SR-03-19-2013-3LCity Council Meeting: March 19, 2013
Agenda Item: ' --L
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase of Ten Toyota RAV4 Electric Vehicles
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute lease financing documents
consistent with the recommended purchase.
2. Award a purchase order to National Auto Fleet Group, a California -based
company, in an amount not to exceed $554,651 for the purchase and delivery of
ten 2012 Toyota RAV4 Electric Vehicles (EVs).
3. Authorize the budget changes as outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
The City has used the Toyota RAV4 EV in the City fleet since 2001. Currently, there
are 24 Toyota RAV4 EVs in the City fleet of which ten are at the end of their useful life.
Staff recommends a purchase order in the amount of $554,651 with National Auto Fleet
Group to purchase ten 2012 Toyota RAV4 EV replacement vehicles. These vehicles
will be financed through Toyota Financial Services (TFS) in order to take advantage of
incentive funding offered by TFS.
Discussion
The Toyota RAV4 Electric Vehicle (EV) has been used in the City's fleet since 2001 and
has been very reliable. Production of these electric vehicles stopped in 2003 and they
were not produced again until 2012. The City currently has 24 Toyota RAV4 EVs, all
but one are leased. As part of the lease agreement, Toyota does not provide support
for these vehicles that were of limited production and parts are becoming increasingly
difficult to obtain. Staff identified ten of the older Toyota RAV4 EVs that are at the end
of their useful life and proposes to replace them with the new model. The purchase
price per vehicle including all fees and tax is $55,465. An incentive of $10,000 per
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vehicle is available until March 31, 2013 for new Toyota RAW EV purchases financed
by Toyota Financial Services. The incentive of $10,000 per vehicle would be applied as
a down payment toward the purchase helping to offset the higher incremental cost of
the high technology vehicles. Payments would be made to Toyota Financial Services
for up to 60 months at 0% interest. Additionally, the City would apply $20,000 per
vehicle from AB2766 Subvention Fund program and $2,500 per vehicle from California's
Clean Vehicle Rebate Project (CVRP). This brings the net price per vehicle to $22,965
including tax and all fees.
Vendor Selection
Section 2.24.080 (b) of the Municipal Code allows exception to competitive bid
procedures when such competitive bid procedures have already been utilized, such as
in purchasing from Federal, State, County, City or special district government agencies,
or from cooperative purchasing agencies consisting of such agencies. National Auto
Fleet Group has based their pricing on National Joint Powers Alliance's (NJPA) contract
#102811. NJPA is a service cooperative, based in Minnesota, which establishes and
provides nationally leveraged and competitively solicited purchasing contracts. Through
this process, National Auto Fleet Group was awarded the NJPA national contract for
passenger cars, light duty, medium duty, and heavy duty trucks. NJPA contracts are
supported and widely used by government agencies throughout the United States.
Staff has confirmed that the NJPA contract was competitively bid in compliance with the
requirements of the Municipal Code.
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Financial Impacts & Budget Actions
The purchase order to be awarded to National Auto Fleet Group is for an amount not to
exceed $554,651. Funds are available in the FY 2012 -13 Capital Improvement Program
budget in account 0540167.589200. AB2766 Subvention Funds in the amount of
$200,000 will reimburse the 54 fund through an interfund transfer. This transfer will
require the following budget appropriations:
Account Amount
44695.570310 $200,000
54695.570310 - $200,000
Prepared by: Rick Sikes, Superintendent Fleet Management
Approved:
Forwarded to Council:
Mart a tucha t Rod Gould
Director of Public Works City Manager
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