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Item 1.H.
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| City Council Regular | |
| Date: | 12/19/2022 |
| Title: | MET Transit Purchase of Four Heavy Duty Electric Transit Buses and Charging Equipment from Gillig, LLC |
| Presented by: | Rusty Logan |
| Department: | Transit |
| Presentation: | No |
| Legal Review | Yes |
RECOMMENDATION
Staff recommends Council approve the agreement for $4,423,264 with Gillig, LLC to purchase four Heavy Duty Electric Transit Buses and Charging Equipment.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City of Billings MET Transit system was notified by the Federal Transit Administration on August 16, 2022, of its successful application and award of competitive Low-No Bus and Bus Facility funds to purchase four electric buses, related charging infrastructure, and staff development items. In accordance with 49 USC 5339(C)10, the Federal regulation authorizing the Low-No Program, MET Transit opted to utilize partnership provisions in the submitted application for competitive funds. The referenced regulation states, "A recipient of a grant under this subsection may submit an application in partnership with other entities, including a transit vehicle manufacturer, that intends to participate in the implementation of an eligible project under this subsection. Eligible projects awarded with partnerships under this subsection shall be considered to satisfy the requirement for a competitive procurement under [49 USC] Section 5325 - [Contract Requirements]." This provision allowed MET Transit to directly partner with transit vehicle manufacturer Gillig, LLC to leverage that company's experience and expertise in deploying electric vehicles and related equipment. MET Transit has an 18+ year relationship with Gillig, LLC, as MET's previous fleet consisted of 19 Gillig Heavy Duty Transit vehicles (two of which are still being used) that were utilized well beyond their minimum useful life. MET Transit utilized feedback from transit agencies operating electric buses in similar climates and geographic locations who also recommended Gillig for reasons including vehicle performance and maintenance considerations. Due to the referenced partnership and governing regulation, a formal bid for purchase of these buses was not required because the competitive grant process with partnership provisions fulfilled the competitive requirement of the utilized funds. Since the grant was awarded not only on the basis of MET Transit's ability to execute the project, but also on the selected partner's ability to fulfill the requirements of implementation, the City of Billings MET Transit staff are requesting to move forward with the purchase of the electric vehicles and supporting charging systems from Gillig, LLC. Pricing for the contract items has been established utilizing an in place and in effect multi-state purchasing agreement held and executed by the State of Washington. This agreement competitively established heavy-duty bus prices with available options for the states of Washington, Oregon, Idaho, and Alaska, and provides the ability for governments across the nation to utilize the purchase options available under said contract. Washington State contract is attached for your review; standard City of Billings Purchasing Agreement with applicable Federal Transit Administration clauses is utilized for the purchase with Gillig.
ALTERNATIVES
City Council may:
- Approve the purchase of four Heavy Duty Electric Transit Buses and supporting Charging Systems for a total of $4,423,264; or
- Not Approve the purchase and advise staff on how to proceed.
FISCAL EFFECTS
Purchase of the four heavy duty electric transit buses will be executed using a combination of Federal and local funding at approximately 22% local and 78% Federal across the entire project. MET Transit has adequate local capital reserves to execute this project and is utilizing Section 5339(c) competitive Federal funds awarded by the Federal Transit Administration. Pricing details as follows:
| Item | QTY | Unit Price | Local % | Total Local | Federal % | Total Federal | Total Price |
| Gillig 35 ft Heavy Duty Electric Transit Bus | 4 | $989,566 | 20.1% | $796,264 | 79.9% | $3,162,000 | $3,958,264 |
| Chargepoint Express 200kw Dual Dispenser Charger | 2 | $232,500 | 37.2% | $173,0000 | 62.8% | $ 292,000 | $ 465,000 |
| Totals: | 21.9% | $969,264 | 78.1% | $3,454,000 | $4,423,264 |
Attachments
- City of Billings Purchase Agreement
- Washington GILLIG Contract
- Washington Contract Purchasing Agreement