HomeMy WebLinkAboutAGENDA REPORT 2013 0717 CCSA REG ITEM 10H ITEM 10.H.
City Councb Meeting
o,� x-17&13 r,
MOORPARK CITY COUNCf' � iQ"' �+ -
AGENDA REPORT `S r �"
TO: Honorable City Council
FROM: Jessica Sandifer, Management Analy
DATE: July 9, 2013 (CC Mtg. July 17, 2013)
SUBJECT: Consider Release of Request for Quotation (RFQ) for Purchase of
a Plug-in Hybrid Electric Vehicle
BACKGROUND
Staff recently conducted research on the feasibility of purchasing an all-electric vehicle
versus a plug-in electric hybrid for use as a pool car or other use as determined
necessary. Research focused on four commercially available all electric plug-in
vehicles: the Ford Focus Electric, Honda Fit EV, Nissan Leaf, and Mitsubishi MiEV and
two plug-in electric hybrids: the Chevrolet Volt and the Toyota Prius-Plug in. Based on
this research, staff believes that a plug-in electric hybrid would be better for the City's
use at this time.
DISCUSSION
Battery-Only Electric Vehicles: When comparing battery-only electric vehicles (EV) to
each other they all have similar mileage ranges at the high end and similar charging
times when paired with a tier two charger (such as the charger recently installed at City
Hall). The exception being the Mitsubishi MiEV which has a longer charge time and a
lower mileage range than the other three cars reviewed. The pricing is similar, however
the Ford Focus Electric and Honda Fit EV are on the higher end of the spectrum with
the Nissan Leaf and Mitsubishi being at the lower end. Motortrend magazine noted that
dependent upon selected options, the average EV owner is paying $31,000 (before
federal and state tax credits.)
There are some negatives to EV use in a City application, either as a pool car or other
use. The most important thing to note about EV's is that the listed top mileage is only
achieved under optimal conditions. Meaning a pleasant spring day, not to hot, not to
cold, with a conservative driver behind the wheel and on a flat road. When these are not
the conditions the vehicles travel range can get as low as 25 miles. This lack of stability
in driving ranges is known in the industry as "range anxiety". When reading test drive
124
Honorable City Council
July 17, 2013
Page 2
reviews many reviewers noted the sense of stress they felt when driving the vehicle
and watching the on-board driver notification systems indicate that battery range was
fluctuating from 25 miles of range to 45 range and back again causing test drivers to
wonder if they would make it to their destination. As a pool car, an EV would have to be
limited to use within Ventura County. Any use beyond this County would entail mapping
out charger locations prior to travel, to make sure the locations existed. Which brings us
to the other negative: lack of charging infrastructure. Although the installation of public
chargers is making great strides, it can still be difficult to find them and they are not
always convenient to the route you want to take. For example, when driving a battery-
only electric vehicle to the County Government Center, there are 13 blink point and
chargepoint chargers within Ventura, but they are located mostly around the harbor and
beach areas, plus having a three to four hour charge window can lead to loss of
productivity if an employee has to charge the vehicle prior to the return trip.
In terms of difference between the EV's, the Ford Focus Electric vehicle has a liquid
cooled/heated battery which is intended to stabilize the range of the EV. As noted
above, temperature can have an effect on the range output of the EV batteries, the
liquid cooling and heating is intended to keep a steady temperature around the battery,
hence stabilizing range. This technology is new, so it is unclear if it will have the range
stabilization effect once the general population starts logging EV miles, however, when
tested the results were very promising.
Plug-in Electric Hybrids: A plug in electric hybrid vehicle (PEHV), has the ability to run
exclusively on battery power and when that runs out, some type of gasoline powered
motor takes over. The two most popular PEHV's are the Chevrolet Volt and the Toyota
Prius Plug-in. The Volt differs from the Prius Plug-in because the Volt is run entirely by
electric motors. When the battery runs out of power a gasoline generator kicks in and
runs the electric motors and continues powering the vehicle. The Prius Plug-in has a
larger battery that allows it to operate on all electric mode up to 62 mph (vs 30 mph in
the traditional Prius), before the gasoline engine (the same as found in the traditional
Prius) takes over. The all electric range of the Volt is reported to be 38 miles and the all-
electric range of the Prius is 15 miles. (Again, as noted with the EV's above this range
varies depending upon driving conditions and driver). However, both vehicles can be
driven as gasoline powered vehicles and post an average of 45 to 50 mpg when driven
with gasoline. The benefit to these vehicles is when they are used on short trips around
town, they run on all electric power, but due to their gasoline options, the use of the
vehicle does not have to be confined to the surrounding County. The Prius Plug-in is
slightly cheaper than the Volt and has a shorter charging time than the Volt, primarily
due to the low all electric range. If the Prius had the same all electric range as the Volt,
the charging time would likely be the same.
125
Honorable City Council
July 17, 2013
Page 3
Given the facts noted above, staff feels that at this time it is not practical to use a
battery-only electric vehicle for a pool car. The potential for employees to be stranded
due to uncertain vehicle ranges is high. Also the fact that it can take three to four hours
(depending on battery depletion) to fully charge the vehicle, may mean it is only
available for one trip per day, depending on driving conditions and distance traveled.
For use as a pool car, it appears most practical to select a plug-in electric hybrid, so that
the majority of the power used in the vehicle would be electric, but in instances where
the vehicle runs out of battery power, or is needed to go the distance the option of
converting to gas power is available.
The Toyota Prius Plug-in is less costly than the Chevrolet Volt, however, in terms of
selecting a vehicle that runs in all electric mode for a longer time period, the Volt would
be the better choice. The fact that it has a longer all electric range and uses a gas-
powered generator to run electric motors, makes it a closer cousin to the battery-only
electric vehicles than the Prius Plug-in and makes it a natural next step for the City
towards a battery-only electric vehicle.
FISCAL IMPACT
PEHV's are expensive, and each year new technologies are developed that make them
drive further distances and charge faster. Staff feels that moving towards low or carbon
neutral vehicles for the City's fleet, is a solid way to lower the City's carbon footprint as
well as the operation and maintenance costs for fleet vehicles. The following is a
breakdown of the estimated 36 month lease/purchase operation cost of the Volt, a
regular hybrid vehicle such as the Prius currently used, and a standard gasoline car.
The breakdown assumes the following for all three vehicle types: 10,000 mile per year
operation, average $4.00/gallon gasoline costs, and the same oil change costs, and tire
needs based on current pool car maintenance practices. All assumptions relevant to the
Volt and electricity use are estimates based on manufacturer assumptions about vehicle
performance:
STANDARD GASOLINE CAR
Purchase Cost: $14,655
Gasoline costs approximately $1,332/year x 3 years=$3,996
Oil changes at 3 per year = $210/year x 3 years = $630
Tire Change once every three years= $300
Brakes once in a 3 year period =$200
TOTAL 3 YEAR COST TO PURCHASE/OPERATE: $19,781
126
Honorable City Council
July 17, 2013
Page 4
TOYOTA PRIUS HYBRID
Purchase Cost: $21,198
Gasoline costs approximately $888/year x 3 years =$2,667
Oil changes at 2 per year = $140 x 3 years = $420
Tire Change once every three years = $300
Brakes $0*
TOTAL 3 YEAR COST TO OPERATE: $24,585
CHEVROLET VOLT
Estimated Lease Cost: $12,240
(estimates assume 8,000 miles on battery power and 2,000 miles on gasoline power)
Gasoline costs approximately $160/year x 3 years =$480
Electricity costs approximately $378/year x 3 years = $1,134
Oil Change once per year $70/year x 3 years = $210
(Oil changes could be once every two years per manufacturer)
Tire Change once every three years = $300
Brakes $0*
TOTAL 3 YEAR COST TO OPERATE: $14,36 4
*The regenerative braking on hybrids makes for long wearing brakes, neither of the current hybrid Prius's
has had a brake service to date.
The assumptions about the Volt are based on manufacturer claims and test drive data.
Unfortunately, the Volt has not been in operation long enough to compile data regarding
true costs of ownership. In consideration of this fact, staff is recommending a closed-
end lease of the vehicle. For less than half the cost of the vehicle MSRP, a lease will
allow the City to see if the PEHV actually costs less to operate and test the reliability
and usability of the vehicle, to determine whether or not it would be a good option to
pursue for future fleet car use, without committing to the vehicle for an extended term.
The mileage constraints of a lease are not a concern considering the low overall
mileage of the City's pool cars. Only one pool car was driven 10,000 miles last year, the
remaining pool cars were 4,000 miles or less for the year. Staff is estimating that the
cost of a 36—month lease with downpayment and fees to be around $12,240 for the
term of the lease. Traffic System Management (TSM) Funds (2001) are proposed to be
used for the lease cost.
Staff has prepared a Request for Quotation (RFQ) for a Chevrolet Volt. In general, the
RFQ requests a cost for a 36-month low-mileage lease for a standard white Chevrolet
Volt with tan interior. Staff has also included a request for an optional monthly lease
payment that would include standard vehicle maintenance during the lease term, as
long as the service location is within five miles of the delivery location. An appropriation
of funding is not needed at this time.
127
Honorable City Council
July 17, 2013
Page 5
STAFF RECOMMENDATION
Approve release of the RFQ for lease of a Chevrolet Volt.
Attachment: RFQ for Chevrolet Volt.
128
ATTACHMENT
�
City o o
F v
O
a m
PARKS, RECREATION &COMMUNITY SERVICES DEPARTMENT
R'reo '°y 799 Moorpark Avenue, Moorpark, California 93021 (805)517-6227 fax(805)532-2550
July 23, 2013
REQUEST FOR QUOTATION FOR LEASE OF A CHEVROLET VOLT
The City of Moorpark is interested in leasing the following:
• ONE (1) 2013 CHEVROLET VOLT
BID DUE DATE:
Please submit your sealed bid (along with supporting materials) on the Bid Form
enclosed. All bids shall be received prior to 9:00 a.m. on Tuesday, August 6, 2013
according to the official time at Moorpark City Hall, at which time they will be publicly
opened and read. Bids shall be sealed and marked "Sealed Bid: Volt - DO NOT OPEN
WITH REGULAR MAIL."
If you should have any questions regarding these bid documents, please contact the
undersigned at (805) 517-6225.
Sincerely,
Jessica Sandifer
Management Analyst — Sustainability Coordinator
Community Development Department
799 Moorpark Avenue
Moorpark, CA 93021
JANICE S. PARVIN KEITH F. MILLHOUSE ROSEANN MIKOS, Ph.D. DAVID POLLOCK MARK VAN DAM
Mayor Mayor Pro Tern Councilmember Councilmember Councilmember 129
INSTRUCTIONS TO BIDDERS
1. BID INFORMATION
Vendors may bid on the following item(s):
In recognition of the rapidly changing technology in the electric vehicle market, the City
is interested in leasing the specified vehicle. Lease terms should be:
• 36 month term
• Closed end lease
• Low or no initial down payment
• Low-mileage Lease (8,000 to 10,000 miles/year)
The delivery and lease arrangements are to commence June 27, 2013. Bidder
proposal is to include a copy of the vehicle lease financing terms including any
required down payments and additional mileage fees that may be assessed if the
vehicle is driven over the allotted mileage amount.
Vehicle Specifications
Vehicle should come equipped as follows:
• Exterior Color— Summit White
• Interior Color— Jet Black
• All standard vehicle options
• Full Warranty
**Option**
• Include an optional lease rate that includes Vehicle Standard Maintenance
Plan for lease term. Maintenance to include oil changes, tire rotations, and
other standard maintenance not covered by the warranty.
Delivery requirements:
• Vehicle must be clean when delivered with a full charge and a full tank of
gas and all stickers removed. City to receive a copy of the MSRP window
sticker for its files.
• Bidder agrees to provide training on the vehicle to selected City personnel.
• The City will provide insurance for the vehicle as required by the lease
documents.
2. GENERAL REQUIREMENTS
A. Bids should be submitted on the Bid Form attached. Additional sheets may be
130
attached for the purpose of itemizing or clarifying the bid, but the total bid amount
shall be shown on the City Bid Form.
B. The Specifications for the items, which have the appropriate affirmative
statement or clarification next to each item, shall become a part of the bid.
C. The total lease price shall be quoted F.O.B. Moorpark (all transportation charges
fully prepaid). The bid shall include California sales tax.
D. The deadline for submittal of bids is 9:00 a.m. on Thursday, June 27, 2013.
E. All bids shall be sealed and marked "Sealed Bid: Volt- DO NOT OPEN WITH
REGULAR MAIL"
F. All bids received shall be firm offers, good for sixty (60) days from the date of the
bid opening.
G. Each bid will be submitted and received with the understanding that the
acceptance by the City of Moorpark of the bid to furnish and deliver the items bid
shall constitute a contract between the successful bidder and the City which shall
bind the successful bidder on his part to furnish and deliver at the price(s) bid
and in accordance with the provisions of these Instructions and the Specifications
for those items bid.
H. The City reserves the right to accept or reject any and all bids and to award a
contract to the bidder who best meets the needs of the City. This may include
waiver of minor irregularities or discrepancies, or nonconformity to the
specifications. Purchase shall be on a best buy basis after due consideration of
all relevant factors, including, but not limited to, workmanship, accessibility of
parts and service, known evidence of manufacturer's responsibility and record,
durability and known operational record of product, price, delivery time, and
suitability and conformity to City needs and requirements.
I. As with other items listed in the specifications, the bidder may adjust the date of
delivery. However, bidders are advised that the award of the contract shall be
based upon several factors including both price and the date of delivery.
J. All "Standard Equipment" shall be considered included in the bid price. The
successful bidder shall supply all items advertised as "Standard Equipment" even
if such items are not stipulated in the specifications, unless otherwise clearly
excepted in the bid.
K. All applicable sales tax shall be included in the bid price.
L. All materials, workmanship and finish entering into the construction of the
equipment must be of high quality and must conform to the character of the
131
equipment and the service for which it is intended to be used and shall be
produced by use of current manufacturing processes. "Seconds", factory rejects
and substandard goods are not acceptable.
M. The successful bidder shall adhere to the delivery date in the specifications as
stipulated or adjusted by the bidder. Failure to meet said delivery date may result
in the cancellation of the contract.
N. These instructions shall become part of each bid submitted and shall be
considered a part of the purchase contract for the items selected.
132
CITY OF MOORPARK
BID FORM
June 27, 2013
Bidder: Date:
Address: Contact:
Phone:
2013 Chevrolet Volt
Vehicle Price $
Fees $
(including tax, finance fees, doc., lic., delivery)
Required downpayment, if applicable $
Monthly Lease Rate* $
*attach copy of finance/lease documents with bid
Optional Monthly Lease Rate $
Annual Mileage Limit
Delivery Date (21 days or less preferred)
Remarks:
The undersigned hereby stipulates that he/she has read and understands the terms and
conditions set forth in the Instructions to Bidders and the Specifications for the items bid, and if
selected by the City of Moorpark, will supply the items bid for the total cost stated herein.
Company:
Sales Agent:
Signature:
Date:
133
GENERAL
All pre-delivery service and warranties shall be provided (attach a copy of applicable
guarantee provisions).
Vehicle must be equipped with air pollution and exhaust emission control apparatus,
meeting current Federal and State of California requirements.
Vehicles and accessories shall conform to the California Vehicle Code, Department of
Transportation, and if applicable, to the Safety Orders for the Division of Industrial
Safety, and current requirements of OSHA.
Vendor shall furnish three copies of billing invoice and application for registration of new
vehicle.
Vendor shall fill out application of new vehicle per sample attached.
DELIVERY SHALL BE MADE WITHIN TWENTY-ONE (21) DAYS OF THE DATE OF
PURCHASE.
Delivery: City of Moorpark
Ashraf Rostom
627 Fitch Avenue
Moorpark, CA 93021
(805) 517-6362
134