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AGENDA RECOMMENDATION |
Consent Calendar 5.F.
City Council Regular Meeting
- Meeting Date:
- 09/28/2026
Agenda Item:
Resolution authorizing the purchase of two 35-foot Class 700 Low Floor Heavy Duty Buses through the Washington State Transit Bus Cooperative Contract.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The buses were identified in the 2026 Annual Budget with an estimated 10% local share price.
Internal Service Funds (7000)
Equipment To Replace In 2026
The service life designated by the FTA for a Class 700 bus is 12 years or 500,000 miles. Both vehicles meet the service life for years of service.
MnDOT provided a notice of projects selected for funding through the Bus and Bus Facility Formula Program 5339(a). MnDOT has decided not to support bus purchase funding in lieu of additional support of operating funds.
The cost to purchase a 35-foot Class 700 low floor heavy-duty bus is $847,965. Using the cost share percentages from federal and state sources, the local funding requirement of $254,390 will be sourced from the equipment replacement fund until reimbursed. A change to the Transportation Improvement Program will account for the price increase of $120,965 per bus from the estimates.
The City of Mankato is an approved member of the Washington State Cooperative and eligible to purchase buses from the awarded vendors. Minnesota’s Cooperative Procurement Contract for heavy-duty buses has expired and will not be renewed because of the Washington State option.
Mankato Transit currently has Class 700 BRT buses manufactured by Gillig and would ideally order through Gillig again because of cost, fleet consistency, service availability, and past vendor performance. For 2026, Gillig offers a newly designed Clean Diesel Bus powered by the Cummins L9 engine meeting today’s EPA emissions standards while using advanced technology to reduce emissions and improve fuel efficiency up to 15%. It produces 50% less nitrogen oxide and 75% less particulate matter than a diesel bus from a decade ago, providing a cleaner option for today’s transit needs.
Ordering is expected to be complete in October with delivery expected at the end of 2028. The manufacturing time for buses continues to be influenced by supply chain issues.
Internal Service Funds (7000)
Equipment To Replace In 2026
| ID | Year | Mileage | Description | Estimated Cost |
| 864 | 2012 | 291,169 | Class 700 Bus – 35 foot | $145,400 |
| 865 | 2013 | 258,125 | Class 700 Bus – 35 foot | $145,400 |
The service life designated by the FTA for a Class 700 bus is 12 years or 500,000 miles. Both vehicles meet the service life for years of service.
MnDOT provided a notice of projects selected for funding through the Bus and Bus Facility Formula Program 5339(a). MnDOT has decided not to support bus purchase funding in lieu of additional support of operating funds.
The cost to purchase a 35-foot Class 700 low floor heavy-duty bus is $847,965. Using the cost share percentages from federal and state sources, the local funding requirement of $254,390 will be sourced from the equipment replacement fund until reimbursed. A change to the Transportation Improvement Program will account for the price increase of $120,965 per bus from the estimates.
| Project Description | State Transportation Improvement Program (STIP) | Federal % | State % | Local % | Project Cost | Federal Funding | State Funding | Local Funding |
| Class 700 Replacement Bus 864 Biodiesel | TRF-0028-26J | 85 | 00 | 15 | $847,965 | $720,770 | $0 | $127,195 |
| Class 700 Replacement Bus 865 Biodiesel | TRF-0028-26J | 85 | 00 | 15 | $847,965 | $720,770 | $0 | $127,195 |
| Total | $1,695,930 | $1,441,540 | $0 | $254,390 | ||||
The City of Mankato is an approved member of the Washington State Cooperative and eligible to purchase buses from the awarded vendors. Minnesota’s Cooperative Procurement Contract for heavy-duty buses has expired and will not be renewed because of the Washington State option.
Mankato Transit currently has Class 700 BRT buses manufactured by Gillig and would ideally order through Gillig again because of cost, fleet consistency, service availability, and past vendor performance. For 2026, Gillig offers a newly designed Clean Diesel Bus powered by the Cummins L9 engine meeting today’s EPA emissions standards while using advanced technology to reduce emissions and improve fuel efficiency up to 15%. It produces 50% less nitrogen oxide and 75% less particulate matter than a diesel bus from a decade ago, providing a cleaner option for today’s transit needs.
Ordering is expected to be complete in October with delivery expected at the end of 2028. The manufacturing time for buses continues to be influenced by supply chain issues.