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MAY 2 6 1998
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Council Meeting May 26, 1998 Santa Monica, CalIfornia
TO Mayor and Councllmembers
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 electnc 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 Prohlblltng Contracts for
Personal Services and Purchase of Commodltres DOing Business In or with Myanmar
(Burmar 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 8-10 ElectriC
1 ~-C
MAY 2 6 1998
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 electnc vehicles from vanous manufacturers to be funded by a grant received
from the South Coast Air Quality Management Dlstnct (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 electnc
vehicle options Exemptions to the Burma Policy are therefore necessary so that the
City's electnc vehicle demonstration project can proceed
DISCUSSion
Although the recommended Council action Involves exemptIons to an established
Council polley on companies which do bUSiness With the military government of Burma,
the procurement of electnc 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
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CITY OF SAL\'T A MONICA IS '.'0. 97-017
PLANNING AND COMMUNITY DEVELOPMENT DEPART~lENT
CIty Hall, 1685 Mam Street. Santa Momca. CalIforma 90401-3295
d. Does the project hGl'e em'lronmenral effecrs whl(h will cause subsrannol
adverse effects on human bemg\), euher direerly or directly?
No. The parkIng zone wIll not have direct or Indirect substantial adverse effects
on humans as the project entails only the ImplementatIon of on-street parkmg
restnctlOns through the installatIon or postmg of SIgns adjacent to one block of a
CIty street and the acqulSltIon of parkIng permIts by neIghborhood reSIdents.
VI. DETEAAIINA TION
See attached.
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types of battery technology available at the moment. lead-acid and nickel-metal
hydnde 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
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Make! Battery Range Seats Charging Umt Charger Compatibility Existing Proposed
Model (miles) Charg ing Charging Stations
Stations
Honda Nlckel- 90+ 4 Conductive Ford None 1 at PIer & 1 at City
EV Metal Hall or Sewer
Office
Toyota Nlckel- 90+ 5 Conductive None None 1 at City Hall and 1
Rav4EV Metal at City Yards
Ford Lead- 45-50 2 Conductive Honda None 1 at City Yards and
Ranger ACid 1 at City Hall or
Pick-up Sewer Office
Saturn Lead- 45-50 2 lnductJve Chevy 2 at City
EV1 ACid Hall and 1
at Ralph's
Chevy Nlckel- 90+ 2 Inductive Saturn 2 at City 1 at City Yards
S10 Metal Hall and 1
PIck-up at Ralph's
BudgeUFlnanclallmoact
All anginal Equipment Manufactured (0 EM) electnc vehicles are currently avarlable
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 eXlstmg or not compatIble With the vehicle The cost of
the SIX chargers IS mcluded 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
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Vehicle Location Lease Cost Lease Duration Charaer 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 S17,740 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 510 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 546,972
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 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 wIll
be covered by the Wastewater Fund
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Recommendation
Staff recommends that Council authorize the City Manager to execute the followIng
lease agreements for eight electnc 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-1 0 Electric
Pick-up truck, at a total cost of $47,410
Prepared by Craig PerkinS, Environmental and Public Works Management
Director
Renee Cowhlg, Maintenance Manager
Sue Matthews, Maintenance Management Analyst
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