SR-06-11-2013-3OCity Council Report
city of
Santa Dionicii
City Council Meeting: June 11, 2013
Agenda Item: 3-0
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Lease Extension for Toyota RAV4 Electric Vehicles
Recommended Action
Staff recommends that the 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 $90,873 for a one -year lease extension for 23
Toyota RAV4 electric vehicles and a one -year lease extension in the amount of $51,246
for 13 Toyota RAV4 electric vehicles, for a two -yearn period, with future funding contingent exceed $142,119 over a
on Council approval.
Executive Summary
The City's lease agreements with Toyota Motor Credit Corporation for 23 Toyota RA
electric vehicles expired in October and November 2012. A one -year lease extension in
an amount not to exceed $90,873 is necessary to continue using these vehicles for City 10 new
business. Ten of the 23 vehicles
by wCoudncil onpMayd28�t2013. pSt ff also of
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Toyota RAV4 vehicles app roved
approval for none -year lease extension for the remaining 13 electric Toyota RAV4s that
will expire in October and November 2013 in the amount of $51,246.
Background
The City has leased Toyota RAV4 vehicles from To
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. This
purchase is consistent with the City's Reduced - Emissions Fuels Policy.
Discussion
The current leases with Toyota Motor Credit Corporation for these 23 RAV4 electric
vehicles expired in October and November 2012. The new lease term for each vehicle
is retroactive to its in- service date in October and November 2012 and would continue
E
through October and November 2013. The new lease term is an extension to the
master lease agreement of 1998 with Toyota Motor Corporation.
Ten of the 23 leased vehicles would be replaced with the purchase of 10 new Toyota
RAV4 vehicles approved by Council on May 28, 2013, which will be in service no later
than the lease expiration date in 2013, reducing the number of leased vehicles from 23
to 13. The 10 leased vehicles would be returned to Toyota when the new vehicles are
received and placed in service, ending the leases for these 10 vehicles. 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.
As noted above, these vehicles were first leased based on a 1998 agreement with
Toyota. At that time, Toyota Motor Corporation was the sole source lessor of Electric
Toyota RAV4s. Any number (or all) of these vehicles, can be returned to Toyota at any
time and the balance of the lease cost credited to the City. Additionally, the City can
extend the lease again under the existing terms.
Financial Impacts & Budget Actions
The purchase order amount to be awarded to Toyota Motor Credit Corporation is for an
amount not to exceed $142,119. Funds are available in the 12-13 will Capital
Improvement Program budget in account 0540167.589200; p urchase
charged to this same account. Budget authority for subsequent years will be requested
in each budget cycle for Council approval. Future funding is contingent upon Council
approval and budget adoption.
Prepared by: David Lasher, Administrative Analyst
Forwarded to Council:
Approved:
Martin Pastucha Rod Gould
Director of Public Works
City Manager
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