Title
CATS Battery Electric Buses Agreement
Action
Action:
A. Authorize the City Manager to negotiate and execute an agreement with eTransEnergy, a Duke Energy company, to provide a phased program for a conversion to an electric bus fleet in alignment with the city’s Strategic Energy Action Plan goals, and
B. Authorize the City Manager to negotiate and execute any amendments necessary to carry out the program, including for electric buses, charging infrastructure, and related electrical infrastructure installation services.
Body
Staff Resource(s):
John Lewis, CATS
Allen Smith III, CATS
Jennifer Fehribach, CATS
Explanation
§ The city, along with support from the American Cities Climate Challenge, is developing the CATS Battery Electric Bus (BEB) fleet transition plan.
§ eTransEnergy, a Duke Energy company, was selected as the city’s partner after receiving an unsolicited BEB proposal seeking competitive bids.
§ This action supports the Strategic Energy Action Plan which strives to have city fleet and facilities be fueled by 100 percent zero-carbon sources by 2030 and sets a community-wide goal for Charlotte to become a low carbon city by 2050.
§ On June 2, 2020, the Federal Transit Administration (FTA) awarded CATS a Low or No Emissions Grant (Low-No) in the amount of $3,723,712 to purchase six BEBs and chargers. CATS will match this grant 50/50 for a total amount of $7,447,424.
§ eTransEnergy will provide a multi-phased approach for the CATS conversion to a full BEB fleet. Phases will include:
- A 12 to 18-month pilot program with a total of 18 BEBs from three different bus manufacturers.
§ Grant funds will support CATS’ purchase of a total of six BEBs from eTransEnergy. eTransEnergy will purchase the vehicles from three different manufacturers.
§ Under the terms of the Unsolicited BEB Proposal:
- CATS will purchase 12 additional BEBs from eTransEnergy. eTransEnergy will purchase the vehicles from the same three manufacturers for a total of 18 vehicles for the pilot program.
- eTransEnergy will install the charging equipment and infrastructure. The city will be the sole owner of the charging equipment and infrastructure, located on CATS property at South Tryon Street in Council District 3 and North Davidson Street in Council District 1.
- eTransEnergy will provide design, procurement, installation, energy management, maintenance, training, performance data, and other services for BEBs and related electrification infrastructure.
§ CATS will have a five-year service agreement with eTransEnergy for charging equipment maintenance, a charge management system, and hosting services.
§ The annual service cost is approximately $137,959 and will be paid monthly and funded from the CATS annual operating budget.
- Purchase expense of 18 BEBs and charging equipment with eTransEnergy is $22,698,773.
Disadvantaged Business Enterprise
The manufacturers of the buses are in compliance with the Federal Transit Administration regulation 49 CFR Part 26.49, which requires Disadvantaged Business Enterprise Opportunity certifications from Transit Vehicle Manufacturers as a condition of being authorized to bid on transit procurements funded by the Federal Transit Administration.
Fiscal Note
Funding: CATS Capital Investment Plan and CATS Operating Budget