hybrid buses at a cost not to exceed $8,061,367. In June 2010, the
City received the initial order of five buses; however, the option order of ten buses was
delayed by the Chapter 11 filing of the manufacturer of the hybrid electric drive system
specified. by contract.
Discussion
In FY 2006-07, the Big Blue Bus (BBB) implemented Mini Blue community transit
services in Santa Monica. The system operates routes, marketed as "Rides", using
distinctively designed small buses within the City's business districts and
neighborhoods. Currently, the Mini Blue system consists of the Crosstown and Sunset
Rides; however, additional Rides are anticipated in light of needs to improve downtown
and neighborhood circulation, as Expo Light Rail Transit to Santa Monica is being built.
Since the delivery of the first five coaches, the hybrid-electric drive systems maker, ISE
Corp., filed for Chapter 11 bankruptcy reorganization on August 8, 2010. This
component is specified to be built into the current order for ten more 30-foot buses. As a
result of this corporate reorganization, the lack of product support for the hybrid electric
drive systems has negatively impacted the overall performance of the five hybrid Mini
Blue buses.
Staff recommends changing the engine package from hybrid-electric to compressed
natural gas in the remaining order of ten buses, which was authorized in March 2009.
As CNG buses currently exist in the BBB fleet, this change will have no anticipated
operating or maintenance impacts.
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Financial Impacts & Budget Actions
The original contract amount for these buses is $8,061.367. The estimated contract
amount is $6,282,681 as follows:
Ten Coaches, including tax $5,354,144
Spare Parts 343,951
Training 49,172
Contingency 10% 535.414
$6,282,681
Funds for this purchase are available in account 0410519,589000 and were approved
for this use by Council on July 28, 2008 and March 24, 2009.
Prepared by: Ralph Merced, Transit Maintenance Manager
Approved:
Forwarded to Council:
r--_-//~
Ste ~anie Negriff )
Dir ~ or of Transit Services!
^Y~~
Rod Gould
City Manager
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Reference Amendment to
Contract No. 8963 (CCS).