TITLE
Recommendation to adopt resolution authorizing City Manager, or designee, to execute all documents necessary to enter into a contract with Acme Auto Leasing, LLC, of North Haven, CT, for the lease purchase financing of 51 Chevrolet Bolt electric vehicles and 19 Nissan Leaf electric vehicles with related equipment and accessories, on the same terms and conditions afforded to Sourcewell (formerly the National Joint Powers Alliance), of Staples, MN, with 72 Hour LLC, dba National Auto Fleet Group, of Watsonville, CA, and the Climate Mayors’ Electric Vehicle (EV) Purchasing Collaborative, for a period of 30 months, in a total amount not to exceed $2,310,930. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Acme Auto Leasing, LLC, for the lease-purchase financing of 51 Chevrolet Bolt and 19 Nissan Leaf electric vehicles. This agreement will enable the City to take advantage of federal tax credits, which will reduce the total aggregate vehicle cost by $228,875. The City will submit a down payment of $1,289,410 to secure the 70 vehicles and will pay total aggregate lease fees of $1,021,520 over 30 months. When lease finance charges are included, the City will save $113,374 by purchasing through the proposed lease agreement instead of buying the units directly because municipalities can only take advantage of these rebates when purchasing qualified new vehicles through a leasing agreement on qualified new vehicles. When the lease payments are completed, the City will retain ownership of the 70 vehicles.
Of the 70 vehicles, 58 were in the approved FY 17-19 vehicle replacement plans and 12 were approved through FY 18 Mid-Year enhancement requests. While sufficient capital to purchase the vehicles has been collected, the Fleet Services Bureau in the Financial Management Department is recommending financing through lease agreements to take advantage of federal tax credits. The tax credits range from $2,625 to $5,000 per vehic...
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