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RFD- 3390 Business Items   Item #   10. a.    
Regular Council Meeting Agenda
Meeting Date: 09/10/2018  
Title:    2019 Local Transit Bus Funding Approval - Levasseur
Department: Planning & Infrastructure  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life Related Goal: Spruce Grove is an easy and convenient City to get around in, with a high degree of ease of mobility for transportation, walkability and connectivity.

Information
Request for Decision Summary
To approve the 2019 expenditure of $738,000 to Crestline Coach Ltd. of Saskatoon, Saskatchewan for the manufacturing and delivery of three local transit buses. An expenditure of $492,000 will follow in 2020 for the remaining two buses as outlined in the Corporate Plan Initiative CE507.5 Transit System Growth - Local Service. This project includes the purchase of five buses and a transit bus storage building and operations facility.

Proposed Motion
That Crestline Coach Ltd. be awarded a contract, not to exceed $1,237,500.00 to manufacture and deliver a total of five Spirit of Freedom buses; three in 2019 and two in 2020 and that $738,000 be pre-approved for expenditure in 2019.
Background/Analysis
In the 2018-2020 Corporate Plan, Initiative CE507.5 - Transit System Growth - Local Service is a multi-year project which includes the purchase of five transit buses for local service over two years and the construction of a transit bus storage and operations facility. The budget estimate for the buses was $675,000 for 2019 and $450,000 in 2020. The final tendered price was 8% higher than estimated with each bus costing $246,000. Since the overall project included a 10% contingency, funds identified within the project are sufficient to cover the cost. 
 
We are to receive three buses in 2019. Two buses are two thirds funded through GreenTRIP ($596,000) with the other one funded through Public Transit Infrastructure Fund ($135,000).  Five buses are being purchased at a cost of $1,230,000.  After taking into account the grant funding supplied ($731,000), the balance to be covered by the City of Spruce Grove is $499,000.

The motion includes and additional $7,500 in contingency funds should they be required. This contingency has been accounted for in the overall budget for this project.

We will need to receive one bus by the end of February so that we can claim it in the Federal 2018 fiscal year. Currently production of these buses takes up to six months from date of order. Our desired scheduled for delivery is February and then May/June.
 
Local service will commence in September 2019.  Details of local service operations will be defined through the course of this fall and winter and will include considerable public engagement.
Options/Alternatives
N/A
Consultation/Engagement
A comprehensive analysis of vehicle types and options was completed prior to tendering, based upon consultations with Leduc, Fort Saskatchewan, and Airdrie Transit. Research on the various manufacturers was conducted on-line and through direct contact with their sales representatives.
Implementation/Communication
There will be a comprehensive communication plan with the launch of local service.
Impacts
This project will see delivery in 2019 of three of the five buses being built and delivered to the City of Spruce Grove for local community service starting in 2019.

Fiscal Impact
Financial Implications:
The acquisition of transit buses for local service will take place in the 2019 budget year. In that year, three of the buses will be delivered to the City. Authority is required to award the contract to meet production time in order to take delivery so we can benefit from Federal/Provincial grants.
Attachments
No file(s) attached.

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