CITY OF
AGENDA REPORT
DATE: January 12, 2026
Item No. to
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Dev ment Services/City Engineer Phillip White, Director of Financ
Todd, Gutjahr, Public Works Analyst
SUBJECT: Award of Contract — Comprehensive Vehicle Fleet Lease RECOMMENDATION:
That the City Council:
1. Award and authorize the City Manager to execute a comprehensive vehicle fleet lease program with The Bancorp consisting of 23 individual contracts for each leased vehicle; and
2. Authorize the City Manager or his designee to administer the terms of the contracts included in the lease program; and
3. Authorize FY26 Budget adjustment in the Public Safety Fund of $18,170; and
4. Find that the public interest will not be best served by a formal proposal process, waive the formal solicitation of proposals/qualifications and award the contract for a comprehensive vehicle fleet lease based on the proposal submitted by The Bancorp using the General Services Administration Federal Supply Service, Contract Number GS-30E-014CA, per the City of Yucaipa Purchasing Policy and Procedures, Section 6: Cooperative or Piggy Back Procurement.
BACKGROUND/DISCUSSION:
At the August 11, 2025, City Council Meeting, staff was directed to return to Council with information related to a comprehensive lease strategy for the City's vehicle fleet. The City's vehicle fleet includes various vehicles used by staff for conducting daily business and operations to provide the following services to the public:
• Public Works Maintenance (Streets, Parks & Public Facilities) • Park Ranger
• Code Enforcement
• Community Services
• Fire Prevention
• Administrative Services
Generally, specialized vehicles or vehicles with significant aftermarket additions are less likely to be lease candidates. Accordingly, the comprehensive vehicle fleet lease program (Program) being
presented does not include heavy-duty vehicles or equipment such as tractors, bucket trucks, fire apparatuses or other specialty vehicles or equipment. The Program strategy option presented includes twenty-three (23) vehicles determined to be suitable vehicle lease candidates and are vehicles required by staff to provide the services to the public referenced above.
It is important to note; the City's Police Department vehicles have historically been provided by the San Bernardino County Sheriff's Department (SBCSD). The FY25/26 Schedule A Law Enforcement Services Contract between the City and SBCSD includes twenty-eight (28) vehicles that include marked/unmarked units, command staff vehicles, police trucks and citizen patrol vehicles. The Program described in this report excludes these vehicles.
At the August 25, 2025, City Council Meeting, Council approved the purchase of a second Fire Department Battalion Chief vehicle. The purchase was approved by the City Council after a comparison of the lease option to the purchase option for this specific vehicle showed no appreciable cost savings.
Based on discussions with the vendor and the inclusion of significant aftermarket additions, neither of the two (2) Battalion Chief vehicles are suitable lease candidates. in the Program and are excluded, therefore.
At the November 10, 2025, City Council Meeting, staff presented an in-depth Program strategy option to City Council for discussion and demonstrated the potential cost savings and other benefits associated with a comprehensive vehicle fleet lease strategy compared to the outright purchase of vehicles. After Council discussion, there was general consensus to bring the item back with actual costs, cost savings information and additional information pertaining to the inclusion of Fire Department vehicles, in the future.
While the two (2) existing Battalion Chief vehicles were not suitable lease candidates currently, the Program allows for additions/deletions on an on -going basis. Accordingly, engines, ladder trucks, paramedic squad vehicles, and other apparatus will be evaluated as Program candidates, as acquisitions are deemed necessary. This flexibility is a valuable factor in this type of program.
The following table includes the 23 vehicles determined to be current suitable Program candidates and are included in the Program.
No.
Year
Type
Mileage
(Approx.)
Use
1 2006
Ford Ranger - Truck
120,421
Fire Prevention
2 2014
Ford Explorer - SUV
184,295
Park Ranger
3 2014
Toyota Tacoma - Truck
35,618
Community Services
4 2014
Ford F-250 - Truck
123,895
Public Works Maintenance Streets
5 2014
Chevrolet Colorado - Truck
87,235
Public Works Maintenance Streets
6 2014
Ford Escape - SUV
90,106
Public Works Maintenance Parks
7 2015
Ford F-150 -Truck
86,137
Public Works Maintenance Parks
8 2016
Ford F-150 -Truck
109,220
Public Works Maintenance Streets
9 2017
Chevrolet Colorado - Truck
67,825
Code Enforcement
10 2017
Chevrolet Colorado - Truck
61,201
Public Works Maintenance Parks
11 2017
Chevrolet Silverado 1500 - Truck
67,257
Public Works Maintenance Parks
12 2018
Ford Explorer - SUV
72,499
Code Enforcement
13 2018
Chevrolet Colorado - Truck
122,422
Park Ranger
14 2018
Chevrolet Colorado - Truck
74,923
Public Works Maintenance Parks
15 2020
Chevrolet Colorado - Truck
43,497
Code Enforcement
16 2022
Chevrolet Colorado - Truck
13,261
Code Enforcement
17 2022
Chevrolet Silverado 1500 - Truck 4x4
20,561
Public Works Maintenance Parks
18 2023
Chevrolet Traverse - SUV
6,354
Administrative Services
19 2023
Chevrolet 250OHD - Truck
25,794
Public Works Maintenance Streets
20 2023
Chevrolet 250OHD - Truck
13,005
Public Works Maintenance Parks
21 2025
350OHD Crew Cab 4x4 Dump
1,717
350OHD Crew Cab 4x4 Dump
22 -
Chevrolet Colorado — Truck*
-
Fire Prevention Fire Inspector)
23 -
Chevrolet Colorado — Truck* *
-
Engineering Inspection
*New vehicle required by Fire Department to perform new State law required fire inspections. **New vehicle required by Engineering/Public Works to replace vehicle decommissioned in 2020.
Staff contacted a vehicle fleet leasing vendor having current lease contracts with other government agencies to obtain estimates and information regarding a potential vehicle fleet lease strategy. The Bancorp is a financial and vehicle fleet leasing company that provides comprehensive vehicle fleet leases to government agencies. They also have a pre -negotiated General Services Administration Federal Supply Service Contract (GSA) that allows other government agencies to piggy -back on their contract without having to go through the formal request for proposals procurement process.
The Bancorp provided the City with a proposal for a comprehensive Program strategy based on the 23 vehicles included in the table above that staff deemed suitable lease candidates including a new vehicle required by the Yucaipa Fire Department to perform and complete fire inspections required by new State law and a new vehicle for Engineering/Public Works to replace a vehicle that was decommissioned in 2020.
The Program consists of 23 individual vehicle lease contracts. Vehicles will be added into the Program based on their replacement need. The current estimate of replacement needs is as follows:
Year 1
(# of vehicles)
Year 2
(# of vehicles)
Year 3
(# of vehicles)
Year 4
(# of vehicles)
Year 5
(# of vehicles)
Total
(# of vehicles)
10 7
1 2
3 23
The key points of the Program include:
• 5-year lease terms per vehicle
• Assumed residual value of $1
• 6% interest (subject to change)
Actual value at time of replacement will offset subsequent lease term costs Annual costs will be dependent on the vehicles entering the program. Year 1 costs are estimated to be $94,545 and reflect current vehicle values, new vehicle costs, and financing fees. Incremental costs for years 2-5 are currently estimated to be as follows but will be contingent on market conditions in future
years. As previously discussed with City Council, the anticipated cost to execute the Program will slightly exceed current practices, however, will deliver a better product to the community. Newer vehicles in better working condition and streamlined administration of the program all add value and efficiency to the service provided.
Year 2
Year 3
Year 4
Year 5
Year 1
incremental
incremental
incremental
incremental
$94,545
$54,214
$4,586
$14,283
$30,105
PROGRAM COSTS:
While total costs to be incurred in future years will be subject to market conditions, staff has provided the following cost comparisons:
• Should the City purchase all 23 vehicles with cash, the total purchase cost would be approximately $978,890.
• The net cost to replace the fleet (cost minus current value) is $762,465. • The cost of leasing the replaced fleet (23 vehicles for five (5) years) at 6% is $988,675.
FISCAL IMPACT:
The recommendations result in a FY26 impact of $94,545. The FY26 Budget impact is $18,170 in the Public Safety Fund. The Gas Tax Fund and General Fund have sufficient budget as vehicle replacement was included at adoption.
Attachments:
Lea
Approved by:
ATTACHMENT 1
Attachment 1 will be provided at the meeting.