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Approve the $8.25 Million Installment Purchase Contract for the Replacement of Transit Buses.
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Staff:
Department:
Amy Oland, Director
Business Management
Brian Litchfield, Director
Transit
Overview: The adopted Chapel Hill Transit Capital Plan identifies the need to purchase at least seven (7) replacement buses each fiscal year to maintain a reliable and efficient and transit fleet. Grant funding has been used to purchase 49 buses, including 11 electric buses, over the past five (5) years. However, the department has not been able to keep pace with just grant funding and now needs to replace 13 buses, including 60' articulated buses. The Transit Funding Partners are committed to maintaining the Transit Capital Plan and have committed funding to debt-finance replacement buses within the adopted Transit budget. The Funding Partners also recognize that the Town of Chapel Hill has the fiduciary responsibility for the operation of the public transit system, including, but not limited to, issuing any debt necessary to finance the purchase of the new buses as well as repayment of that debt.
Recommendation(s):
That the Council adopt the resolution approving financing terms and documents for the 2023 bus financing that, among other things, approves the form of the agreement, authorizes the Manager to execute the agreement, and authorizes Town Officers to take the steps necessary to complete the financing.
Key Issues:
* The Chapel Hill Transit Partners have agreed to share the cost of financing the purchase of replacement buses.
* The financing will allow for the replacement of up to five (5) 60' clean diesel buses and three (3) 40' electric buses. The final purchase numbers and costs will depend on the costs of buses, interest rate, and costs related to borrowing.
* The purchase price of each bus is not yet known as Chapel Hill Transit is currently in the bidding stages of the procurement process.
* It will take between 18-24 months from the order ...
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