2015-04-07 Item 2 - Attachment 1 - Pre feasibility Study of Electric Bus Routes

7.   Strategic outline case
     7.1      Assessment criteria framework
     A Strategic Outline Case (SOC) has been developed to identify and compare the indicative
     longer term costs of the recommended electric bus options which are likely to proceed to a
     live trial, together with consideration of potential funding sources.
     Within the SOC, costs are assessed on a financial basis using a Net Present Cost (NPC)
     approach. NPC is used rather than Net Present Value (NPV) because it is assumed that
     ticket revenues would be the same for all bus types.
     Within the SOC, the financial model is designed to provide an indicative cost comparison of
     Optare and BYD buses over a 15 year investment horizon. It is designed to evaluate and
     compare the upfront purchase costs of a single bus and the anticipated energy and
     maintenance costs on a ‘like-for-like’ basis. Accordingly, where the 15 year investment
     horizon (corresponding to the shortest operational bus lifetime) results in a residual value,
     this value is deducted from the final NPC figures. In this way, residual value can be thought
     of as an allocation of value for the increased expected operational life of one electric bus
     against another. Within the financial model, the deprecation of upfront purchase costs and
     anticipated fuel, maintenance and servicing cash flows are discounted (at 7%) over this 15
     year time period. This allows for aggregated costs of each bus option to be compared as a
     net present cost.

     The financial model does not take into account some costs that whilst significant are not
     subject to considerable variation across bus options such as insurance, registration costs,
     wages of drivers and maintenance staff. Other factors that are not currently incorporated into
     the financial model but which may have significant project cost impacts include:
        The choice to purchase or lease of the electric vehicle
        Any non-routine vehicle maintenance

        Vehicle storage and security requirements to lease space from the bus depot or allocate
        space at the Council depot in Noosa
        Driver training and operations

        Branding and marketing of the trial
     The SOC operational model, compares the indicative costs of running selected electric bus
     options (Optare and BYD) as a fleet, on Route 627 against the indicative costs of running the
     current Sunbus diesel buses only. Optare and BYD were selected as the final two (2) electric
     buses likely to be deployed for the trial following a presentation and meeting with Noosa
     Council. The time period for the operational model is 10 years (based on TransLink’s initial
     leasing period) which allows for a longer term operational comparison of the current Sunbus
     diesel buses with both the Optare and BYD electric bus models. Based on data provided by
     TransLink as well as the electric bus providers, this analysis include comparisons with some
     of the major operational costs of running buses on the current Route 627. Data on the
     operation of a diesel bus on Route 627 is also helpful as the roll out of electric bus options
     on the route requires the support (and related costs) of at least one diesel bus due to
     charging and electric bus operating constraints. Operational model costs include estimates
     of repair, maintenance and driver costs per kilometre. Excluded costs include but are not
     limited to, wear and tear and staff training costs.




     48 | GHD | Proposal for Noosa Council & TransLink Division - Planning Report