Item 24 - Agreements with Enterprise Fleet Management for Leased Vehicles

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Enterprise Fleet Management Lease Agreements January 16, 2024 Page 2 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.