Fiscal Note
The proposed resolution amends the adopted 2019 capital budget for Fleet Service by accepting the grant award from the Wisconsin PSC Energy Innovation Grant Program in the amount of $129,300 of state funding and $10,000 of private contribution funding from MG&E to assist in the purchase of 20 electric vehicles. The grant award will be assigned to Fleet Service's capital program for Fleet Equipment Replacement (MUNIS 17060), adding to the $7.3 million of GO Borrowing budget authority adopted in 2019.
MUNIS:
12528-41-150 - $139,300
12528-41-601 - $(10,000)
12528-41-220 - $(129,300)
Title
Approving the City of Madison’s application to the Wisconsin Public Service Commission’s (PSC) Energy Innovation Grant Program to help purchase 20 plug-in electric vehicles for the City Fleet; indemnifying the State of Wisconsin; authorizing the Mayor and City Clerk to execute the associated grant agreement with the PSC; and, accepting the grant award and amending the 2019 adopted capital budget to add $129,300 of state funding and $10,000 of private contribution funds to the budget of the Fleet Services Division.
Body
WHEREAS the Wisconsin Public Service Commission recently awarded the City of Madison’s Fleet Services Division a grant in the amount of $129,300 to cover the incremental costs of purchasing 20 full plug-in electric vehicles (EVs) to replace municipal fleet sedans aging out of service; and,
WHEREAS Madison Gas & Electric (MGE), a partner to the City’s application, has contributed $10,000 in matching funds to cover the cost of Level 2 chargers to fuel the City EVs; and,
WHEREAS the purchase of 20 EVs for the City Fleet will:
• Save $174,000 in fuel and $130,000 in maintenance costs over the 10-year EV service life;
• Advance transition of Madison’s fleet to renewable fuels;
• Accelerate community-wide EV market penetration by
o Providing an example to other fleet operators, businesses and residents
o Contributing to the area charging infrastructure, and
o Training fleet technicians and automotive students in EV Maintenance;
• Transition from gasoline to clean fuel with zero emissions;
• Improve air quality; and,
• Comply with Madison City Council goals of transitioning to 100% renewable energy.
WHEREAS at present, sedan-sized EVs are rapidly entering the market and becoming a reliable, cost-effective alternative; and,
WHEREAS annually within the City fleet, over 40 sedan-class vehicles age out of service, providing opportunity, if funding allows, to transition a significant ratio of this class of Fleet vehicles to EVs; and,
WHEREAS with the help of an earlier grant the City purchased 3 EVs now being used in the City pool, by Metro staff, and by Water Utility staff, and these vehicles have proven to be dependable and cost-effective; and,
WHEREAS APM 1-1 requires Common Council approval before the City can agree to indemnify another party in a contract, and Article 3 of the Agreement requires the City to indemnify and hold harmless the State of Wisconsin/Office of Energy Innovation from claims arising from actions related to this project, including injuries or damage to persons or property resulting from the City or its agent’s or subcontractor’s performance of work under the Grant agreement, and the City Attorney and Risk Manager have reviewed this language and can approve the indemnification for these purposes;
NOW, THEREFORE, BE IT RESOLVED that the Fleet Services Manager is authorized to execute and file an application for capital assistance from the PSC’s Energy Innovation Grant program on behalf of the City of Madison; that the 2019 adopted capital budget be amended to add $129,300 of awarded federal funding and another $10,000 in private contributions from MGE; and,
BE IT FINALLY RESOLVED that the City of Madison is authorized to indemnify the State of Wisconsin/Office of Energy Innovation from claims arising from this project, and that Mayor and City Clerk are authorized to execute a grant agreement with the Public Service Commission of Wisconsin, Office of Energy Innovation, representing the State of Wisconsin, for receipt and use of these funds.