PURPOSE:

The purpose of this report is to request City Council approval to replace seven (7) Burbank Transportation Service (BTS) buses and amend the Fiscal Year 2005-06 budget to appropriate $385,000 from Fund 532 for the purchase of these buses.  These vehicles provide transportation throughout Burbank to senior and disabled persons, and are in need of replacement.

BACKGROUND:

During the Fiscal Year 2003-04 budget preparation process, it was determined that a longer life was possible for these buses based on vehicle usage at that time.  Thus, the useful lives of these buses were increased to reduce department operating costs, and they were scheduled for replacement in Fiscal Year 2006-07.  However, during Fiscal Year 2004-05 and continuing into Fiscal Year 2005-06, these vehicles have served as back up buses for the seven (7) CNG media district shuttle buses, which have experienced excessive downtime resulting from many warranty repair issues.  Ultimately, the additional use of the BTS buses has placed an unexpected burden on the vehicles, which are now experiencing significant mechanical problems.  Furthermore, implementation of additional fixed route bus programs will potentially escalate the usage of these vehicles.

ANALYSIS:

The average mileage for each BTS bus is 116,000 miles, and it is very unlikely that they will last another year without expensive engine and transmission repairs.  Because the useful lives of these buses were extended beyond their original replacement date of June 2005, the necessary capital to replace them has already been collected and no additional funds are needed.  Staff recommends purchasing new vehicles now rather than incurring significant repair costs to maintain the vehicles for another year. 

In addition, the Transportation Task Force strongly recommends that the entire transportation fleet have a uniform look, which will require all of the transportation vehicles, including BTS, to be repainted.  The estimated cost of painting each vehicle is $4,000-$5,000.  The cost of painting the seven BTS vehicles is approximately $28,000.  It would not be practical to paint the existing seven buses now, and replace them in less than a year.  It would be more cost effective to replace the vehicles at this time.

Gasoline vs. Compressed Natural Gas

Staff recommends that the replacement buses be fueled by gasoline and not compressed natural gas (CNG) for the following reasons:

�        Incremental Costs associated with Gasoline vs. CNG;

�        Availability of CNG Fuel Tanks;

�        Exemption from AQMD Rule 1192;

�        Loss of seating capacity for vehicle range;

�        Emergency Services Logistical Support

The replacement cost for each gasoline bus is $55,000, and its CNG counterpart costs approximately $77,000 per bus.  The incremental cost for a CNG vehicle of this type is approximately $22,000 per vehicle, or 40%.  The additional cost for all seven vehicles is $154,000. Also, Ford Motor Corporation is no longer making the CNG chassis in the paratranist vehicle class; therefore a regular gasoline chassis must be converted to accommodate the CNG fuel type.

A primary material in the manufacturing of CNG fuel tanks, carbon fiber, is in high demand.  Due to the conflict in the Middle East, military applications receive first priority for this material.  Manufacturers of CNG tanks have provided notice to bus manufacturers that the earliest CNG tanks would be available is April of 2006.  (Attachment A).

Another disadvantage to the CNG vehicle is that the seating capacity would be reduced by four (4) seats.  This is due to the fact that the standard single tank van has a range of approximately 100 miles and is insufficient for the BTS application as routes regularly exceed 100 miles daily.  If an additional fuel tank is added in order to increase range, seating capacity must be reduced due to the additional weight of the tank.  The availability of the maximum amount of seats for this type of vehicle is critical to the program to due the large amount of support these vehicles provide to the City and public.

Under Rule 1192, Paratransit buses are exempt [R 1192; (e) Exemptions (A)], and therefore is not subject to inclusion of the agencies transit fleet.       

Lastly, BTS vehicles are first responders in the event of disasters.  In the event of a natural disaster, the CNG station may go offline which would prevent these vehicles from operating.  Gasoline would be much easier to acquire, such as the possibility of siphoning gasoline from one vehicle into another in order to remain operational.  Over the past few years BTS and Got Wheels vehicles have been called into service to stage for evacuations due to two fires and a natural gas line rupture in a residential area.

FISCAL IMPACT:

All seven (7) buses have recovered their full replacement cost of $55,000 each, for a total of $385,000.  The total cost to replace all vehicles seven (7) buses is approximately $385,000.  Funds are available in the Vehicle Replacement Fund�s unappropriated fund balance.    

The proposed resolution will amend the FY 2005-06 Budget to appropriate $385,000 from account number 532-ND000-30004.0000.000000 to account number 532-PR44A-15111-0000.000000.

If it is the Council�s desire, staff also recommends that additional recovery funds be collected to accumulate sufficient dollars to enable the City to purchase alternative fuel vehicles in the future.

RECOMMENDATION:

Staff recommends that Council adopt the proposed resolution authorizing the purchase of seven (7) Burbank Transportation Service (BTS) buses and amending the Fiscal Year 2005-06 budget by appropriating $385,000 for the purchase of the buses.

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