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AGENDA RECOMMENDATION       
Consent Calendar   5.G.
City Council Regular Meeting
Meeting Date:
09/28/2026

Agenda Item:

Resolution authorizing the purchase of one 29-foot Class 700 Low Floor Heavy Duty Bus through the Washington State Transit Bus Cooperative Contract.

Recommendation/Action(s):

Adoption of the attached resolution.

Summary:

A Class 400 bus was identified in the 2026 Annual Budget with an estimated 10% local share price. Its replacement is recommended as a 29-foot Gillig versus the 26-foot Arboc.

Internal Service Funds (7000)
Equipment To Replace In 2026
 
ID Year Mileage Description Estimated Cost
832 2019 154,835 Class 400 Bus – 26 foot $143,400

The service life designated by the FTA for a Class 400 bus is 5 years or 150,000 miles. The vehicle meets both service life metrics. The 2025 cost to purchase a Class 400 low floor medium duty bus is $321,000.  

Central Garage Superintendent, in consultation with Transit staff, recommends replacing Bus 832 with a 29-foot Class 700 bus which will carry a service life designated by the FTA of 12 years or 500,000 miles. The 29-foot bus will operate on fixed routes 5, 7, or 13.

MnDOT provided a notice of projects selected for funding through the Bus and Bus Facility Formula Program 5339(a). The remaining funds will come from Urbanized Area Formula Grant (Section 5307) Capital Funds. MnDOT has decided not to support bus purchase funding in lieu of additional support of operating funds.

The cost to purchase a 29-foot Class 700 low floor heavy-duty bus is $839,548. Using the cost share percentages from federal and state sources, the local funding requirement of $150,410 will be sourced from the equipment replacement fund until reimbursed. A change to the Transportation Improvement Program will account for the price increase of $122,548 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 832 TRF-0028-26F 85 00 15 $350,000 $297,500 $0 $52,500
Class 700 Replacement Bus 832 TRF-0028-26K 80 00 20 $489,548 $391,638 $0 $97,910
Total $839,548 $689,138 $0 $150,410

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 completed in October with delivery expected at the end of 2028. The manufacturing time for buses continues to be influenced by supply chain issues. 

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