April 26, 2005

SUBJECT: Extension of an Existing Lease of Three Electric Vehicles for the Pool Car Fleet (F0404-57)

Approval is requested for a one-year extension of an existing lease with Toyota Motor Sales USA, Inc., of Torrance for three 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 alternative fuel vehicles into the City’s fleet to improve air quality and reduce the City’s dependence on foreign oil products. Several alternative fuel vehicles have been introduced into the City fleet over the past ten years and now represent 15% of passenger cars/light trucks operated by the City.

During the past five years, the City has leased five Toyota RAV4 electric vehicles from Toyota Motor Sales USA. The original contact was awarded by Council on February 29, 2000 (RTC-00-074) for a three-year period. An extension to this contract for a one-year period was awarded by Council on May 11, 2004 (RTC-04-163.)

If the vehicles and the battery and charging systems are in good condition, Toyota offers to extend the lease term by one year. Two of the five vehicles currently in operation have faulty charging systems that are no longer covered under warranty and are not economical to replace.

Since the vehicles and the battery and charging system on three of the vehicles are in good condition, staff recommends that the lease period be extended by another year for three of the vehicles. In addition to low emissions, these three vehicles have proven to be very reliable and economical to operate. The Toyota RAV4 vehicles are well suited for their intended purpose of providing local trips (100 mile driving range); and they have been well received by City Staff.

Total cost to the City to lease all five vehicles for the original three-year lease agreement and the one-year extension was $108,685. Cost for the requested additional one-year extension for the three vehicles will be $11,691, making a total contract amount of $120,376. The one-year lease and operating cost for the three electric vehicles is less than it would be for three gasoline-powered RAV 4s. Funds are available in the Fleet Equipment Replacement Account.

It is recommended that Council authorize a one-year extension of an existing lease with Toyota Motor Sales USA, Inc., in substantially the same form as the attached Lease Amendment and Extension Agreement and in the amount of $11,691, for three electric vehicles.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Marvin Rose
Director, Public Works

Approved by:

Amy Chan
City Manager

1. Lease Amendment and Extension Agreement (.pdf format)
2. Original Lease Agreement (.pdf format)