AGENDA TITLE:
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Adopt a Resolution Authorizing the Purchase of Two 35-Foot Compressed Natural Gas, Low-Floor Buses from Gillig, LLC, of Livermore (Not-to-Exceed $1,750,000), Utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), Appropriating Additional funds ($400,000) and Authorizing Interim City Manager to Execute All Necessary Documents (PW)
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MEETING DATE:
December 3, 2025
PREPARED BY:
Interim Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the purchase of two 35-foot compressed natural gas, low-floor buses from Gillig, LLC, of Livermore, in an amount not-to-exceed $1,750,000, utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), appropriating additional funds in the amount of $400,000, and authorizing the Interim City Manager to execute all necessary documents.
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BACKGROUND INFORMATION:
The City of Lodi currently operates and maintains 24 transit vehicles to provide the GrapeLine fixed route service, VineLine Americans with Disabilities Act (ADA)/Paratransit service, and the general public Dial-A-Ride service. Five (5) of the vehicles in the fleet are 26-foot 2018 Glaval Titan II cutaway buses, which in 2025 are approaching the end of their useful life (8 years), according to Federal Transit Administration vehicle useful life schedules and certifications. As the vehicles being replaced are reaching their end of life, they are frequently breaking down which results in service disruptions, costly repairs, and increased maintenance staff time.
In anticipation of this vehicle replacement timeline, the City submitted a Federal Transit Administration (FTA) grant application to apply $1,147,500 in Federal Fiscal Year (FFY) 22 and FFY 23 Section 5307 funds for the replacement bus purchase. The City was awarded the $1,147,500, with a $202,500 local match in Transportation Development Act (TDA) funds, for a total grant amount of $1,350,000. This total vehicle purchase amount was budgeted for in the FY 25/26 budget.
On October 30, 2025, Gillig provided the City its final quote of $1,571,576 for this vehicle purchase, which is higher than originally anticipated. Due to inflation and tariffs, the cost of vehicles has increased significantly industry-wide. It is also advisable to have around a 10% contingency for vehicle purchases, as these vehicles will be built 18 to 20 months from date of purchase order. Therefore, staff recommends a total not-to-exceed amount of $1,750,000 for this bus purchase, which requires the additional appropriation of $400,000 beyond the originally anticipated $1,350,000 to cover both the unexpectedly higher cost of the vehicles and contingency. Staff will perform a grant amendment with the Federal Transit Administration (FTA) to obtain additional Federal funding for the project ($340,000 for a new total of $1,487,500), and the local match of Transportation Development Act (TDA) funds will increase slightly (by $60,000 for a new total of $262,500).
As stated, this authorization will allow the City to purchase two (2) new 35-foot, low floor, CNG fueled buses made by Gillig LLC in Livermore, CA. They are equipped with well-supported engines made by Cummins and Americans with Disabilities Act (ADA)-compliant ramps. When placed in service, the proposed new buses will be utilized on all fixed routes, rotating between the five weekday, three express, and four weekend routes.
Rotating each new vehicle into regular service as they are delivered to the City will reduce wear and tear on the City’s existing fixed route buses and will increase the availability of spare buses when one is removed from service for preventative maintenance or repairs. During the transition, operating costs are also expected to decrease due to the increased mechanical reliability of the new buses. The existing Glaval Titan II buses will be decommissioned and sold at auction.
Per Lodi Municipal Code Section 3.20.045, State and Local Agency Contracts, the bidding process may be waived when it is advantageous for the City, with appropriate approval by the City Manager and City Council, to use contracts that have been awarded by other public agencies, provided that their award was in compliance with their formally-adopted bidding or negotiation procedures. Purchasing the buses utilizing the WSDOT contract saves the City of Lodi time and money.
STRATEGIC VISION:
1D. Downtown: Accessibility for multi-modal transportation and public safety.
FISCAL IMPACT:
Maintenance costs for the new buses are included in the current Transit operating budget. If the bus purchase is not approved, the City will not be compliant with FTA guidelines in maintaining transit vehicles in a state of good repair, potentially negatively impacting future funding. The five existing buses will be disposed of at public auction in accordance with FTA guidelines, and any proceeds over $5,000 per bus will be applied to this purchase. The project does not impact the General Fund.
FUNDING AVAILABLE:
Previously Approved
FTA Transit Capital (60199000.77040) $1,147,500
TDA Transit Capital (60199000.77040) $ 202,500
TOTAL: $1,350,000
Additional Appropriation
FTA Transit Capital (60199000.77040) $ 340,000
TDA Transit Capital (60199000.77040) $ 60,000
TOTAL: $ 400,000