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Finance committee approves purchase of five CNG transit buses from Gillig using FTA grant
Summary
The committee approved buying five 35‑foot compressed natural gas buses under a precompeted Washington state contract, funded primarily by an FTA grant with a 20% borough match; the award carried 8–0.
The Fairbanks North Star Borough Finance Committee approved an award to Gillig LLC for five compressed natural‑gas transit buses, using a Washington State cooperative contract to take advantage of precompeted pricing and Federal Transit Administration (FTA) funding.
Staff described the purchase as grant‑funded. “This purchase is being funded by a grant from FTA with a 20% borough match,” Corey Beal told the committee when he presented the staff report. The committee approved the purchase under the Washington contract and accepted a firm quote from the vendor; the committee adopted an amendment that updated the total to the finalized vendor quote of $4,339,340 for the five buses.
Why it matters: committee documents say the purchase fits the borough’s planned multi‑year conversion from diesel to CNG vehicles to reduce fuel and maintenance costs. With the addition of five buses the borough will own eight CNG buses (the borough had previously purchased three) and staff told members the fleet conversion target is 13 CNG buses. Staff said the state contract is well suited to the borough because it is designed to be used with FTA funding and helps streamline procurement.
Debate and vote: committee members asked about statewide procurement, warranty and testing in sub‑Arctic climates. Staff said the buses are 35‑foot models and that testing and training were underway for earlier CNG deliveries; warranty and commissioning items remained in process for the units already in the fleet. The motion to award the contract (moved by Ms. Wilson, seconded by Dr. Haney) was amended to reflect the final, lower vendor quote and passed unanimously by roll call (8–0).
Funding and implementation: staff said the purchase will be funded by an FTA grant with a 20% local match; the match will come from the transit enterprise fund. Staff also told the committee the expected fuel and maintenance savings would accrue over time as the borough grows the CNG fleet and reduces diesel consumption. The administration will return to the assembly to finalize contract documents and appropriation adjustments as required.
