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HomeMy WebLinkAbout31. 17-273 MAY 23, 2017 17-273 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: SUPPORT GO TRANSIT'S APPLICATION FOR SECTION 5339(c) GRANT PROGRAM FUNDING FOR AN ELECTRIC SUS REPLACEMENT PROJECT INITIATED BY: TRANSPORTATION DEPARTMENT WHEREAS, the City of Oshkosh is a designated recipient of both federal assistance for mass transportation, as defined by 49 U.S.C. § 5307(a)(2), and state mass transit operating assistance program funds, as defined by Wisc. Stats. 85.20, and WHEREAS, the Federal Transit Administration (FTA) has been delegated authority to award Federal financial assistance for capital investments to support mass transportation, and WHEREAS, FTA is responsible for administering capital grants through the Section 5339(c) discretionary funding program, and WHEREAS, GO Transit has a bus replacement project which is eligible for funding according to the objectives of the Section 5339(c) program, and WHEREAS, the City has or will provide all required annual certifications and assurances to the Federal Transit Administration to receive grant funding through the Section 5339(c) program. NOW, THEREFORE, BE IT RESOLVED BY the Common Council for the City of Oshkosh that the proper City officials are hereby authorized and directed to submit information to the Federal Transit Administration required to apply for Section 5339(c) funding. BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to execute any and all documents required by the Wisconsin Department of Transportation, Bureau of Transit, Local Roads, Railroads and Harbors, for purposes of the same, and are further authorized and directed, if said grant is awarded, to accept such funds, pursuant to the terms of the grant application and that the Common Council will MAY 23, 2017 17-273 RESOLUTION CONT'D specifically authorize the required 20% local matching funds upon notification of the receipt of the award of the grant. MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Jim Collins, Director of Transportation DATE: May 10, 2017 RE: Resolution to Support GO Transit's Application for Section 5339(c) Grant Program Funding for an Electric Bus Replacement Project BACKGROUND This resolution will serve as a letter of support for a GO Transit capital grant application for the Low or No Emission grant program funds (Section 5339(c)). This discretionary funding program is administered by the Federal Transit Administration, with the intent of transitioning the nation's transit fleet to the lowest polluting and energy efficient vehicles. Previous awards under this program have primarily supported zero emission electric buses and fast -charging stations. ANALYSTS In the past, Federal funding has been available to cover 80 percent of the capital costs for transit vehicles and infrastructure projects. Increasingly, this Federal funding is being allocated through discretionary grant programs making it necessary for the City to pursue these opportunities in order to offset the local costs of capital investments. After reviewing our system's needs and researching projects which are eligible for funding through the grant program, transit staff have identified bus replacements as a good candidate. Based on the criteria listed, GO Transit included the replacement of one diesel bus with an electric bus. Electric buses now have a range of over 200 miles per day, which would meet GO Transit's needs and not require en route charging. The purchase price of a new electric bus is between $700,000 and $800,000. This is nearly $300,000 greater than the cost of a diesel bus. However, there are fuel and maintenance savings that offset the higher purchase cost over the life of the bus. In addition to the City of Oshkosh — Transportation Department electric bus, the application will also include the purchase of a charging station to be located within GO Transit's bus storage facility. This will allow the bus to be charged at night. The charging station would add an addition $40,000 to the application budget. FISCAL IMPACT If the FTA awards the project, the 80% federal share would be $672,000. The City will need to provide the local match. The 20% local match requirement would be $168,000. The resolution includes language whereby the Council authorizes this funding. Based on the timing of the grant, we plan on including this match requirement in the 2018 Capital Improvement Program. RECOMMENDATION This federal grant currently represents the best opportunity for the GO Transit to leverage local funding toward capital improvements that can benefit transit operations, I recommend approval of this resolution. Respectfully submitted, Jim Collins Director of Transportation City of Oshkosh — Transportation Department Approved: Mark A. Rohloff City Manager