Meeting_Body
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
NOVEMBER 21, 2024
Subject
SUBJECT: REPLACE G-LINE OPPORTUNITY CHARGERS
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) to execute Contract Modification No. 24 with New Flyer of America in the not-to-exceed amount of $7,938,707 under Contract No. OP28367-001, to procure seven on-route opportunity chargers, replace the same number of chargers installed on the G-Line Bus Rapid Transit (BRT) line and include a Service Level Agreement to ensure reliability and availability, increasing the total contract value from $66,460,743 to $74,399,450. This Contract Modification does not increase the Life of Project (LOP) budget of $80,003,282.
Issue
ISSUE
The G-Line charging infrastructure is experiencing significant reliability and availability issues, adversely impacting Metro’s Operations and Service. For the majority of 2024, four of the eight opportunity chargers were out of service. This has resulted in Metro periodically needing to substitute Battery Electric Buses (BEBs) with Compressed Natural Gas (CNG) buses, fueled with renewable natural gas, to maintain service.
The primary issue is that neither the industry nor the technology had matured when the G-Line was converted to zero-emission operations in 2021. As a result, there were significant initial integration issues between the chargers and the BEBs.
Background
BACKGROUND
In July 2017, the Board approved Motion 50 by Directors Bonin, Garcetti, Najarian, Hahn, and Solis (Attachment A) to convert the Orange Line (G Line) to a full Zero Emission (ZE) operation. That same month, New Flyer of America (New Flyer) was awarded a contract to deliver forty 60-foot articulated Battery Electric Buses and eight opportunity chargers to service the G-Line: two chargers each for the Chatsworth and Canoga Stations and four more chargers for the North Hollywood Station. New Flyer subcontracted the procurement and delivery of the chargers to Siemens. Although Siemens is a well-established company in the transit industry, its entry into the EV charging field under its eMobility division was relatively recent at the time of the subcontract.
Full battery electric bus service on the G Line commenced in January 2021, while all the opportunity chargers were installed in October 2021. In June 2021, one of the North Hollywood Station chargers was permanently damaged when it was struck by one of Metro’s buses.
Numerous obsolescence and technical issues have plagued the system. Nonetheless, Metro and the contractor were generally able to mitigate the issues and keep the chargers operational until the start of 2024, when the chargers began developing technical challenges that could not be resolved. As of July 31, 2024, four chargers were permanently offline (one due to the collision and three for technical issues). The remaining chargers have experienced intermittent issues impacting their performance and availability. Specifically,
• The equipment is not fully compatible with the operating environment, resulting in numerous out-of-service periods due to rain and warm weather;
• The diagnostic system is not fully developed, not allowing for local troubleshooting and repairs;
• The vendor’s technical staff was not fully trained, requiring support from non-local engineers; and
• The supply chain is not fully developed, leading to parts shortages.
Further, Metro included procurement of the chargers with the bus solicitation. Metro later learned that the existing reliability and availability provisions were insufficient to hold the contractor accountable for ensuring the chargers performed according to Metro’s requirements.
The obsolescence of the equipment makes troubleshooting, part replacement, and repairs very challenging, limiting the availability of the chargers for service and causing range anxiety for operators.
Discussion
DISCUSSION
New Flyer proposed Heliox as the replacement charger supplier. Metro staff reviewed the recommendation to ensure proposed chargers will meet G-Line operational requirements. Through outreach with other transit agencies, staff has reviewed performance, reliability, technical support, and approved these chargers as replacements. Staff recommends replacing the seven obsolescent Siemens chargers experiencing technical issues with more technically mature Heliox chargers. The eighth charger will be replaced via warranty with a similar Heliox charger. This charger was deemed unrepairable and decommissioned by New Flyer. In a previous agreement, New Flyer agreed to replace the charger as part of the warranty coverage.
Heliox was founded in 2009, and its core business is delivering charging systems for public transport. In 2023, Siemens ceased manufacturing its own chargers and procured Heliox to manufacture its chargers. As of that year, they have delivered and installed over 1600 DC rapid chargers. Further, Heliox’s North American headquarters is in Atlanta, Georgia, and includes design, training, and manufacturing units. Therefore, trained and experienced Heliox staff should be more readily available to support Metro’s ZE operating system. Supply chain issues should also be mitigated since the chargers are manufactured domestically. Although there are other charger vendors, there are very few whose core business is delivering charging systems for public transport and have a domestic manufacturing, design, and training presence.
Staff also recommends procuring a Service Level Agreement (SLA) for all eight new chargers within the change order to ensure qualified and experienced staff are available to troubleshoot and repair the equipment and maintain a high level of reliability and availability. The SLA incorporates lessons learned from the existing contract. It includes performance requirements to ensure that qualified and trained staff are available to respond expeditiously to ensure equipment availability and reliability. For example, the SLA requires 97% availability of the chargers for the contractor to receive 100% of the scheduled milestone payment. Lesser charger availability will result in lesser amounts being paid.
Metro conducted negotiations with New Flyer to secure a prorated credit for the remaining, unused warranty life as the existing chargers are replaced. This consideration reflects Metro’s commitment to fiscal responsibility, ensuring that the value of the underutilized equipment is accounted for within the overall contract modification. By securing this credit, Metro aims to maximize cost efficiency while transitioning to a more reliable, technically mature charging infrastructure.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The recommendations support the successful operation of the G Line and the 40 New Flyer 60-foot BEBs. Adopting this recommendation will provide operators with dependable on-route charging, which will reduce operator range anxiety and ensure reliable operation of the equipment.
Financial_Impact
FINANCIAL IMPACT
Total LOP funding of $80,003,282 is included in Cost Center 3320-Vehicle Technology, under project 201073, with an LOP available of $11,681,039. The FY25 annual budget is $2,067,838. This action is within the project LOP.
Since this is a multi-year contract, the Cost Center Manager will be responsible for ensuring that future year funding is programmed.
Impact to Budget
The current source of funds for this action is Measure R 35%. This funding is not eligible for bus and rail operating projects. The use of this fund meets the project allocation intent, given approved provisions and guidelines.
Equity_Platform
EQUITY PLATFORM
The G Line provides dedicated rapid transit bus service to many Equity Focus Communities (EFCs) on a 17.7-mile route from Chatsworth Station to North Hollywood Station in the San Fernando Valley. The line services roughly 97 High Need or Very High Need EFCs with the following demographics:
• 61% percent of households within the line’s EFCs are low-income.
• 12% are zero-vehicle households.
• 81% of the population is Black, Indigenous, and People of Color (BIPOC).
As previously noted, reduced charger availability impacts Metro’s ability to operate BEBs on the G Line, necessitating that Metro deploy CNG vehicles to meet service levels. These impacts reduce service reliability and create greater pollution within these EFCs. Renewable Natural Gas (RNG) powered CNG buses can generate up to 0.75 metric tons of carbon monoxide per year, and the short duration of time with RNG-powered buses used on the G Line produced a portion of this amount per bus.
New Flyer of America, Inc., a Transit Vehicle Manufacturer (TVM), is listed on the Federal Transit Administration’s (FTA) list of eligible TVMs and submitted its overall Disadvantaged Business Enterprise (DBE) goal of 4.01% to FTA for FY25. TVMs submit overall DBE goals and report participation directly to FTA annually.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
This recommendation supports Goal #3, Enhance communities and lives through mobility and access to opportunity, and Goal #4, Transform LA County through regional collaboration and national leadership.
Alternatives_Considered
ALTERNATIVES CONSIDERED
An alternative to the proposed new chargers is to continue using the current obsolescent chargers on the G Line. This option is not viable due to significant operational challenges, including limited support from OEM vendors and difficulties in procuring necessary repair parts. Additionally, as technology advances, these chargers will become incompatible with newer buses equipped with updated charging protocols.
Another option is to enforce the warranty, but Staff does not recommend due to a lack of Service Level Agreement (SLA) in place with the current chargers, therefore, the contractor is not incentivized to quickly and permanently resolve issues.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute the Contract Modification to purchase and install chargers for North Hollywood, Chatsworth, and Canoga.
Attachments
ATTACHMENTS
Attachment A - Board Motion 50 Strategic Plan for Metro’s Transition to Zero Emission Buses
Attachment B - Procurement Summary
Attachment C - Contract Modification/Change Order Log
Attachment D - DEOD Summary
Prepared_by
Prepared by:
Daniel Surmenian, Senior Manager, Project Control, (213) 922-5830
Jesus Montes, Senior Executive Officer, Vehicle Acquisitions, (213) 418-3277
Debra Avila, Deputy Chief, Vendor/Contract Management, (213) 418-3051
Reviewed_By
Reviewed by:
Conan Cheung, Chief Operations Officer, 213-418-3034
