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Authorize the Town Manager to Enter into a Bus Financing Agreement with the Transit Partners and Issue a RFP for Debt Financing the Purchase Of New 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 transit fleet. While a significant amount of grant funding has been used for these purchases over the past five (5) years, 49 buses, including 11 electric buses, the department has not been able to keep pace with just grant funding and now needs to replace 12 buses (number grows to 19 in FY 2024), 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 a resolution authorizing the Town Manager to enter into an agreement for the financing of the new buses among the Town of Chapel Hill, Town of Carrboro and The University of North Carolina at Chapel Hill and to issue a Request for Proposals (RFP) to debt-finance the purchase of new buses for public transportation services and
Decision Points:
* The Chapel Hill Transit Funding Partners have achieved consensus on debt-financing of 7-10 replacement buses. This 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, rates and costs related to borrowing.
* If approved by Council, th...
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