HomeMy WebLinkAbout22B - LEASE & RENTAL VEHICLES
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
AUGUST. 21, 2006
TITLE:
CONTRACTS RENEWAL FOR
LEASE AND RENTAL VEHICLES
(SPEC. NO. 04-091)
APPROVED
o As Recommended
o As Amended
o Ordinance on 1 s\ Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
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TY MANAGER
CONTINUED TO
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FILE NUMBER
RECOMMENDED ACTION
Renew the contracts for lease and rental vehicles for a two-year period, in
the following annual amounts not to exceed:
Vendor:
Location:
Amount:
Guaranty Chevrolet Motors, Inc.
Enterprise Fleet Services
Santa Ana
Santa Ana
$ 27,183.75
$175,519.67
DISCUSSION
The Santa Ana Police Department leases and rents vehicles, both on a short-
term and long-term basis. Short-term rentals are used when Police vehicles
are in the shop for repairs and maintenance or during day-to-day undercover
operations. The Special Investigations Division uses long-term lease
vehicles primarily for prolonged surveillance. Long-term rentals allow
vehicles to be interchanged between undercover operations in order to
maintain anonymity.
In addition, various City agencies rent vehicles to perform routine
business. The Community Development Agency's Federal Empowerment Zone
Youth Work Force Development Program rents vehicles for their five-month
summer program. Additionally, the Community Development Agency and the
Planning and Building Agency may rent small passenger vans on a daily or
weekly basis to accommodate the review or inspection of City projects.
On August 16, 2004, the City Council awarded contracts for a two-year
period, with provision for one, two-year renewal. The vendors have agreed
to renew the contracts; however, Guaranty Chevrolet Motors, Inc. has
requested a 10 percent increase and Enterprise Fleet Services has requested
an average 19 percent increase for 2-year new vehicle leases. The price
increase reflects an allotment increase from 15,000 to 25,000 miles per
vehicle annually, reducing the potential for excessive mileage penalties at
lease end. Staff recommends the final renewal of the contracts.
228-1
Contract Award for Lease/Rental Vehicles
August 21, 2006
Page 2
FISCAL IMPACT
Funds are available in the various departmental Other Contractual Services
accounts (object code 6291).
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Francisco Gutierrez
Executive Director
Finance and Management
Services Agenc~/
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FG/KM/04-091R.2:uc
228-2