SR-05-28-2013-3DCity of
Santa nianica
in
City Council Meeting: May 28, 2013
Agenda Item:-3- 0
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Bid Award for Purchase of 10 Toyota RAV4 Electric Vehicles
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4072 for the purchase and delivery of 10 2012 Toyota RAV4 Electric
Vehicles (EVs) to Toyota Santa Monica, a California -based company, in an
amount not to exceed $442,437.
2. Authorize the City Manager to negotiate and execute financing documents
consistent with the recommended purchase.
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 10 are at the end of their useful life.
In April 2013, the City solicited bids for the purchase of 10 Toyota RAV4 EVs. After
reviewing the three bids received, staff recommends Toyota Santa Monica as the best
bidder to provide 10 2012 Toyota RAV4 EV replacement vehicles in the amount of
$442,437. These vehicles would 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 this electric vehicle stopped in 2003 and was 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 10 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
1
vehicle including all fees and tax is $54,244. An incentive of $10,000 per vehicle is
available until May 31, 2013 for new Toyota RAW EV purchases financed by Toyota
Financial Services. Payments would be made to Toyota Financial Services. By
agreement terms, payment could take place for up to 60 months at 0% interest;
however, the City plans to pay the full amount in FY 2012 -13. The $10,000 incentive
would be applied as a down payment toward the purchase helping to offset the higher
incremental cost of these high technology vehicles. Additionally, $20,000 per vehicle of
AB2766 funds currently held in the AQMD fund and $2,500 per vehicle rebate from the
California Clean Vehicle Rebate Project will be used to make payments. Applying the
AB2766 and rebate funds to these payments lowers the effective cost per vehicle to
$21,744 including tax and all fees. This purchase is consistent with the City's Reduced -
Emissions Fuels Policy.
Vendor Selection
In April 2013, the City published Notices Inviting Bids to furnish and deliver 10 new and
unused Toyota RAV4 Electric Vehicles. The bid was posted on the City's on -line
bidding website and notices were advertised in the Santa Monica Daily Press in
accordance with City Charter and Municipal Code provisions. Three bids were received
and publicly opened on May 2, 2013 per Attachment A. Bids were evaluated based on
the criteria in SMMC 2.24.072, including price, ability to deliver, and compliance with
City specifications. Toyota Santa Monica was the lowest bidder, complied with the
vehicle specifications, and they have a good standing relationship with the City. Based
upon these criteria, Toyota Santa Monica is recommended as the best bidder to provide
10 Toyota RAW Electric Vehicles in accordance with the City specification.
2
Financial Impacts & Budget Actions
The purchase order to be awarded to Toyota Santa Monica is for an amount not to
exceed $442,437. Funds in the amount of $242,437 are available in the FY 2012 -13
Capital Improvement Program budget in account C540167.589200. AB2766 subvention
funds in the amount of $200,000 are available in the AQMD fund. Award of the
purchase order will require an appropriation from the AQMD Fund in the amount of
$200,000 to account C440167.589200.
Prepared by: Rick Sikes, Superintendent Fleet Management
Approved:
k�wl �- �-
Martin Pastucha
Director of Public Works
Attachments: A — Bid Summary
3
Forwarded to Council:
Rod Gould
City Manager
Attachment A - Bid Summary
Bid No.: 4072
Bid Closing Date: 5 /2/13
Bid Description: Furnish and Deliver Ten (10) New and Unused Toyota Rav4 Elevctric Vehicles as Required by Fleet Management
*Applies only to businesses located within the City of Santa Monica in accordance with Municipal Code 2.24.100 (d) (1).
Carson Toyota
Carson, CA
Toyota Santa Monica
Santa Monica, CA
Wondries Fleet Group
Alhambra, CA
Item
Description
QTY
Unit Price
Extended
Unit Price
Extended
Unit Price
Extended
1
Toyota Rav4 Electric Vehicles
30
$48,998.00
$489,980.00
$49,914.00
$499,140.00
$50,420.00
$504,200.00
2
Sales Tax (9.5 %)
$46,548.10
$47,418.30
$47,899.00
3
Santa Monica 1% Sales Tax Credit*
- $4,991.40
4
Tire Fee
10
$7.00
$70.00
$7.00
$70.00
$8.75
$87.50
5
Delivery
10
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
6
Other
$400.00
$400.00
$80.00
$800.00
N/a
N/a
7
Toyota Financing Incentive 10
$0.001
$0.00
- $10,000.00
- $100,000.00
- $10,000.00
- $100,000.00
8
Grand Total
1 $536,998.10
$442,436.90
1 $452,186.50
Item
Description
Response
Response
Response
9
Year, Make, Model of Proposed Unit
2013 Toyota Rav4
2012 Toyota Rav4
2012 Toyota Rav4
10
Guaranteed Delivery Date (ARC)
120 Days
14 days
5 Days
11
Payment Terms
Net 30
Net 30
Net 30
12
Vendor Comments
Toyota Financing Incentive Not Available Other
Fee: Online Parts, Electric, Maintenance
$7500 Federal Tax Credit; $2500 State Rebate
Other Fee: Documentation Fee
*Applies only to businesses located within the City of Santa Monica in accordance with Municipal Code 2.24.100 (d) (1).