SR-09-08-2015-3C
City Council
Report
City Council Regular Meeting: September 8, 2015
Agenda Item: 3.C
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To: Mayor and City Council
From: Martin Pastucha, Director, Public Works, Street & Fleet Services
Subject: Lease Extension for Toyota RAV-4 Electric Vehicles
Recommended Action
Staff recommends that the City Council authorize the Purchasing Services Manager to
issue a purchase order with Toyota Motor Credit Corporation, a California-based
company, in the amount of $7,884 for a retroactive one-year lease of two Toyota RAV-4
electric vehicles for the period of October 2013 to November 2014. This is a sole
source purchase in an amount not to exceed $150,003 with future year funding
contingent on Council budget approval.
Executive Summary
The City has leased Toyota RAV4 electric vehicles from Toyota Motor Credit
Corporation since 2001. In 2013, the City fleet had 23 leased Toyota RAV4 electric
vehicles. These vehicles were used by City staff in various departments and were
consistent with the City’s Reduced-Emission Fuels Policy.
On June 11, 2013 (attachment A), Council approved a retroactive one-year lease
extension for 23 Toyota RAV4 electric vehicles for the period of October 2012 to
November 2013 and an additional one-year lease extension for 13 Toyota RAV4 electric
vehicles for the period of October 2013 to November 2014. At that point in time, staff
anticipated returning 10 vehicles to Toyota Motor Credit Corporation, but after Council
approval, the decision was made to return only eight vehicles, keeping two additional
vehicles as a source of spare parts for the repair of Toyota RAV-4 vehicles. Eight of the
23 vehicles Toyota RAV4 electric vehicles were returned to Toyota Motor Credit
Corporation in 2013. The recommended purchase order of $7,884 is for a retroactive
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lease extension for two Toyota RAV4 electric vehicles that were not returned to Toyota
Motor Credit Corporation in 2013.
Background
The City has leased Toyota RAV4 electric vehicles from Toyota Motor Credit
Corporation since 2001. At that time, Toyota was the sole lessor of Toyota RAV4
electric vehicles. In 2013, the City fleet had 23 leased Toyota RAV4 electric vehicles.
On June 11, 2013, Council approved a retroactive lease extension for the 23 Toyota
RAV4 electric vehicles for the period of October 2012 to November 2013 in the amount
of $90,873 and an additional lease extension for 13 Toyota RAV4 electric vehicles for
the period of October 2013 to November 2014 in the amount of $51,246, for a total
amount not to exceed $142,119.
Only eight Toyota RAV4 electric vehicles were returned to Toyota Motor Credit
Corporation in 2013 because there was a need to keep two vehicles as a source of
spare parts for the repair of Toyota RAV-4 vehicles for quick vehicle service or due to
unavailability of spare parts. The total number of leased Toyota RAV4 electric vehicles
was 15 at the end of 2013, the 13 that had the lease extension and the two that were
not returned and now require a retroactive one-year lease payment.
Discussion
The recommended purchase order is for a retroactive lease extension for two Toyota
RAV4 electric vehicles that were not returned to Toyota Motor Credit Corporation in
2013. The total amount of the purchase order is $7,884. The delay in processing the
lease extensions for the remaining Toyota RAV4 electric vehicles was due to staff not
receiving the lease extension documents from Toyota Motor Credit Corporation until
recently.
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Financial Impacts and Budget Actions
The sole source purchase order to be awarded to Toyota Motor Credit Corporation is for
an amount not to exceed $7,884. Funds are available in the FY 2015-16 Capital
Improvement Program budget in account C540167.589200.
Prepared By: Ryan Kraemer, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. June 11, 2013 Staff Report (web link)