Purchase of Transit Vehicles with ITS Technology
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT:
Bus Replacement Recommendation Using Grant Funding
DATE:
November 12, 2010 (Revision of November 9, 2010 Memo)
In May and June of 2010, East Central Intergovernmental Association (ECIA) and City
staff prepared and submitted two federal grants for the replacement of the Keyline bus
fleet and to add Intelligent Transportation Systems (ITS) technology on the buses. The
State of Good Repair is a Federal Transit Administration (FTA) grant and 152 grants
were awarded nationally. The City of Dubuque was awarded $2.3 million from this grant
program. The purpose of the grant is to help bring buses, bus facilities, and related
equipment into the state of good repair. The City partnered with the Dubuque
Community School District and the Delaware, Jackson and Dubuque Regional Transit
Authority.
The second grant the City applied for with the assistance of ECIA was the Clean Fuels
grant with the City recently awarded $1.5 million. The program assists transit agencies
in purchasing low-emission buses and related equipment.
Combining both grants, the City has $3.8 million dollars for fleet replacement and
related ITS technologies. The ITS related technologies include such things as
electronic fare boxes, automated vehicle announcement systems, security cameras for
the fixed and minibuses, new scheduling software, automated vehicle locators for the
fixed route and minibuses as well as mobile data terminals for all the minibuses.
Additionally, there is funding to assist with the implementation of the Smarter
Sustainable Dubuque Vehicle Miles Traveled mobility study, which includes electronic
display boards and web based software to communicate with the display boards and the
general public’s cell phones and/or computers. Both grant timelines are one year
funding cycles and the City has been given the advanced authority to incur costs and
order the buses.
Both federal grants require a 17% local match on all buses purchased with the grants
funding the other 83%. There is a 20% local match requirement for ITS technologies
with 80% funded through the grant.
ECIA has been researching vehicles and looking at alternatives to downsize and right
size the fleet to accommodate the needs of consumers, save fuel and energy, and to
reflect the demands on the system. Several alternatives have been considered. ECIA
staff has worked very closely with Budget Director Jennifer Larson, and Equipment
Maintenance Supervisor Kevin Cornwell to review finances and fleet options and
configurations. Staff has researched electric hybrid buses versus clean diesel as well
as Compressed Natural Gas (CNG) options. CNG was ruled out immediately due to the
$200,000 additional cost per bus and the $1 million cost of a fueling station. Therefore,
the research focused on comparing the electric hybrid option with the clean diesel
option.
If the City would choose to purchase the electric hybrid fleet for its Heavy Duty (HD) and
Medium Duty (MD) buses, Keyline would be forced to purchase one two less HD buses,
one two less MD buses and one less (Light Duty) LD Sprinter bus, due to higher costs
for hybrids. An HD Clean Diesel 35’ bus costs approximately $343,000. An HD Hybrid
35’ bus is estimated to cost $543,000$548,000 ($200,000 $205,000 more per bus). An
MD clean diesel 30’ bus is estimated to cost $127,000 with a Hybrid version costing
$181,000 per bus ($54,000 more per bus). The annual fuel savings with electric hybrid
versus clean diesel including the new LD Clean Diesel Sprinters for all 12 HD/MD and
13 Sprinters buses is only $12,559 annually. When you compare the additional
$886,000$1,058,000 up front investment in hybrid technology costs to the savings in
fuel over 10 years which is only $125,590 for all vehicles, the additional investment in
the hybrid technology is not financially feasible over the expected life of the bus.
Another important point is that if the City buys electric hybrid buses the City will need to
purchase fewer buses. We would also have to retain some of our current fleet, which
have high maintenance costs and significant carbon footprint, poorer fuel economy and
spew more particulate matter.
These fewer new buses will put on more miles and will then need to be replaced
sooner, which will cost the City much more money in the long run.
One consideration related to the investment into hybrid technology is that the City will
need to purchase hybrid maintenance related tools and additional batteries for the
hybrid buses. This is an initial investment estimated at $45,445. Eighty percent of this
cost can be paid through grant funding. However, if the clean diesel option is selected,
this $45,445 can be put into the purchase of an additional bus for the fleet. The City
can utilize existing tools for the new clean diesel buses.
Maintenance savings in the first year is estimated at 50% reduction in maintenance for a
$212,948.00 annual maintenance estimated savings. Fuel savings in the first year is
estimated at $142,611. This total of $355,559 will go into property tax relief in the Fiscal
Year 2012 budget recommendation.
Finally, there is an emissions consideration when considering hybrid versus clean diesel
buses. Chandra Ravada, Transportation Director for ECIA, analyzed the difference in
emissions from the current 12 HD buses to the new proposed 12 MD buses plus the 4
HD buses. In summary, the particulate matter per ton per year is the highest concern
for our area due to our concerns about approaching the non-attainment thresholds. The
annual savings for the fleet in particulate matter per ton per year for MD and HD Hybrid
is .6744 tons/year versus MD and HD clean diesel at .6711 tons/year. This difference is
less than .0033 tons/year in particulate matter savings. The hybrid buses have a
minimal impact on the particulate matter that the area is most concerned about. There
is a greater savings in carbon monoxide in tons/year with hybrids saving over 595 tons
per year in carbon monoxide emissions for the entire fleet and the clean diesel saving
514 tons per year with an 81 ton per year difference. These two factors need to be
weighed against the initial investment of over $486,000$648,000 more for the twelve
MD hybrid buses and an additional $400,000$410,000 more for two hybrid HD buses.
Neither investment is recouped over the savings in the life of the vehicles.
Both federal grants will fund 83% of the bus purchases and 80% of the ITS technology
purchases. However, there is a 17% local match requirement for buses and a 20%
local match requirement for ITS. The Dubuque Community School District and the
Regional Transit Authority have both indicated that they have their portion of the local
match secured and in hand for their bus purchases.
With the clean diesel option, the total local match between both grants is $680,777.00.
Budget Director Jennifer Larson has identified the source of funding for the match from
the existing Fiscal Year 2011 budget.
There are several elements to consider in comparing Clean Diesel technology to
Hybrids. The most obvious is the upfront cost. The price of a 35 ft. HD Clean Diesel bus
is $342,785, and a 35 ft. HD Hybrid is $547,785 (a 60% difference in price). According
to the FTA, a Heavy Duty bus has 12 year Expected Life Cycle and a Medium Duty bus
a 7 year. Extended over its life, the annual cost of a HD Clean Diesel bus is $28,565 per
year, and for a HD Hybrid bus it is $45,648. A MD Clean Diesel bus annual cost is
$18,142 and for a MD Hybrid it is $25,857. Based on the price the City pays for 20%
Biodiesel the annual cost of fuel in a HD Clean Diesel bus is $13,850 and for a HD
Hybrid bus is $12,784; for a MD Clean Diesel it is $10,387 and for a MD Hybrid it is
$8,188. Combining the life cycle costs and fuel costs, the net annual savings of a Clean
Diesel HD bus versus a Hybrid HD is approximately $16,000 annually. The annual
savings on a MD Clean Diesel is estimated at $7,000. Another factor is that the more
each bus costs the fewer number of buses the City will be able to afford. Purchasing
fewer buses would result in Keyline retaining several of the current fleet in service.
These older buses have poorer fuel economy, a larger carbon footprint, spew more
particulate matter and have much higher maintenance costs.
It should also be noted that Clean Diesel is a proven technology with a solid and well
known record of operation in transit. Electric Hybrid still is in its infancy and its battery
technology is evolving. Hybrid buses offer only a minimal increase in engine fuel
efficiency: the estimated fuel usage in HD Clean Diesel is 6 miles per gallon (mpg) and
6.5 mpg in HD Hybrid, and on MD buses the difference is similar. The expected life of
the battery for a HD hybrid bus is 3 years, and for a MD bus 6 years. The cost of a
replacement battery for the HD bus is estimated at $25,000 and at $12,000 for MD
buses.
Based on the research and comparison of hybrid versus clean fuels technology and the
current state of the Keyline bus fleet, they are recommending purchasing clean diesel
buses as follows: 12 MD Clean Diesel buses; 2 HD Clean Diesel buses; 10 LD Clean
Diesel Sprinters or like vehicle, in addition to the 2 HD clean diesel buses and the 3 LD
Clean Diesel buses already on order. They also recommend moving forward with
purchasing the ITS related equipment and software as outlined in the two grants taking
into consideration the need to collaborate equipment purchases with the Smarter
th
Sustainable Dubuque VMT initiative. If ordered prior to November 30, the MD clean
diesel buses can be purchased through an open procurement in Minnesota. The MD
buses would be ordered immediately upon approval and are expected to arrive by
July 1, 2011. Unfortunately the open procurement for the Sprinters recently purchased
is no longer available. They recommend continuing to search for another open
procurement, but to also begin the process to issue an RFP for the vehicles. The two
additional heavy duty buses can be added to the current order for heavy duty buses if
thth
placed by November 30; those buses are expected for delivery by June 30, 2011.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
_____________________________________
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director, East Central Intergovernmental
Association
MEMO
TO: Michael C. Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director
RE: Bus Replacement Recommendation using Grant Funding
DATE: November 9, 2010
PURPOSE
The purpose of this memo is to discuss the recently funded federal transit grants, State of Good Repair
and Clean Fuels and provide a recommendation to utilize the grant funds to replace the entire Keyline
fleet and add Intelligent Transportation System technologies (ITS) to the fleet.
BACKGROUND
In May and June of 2010, ECIA and the City staff prepared and submitted two federal grants for the
replacement of the Keyline bus fleet and to add ITS technology on the buses. Both grants were highly
competitive. The State of Good Repair is an FTA grant and 152 grants were awarded valued at $776
million dollars nationally. The City of Dubuque was awarded $2.3 million from this grant program. The
purpose of the grant is to help bring buses, bus facilities, and related equipment into the state of good
repair. Additional points were given to grant applicants if they partnered with other transit providers
in the region. The City partnered with the Dubuque Community School District and the Delaware,
Jackson and Dubuque Regional Transit Authority.
The second grant the City applied for with the assistance of ECIA was the Clean Fuels grant with the
City recently awarded $1.5 million. FTA designed the program to assist designated ozone and carbon
monoxide air quality nonattainment and maintenance areas in achieving or maintaining the National
Ambient Air Quality Standards. The program accelerates the deployment of advanced bus
technologies by supporting the use of low-emission vehicles in transit fleets. The program assists
transit agencies in purchasing low-emission buses and related equipment. There was no partnership
requirements in this grant program, therefore, the total amount funded will be used for City buses and
related equipment.
Combining both grants, the City has $3.8 million dollars for fleet replacement and related Intelligent
Transportation Systems (ITS) technologies. The ITS related technologies include such things as
electronic fare boxes, automated vehicle announcement systems, security cameras for the fixed and
minibuses, new scheduling software to replace the troubled RouteMatch, automated vehicle locators
Page | 2
Bus Replacement
for the fixed route and minibuses as well as mobile data terminals for all the minibuses. Additionally,
there is funding to assist with the implementation of the Smarter Sustainable Dubuque Vehicle Miles
Traveled mobility study which includes electronic display boards and web based software to
communicate with the display boards and the general public cell phones and/or computers. Both
grant timelines are one year funding cycles and the City has been given the advanced authority to incur
costs and order the buses.
Both federal grants require a 17% local match on all buses purchased with grant funding with the other
83% funded by the grant and a 20% local match requirement for ITS technologies with 80% funded
through the grant.
DISCUSSION
ECIA has been exploring options for fleet replacement due to the condition of the existing fleet. ECIA
has been researching vehicles and looking at alternatives to downsize and right size the fleet to
accommodate the needs of our consumers, save fuel and energy, and to reflect the demands on the
system. Several alternatives have been considered. ECIA staff has worked very closely with Jenny
Larson, the Director of the Budget Office at the City and Kevin Cornwell at the City Operations Facility
to review finances and fleet options and configurations. Staff has researched electric hybrid buses
versus clean diesel as well as CNG options. CNG was ruled out immediately due to the additional cost
per bus and the cost of a fueling station. $200,000 per medium duty bus must be added to compensate
for the CNG alternative fuel type versus $54,000 per bus for electric hybrid. Additionally, one CNG
fueling station is estimated to cost $1 million dollars. Therefore, the research focused on comparing
the electric hybrid option with the clean diesel option. Attached is a chart illustrating the research
results for fuel savings, using an average mileage for the fleet based on FY10 actual mileage and a
miles-per-gallon estimate for the new fleet.
In reviewing the attached chart, if the City would choose to approve the electric hybrid fleet for its HD
and MD buses, Keyline would be forced to purchase two less HD buses, two less MD buses and one less
LD Sprinter bus, due to higher costs for hybrids. An HD Clean Diesel 35’ bus costs approximately
$343,000. An HD Hybrid 35’ bus is estimated to cost $548,000 ($205,000 per bus). An MD clean diesel
30’ bus is estimated to cost $127,000 with a Hybrid version costing $181,000 per bus ($54,000 more
per bus). The annual fuel savings with electric hybrid versus clean diesel including the new LD Clean
Diesel Sprinters for all 12 HD/MD and 13 Sprinters buses is only $12,559 annually. When you compare
the additional $$1,058,000 up front investment in hybrid technology costs to the savings in fuel over
10 years which is only $125,590 for all vehicles, the additional investment in the hybrid technology is
not financially feasible over the expected life of the bus. Another important point is that if the City
buys electric hybrid buses the City will need to purchase fewer buses. We would also have to retain
some of our current fleet. These fewer buses will put on more miles and will then need to be replaced
sooner, which will cost the City much more money in the long run. Below is a chart of the life cycle
expectancy and capacity for each bus the staff has researched. The lines highlighted in yellow are the
bus sizes we are proposing. Both types of buses have the same life expectancy.
Page | 3
Bus Replacement
Minimum Seating
FTA USEFUL LIFE INFORMATION PER 2007 REPORT years Miles Capacity
Heavy Duty Large Bus 35 to 48 ft. 12 years 500,000 27 to 40
Heavy Duty Small Bus 30 ft. 10 years 350,000 26 to 35
Medium Duty and Purpose Built buses 30 ft. 7 years 200,000 22 to 30
Light Duty Mid-Size buses 20 to 30 ft. 5 years 150,000 16 to 25
Light Duty Small Bus, Cutaways, modified vans 16 to 28 ft. 4 years 100,000 8 to 22
Minimum Years or miles - whichever comes first - same useful life for electric hybrid versus clean diesel
Typical warranties for LD and MD buses are as follows with no difference from hybrid to clean diesel:
Axel, transmission, air conditioning, brakes and radiator 24 months; body structure 36 months, and
corrosion/structural integrity 84 months. The maintenance savings in the first 24 months of owning
the new fleet will be significant. Keyline has not tracked in the past routine preventive maintenance
versus non-routine maintenance expenses, but we have done a comparison of maintenance savings
based on a range of 25% to 50% in the first two years and then decreasing as the buses age. One
consideration related to the investment into hybrid technology is that the City will need to purchase
hybrid maintenance related tools and additional batteries for the hybrid buses. This is an initial
investment estimated at $45,445. 80% of this cost can be paid for through grant funding. However, if
the clean diesel option is selected, this $45,445 can be put into the purchase of an additional bus for
the fleet. We can utilize existing tools for the new clean diesel buses. The range of savings for annual
maintenance is as follows:
25% reduction in maintenance = $106,474.00 annual maintenance estimated savings
35% reduction in maintenance = $149,063.00 annual maintenance estimated savings
45% reduction in maintenance = $191,654.00 annual maintenance estimated savings
50% reduction in maintenance = $212,948.00 annual maintenance estimated savings
Finally, there is an emissions consideration when considering hybrid versus clean diesel buses.
Chandra Ravada, Transportation Director for ECIA, analyzed the difference in emissions from the
current 12 HD buses to the new proposed 12 MD buses plus the 4 HD buses. The emission can be
found in the attached spreadsheet on page 2 in the table provided. In summary, the particulate matter
per ton per year is the highest concern for our area due to our concerns about approaching the non-
attainment thresholds. The annual savings for the fleet in particulate matter per ton per year for MD
and HD Hybrid is .6744 tons/year versus MD and HD clean diesel at .6711 tons/year. This difference is
less than .0033 tons/year in particulate matter savings. The hybrid buses have a minimal impact on the
particulate matter that the area is most concerned about. There is a greater savings in carbon
monoxide in tons/year with hybrids saving over 595 tons per year in carbon monoxide emissions for
the entire fleet and the clean diesel saving 514 tons per year with an 81 ton per year difference. These
two factors need to be weighed against the initial investment of over $648,000 more for the twelve
MD hybrid buses and an additional $410,000 more for two hybrid HD buses. Neither investment is
recouped over the savings in the life of the vehicles. The $1,058,000 total additional investment for
Page | 4
Bus Replacement
hybrid technology would yield greater results if invested in implementing the Smarter Sustainable
Dubuque project in which this project will analyze the public travel patterns and encourage them to
reduce their vehicle miles traveled through using alternative mode of transportation such as transit.
The Smarter Sustainable Dubuque initiative will reduce the VMT in the area and in turn have a positive
impact on reducing emissions in the region.
FINANCIAL
Both federal grants will fund 83% of the bus purchases and 80% of the ITS technology purchases.
However, there is a 17% and a 20% local match requirement. The Dubuque Community School District
and the Regional Transit Authority have both indicated that they have their portion of the local match
secured and in hand for their bus purchases. The City will need to commit to their local match portion
as follows:
Clean Diesel
Local 83% Buses Local ITS Local 20%
Grant Match Hybrid 83% Match Match TOTAL MATCH
State of Good Repair –
Clean Diesel $225,992.00 $143,265.00 $369,257.00
Clean Fuels - Clean
Diesel $289,342.32 $21,760.00 $311,520.00
Clean Fuels – Hybrid $4,400.00 +
Option $296,254.00 $9,089.00 Tools $309,743.00
Summarizing the local match chart, the State of Good Repair match remains constant due to the ITS
and the clean diesel buses being ordered through this grant. The variable is the Clean Fuels grant is
that the hybrid option can be added to all buses using these grant funds. While there is only about a
$2,200 difference in local match required between the hybrid versus clean diesel options, the City
would be purchasing two less HD clean diesel buses, 2 MD hybrid buses and 1 less Sprinter.
With the clean diesel option, the total local match between both grants is $680,777.00. The total local
match to upgrade to hybrid technology in the Clean Fuels grant is $679,000.00. The total savings in
fuel is estimated at $142,611.00 for clean diesel and $155,170.00 for hybrid. Maintenance various by
percentage but using a 50% savings in the first year of $212,948.00, the balance of the local match
required is $325,218.00 for clean diesel buses in the first year. For hybrid the balance of the local
match required is $310,882. A second chart has been attached that outlines the various savings based
on 25-50% maintenance reductions and fuel in both hybrid and clean diesel options.
There are several elements to consider in comparing Clean Diesel technology to Hybrids. The most
obvious is the up front cost. The price of a 35 ft. HD Clean Diesel bus is $342,785.00, and a 35 ft. HD
Hybrid is $547,785.00 (an 59.80% difference in price). According to the FTA, a Heavy Duty bus has 12
year Expected Life Cycle and a Medium Duty bus a 7 year. Extended over its life, the annual cost of a
HD Clean Diesel bus is $28,565.52per year, and for a HD Hybrid bus it is $45,648.75. A MD Clean Diesel
bus the annual cost is $18,142.86 and for a MD Hybrid it is $25,857.14. Based on the price the City pays
for 20% Biodiesel (as of Oct. 31, 2010) the annual cost of fuel in a HD Clean Diesel bus is $13,850.00
Page | 5
Bus Replacement
and for a HD Hybrid bus is $12,784.62; for a MD Clean Diesel its $10,387.50 and for a MD Hybrid it’s
$8,188.24. Combining the life cycle costs and fuel costs, the net annual savings of a Clean Diesel HD bus
versus a Hybrid HD is approximately $16,000 annually. The annual savings on a MD Clean Diesel is
estimated at $7,000 (see attached Life Cycle Cost Summary sheet). Another factor is that the more
each particular bus costs the fewer number of buses the City will be able to afford. Purchasing fewer
buses would result is Keyline retaining several of the current fleet in service. These older buses have
poorer fuel economy and much higher maintenance costs.
It should also be noted that Clean Diesel is a proven technology with a solid and well known record of
operation in transit. Electric Hybrid still is in its infancy and its battery technology is evolving. Hybrid
buses offer only a minimal increase in engine fuel efficiency: the estimated fuel usage in HD Clean
Diesel is 6 miles per gallon (mpg) and 6.5 mpg in HD Hybrid, and on MD buses the difference is similar.
The expected life of the battery for a HD hybrid bus is 3 years, and for a MD bus 6 years. The cost of a
replacement battery for the HD bus at $25,000 and at $12,000 for MD buses.
The source of funding provided by Budget Director Jennifer Larson is as follows:
18th Street Building Renovation Funding over Project Cost $111,000
General Fund Balance of the Gunite Rock Storm Sewer Project $100,000
Bond Funds remaining from the Fire Pumper Truck Replacement $93,299
Debt Service Savings - Fire Station Relocation $80,000
Annexation Project Funds over the Amount of an Election $53,000
Sale of Cox Street to Loras $50,125
Housing Purchase/Resale/Rehab 50% of General Fund Balance $50,000
FY 2010 Greater Downtown TIF repayment to the General Fund not used for
$43,922
the Downtown Shuttle
Delay of the Emergency Communications Emergency Dispatch Protocols $42,154
Delay Fire Headquarters Energy Evaluation $30,000
Delay Police Firearms Range $27,500
Total $681,000
RECOMMENDATION
Based on the research and comparison of hybrid versus clean fuels technology and the current state of
the Keyline bus fleet, we are recommending purchasing clean diesel buses as follows: 12 MD Clean
Diesel buses; 2 HD Clean Diesel buses; 10 LD Clean Diesel Sprinters or like vehicle, in addition to the 2
HD clean diesel buses and the 3 LD Clean Diesel buses on order (pictures attached). We also
recommend moving forward with purchasing the ITS related equipment and software as outlined in
the two grants taking into consideration the need to collaborate equipment purchases with the
th
Smarter Sustainable Dubuque VMT initiative. If we order prior to November 30, the MD clean diesel
buses can be purchased through an open procurement in Minnesota and we would not be required to
do our own open procurement. The MD buses would be ordered immediately upon approval and are
expected to arrive by July 1, 2011. Unfortunately the open procurement for the Sprinters that we
recently purchased is no longer available to us. We recommend continuing to search for another open
procurement, but to also begin the process to do our own RFP for the vehicles. The two additional
Page | 6
Bus Replacement
th
heavy duty buses can be added to our current order for heavy duty buses if placed by November 30;
th
those buses are expected for delivery by June 30, 2011.
ACTION
This is an extremely exciting time for the City’s transit system! We recommend that the City Council
approve the attached Resolution authorizing the purchase of a new transit fleet and ITS related
equipment as outlined in this memorandum.
Attachments
cc: Don Vogt, Public Works Director
Kevin Cornwell, Equipment Maintenance Supervisor
Jenny Larson, Budget Director
Barbara Morck,
Director of Transit Operations
COMPARISON SUMMARY
Clean Diesel Advantages Hybrid Advantages
Proven technology with a solid and Lower fuel costs
well known record of operation in
Estimated savings $12,559 annually
transit
Lower upfront cost per vehicle Minimal impact on the particulate
matter – slightly greater savings in
HD Clean Diesel 35’ = $343,000
vs
carbon monoxide.
HD Hybrid Diesel 35’ = $548,000
(Difference $205,000 each)
MD Clean Diesel 30’ = $127,000
vs
MD Hybrid version 30’ = $181,000
(Difference $54,000 each)
Total Fleet Savings $1,058,000
Ability to purchase 5 more buses
(Replace entire fleet)
No cost to purchase maintenance
related tools
($50,000)
No cost for battery replacements
(Also, no cost to dispose of batteries)
Reduction in maintenance costs
(No older vehicles in fleet)
Lower annual life cycle costs
($16,000/year on HD and $7,000/year on MD)
Preparer: David J. Heiar, Economic Development Director, 50 West 13 Street, Dubuque, IA 52001 (563- 589 -4393)
AUTHORIZING THE PURCHASE OF A NEW TRANSIT FLEET AND ADDING
INTELLIGENT TRANSPORTATION SYSTEM TECHNOLOGIES (ITS)
Whereas, ECIA and the City of Dubuque prepared and submitted two federal
grants for the replacement of the Keyline bus fleet and to add ITS technology on the
buses; and
Whereas, the City of Dubuque was awarded $2.5 million from the State of Good
Repair grant and $1.5 million from the Clean Fuels grant; and
Whereas, the City Council finds that purchasing a new transit fleet would
promote clean air standards in Dubuque and provide a new form of public transit service
for the citizens of Dubuque.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. That the City Council of the City of Dubuque, Iowa hereby authorizes
the purchase of a new transit fleet and ITS related equipment.
RESOLUTION NO. 446.10
Passed, approved and adopted this 15 day of November,
Roy Buol, Mayor
At / t:
_,//4
Jeanne F. Schneider, City Clerk
F: \USERS \Econ Dev \Transit \Statewide Grant - State of Good Repair\20101108_ Authorizing Resolution Purchase of new Transit
Fleet.doc
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bus Replacement Recommendation Using Grant Funding
DATE: November 9, 2010
Dubuque
i All- Amdicaclty
1
llr
2007
In May and June of 2010, East Central Intergovernmental Association (ECIA) and.City
staff prepared and submitted two federal grants for the replacement of the Keyline bus
fleet and to add Intelligent Transportation Systems (ITS) technology on the buses. The
State of Good Repair is a Federal Transit Administration (FTA) grant and 152 grants
were awarded nationally. The City of Dubuque was awarded $2.3 million from this grant
program. The purpose of the grant is to help bring buses, bus facilities, and related
equipment into the state of good repair. The City partnered with the Dubuque
Community School District and the Delaware, Jackson and Dubuque Regional Transit
Authority.
The second grant the City applied for with the assistance of ECIA was the Clean Fuels
grant with the City recently awarded $1.5 million. The program assists transit agencies
in purchasing low- emission buses and related equipment.
Combining both grants, the City has $3.8 million dollars for fleet replacement and
related ITS technologies. The ITS related technologies include such things as
electronic fare boxes, automated vehicle announcement systems, security cameras for
the fixed and minibuses, new scheduling software, automated vehicle locators for the
fixed route and minibuses as well as mobile data terminals for all the minibuses.
Additionally, there is funding to assist with the implementation of the Smarter
Sustainable Dubuque Vehicle Miles Traveled mobility study, which includes electronic
display boards and web based software to communicate with the display boards and the
general public's cell phones and /or computers. Both grant timelines are one year
funding cycles and the City has been given the advanced authority to incur costs and
order the buses.
Both federal grants require a 17% local match on all buses purchased with the grants
funding the other 83 %. There is a 20% local match requirement for ITS technologies
with 80% funded through the grant.
ECIA has been researching vehicles and looking at alternatives to downsize and right
size the fleet to accommodate the needs of consumers, save fuel and energy, and to
reflect the demands on the system. Several alternatives have been considered. ECIA
staff has worked very closely with Budget Director Jennifer Larson, and Equipment
Maintenance Supervisor Kevin Cornwell to review finances and fleet options and
configurations. Staff has researched electric hybrid buses versus clean diesel as well
as Compressed Natural Gas (CNG) options. CNG was ruled out immediately due to the
$200,000 additional cost per bus and the $1 million cost of a fueling station. Therefore,
the research focused on comparing the electric hybrid option with the clean diesel
option.
If the City would choose to purchase the electric hybrid fleet for its Heavy Duty (HD) and
Medium Duty (MD) buses, Keyline would be forced to purchase one less HD bus, one
less MD bus and one less (Light Duty) LD Sprinter bus, due to higher costs for hybrids.
An HD Clean Diesel 35' bus costs approximately $343,000. An HD Hybrid 35' bus is
estimated to cost $543,000 ($200,000 more per bus). An MD clean diesel 30' bus is
estimated to cost $127,000 with a Hybrid version costing $181,000 per bus ($54,000
more per bus). The annual fuel savings with electric hybrid versus clean diesel
including the new LD Clean Diesel Sprinters for all 12 HD /MD and 13 Sprinters buses is
only $12,559 annually. When you compare the additional $886,000 up front investment
in hybrid technology costs to the savings in fuel over 10 years which is only $125,590
for all vehicles, the additional investment in the hybrid technology is not financially
feasible over the expected life of the bus. Another important point is that if the City buys
electric hybrid buses the City will need to purchase fewer buses. We would also have to
retain some of our current fleet, which have high maintenance costs and significant
carbon footprint, poorer fuel economy and spew more particulate matter.
These fewer new buses will put on more miles and will then need to be replaced
sooner, which will cost the City much more money in the long run.
One consideration related to the investment into hybrid technology is that the City will
need to purchase hybrid maintenance related tools and additional batteries for the
hybrid buses. This is an initial investment estimated at $45,445. Eighty percent of this
cost can be paid through grant funding. However, if the clean diesel option is selected,
this $45,445 can be put into the purchase of an additional bus for the fleet. The City
can utilize existing tools for the new clean diesel buses.
Maintenance savings in the first year is estimated at 50% reduction in maintenance for a
$212,948.00 annual maintenance estimated savings. Fuel savings in the first year is
estimated at $142,611. This total of $355,559 will go into property tax relief in the Fiscal
Year 2012 budget recommendation.
Finally, there is an emissions consideration when considering hybrid versus clean diesel
buses. Chandra Ravada, Transportation. Director for ECIA, analyzed the difference in
emissions from the current 12 HD buses to the new proposed 12 MD buses plus the 4
HD buses. In summary, the particulate matter per ton per year is the highest concern
for our area due to our concerns about approaching the non - attainment thresholds. The
annual savings for the fleet in particulate matter per ton per year for MD and HD Hybrid
is .6744 tons /year versus MD and HD clean diesel at .6711 tons /year. This difference is
less than .0033 tons /year in particulate matter savings. The hybrid buses have a
minimal impact on the particulate matter that the area is most concerned about. There
is a greater savings in carbon monoxide in tons /year with hybrids saving over 595 tons
per year in carbon monoxide emissions for the entire fleet and the clean diesel saving
514 tons per year with an 81 ton per year difference. These two factors need to be
weighed against the initial investment of over $486,000 more for the MD hybrid buses
and an additional $400,000 more for two hybrid HD buses. Neither investment is
recouped over the savings in the life of the vehicles.
Both federal grants will fund 83% of the bus purchases and 80% of the ITS technology
purchases. However, there is a 17% local match requirement for buses and a 20%
local match requirement for ITS. The Dubuque Community School District and the
Regional Transit Authority have both indicated that they have their portion of the local
match secured and in hand for their bus purchases.
With the clean diesel option, the total local match between both grants is $680,777.00.
Budget Director Jennifer Larson has identified the source of funding for the match from
the existing Fiscal Year 2011 budget.
There are several elements to consider in comparing Clean Diesel technology to
Hybrids. The most obvious is the upfront cost. The price of a 35 ft. HD Clean Diesel bus
is $342,785, and a 35 ft. HD Hybrid is $547,785 (a 60% difference in price). According
to the FTA, a Heavy Duty bus has 12 year Expected Life Cycle and a Medium Duty bus
a 7 year. Extended over its life, the annual cost of a HD Clean Diesel bus is $28,565 per
year, and for a HD Hybrid bus it is $45,648. A MD Clean Diesel bus annual cost is
$18,142 and for a MD Hybrid it is $25,857. Based on the price the City pays for 20%
Biodiesel the annual cost of fuel in a HD Clean Diesel bus is $13,850 and for a HD
Hybrid bus is $12,784; for a MD Clean Diesel it is $10,387 and for a MD Hybrid it is
$8,188. Combining the life cycle costs and fuel costs, the net annual savings of a Clean
Diesel HD bus versus a Hybrid HD is approximately $16,000 annually. The annual
savings on a MD Clean Diesel is estimated at $7,000. Another factor is that the more
each bus costs the fewer number of buses the City will be able to afford. Purchasing
fewer buses would result in Keyline retaining several of the current fleet in service.
These older buses have poorer fuel economy, a larger carbon footprint, spew more
particulate matter and have much higher maintenance costs.
It should also be noted that Clean Diesel is a proven technology with a solid and well
known record of operation in transit. Electric Hybrid still is in its infancy and its battery
technology is evolving. Hybrid buses offer only a minimal increase in engine fuel
efficiency: the estimated fuel usage in HD Clean Diesel is 6 miles per gallon (mpg) and
6.5 mpg in HD Hybrid, and on MD buses the difference is similar. The expected life of
the battery for a HD hybrid bus is 3 years, and for a MD bus 6 years. The cost of a
replacement battery for the HD bus is estimated at $25,000 and at $12,000 for MD
buses.
Based on the research and comparison of hybrid versus clean fuels technology and the
current state of the Keyline bus fleet, they are recommending purchasing clean diesel
buses as follows: 12 MD Clean Diesel buses; 2 HD Clean Diesel buses; 10 LD Clean
Diesel Sprinters or like vehicle, in addition to the 2 HD clean diesel buses and the 3 LD
Clean Diesel buses already on order. They also recommend moving forward with
purchasing the ITS related equipment and software as outlined in the two grants taking
into consideration the need to collaborate equipment purchases with the Smarter
Sustainable Dubuque VMT initiative. If ordered prior to November 30 the MD clean
diesel buses can be purchased through an open procurement in Minnesota. The MD
buses would be ordered immediately upon approval and are expected to arrive by
July 1, 2011. Unfortunately the open procurement for the Sprinters recently purchased
is no longer available. They recommend continuing to search for another open
procurement, but to also begin the process to issue an RFP for the vehicles. The two
additional heavy duty buses can be added to the current order for heavy duty buses if
placed by November 30 those buses are expected for delivery by June 30t , 2011.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director, East Central Intergovernmental
Association
Masterpiece on the Mississippi
MEMO
TO: Michael C. Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director
RE: Bus Replacement Recommendation using Grant Funding
DATE: November 9, 2010
Dubuque
b
cd
2007
PURPOSE
The purpose of this memo is to discuss the recently funded federal transit grants, State of Good Repair
and Clean Fuels and provide a recommendation to utilize the grant funds to replace the entire Keyline
fleet and add Intelligent Transportation System technologies (ITS) to the fleet.
BACKGROUND
In May and June of 2010, ECIA and the City staff prepared and submitted two federal grants for the
replacement of the Keyline bus fleet and to add ITS technology on the buses. Both grants were highly
competitive. The State of Good Repair is an FTA grant and 152 grants were awarded valued at $776
million dollars nationally. The City of Dubuque was awarded $2.3 million from this grant program. The
purpose of the grant is to help bring buses, bus facilities, and related equipment into the state of good
repair. Additional points were given to grant applicants if they partnered with other transit providers
in the region. The City partnered with the Dubuque Community School District and the Delaware,
Jackson and Dubuque Regional Transit Authority.
The second grant the City applied for with the assistance of ECIA was the Clean Fuels grant with the
City recently awarded $1.5 million. FTA designed the program to assist designated ozone and carbon
monoxide air quality nonattainment and maintenance areas in achieving or maintaining the National
Ambient Air Quality Standards. The program accelerates the deployment of advanced bus
technologies by supporting the use of low- emission vehicles in transit fleets. The program assists
transit agencies in purchasing low- emission buses and related equipment. There was no partnership
requirements in this grant program, therefore, the total amount funded will be used for City buses and
related equipment.
Combining both grants, the City has $3.8 million dollars for fleet replacement and related Intelligent
Transportation Systems (ITS) technologies. The ITS related technologies include such things as
electronic fare boxes, automated vehicle announcement systems, security cameras for the fixed and
minibuses, new scheduling software to replace the troubled RouteMatch, automated vehicle locators
Page 12
Bus Replacement
for the fixed route and minibuses as well as mobile data terminals for all the minibuses. Additionally,
there is funding to assist with the implementation of the Smarter Sustainable Dubuque Vehicle Miles
Traveled mobility study which includes electronic display boards and web based software to
communicate with the display boards and the general public cell phones and /or computers. Both
grant timelines are one year funding cycles and the City has been given the advanced authority to incur
costs and order the buses.
Both federal grants require a 17% local match on all buses purchased with grant funding with the other
83% funded by the grant and a 20% local match requirement for ITS technologies with 80% funded
through the grant.
DISCUSSION
ECIA has been exploring options for fleet replacement due to the condition of the existing fleet. ECIA
has been researching vehicles and looking at alternatives to downsize and right size the fleet to
accommodate the needs of our consumers, save fuel and energy, and to reflect the demands on the
system. Several alternatives have been considered. ECIA staff has worked very closely with Jenny
Larson, the Director of the Budget Office at the City and Kevin Cornwell at the City Operations Facility
to review finances and fleet options and configurations. Staff has researched electric hybrid buses
versus clean diesel as well as CNG options. CNG was ruled out immediately due to the additional cost
per bus and the cost of a fueling station. $200,000 per medium duty bus must be added to compensate
for the CNG alternative fuel type versus $54,000 per bus for electric hybrid. Additionally, one CNG
fueling station is estimated to cost $1 million dollars. Therefore, the research focused on comparing
the electric hybrid option with the clean diesel option. Attached is a chart illustrating the research
results for fuel savings, using an average mileage for the fleet based on FY10 actual mileage and a
miles - per - gallon estimate for the new fleet.
In reviewing the attached chart, if the City would choose to approve the electric hybrid fleet for its HD
and MD buses, Keyline would be forced to purchase one less HD bus, one less MD bus and one less LD
Sprinter bus, due to higher costs for hybrids. An HD Clean Diesel 35' bus costs approximately
$343,000. An HD Hybrid 35' bus is estimated to cost $543,000. An MD clean diesel 30' bus is
estimated to cost $127,000 with a Hybrid version costing $181,000 per bus ($54,000 more per bus).
The annual fuel savings with electric hybrid versus clean diesel including the new LD Clean Diesel
Sprinters for all 12 HD /MD and 13 Sprinters buses is only $12,559 annually. When you compare the
additional $886,000 up front investment in hybrid technology costs to the savings in fuel over 10 years
which is only $125,590 for all vehicles, the additional investment in the hybrid technology is not
financially feasible over the expected life of the bus. Another important point is that if the City buys
electric hybrid buses the City will need to purchase fewer buses. We would also have to retain some of
our current fleet. These fewer buses will put on more miles and will then need to be replaced sooner,
which will cost the City much more money in the long run. Below is a chart of the life cycle expectancy
and capacity for each bus the staff has researched. The lines highlighted in yellow are the bus sizes we
are proposing. Both types of buses have the same life expectancy.
Page 13
Bus Replacement
Minimum Seating
FTA USEFUL LIFE INFORMATION PER 2007 REPORT years Miles Capacity
Heavy Duty Large Bus 35 to 48 ft. 12 years 500,000 27 to 40
Heavy Duty Small Bus 30 ft. 10 years 350,000 26 to 35
Medium Duty and Purpose Built buses 30 ft. 7 years 200,000 22 to 30
Light Duty Mid -Size buses 20 to 30 ft. 5 years 150,000 16 to 25
Light Duty Small Bus, Cutaways, modified vans 16 to 28 ft. 4 years 100,000 8 to 22
Minimum Years or miles - whichever comes first - same useful life for electric hybrid versus clean diesel
Typical warranties for LD and MD buses are as follows with no difference from hybrid to clean diesel:
Axel, transmission, air conditioning, brakes and radiator 24 months; body structure 36 months, and
corrosion /structural integrity 84 months. The maintenance savings in the first 24 months of owning
the new fleet will be significant. Keyline has not tracked in the past routine preventive maintenance
versus non - routine maintenance expenses, but we have done a comparison of maintenance savings
based on a range of 25% to 50% in the first two years and then decreasing as the buses age. One
consideration related to the investment into hybrid technology is that the City will need to purchase
hybrid maintenance related tools and additional batteries for the hybrid buses. This is an initial
investment estimated at $45,445. 80% of this cost can be paid for through grant funding. However, if
the clean diesel option is selected, this $45,445 can be put into the purchase of an additional bus for
the fleet. We can utilize existing tools for the new clean diesel buses. The range of savings for annual
maintenance is as follows:
25% reduction in maintenance = $106,474.00 annual maintenance estimated savings
35% reduction in maintenance = $149,063.00 annual maintenance estimated savings
45% reduction in maintenance = $191,654.00 annual maintenance estimated savings
50% reduction in maintenance = $212,948.00 annual maintenance estimated savings
Finally, there is an emissions consideration when considering hybrid versus clean diesel buses.
Chandra Ravada, Transportation Director for ECIA, analyzed the difference in emissions from the
current 12 HD buses to the new proposed 12 MD buses plus the 4 HD buses. The emission can be
found in the attached spreadsheet on page 2 in the table provided. In summary, the particulate matter
per ton per year is the highest concern for our area due to our concerns about approaching the non -
attainment thresholds. The annual savings for the fleet in particulate matter per ton per year for MD
and HD Hybrid is .6744 tons /year versus MD and HD clean diesel at .6711 tons /year. This difference is
less than .0033 tons /year in particulate matter savings. The hybrid buses have a minimal impact on the
particulate matter that the area is most concerned about. There is a greater savings in carbon
monoxide in tons /year with hybrids saving over 595 tons per year in carbon monoxide emissions for
the entire fleet and the clean diesel saving 514 tons per year with an 81 ton per year difference. These
two factors need to be weighed against the initial investment of over $486,000 more for the MD hybrid
buses and an additional $400,000 more for two hybrid HD buses. Neither investment is recouped over
the savings in the life of the vehicles. The $886,000 total additional investment for hybrid technology
Grant
Local 83%
Match Hybrid
Clean Diesel
Buses Local
83% Match
ITS Local 20%
Match
TOTAL MATCH
State of Good Repair —
Clean Diesel
$225,992.00
$143,265.00
$369,257.00
Clean Fuels - Clean
Diesel
$289,342.32
$21,760.00
$311,520.00
Clean Fuels — Hybrid
Option
$296,254.00
$4,400.00 +
$9,089.00 Tools
$309,743.00
Page 14
Bus Replacement
would yield greater results if invested in implementing the Smarter Sustainable Dubuque project in
which this project will analyze the public travel patterns and encourage them to reduce their vehicle
miles traveled through using alternative mode of transportation such as transit. The Smarter
Sustainable Dubuque initiative will reduce the VMT in the area and in turn have a positive impact on
reducing emissions in the region.
FINANCIAL
Both federal grants will fund 83% of the bus purchases and 80% of the ITS technology purchases.
However, there is a 17% and a 20% local match requirement. The Dubuque Community School District
and the Regional Transit Authority have both indicated that they have their portion of the local match
secured and in hand for their bus purchases. The City will need to commit to their local match portion
as follows:
Summarizing the local match chart, the State of Good Repair match remains constant due to the ITS
and the clean diesel buses being ordered through this grant. The variable is the Clean Fuels grant is
that the hybrid option can be added to all buses using these grant funds. While there is only about a
$2,200 difference in local match required between the hybrid versus clean diesel options, the City
would be purchasing one Tess HD clean diesel bus, 1 MD hybrid bus and 1 less Sprinter.
The local match funding in the first year could be partially funded in the fuel and maintenance savings
as listed above. With the clean diesel option, the total local match between both grants is
$680,777.00. The total local match to upgrade to hybrid technology in the Clean Fuels grant is
$679,000.00. The total savings in fuel is estimated at $142,611.00 for clean diesel and $155,170.00 for
hybrid. Maintenance various by percentage but using a 50% savings in the first year of $212,948.00,
the balance of the local match required is $325,218.00 for clean diesel buses in the first year. For
hybrid the balance of the local match required is $310,882. A second chart has been attached that
outlines the various savings based on 25 -50% maintenance reductions and fuel in both hybrid and
clean diesel options.
There are several elements to consider in comparing Clean Diesel technology to Hybrids. The most
obvious is the up front cost. The price of a 35 ft. HD Clean Diesel bus is $342,785.00, and a 35 ft. HD
Hybrid is $547,785.00 (an 59.80% difference in price). According to the FTA, a Heavy Duty bus has 12
year Expected Life Cycle and a Medium Duty bus a 7 year. Extended over its life, the annual cost of a
HD Clean Diesel bus is $28,565.52per year, and for a HD Hybrid bus it is $45,648.75. A MD Clean Diesel
18th Street Building Renovation Funding over Project Cost
$111,000
General Fund Balance of the Gunite Rock Storm Sewer Project
$100,000
Bond Funds remaining from the Fire Pumper Truck Replacement
$93,299
Debt Service Savings - Fire Station Relocation
$80,000
Annexation Project Funds over the Amount of an Election
$53,000
Sale of Cox Street to Loras
$50,125
Housing Purchase /Resale /Rehab 50% of General Fund Balance
$50,000
FY 2010 Greater Downtown TIF repayment to the General Fund not used
the Downtown Shuttle
for
$43,922
Delay of the Emergency Communications Emergency Dispatch Protocols
$42,154
Delay Fire Headquarters Energy Evaluation
$30,000
Delay Police Firearms Range
$27,500
Total
$681,000
Page 15
Bus Replacement
bus the annual cost is $18,142.86 and for a MD Hybrid it is $25,857.14. Based on the price the City pays
for 20% Biodiesel (as of Oct. 31, 2010) the annual cost of fuel in a HD Clean Diesel bus is $13,850.00
and for a HD Hybrid bus is $12,784.62; for a MD Clean Diesel its $10,387.50 and for a MD Hybrid it's
$8,188.24. Combining the life cycle costs and fuel costs, the net annual savings of a Clean Diesel HD bus
versus a Hybrid HD is approximately $16,000 annually. The annual savings on a MD Clean Diesel is
estimated at $7,000 (see attached Life Cycle Cost Summary sheet). Another factor is that the more
each particular bus costs the fewer number of buses the City will be able to afford. Purchasing fewer
buses would result is Keyline retaining several of the current fleet in service. These older buses have
poorer fuel economy and much higher maintenance costs.
It should also be noted that Clean Diesel is a proven technology with a solid and well known record of
operation in transit. Electric Hybrid still is in its infancy and its battery technology is evolving. Hybrid
buses offer only a minimal increase in engine fuel efficiency: the estimated fuel usage in HD Clean
Diesel is 6 miles per gallon (mpg) and 6.5 mpg in HD Hybrid, and on MD buses the difference is similar.
The expected life of the battery for a HD hybrid bus is 3 years, and for a MD bus 6 years. The cost of a
replacement battery for the HD bus at $25,000 and at $12,000 for MD buses.
The source of funding provided by Budget Director Jennifer Larson is as follows:
RECOMMENDATION
Based on the research and comparison of hybrid versus clean fuels technology and the current state of
the Keyline bus fleet, we are recommending purchasing clean diesel buses as follows: 12 MD Clean
Diesel buses; 2 HD Clean Diesel buses; 10 LD Clean Diesel Sprinters or like vehicle, in addition to the 2
HD clean diesel buses and the 3 LD Clean Diesel buses on order (pictures attached). We also
recommend moving forward with purchasing the ITS related equipment and software as outlined in
the two grants taking into consideration the need to collaborate equipment purchases with the
Smarter Sustainable Dubuque VMT initiative. If we order prior to November 30 the MD clean diesel
buses can be purchased through an open procurement in Minnesota and we would not be required to
do our own open procurement. The MD buses would be ordered immediately upon approval and are
expected to arrive by July 1, 2011. Unfortunately the open procurement for the Sprinters that we
Page 16
Bus Replacement
recently purchased is no longer available to us. We recommend continuing to search for another open
procurement, but to also begin the process to do our own RFP for the vehicles. The two additional
heavy duty buses can be added to our current order for heavy duty buses if placed by November 30 th ;
those buses are expected for delivery by June 30 2011.
ACTION
This is an extremely exciting time for the City's transit system! We recommend that the City Council
approve the attached Resolution authorizing the purchase of a new transit fleet and ITS related
equipment as outlined in this memorandum.
Attachments
cc: Don Vogt, Public Works Director
Kevin Cornwell, Equipment Maintenance Supervisor
Jenny Larson, Budget Director
Barbara Morck, Director of Transit Operations
Annual Life Cycle Cost for Transit Vehicles (HD & MD)
2010
2010
2010
2010
Model
35 ft. HD Clean Diesel
35 ft. HD Hybrid
32 ft. MD Clean Diesel
32 ft. MD Hybrid
Initial Purchase Cost
$342,785.00
$547,785.00
$127,000.00
$181,000.00
% of increase in cost
59.80%
% of increase in cost
42.52%
Anticipated Life
12
12
7
7
based on FTA Expected Life Cycle
Cost per year
$28,565.42
$45,648.75
$18,142.86
$25,857.14
Fuel Cost per Gallon as of October 31, 2010
based on information of pricing as paid through City suppliers
5% Biodiesel
price per gallon
2.32
2.32
2.32
2.32
Est. miles per gallon
city miles
6
7
8
9
Est. Annual Mileage
30,000
30,000
30,000
30,000
Cost per year
$11,600.00
$10,707.69
$8,700.00
$8,188.24
20% Biodiesel
price per gallon
2.77
2.77
2.77
2.77
Est. miles per gallon
city miles
6
7
8
9
Est. Annual Mileage
30,000
30,000
30,000
30,000
Cost per year
$13,850.00
$12,784.62
$10,387.50
$9,776.47
Hybrid Battery
miles per charge
200 est.
125 est.
Current replacement cost
$25,000.00
$12,000.00
Warranty
3 years
6 years
Annual Vehicle Cost Using Fuel Listed
2010
2010
2010
2010
35 ft. HD Clean Diesel
35 ft. HD Hybrid
32 ft. MD Clean Diesel
32 ft. MD Hybrid
5% Biodiesel
40,165.42
56,356.44
26,842.86
34,045.38
20% Biodiesel
42,415.42
58,433.37
28,530.36
35,633.61
SIDE -BY -SIDE VEHICLE COMPARISONS
Annual
Fuel + Cost
Difference
2010
2010
35 ft. HD Clean Diesel
35 ft. HD Hybrid
5% Biodiesel
40,165.42
56,356.44
$16,191.03
20% Biodiesel
42,415.42
58,433.37
$16,017.95
Annual
Fuel + Cost
Difference
2010
2010
32 ft. MD Clean Diesel
32 ft. MD Hybrid
5% Biodiesel
26,842.86
34,045.38
$7,202.52
20% Biodiesel
28,530.36
35,633.61
$7,103.26
THE NEW FLEET NEW LOOK!
Replacement Fleet
Average Annual
mileage per
vehicle
Fuel Efficiency (mpg
rating)
Number of Gallons used
annualy
Cost per
Gallon
Spending on Gas
Fuel Cost
Savings ,
'0
Existing Vehicle
`model
New
Model
year
Vehicle Type
Local
Match
cost
Exisiting
Replacement
Exisiting
Replacement
JAW
Exisiting
Replacement
1976 or 1981 HD
Diesel
2011
MD -Clean
Diesel
$21,590
30,876
2.4
8
12,865
3,860
$2.29
$29,461
$8,838
$20,623
1976 or 1981 HD
Diesel
2011
HD -Clean
Diesel
$58,310
30,876
3.5
6
8,822
5,146
$2.29
$20,202
$11,784
$8,417
2000 to 2005 Ford
E450
2011
LD -Clean
Diesel Sprinter
$17,000
19,902
8.8
12
2,262
1,659
$2.29
$5,179
$3,798
$1,381
$1,381
F ill..1111Mir Replacement Fleet
Annual mileage
Fuel Efficiency (mpg
rating)
Number of Gallons used
annualy
Cost per
Gallon
Spending on Gas
Fuel Cost
Savings
Vehicle modilodel
year
Vehicle Type
cost
Exisiting
Replacement
Exisiting
Replacement
Exisiting
Replacement
1976 or 1981 HD
Diesel
2011
$30,770
30,876
2.4
9.5
9.5
12,865
3,250
$2.29
$29,461
$7,443
$22,018
Diesel
2011
HD
83 %Grant
$58,310
30,876
3.5
6
8,822
5,146
$2.29
$20,202
$11,784
$8,417
2000 to 2005 Ford
E450
2011
LD -Clean
Diesel
Sprinter
$17,000
19,902
8.8
12
2,262
1,659
$2.29
$5,179
$3,798
$1,381
Current Keyline Fleet - 12 HD Diesel Buses and 13 LD Diesel Minibuses
Annual Fuel Savings
Savings in Gas for ten years
$142,611
$1,426,107
;avings based on replacing 12 HD Diesel Buses with 9 MD Clean Diesel Buses and 3 HD Clean Diesel Buses (plus 3 spare MD buses for a total of 12 and 1 spare HD bus for a total of 4.
;avings also based on 12 LD Diesel buses with 12 LD Clean Diesel Sprinter buses (plus 1 spare LD bus for a total of 13)
Annual Fuel Savings $155,170
Savings in Gas for ten years $1,551,703
;avings based on replacing 12 HD Diesel Buses with 8 MD Clean Diesel Buses and 3 HD Clean Diesel Buses (plus 3 spare MD buses for a total of 12 and no spare HD buses.
;avings also based on 12 LD Diesel buses with 12 LD Clean Diesel Sprinter buses (plus 1 spare LD bus for a total of 13)
1 1/3/ 201 0
MAINTENANCE %
REDUCTION
ANNUAL SAVINGS
MAINTENANCE
ANNUAL FUEL
S
TOTAL ANNUAL
SAVINGS
VEHICLES AND ITS
STATE OF GOOD
REP t MATCH
VEHCILES AND ITS
CLEAN FUELS
MATCH
VEHICLES AND ITS
TOTAL LOCAL
MAT
LOCAL MATCH
BALANCE AFTER
FUEL & MAINT
TOTAL LOCAL MATCH
BALANCE WITH ITS
AND VEHICLES, TOOLS
OPTION 1 - CLEAN DIESEL VEHICLES
12 Heavy Duty Clean Diesel to 12 MD Clean Diesel Buses
13 Light Duty Clean Diesel to 131_0 Sprinter Clean Diesel Buses
3 Heavy Duty CleanDiesel to 4 HD Clean Diesel Buses (1 EXTRA)
(3 MD new spares and 1 HD new spare included in grant funding)
ITS EQUIPMENT INCLUDING ELECTRONIC FARE BOXES, AVL SYSTEMS,
(7) ELECTRONIC BILLBOARDS, SECURITY CAMERAS, SOFTWARE FOR
SCHEDULING AND ROUTE INFORMATION, GOOGLE TRANSIT
OPTION 2 - HYBRID MD VEHICLES**
11 Heavy Duty Clean Diesel to 11 MD Hybrid Buses
12 Light Duty Clean Diesel to 12 LD Sprinter Clean Diesel Buses
3 Heavy Duty CleanDiesel to 3 HD Clean Diesel Buses
(2 MD new spares and no HD spare in grant funding and no spare HD bus)
ITS EQUIPMENT INCLUDING ELECTRONIC FARE BOXES, AVL SYSTEMS,
(7)ELECTRONIC BILLBOARDS, SECURITY CAMERAS, SOFTWARE FOR
SCHEDULING AND ROUTE INFORMATION, GOOGLE TRANSIT
HYBRID MAINTENANCE TOOLS
"Hybrid pricing reduced the number of buses we can purchas
Four Year average Heavy Duty Bus Maintenance Costs =
Average Heavy Duty Bus Fuel Costs FY'10 =
Four Year Average Light Duty Bus Maintenance costs =
Average Light Duty Bus Fuel Costs FY'10 =
Total Average Annual Fleet Maintenance costs =
Average Annual Fleet Fuel Costs Clean Diesel =
FTA USEFUL LIFE INFORMATION PER 2007 REPORT
Heavy Duty Large Bus 35 to 48 ft.
Heavy Duty Small Bus 30 ft.
Medium Duty and Purpose Built buses 30 ft.
Light Duty Mid -Size buses 20 to 30 ft.
Ligth Duty Small Bus, Cutaways, modified vans 16 to 28 ft.
$350,666
$322,843
$70,761.00
$111,484.00
$421,427.00
$434,327.00
Minimum years
12 years
10 years
7 years
5 years
4 years
25%
35%
45%
50%
25%
35%
45%
50%
Minimum Years or miles - whichever comes first - same useful life for electric hybrid versus clean diesel
FLEET REPLACEMENT OPTIONS STATE OF GOOD REPAIR AND CLEAN FUELS GRANTS
NOVEMBER, 2010
5106,474.00
$149,063.00
5191,653.00
$212,948.00
5106,474.00
$149,064.00
$191,654.00
$212,948.00
Miles
500,000 27 to 40
350,000 26 to 35
200,000 22 to 30
150,000 16 to 25
100,000 8 to 22
5142,611.00
5142,611.00
5142,611.00
5142,611.00
$155,170.00
5155,170.00
$155,170.00
5155,170.00
Seating Capacity
$249,085.00
$291,674.00
$334,264.00
$355,559.00
$261,644.00
$304,234.00
$346,824.00
$ 368,118.00
$225,992.00
$225,992.00
$225,992.00
$225,992.00
$143,265.00
$225,992.00
$225,992.00
$225,992.00
$225,992.00
$143,265.00
e with grant funds to 1 HD Bus clean diesel, and 11 hybrid MD buses. One less spare new bus for the MD and HD buses. Also 1 less LD Sprinter.
$289,342.00
5289,342.00
$289,342.00
$289,342.00
521,760.00
$296,255.00
$296,255.00
$296,255.00
$296,255.00
$4,400.00
$9,089.00
5515,334.00
5515,334.00
5515,334.00
5515,334.00
$165,025.00
$522,247.00
$522,247.00
$522,247.00
$522,247.00
$147,665.00
$9,089.00
$266,249.00
5223,660.00
$181,070.00
$159,775.00
$165,025.00
$260,603.00
5218,013.00
$175,423.00
$154,129.00
$147,665.00
$9,089.00
$431,274.0
5388,685.0
$346,095.0
$324,800.0
5417,357.0
$374,767.0
5332,177.0
5310,883.0
Annual Savings
NOx
(tons /year)
PM
(tons /year)
HC
(tons /year)
CO
(tons /year)
CO2
(tons /year)
Diesel -
Equivalent
(gallons /year)
Diesel -
Equivalent
($2.29
/gallons)
Health
Benefits
Gas
Savings
by
changing
the fleet
MD Hybrid
6.3504
0.6744
0.5433
1.8777
595.2597
53,627.00
122,805.83
$18,000 $133,620
MD Diesel
4.5283
0.6711
0.5433
1.9728
514.0854
46,314.00
$
106,059.06
$16,000
$115,399