Item 8/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Chief El-Farra
Dept:
City Manager Dept: Police
Date: 1/28/2025
Subject: Approval of lease agreements with Enterprise Fleet Management for six Police Department vehicles. (Cost: $180,939.68)(Action Item)
OBJECTIVE
To obtain City Council approval to enter into 36 -month operating lease agreements with Enterprise Fleet Management (Enterprise) for six Police Department undercover vehicles, pursuant to the terms of the existing standard Master Walkaway Lease Agreement.
BACKGROUND
Leasing vehicles have 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 five operating leases are set to expire in FY 2024-25 and one operating lease is set to expire in early FY 2025-26. Delivery lead times are estimated at 12- 24 weeks due to shortages and manufacturers cutting orders off early, thus requiring the need for orders to be placed in advance to ensure replacement vehicles are available when the current leases expire.
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 six leases is approximately $60,313 per year, or $180,939.68 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 Item 8/2025
budget as an ongoing expense. There will be no increase to the General Fund appropriation baseline.
RECOMMENDATION
It is recommended that the City Council:
Approve the 36-month vehicle operating lease contracts for six (6) Police Department undercover vehicles, pursuant to the existing Master Walkaway Lease Agreement; and
Authorize the City Manager, or designated personnel, to execute the agreements on behalf of the City, and make minor modifications as appropriate thereto.
ATTACHMENT(S)
1. 2025 Chrysler Voyager LX - Black - 2 units
2. 2025 Ford Escape - Gray
3. 2025 Ford Maverick XL - Gray
4. 2025 Ram 1500 - Gray
5. 2025 Toyota Camry LE - Black