TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Procurement of Forty (40) Forty-Foot Zero Emission Buses
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager, or his designee, to (a) execute documents through the State of Virginia and the State of California Consortium Contracts to purchase twenty (20) forty-foot Gillig battery electric buses and twenty (20) forty-foot New Flyer fuel cell buses; and (b) to execute contracts directly with Gillig Inc. and New Flyer of America for the purchase of said buses.
Body
STRATEGIC IMPORTANCE:
Goal - Environmental Improvement Initiative
Initiative - Zero Emission Programs
In addition to reducing emissions outlined in the Districts Clean Corridor Plan, these new zero emission buses (ZEB) will enhance service quality by replacing old diesel buses that are past their useful life. Adding more zero emission buses will also assist in the District meeting the California Air Resources Board (CARB) Innovative Clean Transit (ICT) regulation.
BUDGETARY/FISCAL IMPACT:
The purchase of the forty (40) zero emission buses is fully funded by various state sources, including the Transit and Intercity Rail Capital Program (TIRCP) and Senate Bill 1 Local Partnership Program (SB1 LLP) funds. The project is programmed in FY2019-20 - FY2023-24 Capital Improvement Plan and will cost approximately $46.5 million The project will be funded entirely with grant funds, no District funds will be needed.
BACKGROUND/RATIONALE:
Grants were originally secured for the purchase of forty-five (45) high-capacity zero-emission buses (ZEBs) on the MacArthur Clean Corridor and a new service between Emeryville Amtrak Station and San Francisco. As these buses are not yet commercially available, staff discussed the option of purchasing forty-foot ZEBs with the granting agencies and received no objections. Staff recommends the purchase of forty (40) forty-foot ZEBs to operate on routes identified in the Clean Corridors Plan, including the MacArthur Corridor.
As approved by the Board in February 2020, the next phase with the committed $53.5 million grant funding, will include the following:
1. The purchase of twenty (20) New Flyer forty-foot fuel cell buses and twenty (20) Gillig forty-foot battery electric buses. This purchase, via piggybacking on the consortium contracts, is a more convenient and economical way to purchase these buses. The District has conducted its usual due diligence in ensuring these consortium contracts were competitively sourced to meet the Federal Transit Administration’s (FTA) required fair and reasonable pricing standards and proper contracting procedures were undertaken during the original contracting process. Consistent with FTA requirements, the District will complete a price/cost analysis, ensure contracts include requisite clauses and certification standards and conduct all pre/post certifications and audits to ensure compliance with regulations.
2. The purchase of a small-scale charging infrastructure at Emeryville, Division 2.
3. The design of the future charging infrastructure at Emeryville, Division 2 and Oakland, Division 4.
ADVANTAGES/DISADVANTAGES:
The advantage to the District is to utilize grant awards to purchase forty (40) ZEBs to replace aging diesel buses in the fleet as well as move the District progressively in the direction of converting its fleet to a zero-emission fleet.
The disadvantage of this project is that it will take considerable staff time to plan and execute as this is the largest purchase of ZEBs that the District has undertaken to date. The project will require additional planning and construction to install charging facilities for the battery electric buses.
ALTERNATIVES ANALYSIS:
An alternative to purchasing these buses through the California State and the Virginia State consortium contracts is soliciting these buses through the issuance of a Request for Proposals (RFP). However, this alternative would not be the best option as it will require utilizing considerable District resources and time to award a contract for forty (40) buses in order to meet the requirements of the grant agreement. Not only is the RFP solicitation a lengthy and onerous process, there is no guarantee that the District could win favorable pricing and/or contract terms through its own procurement process, especially given the current economic climate and limited ZEB manufacturers.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 19-340: October 30, 2019 Board Retreat Presentation
Staff Report 19-340a: 45 Zero Emission Bus Purchase
Board Policy 465 - Procurement Policy
ATTACHMENTS:
None
Prepared by:
Stuart Hoffman, Technical Services Manager
In Collaboration with:
Evelyn Ng, Capital Planning and Grants Manager
Mika Miyasato, Senior Transportation Planner
Approved/Reviewed by:
Jill A. Sprague, Assistant General Counsel
Claudia L. Allen, Chief Financial Officer
Chris Andrichak, Director of Management and Budget
Cecil Blandon, Director of Maintenance
Gene Clark, Director of Procurement and Materials
Salvador Llamas, Chief Operating Officer