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
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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
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