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CC - CONSENT ITEM: Approval of a Purchase Order with Gillig, LLC. to Supply Six Compressed Natural Gas Buses in an Amount Not-To-Exceed $6,133,275 ($5,119,236 Base plus $1,014,039 Contingency).
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Meeting Date: August 11, 2025
Contact Person/Dept: Diana Chang/Transportation Department
Phone Number: (310) 253-6500
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/07/2025); Gillig, LLC 08/07/2025.
Department Approval: Diana Chang, Chief Transportation Officer (07/22/2025)
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RECOMMENDATION
Staff Recommends the City Council approve a purchase order with Gillig, LLC. to supply six compressed natural gas buses in an amount not-to-exceed $6,133,275 ($5,119,236 base plus $1,014,039 contingency).
BACKGROUND
On September 2, 2024, the City Council adopted a resolution approving an update to the Culver CityBus Innovative Clean Transit (ICT) Rollout Plan. The update incorporated $19.6 million allocated for bus replacement under CIP No. PB001 (Capital Improvement Project - Bus Replacement), which is detailed in the Capital Improvements section of the budget book under Fund 203 (Municipal Bus Fund). This funding supports the City's long-term fleet replacement and its transition to zero-emission vehicles; however, additional funds will be required in future fiscal years to support the transition to a zero-emission fleet. The Transportation Department continues to pursue grants and other financial assistance opportunities to support fleet acquisitions and finance the infrastructure necessary for the transit zero-emission initiative.
As part of this transition, the City seeks to procure new Compressed Natural Gas (CNG) buses to replace older, less technologically advanced CNG models that have surpassed their useful lives and become more difficult and costlier to maintain. This effort aligns with state and federal sustainability mandates, ensures continued high-quality transit service, and supports the City’s climate action goals.
DISCUSSION
The City’s current fleet modernization plan and sustainability initiatives align with the proposed purchase of Compressed Natural Gas (CNG) buses. CNG buses contribute to improved public health and neighborhood livability by significantly reducing harmful tailpipe emissions. Compared to diesel, CNG vehicles produce up to 90% less particulate matter (PM) and up to 80% less nitrogen oxides (NOₓ) which are two pollutants directly associated with respiratory illness and degraded urban air quality.
Additional environmental gains are achieved through the City’s continued use of renewable compressed natural gas (R-CNG), one of the lowest-carbon transportation fuels available. Produced from biogenic sources such as landfills, agricultural waste, and wastewater treatment facilities, R-CNG can achieve net-zero or even net-negative lifecycle emissions, reinforcing CNG’s role as a clean-energy bridge in the City’s fleet. Its adoption supports CARB’s Innovative Clean Transit (ICT) milestones and reinforces the City’s commitment to meeting long-term climate neutrality targets.
According to the U.S. Department of Energy’s AFLEET Heavy-Duty Emissions Calculator, replacing a diesel transit bus with a CNG model reduces emissions of nitrogen oxides (NOₓ) by approximately 2,540 pounds and greenhouse gases (GHG) by over 92 short tons over the vehicle’s 12-year lifetime. These reductions further demonstrate the environmental advantages of CNG buses, especially in regions with strict air quality goals. In addition, CNG buses emit near-zero levels of particulate matter (PM₂.₅), further contributing to improved air quality and public health, particularly in vulnerable residential and school-adjacent areas. These benefits are especially critical in dense residential areas and near schools where reducing localized emissions directly improves public health and community well-being thus balancing short-term budgetary savings with meaningful public health gains.
Beyond its environmental benefits, CNG technology offers operational performance comparable to diesel, with the added advantage of lower maintenance costs due to cleaner combustion. CNG demonstrates measurable cost savings in both fuel and maintenance categories, supporting its continued use in fleet replacement efforts. Compared to an industry-standard diesel bus with an average total cost of $1.80-$2.00 per mile, Culver City’s CNG fleet averages under $1.20 per mile, demonstrating approximately 33% cost savings in operations. Additionally, because Culver CityBus already operates a CNG fueling station, this procurement avoids the need for major new infrastructure investments. Additional funding will be needed in future fiscal years as the City evaluates long-term fleet strategies, and staff will continue pursuing available state and federal grant opportunities.
When scaled across the fleet, these recurring savings make CNG a fiscally responsible interim solution ahead of full fleet transition to a zero-emission future. With no new infrastructure required, the City can maximize cost recovery per vehicle while minimizing future budgetary impacts. While the long-term goal remains full fleet transition to zero emission propulsion systems, this strategic investment in CNG buses addresses current service needs, leverages existing infrastructure, and aligns with both environmental and fiscal objectives.
Staff recommends the City purchase six Gillig CNG buses to replace the City’s six oldest buses that have well surpassed their useful lives of 12 years. To streamline the procurement process and secure competitive pricing, the City will utilize cooperative purchasing through the California Association for Coordinated Transportation (CALACT). Under CALACT Contract MBTA RFP #23-01, the cost for six buses is $5,119,236. This procurement is exempt from formal bidding procedures per Culver City Municipal Code Section 3.07.055.G, which exempts bidding requirements where competitive bid procedures have already been utilized by the City, public agency, or joint power agency and the goods or supplies are supplied to the City at the same or better price. Staff is also seeking authorization of a contingency for any design improvements or raw material price increases that may be realized during the anticipated 18-month lead-time for a total project cost not to exceed $6,133,275.
FISCAL ANALYSIS
The total cost to purchase six CNG buses is approximately $6.1 million. The Adopted Budget for Fiscal Year 2025-2026 includes sufficient funds in CIP Project No. 20380000.732100.PB001 (Bus Replacements). The City was awarded approximately $5.2 million in grant funds from the Federal Transit Administration (FTA) 5307 Urbanized Formula Grant program in 2022 and approximately $1.1 million in grant funds from the State of California Transportation Development Act Article 4 in 2019 and 2022 to cover the purchase cost of the six buses. These awarded grant funds are currently being held by FTA and Metro, respectively, are available to the City, and will be reimbursed to the City as expenses are incurred and submitted to FTA and Metro for reimbursements.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a purchase order with Gillig, LLC in an amount of $6,133,275 ($5,119,236 base plus $1,014,039 contingency) to supply six compressed natural gas buses; and
2. Authorize the Purchasing Officer to execute such purchase orders on behalf of the City.