 |
AGENDA RECOMMENDATION |
Consent Calendar 5.H.
City Council Regular Meeting
- Meeting Date:
- 08/11/2025
Agenda Item:
Resolution authorizing the purchase of seven Class 400 Low Floor Medium Duty Replacement Buses.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
In 2024, Central Garage noted excessive frame rust damage on the seven 2017-year group Class 400’s which have exceeded their useful life-age benchmark. MnDOT was notified of the issue and advanced the replacement of the buses.
As you recall, six were budgeted for replacement in 2025 and the seventh was advanced from 2026 to 2025 at the January 27, 2025, Council Meeting.
Internal Service Funds (7000) Equipment Replacement:
The estimated cost to purchase one Class 400 low floor medium duty bus is $275,000. Using the cost share percentages from funding sources, the local funding requirement of $27,500 will be sourced from the equipment replacement fund until reimbursed.
The buses will be purchased utilizing the Minnesota Cooperative Purchasing Venture. Ordering is expected to be completed in August with delivery expected in 10 months.
As you recall, six were budgeted for replacement in 2025 and the seventh was advanced from 2026 to 2025 at the January 27, 2025, Council Meeting.
Internal Service Funds (7000) Equipment Replacement:
| Year | Description | Estimated Cost to Replace |
| 2025 | Class 400 Bus (each) | $64,200 |
| 2026 | Class 400 Bus (each) | $69,000 |
The estimated cost to purchase one Class 400 low floor medium duty bus is $275,000. Using the cost share percentages from funding sources, the local funding requirement of $27,500 will be sourced from the equipment replacement fund until reimbursed.
| Project Description | Federal % | State % | Local % | Project Cost | Federal Funding | State Funding | Local Funding |
| Purchase Six Class 400 Replacement Buses | 0 | 90 | 10 | $1,650,000 | $0 | $1,485,000 | $165,000 |
| Purchase One Class 400 Replacement Bus | 80 | 10 | 10 | $275,000 | $220,000 | $27,000 | $27,500 |
| Total Project | $1,925,000 | $220,000 | $1,512,500 | $192,500 |
The buses will be purchased utilizing the Minnesota Cooperative Purchasing Venture. Ordering is expected to be completed in August with delivery expected in 10 months.