Approval is requested for the award of a three-year lease agreement to Toyota Motor Sales USA, Inc., of Torrance for five Toyota RAV4 electric vehicles for the Department of Public Works Fleet Maintenance Division.

The City of Sunnyvale Alternative Fuels Project was approved by the Sunnyvale City Council in 1994 for the purpose of introducing low-emission vehicles into the City’s fleet and reducing the City’s dependence on foreign oil products. The project was based on several years of research that indicated that alternative fuel vehicles would be less polluting and as safe to use as gasoline or diesel fuels.

With the introduction of state and federal mandates, such as the Clean Air Act of 1990 and the Energy Policy Act of 1992, it became apparent that alternative fuel vehicles will be required in growing numbers to meet air quality and fuel efficiency goals. To help introduce alternative fuel vehicles into government fleets, the Bay Area Air Quality Management District made grant funding available to local agencies.

Although the City of Sunnyvale is not currently required by law to operate alternative fuel vehicles, the City has gradually placed compressed natural gas and electric vehicles into its fleet. This approach allows the city to use grant funds to offset the capital cost of alternative fuel vehicles and should place the City in an excellent position to meet future federal and state requirements.

Further, the placement of alternative fuel vehicles in the City fleet complies with the City’s Clean Air Policy and fits in with other regional air quality efforts.

During the past two years, the City has operated a leased Toyota RAV4 electric vehicle in the pool car fleet. There have been minimal problems, and the vehicle has been well received by City staff. Staff, therefore, has determined that the continued expansion of the City’s alternative fuel vehicle fleet is in the City’s best interest.

With that goal in mind, staff recently contacted four manufacturers who advertise electric vehicles with sufficient seating and cargo capacity to meet the City’s needs, and three of the four stated that either their electric vehicles were not readily available or there would be a waiting period of three years. The only dealer that responded with a reasonable delivery time was Toyota Motor Sales USA, Inc. of Torrance, California.

Section 2.08.070 (b) exempts from competitive bidding "situations where solicitations of bids or proposals would for any reason be impractical, unavailing or impossible." In this instance, bidding would be unavailing due to the unavailability of these vehicles in a reasonable time frame.

Total cost to the City for all five vehicles will be $89,200. Funds are available in Public Works Accounts #301401 and 020700.

It is recommended that Council award a three-year lease agreement to Toyota Motor Sales USA, Inc., of Torrance in the amount of $89,200 for five electric vehicles.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary Bradley
Director of Finance

Reviewed by:

Marvin Rose
Director of Public Works

Approved by:

Robert S. LaSala
City Manager