HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/17/2012 - ITEMS RELATING TO THE PURCHASE OF SIX 35-FOOT COMPDATE: 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
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.
RESOLUTION 2012-051
OF THE COUNCIL OF THE CITY OF FORT COLLINS
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
WHEREAS, in 2011, the City was awarded $1,920,000 in Congestion Mitigation and Air
Quality capital funding from the Federal Highway Administration for the purpose of enabling the
City to purchase six 35-foot compressed natural gas (“CNG”) buses for Transfort's fleet; and
WHEREAS, recently the City was also awarded a "FASTER" grant from the Colorado
Department of Transportation (“CDOT”) in the amount of $384,000 for the purpose of covering
80% of the required $400,000 local match to purchase the buses; and
WHEREAS, the City, utilizing Transit fund capital reserves, will fund the remaining balance
of the local match in the amount of $96,000; and
WHEREAS, the City Council has determined that the purchase of the buses is in the best
interests of the City both from an operational and environmental standpoint; and
WHEREAS, in order to obtain the agreed-upon grant from CDOT, it is necessary for the City
to enter into a intergovernmental agreement establishing the terms and conditions for the grant, the
form of which is on file in the Office of the City Clerk and available for public inspection (the
“IGA”); and
WHEREAS, the City is authorized to enter into intergovernmental agreements, such as a
grant agreement, to provide any function, service or facility, under Article II, Section 16 of the
Charter of the City of Fort Collins and Section 29-1-203, C.R.S.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Mayor is hereby authorized to execute an intergovernmental agreement between
the City and CDOT for the completion of a "FASTER" grant from CDOT, consistent with the terms
of this Resolution and the form of the IGA on file in the Office of the City Clerk, subject to such
modifications or additional terms and conditions as the City Manager, in consultation with the City
Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate
the purpose of this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 17th
day of July, A.D. 2012.
Mayor
ATTEST:
City Clerk
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