| | | | | | | | Agenda Item - 4.g.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Lisa L. Kim
| From: | Amir El-Farra
| | Dept.: | City Manager
| Dept.: | Police Chief
| | Subject: | Approval of Lease Agreements with Enterprise Fleet Management for four vehicles. (Cost: $120,000) (Action Item) | Date: | 12/12/2023 |
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| | | | | | | | OBJECTIVE
To obtain City Council approval to enter into 36-month operating lease agreements with Enterprise Fleet Management (Enterprise) for four Police Department undercover vehicles, pursuant to the terms of the existing standard Master Walkaway Lease Agreement. |
| | | | | | | | BACKGROUND
Rotating leased 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. The City has an existing Master Walkaway Lease Agreement with Enterprise, and the Police Department desires to add four vehicles to the fleet. |
| | | | | | | | DISCUSSION
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. |
| | | | | | | | FINANCIAL IMPACT
The total cost of the four new leases is approximately $40,000 per year, or $120,000 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. Funds for the additional Enterprise lease agreements were appropriated in the Police Department’s FY 2023-25 budget and will be incorporated as an ongoing expense through completion of the 36-month term. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve the 36-month vehicle operating lease contracts for four (4) Police Department undercover vehicles, pursuant to the existing Master Walkaway Lease Agreement;
- Authorize the City Manager or her designee to execute the agreements on behalf of the City, and make minor modifications as appropriate thereto; and
- Authorize the City Manager to execute future amendments to the agreement, including the authorization to enter into options years, providing sufficient funds are available
By: Courtney Cibosky, Police Fiscal Analyst
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