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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 21, 2006 <br />TITLE: <br />CONTRACTS RENEWAL FOR <br />LEASE AND RENTAL VEHICLES <br />(SPEC. NO. 04-091) <br />~~, <br />TY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 151 Reading <br />^ Ordinance an 2~d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contracts for lease and rental vehicles for a two-year period, in <br />the following annual amounts not to exceed: <br />Vendor: Location: Amount: <br />Guaranty Chevrolet Motors, Inc. Santa Ana $ 27,183.75 <br />Enterprise Fleet Services Santa Ana $175,519.67 <br />DISCUSSION <br />The Santa Ana Police Department leases and rents vehicles, both on a short- <br />term and long-term basis. Short-term rentals are used when Police vehicles <br />are in the shop for repairs and maintenance or during day-to-day undercover <br />operations. The Special Investigations Division uses long-term lease <br />vehicles primarily for prolonged surveillance. Long-term rentals allow <br />vehicles to be interchanged between undercover operations in order to <br />maintain anonymity. <br />In addition, various City agencies rent vehicles to perform routine <br />business. The Community Development Agency's Federal Empowerment Zone <br />Youth Work Force Development Program rents vehicles for their five-month <br />summer program. Additionally, the Community Development Agency and the <br />Planning and Building Agency may rent small passenger vans on a daily or <br />weekly basis to accommodate the review or inspection of City projects. <br />On August 16, 2004, the City Council awarded contracts for a two-year <br />period, with provision for one, two-year renewal. The vendors have agreed <br />to renew the contracts; however, Guaranty Chevrolet Motors, Inc. has <br />requested a 10 percent increase and Enterprise Fleet Services has requested <br />an average 19 percent increase for 2-year new vehicle leases. The price <br />increase reflects an allotment increase from 15,000 to 25,000 miles per <br />vehicle annually, reducing the potential for excessive mileage penalties at <br />lease end. Staff recommends the final renewal of the contracts. <br />22B-1 <br />