Federal Transit Administration Low- or No-Emission Grant Application Copyrighted
July 5, 2017
City of Dubuque Consent Items # 15.
ITEM TITLE: Federal Transit Administration Low-or No-Emission Grant
Application
SUMMARY: City Manager recommending approval to submit a
$2,206,750 application to the Federal Transit
Administration Low-or No-Emission Grant Program to be
used toward replacement of 12 of the Jule Transit buses,
installation of a time-fill CNG station at the Dubuque
Metropolitan Area Solid Waste Agency that will capture
methane and convert it to vehicle fuel, and the necessary
investments in facilities and staff to maintain the new fleet.
RESOLUTION Authorizing the City Manager to submit an
application to the Federal Transit Administration Low- or
No-Emission Grant Program and to use budgeted funds
and private business financial commitments as the required
local match
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
FTA Low or No Emission Vehicle Grant Application- City Manager Memo
MVM Memo
Staff Memo Staff Memo
City Manager Commitment Letter Supporting Documentation
FTA Match Resolution Resolutions
THE CITY OF Dub
uq
ue
AI-A DUB E 1I1I1r
Masterpiece on the Mississippi' -2012Zao� .zo1
3
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Commitment of Local Match for FTA Low or No Emission Vehicle Grant
Application
DATE: June 25, 2017
Sustainable Community Coordinator Cori Burbach recommends City Council approval
to submit a $2,234,350 application to the Federal Transit Administration Low or No
Emission Grant Program to be used toward replacement of 12 of the Jule Transit buses,
installation of a time-fill CNG station at the Dubuque Metropolitan Area Solid Waste
Agency that will capture methane and convert it to vehicle fuel, and the necessary
investments in facilities and staff to maintain the new fleet. The grant requires a 15%
local match for acquiring vehicles and a 10% local match for supporting equipment and
facilities, for a total local match in the amount of $524,400. The total cost of this project
is $7,508,750, and the private partner contributions total $4,750,000.
The City funds are budgeted in Sustainability Education & Training (10072200 62360),
Minibus Maintenance (CIP 60053500), Radio Replacement (CIP 6002604), and Bus
Storage Facility Construction (CIPs 6002446 and 3602446).
Additional leveraged support can provide a more competitive application. The following
committed resources total an additional $3,906,000 in leveraged resources.
Additional Leverage(Non-Required)
Bus Storage Facility Construction (FY18 Transit CIP) $1,124,000
Purchase of 2 CNG dupal packer garbage trucks (FY19) $432,000
BioResource Development LLC (investment in WRRC) $2,000,000
Black Hills Energy(investment in WRRC) $350,000
Total Leverage $3,906,000
I concur with the recommendation and respectfully request Mayor and City Council
approval. J
1 r �1L�1#'L y ttrt�A&Znt.-
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Sustainable Community Coordinator
Jennifer Larson, Budget Director
Maurice Jones, Economic Development Director
John Klostermann, Public Works Director
Gus Psihoyos, City Engineer
William O'Brien, Water & Resource Recovery Center Manager
Candace Eudaley, Transit Director
Alexis Steger, Senior Budget Analyst
John Foster, Solid Waste Agency Administrator
Rick Dickinson, President & CEO, Greater Dubuque Development Corp.
Dave Lyons, Sustainable Innovation Consultant, Greater Dubuque Development
Corp.
2
THE CYOF Dubuque
D A§kE WmeficaCfty
UB
11111.1
Masterpiece o e Mississippi 2047-2012-2013
TO: Michael Van Milligen, City Manager
FROM: Cori Burbach, Sustainable Community Coordinator
SUBJECT: Commitment of Local Match for FTA Low or No Emission Vehicle Grant Application
DATE: June 23, 2017
INTRODUCTION
The purpose of this memo is to request City Council approval to submit an application to the Federal
Transit Administration (FTA) Low or No Emission Grant Program, and approve the resolution
committing to the required local match for the application.
BACKGROUND
The FTA Low or No Emission Grant Program provides competitive funding for the purchase of low or
no emission vehicles and related equipment or facilities necessary for maintenance, fueling, and
operations of those vehicles.
In 2013, the City Council adopted a goal of reducing community-wide greenhouse gases 50% below
2003 levels by 2030. The City Council has also prioritized improving local air quality as part of the
Sustainable Dubuque initiative.
Beginning in 2013, the City has partnered with local businesses to strategically leverage excess
methane at the Water & Resource Recovery Center (WRRC) and Dubuque Metropolitan Area Solid
Waste Agency (DMASWA), with the eventual goal of converting the methane to renewable
compressed natural gas ("BioCNG") that could be used in our own fleet. In 2015, the City became a
pilot for a fleet analysis conducted by the Iowa Clean Cities Coalition. By working with the Clean
Cities Coalition, we have begun to develop an alternative fuel fleet conversion strategy that will help
us to meet those goals. The Iowa Clean Cities Coalition has encouraged the City to apply for the
FTA Low or No Emission Grant Program, and is supporting the application process with technical
assistance.
DISCUSSION
The FTA grant program is available for vehicle replacement and investment in the facilities necessary
to operate the vehicles. The program requires an 85/15 match (85% federal funds; 15% local funds)
for acquiring vehicles and a 90/10 match (90% federal funds; 10% local funds) for supporting
equipment and facilities.
Twelve (12) of the Jule Transit 16 passenger buses meet the requirements for the grant, as do
several infrastructure improvements. While the full application is not yet complete, the executive
summary for the application is as follows:
The Dubuque, Iowa Jule transit fleet provides full public transportation services to the community's
58,000 residents. Based on data derived from the Smarter, Sustainable Dubuque initiative, route
redesign has resulted in a 28% increase in ridership in the last five years. Use of public transit is
helping to achieve the community's 50% reduction in greenhouse gases (GHG) target, below
2003 levels, by 2030, and the next step in achieving emission reduction and air quality goals is a
transformation of the fleet itself. Dubuque's proposal includes the replacement of 12 qualifying
public transit vehicles, installation of a time-fill CNG station at the Dubuque Metropolitan Area
Solid Waste Agency that will capture methane and convert it to vehicle fuel, and the necessary
investments in facilities and staff to maintain the new fleet.
The attached resolution indicates Council approval to request $2,234,350 in federal funds as part of a
total project cost of$7,508,750. Combined public and private local match totals $5,274,400.
FTA Low or No Emission Vehicle Grant Budget Total Cost Federal Grant Request Local Match-City Local Match-Partner
Line Item
12 CNG 16 passenger vehicles $1,740,000.00 $1,479,000.00 $261,000.00
CNGTime-Fill Station @ DMASWA* $5,030,000.00 $280,000.00 $4,750,000.00
Facility Improvements@ Bus Storage Facility&MSC $726,750.00 $465,750.00 $261,000.00
Workforce Training $12,000.00 $9,600.00 $2,400.00
$7,508,750.00 $2,234,350.00 $524,400.00 $4,750,000.00
*Includes$280,000 investmentfor slow-fill fueling station(FTA request)+infrastructure investments in pipeline and site to deliver fuel (local investment)
BUDGETIMPACT
Local match for the grant can include cash match and in-kind contributions, and can come from the
City of Dubuque or committed partner organizations. Proposed match sources total $524,400 in City
funds and $4,750,000 in private partner contributions:
City Required Match Sources
Employee education &training funds (Sustainability Operating
Budget) $2,400.00
Sales of 12 current 16 passenger vehicles $120,000
Maintenance of 12 vehicles for 3 years (Transit Maintenance
Budget) $115,000
Radios/equipment for 12 vehicles (FY18 Transit CIP) $26,000
Bus Storage Facility Construction (FY18 Transit Cl P) $261,000
$524,400
Private Required Match Sources
Bio Resource Development LLC(investment at DMASWA) $4,000,000
Black Hills Energy (investment at DMASWA+ pipeline
improvements) $750,000
$4,750,000
Total Match $5,274,400
2
The City funds above are budgeted in Sustainability Education & Training (10072200 62360), Minibus
Maintenance (CIP 60053500), Radio Replacement (CIP 6002604), and Bus Storage Facility
Construction (CIPs 6002446 and 3602446).
Additional leveraged support can provide a more competitive application. The following committed
resources total an additional $3,906,000 in leveraged resources.
Additional Leverage (Non-Required)
Bus Storage Facility Construction (FY18 Transit CIP) $1,124,000
Purchase of 2 CNG dupal packer garbage trucks (FY19) $432,000
Bio Resource Development LLC(investment in WRRC) $2,000,000
Black Hills Energy (investment in WRRC) $350,000
Total Leverage $3,906,000
REQUESTED ACTION
I respectfully request City Council approval of the attached resolution committing local match in the
amount of$524,400, and authorization of the City Manager to submit a grant request totaling
$2,234,350 to the FTA Low or No Emission Grant Program.
cc: Candace Eudaley, Transit Manager
John Klostermann, Public Works Director
Jenny Larson, Budget Director
Alexis Steger, Assistant Budget Director
Maurice Jones, Economic Development Director
Dave Lyons, Greater Dubuque Development Corporation
3
THE CITY OF Dubuque City Manager's Office
50 West 1311 Street
R �—'+ � Dubuque, IA 52001-4864
DUB H 11-IMedcaClY %mm..cityofdubuque.org
L IIII
Masterpiece on the Mississippi 2007.2012•2013
Tara Clark
FTA Program Manager
Federal Transit Administration
1200 New Jersey Ave. SE
Washington, DC 20590
June 23, 2017
Dear Ms. Clark,
This letter is to confirm that the attached resolution will be submitted for City Council
approval on their July 5, 2017 Council agenda. All of the City capital and operating
funds identified as local match were approved for the described use as part of the
FY 2018 budget, which was adopted by the City Council on March 13, 2017. Therefore,
the resolution will simply reaffirm the City Council's commitment to the Jule Public
Transit Fleet Transition to Renewable Compressed Natural Gas application.
If you have any questions, please do not hesitate to contact me at 563-589-4110 or
ctymgr(ccityofdu bugue.org.
Sincerely,
Mich eC. Van Milligent�
City Manager
RESOLUTION NO. 237-17
A RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION
TO THE FEDERAL TRANSIT ADMINISTRATION LOW OR NO EMISSION GRANT
PROGRAM AND TO USE BUDGETED FUNDS AND PRIVATE BUSINESS FINANCIAL
COMMITMENTS AS THE REQUIRED LOCAL MATCH.
Whereas, the Federal Transit Administration (FTA) provides funding for the Low or
No Emission Bus Discretionary Grant Program to be used for the purchase of low or no
emission vehicles and the related equipment and facilities needed to support those
vehicles; and
Whereas, the FTA grant program requires an 85/15 match (85% federal funds;
15% local funds) for acquiring vehicles and a 90/10 match (90% federal funds; 10% local
funds) for supporting equipment and facilities; and
Whereas, the City Council has directed staff to pursue the development of
renewable natural gas supplies ("BioCNG") at the Dubuque Metropolitan Area Solid
Waste Agency (DMASWA) and Water & Resource Recovery Center and the conversion
of fleet to alternative fuel sources as part of an overall strategy to meet its 50% by 2030
greenhouse gas reduction and air quality improvement goals.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IA:
Section 1. That the City Council of the City of Dubuque, Iowa, hereby authorizes
the City Manager to submit an application to the FTA Low or No Emission Grant Program
for the purchase of twelve (12) Jule Transit buses, installation of a time -fill CNG fueling
station at the DMASWA, and improvements to the Jule bus storage facility and Municipal
Services Center facility necessary to house and service the vehicles for a total federal
grant request of $2,234,350.
Section 2. The City Council also agrees to provide the local required match as
committed in the full application in the amount of $524,400. An additional $4,750,000
commitment has been secured from private sector partners investing in the project.
Section 3. The City also agrees to be responsible for adequately maintaining and
operating the buses through staff training and maintenance level budgeting.
Section 4. The City Manager is authorized to sign, on behalf of the City Council,
the application for the FTA grant.
Passed, approved, and adopted this 5th day of July, 2017.
Attest:
Kevin S. Firnstafil, i y Clerk