Item 6-E
Council Meeting: 4/14/98 Santa Monica, CA
TO: Mayor and Councilmembers
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Execute
Three-Year Lease Agreements for Eight (8) Electric
Vehicles and Notify Council of an Exception to
Resolution No. 8966 (CCS).
Introduction
This report recommends that the City execute three-year lease
agreements with the following vendors to acquire eight electric
vehicles for use by various City divisions. The vendors are the
sole providers of each vehicle type.
1. Two (2) leases with General Motors Acceptance Corporation
(GMAC) for one (1) 1998 Saturn EV1 passenger car and one (1)
1998 Chevrolet S10 Electric Pick-up truck.
2. Two (2) leases with American Honda Finance Corporation for
two (2) 1998 Honda EVPlus passenger cars.
3. Two (2) leases with Toyota Motor Sales USA, Inc. for two (2)
1998 Toyota RAV4EV vehicles.
4. Two (2) leases with Ford Motor Credit Corporation for two
(2) 1998 Ranger Electric Pick-up trucks.
The total cost to lease these vehicles for three (3) years is
$180,572. These awards require notification of an exception to
Council policy (Resolution No. 8966-CCS) regarding conducting
business with firms doing business in or with Burma.
Background
In 1991 the City of Santa Monica adopted Ordinance No. 1587 to
implement the State of California's Assembly Bill 2766, which
provided funding for programs to reduce air pollution from mobile
sources. On October 28, 1997 the City Council adopted Resolution
No. 9209 which authorized the City Manager to submit and execute
the Local Government Subvention Fund Match Program Grant
application to the SCAQMD which would provide a 25% match against
AB2766 funds used for projects which reduce mobile source air
pollution. This fiscal year the City received $88,000 in AB2766
subvention funds earmarked for the purchase of reduced emissions
vehicles. The proposed project consisted of the leasing of up to
ten (10) electric vehicles before June 1999 and was approved by
the SCAQMD on February 17, 1998.
In addition to funding from the SCAQMD, two of the vehicles for
use by the Engineering's Sewer Repair Office will be funded by
reimbursements from the Federal Emergency Management Agency
(FEMA) and the State Office of Emergency Services. $72,000 was
appropriated to purchase these two vehicles and a third vehicle
for the Sewer Office which will be purchased at a later date.
On November 28, 1995, Council adopted Resolution No. 8966 (CCS),
"Establishing a Policy for the City of Santa Monica Prohibiting
Contracts for Personal Services and Purchase of Commodities from
Companies Doing Business in or With Myanmar (Burma)." This
policy allows the City Manager to approve an exception when it is
in the interest of public health, safety or welfare and the
service or commodity cannot be reasonably obtained from any other
source. The City Manager has approved such an exemption to
Resolution No. 8966 (CCS) for the lease of the vehicles from the
Ford Motor Credit Company. The lease of electric powered
vehicles is consistent with the City's reduced emission policy.
Discussion
The Environmental and Public Works Management Department has been
aggressively pursuing for the last four years the replacement of
retired vehicles with low emission vehicles powered by
alternative fuels such as natural gas and electricity. In
addition, the department has been developing the requisite
fueling infrastructure for these low emission vehicles including
a large compressed natural gas (CNG) facility at the City Yard
and over twenty electric vehicle charging stations throughout the
City, including City Hall, Santa Monica Place, the Santa Monica
Pier, Main Street (Ashland/Nielson), Montana Avenue and the Santa
Monica Airport. The City had previously acquired three first
generation electric vehicles (converted from gasoline), two of
which are still in service. However, these vehicles are now
outdated and have extremely limited range. The development of the
1998 California Zero Emission Vehicle (ZEV) standard with the
voluntary participation of all the major automotive manufacturers
has now resulted in the availability of higher performance
electric vehicles. Staff wishes to evaluate the operational
performance of the various current generation vehicles by
incorporating eight such vehicles into the fleet this fiscal year
and eight more next fiscal year.
Budget/Financial Impact
All Original Equipment Manufactured (O.E.M.) electric vehicles
are currently available through lease option only, the cost of
which includes all vehicle maintenance. Electric vehicle
chargers will be purchased for six vehicles that will be based at
locations where charging facilities are either not available
(City Yard, Sewer Office) or not compatible with the vehicle
(City Hall). The cost of the six chargers is included in the
lease price. However, the cost of installation of all six
chargers has not been included in this request as City staff will
perform the installation, saving approximately $24,000. Below is
a cost breakdown for the eight vehicles and six chargers,
totaling $180,572.
Vehicle Location Lease Lease Charqer Total
Cost Duration Cost
Saturn EV1 City Hall $16,346 3 years $0 $16,346
Honda EVPlus Pier $17,503 3 years $0 $17,503
Honda EVPlus Sewer Off $17,503 3 years $4,000 $21,503
Toyota RAV4EV City Hall $17,740 3 years $4,000 $21,740
Toyota RAV4EV City Yard $17,740 3 years $4,000 $21,740
Chevrolet
S10 Electric City Yard $27,064 3 years $4,000 $31,064
Ford Ranger
Electric Sewer Off $21,338 3 years $4,000 $25,338
Ford Ranger
Electric City Yard $21,338 3 years $4,000 $25,338
Total Cost: $156,572 $24,000 $180,572
Funds for the lease agreements are available in the following
accounts:
Account Number: Amount:
01-710-202-20098-8900-99401 $87,600
54-710-461-20098-8900-99167 $46,972
13-500-402-39191-8806-13007 $46,000
TOTAL $180,572
SCAQMD matching funds totaling $21,900 will be received after the
City's completion of the electric vehicle leasing project in June
1999. The revenues will be budgeted in the FY 1999-2000 and will
be used to partially reimburse the Vehicle Management fund for
its portion of the lease costs. Any unreimbursed costs for
expenses associated with the vehicles assigned to the sewer
repair staff will be covered by the Wastewater Fund.
Recommendations:
Staff recommends that Council authorize the City Manager to
execute the following lease agreements for eight electric
vehicles totaling $180,572:
1. Two lease agreements with General Motors Acceptance
Corporation (GMAC) for one 1998 Saturn EV1 passenger vehicle
for three years and one 1998 Chevrolet S10 Electric Pick-up
for three years, at a total cost of $47,410.
2. Two lease agreements with American Honda Finance Corporation
for two 1998 Honda EVPlus passenger vehicles for three
years, at a total cost of $39,006.
3. Two lease agreements with Toyota Motor Sales USA, Inc. for
two 1998 Toyota RAV4EV sport utility vehicles for three
years, at a total cost of $43,480.
4. Two lease agreements with Ford Motor Credit Corporation for
two 1998 Ford Ranger Electric Pick-up trucks for three
years, at a total cost of $50,676.