September 24, 1998

Ms. Novina Wong

Clerk

City of Toronto

Station 1071, 7th Floor

Metro Hall

55 John Street

Toronto, Ontario

M5V 3C6

Dear Ms. Wong:

At its meeting on Wednesday, September 23, 1998, the Commission considered the attached report entitled, "Wheel-Trans Vehicle Replacement."

The Commission approved the Recommendation contained in the above report, as listed below:

"It is recommended that the Commission approve:

1/a $10.1M increase in the current project approval amount of $17.4M for the Wheel-Trans Vehicle Replacement project, bringing the total to $27.5M; and

2/an increase in the 1998 Operating Budget allocation for purchasing these buses from $2,000,000 to $2,800,000 due to bus price increases, noting that should it not be possible to award this contract and make initial payments in 1998, arrangements should be made to place these funds into contingency for use in 1999; and

3/the award of a contract to Overland Custom Coach Inc. for the supply of 127 accessible low floor (ELF) buses in the amount of $27,030,966 (including taxes), subject to City Council approval; and

4/the provision of associated spare parts, test equipment, vehicle maintenance training, vehicle inspection services and in-house support in the amount of $469,034 (net of GST rebate); and

5/forwarding this report to the City of Toronto Council for approval of:

a)additional project approval and financing of $10.1M by no later than October 30, 1998 at which time the bids expire;

b)and an increase of $800,000 in the 1998 Wheel-Trans Operating Budget subject to successful negotiations with Overland Custom Coach Inc. regarding the delivery of 14 ELF low floor buses in 1998.

6/forwarding this report to the TTC's Advisory Committee on Accessible Transportation for information."

The foregoing is forwarded to City of Toronto Council for the necessary action, as detailed in Recommendation No. 5 of the report, as well as, the TTC's Advisory Committee on Accessible Transportation for information.

Sincerely,

Vincent Rodo

General Secretary

1-64

Attachment

Copy:Mr. W. Brown, Chair - TTC's Advisory Committee on Accessible Transportation

TORONTO TRANSIT COMMISSIONREPORT NO.

MEETING DATE:September 23, 1998

SUBJECT:WHEEL-TRANS VEHICLE REPLACEMENT

RECOMMENDATION

It is recommended that the Commission approve:

1/a $10.1M increase in the current project approval amount of $17.4M for the Wheel-Trans Vehicle Replacement project, bringing the total to $27.5M; and

2/an increase in the 1998 Operating Budget allocation for purchasing these buses from $2,000,000 to $2,800,000 due to bus price increases, noting that should it not be possible to award this contract and make initial payments in 1998, arrangements should be made to place these funds into contingency for use in 1999; and

3/the award of a contract to Overland Custom Coach Inc. for the supply of 127 accessible low floor (ELF) buses in the amount of $27,030,966 (including taxes), subject to City Council approval; and

4/the provision of associated spare parts, test equipment, vehicle maintenance training, vehicle inspection services and in-house support in the amount of $469,034 (net of GST rebate); and

5/forwarding this report to the City of Toronto Council for approval of:

a)additional project approval and financing of $10.1M by no later than October 30, 1998 at which time the bids expire;

b)and an increase of $800,000 in the 1998 Wheel-Trans Operating Budget subject to successful negotiation with Overland Custom Coach Inc. regarding the delivery of 14 ELF low floor buses in 1998.

6/forwarding this report to the TTC's Advisory Committee on Accessible Transportation for information.

FUNDING

The 1998-2002 Wheel-Trans Service Plan assumed flatlined funding of $38.2M per year in order to meet projected trip demand and to partially fund the procurement of new accessible buses to replace the Orion II fleet.

It was estimated that a total of $17.4M would be required over the five year period to replace the fleet with $14.0M to be provided from the Wheel-Trans Operating Budget and the balance of $3.4M to be provided from the Commission's 1998-2002 Capital Program. The funding details of the 1998-2002 plan are shown in Table 1.

Table 1

1998-2002 Wheel-Trans Service Plan

($ Millions)

Based on a tender call, we now know that the cost to replace the Orion II Fleet with low floor buses has significantly increased from $17.4M to $27.5M resulting in a requirement for an additional $10.1M in operating funds.

Table 2

Vehicle Replacement Costs

($ Millions)

*Includes Capital Funds of $3.4M ($1.7M in 1999, $1.0M in 2000 and $0.7M in 2001)

BACKGROUND

In 1997, the Task Force on Accessible Transit presented a Five Year Service Plan that was adopted by Metro Toronto and the Commission. That Plan identified the need to replace the aging fleet of Orion buses as they were approaching the end of their design life, are expensive to maintain, and increasingly unreliable. The Task Force concluded it would not be cost effective to refurbish the old Orion buses.

As per the Task Force's recommendation, a test of new low floor and lift-equipped buses was completed earlier this year. One low floor and two lift-equipped specialized buses were tested in service to consider factors such as vehicle reliability, maintenance and fuel costs, ride comfort, passenger safety, and scheduling constraints as well as the accommodation of various mobility devices. Wheel-Trans customers assisted Commission staff in the evaluation of the test buses. These vehicles were also viewed at a Wheel-Trans Open Forum and examined by the Advisory Committee on Accessible Transportation (ACAT). Members of ACAT assisted in the evaluation of each vehicle type.

From an Operator, scheduling, and maintenance perspective, both vehicle types were considered acceptable. However, Wheel-Trans customers and members of ACAT preferred the low floor design because of the superior ride quality, safety, security, and ease of entry and exit. Some customers were so concerned about their safety and comfort on lift-equipped buses that they requested trips only on low floor buses. This latter issue could be alleviated through increased customer familiarity with lift-equipped vehicles and additional Operator assistance in the shorter term.

Other concerns raised about the lift-equipped buses included scheduling constraints due to relocating wheelchairs and scooters when the bus was filled to capacity, as well as longer loading and unloading times. In addition, some customers were concerned about lift devices being able to accommodate large motorized scooters. While these concerns did not manifest themselves as significant delays to service, the test would suggest that lift-equipped buses are less adaptable and flexible with regard to quickly and efficiently handling large mobility devices and serving peak demand during core service hours.

DISCUSSION

As a result of this test, both types of vehicles are considered acceptable for Wheel-Trans service. In addition, the test identified areas to be addressed in the current accessible vehicle specifications such as safety systems for ramps and lifts, improved ride quality, better interior layout and access to doors, improved seating, better lighting and visibility, an alternate emergency exit on lift-equipped buses and upgraded major mechanical components to improve vehicle reliability and achieve cost efficiencies.

On June 30, 1998, a Request for Proposals to supply 127 specialized accessible lift-equipped and low floor vehicles over a five year period was publicly advertised in the Globe and Mail and 14 companies were issued notifications. Optional prices were requested for the delivery of 50 additional buses, a best continuous vehicle delivery, and a $2.0M prepayment in late 1998.

A total of eight companies picked up the Request for Proposals and four proposals were received for the supply of lift-equipped buses and two proposals offered for the supply of low floor buses. Appendix 'A' summarizes the proposals for the supply of 127 buses of each type and the optional prices for the delivery of an additional 50 buses.

Based on a preliminary analysis to establish the cost benefit of proceeding with the aforementioned pricing options, staff concluded that insufficient benefit existed to pursue the prepayment option as proposed. Discussions are continuing with the manufacturer to secure a more advantageous discount in return for an advance payment. Staff are continuing to evaluate the continuous delivery option both from a cost benefit and operational perspective. If this option is determined to be more beneficial then staff will report to the Commission at the next meeting.

Lift-Equipped Buses

Overland Custom Coach Inc. (Overland) submitted the lowest priced proposal for a lift-equipped bus (El Dorado National Aertech Model 240). However, they stated several exceptions such as a reduced vehicle design life, limited warranty, limited access to wheelchair positions, and overall vehicle height. Therefore Overland's proposal is considered both commercially and technically non-compliant.

The second lowest price proposal was offered by Capital Bus Sales (Capital) for their Corbeil bus. However, Capital stated several exceptions including a limited warranty, limited random wheelchair access, and an inability to meet all the Provincial/Federal regulatory requirements at this time. Therefore Capital's proposal is considered both commercially and technically non-compliant.

Leeds Bus Sales Limited (Leeds) offered the only commercially and technically acceptable proposal for the supply of lift-equipped buses. The Girardin MB IV bus was offered. Their submission was qualified in that the Girardin MB IV has a five year service life. However, they met the specified seven year structural warranty (including chassis) and as a result this qualification is considered technically and commercially acceptable.

Low Floor Buses

Overland Custom Coach (Overland) submitted the lowest price proposal for their ELF low floor bus. The only notable exception was a service life of five years or 200K miles. However, Overland did comply with the specified seven year structural warranty and offered an extended warranty exceeding the specified requirements of the overall bus, engine and transmission. Therefore Overland's proposal is considered both commercially and technically acceptable.

Orion Bus Industries (Orion) submitted an alternative proposal to lease 127 Orion II low floor buses over a seven year term at $3,703 per month or a nine year term of $3,139 per month. Based on a net present value analysis, the cost to lease these buses from Orion is higher than the purchase cost for the ELF buses. Also, Orion did not comply with various warranty provisions and therefore their proposal is considered commercially non-compliant.

Wheel-Trans has gained considerable experience with an earlier model low floor ELF bus which has been in revenue service since 1993. This test of the new low floor (ELF) bus in 1998 confirmed earlier assessments that this vehicle has the overall design and capacity necessary to meet the growing demand for Wheel-Trans service. In fact, the Task Force on Accessible Transit had used the previous model low floor ELF bus as a benchmark vehicle in their analysis as it was recognized as having the advantage of lower maintenance cost than the Orions and the capacity to meet Wheel-Trans demand.

Over the Five Year Vehicle Replacement period, the 127 low floor ELF buses plus associated spare parts, test equipment, vehicle maintenance training, vehicle inspection services and in-house support will cost approximately $27.5M. These low floor buses are more expensive than the lift-equipped buses ($16.6M) and rebuilt Orion buses ($26.0M). With regard to the rebuilt Orions, the significant ongoing operating cost advantage of the low floor (ELF) buses negates the additional capital costs as compared to rebuilt Orion buses.

Based upon testing both lift-equipped and low floor buses, staff consider both vehicles appropriate for Wheel-Trans service. However, customers have indicated a distinct preference for low floor technology, in particular they appreciate the ease of entry and exit from the bus as well as the ride quality. This preference for low floor technology, combined with the increased flexibility of low floor buses in meeting the additional demand during peak service periods, prompted staff to not pursue the purchase of lift-equipped vehicles even though the procurement of these vehicles would have allowed us to remain within the original vehicle replacement budget ($17.4M). Appendix 'B' outlines the total project funding required for each of the Orion vehicle replacement options considered; namely rebuilt Orions, the Girardin MB IV lift-equipped bus, and the low floor (ELF) bus as compared to the Operating and Capital funding provided for in the Five Year Plan.

Due to the increased cost of low floor (ELF) over what was projected last year, the $2.0M provided for in the 1998 Operating Budget for purchasing 14 replacement buses must be increased to $2.8M. Neither the Overland or Leeds proposals provided for delivery of buses in 1998. If Overland is unable to deliver buses this year, staff recommends approval to carry over these operating budget funds for the purchase of the 14 buses in 1999.

JUSTIFICATION

Approval to purchase 127 ELF low floor buses from Overland will allow for the scheduled replacement of Orion buses over the five year period 1998-2002 resulting in decreased maintenance costs and increased vehicle reliability. The replacement program will allow the Commission to provide a quantity and quality of service required and expected by our customers. Continuing without the vehicle replacement program will result in further maintenance cost increases as well as continuing deterioration of vehicle performance and customer dissatisfaction.

- - - - - - - - - - - -

September 18, 1998

Appendices A, B

APPENDIX 'A'

* Open for acceptance for the duration of the contract

APPENDIX 'B'

FIVE YEAR BUS PURCHASE OPTIONS

TABLE 1: FIVE YEAR BUS PURCHASE PLAN

(1998-2002 CAPITAL PROGRAM)

*Actual deliveries to be 30 in 2001 and 23 in 2002.

TABLE 2: IMPACT OF REBUILDING ORION BUSES

TABLE 3: IMPACT OF LEEDS LIFT-EQUIPPED BUSES

TABLE 4: IMPACT OF OVERLAND LOW FLOOR BUSES

Project funding to replace the Orion buses with 127 low floor (ELF) buses is $27.5M ($24.1M from Operating and $3.4M from Capital).