Laserfiche WebLink
File Number: 14-197 <br />at approximately the 3-year mark, when mileage reaches 85-95,000 miles. Beyond this point, <br />transmissions on patrol vehicles usually start to fail, which makes the cost to maintain the <br />vehicle prohibitive. <br />Staff proposes a pilot program to lease police vehicles , which would allow for an adequate <br />number of vehicles and would eliminate the need for purchasing extra vehicles to store “on <br />hand”. Managing the fleet in this manner will allow for vehicles to go out of service, while still <br />having adequate vehicles for each officer on a shift . Integrating a leasing program will also <br />improve current vehicles’ conditions , which have deteriorated over time due to the extended <br />and inconsistent replacement cycle. <br />Finally, due to the aging fleet and the discontinuation of the Ford Crown Victoria model in <br />2011, the vehicle equipment (light bars, computers, and safety cages), have been retained <br />beyond their intended lifecycle. Usually, vehicle equipment can be switched from a prior <br />vehicle that is exiting its service life to the incoming vehicle. However, with the elimination of <br />the Crown Victoria model and the need to move to a new vehicle platform , new outfitting <br />equipment is required. This also makes the transfer of equipment difficult if not impossible <br />depending on a variety of factors including the condition and type of the equipment. <br />Transitioning to new equipment is costly ; leasing vehicles can spread new equipment outfitting <br />costs over a longer period of time. <br />DISCUSSION <br />Using the existing methodology, it will take several years for the Department to bring its fleet <br />to the current recommended replacement schedule. In addition, the Ford Crown Victoria is no <br />longer manufactured, and was replaced with the Ford Police Interceptor Sedan and Utility <br />vehicle. The California Highway Patrol studied the newly released vehicle, and has designated <br />the Ford Interceptor Utility Vehicle as its replacement vehicle . It is the Department’s practice <br />to follow the CHP’s review and recommendations . The cost of the Interceptor is higher than <br />the previous Crown Victoria , as well as the cost to initially outfit each vehicle. <br />Staff recommends that the City Council approve a lease / purchase agreement with any <br />lending company in an amount not to exceed the financing rate of 4.25%. In reviewing the <br />lease/ purchase option, Police Command Staff finds it to be the most competitive because it <br />meets the State Bid’s pricing (through CHP) and meets the City’s purchasing requirements . <br />Vehicles will be acquired through San Leandro Ford and financed through any lending <br />company in an amount not to exceed the financing rate of 4.25%. <br />Fiscal Impact <br />Currently there is $161,055.00 (identified for Police vehicle replacements) in the Public Works <br />vehicle replacement fund (690-16-002-7510) for FY 2013-14 to begin this Municipal Lease <br />Pilot Program. The average cost of a fully equipped patrol vehicle is $48,000, not including <br />the cost of the computer. The average cost of an admin vehicle ranges from $25,000.00 - <br />$33,000.00, not including the cost of the computer. This is a three-year lease program not to <br />exceed $161,055.00 per year. The City budgets replacement vehicles through the internal <br />service charges on an annual basis. Over the last three years, the City averaged $160,000.00 <br />per year (excluding equipment) for replacement police vehicles. There is $250,918.00 <br />budgeted in FY 14/15 for replacement of police vehicles, which will also cover the second <br />Page 2 City of San Leandro Printed on 5/27/2014