HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/18/2020 - RESOLUTION 2020-020 AUTHORIZING THE EXECUTION OF TAgenda Item 16
Item # 16 Page 1
AGENDA ITEM SUMMARY February 18, 2020
City Council
STAFF
Kaley Zeisel, Transfort Capital Planning/Grant Compliance Mgr
Claire Havelda, Legal
SUBJECT
Resolution 2020-020 Authorizing the Execution of Two Intergovernmental Agreements between the City of Fort
Collins and the Colorado Department of Transportation for the Award of Settlement Funds.
EXECUTIVE SUMMARY
The purpose of this item is to authorize the execution of two intergovernmental agreements (IGAs) with the
Colorado Department of Transportation (CDOT). These agreements will result in the receipt of two
Volkswagen settlement fund awards that were applied for, and awarded, 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 do not require a local match. The incoming funds for both awards were appropriated through
Ordinance No. 141, 2019, and Ordinance No. 142, 2019.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
Volkswagen Group of America and certain related entities (collectively Volkswagen or VW) have admitted that
it 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 the Colorado
Department of Public Health and Environment 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.
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 was awarded $1,137,640 in settlement funds to purchase two Zero Emission Vehicles (ZEVs) and
associated charging equipment. These funds will be used in conjunction with previously awarded federal
funds. Transfort was also awarded $116,268 in settlement funds to purchase three alternatively fueled cutaway
style vehicles. These funds will be used in conjunction with previously awarded state funds.
CITY FINANCIAL IMPACTS
There are no financial impacts to consider as there is no local match requirement for settlement funds.
Incoming award funds were appropriated through Ordinance No. 141, 2019, and Ordinance No. 142, 2019.
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RESOLUTION 2020-020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION OF TWO INTERGOVERNMENTAL AGREEMENTS
BETWEEN THE CITY OF FORT COLLINS AND THE COLORADO DEPARTMENT OF
TRANSPORTATION FOR THE AWARD OF SETTLEMENT FUNDS
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, the City has been awarded two grants of the Settlement Funds through this
competitive process: one grant in the amount of $1,137,640 to be used towards two new zero-
emission buses and depot chargers and one grant in the amount of $116,268 to be used towards
upgrading three cutaway style buses from diesel fuel to propane; and
WHEREAS, CDOT is requiring the City to enter into an intergovernmental agreement
for each grant of the Settlement Funds that will outline the terms and conditions of the City’s use
of the Settlement Funds (the “IGAs”); and
WHEREAS, the City Council has determined that it is in the best interests of the City that
the City enter into the IGAs for portions of the Settlement Funds because it serves the public
interest of providing low-emission public transportation to citizens of Fort Collins and the Mayor
is authorized to execute the IGAs between the City and CDOT in support thereof.
NOW, THEREFORE, BE IT RESOLVED 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 the Mayor is hereby authorized to enter into the IGAs, in
substantially the forms attached hereto as Exhibit “A” and Exhibit “B”, together with such
additional terms and conditions as the City Manager, in consultation with the City Attorney,
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determines to be necessary and appropriate to protect the interests of the City or to effectuate the
purposes of this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
18th day of February, A.D. 2020.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
EXHIBIT A
EXHIBIT B