City council overwhelmingly approved a motion Wednesday to approve the $155 million purchase of 226 new articulated buses after city staff supported the whirlwind deal from New Flyer, the Winnipeg-based manufacturer.
New Flyer offered the city a discounted price after Chicago deferred its order as a result of financial constraints.
City treasurer Marian Simulik says that the deal will net the city $1.2 million in savings due to trade in credits for the city’s ageing 2001-2002 fleet, a 5 year bumper-to-bumper warranty, and fuel and maintenance efficiencies.
Capital Ward Coun. Clive Doucet said the deal council approved today was more like a recall of the troubled 2001-2002 fleet and recognized the manufacturer for being proactive in giving the city a financial credit for the old fleet.
The city had planned on buying 80 buses this year but after one week of learning of the deal council decided the deal was too good to refuse.
Gloucester- South Gate Ward Coun. Diane Deans said she worried about whether or not the manufacturer would be around long enough to honour its warranty. She noted that New Flyer had recently laid off 320 workers and lost $30.4 million last year.
The new buses are set to hit Ottawa’s streets this August.