HomeMy WebLinkAboutE-5 Staff Report - Lease of Electric Vehicles MSRC GrantCONSENT ITEM
E-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES
DATE: MAY 6, 2024
SUBJECT: AUTHORIZE LEASE AGREEMENT FOR THREE (3) ELECTRIC VEHICLES AS
PART OF THE MOBILE SOURCE REDUCTION COMMITTEE (MSRC) LOCAL
GOVERNMENT MATCH PROGRAM
BACKGROUND:
Staff applied for and received a grant for $55,000 from the South Coast Air Quality Management
District (SCAQMD) Mobile Source Air Pollution Reduction Review Committee (MSRC)
Local Government Match Program for the purchase of three light-duty zero emission vehicles and one
heavy-duty, near-zero emission vehicle. Due to the pandemic and subsequent difficulty in procuring
materials for the required infrastructure, the purchase of these vehicles was put on hold.
Materials are now available for the infrastructure and the installation process is underway. Therefore,
we are now ready to purchase the three light-duty electric vehicles. These vehicles will be utilized
by Community Resources staff to attend meetings, conduct work activities, transportation to events
and activities all over the city and beyond, on an as needed basis, rather than using their personal
vehicles or borrowing vehicles from other departments, which are sometime not available. We
have not been successful in locating a heavy-duty vehicle that is compliant with the near-
zero/zero emission requirement and therefore will not be moving forward with the purchase of that
vehicle at this time.
RECOMMENDATIONS:
Staff recommends that City Council take the following actions:
1)Waive competitive bidding as authorized under Azusa Municipal Code Section 2.521(a) and
approve the lease agreements with Enterprise Fleet Management for the lease of three (3)-2024
Nissan Leaf S 4dr Hatchbacks through the use of a bid with TIPS-USA; and,
2)Authorize the City Manager to execute the lease agreements with Enterprise Fleet Management.
Item Pulled
Continue at Next Meeting
Lease Agreement for 3 Electric Vehicles
May 6, 2024
Page 2
ANALYSIS:
In mid-2018, Staff applied for and was awarded a grant in the amount of $55,000 from the SCAQMD’s
MSRC Local Government March Program. It was anticipated that the grant would fund a portion of
three (3) light-duty zero emission vehicles and one (1) heavy duty near-zero emission vehicle.
Simultaneously, Light and Water purchased eight electric vehicles and a needs analysis determined that
the infrastructure wasn’t in place to support additional electric vehicles at that time. Subsequently, the
pandemic was upon us and materials to complete the infrastructure and the vehicles themselves became
difficult if not impossible to procure. Purchase of these vehicles was put on hold until need existed and
materials became more readily available. The necessary materials are now available and installation of
the charging infrastructure is in process for the light-duty vehicles where Community Resources Staff
are housed. The availability of near zero-emmission heavy-duty trucks is still limited and therefore Staff
has been unable to identify a truck that would satisfy the grant requirements. Staff will continue to
research available options and will return to City Council for approval of that purchase if one can be
identified.
Community Resources staffmembers frequently travel in the course of completing work duties. The
addition of programming focused on providing recreational and community services in multiple
locations in Azusa, has also added to the need for transit when a bus is not available or not needed based
on capacity. Adding fully electric vehicles to the fleet will enable staff to utilize the vehicles to complete
work assignments and tasks while also working toward the long term goal of a fully electric fleet.
The purchase through Enterprise is still structured as a Lease in order to allow participation in the
maintenance program and the opportunity to replace the vehicle at the end of the five year period.
FISCAL IMPACT:
Each Nissan Leaf light-duty, zero emission vehicle is $34,046.63, including the 5-year maintenance
program. The grant matches dollar for dollar up to $10,000 each for three. The total expenditure for
three vehicles would be $102,139.89 with $30,000 being reimbursed once the grant requirements are
met. These vehicles are eligible for and the grant requires that the matching funds be AB2766 funds (27-
25-523-000-7135). Upon Council approval, staff will prepare a budget amendment.
Prepared by: Reviewed and Approved:
Nikki Rosales Miki Carpenter
Senior Management Analyst Director of Community Resources
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachment:
1) Enterprise Fleet Management – Quote 7923087
Attachment 1