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sr-062811-3e~;tyor City Council Report Santa Monica" City Council Meeting: June 28, 2011 Agenda Item:.3~ To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Lease Extension for Toyota-brand RAV4 Electric Vehicles Recommended Action Staff recommends that City Council authorize the City Manager to award a sole source purchase order to Toyota Motor Credit Corporation, aCalifornia-based company, in an amount not to exceed $90,873 fora 12-month lease extension for 23 Toyota-brand RAV4 electric vehicles. Executive Summary The City's lease agreement with Toyota Motor Credit Corporation for 23 Toyota-brand RAV4 electric vehicles expired in October 2010. A 12-month lease extension in an amount not to exceed $90,873 is necessary to continue using these vehicles for City business. Staff will explore replacement of these vehicles with a new generation of electric vehicles, recommend an additional lease extension, or pursue another vehicle before October 2011. Discussion The City has leased Toyota-brand RAV4 vehicles from Toyota Motor Credit Corporation since FY2001-02. These electric vehicles are currently being used by City staff in Airport Administration,. Facilities, Office of Sustainability and the Enviroriment, Engineering, Building and Safety, Resource Recovery & Recycling, and Water Resources. The use of electric vehicles furthers the City's sustainability goals of decreasing toxic emissions. The durrent (ease with Toyota Motor Credit Corporation for these 23 RAV4 electric vehicles expired in October 2010. For this reason, the 12-month lease term for each vehicle is retroactive to its in-service date in October 2010. The agreement is an 1 extension because the lease term is a supplemental to the master lease agreement entered in 1998 with Toyota Motor Corporation. Toyota Motor Corporation is the sole source lessor of Electric Toyota RAV4s. The Toyota RAV4s have been reliable and cost effective to operate. At the present time, there is not an immediate alternative to replace these vehicles with other electric vehicles. This lease extension will allow staff time to explore a new generation of electric vehicles. Additionally, the vehicle chargers that are currently in place fit the RAV4s and a limited number of older electric vehicles. Additionally, Fleet Management staff is trained in the maintenance and repair of these vehicles. These vehicles, some or all, can be returned to Toyota at any time and the balance of the lease cost will be credited to the City, or the City can extend the lease again at the same cost and terms. Financial Impacts & Budget Actions The purchase order amount to be awarded to Toyota Motor Credit Corporation is in an amount not to exceed $90,873. Funds are available in the FY2010-11 budget in account 0540167.589200, Fleet Vehicle Replacement Program. Prepared by: Liz Martyn, Administrative Analyst Approved: Forwarded to Council: Martin Pastucha Rod Gould Director of Public Works City Manager 2