to: Roger L. Stancil, Town Manager
from: K. Stephen Spade, Transit Director
Kenneth C. Pennoyer, Director of Business Management
subject: Approval for the Purchase and Delivery of Transit Buses
date: November 10, 2008
The purpose of this report is to request that the Council approve the purchase of up to 7 forty-foot hybrid electric buses. The attached ordinance would establish a project budget for a transit capital grant that will be used to purchase the buses.
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. The current average age of the Chapel Hill Transit fleet is 7.14 years. Chapel Hill Transit staff has developed a plan to bring the existing fleet within the national average of 7 years 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
The buses to be purchased are forty-foot hybrid electric low-floor buses. Chapel Hill Transit currently has a multi-year contract with the Gillig Corporation for forty-foot low-floor diesel and hybrid electric buses and would order the buses under that contract.
Funding Sources
On October 10, 2008 the Transportation Advisory Committee approved a modification of the 2009-2015 Metropolitan Transportation Improvement Program to include $3,000,000 in federal bus and bus facilities funds for Chapel Hill Transit, allowing for the purchase of seven hybrid buses.
The Federal Transit Administration has allocated $3,000,000 (80%) to the project.
Matching Funds
The funds to match this purchase will require $375,000 (10%) in local funds that will come from the Capital Reserve Fund. The State of North Carolina will be requested to provide an additional $375,000 (10%) to match the project.
Determination of Unit Pricing for Buses Ordered after Initial Purchase
The pricing of these buses was based on the unit price of the initial order plus any change, which was calculated based on the following formula utilizing the U.S. Department of Labor/Bureau of Labor Statistics Producer Price Index (“P.P.I.”), Category wpu 1413 “Truck and Bus Body”. The change in this index was used to adjust from the Base Order Prices.
|
Manufacturer |
Unit Cost (2nd order) |
|
Gillig Corporation |
$535,111 ea. |
The delivery of the buses is currently scheduled for April, 2009.
That the Council adopt the following resolution and enact the following ordinance approving the purchase of up to 7 forty-foot hybrid electric low-floor buses from the Gillig Corporation.