Fiscal Note
The proposed resolution authorizes a U.S. Department of Transportation grant to purchase hybrid buses and related equipment. The grant award totals $17.4 million and requires a local match of $3.14 million. Metro Transit plans to use existing budget authority and amounts planned in the 2026 capital improvement plan within its Transit Buses and Charging Equipment capital program to support the grant. No additional appropriation required.
Title
Authorizing the Transit General Manager to file an application for a Section 5339 Low-No Emission Grant with U.S. Department of Transportation and authorizing the Mayor and the City Clerk to execute the associated grant agreement with USDOT, the associated sole source agreements with the project partners, Center for Transportation and the Environment (CTE) and Transit Resource Center (TRC) and execute the required 13 (c) agreement with Teamsters Local No. 120.
Body
The Low or No Emission Competitive program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction, and leasing of required supporting facilities. Under 49 U.S.C. 5339 (c)/ Infrastructure Investment and Jobs Act Section 30017, $1.15 billion in funds were made available for this program. The City of Madison was awarded $17,432,700 to purchase 16 hybrid 40’ buses and related equipment to replace older, inefficient and maintenance-prone buses beyond their useful life. CTE assisted with the grant application and will provide project management and technical assistance for our project and TRC will handle the manufacturing inspections and Federal Buy America Audits.
WHEREAS, The United States Department of Transportation recently awarded the City of Madison’s Metro Transit Division a highly competitive Low or No Emission grant to support the deployment of hybrid buses and related equipment to improve efficiency by replacing maintenance-prone buses beyond their useful life; and
WHEREAS, under this grant award, City of Madison will partner with Center for Transportation and the Environment (CTE) and Transit Resource Center (TRC) for their knowledge and expertise in project management, technical acumen and necessary equipment and execute sole source agreements based on our grant application and budget; and
WHEREAS, Resolution 88751 passed on July 1, 2025 Supporting Madison Metro's Section 5339b and 5339c Low or No Emission Grant Applications to Federal Transit Administration for hybrid-electric buses, charging infrastructure and related equipment, the City of Madison would provide the match funds required, up to $5M as already planned in the 2026 CIP indicated that “if the Federal Transit Administration awards the City of Madison a grant of up to $26 million for hybrid-electric buses, charging infrastructure and related equipment, the City of Madison would provide the match funds required, up to $5M”; and
WHEREAS, as a condition of the assistance, the City of Madison must provide all annual certifications and assurances required by FTA and negotiate an agreement relating to the protection of mass transit
employees under the provisions of Section 5333(b), formerly Section 13 (c) of the Federal Transit Act, as amended; and
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF MADISON:
1. That the Transit General Manager is authorized to execute and file applications for capital assistance for the Low or No Emission Grant program on behalf of the City of Madison with FTA for Federal assistance authorized by 49 U.S.C. 5339 (c)/Infrastructure Investment and Jobs Act Section 30017, or other Federal Statutes authorizing the above-mentioned projects set forth in the preamble and administered by FTA.
2. City of Madison will partner with Center for Transportation and the Environment (CTE), and Transit Resource Center (TRC) for their knowledge and expertise in project management, technical acumen and necessary equipment and execute sole source agreements based on our grant application and budget.
3. That the Mayor and City Clerk are authorized to execute grant agreements for the aforementioned
applications.
4. That the Mayor and City Clerk are authorized to execute agreements pursuant to Section 5333 (b)
under the Federal Transit Act, as amended, between the City of Madison, Wisconsin and Drivers,
Salesmen, Warehousemen, Milk Processors, Cannery, Dairy Employees and Helpers Union Local
120, affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and
Helpers of America, with reference to this grant application.