sr-021412-3nCity of
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City Council Report
City Council Meeting: February 14, 2012
Agenda Item: 3-N
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Renewal of Leases for 23 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, a California -based company, in an
amount not to exceed $90,459 for a 12 -month lease extension for 23 Toyota -brand
RAV4 electric vehicles.
Executive Summary
The City's lease agreements with Toyota Motor Credit Corporation for 23 Toyota -brand
RAV4 electric vehicles expired in October and November 2011. A 12 -month lease
extension in an amount not to exceed $90,459 is necessary to continue using these
vehicles for City business. Staff will continue to explore replacement of these vehicles
with a new generation of electric vehicles, recommend an additional lease extension, or
pursue another Vehicle before October 2012.
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 Environment,
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 current leases with Toyota Motor Credit Corporation for these 23 RAV4 electric
vehicles expired in October and November 2011. The new lease term for each vehicle
is retroactive to its in- service date in October and November 2011 and would continue
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for a period of twelve months thereafter. The new lease term is an extension 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 no immediate alternative to replace these vehicles with other electric vehicles.
This lease extension would allow staff time to continue exploring a new generation of
electric vehicles. Additionally, the vehicle chargers that are currently in place at City
facilities 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 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 $90,459. Funds are available in the FY2011 -13 budget in
account C540167.589200.
Prepared by: Rick Sikes, Superintendent Fleet Management
Approved:
Forwarded to Council:
Martin Pastucha Rod Gould
Director, Public Works City Manager