HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/17/2019 - ITEMS RELATING TO PURCHASE OF VEHICLESAgenda Item 1
Item # 1 Page 1
AGENDA ITEM SUMMARY December 17, 2019
City Council
STAFF
Kaley Zeisel, Transfort Capital Planning/Grant Compliance Mgr
Drew Brooks, Director of Transit
Chris Van Hall, Legal
SUBJECT
Items Relating to Purchase of Vehicles.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 141, 2019, Appropriating Unanticipated Grant Revenue from the
Volkswagen Settlement Funds for the Purchase of Two Electric Vehicles to Replace End of Life Diesel
Vehicles and Associated Charging Equipment.
B. Second Reading of Ordinance No. 142, 2019, Appropriating Unanticipated Grant Revenue from the
Volkswagen Settlement Funds for the Purchase of Three Alternative Fuel Body-on-Chassis Style Buses.
The purpose of this item is to appropriate unanticipated grant revenue awarded to Transfort through the Clean
Air Act Settlement program administered by Colorado Department of Public Health and Environment (CDPHE)
and to reappropriate lapsing funds. Transfort was awarded funding through CDOT’s Consolidated Call for
Capital Projects in 2018 for the purchase of a total of five alternatively fueled vehicles and two depot chargers.
Settlement funds can be used to cover 110% of the incremental cost of purchasing an alternatively fueled
vehicle compared with a new diesel vehicle. Transfort plans to replace two end-of-life diesel revenue transit
buses with two new zero-emission vehicles (ZEV), purchase two depot chargers, and replace three end-of-life
diesel cutaway buses with three alternative fuel vehicles. Settlement funds do not require a local match.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, December 3, 2019 (w/o attachments) (PDF)
2. Ordinance No. 141, 2019 (PDF)
3. Ordinance No. 142, 2019 (PDF)
Agenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY December 3, 2019
City Council
STAFF
Kaley Zeisel, Transfort Capital Planning/Grant Compliance Mgr
Drew Brooks, Director of Transit
Chris Van Hall, Legal
SUBJECT
Items Relating to Purchase of Vehicles.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 141, 2019, Appropriating Unanticipated Grant Revenue from the Volkswagen
Settlement Funds for the Purchase of Two Electric Vehicles to Replace End of Life Diesel Vehicles and
Associated Charging Equipment.
B. First Reading of Ordinance No. 142, 2019, Appropriating Unanticipated Grant Revenue from the Volkswagen
Settlement Funds for the Purchase of Three Alternative Fuel Body-on-Chassis Style Buses.
The purpose of this item is to appropriate unanticipated grant revenue awarded to Transfort through the Clean
Air Act Settlement program administered by Colorado Department of Public Health and Environment (CDPHE)
and to reappropriate lapsing funds. Transfort was awarded funding through CDOT’s Consolidated Call for Capital
Projects in 2018 for the purchase of a total of five alternatively fueled vehicles and two depot chargers.
Settlement funds can be used to cover 110% of the incremental cost of purchasing an alternatively fueled vehicle
compared with a new diesel vehicle. Transfort plans to replace two end-of-life diesel revenue transit buses with
two new zero-emission vehicles (ZEV), purchase two depot chargers, and replace three end-of-life diesel
cutaway buses with three alternative fuel vehicles. Settlement funds do not require a local match.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
Volkswagen Group of America and certain related entities (collectively Volkswagen or VW) have admitted that
they violated the federal Clean Air Act from 2009 to 2016 by selling vehicles with diesel engines that emitted
more air pollution than the Clean Air Act allows and by cheating on federal emission tests to hide the excess
pollution. VW partially settled its civil liability for these violations of the Clean Air Act by entering two judicial
consent decrees which required VW to pay more than $2.9 billion into an environmental mitigation trust fund, to
be administered by an independent trustee. In Colorado, these funds are overseen by CDPHE and CDOT.
Eligible transit agencies were able to apply, through a competitive process, for these Settlement Funds to replace
diesel vehicles with alternative fueled vehicles.
To better align with the City’s Climate Action Plan goal of becoming carbon neutral by 2050, Transfort began
pursuing funding to replace rolling stock vehicles past their useful life with alternative fuel vehicles. In 2018
Transfort was awarded Congestion Mitigation and Air Quality (CMAQ) funding in the amount of $775,000 by the
North Front Range Metropolitan Planning Organization (NFRMPO) for the purchase of one (1) ZEV and one (1)
charging unit. These funds, along with a local match of $105,000, were appropriated in the 2019/2020 Budget
ATTACHMENT 1
Agenda Item 4
Item # 4 Page 2
in a lapsing business unit. Due to the timing of the awarding of additional funding, the purchase for this offer will
be delayed until 2020; thereby necessitating the re-appropriation of this $880,000 to a non-lapsing business unit.
Transfort applied for Settlement funds in 2018 leveraging these previously awarded CMAQ funds in order to
purchase two (2) ZEVs and two (2) depot chargers. There is no local matching requirement for Settlement Funds.
Transfort will purchase these ZEVs and depot chargers from an existing state purchasing schedule. This
procurement method will meet all federal and state purchasing guidelines while expediting the process. In
conjunction with Operation Services, Transfort has already begun the planning and engineering design process
to upgrade the Transfort Maintenance and Operations Facility’s (TMF) electrical infrastructure in order to
accommodate the electricity demands of depot charging.
EV manufacturers have indicated to Transfort that manufacturing times are currently estimated at 12 - 18 months
from time of order. With the goal of executing a contract with a vendor by December 2020, Transfort would
expect to see delivery of its first revenue rolling stock EVs by second or third quarter of 2022.
Transfort was also awarded FASTER (Funding Advancements for Surface Transportation and Economic
Recovery Act of 2009) funding in 2018 in the amount of $197,220 by CDOT to be used to purchase three (3)
cutaway style vehicles. This award is for the “guaranteed” amount of FASTER funding that Transfort receives
from CDOT each year; therefore, the award amount and local match has been budgeted and is in place in the
current Transfort budget in a non-lapsing business unit. Transfort applied for Settlement funds in 2018 leveraging
the “guaranteed” amount of FASTER funding that Transfort receives from CDOT each year in order to upgrade
the replacement vehicles from diesel fuel to alternative fuel (propane). There is no local matching requirement
for Settlement Funds. These vehicles are leased to Transfort’s fixed route service contractor to provide service
for Route 33 and the late-night Gold Route.
Transfort will meet all federal and state purchasing guidelines in the procurement of these vehicles and expects
to be able to execute a contract by 3rd quarter of 2020, with expected delivery of vehicles in mid-2021. There are
multiple propane fueling stations available throughout Fort Collins; therefore, Transfort does not anticipate a risk
with contractors having convenient access to fuel.
Settlement Funds stipulate that the end of life diesel vehicles being replaced are scrapped, which includes cutting
the frame rails in half and drilling a three-inch (3”) hole through the engine block. This ensures the air quality
improvements that are pivotal to the funding program are realized, as the vehicles will no longer be drivable.
Transfort has a plan in place for scrapping all five (5) identified vehicles.
CITY FINANCIAL IMPACTS
The following is a summary of the project funding and estimated budgets:
Project 1: ZEV Purchase and Associated Charging Infrastructure
Prior Appropriated Lapsing Funds (19/20 BFO - Offer 45.11)
Prior Appropriated Federal Funds (CMAQ Grant) $775,000
Prior Appropriated Local Matching Funds $105,000
Total Prior Lapsing Appropriation $880,000
Prior Appropriated Non-Lapsing Funds
Prior Appropriated CCIP funds $25,012
Funds to be Appropriated with this Action
Settlement Funds to be Appropriated - ZEVs $937,640
Settlement Funds to be Appropriated - Chargers $200,000
Total Funds to be Appropriated per this Action $1,137,640
Agenda Item 4
Item # 4 Page 3
Total Current Project Funding $2,042,652
Estimated Project Budget Price, Each Ext Price
2x 35’ Zero-Emission Transit Buses $875,911 $1,751,822
2x 150 kWh sequential depot chargers $145,415 $290,830
Total Current Project Budget $2,042,652
Project 2: Alternative Fuel Cutaway Purchase
Prior Appropriated Non-Lapsing Funds (19/20 BFO)
Prior Appropriated State Funds (FASTER) $197,220
Prior Appropriated Local Matching Funds $49,308
Total Prior Appropriation $246,528
Funds to be Appropriated with this Action
Settlement Funds to be Appropriated - Cutaways $116,268
Total Funds to be Appropriated per this Action $116,268
Total Current Project Funding $362,796
Estimated Project Budget Price, Each Ext Price
3x Cutaway Vehicle $120,932 $362,796
Total Current Project Budget $362,796
ATTACHMENTS
1. Scope of Work-Two Electric Bus Settlement and Chargers (draft) (PDF)
2. Scope of Work Settlement Cutaway Vehicles (draft) (PDF)
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ORDINANCE NO. 141, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED GRANT REVENUE FROM THE
VOLKSWAGEN SETTLEMENT FUNDS FOR THE PURCHASE OF
TWO ELECTRIC VEHICLES TO REPLACE END OF LIFE DIESEL
VEHICLES AND ASSOCIATED CHARGING EQUIPMENT
WHEREAS, Volkswagen Group of America and certain related entities (collectively,
“Volkswagen” or “VW”) have admitted that they violated the federal Clean Air Act from 2009 to
2016 by selling vehicles with diesel engines that emitted more air pollution than the Clean Air Act
allows and by cheating on federal emission tests to hide the excess pollution; and
WHEREAS, VW partially settled its civil liability for these violations of the Clean Air Act
by entering into two judicial consent decrees which required VW to pay more than $2.9 billion
into an environmental mitigation trust fund to be administered by an independent trustee (the
“Settlement Funds”); and
WHEREAS, in Colorado, such Settlement Funds are overseen by Colorado Department of
Public Health and Environment (“CDPHE”) and Colorado Department of Transportation
(“CDOT”) and eligible transit agencies were able to apply for the Settlement Funds through a
competitive process; and
WHEREAS, Transfort applied to receive Settlement Funds by leveraging previously
awarded Congestion Mitigation and Air Quality (“CMAQ”) grant funds in the amount of $775,000
and previously appropriated local matching funds in the amount of $105,000 to purchase two new
zero-emission vehicles (“ZEV”) and depot chargers; and
WHEREAS, Transfort was awarded $1,137,640 in Settlement Funds toward the two ZEVs
and depot chargers and this Ordinance will appropriate the funds related to the acquisition of the
two ZEVs and depot chargers into a non-lapsing fund to be used to acquire the two ZEVs and
depot chargers; and
WHEREAS, the City Charter provides that all appropriations unexpended or
unencumbered at the end of the fiscal year shall lapse to the applicable general or special fund,
except that appropriations for capital projects shall not lapse until the completion of the capital
project; and
WHEREAS, the abovementioned CMAQ funds and local matching funds for the ZEV and
depot chargers were previously appropriated in the 2019/2020 Budgeting For Outcomes process
into a fund that will lapse at the end of this year and so this Ordinance will also re-appropriate
these previously appropriated funds into a non-lapsing capital fund to be used to acquire the two
ZEVs and depot chargers; and
WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of
Fort Collins and serves the public purpose of providing low-emission public transportation to
citizens of Fort Collins.
-2-
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, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the Transit
Services Fund and will not cause the total amount appropriated in the Transit Services Fund to
exceed the current estimate of actual and anticipated revenues to be received in that fund during
any fiscal year; and
WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to
transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof
from one fund or capital project to another fund or capital project, provided that the purpose for
which the transferred funds are to be expended remains unchanged; the purpose for which the
funds were initially appropriated no longer exists; or the proposed transfer is from a fund or capital
project in which the amount appropriated exceeds the amount needed to accomplish the purpose
specified in the appropriation ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from unanticipated revenue in the Transit
Services Fund the sum of ONE MILLION ONE HUNDRED THIRTY-SEVEN THOUSAND SIX
HUNDRED FORTY DOLLARS ($1,137,640) for expenditure in the Transit Services Fund for the
purchase of two zero emission buses and associated charging infrastructure.
Section 3. That the unexpended appropriated amount of EIGHT HUNDRED EIGHTY
THOUSAND DOLLARS ($880,000) in a lapsing business unit within the Transit Services Fund
is authorized for transfer to a non-lapsing business unit within the Transit Services Fund and
appropriated therein for expenditure for the purchase of two zero emission buses and associated
charging infrastructure.
-3-
Introduced, considered favorably on first reading, and ordered published this 3rd day of
December, A.D. 2019, and to be presented for final passage on the 17th day of December, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 17th day of December, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 142, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED GRANT REVENUE FROM THE
VOLKSWAGEN SETTLEMENT FUNDS FOR THE PURCHASE OF
THREE ALTERNATIVE FUEL BODY-ON-CHASSIS STYLE BUSES
WHEREAS, Volkswagen Group of America and certain related entities (collectively,
“Volkswagen” or “VW”) have admitted that they violated the federal Clean Air Act from 2009 to
2016 by selling vehicles with diesel engines that emitted more air pollution than the Clean Air Act
allows and by cheating on federal emission tests to hide the excess pollution; and
WHEREAS, VW partially settled its civil liability for these violations of the Clean Air Act
by entering into two judicial consent decrees which required VW to pay more than $2.9 billion
into an environmental mitigation trust fund to be administered by an independent trustee (the
“Settlement Funds”); and
WHEREAS, in Colorado, such Settlement Funds are overseen by Colorado Department of
Public Health and Environment (“CDPHE”) and Colorado Department of Transportation
(“CDOT”) and eligible transit agencies were able to apply for the Settlement Funds through a
competitive process; and
WHEREAS, Transfort was previously awarded $197,220 in Funding Advancements for
Surface Transportation and Economic Recovery Act of 2009 (“FASTER”) funds for three cutaway
style buses and there is currently an appropriated local match of $49,308 for that purchase; and
WHEREAS, the City leveraged the previously awarded FASTER funds to apply for
Settlement Funds and was awarded $116,268 to upgrade the cutaway buses from diesel fuel to
propane; and
WHEREAS, these alternative fuel cutaway buses are leased to Transfort’s fixed route
service contractor to provide service for Route 33 and the late-night Gold Route; and
WHEREAS, this Ordinance will appropriate the $116,268 in Settlement Funds for the
alternative fuel cutaway buses; and
WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of
Fort Collins and serves the public purpose of providing alternate fuel public transportation to
citizens of Fort Collins.
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, the City Manager has recommended the appropriation described herein and
-2-
determined that this appropriation is available and previously unappropriated from the Transit
Services Fund and will not cause the total amount appropriated in the Transit Services Fund to
exceed the current estimate of actual and anticipated revenues to be received in that fund during
any fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from unanticipated revenue in the Transit
Services Fund the sum of ONE HUNDRED SIXTEEN THOUSAND TWO HUNDRED SIXTY-
EIGHT DOLLARS ($116,268) for expenditure in the Transit Services Fund for the purchase of
three alternative fuel chassis-on-body style buses.
Introduced, considered favorably on first reading, and ordered published this 3rd day of
December, A.D. 2019, and to be presented for final passage on the 17th day of December, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 17th day of December, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk