SR 10-25-2016 3N
Ci ty Council
Report
City Council Meeting : October 25, 2016
Agenda Item: 3.N
1 of 6
To: Mayor and City Council
From: Edward King, Director , Big Blue Bus, Transit Finance & Grants
Subject: Purchase of 27 Gillig CNG Buses for Replacement
Recommended Action
Staff recommends that the City Council:
Authorize the City Manager to negotiate a nd execute a fourth modification to A greement
#9855 with Gillig , LLC , a California -based company , to furnish and deliver twenty 40 -
foot buses in an a mount not to exceed $13,680,737 , and seven 30 -foot transit buses in
an amount not to exceed $4,717,157 , pow ered by Renewable Compressed Natural Gas
(RCNG ), for a total amount not to exceed $18,397,894. This would result in a third -year
amended agreement with a new total amount not to exceed $44,581,412, with future
year funding contingent on Council budget appr oval.
Executive Summary
Big Blue Bus (BBB) has developed a bus replacement plan that enables BBB to replace
buses that have reached their useful life cycle of twelve years . The goal of the
replacement plan is to purchase new vehicles that have the latest environmentally -
friendly propulsion technology and to continue to further reduce emissions . The
recommended purchase of the 27 Gillig CNG buses would be powered by a new
Cummins Near -Zero emission change that runs on Renewable Compressed Natural
Gas. The new Near -Zero engine reduces harmful NOx emissions by 80%, and the use
of Renewable Natural Gas reduces Green House Gases. This combination would make
th ese vehicle s the cleanest operating bus es in BBB’s fleet. The purchase of these
buses meets the goal of reducing transit bus emissions.
BBB recommends the purchase of twenty 40 -foot CNG transit buses that would enable
the timely replacement of twenty 2004 LNG New Flyer 40 -foot transit buses that will
have reached the end of their 12 -year useful life c ycle by the delivery date of the new
buses.
2 of 6
The purchase of seven 30 -foot CNG transit buses would enable BBB to meet
operational needs for vehicles with a smaller footprint and turning radius, as they would
improve maneuverability in narrow streets and i ntersections. The seven 30 -foot buses
would replace seven 2004 LNG New Flyer 40 -foot transit buses that have reached the
end of their 12 -year useful life cycle.
The total combined purchase amount for seven 30 -foot CNG transit buses and twenty
40 -foot CNG buses including spare parts, training and warranty, is not to exceed
$18,397,894.
Background
BBB has 50 Liquid Natural Gas (LNG) buses that are due for replacement. The buses
were purchased in 2004 and have reached their useful life of 12 years or 500,0 00 miles
per Federal Administration (FTA) guidelines. The recommended purchase of twenty 40 -
foot and seven 30 -foot CNG transit buses would replace twenty -seven 2004 40’ LNG
buses that have reached the end of their lifecycle. Thus far, 40 buses have been
pu rchased and delivered through Agreement 9855.
On January 14, 2014, the City entered into Agreement #9855 with Gillig, LLC to
purchase up to 99 vehicles of 30 -, 35 -, and 40 -foot, low floor, CNG powered transit
vehicles.
On June 10, 2014, Council au thorized the purchase of eleven 40 -foot buses and the
City Manager to execute the first modification to Agreement #9855 for an amount not to
exceed $6,763,405.
On April 14, 2015 , Council authorized the purchase of four 30 -foot buses and twenty -
five 40 -foo t buses and the City Manager to execute a second and third modification
respectively, to Agreement #9855 for an amount not to exceed $19,420.112.
Staff is recommending the purchase of twenty 40 -foot and seven 30 -foot CNG transit
buses and that Council au thorize the City Manager to negotiate and execute a fourth
3 of 6
modifi cation to Agreement #9588 for an amount not to exceed $18,397,894. If the
purchase is approved, the remaining number of transit buses eligible for purchase
through agreement #9855 buses would be 32.
The recommended action would result in a fourth modification to purchase twenty 40 -
foot buses at $630,035 per bus and seven 30 -foot buses at $614,579 per bus, including
tax, delivery, ADA compliance, and extended warranties. Additional costs in the amount
of $500,000 for spare parts and special tools, $150,000 for technical training and
$845,138 for contingency would bring the modification total amount to not to exceed
$18,397,894.
Discussion
Big Blue Bus is committed to further reducing harmf ul gas emission s . BBB’s bus
replacement plan helps meet the goal of timely replacement of vehicles that have
reached thei r useful life of twelve years and continue to further reduce emissions . The
current plan includes phasing in four zero -emission buses b y 2018, five by 2022, and
continued replacement of CNG buses with electric buses over the next eight years.
Because the industry has yet to fully embrace this technology due to facility and
electrical grid infrastructure costs, the current plan is subject to change. At this time,
staff is in the process of evaluating proposals from qualified vendors to conduct a
“Technology Neutral Study for the Big Blue Bus Fleet Plan.” This study/analysis will
include the opportunities and challenges of operating electr ic vehicles in an urban
transportation environment, electric vehicle range, vehicle cost, BBB facility
infrastructure cost, industry best practices, sources of electricity and carbon offsets, and
evaluating potential funding opportunities.
The purchase of 27 Gillig buses, with the near -zero engines, is in line with BBB’s bus
replacement plan to continue to provide reliable, safe and up to date vehicles to deliver
the highest level of service quality to our customers, while also achieving the Council
goal of a zero carbon emission bus fleet by 2030. In order to achieve the goals of the
BBB fleet replacement program these vehicles will replace buses purchased in 2004
that have surpassed their useful life. As part of the progression toward a zero -emission
4 of 6
bus fleet, the new buses would have the lowest NOx emissions of any bus in BBB’s
fleet, allowing BBB to reduce emissions in its fleet while investigating the best path to
zero emissions.
T he 27 new Gillig CNG -powered buses would be equipped with the new near -zero
emission engine that reduces harmful NOx emission by 80%. In combination with the
use of Renewable Compressed Natural Gas (RCNG), the 27 new transit buses would
be the lowest exhaust emission vehicles in BBB’s fleet. The se buses would produce
87 6 pounds of NOx emissions per year ; the transit buses they would replace produce
42,821 pounds of NOx. The total reduction of harmful NOx would be 41,975 pounds.
Staff is recommending the purchase of more 30 -foot buses as BBB has implemented
new service o n corridors where a 30 -foot bus may be more suitable than a 40 -foot
vehicle . As staff continues to improve service on the new north -south corridors and
other corridors in the service area where a 40 -foot bus would not be operable due to
street width and t urn radii, having 30 -foot vehicles to provide service is extremely
beneficial. BBB currently operates 30 -foot buses on Route 18 (4th Street and Montana
Avenue), Route 43 (26th Street), as well as Route16 (20 th Street).
At this time, staff recommends re placing twenty -seven 40’ transit buses, which have
reached their useful life of 12 years, in the following manner:
Recommended
Purchase
Number of
Buses
Purchase Justification Delivery Schedule
40' CNG powered
Gillig buses
20 Replace (20) 2002 and
2004 40 -foot LNG buses
20 months from order
placed
30' CNG powered
Gillig buses
7
Replace (7) 2004 40 -foot
New Flyer LNG buses
on routes where shorter
buses are recommended
20 months from order
placed
5 of 6
The cost of the buses is as follows:
(20) 40 -foot CNG G illig Buses
Base $10,695,180
ADA $889,480
Tax $1,016,042
Contingency $630,035
Spare Parts $300,000
Training $150,000
Total $13,680,737
(7) 30 -foot CNG Gillig Buses
Base $3,644,508
ADA $311,318
Tax $346,228
C ontingency $215,103
Spare Parts $200,000
Total $4,717,157
Total modification amount to Agreement #9855 in a total not to exceed $18,397,894.
Vendor Selection
Santa Monica's Big Blue Bus, along with 21 other agencies, participated in a jo int
procurement to purchase buses. Central Contra Costa Transit Authority (CCCTA), in
Concord, California, the lead agency, issued a Request for Proposal (RFP) for the
production and delivery of 30 -, 35 -, and 40 -foot heavy -duty low floor transit buses.
C CCTA determined Gillig, LLC was the best bidder , w ith the understanding that Council
approval would be obtained separately through the term of the contract to authorize the
purchase of buses in quantities and configurations to be specified, in conformance with
the contract documents. A maximum of 99 buses would be purchased under this
contract contingent on funding availability.
6 of 6
Financial Impacts and Budget Actions
The modification of Agreement #9855 with Gillig, LLC is for an amount not to exceed
$18,3 97,894. Funds are available in the FY 2016 -17 Capital Improvement budget. The
purchase will be charged to account C410519.589000.
Prepared By: Enny Chung, Sr. Admin Analyst - Grants
Approved
Forwarded to Council
Attachments:
A. Contract with Gillig LLC to Purchase 40 Foot Buses
B. Issue a Notice to Proceed to Gi llig LLC to Purchase Eleven (11) 40 -foot
Compressed Natural Gas Buses
C. Authorize a Notice to Proceed to Gillig LLC to Purchase Four 30 -foot and 25 40 -
foot Compr essed Natural Gas Buses
D. April 14, 2015 City Council Minutes (Web Link)
E. June 10, 2014 City Council Minutes (Web Link)
Reference:
Modified Agreement No. 9855
(CCS)