Jule Transit International Medium-Duty Vehicle Engine Issue Replacement ProgramCopyrighted
September 18, 2017
City of Dubuque Action Items # 6.
ITEM TITLE: Jule Transit International Medium -Duty Vehicle Engine
Issue Replacement Plan
SUMMARY: City Manager recommending approval of a replacement
plan due to unexpected engine issues occurring in the
International Medium Duty buses in The Jule fleet.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Medium Duty Vehicle Engine Issue - Replacement Plan City Manager Memo
- MVM Memo
Staff Memo Staff Memo
THE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Medium Duty Vehicle Engine Issue — Replacement Plan
DATE: September 11, 2017
Dubuque
bell
All -America City
'1Il1'
2007 • 2012 • 2013 • 2017
Transit Manager Candace Eudaley is transmitting information on unexpected engine
issues occurring in the International Medium Duty buses and recommending the repair
of some vehicles and the replacement of others.
The Jule has 12 International Medium Duty buses with Navistar EGR-only MaxxForce
engines. This engine model is the subject of a class-action lawsuit claiming that
Navistar knowingly concealed defects from buyers. The Jule vehicles are beginning to
show the same defects that are outlined in the lawsuit. The engines can't handle the
amount of heat and pressure they generate, which leads to issues like broken valves
and exhaust leaks that harm other parts of the engine and cooler failures causing the
engine to shut down immediately. The engine issue can also cause coolant and
exhaust fumes to enter the cab. City Attorney Crenna Brumwell is exploring the legal
remedies available to the City of Dubuque.
Since August 15, 2017, The Jule has had five vehicles shut down, causing passenger
delays and vehicles to be towed from their route location. These vehicles should not be
driven without repair.
The only remedy for the engine breakdown is an engine overhaul, at a cost of
approximately $10,200/bus, or at a cost of approximately $22,500/bus for a full motor
replacement if too much damage has occurred. The total cost to repair these buses
ranges from $147,000 to $270,000 depending on the severity of the engine failure and
the type of repair required.
Eleven of the 12 Medium Duty buses have approximately one year of Federal Transit
Administration "useful life" remaining based on expected mileage and years in service.
The other vehicle has approximately two to three years of useful life in miles.
The Jule also has four Heavy Duty Gillig buses. These vehicles are in good condition
and have approximately six years left in their useful life.
While the City currently has 16 fixed -route buses, it is believed the fixed -route system
can operate with 15. The City also owns 2 trolley -style buses that are used in the
summer months and 13 light duty buses for its MiniBus services.
Because The Jule fleet is "young" relative to other transit vehicles in the state, The Jule
is low on the list for grant -funded replacement. Replacement vehicles will need to be
funded through local sources.
Ironically, by buying used vehicles with local funds, the City will have an older fleet and
can move up the replacement list more quickly. For example, a used older Gillig Heavy
Duty bus would be operationally better, but would be scheduled for replacement using
state and federal funding sooner than the existing International Medium Duty buses.
The goal is to repair and return six vehicles to service at an estimated cost of $61,200.
Six vehicles are recommended for replacement, at an estimated cost of $288,150.
Following review of available used buses, management and maintenance staff
recommend purchase of used Heavy Duty Gillig buses in the 30 foot length option when
possible. There are several advantages to purchasing a used Gillig bus including the
reputation and the City's local experience of Gillig buses as being high quality vehicles,
low floor ramp entrance for improved access for individuals with disabilities, fuel
efficiency is similar to the current International Medium Duty buses, and long-term, one
bus type is preferred to simplify driver and mechanic training, component purchasing
and bus stop location planning.
Transit Manager Candace Eudaley recommends:
1. The 6 vehicles recommended for repair immediately undergo the engine
overhaul to ensure continuity of service and to avoid further damage and
additional expense,
2. Approval to request from FTA that the vehicles recommended for retirement be
retired prior to the end of their useful life,
3. Approval to purchase 5 used Gillig buses to replace those that will be retired to
ensure continuity of service.
The total cost is estimated at $349,315. The $61,200 for repairs will come from the
Transit operating budget. Sources for the $288,150 to purchase used replacement
vehicles have been identified. The City will work to recover these expenses from
International.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
kitt
Michael C. Van Milligen
2
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Candace Eudaley, Transit Manger
Maurice Jones, Economic Development Director
3
Masterpiece on the Mississippi
TO: Michael C Van Mil!igen, City Manager
FROM: Candace Eudaley, Transit Manager
CC: Maurice Jones, Economic Development Director
Jenny Larson, Budget Director
Jodi Johnson, Operations Supervisor
John Klosterman, Public Works Director
Paul Herman, Acting Vehicle Maintenance Supervisor
Crenna Brumwell, City Attorney
DATE: August 31, 2017
Dubuque
bitti
All -America City
11111 r
2007..2012.. 2013 • 2017
RE: International Medium Duty Vehicle Engine Issue — Replacement Plan
INTRODUCTION
The purpose of this memo is to inform you of unexpected engine issues occurring in the
International Medium Duty buses that will result in expenses above those estimated for
FY18 Due to the age, condition, and depreciated value of these vehicles only some are
recommended for repair This memo outlines which vehicles should be retained and
repaired and which should be retired and replaced as well as recommendations for
replacement vehicles
BACKGROUND
Engine Issue Description
The Jule has 12 International Medium Duty buses with Navistar EGR-only MaxxForce
engines This engine model is the subject of a class-action lawsuit claiming that Navistar
knowingly concealed defects from buyers City Attorney Crenna Brumwell is exploring the
legal remedies available to the City of Dubuque
Our vehicles are beginning to show the same defects that are outlined in the lawsuit
The engines can't handle the amount of heat and pressure they generate which leads to
issues like broken EGR valves and exhaust leaks that harm other parts of the engine and
EGR cooler failures causing the engine to shut down immediately These sudden
breakdowns force the drivers to perform emergency maneuvers to get the vehicle off the
road The engine issue can also cause coolant and exhaust fumes to enter the cab
Since August 15, 2017, The Jule has had three vehicles shut down while operating on
route causing passenger delays and vehicles to be towed from their route location These
should not be driven without repair Two additional vehicles shut down, but are not
driveable over 10mph without repair
Transit Service Impact:
The number of vehicles with known or expected major defects is over 30% of our fixed
route fleet. The number of inoperable vehicles is threatening the Jule's ability to continue
operation of fixed -route service. We currently have no spares available.
Repair Costs:
The only remedy for the engine breakdown is an engine overhaul, at a cost of
approximately $10,200/bus, or at a cost of approximately $22,500/bus for a full motor
replacement if too much damage has occurred.
Cost estimates were provided by the two local International/Navistar providers: Thompson
Truck and Trailer and BK Diesel. Estimates for the motor replacement are for a
used/rebuilt motor to reduce cost. Thompson Truck and Trailer provides the lowest price
as well as a 1 year parts and labor warranty.
Each engine overhaul requires the vehicle to be out of service for 4 days. Each motor
replacement requires the vehicle to be out of service for 2 weeks.
The total cost to repair these buses ranges from $147,000 to $270,000 depending on the
severity of the engine failure and the type of repair required.
Current Fleet Status:
The City purchased the International Medium Duty buses in 2011 for $144,786 per bus.
The current straight line depreciated value is $20,540. The resale value is expected to be
much lower.
11 of the 12 International Medium Duty buses have approximately 1 year of FTA "useful
life" remaining based on expected mileage and years in service. The other vehicle has
approximately 2-3 years of useful life in miles.
In addition to the engine issues detailed above, the International Medium Duty buses
have cracks and other failures in the vehicle body, loud engines that result in frequent
complaints from residents, loud rattling lifts, poor suspension system resulting in rough
rides for passengers, and ongoing maintenance expenses related to the age and quality
of the vehicles.
Body Damage Images
2
The Jule also has 4 OiIlig Heavy Duty buses These vehicles are in good condition and
have approximately 6 years left in their useful life
While the City currently has 16 fixed -route buses It is believed the fixed -route system can
operate with 15 The City also owns 2 trolley -style buses that are used in the summer
months and 13 light duty buses for its MiniBus services
DISCUSSION
Even though most of the International Medium Duty buses are reaching their FTA defined
useful life expiration, the fleet is "young" relative to other transit vehicles in the state,
Dubuque is low on the list for grant -funded replacement Replacement vehicles will need
to be funded through local sources
Ironically, by buying used vehicles with local funds, the City will have an older fleet and
can move up the replacement list more quickly For example, a used older GIIlig Heavy
Duty bus would be operationally better, but would be scheduled for replacement using
state and federal funding sooner than our existing International Medium Duty buses
The following proposal outlines the International Medium Duty buses with the lowest
mileage and active advertising contracts which would be an additional expense to the City
if the vehicle was retired prior to the end of the advertising contract Operations
Supervisor, Jodi Johnson will work with the Acting Vehicle Maintenance Supervisor, Paul
Herman, and Thompson Truck & Trailer to return 6 vehicles to service at the lowest cost
to the City The list below is based on estimated repairs needed If the vehicles on the
repair recommendation list require additional work beyond what is listed below, the
estimated cost will be weighed against the vehicle condition and advertising contract
expenses, and recommendations may change
Repair Recommendation
The followinRvehicles are
Vehicle Number Mileage
2651 160,181
recommended for repair Repair costs are estimated
Repair Cosi Advertising Liability
$10,200 $7,900 rear until Nov 2017
Sides pending renewal
2652 $10,200 $7,900 until July 2018
2653 $10,200 $1,974 renewal pending
162,578
160,724
3
2657
2659
2660
169,824
164,839
166,686
$10,200
$10,200
$10,200
Total $61,200
Replace/Retire Recommendation:
The following vehicles are recommended for replacement:
Vehicle Number
2650
2654
2655
2656
2658
2661
Mileage
164,546
167,071
166,271
166,216
175,096
125,790
Repair Cost
$22, 500
$10,200
$10,200
$10,200
$10,200
$22, 500
Total $85,800
$7,900 until July 2018
$3,145 until Jan. 2018
$2,585 until Jan. 2018
$31,404
Advertising Liability
$0
$0
$0
$0
$0
$0
$0
FTA approval is required to retire a vehicle before the end of its useful life. This process
has been initiated.
Purchase Recommendation:
Following review of available used buses, management and maintenance staff
recommend purchase of used Heavy Duty Gillig buses in the 30 ft length option when
possible. There are several advantages to purchasing a used Heavy Duty Gillig bus
including the reputation and our local experience of Heavy Duty Gillig buses as being high
quality vehicles, low floor ramp entrance for improved access for individuals with
disabilities, fuel efficiency is similar to the current International Medium Duty buses, and
long-term, one bus type is preferred to simplify driver and mechanic training, component
purchasing and bus stop location planning.
Year/Make Status
2002 Gillig 35ft
2002 Gillig 35ft
2003 Gillig 30ft
2002 Gillig 30ft
2002 Gillig 30ft
Used, As -Is, NoA/C
Used, As -Is, NoA/C
Used - Refurbished
Used - Refurbished
Used - Refurbished
Total Project Cost
Purchase
Price
$8,750
$8,750
$80,000
$80,000
$80,000
Make -Ready Costs*
$8,035
$8,035
$4,860
$4,860
$4,860
Total Warranty Days to
Delivery
$16,785 No 14
$16,785 No 14
$84,860 1 Year 60
$84,860 1 Year 60
$84,860 1 Year 60
$288,150
*Make-ready costs include delivery, paint, logos, installation of IT hardware, and cameras.
To preserve transit system integrity, the two used vehicles that were available for $8,750,
have already been ordered. They have no air conditioning so during the cool weather
months, they will be front line vehicles and during the warm weather months they will only
be used as spares.
4
Used buses come in the following three categories
1 Used, As -Is Includes DOT inspection and related repairs for compliance, but no
cosmetic improvements or warranty
2 Refurbished Remove rust, reconstruct body, replace windows (tinted windows
available), refinish exterior, recondition and refinish wheels, Repair engine, power
clean, inspect/repair drive train, clean/replace flooring, reupholster seats and siding
with choice of premium fabric, repaint seat backs, recondition NC vents/covers
3 Remanufactured All components replaced, repaired or rebuilt in addition to the
refurbished scope These buses are completed to compete with a new vehicle
BUDGET IMPACT
As these are unexpected and unbudgeted expenses occurring early in the Fiscal Year,
The Jule will likely exceed the budgeted internal and outsourced maintenance line items
The combination of repairing 6 International Medium Duty buses, ($61,200) and replacing
5 International Medium Duty buses with used Gillig Heavy Duty buses ($288,115) is a
total estimated cost of $349,315
Repairs to the 6 International Medium Duty buses will be funded from the Transit
operating budget As the refurbished vehicles come with a one year warranty and the
avoided expenses of maintenance to the 5 vehicles planned for retirement should be
enough to keep the operating budget maintenance line items near their budgeted
amounts Jule staff will monitor the maintenance line items closely and alert the budget
office and City Manager if the operating budget will be negatively impacted
Purchasing the used and refurbished buses will require additional funds and approval to
put other Transit capital projects on hold The table below outlines estimated expenses for
bus replacement and capital funding sources that have been identified
Fund Description
1 CIP 600-1222 Replace MiniBuses
1 CIP 600-2235 Bus Stop Improvements
1 Driver Shuttle Vehicle Replacement
1 Sale of 2 Trolleys
1 Sale of Retired Vehicles (pending FTA approval)
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Fund Amount
$29,175
$20,000
$22,500
$50,000
$60,000
CIP 350-1453 Eagle Point Park Replace Walkway
CIP 350-2358 Eagle Point Park Paint Pavilions
CIP 102-2113 Grand River Center Replace Carpet
CIP 350-2590 Grand River Center Energy Efficiency Improvements
Total Capital Project Funding H0053400-62528 Fixed Route Bus Operations — Outsourced Maintenance
Total Operating Project Funding
Total Project Funding
$34,687
$22,760
$30,000
$20,000
$289,122
$61,200
$61,200
$350,322
RECOMMENDATION
I recommend the following:
1. The vehicles recommended for repair immediately undergo the engine overhaul to
ensure continuity of service and to avoid further damage and additional expense,
2. Approval to request from FTA that the vehicles recommended for retirement be
retired prior to the end of their useful life,
3. Approval to purchase the used GiIIig buses to replace those that will be retired to
ensure continuity of service.
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