City Council

F. POLICE DEPARTMENT 36-MONTH LEASE-PURCHASE OF TWO FRONTLINE\nVEHICLES AND NINE UNMARKED DETECTIVE AND COMMUNITY\nENGAGEMENT BUREAU VEHICLES, THROUGH THE ENTERPRISE FLEET\nMANAGEMENT PROGRAM IN AN AMOUNT NOT TO EXCEED $545,844.24\nPublic Works Fleet Division personnel and police staff have determined that a\n2017 Ford Explorer Interceptor and a 2015 Chevy Tahoe patrol vehicle have\nreached the end of their lifespan as frontline emergency vehicles and have been\ndesignated for replacement. Unmarked police units are also needed in the\nDetective (DB) and Community Engagement Bureaus (CEB) to replace their\naging fleets. The 2017 Ford Explorer Interceptor will be reassigned to CEB, while\nthe 2015 Chevy Tahoe will be disposed of via established protocols through the\nfleet manager at the Auto Shops. Four frontline Ford Explorer Interceptors and\ntwo DB units that still have decent resale values will be sold to Enterprise Fleet\nManagement (EFM) to offset the overall cost of the vehicle replacement\nprogram. Other DB and CEB units that have little to no equity will be disposed\nof via established protocols through the City’s Fleet Manager. The total cost for\nthis 36-month lease purchase agreement for eleven vehicles is approximately\n$545,844 and breaks out to $181,948 per year. On January 21, 2025, the City\nCouncil approved an agreement with EFM and authorized the lease of four\npatrol vehicles with a 36-month lease term for a total amount of $295,425, or\n$98,475 per year. Including this proposed lease, less the $81,000 in trade-in\nequity, the total vehicle lease obligations over the next 36 months amount to\napproximately $646,792, with a combined annual lease payment of $215,597.\nLease payments are made from the Fleet Services Fund, which receives funding\nfrom the General Fund to cover fleet-related expenditures. The adopted Fiscal\nYear 2024-25 budget included an appropriation of $295,000 in the Police\nDepartment’s Special Projects Fund (Account No. 124-751-37-99-201) for\nvehicle purchases, which has been carried forward to Fiscal Year 2025-26.\nFunding is available in the Fleet Services 2025-26 budget to pay for the current\nvehicle lease expenditures. However, an additional $351,792 will need to be\nappropriated in future years to fully fund the remaining lease payments.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends the City Council authorize the City Manager to leasepurchase the vehicles listed for an amount not to exceed $181,948.