sr-060909-1bCity Council Meeting: June 9, 2009
Agenda Item: ~ e
To: Mayor and City Council
From: Joan L. Akins, Director, Community Maintenance Department
Subject: Project with the South Coast Air Quality Management District for the
Purchase and Demonstration of Battery-Powered Electric Utility Truck
Recommended Action
Staff recommends that the City Council authorize the City Manager to execute a
contract with the South Coast Air Quality Management District for participation in a
project for the purchase and demonstration of aBattery-Powered Electric Utility Truck
and to issue a Purchase Order to Electrorides in the amount of $174,410 plus tax.
Executive Summary
The City's participation in this project with South Coast Air Quality Management District
(AQMD) will demonstrate the viability of a zero emission, all electric, medium duty
service truck for operation in the City's fleet.
The successful demonstration of this vehicle will help bring full-speed electric trucks to
market and prove their suitability for this application. The cost to the City for this project
is about equal to the purchase of an equivalent CNG truck. The project includes an
AQMD grant of $87,205 plus tax, City funding of $87,205 plus tax available in account
0540167.589100. The City and AQMD will each pay 50% of the cost of the truck.
Background
In 1996, the City adopted the Sustainable City Plan which included as a goal the
reduction of emissions through the use of alternative fuels. Battery Electric Vehicles
(BEVs) are zero emission at the tailpipe, but their availability has 'been very limited.
Currently the City has 24 Toyota RAV4 Electric Vehicles (EVs) which have been out of
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production since 2003. The only other on-road EVs that have been available to the City
are Neighborhood Electric Vehicles (NEVs), which are small vehicles limited to 25 mph.
There are currently 32 NEVs in the fleet.
Discussion
Medium-duty EVs, like most- new technologies, have difficulties gaining market
acceptance simply because they are not in use. This AQMD project has been launched
to prove the viability of all-electric medium-duty trucks and the City of Santa Monica has
been given the opportunity to participate. With increased market acceptance, sales and
production will increase and vehicle costs should be reduced. There are at least 30
medium-duty vehicles in the City's fleet that could potentially be replaced with the
ZeroTruck as it is currently designed, so this project may result in additional benefits for
the City in the future.
The total estimated cost for the project is $227,043 with a cost breakdown as follows:
ZeroTruck purchase price: $174,410
Sales tax (9.25%):
16,133
In-kind costs (training, warranty, 36,500
monitoring and reporting)
Total: $227,043
Funding for this project will come from various sources including a grant of $87,205 plus
sales tax ($8,066) from AQMD. AQMD grant will be disbursed upon the completion of
the purchase of the ZeroTruck. Cost-sharing from Electrorides, the manufacturer of the
ZeroTruck, is $9,000 for training, monitoring and reporting; EV Innovations, the battery
manufacturer, in the amount of $7,500 for warranty service and reporting; and Velocity
Vehicle Group, the chassis dealer, in the amount of $5,000 for warranty service and
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reporting. The remaining $110,272 will be the City's share. Of the $110,272, $15,000
is ah in-kind match of staff time to be absorbed within the budget.
Budget Actions and Financial Impacts
AQMD grant will be disbursed when the purchase is complete. The grant receipts of
$95,271 will be included in FY2009-10 Adopted Budget. As the grant is on a
reimbursement basis, the amount required from the City to front the purchase is
$190,543 including the purchase of the truck ($174,410) and sales taxes ($16,133).
Funds of $190,543 are available at account 0540167.589100.
Prepared by: Renee Cowhig, Maintenance Manager
Approved:
Forwarded to Council:
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.Akins, Director P. L ont Ewell
unity Maintenance Department i y Manager
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Reference Contract No.
9070 (CCS).