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Home My WebLink About06/06/2000, C3 - LEASE OF BATTERY-POWERED PICKUP TRUCKS council 'lftn6 6 j acEnaa REpont C3 CITY OF SAN LUIS OBISPO FROM: Mike McCluskey,Director of Public Works' Prepared By: David Elliott,Administrative Analyst Brandon Farley,Interim Transit Manager SUBJECT: Lease of Battery-Powered Pickup Trucks CAO RECOMMENDATIONS: 1. Authorize the City Administrative Officer to submit a commercial application and execute a lease agreement in the amount of$78,200 with Barber Ford of Ventura,California to lease five battery-powered Ford EV Ranger pickup trucks for three years 2. Appropriate $75,400 of Petroleum Violation Escrow Account(PVEA) grant revenue and $4,800 from the unappropriated balance of the general fund to a new CIP project account to cover the cost of the lease and the installation of charging stations DISCUSSION Background In January 1998 grants from the state Petroleum Violation Escrow Account (PVEA)became available for cities to try out alternative-energy technologies that can reduce air pollution and dependency on fossil fuels. State Senator Jack O'Connell requested that the City of San Luis Obispo apply for such a grant and worked to ensure approval of the City's application. In February 1998 the Council approved an application for a Petroleum Violation Escrow Account (PVEA)grant to operate the Connector shuttle bus service. The Connector was a demonstration project to show the feasibility of battery-powered bus service by operating a shuttle between the downtown and the Madonna Road shopping areas for a period of 18 months. In September 1998 the Council approved a work statement as a part of the PVEA grant application for the project, which was then submitted to, approved and executed by the California Energy Commission(CEC). The Connector started operating in October 1998. After eight months,a new staff at the CEC ordered the City to stop the Connector service because they decided such service was now not an eligible PVEA grant activity. With three quarters of the original PVEA grant available,Public Works worked with the new CEC staff to find an eligible project so that the remaining money could be used. Leasing battery-powered electric vehicles was the best option. As a result,the CAO executed an amendment to that effect on April 17,2000,and the CEC followed with its approval on May 1,2000. CM Council Agenda Report—Lease of Battery-Powered Pickup Trucks Page 2 Analysis of Available Battery-Powered Light-Duty Vehicles Public Works looked at four battery-powered light-duty vehicles now available on the market. The following table summarizes findings. Nfake/ModeVrype Power Plant Findings Dodge EV Caravan Battery-powered electric Currently not available. The U.S. (minivan) motor Postal Service recently acquired all available EV Caravans for fleet use across the coup Ford EV Ranger Battery-powered electric Available 6-10 weeks after executing (pickup) motor lease agreements. Honda Insight Hybrid(battery-powered PVEA grants cannot be used to lease (sub-compact) electric motor and hybrid vehicles. Practicality for City gasoline engine) use and vehicle handling are additional concems. Toyota EV RAV4 Battery-powered electric Not available until mid-2001. Toyota (mini sport-utility vehicle) motor is working on a revised charging station. The results of this analysis showed that only one vehicle is available: the Ford EV Ranger. Lease Agreement At this time it is not possible to purchase EV Rangers. They must be leased from a Ford dealer. Also,EV Rangers are available with either nickel metal hydride or lead-acid batteries. Public Works is recommending vehicles with nickel metal hydride batteries because their range is 60 to 75 percent greater than vehicles with lead-acid batteries. The only dealer within 150 miles that has EV Rangers with nickel metal hydride batteries is Barber Ford of Ventura,so this is a sole source procurement Barber quoted a one-time cost of$15,640 per vehicle for a three-year,closed end lease. This lease includes unlimited mileage, a bumper-to- bumper warranty,and 100-mile roadside assistance. Service and warranty work would be provided through Perry Ford of San Luis Obispo. (Peng leases and services EV Rangers but cannot famish vehicles with the preferred nickel metal hydride batteries.) Public Works is recommending that the City Administrative Officer be authorized to submit the commercial application and execute the lease agreement with Barber Ford. Use of Vehicles Technically,this procurement is a temporary fleet expansion,because PVEA grant regulations prohibit fleet replacement. Section 405-E of the Finance Management Manual states that the City will incorporate altemative-fuel vehicles and equipment into its fleets when such vehicles and equipment meet the criteria shown on the next page. C3-2 Council Agenda Report—Lease of Battery-Powered Pickup Trucks Page 3 ■ Will produce less air pollution and use less fossil fuel than comparable conventional-fuel vehicles and equipment ■ Will not compromise fleet safety,utility and reliability ■ Can be fueled or recharged locally ■ Can be serviced economically and locally ■ Have an acquisition cost not more than 20 percent above the cost of comparable conventional-fuel vehicles and equipment ■ Have a maintenance cost not more than 20 percent above the cost of comparable conventional-fuel vehicles and equipment The primary purpose for leasing the Ford EV Rangers with the PVEA grant is to demonstrate the feasibility of permanently incorporating battery-powered vehicles into the City's fleet. That feasibility will be established if these vehicles can meet all the criteria listed above from Section 405-E. Public Works will monitor the performance of these vehicles over the lease period and report the results to the Council. These results will help determine where battery-powered vehicles might be appropriate for fleet replacement. Because recharging must usually take place overnight,the charging station for these vehicles must be in a secure location,and the Corporation Yard would be the site easiest to make secure. For this reason,the EV Rangers should be used primarily by employees at the Corporation Yard. Public Works is recommending initial assignment of these vehicles to three maintenance supervisors and to two seasonal inspectors,who work about six months a year during the heavy construction season. The vehicles now used by the three maintenance supervisors will be used to supplement the vehicle pool at 955 Morro. Based on experience at this location,other charging stations may be installed so that other employees may use these vehicles. FISCAL EMPACT Project Costs: Cost of Leasing Four EV Rangers $78,200 Cost of Installing Charging Stations +2,000 $80,200 Project Revenues: Total PVEA Grant Available $100,000 Less Cost of the Connector Service -24,600 PVEA Grant Available for Vehicle Lease $75,400 General Fund Appropriation +4,800 $80,200 Charging stations are furnished with the vehicles,but the PVEA grant cannot pay for installation of the stations. C3-3 T Cound[Agenda Report=Lease of.Battery-Powered.Pickup Trucks Page 4 _ Attiid5hents 1. MEM=98L--027 City of San Luis Obispo.ElectricBatter -Powered Vehicle.Program Work. Statement Amendment:#2 2. MEM-98-027-City of-San Luis Obispo Electric Battery. Powered Vehicle Program Budget 3.. Lease Price-Quotation Lem of Bawy-Powered Pidi ipTnwks C3-4 ATTAMENT 1 MEM-98"27 CITY OF SAN LUIS OBISPO ELECTRIC BATTERY POWERED VEHICLE PROGRAM WORK STATEMENT AMENDMENT#2 This project shall be conducted in accordance with the Recipient's State Energy Plan(SEP)grant application and any amendments as approved by the Department of Energy and this grant agreement. The Recipient's SEP grant application and any amendments are attached hereto and expressly incorporated as part of this agreement. In the event of a conflict or inconsistency between the terms of this grant agreement (and its incorporated documents) and the Recipient's grant application,this grant agreement shall be considered controlling. The purpose of this amendment is to amend the work statement and budget to reflect the lease and/or purchase of electric vehicles under this grant agreement. Specific tasks,program plans, accomplishments and due dates are as follows. Task 1: Lease and/or purchase electric vehicles Product: Lease agreements and/or contracts for electric vehicles. Product Description: Purchase orders, lease agreements and/or contracts shall be sent to the Commission's Project Manager for review. Due Date: Task 2: Prepare and Submit Final Report Product: Final Administrative Report Product Description: Prepare final administrative report in accordance with the grant terms and conditions and submit to the Commission Project Manager for review and approvai. Due Date: Draft is due 60 days before the end of the project term. City of San s Obispo City Administrative Officer Date o� 46 g Ao California Energy Commission Project Manager D e /. forma Fiergy Commissio6 Grants &Loans Officer Date C3-5 ATTACHMT 2 MEM-98-027 CITY OF SAN LUIS OBISPO ELECTRIC BATTERY POWERED VEHICLE PROGRAM BUDGET Salaries $ -0- Benefits $ -0- Travel $ -0- Consultants $ -0- Contractual Bus lease $24,624 Lease/purchase vehicles $75,376 Total $100,000 C3-6 04/06/00 09:24A P.002 A ITAC3 NT 3 199TRANGER E V - Nickel Metal Hydride California State Lease Customers $14,582 ONE-TIME LEASE PAYMENT —OR~ $5,201 TB EE ANNUAL PAYMENTS ~OR~ $4541month LEASE ♦ 36 month, closed-end lease ♦ Unlimited Mileage ♦ Bumper-to-Bumper Warranty 100 Mile.Roadside Assistance ♦ Includes Power Control Station ♦ Includes Spare Tire and Jack Features ♦ 90 horsepower, 940 fLAbs. torque; 3-phase AC electric motorisingle speed transaxle ♦ Range: 65-85 miles • 25 NIMH 12-vok modules; 300 volt system ♦ Payloa& 1,250 lbs. (Gvw: 5300) ♦ Energy Capacity Rating (FURS): 28 KWH (25 KWH at 90% discharge) CaA your authorized Ford EV Dealer or 1-800 ALT FUEL for details C3-7