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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
K. Stephen Spade, Transportation Director |
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SUBJECT: |
Bids for the Purchase and Delivery of Articulated Transit Buses |
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DATE: |
January 22, 2007 |
The purpose of this report is to award a contract for the purchase of articulated buses.
The Town’s original solicitation for bus procurement in July 2006 included a request for pricing of 35-foot low-floor buses, 40-foot low-floor buses, 40-foot hybrid buses and 60-foot articulated buses. Two bids were received; one from the Gillig Corporation and one from Millennium Transit, manufacturers of 35-foot, 40-foot and hybrid buses. Millennium Transit’s bid was non-responsive. Grant funds awarded total $7,156,591 for the purchase of buses. A contract was awarded to the Gillig Corporation on October 9, 2006 and included the purchase of sixteen 40-foot buses at a cost of $5,869,178, with a five-year contract for additional buses as funds may be received. No bids were received from a manufacturer of 60-foot articulated buses. The balance of $1,287,413 would be used toward the purchase of the articulated buses.
The source of funds for bus purchase include FY 2005 funds remaining from the bus rehabilitation project, FY 2006 earmark funds from the federal bus and bus facilities appropriation, FY 2006 discretionary funds from a Statewide earmark for bus replacement and Congestion Mitigation and Air Quality (CMAQ) funds. CMAQ funds are available through the Federal Highway Administration for projects that can improve the air quality in the region. These funds are appropriated by Federal Highway Administration for specific projects annually, over three years. The FY 2007 CMAQ appropriation will not be allocated to Chapel Hill until FY 2007 funds are appropriated by Congress. Notification that these funds have been allocated is expected in February 2007.
Town staff developed specifications for solicitation of the articulated bus design. The advertisement was published on October 16, 2006. One bid was received from North American Bus Industries on January 4, 2007.
The bid received was as follows:
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Model |
Qty |
North American Bus Industries |
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Base Bid Unit Price |
Extended |
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60-foot articulated bus |
3 |
$618,010 |
$1,854,030 |
The base bid price received from North American Bus Industries to purchase three articulated buses exceeds the available balance of grant funds. The Town of Chapel Hill’s Transportation Capital Reserve Fund includes an amount that was set aside in FY 2006 for the purchase of one bus. The $566,617 that will be needed is available in the Capital Reserve Fund, allowing the purchase of three articulated buses at this time.
Additional grant awards, including the FY 2007 CMAQ appropriation, can be used to purchase a fourth articulated bus. Staff is hopeful that the FY 2007 CMAQ funds can be received in time to allow for the same November 2007 delivery as stated in the original bid document.
Articulated buses are most beneficial in applications where passenger demand exceeds normal bus capacity. Articulated buses will accommodate nearly three times the capacity of a standard bus with no additional on-going labor cost.
Chapel Hill Transit experiences capacity issues on several routes operating along Martin Luther King, Jr. Boulevard, the 15-501 corridor, and from several park and ride lots. Currently, additional vehicles are deployed as “trippers” to ease overcrowding. This option is expensive to operate and limits the ability to use the fleet to expand service to other areas of the community.
Articulated buses will also: 1) stimulate ridership through increased public interest; and 2) promote clean air by removing more cars from the street with no increase in emissions.
The solicitation for articulated buses was advertised for the purchase of up to four buses. Funds are available to purchase three at this time. Congestion Mitigation and Air Quality funds have been programmed for FY 2007; however, they have not yet been received.
North American Bus Industries met all requirements of the specifications and procurement schedule. Manufacture and delivery of the buses have been quoted at 270 days from the date of award.
Staff requests that the Council authorize a contract to North American Bus Industries for the purchase of four articulated buses and an agreement will be executed with them to purchase three immediately. The fourth bus will be added to the order if funding is received within the next 30 days.
Staff also requests that the Council adopt the following resolution awarding a contract for up to four articulated buses with a five-year contract to North American Bus Industries for additional buses as funds may be available.