Item 123/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Chief El-Farra
Dept:
City Manager Dept: Police
Date: 4/14/2026
Subject: Approval of Lease Agreements with Enterprise Fleet Management for five Police Department Vehicles. (Cost: $142,639)(Action Item)
OBJECTIVE
To obtain City Council approval to enter into 36 -month operating lease agreements with Enterprise Fleet Management (Enterprise) for five 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 f ive operating leases are set to expire. Delivery lead times are estimated at 12-24 weeks due to continuing 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 damag e 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 five leases is approximately $47,546.20 per year, or $142,638.60 f or the full 36-month term of the agreements. This amount includes all monthly lease payments, physical damage insurance, and all fees associated with initial delivery. The full cost of Enterprise lease agreements is incorporated into the Police Department’s budget as an on- going expense. There will be no additional burden on the General Fund.
Item 123/2026
RECOMMENDATION
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 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.
By: Kelly Huynh, Public Safety Fiscal Analyst
ATTACHMENT(S)
1. 2026 Ford F-150 STX
2. 2026 Hyundai Sonata SEL AWD
3. 2026 Nissan Rogue SV Front Wheel Drive
4. 2026 Nisssan Pathfinder S Front Wheel Drive
5. 2026 Silverado 1500 WT 4x2 Crew Cab