HomeMy WebLinkAboutA001 - Council Action Form dated October 22, 2024ITEM #:17
DATE:10-22-24
DEPT:TRANSIT
SUBJECT:RESOLUTION APPROVING AWARD OF CONTRACT FOR PURCHASE OF
TWO 40' HEAVY-DUTY DIESEL BUSES
COUNCIL ACTION FORM
BACKGROUND:
CyRide has been awarded grant funding to replace two 40’ heavy-duty buses that are 24 years old and
past their useful life. Funding for the new buses was approved in the FY 2023 Capital Improvements
Plan. Due to rapid bus price increases, additional funding was allocated by the Iowa DOT through the
Congestion Mitigation and Air Quality (CMAQ) program. The budget based on grant funding is shown
below and was included in the Capital Improvements Plan:
Funding Source Funding
Federal Local Total
Iowa DOT Contract for 5339 Discretionary Funding $879,946 $155,284 $1,035,230
CMAQ Funding $43,970 $10,992 $54,962
Total $923,916 $166,276 $1,090,192
Reviewing options for procurement, CyRide has determined that the most cost-effective method for
purchasing new buses is to utilize a state cooperative procurement schedule. Statewide purchasing
schedules allow CyRide to reduce administrative time and leverage the buying power of many agencies,
which would not otherwise be available if CyRide were to pursue an independent procurement process.
Through the State of Iowa, the most favorable option for CyRide is the Washington State cooperative
procurement schedule.
CyRide’s current fleet of 40’ heavy-duty diesel Gillig Low Floor buses has consistently proven to be
cost-effective and reliable. There are significant savings realized by keeping the bus fleet standardized
to one manufacturer, including a reduction in spare parts inventory, lower costs for additional training,
and quicker repair times. As a result, CyRide has selected Gillig as the preferred manufacturer for this
purchase.
Pricing was requested from Gillig, which resulted in a cost per bus of $628,498 for a total
purchase price of $1,256,996 for two buses. This cost is higher than the available funding.
Following this result, staff re-evaluated procurement options and determined that proceeding
with the Washington State contract was still the most cost-effective approach available to CyRide.
While higher than expected, the price provided was found to be fair and reasonable in light of the
national purchasing environment and comparable buses from other manufacturers.
Based on the pricing received, an additional $166,804 in local funding would be required to
purchase both buses. The additional funding could come from the 40’ Bus Replacement Capital
Reserve Fund.
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A revised budget has been calculated based on the bus pricing provided, shown in the following table.
Funding Source Funding
Federal Local Total
Iowa DOT Contract for 5339 Discretionary Funding $879,946 $155,284 $1,035,230
CMAQ Funding $43,970 $10,992 $54,962
Additional Local Funding (40' Bus Reserve Fund) $166,804 $166,804
Revised Total Project Budget $923,916 $333,080 $1,256,996
Gillig expects delivery of the vehicles to occur approximately 15 months after a purchase order is
issued. Additional build options are being considered for these buses and will be maintained within the
overall budget. CyRide will continue to refine bus specifications until approximately six months before
the vehicles are built, at which point, the manufacturer will provide updated pricing. Since vehicle
pricing is not finalized until late in the process, CyRide is requesting a not-to-exceed amount of
$1,256,996.
The Transit Board of Trustees approved the award of the contract to Gillig LLC at its October 17, 2024,
meeting.
ALTERNATIVES:
1. Approve award of contract for two 40’ heavy-duty diesel buses to Gillig LLC of Livermore,
California, for a total cost not-to-exceed amount of $1,256,996.
2. Do not approve the award of contract for the purchase of two new 40' heavy-duty diesel buses.
CITY MANAGER'S RECOMMENDED ACTION:
Award of this contract will enable CyRide to replace obsolete buses with new vehicles, improve
efficiency, and move CyRide closer to meeting its federal Transit Asset Management (TAM) plan
goals, while reducing overall fleet emissions using newer, cleaner-burning engines . Therefore, it is
the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described
above.
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