TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Purchase of fifteen (15) Non-Revenue Vehicles
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager, or his designee, to execute documents through the State of California State Consortium Contract for the procurement of fifteen (15) non-revenue passenger vehicles, to replace older vehicles that have surpassed their useful life.
Staff Contact:
Salvador Llamas, Chief Operating Officer
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Service Quality
These passenger vehicles will enhance service quality by replacing older full size passenger vehicles that have higher maintenance costs and emissions. These vehicles will replace support vehicles located at each of the Divisions.
BUDGETARY/FISCAL IMPACT:
The procurement is included in the current approved Capital Budget with a budget of $450,000 in District funds.
BACKGROUND/RATIONALE:
The District operates a fleet of non-revenue vehicles to support operations and all departments, including on-street supervision, parts delivery, emergency response, facilities, equipment and bus stop maintenance, operator relief, mail delivery, and other various administrative functions. In compliance with the Federal Transit Administration (FTA) Transit Asset Management (TAM) Final Rule, the District established a capital procurement program to govern the acquisition and disposal of non-revenue vehicles. The TAM Final Rule requires transit providers to set State of Good Repair (SGR) performance targets for non-revenue vehicles. Currently the District has ninety-four (94) non-revenue vehicles beyond the useful life and fifty-two (52) non-revenue vehicles within the useful life. The table below shows the purchase year, age, and quantity of active non-revenue vehicles.
|
BEYOND THE USEFUL LIFE |
|
WITHIN THE USEFUL LIFE |
|
YEAR |
AGE |
QTY |
|
YEAR |
AGE |
QTY |
|
1998 |
25 |
1 |
|
2016 |
7 |
17 |
|
1999 |
24 |
1 |
|
2017 |
6 |
20 |
|
2000 |
23 |
7 |
|
2018 |
5 |
5 |
|
2001 |
22 |
13 |
|
2019 |
4 |
10 |
|
2002 |
21 |
2 |
|
TOTAL |
52 |
|
2004 |
19 |
1 |
|
|
|
|
|
2005 |
18 |
13 |
|
|
|
|
|
2006 |
17 |
8 |
|
|
|
|
|
2007 |
16 |
6 |
|
|
|
|
|
2008 |
15 |
9 |
|
|
|
|
|
2009 |
14 |
4 |
|
|
|
|
|
2010 |
13 |
1 |
|
|
|
|
|
2013 |
10 |
7 |
|
|
|
|
|
2014 |
9 |
11 |
|
|
|
|
|
2015 |
8 |
10 |
|
|
|
|
|
TOTAL |
94 |
|
|
|
|
The fleet of one hundred forty-six (146) non-revenue vehicles includes many vehicles that have reached the end of their useful life and require replacement. This vehicle purchase was scheduled for Fiscal Year 2021; however, it was delayed due to the pandemic and the associated impacts to District. To bring the non-revenue fleet closer to the Transit Asset Management State of Good Repair target and reduce maintenance costs, the District is moving toward the industry standard of operating gasoline powered non-revenue vehicles for 7 years or 100,000 miles.
The California State Multiple Award Schedule is the most cost-effective option for the procurement of nonrevenue vehicles. This action is in accordance with 2 CFR 200.318(e) “to foster greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the Federal Government, the non-Federal entity is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services.” Competition requirements will be met with the documented procurement actions issued by the State of California’s solicitation and resulting contract. Other Transit Agencies/Districts utilize the same procurement strategy (piggyback, cooperative), which serves to capitalize on volume discounts and robust specifications that meet Federal and State procurement requirements.
District staff researched gasoline and various alternative fueled vehicles available utilizing the State contract. The state consortium contract has options for the purchase of gasoline, hybrids, and battery electric vehicles. Evaluation of vehicles for this procurement took into consideration vehicle cost, duty cycle, fleet conformity, current infrastructure, and quantity of vehicles that can be produced to help reduce the fleet age. Staff is recommending the purchase of conventional gasoline powered vehicles until the average age and mileage of the fleet is reduced closer to the industry standards. If grant funds become available to purchase alternative propulsion system vehicles or prices become comparable to conventional powertrain vehicles, staff will consider the alternative propulsion vehicles for future vehicle procurements. Attachment (1) lists staff’s recommendation of the new vehicles to be purchased and those to be disposed of by the District. Determination of vehicles identified for disposal shall be administered through the District’s policies and procedures and will be presented to the Board at a later date, if it meets the designated estimated market value in Board Policy 461.
ADVANTAGES/DISADVANTAGES:
The advantage of replacing the high mileage vehicles is the reduction of maintenance costs, vehicle emissions, and improved reliability of the newer vehicles. There are no known disadvantages to replacing the older, higher mileage non-revenue fleet vehicles.
ALTERNATIVES ANALYSIS:
The alternative analysis associated with this report included the review of electric, hybrid electric, plug-in hybrid electric and fuel cell non-revenue vehicles. At this time there were no zero emission or alternative fueled passenger vehicles offered that would meet the District vehicle requirements and budget. The District decided to purchase conventional gasoline vehicles at this time due to the ability to purchase more vehicles to replace the backlog of high mileage vehicles in the current non-revenue fleet.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 465 - Procurement Policy
Staff Report 21-452 Non-Revenue Vehicle Procurement
ATTACHMENTS:
1. Vehicle Replacement and Purchase list.
Prepared by:
Richard Barbé, Technical Services Supervisor
In Collaboration with:
Chris Durant, Assistant Director of Maintenance
Michael Silk, Assistant Director of Procurement and Materials
Approved/Reviewed by:
Jill A. Sprague, General Counsel/Chief Legal Officer
Chris Andrichak, Chief Financial Officer
Cecil Blandon, Director of Maintenance
Fred Walls, Director of Procurement and Materials
Salvador Llamas, Chief Operating Officer