HomeMy WebLinkAboutItem 6g. Authorization to Approve Purchase of Two (2) Battery Electric Buses Item 6g
Department: Public Works
Cost Center: 5201
For Agenda of: 3/19/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager
SUBJECT: AUTHORIZATION TO APPROVE PURCHASE OF TWO (2) BATTERY
ELECTRIC BUSES
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, Approving the Purchase of Two Battery Electric Buses for use by San
Luis Obispo (SLO) Transit.”
POLICY CONTEXT
The State of California Air Resources Board’s Innovative Clean Transit (ICT) regulation
requires all transit agencies to transition their eligible fleet to zero-emission technologies.
The ICT regulation also requires transit agencies to adopt a Zero -Emission Rollout Plan
to guide implementation of zero-emission technologies. On March 5, 2024, City Council
adopted SLO Transit’s Zero-Emission Rollout Plan. The recommended action in this
report complies with the ICT regulation and is consistent with the future bus purchase
schedule outlined in the adopted Zero-Emission Rollout Plan.
On June 6, 2023, City Council established Climate Action, Open Space, and Sustainable
Transportation as a Major City Goal with the adopted the 2023 -25 Financial Plan. The
adopted 2023-25 Financial Plan includes a Capital Improvement Plan (CIP) which lists
“Bus Replacement with EV” (project no. 1000505, now 2000505) as an approved project.
On December 13, 2022, City Council adopted the City’s adopted Climate Action Plan
2023-27 Work Program, which includes task 4.1A – Continue to electricity the SLO Transit
Fleet.
Municipal Code Section 3.24.060(E) allows for direct purchasing when the purchase is
made cooperatively with one or more government agencies. This report recommends
adopting a draft Resolution (Attachment A) approving the purchase of two (2) battery
electric buses via the State of Washington’s cooperative agreement for purchasing transit
vehicles.
DISCUSSION
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Item 6g
Background
The Federal Transit Administration (FTA) has established a Useful Life Benchmark1 for
all vehicle types used by transit agencies. The Useful Life Benchmark sets forth the
length of time at which a vehicle must be in operation prior to being eligible for
replacement. The useful life for a large, heavy-duty bus is 12 years or 500,000 miles;
whichever comes first. SLO Transit follows the FTA’s Useful Life Benchmark for
procurement and retirement of all its revenue fleet vehicles. Between 2012 and 2013,
SLO Transit purchased and put into service two large, heavy duty 40-foot low-floor buses.
The 2012 model bus has met its 12 -year useful life and is eligible for replacement while
the 2013 model will be eligible for replacement next year. Table 1 shows the replacement
status for SLO Transit’s revenue fleet vehicles.
Table 1: SLO Transit Fleet Replacement Status
Direct Purchase via Cooperative Agreement
Washington State offers a cooperative procurement agreement for transit vehicles and
serves as the lead agency for procurement. Washington State has satisfied the federal
competitive procurement process which allows eligible agencies to participate in
cooperative agreements without the need to solicit for proposals. The City’s Municipal
Code section 3.24.060(E) allows for direct purchasing when the purchase is made
cooperatively with one or more government agencies in place of the City’s bid procedures
which typically must be followed for these types of purchases. Participating in cooperative
procurements reduces staff time and resources required to solicit for and execute
separate procurement agreements.
1 Federal Transit Administration (FTA) defines useful life as that age (i.e. number of years) after which an
asset is no longer “fit for use” in the sense that is becomes worn, not fully operational, unreliable, and/or
does not otherwise deliver transit service of acceptable quality.
Vehicle #Make Length Model Fuel Year
Manu.
Age
(in Years)
Useful Life
Remaining Replacement Status
_754 Gillig 30'Low Floor Diesel 2007 17 -7 To be retired
_755 Gillig 30'Low Floor Diesel 2007 17 -7 To be retired
_856 Double K 30'Trolley Gasoline 2008 16 -4 Scheduled for 2028
_857 Gillig 40'Low Floor Diesel 2008 16 -4 On order
_858 Gillig 40'Low Floor Diesel 2008 16 -4 On order
_859 Gillig 40'Low Floor Diesel 2008 16 -4 On order
_860 Gillig 40'Low Floor Diesel 2008 16 -4 On order
_861 Gillig 35'Low Floor Diesel 2008 16 -4 On order
_862 Gillig 35'Low Floor Diesel 2008 16 -4 On order
_963 Alex. Dennis 40'Double Deck Diesel 2009 15 -3 Scheduled for 2028
1264 Gillig 40'Low Floor Diesel 2012 12 0 Pending Approval
1365 Gillig 40'Low Floor Diesel 2013 11 1 Pending Approval
1366 Gillig 40'Low Floor Diesel 2013 11 1 Scheduled for 2026
1167 El Dorado 28'Cutaway Gasoline 2011 13 -3 Scheduled for 2025
1768 Gillig 40'Low Floor Diesel 2017 7 5 Scheduled for 2029
1769 Gillig 40'Low Floor Diesel 2017 7 5 Scheduled for 2029
1770 Gillig 40'Low Floor Diesel 2017 7 5 Scheduled for 2029
2371 Proterra 35'Low Floor Electric 2022 2 10 Scheduled for 2034
2372 New Flyer 35'Low Floor Electric 2022 2 10 Scheduled for 2034
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Item 6g
In July 2023, the City used the Washington State cooperative agreement to configure,
receive a quote, and issue a purchase order to Gillig, LLC (Gillig) for six (6) battery electric
buses. Staff used the same cooperative agreement to solicit a quote from G illig for two
additional battery electric buses. Gillig provided a quote letter on January 26, 2024,
(Attachment B) for two battery electric buses at $2,558,278 total or $1,279,139 each. The
quote letter requires issuance of a purchase no later than March 31, 2024, to secure the
buses at the quoted price.
Next Steps, if Approved
If Council approves the recommended action, then transit staff will work with the City’s
Finance Department to issue a purchase order prior to the quote letter expiration date,
report the purchase to the State of Washington, and report the purchase to the FTA. Gillig
will then schedule a pre-production meeting with City staff to confirm bus configuration
options. The quote letter commits to production of buses within 24 months of pu rchase
order issuance. Based on this timeline, delivery of buses is anticipated to occur summer
2026 and into operation by the end of December 2026.
Staff will also pursue the same process for the support infrastructure to support the buses,
including charging stations, power block, and any necessary utility upgrades. This work
will be done in coordination with Capital Improvement Projects (CIP) Engineering staff,
contracted transit operations and maintenance services provider, and with the City’s
electrical utilities provider (PG&E).
Previous Council Action
1. March 5, 2024 – City Council adopted SLO Transit’s Zero-Emission Rollout Plan
as required by the State of California Air Resources Board’s Innovative Clean
Transit regulation.
2. July 18, 2023 – City Council authorized the appropriation of undesignated Transit
Fund balance for the purchase of six (6) battery electric buses.
3. June 6, 2023 - City Council established Climate Action, Open Space, and
Sustainable Transportation as a Major City Goal with the adop ted the 2023-25
Financial Plan. The adopted 2023-25 Financial Plan includes a Capital
Improvement Plan (CIP) which lists Bus Replacement with EV (project no.
1000505) as an approved project.
4. December 13, 2022 - City Council adopted the City’s adopted Climate Action Plan
2023-27 Work Program which includes task 4.1A – Continue to electricity the SLO
Transit Fleet.
Public Engagement
This is an administrative item intended to carry out previously approved plans and
direction, so no public engagement was completed specific to the proposed purchase of
these two electric buses. Public comment can be provided to the City Council through
written correspondence submitted prior to the meeting and through public testimony
during the meeting.
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Item 6g
CONCURRENCE
This proposed action has the concurrence of the Administration Department’s Office of
Sustainability as the action furthers the City’s climate action goals. The Finance
Department concurs with the direct purchase of the battery electric buses via cooperative
agreement. The action is also in alignment with the City’s Fleet Replacement Policy which
prioritizes electric fuel source vehicles over gas and diesel powered fleet vehicles.
ENVIRONMENTAL REVIEW
The recommended action is not considered a “Project” under California Environmental
Quality Act (CEQA) Guidelines Section 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ 0 $ 0 $ 0 $ 0
State Grants (TDA) $ 478,124 $ 383,742 $ 94,382 $ 0
Federal (FTA 5307) $ 2,709,371 $ 2,174,536 $ 534,835 $ 0
Transit Fund $ 0 $ 0 $ 0 $ 0
Total $ 3,187,495 $ 2,558,278 $ 629,217 $ 0
The adopted 2023-25 Financial Plan included approval of project no. 1000505 (now
2000505) to replace existing diesel-powered buses with battery electric equivalents. The
total budget for project no. 2000505 is $10,128,461 over the five-year plan period. The
purchase of two battery electric buses, totaling $2,588,278, is within the overall budget
for this project. The project purpose and budget will be updated with the Supplemental
Budget to more accurately reflect this purchase, if approved.
The City secured $2,709,371 in federal funding through the Federal Transit
Administration’s (FTA) Urbanized Area Formula Grant (49 U.S.C. § 5307) program. In the
grant application, the City identified use of $478,124 in Transportation Development Act
(TDA) funding as the required local match. The funding is earmarked for the purchase of
two battery electric buses and associated charging infrastructure.
Through the State of Washinton’s cooperative agreement for purchasing transit vehicles,
staff configured a bus to the City’s preferred specifications and was provided a cost quote
by Gillig, LLC for two battery electric buses at $2,558,278 total or $1,279,139 each. The
remaining $629,217 in FTA 5307 and TDA grant funds will be used for the purchase and
install of charging stations and a power block to support the new battery electric buses.
The charging infrastructure purchase will occur at a later date through the same
cooperative agreement process.
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Item 6g
ALTERNATIVES
Council could decide not to authorize the purchase. This action is not recommended
by staff because the purchase of zero-emission vehicles aligns with multiple City policies
and advances SLO Transit’s ability to meet state zero-emission mandates. The
recommended purchase aligns with the Federal Transit Administration’s useful life
benchmark for heavy duty bus replacements. Operating buses beyond their useful life
increases maintenance needs and decreases reliability of services. Additionally, federal
grant funding secured for the purchase can only be used for capital projects.
ATTACHMENTS
A - Draft Resolution approving the purchase of two battery electric buses
B - Gillig, LLC quote letter dated January 26, 2024
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R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE PURCHASE OF TWO
BATTERY ELECTRIC BUSES FOR USE BY SAN LUIS OBISPO (SLO)
TRANSIT
WHEREAS, the City of San Luis Obispo operates the San Luis Obispo (SLO)
Transit system; and
WHEREAS, in October 2019, the State of California’s Air Resources Board
Innovative Clean Transit regulation became effective which requires all public transit
agencies to transition their eligible fleet vehicles to zero-emission technologies; and
WHEREAS, the City Council, through the adoption of the City’s Climate Action
Plan and the City’s Fleet Replacement Policy, prioritizes electric fuel source vehicles over
gas- and diesel-powered fleet vehicles including transit fleet vehicles; and
WHEREAS, in July 2020, Council approved the purchase of the SLO Transit’s first
battery electric buses to replace existing diesel-powered buses; and
WHEREAS, in July 2023, the City of San Luis Obispo received $2,709,371 in
federal funds under the Federal Transit Administration’s (FTA) Urbanized Area Formula
Grants (49 U.S.C. § 5307) for the purchase of two battery electric buses and associated
charging infrastructure; and
WHEREAS, the City of San Luis Obispo is using $478,124 in Transportation
Development Act (TDA) state grant funding for the required local match; and
WHEREAS, Municipal Code section 3.24.060(E) allows for direct purchasing when
the purchase is made cooperatively with one or more government agencies; and
WHEREAS, staff identified a Washington State transit bus cooperative purchasing
agreement which meets the federal procurement requirements, compared battery electric
vehicle manufacturer specifications and pricing, and determined manufacturer Gillig, LLC
(Gillig) to be the best fit for the City of San Luis Obispo’s transit needs; and
WHEREAS, on January 26, 2024, Gillig provided a cost quote of $1,279,139 for
each battery electric bus per the City of San Luis Obispo’s configurations which requires
a purchase order be issued by March 31, 2024, to secure purchase at the quoted price.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Luis Obispo does hereby authorize the following:
1. Approve the purchase of two battery electric buses from Gillig, LLC at the
quoted price (Exhibit A); and
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Resolution No. ____ (2024 Series) Page 2
R ______
2. Authorize the Public Works Director to prepare, file, secure assurances and
concurrences, submit necessary documents associated with, and other
necessary actions for the purchase of the two battery electric buses.
Upon motion of ______________, seconded by ________________, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of __________ 2024.
________________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purington
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
________________________________
Teresa Purrington
City Clerk
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Resolution No. ____ (2024 Series) Page 3
R ______
EXHIBIT A
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January 26, 2024
Mr. Austin O’Dell
Interim Transit Manager
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Dear Mr. O’Dell,
Thank you for your interest to purchase two (2) 40’ Low Floor Plus Battery Electric Buses
through the State of Washington RFP#2020 06719-01.
Attached you will find the State of Washington RFP price tabulation that would pertain to
the City of San Luis Obispo order. GILLIG is pleased to quote the following:
TWO (2) 40’X102” BATTERY ELECTRIC BUSES $1,279,139.00 EA
This price is valid until March 31, 2024. Prices exclude registration and license fees but
does include CA Sales Tax (8.75% adjusted to 4.8125%). The production of your buses
can be scheduled within 24 months from receipt of purchase order. To maintain this
production schedule, we will require a firm purchase order by March 31, 2024.
We thank you for this opportunity and appreciate your interest in GILLIG and our products.
We certainly look forward to working with City of San Luis Obispo and in so doing,
continuing to build our long-term partnership. Should you have any questions, please do
not hesitate to contact me.
Sincerely,
Sean Solis
Sean Solis
Regional Sales Manager
cc: William F. Fay, Jr.
Javier Hernandez, Jr.
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