TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Procurement of Non-Revenue Vehicles
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to execute documents through the State of California State Consortium Contract for the procurement of fourteen (14) non-revenue vehicles to replace older vehicles that have surpassed their useful life.
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Service Quality
These new non-revenue vehicles will enhance service quality by replacing older higher maintenance and emissions service trucks for the District. These vehicles will replace both large and small maintenance and facilities service trucks located at each of the Divisions.
BUDGETARY/FISCAL IMPACT:
Budget for the 14 vehicle procurement is $1,000,000 using State Transit Assistance - State of Good Repair 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 Transit Asset Management Final Rule requires transit providers to set State of Good Repair (SGR) performance targets for non-revenue vehicles.
Currently the District has 77 non-revenue vehicles beyond the useful life and 70 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 |
QUANTITY |
|
YEAR |
AGE |
QUANTITY |
|
1998 |
24 |
1 |
|
2011 |
11 |
1 |
|
1999 |
23 |
2 |
|
2013 |
9 |
7 |
|
2000 |
22 |
4 |
|
2015 |
7 |
11 |
|
2001 |
21 |
16 |
|
2016 |
6 |
17 |
|
2002 |
20 |
3 |
|
2017 |
5 |
14 |
|
2004 |
18 |
1 |
|
2018 |
4 |
10 |
|
2005 |
17 |
5 |
|
2019 |
3 |
10 |
|
2006 |
16 |
14 |
|
TOTAL |
70 |
|
2007 |
15 |
7 |
|
|
|
|
|
2008 |
14 |
8 |
|
|
|
|
|
2009 |
13 |
5 |
|
|
|
|
|
2014 |
8 |
11 |
|
|
|
|
|
TOTAL |
77 |
|
|
|
|
The fleet of 147 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 non-revenue vehicles. Other Transit Agencies/Districts utilize the same procurement strategy, 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 fuel cell 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. Since the availability for zero emission and hybrid powertrain heavy-duty trucks is not available, staff is recommending the purchase of conventional gasoline powered drive 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.
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.
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 trucks offered that would meet the District vehicle requirements. The District decided to purchase conventional gasoline powertrain 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 No. 465: Procurement Policy
Staff Report 18-226 Non-Revenue Vehicle Procurement
ATTACHMENTS:
1. Vehicle Replacement and Purchase list.
Prepared by:
Stuart Hoffman, Technical Services Manager
In Collaboration with:
Evelyn Ng, Capital Planning and Grants Manager
Cheryl Sudduth, Procurement & Material Manager
Chris Durant, Assistant Director of Maintenance
Approved/Reviewed by:
Jill A. Sprague, General Counsel
Chris Andrichak, Chief Financial Officer
Cecil Blandon, Director of Maintenance
Fred Walls, Director of Procurement and Materials
Salvador Llamas, Chief Operating Officer