MET Transit is planning to replace two 2002 Nova buses.  These buses are eligible for replacement under both Federal Transit Administration (FTA) Regulations and the City of Billings Equipment Replacement Program.  These buses have incurred larger than normal maintenance costs and have met their useful life of twelve years.  The new buses will meet the Clean Air Act Standards (CAA) and the Americans with Disabilities Act (ADA) requirements.  This replacement will maintain the integrity of the MET fleet.  Bids were received on Tuesday, September 30, 2014.

City Council may:

• Approve the purchase of two Transit buses to be used on MET Transit's Fixed Routes; or
• Disapprove the purchase of the two Transit buses.

MET Transit received two bids for the new buses. One bid did not meet specifications in a number of critical areas.  The second bid did meet all specifications at a price of  $215,554 per bus for a total of $431,108. These buses will be purchased through the FTA Section 5339 Grant program.  FTA supplies 85% ($366,441.80) of the purchase price and the Local match is 15% ($64,666.20), which is budgeted in MET's Capital fund. 

Staff recommends that City Council approve the bid from Davey Coach for the purchase of two 31 foot Low Floor Diesel Transit Buses to be used on MET Transit's fixed routes at a price of $431,108.