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Why does Oakland Mayor Thao’s SUV ride cost the city ,500?

Why does Oakland Mayor Thao’s SUV ride cost the city $74,500?

Oakland Mayor Sheng Thao on June 24. The mayor is entitled to a vehicle for official purposes and chose a Ford Explorer SUV, but costs mounted when the city had to lease a more expensive alternative before purchasing the car outright.

Oakland Mayor Sheng Thao on June 24. The mayor is entitled to a vehicle for official purposes and chose a Ford Explorer SUV, but costs mounted when the city had to lease a more expensive alternative before purchasing the car outright.

Jessica Christian/The Chronicle

Oakland Mayor Sheng Thao has come under fire for allowing the city to purchase a top-of-the-line Ford Expedition SUV for her official use through the end of her term, valued at nearly $75,000. The mayor also receives $650 a month for a personal car.

The Oaklandside reported on the Expedition’s cost this week, highlighting that Oakland has failed to pay a local dealer to purchase the large SUV, even though Thao has used it for over a year. The cost increased twice, first when the city had to lease the Expedition because a cheaper Ford Explorer was not available, and then again when Thao decided to keep the more expensive Expedition.

The focus on the mayor’s vehicle raises questions about how the city handles transportation for its top official and whether spending so much is appropriate given Oakland’s budget woes.

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The mayor’s office did not immediately respond to a request for comment.

An Oakland spokesman said it is “a common option” for the city to purchase a new vehicle for the new mayor to use for official purposes.

However, an official in former Mayor Libby Schaaf’s administration criticized Thao for ultimately spending $75,000 on a car instead of opting for a cheaper alternative. Although Schaaf did not have a city-owned vehicle for official purposes, her former spokesman Justin Berton said she received a monthly personal car allowance. Berton said either Schaaf’s staff would drive her or she would drive herself for city purposes.

In San Francisco, Mayor London Breed does not have a company car, but is instead driven around by police officers in city SUVs.

City spokesman Sean Maher said Thao requested a 2022 Ford Explorer when she took office in January 2023, which, according to a representative of local dealer Uptown Ford, would have cost $56,000 including taxes and registration. However, due to a nationwide recall of Explorer vehicles, the dealership instead leased her a new 2022 Ford Expedition, with a list price about $20,000 higher.

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The cost of the nearly 16-month lease was about $18,500, according to Maher. Thao’s office then directed the city to purchase the vehicle, which was considered used at the time. The purchase price was $56,000, including taxes and registration, according to a representative at the dealership. The Kelley Blue Book value of a used 2022 Ford Explorer starts at $33,245.

Maher said Oakland mayors are legally required to receive a $650 monthly personal car allowance. Thao uses the Expedition only for business purposes, according to city records.

In its report, The Oaklandside explained that the city has not yet paid the cost of renting or purchasing the vehicle due to bureaucratic glitches. The dealership’s representative told the Chronicle that the company’s former general manager was supposed to collect the payment, but it “slipped through the cracks.”

According to the Oaklandside report, it took the city more than six months to begin paying for the SUV after the dealership demanded payment in February. The dealership’s representative said the city said it would issue a check in the next week or so.

The city forwent a competitive bidding process to purchase the vehicle because Uptown Ford was the only dealership in the city that sold the car. While Uptown Ford does not have contracts with the city, it supplies the cities of Piedmont and Alameda with its vehicle fleets. Maher said the city will add the vehicle to its existing fleet after Thao’s term ends.

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The dealership’s manager, Chris Kwei, a local businessman, donated to several mayoral candidates in 2022, including Thao, former City Councilor Loren Taylor and former City Councilor Ignacio De La Fuente.

Reach Sarah Ravani: [email protected]; Twitter: @SarRavani

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