Commission accepts VW settlement grant to buy 10 buses; staff warned of potential cost risks during 18‑month build

The Wausau Transit Commission voted to accept a Volkswagen settlement grant from the state of Wisconsin and authorize purchase of 10 buses, with the transit staff presenting cost estimates and fleet-need context.

Ron, transit department staff, said the vendor quote he received listed a baseline price of $601,700 per bus and that the grant provides up to $640,000 per bus, leaving a $38,000 cushion per vehicle. He told commissioners the bus build would begin roughly 18 months after order and said tariffs or supply changes could change final costs. "I panicked a bit because it said, you know, this could change and most likely will change with tariffs, because we're looking at okaying this today, and then the build starts, what, 18 months down the road," one commissioner said in the discussion; staff responded that the order could be adjusted later to reduce the number of buses if costs rose.

Staff described the agency's fleet as aging: two buses at 17 years old (one with more than 700,000 miles), eight buses at roughly 16 years with about 400,000 miles, six buses at about 14 years with roughly 300,000 miles, and seven buses from 2022 that are out of warranty and over 100,000 miles. Ron told the commission the fleet condition made the grant a timely opportunity and that there may not be another similar VW grant.

Commissioners asked whether other local funding could offset costs. Kathy, a transportation coordinating committee member, asked whether a county fund (noted in the meeting as $85.21 remaining in a particular account) could be used; staff said they would check with county contacts. Becky, a staff member, flagged the risk of going over grant limits and asked what the agency would do if vendor price increases exceeded the grant cap; staff said the order could be reduced if necessary.

The motion to accept the grant and proceed with purchase of 10 buses was moved and seconded on the floor and approved by voice vote. The transcript records the motion as "I make a motion to accept the grant for the 10 buses with the VW settlement" and records an "Aye" vote with no numeric tally recorded. The commission directed staff to bring required documents to the city's finance committee and common council for final approval.

Staff also noted Buy America requirements would apply to the procurement. The commission recorded no numeric vote counts in the transcript; the motion is recorded as approved by voice vote.