Council to embark on $3.5M purchase of 3 hybrid transit buses

North Bay City Council will vote during its next regular meeting on the approval of a $3,561,735 contract to Nova Bus Inc. for the purchase of three 12-metre hybrid transit buses.

The fleet management report recommends the purchase of the three hybrid buses. It warns that "not awarding the contract is not recommended" as the fleet will become less dependable as it ages and "failing to acquire the new hybrid buses will result in the loss of significant ICIP funding opportunities, which would dramatically reduce the cost of hybrid buses, leading to substantial fuel savings and a more cost-effective overall ownership experience for the City."

It takes green to go green. Despite higher upfront costs — a new hybrid transit bus costs approximately $337,000 more than a diesel bus — municipal officials are confident savings will be realized through lower fuel and maintenance costs.

A diesel bus retails for $850,000 while the hybrid bus price is $1,187,000. The buses will be purchased under an existing Metrolinx joint procurement governance agreement, negotiated when the Canadian currency was stronger, according to the City of North Bay. A new agreement is in progress and is expected to factor in additional inflation escalation.

The associated staff report states the diesel transit buses have seen their lifecycles extended to 13 years "thanks to our improved maintenance practices and the manufacturer's exceptional product quality and support over recent years."

Despite this glowing report, the move to go green(er) is afoot. With one diesel bus each reaching the end of its lifecycle this year, and in both 2024 and 2025, fleet management is prepared to set in motion the transition to hybrid buses — a feat that will be made more palatable by the approval of ICIP funding that is expected to cover the majority of the initial investment to go green through a shared cost of one-third from each level of government.

The report indicates the new hybrid buses will not arrive until 2025 due to factory delays when all of the three identified diesel buses will be out of use.

"Replacement of these buses will reduce maintenance costs, reduce downtime, and provide improved safety and operational features for drivers and the public while maintaining established fleet lifecycles.

"The adoption of newer hybrid technology promises efficient service, reduced maintenance costs, and up to a 30 per cent reduction in fuel consumption which
provides clear environmental benefits. Many prominent municipalities have already embraced hybrid buses, realizing the benefits of a more sustainable and cost-effective greener fleet," per the report.

BayToday inquired about the financial and operational efficiencies the municipality expects to realize in the switch to hybrid transit buses. The City of North Bay noted the "true impact of these [hybrid] buses will be measurable once fully integrated into our fleet, operating on our routes, and adapting to our local climate. Our goal with this purchase is to achieve vehicle performance on par with or surpassing our current clean diesel units.

"Acquiring these hybrid buses is an initial step in integrating new, greener technologies into our fleet. Our broader objective is to enhance sustainability and efficiency within our operations."

Based on year-to-date data gleaned from the top 10 diesel buses in operation, the hybrid buses will lead to an approximate savings of 30 per cent per unit, per year or just under $18,000. By extrapolating this figure, an estimated 14-year lifecycle of a hybrid unit will lead to nearly $246,000 in fuel savings.

Citing the projected average maintenance costs on the diesel buses to date in 2023, the City estimates annual maintenance per diesel bus to have reached $45,000 due to an increase in the costs of parts and labour.

Annual maintenance savings on the hybrids are estimated at 30 per cent or $13,500 per year or $189,000 over the hybrid unit's lifecycle.

The recent purchase of a new $160,000 ice-resurfacer for Memorial Gardens marked a change in direction for the City of North Bay's fleet management.

“We are strategically introducing electric vehicles into our fleet with a clear goal in mind to make North Bay more sustainable and efficient. This is a proactive step towards reducing our environmental footprint while enhancing the overall efficiency of our operations,” said Fleet Manager John Ouellette in November.

North Bay City Council meets on Tuesday, Dec. 12 at 6:30 p.m.