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FFRPT\VEHLEASE
CouncIl Meetmg April 14, 1998 Santa Monica, CalifornIa
TO Mayor and Councllmembers
FROM City Staff
SUBJECT Recommendation to Authorize the CIty Manager to Execute Three-Year
Lease Agreements for Eight (8) Electnc 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 electnc vehicles for use by vanous 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
RA V4EV 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)
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roE
~ya t It
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regarding conducting business with fIrms dOing business In or with Burma
Backaround
In 1991 the City of Santa MOnica adopted Ordinance No 1587 to Implement the State
of Cahforma'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) electnc 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 appropnated 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
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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 electnc 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 electnc 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 electnc 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 electnc vehicles Staff Wishes to
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evaluate the operational performance of the vanous current generation vehicles by
incorporating eight such vehicles Into the fleet this fiscal year and eight more next fiscal
year
Budget/FinancIal Impact
All angInal EquIpment Manufactured (0 EM) electnc vehIcles are currently available
through lease option only, the cost of which Includes all vehicle maintenance Electnc
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 pnce
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 CharQer Cost Total
Saturn EV1 CIty Hall 516,346 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 $4,000 521,740
Chevrolet 810 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
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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 Will be received after the City's completion
of the electnc 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 unrelmbursed costs for expenses associated with
the vehIcles assIgned to the sewer repaIr staff WI" be covered by the Wastewater Fund
Recommendations
Staff recommends that Council authorize the City Manager to execute the following
lease agreements for eight electnc 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 Electnc PIck-up for three years, at a total cost of $47,410
2 Two lease agreements with Amencan Honda Finance Corporation for two 1998
Honda EVPlus passenger vehicles for three years, at a total cost of $39,006
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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
Prepared by Craig Perkins, Environmental and Public Works Management
Director
Renee Cowhlg, Maintenance Manager
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