City of Madison, Wisconsin | Legislative Information Center
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File #: 62710    Version: 1 Name: VW Grant app 2nd round
Type: Resolution Status: Passed
File created: 10/16/2020 In control: Metro Transit
On agenda: 1/5/2021 Final action: 1/5/2021
Enactment date: 1/11/2021 Enactment #: RES-21-00031
Title: Authorizing the Transit General Manager to enter into an agreement with the State of Wisconsin and required terms to accept the Volkswagen Mitigation Program/Transit Capital Assistance Grant Program Award of funds not to exceed $7,522,500 to purchase 15 replacement diesel buses and dispose of the corresponding older fleet in 2022.
Sponsors: Keith Furman, Grant Foster
Attachments: 1. 62710 Amendment D 12.pdf, 2. 12.09.20 Public Comment-Registrants Final Report ITEM 2_Redacted.pdf
Fiscal Note
The proposed resolution authorizes Metro Transit to enter into an agreement with the State of Wisconsin to accept funds from the Volkswagen Mitigation Program/Transit Capital Assistance Grant Program. The maximum grant amount of $7,522,500 would be used to replace 15 diesel buses in 2022.
Acceptance of these funds will require the City to take a reduction in shared revenues from the State in an amount equal to 75% of the grant received. This reduction would be spread equally over 10 years starting the fiscal year following the grant payment. If the maximum grant amount is received in 2023, the City’s shared revenues would be reduced by $564,000 each year from 2024 to 2033. The City is paying back the previous grant award through this program starting in 2021 with a $360,000 shared revenue reduction that will continue through 2030.
Shared revenue is a General Fund revenue source and the loss of this revenue may require expenditure reductions or increases in other revenue sources. Funds from this grant would reduce the number of buses purchased through GO Borrowing, which is ultimately paid back fully through local funds, reducing Metro’s overall debt.
Title
Authorizing the Transit General Manager to enter into an agreement with the State of Wisconsin and required terms to accept the Volkswagen Mitigation Program/Transit Capital Assistance Grant Program Award of funds not to exceed $7,522,500 to purchase 15 replacement diesel buses and dispose of the corresponding older fleet in 2022.
Body
WHEREAS Volkswagen Group of America admitted to violating the federal Clean Air Act from 2009 - 2016 by selling diesel engine vehicles designed to cheat on federal emissions tests; and,

WHEREAS Volkswagen partially settled its civil liability for these violations by entering into judicial consent decrees requiring the company to pay over $2.9 billion into an Environmental Mitigation Trust Fund; and,

WHEREAS the State of Wisconsin, a designated beneficiary of th...

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