HomeMy WebLinkAboutD-2 Staff Report - Lease of Electric Vehicles MSRC GrantSCHEDULED ITEM
D-2
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MIKI CARPENTER, DIRECTOR OF COMMUNITY RESOURCES
DATE: JUNE 3, 2024
SUBJECT: AUTHORIZE LEASE AGREEMENT FOR THREE (3) ELECTRIC VEHICLES AS
PART OF THE 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 ($30,000 of the
$55,000 grant) and one heavy-duty, near-zero emission vehicle ($25,000 of the $55,000 grant). These
grant funds are intended to maximize the AQMD allocated funds that the City already receives, and are
managed within the Community Resources budget. Due to the prior shortage of vehicles and charging
infrastructure, the purchase of these vehicles was put on hold.
Materials are now available, and charging station installation is underway. This Council action would
authorize the purchase of three of the four vehicles allowable under this grant. Vehicles now available
are 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,
rather than Staff using personal vehicles, or borrowing vehicles from other departments, which are
sometimes not available. A heavy-duty vehicle that is compliant with the near-zero/zero emission grant
requirement has not been idientified at this time, and will remain on hold, which this grant allows.
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.
Approved
City Council
June 3, 2024
Lease Agreement for 3 Electric Vehicles
June 3, 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. At that
time, the infrastructure required to support these additional electric vehicles was not sufficient.
Subsequently, the pandemic was upon us and materials to complete the infrastructure were in short
supply, and the vehicles themselves became difficult to procure. Purchase of these vehicles was put on
hold until 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 at Memorial Park, and
available in other areas near City Facilities. Near zero-emmission, heavy-duty trucks, which meet grant
requirements, are still unavailable.
Community Resources Staff in Recreation, Senior Services, Family Services and Transportation
Divisions, frequently travel in the course of completing work duties, to various city locations, parks, and
school sites. This travel is expected to increase throughout this year, as programs continue to expand.
These will not only be the first electric vehicles for use by Community Resources staff, they are the first
passenger vehicles, made available to staff for work related purposes.
The structure of this Lease enables a $30,000 reimbursement immediately following the execution of the
Lease Agreement, and grant requirements are met. The Agreement also includes maintenance and the
option to replace or purchase 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 for each of the three vehicles. The total
expenditure for three vehicles would be $102,139.89, from AB2766 funds (AQMD, 27-25-523-000-
7135). Under this grant, the City match for these vehicles, shall come from AQMD funds. Once all
grant documentation is completed, $30,000 of the grant funds will be reimbursed to the AQMD fund.
Upon Council approval, staff will prepare a budget amendment under account 27-25-523-000-7135.
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