Item Coversheet
City of Independence
AGENDA ITEM COVER SHEET
Approved

Agenda Title:

Council action is requested to purchase ten (10) electric vehicles from Cable Dahmer Chevrolet. 

Recommendations:

Staff recommends approval for issuing a purchase order.

Executive Summary:

This item is a revision of a Consent Agenda Item titled Contract for Electric Vehicles & Charging Stations that was remanded back to staff for revision at the September 4, 2018, City Council meeting, and remanded again at the September 17, 2018 meeting with a directive from City Council to separate the electric vehicle component from the charging station component.  Approval of this item would result in the purchase of 10 electric vehicles from Cable Dahmer by Independence Power & Light, 9 of which would be leased to the General Fund fleet pool. 
Background:

This item is a revision of a Consent Agenda Item titled Contract for Electric Vehicles & Charging Stations that was remanded back to staff for revision at the September 4, 2018 City Council meeting, and remanded again at the September 17, 2018 City Council meeting with a directive from City Council to separate the electric vehicle component from the charging station component.

On February 5, 2018, the Independence City Council passed Resolution No. 6290 declaring the City Council's Commitment to establishing the City of Independence as the Greenest City in America; and reaffirming the City's support for renewable electric energy, protection of the natural environment, waste reduction, responsible development, public education on environmental issues, and other practices contributing to environmental sustainability in Independence. This item is a response to that resolution.

 

On April 27, 2018, the Procurement Division issued Invitation to Bid (ITB) 125-18 for the purchase of all-electric and hybrid electric sedans.  Of the 45 potential bidders of the ITB, 17 accessed the ITB.  Bids were received from Cable Dahmer Chevrolet and MC Power Companies (bid tabulation attached). 

 

The RFP did not request a proposal to bundle electric vehicles and charging stations, but MC Power offered an option to lease, as a bundle, a quantity of 10 vehicles and 10 networked charging stations for five years. A request to negotiate the offer was issued to MC Power, and MC Power confirmed to the proposal to lease 10 vehicles and 10 stations at the same price.

Staff was directed, following the September 4, 2018, City Council meeting, to solicit a Best and Final Offer (BAFO) from all four respondents that had proposed leasing networked charging stations, to give each the same opportunity to submit a proposal and pricing for 10 vehicles and 10 networked charging stations. EV Connect was the recommended as the low bidder based on the BAFO, but City Council directed staff to separate the two procurement opportunities.

 

When separated from the charging stations, purchase of the 10 all-electric vehicles from Cable Dahmer is the most cost-effective outcome if the City Council wishes to proceed with all-electric vehicles in the spirit of Resolution No. 6290.

 

The Fiscal Year 2018-19 Adopted Budget includes $75,000 for the replacement of severely antiquated fleet in the General Fund, the primary recipient of which would be the Community Development Department. If the City were to only purchase electric vehicles within this cap, funding would allow for the purchase of two electric vehicles.  However, given that these vehicles are year-end clearance models, the City has an opportunity to acquire them at a lower price. Moreover, switching over to the new 2019 model would result in a multi-month wait time.  As such, staff is recommending that Independence Power & Light help facilitate the purchase of the 10 vehicles, with the General Fund making annual payments of $75,000.00 to Power & Light. Such a maneuver not only helps facilitate the acquisition of the 10 vehicles, but would also earn more interest on idle funds for IPL and would have the additional benefit of selling electricity to the General Fund to charge the vehicles.

 

At the request of City Council, staff solicited unofficial quotes to try to compare gasoline vehicles with electric or hybrid electric. A 2018 Chevrolet Malibu gasoline powered vehicle estimated MSRP price is about $27,000.00.  Research revealed there are no other gasoline powered vehicles manufactured to provide a true comparison in price with the Chevrolet Volt (small electric/gasoline hybrid) or Chevrolet Bolt (all electric).


Department:          City Manager's OfficeContact Person:          Mark Randall


REVIEWERS:
DepartmentAction
Purchasing Division (Finance Department)Approved
City Managers OfficeApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

ATTACHMENTS:
DescriptionType
bid tabulationOrdinance