Police Department
www.santa-ana.org/police
Item # 24
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 16, 2024
TOPIC: Enterprise Fleet Management Lease Agreements
AGENDA TITLE
Agreements with Enterprise Fleet Management for Leased Vehicles (General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute the following seven agreements with Enterprise FM Trust and Enterprise Fleet Mangement, Inc. for leased vehicles for the period of January 1, 2024 through April 18, 2026 for a total annual amount not to exceed $612,936, with a one-year extension option:
1. Master Walkaway Lease Agreement (Agreement No. A- 2024-XXX);
2. Master Equity Lease Agreement (Agreement No. A- 2024-XXX);
3. Maintenance Management and Fleet Rental Agreement (Agreement No. A- 2024-XXX);
4. Supplemental Agreement between City and Enterprise (Agreement No. A- 2024- XXX);
5. Indemnity Agreement for Master Walkaway Lease Agreement (Agreement No. A- 2024-XXX);
6. Indemnity Agreement for Master Equity Lease Agreement (Agreement No. A- 2024-XXX);
7. Amendment to Maintenance Management and Fleet Rental Agreement (Agreement No. A- 2024-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
Enterprise Fleet Management Lease Agreements
January 16, 2024
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DISCUSSION
The Santa Ana Police Department (SAPD) leases vehicles for various personnel based on need for field assignments. The Police Department currently leases vehicles for the Investigations Bureau, which includes the Vice, Narcotics, Career Criminal, and other specialized units and task forces that are involved in surveillance programs. Leasing a variety of vehicles allows them to be interchanged in order to maintain anonymity and safety of the undercover officers. Homicide and other criminal investigation detectives are provided with lease vehicles to conduct investigations. Additionally, vehicles are leased and assigned to background investigators, police commanders, and various staff within the Training/Human Resources Division, Chief’s Office, and Field Operations.
The City provides take home vehicles for certain positions as contractually obligated in the Memorandum of Understanding with the Santa Ana Police Management Association. A current list of SAPD leases is included in Exhibit 8.
Procurement of City vehicles through the Fleet Division can take as long as 12 to 24 months. This is because in order to provide the best pricing, dealers often base theirs bids on future factory order vehicles with incentives and rebates; hence the long delay from the start of the procurement process, Council approval of the contract award, to delivery of the vehicles. Furthermore, current City policy requires departments to have funds available in the budget for the acquisition cost of a vehicle, as well as the prorated equipment replacement value of the vehicle. The Police Department’s budget is not allocated sufficient funds for the outright purchase of new vehicles so the open-ended lease structure from Enterprise allows the City to replace vehicles with less upfront capital.
The Planning and Building Agency (PBA) leases eighteen vehicles to assist with Code Enforcement, Building Inspection, and Cannabis Enforcement activities. Ongoing delays in the procurement process to purchase vehicles makes it necessary for these continued lease agreements. The need of lease vehicles is necessary to maintain building inspection capacity for current and future large development projects, maintain adequate service levels, and to continue enforcement services for on-going proactive efforts within the community to protect public health, safety and welfare, enforcing city codes related to nuisance and land use violations.
Santa Ana Ordinance No. NS-3041 authorizes the City to purchase against contracts awarded by any public agency employing a competitive bid process. Sourcewell, a cooperative government purchasing agency, awarded a contract to Enterprise Fleet Management, Inc. (Contract No. 030122-EFM) for procurement of fleet management services, open-end leases, maintenance management programs, etc., as a result of open, competitive bidding on behalf of its members, which includes government agencies. Utilizing Sourcewell’s contract enables the City to enter into new agreements with Enterprise Fleet Management, Inc. (Enterprise) and obtain the best pricing and allows both SAPD and PBA to continue with the existing lease vehicles that are currently under contract.
Enterprise Fleet Management Lease Agreements
January 16, 2024
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Staff recommends both the master walkaway and equity lease agreements, in order to have a variety of options available to meet the needs of the departments in terms of lease terms, monthly lease total, and available budgets. The maintenance management program agreement also provides options for SAPD to participate in this program for the monthly fee of $6 per vehicle, plus the cost of approved routine maintenance and repairs, in lieu of utilizing the City’s fleet services.
The Sourcewell’s contract with Enterprise expires April 18, 2026 and may be extended for one additional year upon the request of Sourcewell and written agreement by Enterprise. If this agreement is extended, staff requests the City’s agreement with Enterprise also be extended for the same one year period, upon written agreement by both parties.
FISCAL IMPACT
Funding is available in the FY 2023-24 budget in the following accounts for the January through June 2024 lease payments:
Police Department
Fiscal
Year
Accounting Unit –
Account No.
Fund
Description
Accounting Unit –
Account No.
Description
Amount
FY 23-24 01114XXX-62300 General Fund
Police Department
Various, Contract
Services-
Professional
$230,268
FY 23-24 01214010-62300 Cannabis Fund
Police Enforcement
Services, Contract
Services-
Professional
$30,000
Total $260,268
Planning & Building Agency
Fiscal
Year
Accounting Unit –
Account No.
Fund
Description
Accounting Unit –
Account No.
Description
Amount
FY 23-24 01116XXX-62300 General Fund
Planning and
Building Agency
Various, Contract
Services-
Professional
$28,800
FY 23-24 01216010-62300 Cannabis Fund
Enforcement
Services, Contract
Services-
Professional
$17,400
Total $46,200
Enterprise Fleet Management Lease Agreements
January 16, 2024
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The amounts above are estimates and subject to change, pending registration renewals, routine maintenance and repairs, and other fees. Funding for subsequent fiscal years, as well as the extension option if exercised, will be included in the proposed budgets for City Council consideration.
EXHIBIT(S)
1. Master Walkaway Lease Agreement
2. Master Equity Lease Agreement
3. Maintenance Management and Fleet Rental Agreement
4. Supplemental Agreement between City and Enterprise
5. Indemnity Agreement for Master Walkaway Lease Agreement
6. Indemnity Agreement for Master Equity Lease Agreement
7. Amendment to Maintenance Management and Fleet Rental Agreement
8. Current Police Department Leases
Submitted By: Robert Rodriguez, Acting Police Chief
Minh Thai, Executive Director of Planning and Building Agency Approved By: Tom Hatch, Interim City Manager