Title
A. RESOLUTION NO. 2018-008 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF TWELVE (12) HYUNDAI IONIQ BATTERY ELECTRIC VEHICLES FROM US FLEET SOURCE INC. FOR $365,088 TO REPLACE VEHICLES IN THE POLICE AND PLANNING AND BUILDING SERVICES DEPARTMENTS
B. RESOLUTION NO. 2018-009 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF THREE (3) CHEVROLET BOLT BATTERY ELECTRIC VEHICLES FROM COURTESY CHEVROLET CENTER FOR $104,707 TO REPLACE VEHICLES IN THE ENGINEERING AND PLANNING AND BUILDING SERVICES DEPARTMENTS
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
Body
SUMMARY
On October 17, 2017 the City Council approved resolution 2017-192 authorizing the purchase of fifteen (15) Nissan Leaf battery electric vehicles. Due to factors beyond the City’s control the Nissan vendor was not able to fulfill the purchase order at the quoted price and the purchase order was voided. In December 2017 the City requested bids for battery electric vehicles via Planet Bids. A review of City needs supports the purchase of twelve (12) Hyundai Ioniq Electrics and three (3) Chevrolet Bolts. The State of California is offering a $10,000 per vehicle rebate under the Public Fleet Pilot Project program. This action will ensure that the City receives the $150,000 Clean Fleet Pilot Project rebate it has been approved for by the California Air Resources Board.
The Measure P Expenditure Plan provides for the replacement of failing infrastructure and includes 15 light-duty non-emergency vehicles. The use of the Measure P fund to replace these failing vehicles with electric vehicles will provide additional benefits through reduced emissions and operational costs.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Body
Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
On October 17, 2017 the City Council approved resolution 2017-192 authorizing the purchase of fifteen (15) Nissan Leaf battery electric vehicles to replace existing failing fleet vehicles. On November 28, 2017 the City confirmed that the Nissan Leafs authorized for purchase by Council in October could not be fulfilled by the vendor at their quoted price and the purchase order was voided. After posting a request for bids through Planet Bids and reviewing the results it has been determined that two vehicle makes will best fit the City’s needs. The Hyundai Ioniq Electric will be assigned to Police and Building Services Departments as the larger cargo capacity, shorter range and lower cost best fit these Departments’ uses. The Chevrolet Bolt will be utilized in the Engineering and Building Services Departments as these vehicles will require additional range to transport staff beyond City limits.
Chula Vista voters approved Measure P - a temporary, ten-year, half-cent sales tax to fund high priority infrastructure needs. This Plan focuses on the areas where one-time funds could be used to address critical deferred maintenance or replacement of city failing assets such as the 15 identified City vehicles. Approval of the purchase will strengthen the City’s overall financial condition by avoiding costly emergency repairs or further deterioration of existing failing fleet vehicles.
The California Public Fleet Pilot Project is a set-aside within the Clean Vehicle Rebate Project that provides increased incentives for public entities that own and operate vehicles in disadvantaged communities. The Public Fleet Pilot Project rebate replaces the standard CVRP rebate for eligible public entities and offers rebates of $10,000 for up to thirty battery-electric vehicles. The City of Chula Vista is an eligible entity and the acquisitions of these twelve Hyundai Ioniqs and three Chevrolet Bolts qualify for the rebate. The anticipated rebate amount of $150,000 reduces the acquisition cost by approximately 32%.
The City will realize a reduction in unleaded fuel use of approximately 3,500 gallons annually to zero gallons for this subset of vehicles. This reduction provides two benefits, one is in environmental sustainability and the other is operating cost reduction.
The environmental sustainability benefits include a reduction in greenhouse gas emissions such as Carbon Dioxide. In Fiscal Year 2016/2017 the old vehicles emitted over 55,000 pounds of CO2 into the environment. Although the electric vehicles do not emit CO2 from an internal combustion engine there are environmental impacts associated with energy used by these vehicles and is quantified as CO2e or Carbon Dioxide Equivalent. The CO2e impacts of the electric vehicles if deployed in Fiscal Year 2016/2017 would have resulted in approximately a 73% reduction or 10,500 pounds of CO2e impact to the environment.
There is anticipated to be a 65% reduction in operational costs related to fuel/power consumption when using the electric vehicles. The fuel cost savings is estimated at $11,000 - $20,000 per year. The electric vehicles use approximately 25kWh per 100 miles driven and all 15 would have only used an estimated $2,200 in electricity in one year. Additional savings are anticipated as preventive maintenance costs related to the internal combustion engine are removed, e.g. oil filters, motor oil and emissions system parts, etc.
Chevrolet Bolt Bid Information (RFB-10-17/18)
The Chevrolet Bolt electric vehicle is the current make and model being purchased for use in the Engineering and Planning and Building Services Departments. A Request for Bid (RFB-10-17/18) was issued on December 12, 2017 to provide quotes for Chevrolet Bolt vehicles. For this particular RFB, 122 vendors were notified of the RFB and 14 prospective bidders downloaded the RFB.
The following three companies submitted quotes by the December 20, 2017 deadline:
• Courtesy Chevrolet Center
• Ron Baker Chevrolet
• Selman Chevrolet
The selection process involved a review to determine if the quote conforms to the solicitation and if the quote is considered to be in the best interest of the City, with price, warranty and delivery being considered. Based on this evaluation, the Public Works Department recommends purchasing Chevrolet Bolt vehicles from Courtesy Chevrolet Center.
This vendor was selected because they are the lowest bidder at $32,236 sale price per vehicle. On January 5, 2018, a notice of intent to award to Courtesy Chevrolet Center was sent to all three respondents.
Hyundai Ioniq Electric Bid Information (RFB-11-17/18)
The Hyundai Ioniq Electric vehicle is the model being purchased for use in the Police and Planning and Building Services Departments. A Request for Bid (RFB-11-17/18) was issued on December 12, 2017 to provide quotes for Hyundai Ioniq Electric vehicles. For this particular RFB, 125 vendors were notified of the RFB and 9 prospective bidders downloaded the RFB.
The following company was the only vendor to submit a quote by the December 20, 2017 deadline:
• U.S. Fleet Source, Inc.
In addition to being the sole bidder, this vendor was selected because U.S. Fleet Source, Inc. is the exclusive Hyundai fleet sales vendor in the region and offers fleet discounts not available to retail vendors and holds inventory to meet large quantity orders. Based on this information, the Public Works Department recommends purchasing Hyundai Ioniq Electric vehicles from U.S. Fleet Source, Inc.
This vendor offers the Hyundai Ioniq Electric at $28,105 sale price per vehicle.
Public Fleet Pilot Project Rebate
The benefit of the California Public Fleet Pilot Project (PFPP) rebate of $10,000 per vehicle is summarized in the following table:
Summary of Vehicles Being Replaced
The new electric vehicles are replacing fleet vehicles that are failing and do not contribute to the City’s environmental sustainability goals. The following table provides a summary of the vehicles planned to be removed from service:
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18705.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the goal of providing Healthy Communities, as having service vehicles that reduce greenhouse gas emissions in accordance with the City’s Climate Action Plan and are in good working condition that allow staff to maintain and operate community and neighborhood facilities.
CURRENT YEAR FISCAL IMPACT
The total cost including taxes is $469,795 before the anticipated State rebate of $150,000 is applied. Sufficient funds have been budgeted in the Measure P Expenditure Plan adopted by City Council for this purchase.
ONGOING FISCAL IMPACT
Since these are more efficient replacement vehicles, there is an anticipated savings to General Fund.
ATTACHMENTS
None
Staff Contact: Steven Knapp, Fleet Manager, Public Works