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 existing Master Walkaway Lease Contract with Enterprise with operating leases for five vehicles expires in June 2017. 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.

Police staff worked with Enterprise and identified five 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. The cost of each of the five leases is $32,000 per year with a total of $96,000 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 cost for leasing five vehicles from Enterprise 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 the 36-month vehicle operating lease contracts for five (5) Police Department undercover vehicles, pursuant to the existing Master Walkaway Lease Contract; and

•  Authorize the City Manager to sign the lease contracts on behalf of the City, and make minor modifications as appropriate thereto.

By: Courtney Allison, Fiscal Analyst