City Council
Report
City Council Meeting: December 19, 2023
Agenda Item: 5.F
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To: Mayor and City Council
From: Ramon Batista, Police Chief, Police Department
Subject: Approval of Second Modification to Master Equity Lease Agreement with Enterprise Fleet Management, Inc. for Vehicle Leasing Services Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of exemption pursuant to Sections 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a second modification to Master Equity Lease agreement #4631 in the amount of $600,000 with Enterprise Fleet Management, Inc. to provide vehicle leasing services for the Police Department. This will result in a nine-year amended agreement with a new total amount not to exceed $1,638,120, with future year funding contingent on Council budget approval.
Summary
The Santa Monica Police Department utilizes a variety of vehicles for its undercover operations. These vehicles are used daily as the primary mode of transportation by the undercover units and are a necessary element in the Department’s regular operations.
Due to the undercover nature of these operations, the vehicles need to be interchanged regularly to remain inconspicuous. The Police Department is requesting to extend the term and increase the amount of the contract to lease eight new undercover (UC) vehicles, to replace the current UC vehicles that have reached the end of their lease term. This second modification would result in increasing the contract budget from $1,038,120 to $1,638,120 and extend the term of the agreement by two additional years, through 2028 to cover the 36-month term of the new leases. The current agreement expires in 2026 and the term extension is based on the time for new vehicle 2 of 4
delivery, 36-month lease term, vehicle upfitting with police equipment, and decommissioning at the end of the lease term.
Discussion
On April 26, 2018, Sourcewell (formerly known as National Joint Powers Alliance), a government agency that establishes nationally leveraged and competitively solicited purchasing contracts for government and non-profits, issued a Request for Proposals (RFP) for Fleet Management Services. Under the terms of the RFP and the resulting Sourcewell Agreement with Enterprise Fleet Management, Inc., similar nationally leveraged volume purchasing discounts were also available to other government agencies. On November 13, 2019, the City exercised the procurement option of Santa Monica Municipal Code 2.24.250(c), which authorizes an exception to the competitive process if competitive procedures were followed by another government agency, and entered into a Master Lease Agreement with Enterprise Fleet Management for vehicle leasing services. The pricing offered through the Enterprise Fleet Management contract (including the option to apply the equity from leased vehicles towards the replacement vehicles) continues to be beneficial to the City. It keeps costs consistent, while the vehicle market has seen a significant price increase for newer vehicles. Enterprise Fleet Management’s large network of dealers also provides the Undercover Unit a wide selection of vehicles.
On January 26, 2021, the City modified this agreement to include an additional 20 vehicles for various City Departments, including eight vehicles for the Police Department’s Undercover unit. Prior to this agreement, the Police Department would regularly utilize the services of car rental companies for undercover operations. Leasing has proven to be a cost-effective strategy over renting, while also allowing the Department to swap vehicles to prevent from being recognized in undercover operations.
Environmental Review
The agreement for leasing of vehicles is exempt from CEQA pursuant to Sections 15301, 15302, and 15061(b)(3) of the CEQA Guidelines. Section 15301 exempts Class 1 (Existing Facilities) projects from CEQA, which include the operation, repair, 3 of 4
maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Section 15302 exempts Class 2 (Replacement or Reconstruction) projects which include the replacement or reconstruction of existing structures and facilities where the new structure will be located in the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced. Section 15061(b)(3) (Common Sense Exemption) states that CEQA does not apply “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The agreement would lease vehicles to replace current police vehicles, and therefore, it has determined that the project is exempt pursuant to Sections 15301, 15302, and 15061(b)(3) of the CEQA Guidelines. Furthermore, none of the exceptions to categorical exemptions set forth in Section 15300.2 of the CEQA Guidelines apply. 4 of 4
Past Council Actions
Meeting Date Description
01/26/21 (attachment
A)
Approval of First Modification to Master Equity Lease
Agreement with Enterprise Fleet Management, Inc.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to increase the amount of the agreement with Enterprise Fleet Management, Inc. for vehicle leasing services.
Agreement Modification Request
Agreement #
Current Authorized
Amount
FY 2023-24
Budget
Modified Request
Amount
Future Years Dept/CIP Account # Total Revised
Contract Amount
4631 $832,120 $0 $0 C7000010.689000 $832,120
$206,000 $120,000 $480,000 011800004.525020 $806,000
Total: $1,038,120 $120,000 $480,000 $1,638,120
Future year funding is contingent on Council budget approval.
Prepared By: Jose Arroyo, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. January 26, 2021 - Staff Report (Web Link)
B. Enterprise Oaks Initiative
C. Master Equity Lease Agreement Contract #11134 (CCS)