Video footage of the incident taken by one of the officers showed Fugle in the big yellow digger, banging its bucket on the ground in an intimidating manner.
The footage also captured Fugle swinging the digger bucket over the vehicles where the officers were standing.
Fugle appealed against his sentence on the grounds that it was inappropriate and excessive.
Defence lawyer Paul Murray argued the offending occurred in the heat of the moment, resulting in a single collision with the council vehicle which was merely a glancing impact, although still causing considerable damage.
But in a judgment released today, Justice Brendan Brown said Fugle's offending was not merely momentary, and instead involved an escalating situation, in which there were a number of opportunities available to take an alternative course of action.
The judgment said the sentencing clearly reflected the high level of recklessness
that Fugle's conduct involved.
"We do not consider there was any material error in the judge's reasoning or that the sentence could be said to be manifestly excessive in the circumstances," Justice Brown said.