Laserfiche WebLink
$AN City of San Leandro <br />Meeting Date: April 6, 2015 <br />Staff Report <br />File Number: 15-165 Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.1. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: Sandra Spagnoli <br />Chief of Police <br />FINANCE REVIEW: David Baum <br />Finance Director <br />TITLE: Staff Report for a Resolution Authorizing the City Manager to Enter into the <br />Second Phase of the Lease/Purchase Program for 15 Police Fleet Vehicles <br />Contingent on City Council Approval and Adoption of the 2015-16 and <br />2016-17 Biennial Budget <br />'��J►�il��i/_1:T/_1�U77xd�]i!i1►�iI��I�T��[�7�1 <br />Staff recommends that the City Council approve a resolution authorizing the second phase of <br />the leasing of 15 police vehicles through a municipal lease program beginning in FY 2015-16. <br />The resolution authorizes the City Manager to execute the lease purchase upon approval of <br />the resolution contingent on City Council approval and adoption of the 2015-16 and 2016-17 <br />biennial budget appropriation, with the first of three payments occurring in Fiscal Year <br />2015-16 of $246,500 per year (total $739,500). <br />-11 <br />On June 2, 2014, the San Leandro City Council adopted Resolution No. 2014-053 authorizing <br />the City of San Leandro to enter into a lease/ purchase agreement with any lending company <br />in an amount not to exceed the financing rate of 4.25% for the acquisition of 10 police <br />vehicles. The City of San Leandro Finance Department was able to secure a loan at 2.1 % <br />with PNC bank. <br />This resolution was brought forward to the City Council as a result of the state of the Police <br />Department's fleet. At the time Resolution No. 2014-053 was brought to the City Council, the <br />San Leandro Police Department operated 67 vehicles throughout all of the Department's <br />divisions. Every year, funds were allocated for the purchase of replacement vehicles based on <br />a designated replacement cycle. In addition, the City purchased and stored additional <br />replacement vehicles (between 4 to 7 vehicles), in the event a vehicle needed immediate <br />replacement. Purchased vehicles were stored at the City Corporation Yard until brought into <br />service. This method kept an inventory of vehicles in stock for several years after their <br />City of San Leandro Page 1 Printed on 3/31/2015 <br />