AGENDA #4b
MEMORANDUM
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
K. Stephen Spade, Transit Director Ken Pennoyer, Director of Business Management |
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SUBJECT: |
Award of Bids for the Purchase and Delivery of Transit Buses |
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DATE: |
May 19, 2008 |
PURPOSE
The purpose of this report is to request Council award a contract for the purchase of 2 hybrid articulated buses.
BACKGROUND
The Town currently owns 98 buses that range in age from 1 to 19 years old. The national standard, average fleet age is seven years. Chapel Hill Transit staff has developed a plan to bring the existing fleet within the national average while providing a modest expansion over the next five years. This procurement is consistent with the adopted goals of the Town’s Comprehensive Plan to increase transit use in the community.
Buses to be Purchased
60’ hybrid electric articulated low floor buses have an increased passenger capacity. These buses allow Chapel Hill Transit to accommodate growing ridership without a significant increase in operating costs. Chapel Hill Transit currently has 3 diesel articulated buses and now recommends the addition of 2 hybrid articulated buses. Hybrid drive systems are streamlined as there is no transmission gear shifting. Emissions are more than 90% cleaner than emissions from a contemporary diesel bus. The 60’ articulated low floor bus will seat 58 passengers and have a total capacity of over 100 persons.
Funding Sources
Grants in the amount of $1,829,869 are available from federal Congestion Mitigation and Air Quality (CMAQ) program funds. Congestion Mitigation and Air Quality funds are federal funds available to those projects that can demonstrate an improvement in the air quality.
On March 25, 2008 the North Carolina Department of Transportation sent a request to the FHWA to transfer CMAQ funds to the Federal Transit Administration representing the third year allocation of $469,869 for the purchase of hybrid buses. On April 3, 2008, the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization submitted their annual endorsement of CMAQ projects to the North Carolina Department of Transportation for an additional $1,360,000 in federal funds to be awarded to the Town of Chapel Hill for the purchase of hybrid electric articulated buses.
Matching Funds
To ensure the availability of local matching funds for the Transportation Department’s capital program a Capital Reserve fund was created in 1993. The local matching funds required to match this purchase total $170,420 (10%). The State of North Carolina will provide an additional 10% match to the project.
The Notice to Bidders was published in the February 3, 2008 edition of the Chapel Hill News and on Town of Chapel Hill’s website. Bid notices were sent to the only two known manufacturers of the articulated bus.
DISCUSSION
Town staff developed specifications for buses using base bus specifications that included a hybrid propulsion package.
The Town’s solicitation included requests for pricing of a 60 foot hybrid articulated bus. Bidders were required to submit technical information regarding specifications of the vehicle(s), training of operators and mechanics, a suggested list of spare parts and maintenance tools, and warranty provisions. This information may be used to calculate the cost of the vehicles over their useful life, vehicle performance, and standardization values for each manufacturer’s vehicle(s). These values are the anticipated additional lifetime costs to the Town that would result from the acquisition of any specific model of buses.
The Town received two technical packages from North American Bus Industries and New Flyer. The bid from North American Bus Industries, the low bidder, included a 7 month delivery schedule based on a contract award of May 19, 2008. The second bid was received from New Flyer was substantially longer at 14 months.
A summary of the bids received is as follows:
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Manufacturer |
Unit Cost |
Total |
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North American Bus Industries |
$852,102 |
$1,704,204 |
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New Flyer |
$1,024,202 |
$2,048,404 |
North American Bus Industries met all requirements of the specifications and procurement schedule. Manufacture and delivery of the buses have been quoted at 218 days from the date of award.
RECOMMENDATION
That the Council adopt the following resolution accepting the bid from North American Bus Industries for two 60’ hybrid electric articulated buses.