| | | | | | | | Agenda Item - 4.g.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Todd E. Elgin
| | Dept.: | City Manager
| Dept.: | Police
| | Subject: | Approval of 36-month lease contracts with Enterprise Fleet Management for two (2) undercover vehicles. (Cost: $54,000) (Action Item) | Date: | 12/12/2017 |
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| | | | | | | | OBJECTIVE
To gain City Council approval to enter into 36-month operating lease contracts with Enterprise Fleet Management (Enterprise) for two (2) Police Department undercover vehicles, pursuant to the terms of the existing standard Master Walkaway Lease Agreement. |
| | | | | | | | BACKGROUND
Leasing vehicles has been very successful for the Police Department, as it allows investigators to conduct operations in vehicles chosen to blend in with the general population, and to rotate them out every 36 months. The City has an existing Master Walkaway Lease Agreement with Enterprise, and two operating leases are expiring in early 2018. Manufacturer delivery lead times range from 12 to 21 weeks, so Enterprise must order the vehicles as soon as possible to avoid having to extend the current contracts while waiting for the new vehicles. |
| | | | | | | | DISCUSSION
Police staff worked with Enterprise and identified two vehicles that meet the operational needs of the Department and also provide substantial manufacturer incentives. Each vehicle will have a total allowance of 30,000 miles for the 36-month lease term and the dealer will complete any repairs that are covered under warranty. Enterprise will also provide physical damage coverage for the vehicles, as leased vehicles do not qualify for comprehensive coverage under the City’s self-insurance guidelines.
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| | | | | | | | FINANCIAL IMPACT
The total cost of the two leases is approximately $18,000 per year, or $54,000 for the full 36-month term of the agreements. This amount includes all monthly lease payments, physical damage insurance, annual license renewal fees, and all fees associated with initial delivery. The full cost of Enterprise lease agreements is incorporated into the Police Department’s budget as an ongoing expense. There will be no additional burden on the General Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve 36-month vehicle operating lease contracts for two (2) Police Department undercover vehicles, pursuant to the existing Master Walkaway Lease Agreement; and
- Authorize the City Manager to execute the contracts on behalf of the City, and make minor modifications as appropriate thereto.
By: Courtney Allison, Fiscal Analyst
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