AGENDA #4e
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Bids for the Purchase of 17 Transit Buses with an Option to Purchase up to 10 Additional 35 Foot Transit Buses
DATE: March 26, 2001
This memorandum outlines the necessary bus replacement and identifies the established funding sources for this purchase.
The attached resolution would award a contract for the purchase of 17 35-foot transit buses. The resolution would also preserve the option to purchase up to 10 additional buses if the Council and its transit partners determine that increased transit service is warranted and local matching funds become available within the option period.
The Chapel Hill Transit system currently operates 54 full size transit buses. These are considered heavy-duty vehicles with a 12-year life cycle. The full size buses are needed for the transit system to accommodate the heavy demand during the peak periods. Presently, we have 3 routes that serve student and UNC staff housing areas that cannot meet the peak demand and frequently leave people behind (routes J, S, T).
The Town currently owns 14 1990 model RTS buses that are scheduled for replacement in Fiscal Year (FY) 2002. We will be replacing these with full size buses. The useful life of a vehicle of this type is 12 years according to Federal replacement standards. The typical schedule to build these vehicles is 12 to 18 months. Included in the bid are 3 additional buses that would be purchased to enhance service and allow Chapel Hill Transit to implement new service to Southern Village and the Meadowmont area.
On March 16, 2001 the North Carolina Board of Transportation approved a State Transportation Improvement Program amendment that secured the funding for the purchase of 14 replacement buses.
· Seven buses would be funded with a federal transit grant reassigned to Chapel Hill by the North Carolina Department of Transportation.
· Seven buses would be funded with Surface Transportation Program funds that are flexible funds available for highway or transit use.
· Three additional buses would be purchased using funds from an existing federal transit grant awarded to the Town of Chapel Hill in FY1999. Through the efforts of the University and former Senator Lauch Faircloth, the Town of Chapel Hill received a grant of $1.2 million from the Federal Transit Administration to purchase additional buses.
|
Description |
Federal Funds |
State Funds |
Local Funds |
Total Funds |
|
7 Buses |
$1,491,252 |
$186,406 |
$186,407 |
$1,864,065 |
|
7 Buses |
$1,491,252 |
$186,406 |
$186,407 |
$1,864,065 |
|
3 Buses* |
$674,846 |
$84,356 |
$84,356 |
$843,557 |
|
Total |
$3,657,350 |
$457,168 |
$457,170 |
$4,571,687 |
*This includes the cost of resident inspection trips and highway use taxes for 17 buses.
The Council created a Capital Reserve Fund in 1993 to provide local matching funds for the Transportation Department’s capital program. The local matching funds needed to purchase 17 buses are $457,170. With the FY2001 transfer to the Capital Reserve Fund, the balance would be $515,000, an amount sufficient to cover the cost of the buses and other programmed capital for FY2001-02.
Also included in this bid proposal is an option to purchase up to 10 additional buses. We have included the option for additional buses to allow us to purchase them, within 180 days from the bid award, at the contract price without having to go through an additional bid process. We anticipate a demand for additional bus service in these areas:
· To address existing routes that are over capacity during peak periods and frequently leave passengers standing at the stops - J, S, and T routes.
· Jones Ferry Road park and ride lot (currently in design/development review phase) is expected to be completed in January 2002.
· UNC has requested an additional on campus shuttle to serve the east portion of campus including the Law School.
· UNC has requested consideration of several enhancements to the Transit system that would require additional buses.
· 2 of the 10 buses would be designated as spare buses to maintain the 20% spare ratio necessary to ensure acceptable service and adequate maintenance.
In addition to the capital monies needed to acquire additional buses, expansion of service would require an increase in operating expenses agreed to and shared among the transit partners.
The total cost of 10 additional buses is $2,662,950 if the option were exercised within 180 days of the bid award. We have requested and received an allocation of $2,130,360 in Federal funds that would be transferred from Surface Transportation Program Direct Allocation funds to the transit program to cover the Federal share (80%) of the additional 10 buses. The State would fund 10% ($266,295) of this purchase. The source of the local matching share ($266,295) for this purchase has not been determined at this time.
The Notice to Bidders was published in the October 4, 2000 edition of The Chapel Hill News/Village Advocate and the October 9, 2000 edition of Passenger Transport. Bid notices were sent to five minority organizations and to 17 bus manufacturers and vendors throughout the United States and Canada. On December 19, 2000, one bid was received and opened. A second bidder, Orion Bus Industries, was denied a request for an approved equal for the transverse mounted (T drive) engine and could not meet the specifications of the bid. We discussed this with our project administrator at the Federal Transit Administration and were given approval to deny the request for an approved equal for the T drive engine.
Town staff developed specifications for new buses using Federal Transit Administration specifications for advanced design buses. These Federal Transit Administration specifications, updated annually, have been used for purchasing buses since 1980 and have worked well for the transit system in Chapel Hill.
Bidders were required to submit technical information regarding training of operators and mechanics, a suggested list of spare parts and maintenance tools, and warranty provisions. This information is used to calculate the life cycle cost, performance, and standardization values for each manufacturer’s vehicle. This indicates the anticipated additional lifetime costs to the Town that would result from the acquisition of any specific model of bus.
We received a bid from NovaBUS, the manufacturer of the RTS coach. Chapel Hill’s current fleet consists of two types of 35-foot vehicles, the RTS and the Gillig Phantom. The only other interested bidder in this procurement was Orion Bus Industries.
We denied Orion’s request to accept the transverse engine configuration (T drive) as an approved equal. The Gillig Phantom that we currently operate has a T-drive configuration. This configuration necessitates that components be mounted on brackets or frame pieces instead of directly to the engine in order to fit in the compartment. The Gillig Phantom has had many maintenance problems since purchased in 1995. The problems encountered are due to excessive vibration, caused by components mounted on the frame of the vehicle as opposed to directly on the engine, resulting in premature failure.
We felt strongly that we did not want a third type of vehicle added to our fleet as this necessitates stocking additional parts and specialty tools used exclusively for each vehicle. Standardization of a fleet based on service, maintenance and reliability is a common consideration and is part of the evaluation process used in bus procurements. We discussed our concerns with our project administrator at the Federal Transit Administration. We were given permission to deny the Orion Bus request to accept a T-drive engine, based on our concerns, and therefore, received only one bid.
A summary of the bid received is as follows:
|
Nova BUS, Incorporated |
|
|
|
|
Unit Price |
Total |
|
Two (2) Advanced Design Transit Coaches (with the Cummins Engine)*** |
$263,381 |
$526,762 |
|
Fifteen (15) Advanced Design Transit Coaches (with the Detroit Diesel Engine) |
$266,295 |
$3,994,425 |
|
Bid – Total |
|
$4,521,187 |
|
Resident Inspections and Highway Use Tax |
|
$50,500 |
|
Project – Total |
|
$4,571,687 |
***We are trying 2 buses with the Cummins engine / Voith transmission to evaluate the reliability of this configuration. Properties with the Cummins / Voith package indicate that they are experiencing less transmission failure and longer engine life.
|
Option - Up to 10 Additional 35’ Advanced Design Coaches within 180 days |
$266,295 |
$2,662,950 |
NovaBUS, Incorporated met all requirements of the specifications and procurement schedule. Manufacture and delivery of the buses have been quoted at 273 days from the date of award.
That the Council adopt the following resolution awarding a contract for 17 35-foot advanced design coaches, with the option for up to 10 additional buses, to Nova BUS, Incorporated.
A RESOLUTION AWARDING A CONTRACT FOR THE PURCHASE OF 17 35-FOOT ADVANCED DESIGN TRANSIT COACHES (2001-03-26/R-5)
WHEREAS, the Council of the Town of Chapel Hill has solicited formal bids by legal notice on October 4, 2000 in accordance with G.S. 143-129 for the purchase of 17 buses with an option for 10 additional 35-foot advanced design transit coaches; and
WHEREAS, in accordance with the specifications and consideration of life cycle costs; and
WHEREAS, the following bid was received and opened on December 19, 2000:
|
Nova BUS, Incorporated |
|
|
|
|
Unit Price** |
Total |
|
Two (2) Advanced Design Transit Coaches (with the Cummins Engine) |
$263,381 |
$526,762 |
|
Fifteen (15) Advanced Design Transit Coaches (with the Detroit Diesel Engine) |
$266,295 |
$3,994,425 |
|
Bid – Total |
|
$4,521,187 |
|
Resident Inspections and Highway Use Tax |
|
$50,500 |
|
Project Total |
|
$4,571,687 |
**Includes $2,051 delivery charge per bus
|
Option - Up to 10 Additional 35’ Advanced Design Coaches within 180 days |
$266,295 |
$2,662,950 |
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that a contract for the purchase of 17 buses in an amount of $4,521,187 be awarded to NovaBUS, Incorporated.
BE IT FURTHER RESOLVED, that the Council authorizes the expenditure of $50,500 for required Bus Line Inspections and associated costs for a project total of $4,571,687.
BE IT FURTHER RESOLVED, that the Council authorizes the award of an option for up to 10 additional buses on this bid, pending agreement for service expansion among the partners and securement of local matching funds to cover the needed 10% match.
This the 26th day of March, 2001.