Council Meeting: May 26, 1998 Santa Monica, California
TO: Mayor and Councilmembers
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Approve an Exemption to the
Burma Policy (City Council Resolution No. 8966-CCS) and to Execute Three-Year Lease
Agreements for Eight (8) Electric Vehicles.
Introduction
This report recommends that the City Council authorize the City Manager to execute three-year lease agreements with the following vendors for eight electric vehicles for use by various City divisions and affirm an exemption to Council Resolution No. 8966 (CCS), "Establishing a Policy for the City of Santa Monica Prohibiting Contracts for Personal Services and Purchase of Commodities Doing Business in or with Myanmar (Burma)". Each vendor is the sole provider of each vehicle type. The vendor names and proposed leases are as follows:
1. Two (2) leases with American Honda Finance Corporation for two (2) 1998 Honda EVPlus passenger cars.
2. Two (2) leases with Toyota Motor Sales USA, Inc. for two (2) 1998 Toyota RAV4EV vehicles.
3. Two (2) leases with Ford Motor Credit Corporation for two (2) 1998 Ford Ranger Electric Pick-up trucks.
4. Two (2) leases with General Motors Acceptance Corporation (GMAC) for one (1) 1998 Saturn EV1 passenger vehicle and one (1) 1998 Chevrolet S-10 Electric Pick-up truck.
The total cost to lease these vehicles for three years with one-time lease payments, including
purchase of the charging systems, is $180,572.
Background
On May 14, 1998 staff requested Council approval to execute lease agreements for eight electric
vehicles from various manufacturers to be funded by a grant received from the South Coast Air
Quality Management District (SCAQMD). Council expressed concern that the purchases would
necessitate exemptions from the City's policy regarding firms that do business with Burma and
asked staff to proceed only with firms not involved in Burma. Staff has confirmed that Ford,
Honda, Toyota and General Motors all conduct business with Burma which therefore leaves the
City with no electric vehicle options. Exemptions to the Burma Policy are therefore necessary so
that the City's electric vehicle demonstration project can proceed.
Discussion
Although the recommended Council action involves exemptions to an established Council policy
on companies which do business with the military government of Burma, the procurement of
electric vehicles is consistent with the City Council adopted alternative fuels policy and the
Council adopted Sustainable City Program. Staff believes that the significance of the City's
commitment to clean fuel technologies should take precedence over the Burma policy in this
specific instance. If the recommendations are approved staff will formally communicate with all
of the automobile manufacturers to express the City's concerns that they are doing business in
Burma.
The Local Government Subvention Fund Match Program grant proposal submitted to the
SCAQMD and the resulting contract states that the City will lease at least 10 electric vehicles,
including the Saturn EV1, Chevrolet S10 Pick-up truck, Honda EVPlus, Ford Ranger Pick-up
truck and the Toyota Rav4EV passenger vehicle. The City is required to evaluate the performance
and utility of each vehicle and analyze the cost and environmental benefits. An interim report with
the findings to date is required to be submitted to SCAQMD by October 1998, and a final report
is due by June 1999 in order to receive the reimbursement of up to $44,000 in match funding
against AB2766 funds used to lease the vehicles.
Testing the performance and utility of the varied makes and models will allow the City to
determine the best high-performing, zero-emission electrical vehicle options for the City's fleet.
The information will benefit other jurisdictions contemplating investing in clean air fleet options.
The following discussion details some of the technical justifications for a varied electrical fleet.
Electrical vehicle technology is continuously evolving and it behooves the City and the public to
test all makes and models currently available. For example, there are two types of battery
technology available at the moment, lead-acid and nickel-metal hydride. The Saturn EV1 uses a
lead-acid battery which provides a range of only 45 to 50 miles between charging. Both the
Honda EVPlus and Toyota RAV4EV on the other hand, are equipped with nickel metal hydride
battery with a range of over 90 miles between charges.
The types of charging systems required by each vehicle type are also in flux. For example, the
Saturn EV1 is an inductive system. The Honda EVPlus is a conductive system which is also
compatible with the Ford Ranger Pick-Up. The Toyota RAV4EV is also a conductive system,
but is not compatible with the Honda and Ford conductive charging system. Time, cost and
performance will ultimately determine which type of battery technology and charging system will
become predominant, and by testing all vehicle types, the City of Santa Monica will be an active
participant in this determination and will remain at the forefront of reduced and zero-emission
vehicles acquisition.
The table on the following page outlines the pertinent information for each proposed vehicle that will be evaluated and submitted to SCAQMD to fulfill the grant requirements:
| Make/ Model | Battery | Range
(miles) |
Seats | Charging Unit | Charger Compatibility | Existing
Charging Stations |
Proposed Charging Stations |
| Honda EV | Nickel-Metal | 90+ | 4 | Conductive | Ford | None | 1 at Pier & 1 at City Hall or Sewer Office |
| Toyota Rav4EV | Nickel-Metal | 90+ | 5 | Conductive | None | None | 1 at City Hall and 1 at City Yards |
| Ford Ranger Pick-up | Lead-Acid | 45-50 | 2 | Conductive | Honda | None | 1 at City Yards and 1 at City Hall or Sewer Office |
| Saturn EV1 | Lead-Acid | 45-50 | 2 | Inductive | Chevy | 2 at City Hall and 1 at Ralph's | |
| Chevy S10 Pick-up | Nickel-Metal | 90+ | 2 | Inductive | Saturn | 2 at City Hall and 1 at Ralph's | 1 at City Yards |
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 existing or not compatible with the vehicle. 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 Cost | Lease Duration | Charger Cost | Total |
| 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 |
| 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 |
| Saturn EV1 | Pier | $16,346 | 3 years | $0 | $16,346 |
| Chevrolet S10 | City Yard | $27,064 | 3 years | $4,000 | $31,064 |
|
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 |
| $180,572 |
SCAQMD matching funds totaling $21,900 for these eight vehicles 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.
Recommendation
Staff recommends that Council authorize the City Manager to execute the following lease agreements for eight electric vehicles and charger purchase costs totaling $180,572 and affirm an exemption to the Burma Policy, listed below:
1. 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.
2. 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.
3. 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.
4. Two lease agreements with General Motors Acceptance Corporation (GMAC) for one 1998
Saturn EV1 passenger vehicle and one 1998 Chevrolet S-10 Electric Pick-up truck, at a total cost
of $47,410.
Prepared by: Craig Perkins, Environmental and Public Works Management Director
Renee Cowhig, Maintenance Manager
Sue Matthews, Maintenance Management Analyst