PROPOSAL:

Execute Lease of Two Electric Vehicles:

SYNOPSIS:

AQMD frequently demonstrates new clean-fuel vehicles to public and private organizations so that potential purchasers may familiarize themselves with available low-emission clean fuel technologies. This is especially needed for EVs which are very different from conventional vehicles due to their limited range and need for charging infrastructure. It is proposed that the AQMD l ease two new EVs: Honda EV PLUS and Toyota RAV-4 EV. The total cost of these multi-year leases will not exceed $42,000.

COMMITTEE:

Technology, September 26, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute two leases for EVs: one Honda EV PLUS and one Toyota RAV-4 EV for a total amount not to exceed $42,000.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

The AQMD operates a number of alternative fuel vehicles (AFVs), including those powered by electricity (EVs), compressed natural gas (CNG), liquefied petroleum gas (LPG), and methanol (M85). Most of these vehicles are utilized by AQMD inspectors and form part of the AQMD’s motor pool. Many of these vehicles perform "double duty" as part of the AQMD’s carpool program.

Various AQMD-owned AFVs are used by the Technology Advancement office to demonstrate new clean-fuel vehicles to public and private organizations so that potential purchasers may familiarize themselves with available low-emission technologies. This is especially needed for EVs which are very different from conventional vehicles due to their limited range and need for charging infrastructure. These vehicles are also used by AQMD staff for demonstration and display at meetings, conferences and workshops.

Original equipment manufacturers (OEMs) have introduced, or will shortly be introducing, new EVs. These include Chrysler, Ford, General Motors, Honda, Nissan and Toyota. General Motors has agreed to loan the AQMD an EV1 for a period of one year. This EV is expected to be made available in October 1997. Other manufacturers have been contacted but were unwilling to loan their EVs, preferring to sell or lease them.

Proposal

Staff recommends that the Board authorize the leases of the following two EVs:

Honda EV PLUS (passenger car)
Toyota RAV-4 EV (passenger car)

EV technology is evolving. Longer-range EVs are expected to be available in future years. In order to have the most-advanced EVs available for demonstration, leasing of these EVs is proposed in lieu of purchase.

These proposed leases (projects) are included in the Technology Advancement Plan for the Clean Fuels Program under item 97M1-3, "Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications."

Sole-Source Justification

Section II, Section 3(C) of the Consultant Selection Policy and Procedure, identifies four provisions under which the Executive Officer may award a sole-source bid: (1) cost to prepare documents exceeds cost for consultant; (2) delay would result in the endangerment of public health; (3) services are only available from sole-source; and (4) other circumstances exist identifying sole-source as in the best interests of the AQMD. This request for sole-source award is made under provision (4).

One of each type of available OEM EV passenger car is to be procured. (The General Motors EV1 will be procured under a cost-free loan.) These EVs will be leased through dealerships under terms specified by the OEM. For this reason, a competitive request for proposals for leasing these EVs would not yield any cost savings but would increase AQMD administrative costs. Therefore, it is in the best interest of the AQMD to sole-source these EV procurements.

Resource Impacts

The total cost for a three-year lease of an OEM EV passenger car with advanced batteries is approximately $21,000. The total cost for leasing two EVs will be approximately $42,000. Sufficient funds are available in the FY 1997-98 Budget under Professional and Special Services and will be transferred to the Rents and Leases of Equipment account to fund these leases.

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