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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 08/21/2012 - SECOND READING OF ORDINANCE NO. 064, 2012, APPROPRDATE: August 21, 2012 STAFF: Kurt Ravenschlag Karl Gannon AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT Second Reading of Ordinance No. 064, 2012, Appropriating Unanticipated Revenue from the Colorado Department of Transportation and the Federal Transit Administration in the Transit Fund for the Purchase of Six Buses. EXECUTIVE SUMMARY In 2011, the City of Fort Collins was awarded $1,920,000 in Congestion Mitigation and Air Quality (CMAQ) capital funding from the Federal Highway Administration for the period 2012 - 2015 to cover 80% of the total expense ($2,400,000) to purchase six replacement Compressed Natural Gas (CNG) buses for Transfort's fixed route service. This CMAQ grant award has been transferred to the Federal Transit Administration for disbursement and management. The City was also awarded a Colorado Department of Transportation FASTER grant in the amount of $384,000 to cover 80% of the local match ($400,000) to purchase the six 35-foot CNG buses. The City will contribute $96,000 from the Transit Fund to cover the remaining portion of the required 20% local match. An appropriation in the amount of $1,250,000 is already in place for bus procurement. Ordinance No. 064, 2012, unanimously adopted on First Reading on July 17, 2012, appropriates an additional $1,150,000 to equal the total project amount of $2,400,000. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 17, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 17, 2012 STAFF: Kurt Ravenschlag Karl Gannon AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT Items Relating to the Purchase of Six 35-foot Compressed Natural Gas Buses by Transfort. A. Resolution 2012-051 Authorizing the Mayor to Execute an Intergovernmental Agreement Between the City and the Colorado Department of Transportation for "FASTER" Grant Funding in the Amount of $384,000 to Serve as a Local Match Portion of Funding for the Purchase of Buses. B. First Reading of Ordinance No. 064, 2012, Appropriating Unanticipated Revenue from the Colorado Department of Transportation and the Federal Transit Administration in the Transit Fund for the Purchase of Six Buses. EXECUTIVE SUMMARY In 2011, the City of Fort Collins was awarded $1,920,000 in Congestion Mitigation and Air Quality (CMAQ) capital funding from the Federal Highway Administration (FHWA) for the period 2012 - 2015 to cover 80% of the total expense ($2.4 million) to purchase six replacement Compressed Natural Gas (CNG) buses for Transfort's fixed route service. This CMAQ grant award has been transferred to FTA for disbursement and management. The City of Fort Collins was also awarded a Colorado Department of Transportation (CDOT) FASTER grant in the amount of $384,000 to cover 80% of the required 20% ($400,000) local match to purchase the above mentioned six 35-foot CNG buses. The City of Fort Collins will contribute $96,000 from the Transit Fund to cover the remaining portion of the required 20% local match of the total $2.4 million to purchase six 35-foot CNG buses. An appropriation in the amount of $1,250,000 is already in place for bus procurement and staff requests an additional appropriation of $1,150,000 to equal the total project amount of $2,400,000. BACKGROUND / DISCUSSION Transfort receives the bulk of its capital funding in the form of unanticipated federal grants. Historically, unanticipated revenue has been appropriated in the annual Clean-Up Ordinance. However, with recent Council-directed limits on the size of the funding amounts that are allowed to proceed to the Clean-Up Ordinance, staff is requesting additional appropriations to match the total procurement cost of six replacement vehicles. Transfort intends to purchase six 35-foot CNG buses that will replace older model (1993 and 1996) bio-diesel vehicles that are currently in service, but exceed the Federal Transit Administration (FTA) useful life of twelve years. The approximate cost of each vehicle is $400,000. $1,920,000 or 80% of the total cost for all six vehicles is derived from a 2012-2015 CMAQ capital grant and the remaining $480,000 or 20% will come from a combination of State FASTER funding ($384,000 or 80% of the local match commitment) and Transit Fund Capital Reserves ($96,000). Any cost increases will be met from the Transit Capital Reserves. Projected Schedule Award of Contract to Vendor July 2012 35% Progress Payment Due December 2012 Delivery of Buses to Transfort March 2013 Contract Completion - Final Payment April 2013 COPY COPY COPY COPY July 17, 2012 -2- ITEM 19 FINANCIAL / ECONOMIC IMPACTS The Transit Capital Reserves Fund (Fund 290) is paying $96,000 or 4% of the total cost of the project. All remaining costs are being funded with Federal & State grants (competitive awards). 80% CMAQ $1,920,000 16% FASTER $ 384,000 4% Local Match $ 96,000 Previous Council actions (2010 BFO) appropriated $1,075,000 of CMAQ funds and $175,000 of local match. To complete the project, this Ordinance is requesting additional appropriations of $845,000 in CMAQ funding, $384,000 in FASTER funding and a reduction of $79,000 in the Local Match in order to meet the total project costs remaining of $1,150,000. Replacing older buses with new CNG buses will result in annual maintenance savings of $72,000 plus meaningful savings in fuel costs during periods of high oil prices. ENVIRONMENTAL IMPACTS The replacement of these older vehicles will reduce CO2 emissions by over 50% per vehicle. Specifically, these six CNG buses will have an annualized energy savings of 142.2 Annual Greenhouse Gas Reductions (tons CO2e) or 1,649 Annual Energy Savings (Millions BTU) compared to biodiesel vehicles. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION This item was not brought before the Transportation Board. ORDINANCE NO. 064, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE FROM THE COLORADO DEPARTMENT OF TRANSPORTATION AND THE FEDERAL TRANSIT ADMINISTRATION IN THE TRANSIT FUND FOR THE PURCHASE OF SIX BUSES WHEREAS, in 2011, the City was awarded $1,920,000 in Congestion Mitigation and Air Quality (CMAQ) capital funding that required a 20% local match of $480,000 for the Bus Replacement Project of $2,400,000; and WHEREAS, Council appropriated $1,075,000 of the CMAQ award and $175,000 in local match through the 2011-2012 Budget process leaving an $845,000 CMAQ award balance; and WHEREAS, this Ordinance will appropriate the remaining $845,000 CMAQ award balance; and WHEREAS, the Colorado Department of Transportation (“CDOT”) has awarded the City a CDOT FASTER grant in the amount of $384,000 that requires no local match; WHEREAS, both grant awards are to fund the purchase of six replacement Compressed Natural Gas (CNG) buses for Transfort’s fixed route service; and WHEREAS, the CDOT FASTER grant can be used as local match for the CMAQ grant and, therefore, reduces the City’s local match requirement by $79,000 from $175,000 to $96,000; and WHEREAS, this Ordinance will appropriate $1,150,000 as follows; and Balance of CMAQ grant award: $ 845,000 CDOT FASTER grant award: $ 384,000 Less: Local match requirement: ($ 79,000) Amount to be appropriated: $1,150,000 WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, not withstanding that such reserves were not previously appropriated; and WHEREAS, City staff has determined that the appropriation of the grant funds as described herein will not cause the total amount appropriated in the Transit Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from unanticipated grant revenue in the Transit Fund the sum of ONE MILLION ONE HUNDRED FIFTY THOUSAND DOLLARS ($1,150,000) for expenditure on the Bus Replacement Project. Introduced, considered favorably on first reading, and ordered published this 17th day of July, A.D. 2012, and to be presented for final passage on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk