Fiscal Note
Up to 80% of the total project cost is funded by USDOT/FTA. The local share is/will be budgeted in the 2008, 2009, 2010, and 2011, and 2012 capital budgets. Future year expenditures will require Council approval. The 2008 Metro Transit Adopted Capital Budget provides a total of $6,443,800 ($1,288,760 of which is General Obligation debt) for the purchase of 22 buses, or a shortfall of $477,200 ($95,440 of GO debt) as compared to the bid of $6,921,000. Approval of this resolution will amend the Metro Transit 2008 Capital budget by transferring $477,200 of budget authority ($95,440 of General Obligation debt borrowing) authority from other Metro Transit projects ($350,000 from Project 3: "Bus Wash/Vacuum System" and $127,200 from Project 4: "Transit System Upgrades") to Project 1: "Transit Coaches." No additional appropriation is required, nor is any impact upon cost controls anticipated.
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SUBSTITUTE - Authorizing the Mayor and City Clerk to enter into a five-year contract with the Gillig Corporation for the manufacture and delivery of up to seventy-five (75) coaches and spare parts. The estimated cost of the first order of buses is $6,921,000, and amending the 2008 Metro Transit Capital budget to transfer $477,200 from Transit System Upgrades and the Bus Vacuum System to support the purchase of the Transit coaches.
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PREAMBLE
The transit utility developed a Request for Proposal for the purchase of seventy five (75) 40-foot low floor transit buses, diesel with diesel-electric hybrid options. The transit utility normally replaces fifteen (15) buses annually. In this contract, Metro plans to replace twenty-two buses in the first year, eleven in the second year, twelve in the third year, and fifteen in each of the last two years. The replacement cycle is accelerated in the first year to enable us to retire the last of 1992 high floor Orion coaches that require #1 diesel fuel. All buses purchased after 1992 meet the EPA certifications using the less expensive #2 diesel.
Three (3) manufacturers responded to the RFP. Buses were evaluated for design quality, after market support, fleet standardization, and price. Transit utility staff evaluated the proposals on a formal point system basis and found the proposal from the Gillig Corporation to be the best. Some of the features of the bus include:
q Corrosion protection/body maintenance. The Gillig bus is manufactured with construction grade stainless steel chassis with extruded aluminum framing and aluminum skin. This chassis is less likely to develop stress cracks or corrosion issues for a longer operating life than other construction methods based on past experience with stainless steel construction. They are the only responder offering bolt-on aluminum side panels, allowing maximum maintenance accessibility and quick and easy repair to damaged side panels.
q The fuel economy, interior noise at idle, and exterior noise at acceleration of the Gillig all compare favorably to other buses on the market.
q Engine, transmission, and suspension. Gillig will provide a Cummins ISL engine and Voith D864.5 transmission. This engine and transmission combination provides excellent fuel economy and reliability. The bus uses Meritor axles already in use in the fleet.
q If the City decides to exercise the hybrid option in the latter years of the contract, Gillig uses the Allison E Drive 2-Mode Parallel Hybrid System. This is an efficient hybrid system for transit bus applications since it has both an electrical drive path and a mechanical drive path.
WHEREAS, the transit utility has sought Requests for Proposals for manufacture of forty-five 40' low-floor diesel transit buses and obtained proposals from three manufacturers for same; and
WHEREAS, an evaluation of the three proposals on a formal point system basis found the Gillig Corporation's proposal to be the best submittal; and
WHEREAS, the configuration of the buses will be diesel with the option exercisable by the City of Madison to substitute diesel-electric (hybrid) on a one-for-one basis during the last two years of the five-year contract; and
WHEREAS, the price of buses or equipment ordered after the initial year shall be the Base Order Price plus/minus any change which will be calculated based on the following formula which utilize the U.S. Department of Labor/Bureau of Labor Statistics Producer Price Index (P.P.I.), Commodity Code 1413 "Truck and Bus Body." The change in this P.P.I will be used to adjust the Base Order Prices. However in no event will the price(s) for any purchase order issued exceed, by more than 5 percent, the price(s) that would have been in effect twelve (12) months prior to the date of the issuance;
WHEREAS, $6,443,800 was authorized for the purchase of 22 Transit coaches in the 2008 Capital Budget. After review of the RFP proposals, an unexpected increase in the cost of each Transit coach was encountered. The contracted cost for the 22 coaches in 2008 will be $6,921,000.
WHEREAS, the Forecast software project, the Trapeze IVR Software project, and the Bus Vacuum project can be delayed and added to the 2009 Capital Budget,
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to enter into a five (5) year agreement with Gillig Corporation for the manufacture of seventy-five (75) 40-foot low floor coaches; and
NOW, THEREFORE, BE IT RESOLVED that the Transit System 2008 Capital Budget be amended to transfer $350,000. from Transit System Upgrades and $127,200. from the Bus Vacuum System to add $477,200 to Transit Coaches; and
BE IT FURTHER RESOLVED that the Transit General Manager is authorized to place the order for the manufacture of the first twenty-two (22) coaches, and to place subsequent orders for eleven (11) buses in year 2, twelve (12) buses in year 3, and and fifteen (15) buses in each of the remaining two years in the contract.