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Enterprise Fleet Management Lease Agreements <br />December 19, 2023 <br />Page 2 <br />leased and assigned to background investigators, police commanders, and various staff <br />within the Training/Human Resources Division, Chief's Office, and Field Operations. <br />Procurement of City vehicles through the Fleet Division can take as long as twelve to <br />twenty-four months. This is because in order to provide the best pricing, dealers often <br />base their bids on future factory order vehicles with incentives and rebates; hence the <br />long delay from the start of the procurement process, Council approval of the contract <br />award, to delivery of the vehicles. Furthermore, current City policy requires <br />departments to have funds available in the budget for the acquisition cost of a vehicle, <br />as well as the prorated equipment replacement value of the vehicle. The Police <br />Department's budget is not allocated sufficient funds for the outright purchase of new <br />vehicles so the open-ended lease structure from Enterprise allows the City to replace <br />vehicles with less upfront capital. <br />The Planning and Building Agency (PBA) leases eighteen vehicles to assist with Code <br />Enforcement, Building Inspection, and Cannabis Enforcement activities. Ongoing delays <br />in our procurement process to purchase vehicles makes it necessary for these <br />continued lease agreements. The need of lease vehicles is necessary to maintain <br />building inspection capacity for current and future large development projects, maintain <br />adequate service levels, and to continue enforcement services for on -going proactive <br />efforts within the community to protect public health, safety and welfare, enforcing <br />city codes related to nuisance, and land use violations. <br />Santa Ana Ordinance No. NS-3041 authorizes the City to purchase against contracts <br />awarded by any public agency employing a competitive bid process. Sourcewell, a <br />cooperative government purchasing agency, awarded a contract to Enterprise Fleet <br />Management, Inc. (Contract No. 030122-EFM) for procurement of fleet management <br />services, open-end leases, maintenance management programs, etc., as a result of <br />open, competitive bidding on behalf of its members, which includes government <br />agencies. Utilizing Sourcewell's contract enables the City to enter into new agreements <br />with Enterprise Fleet Management, Inc. (Enterprise) and obtain the best pricing and <br />allows both SAPD and PBA to continue with the existing lease vehicles that are <br />currently under contract. <br />Staff recommends both the master walkaway and equity lease agreements, in order to <br />have a variety of options available to meet the needs of the departments in terms of <br />lease terms, monthly lease total, and available budgets. The maintenance <br />management program agreement also provides options for SAPD to participate in this <br />program for the monthly fee of $6 per vehicle, plus the cost of approved routine <br />maintenance and repairs, in lieu of utilizing the City's fleet services. <br />The Sourcewell's contract with Enterprise expires April 18, 2026 and may be extended <br />for one additional year upon the request of Sourcewell and written agreement by <br />Enterprise. If this agreement is extended, staff requests the City's agreements with <br />