HomeMy WebLinkAboutE-14 Staff Report - Purchase 4 patrol SUVs LeaseCONSENT ITEM
E-14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: STEPHAN E. HUNT, CHIEF OF POLICE/ACTING CITY MANAGER
FROM: SAM FLEMING, POLICE CAPTAIN
DATE: AUGUST 21, 2017
SUBJECT: LEASE AGREEMENT TO PURCHACE 2017 FORD POLICE SUV VEHICLES
SUMMARY:
As part of the ongoing fleet management program at the Azusa Police Department, police vehicles are
retired out of the fleet when appropriate and deemed necessary. The Police Department is retiring four
(4) vehicles and needs to purchase four (4), 2017 Ford Police Interceptor SUV vehicles from Wondries
Fleet Group in Alhambra as replacements. In order to reduce the fiscal impact to the 2017/2018 budget
the four (4) vehicles will be leased to own over a four (4) year period through First Capital Equipment
Leasing Corporation. This program will allow the City to spread the fiscal impact over time while
replacing vehicles that are in need of rotation out of the fleet. The $162,000.00 dollar lease covers the
purchase of all four (4) vehicles and installation of emergency equipment.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Approve the lease agreement between the City and First Capital Leasing Corporation for
the purchase and outfitting of four (4), 2017 Ford Police Interceptor SUV vehicles for an
amount not-to-exceed of $162,000;
2) Approve the purchase of four (4), 2017 Ford Police Interceptor SUV vehicles from
Wondries Fleet Group (400 S. Atlantic, Alhambra, CA) under the County of Los
Angeles Bid# DPO-SH-17361672, for an amount not-to-exceed $124,005.64.
Authorized under City Municipal Code Section 2-521 allowing Cooperative or
Piggyback purchases.
3) Approve the outfitting of emergency equipment for all four (4) vehicles by Black and
White Emergency Vehicles (1611 W. San Bernardino Rd. Covina, CA) for an amount
not-to-exceed $37,511.28; and
APPROVED
CITY COUNCIL
8/21/2017
4) Authorize the City Manager to execute the contracts and purchases in a manner
acceptable to the City Attorney.
DISCUSSION:
Each year, the Police Department budgets to replace high mileage patrol vehicles. This year’s fleet
rotation involves replacing four (4), 2010 police vehicles from the fleet which, are beyond their
warranties and are in need of retirement from patrol deployment.
In order to reduce the impact to the budget in one fiscal year, Staff contacted First Capital Equipment
Leasing Corporation who specialize in a lease to own municipal program. The program will allow us to
lease/own the vehicles by purchasing all four (4) vehicles in fiscal year 2017/2018 and pay in quarterly
installments over a four (4) year period of time at an interest rate of 3.89%.
The impact to the budget in fiscal year 2017/2018 if all four (4) vehicles were purchased would be
approximately $162,000.00. However, utilizing the Municipal Leasing Program, the impact would be
$43,589.96 per year through fiscal year 2021.
Azusa Municipal Code Section 2-521 allows Cooperative or Piggyback purchases, which this purchase
would qualify under via the Los Angeles County, Purchase Order DPO-SH-17361672 (Attachment 2).
Holister Police Department (CA), utilized the program to replace several administrative vehicles said the
program has worked exactly as advertised and they will consider using it again in the future.
The four (4) new vehicles will be used as marked, black and white patrol units. The County of Los
Angeles Purchase Order was granted at a base price not including tax and tire fees of $31,001.41 per
SUV (Wondries Quote/Attachment #4). Wondries is honoring a base price of $31,001.41 for each
vehicle (including tax and tire fee) for a total price of $124,005.64. The listed price per unit on the
County of Los Angeles purchase order is $39,858.81 due to their order including extra accessories the
City does not require, which is why the base price is being honored.
Three quotes were requested for the outfitting of emergency equipment in the poli ce vehicles.
Communication Center advised they were withdrawing from the bid process. Black and White
Emergency Vehicles provided the lowest bid of $37,511.28 to outfit the vehicles with emergency
equipment.
FISCAL IMPACT:
The fiscal impact to the City will be $174,359.84 over a four (4) year period. The interest paid over the
course of the four year lease will be $12,359.84. The cost per fiscal year will be $43,589.96 during the
life of the lease (4 years) ending June 2021. The City has the funds allocated in the 2017/2018 budget to
execute the lease agreement.
Prepared by: Fiscal Impact Reviewed by:
Sam Fleming Talika M. Johnson
Police Captain Director of Finance
Reviewed and Approved: Reviewed and Approved:
Louie F. Lacasella Stephan E. Hunt
Senior Management Analyst Chief of Police/Acting City Manager
Attachments:
1) Lease Agreement First Capital Leasing Corp
2) Los Angeles County, Purchase Order DPO-SH-17361672
3) Wondries quote for 2017 Police Vehicles
4) Quotes from Black/White Emergency Vehicles
5) Copy of Los Angeles County RFB