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Gardena approves Tesla Model Y purchase under DOE grant; council also okays Ford pickup for public works

Gardena City Council · September 10, 2024
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Summary

Council authorized purchase/lease of a 2024 Tesla Model Y (majority funded by a Department of Energy EECBG grant) for the Community Development Department and later approved a 2024 Ford F-350 pickup for Public Works; council debated leasing vs. outright purchase, charging infrastructure and fleet strategy.

The Gardena City Council on Sept. 10 approved staff recommendations to add electric vehicles to the municipal fleet and replace aging units.

Agenda item 12A authorized the purchase of a 2024 Tesla Model Y from Enterprise Fleet Management with a down payment of $57,050 and 60-month payments that result in a total requested amount described in staff materials. City staff told council that roughly $57,057 of the purchase will be covered by a Department of Energy Energy Efficiency and Conservation Block Grant (EECBG) while the city would pay roughly $8,461 in lease/fee costs. The Model Y will be used by the Community Development Department to replace a 2012 Nissan LEAF that was auctioned as surplus.

Council members asked why staff recommended the Enterprise lease structure rather than buying directly from Tesla. Staff explained that leasing through Enterprise provides bundled services—liability and gap insurance, maintenance and windshield repair—effectively reducing total risk and estimated lifecycle cost. “If we outright bought the car, we wouldn’t take advantage of the insurance and maintenance coverages that Enterprise provides,” a staff member said. Councilmember Francis asked whether proceeds from auctioning the Leaf would offset this purchase; staff said prior surplus proceeds generally return to the general fund and are not earmarked for purchases.

Council later approved agenda item 16C to purchase a 2024 Ford F-350 Crew Cab for the Public Works sewer maintenance fleet for $69,616.49; the city will sell the 1999 Chevy for an estimated $3,000 and credit proceeds to the sewer fund. Staff said comparable heavy-duty EV trucks are not yet commercially available with the required capabilities.

Both motions were adopted by roll call votes. Staff said existing charging infrastructure includes three charging stations in a secured lot, a ChargePoint station outside Community Development and other stations near public works; the Tesla will come with adapters to use existing EV charging outlets.

Next steps: Delivery estimates for the Tesla were given as two to three months; staff will manage fleet deployment and charging logistics.