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CONSIDERATION OF APPROVAL, REJECTION, AMENDMENT, AND/OR POSTPONEMENT OF AUTHORIZATION TO PURCHASE ONE (1) 35-FOOT ELECTRIC TRANSIT BUS FROM GILLIG IN THE AMOUNT OF $914,242 UTILIZING THE COMMONWEALTH OF VIRGINIA CONTRACT NUMBER E194-81688.
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BACKGROUND: On September 22, 2020 City Council approved Resolution R-2021-43 authorizing the City Manager or his designee to submit a grant application on behalf of the City of Norman to the Oklahoma Department of Environmental Quality’s (OKDEQ) On-Road Program of the Volkswagen Settlement Trust for a 35-foot battery electric bus.
On November 6, 2020 City staff were notified that the City’s application was successful and the City should expect to be awarded $450,000 for the estimated $900,000 electric bus project (50% was the maximum that could be awarded for this type of project).
On March 9, 2021 City Council approved K-2021-102, a Memorandum of Agreement (MOA) with OKDEQ. The MOA was the next step in receiving a formal Notice to Proceed so that the City could continue the procurement process. The MOA entered the City and OKDEQ into a contractual relationship spanning the procurement process until the City receives reimbursement.
On April 29, 2021 City staff were given a formal Notice to Proceed for the project.
DISCUSSION: Since receiving the formal notice to proceed from OKDEQ, staff have been working with the transit vehicle manufacturer Gillig to finalize a vehicle specification and price for the 35-foot electric bus. Currently, five (5) of the City’s thirteen (13) fixed route buses (and five (5) out of nine (9) heavy duty vehicles) are manufactured by Gillig. Staff have discussed the need to partner with Gillig on this procurement to capitalize on efficiencies for parts, support, warranty, and general familiarity with Gillig products. Gillig is the manufacturer who provided the initial price estimate for the grant application to OKDEQ.
Purchasing the electric bus using the Commonwealth of Virginia’s contract will satisfy Norman’s code section 8-204(4) - “supplies, materials, equipment, or contractual services when purchased at a price not exceeding a price set therefor by the state purchasing agency or any other state agency authorized to set prices for things purchased by the state”. In addition, the Commonwealth of Virginia contract number E194-81688 was bid to meet the proper Federal Transit Administration (FTA) requirements. Currently, the State of Oklahoma does not have a robust, heavy-duty transit vehicle state contract.
The final price of the 35-foot electric bus submitted by Gillig is $914,242. This will result in the City matching the $450,000 grant funding with $464,242 in local funding. Funds for this purchase are available in the FYE 2021 budget in Public Works/Transit Division General Fund, Service Equipment/Bus (27550276-45007). Once the new vehicle is received, City staff will render inoperable and retire bus 5-0319, an 18-year-old diesel unit, as required by the grant. Staff will then submit for reimbursement from OKDEQ for their share of the project. Once received, the grant funds will be received into the Public Transit Fund, Other Revenue-Miscellaneous Grant Reimbursement account (275-331346).
If approved, staff will initiate a purchase order with Gillig which will put the vehicle in the queue for production. Delivery to Norman is expected to be around June-September 2022 (approximately 12-15 months). Once received, this vehicle will be utilized in the City’s fixed route system and rotated throughout the routes.
RECOMMENDATION: Staff recommends that City Council authorize the purchase of the 35-foot electric transit bus from Gillig in the amount of $914,242 utilizing the Commonwealth of Virginia contract number E194-81688.