Rotating leased vehicles every 36 months 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. The City has an existing Master Walkaway Lease Agreement with Enterprise, and five operating leases are set to expire in April 2022. Pandemic-related delays, shortages and manufacturers cutting off orders early have pushed delivery lead times to 22-24 weeks, so orders need to be placed far in advance to ensure replacement vehicles are available when the current leases expire.

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.

The total cost of the five leases is approximately $31,000 per year, or $93,000 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.

It is recommended that the City Council:

• Approve a 36-month vehicle operating lease contracts for five (5) Police Department undercover vehicles, pursuant to the existing Master Walkaway Lease Agreement; and

• Authorize the City Manager to execute the agreements on behalf of the City, and make minor modifications as appropriate thereto.