TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Master Walkaway Lease Agreement with Addendum and Amendment, Maintenance Agreement with Amendment, Service Agreement, Credit Application, Credit Application, ACH Authorization Agreement, and Risk Management Application between Enterprise FM Trust and the City of North Port, based on the attached unit pricing.
Recommended Action
Approve the Master Walkaway Lease Agreement with Addendum and Amendment, Maintenance Agreement with Amendment, Service Agreement, Credit Application, Credit Application, ACH Authorization Agreement, and Risk Management Application between Enterprise FM Trust and the City of North Port, based on the attached unit pricing.
Background Information
In 2015, the North Port Police Department separated from a joint narcotics unit with the Sarasota County Sheriff's Office and formed a Special Investigation Unit (SIU). Undercover detectives utilize their assigned vehicles to conduct surveillance operations as part of their undercover duties. Currently North Port officers have a limited number of vehicles to choose from, and more than often, criminals quickly figure out the undercover vehicles.
In fiscal year 2018, six (6) Special Investigation Unit (SIU) vehicles were due for replacement; however, the replacement has been moved out to 2019. Staff researched alternative methods and found in this case, leasing is the best option. Each year, the undercover detective will have the option to turn in the leased vehicle for a new one.
The estimated total monthly cost for all six vehicles combined is $2,840 per month. The cost includes physical damage coverage and maintenance with the exception of brakes and tires. Under Section 4 of the Amendment to the Maintenance Agreement, if the leased vehicle is a truck, the City is responsible to pay for any costs or expenses incurred in adjustment or replacement to the truck’s manual transmission clutch. Additionally, the City is responsible for any service exceeding $75 without prior authorization from Enterprise. If approved, the vehicles will be ordered with an estimated delivery date of May 2018. Therefore, the City of North Port would only need to pay the monthly lease beginning in May with an anticipated expenditure of $14,200 for FY 2018 and will continue into FY 2019.
The term of the Master Walkaway Lease Agreement begins on the date each vehicle is delivered and, unless terminated earlier, in accordance with the terms of the Agreement, continues for the “Lease Term” as described in the applicable Schedule. The Lease Schedule is created once the vehicle is received; as described in the attached sample lease schedule
This has been reviewed by Legal and approved legally correct as to form.
Strategic Plan
Financially Responsible City Providing Quality Municipal Services.
Financial Impact
During the FY 2018 budget process, Commission approved the expenditure of $28,200 to lease undercover detective vehicles in the general fund account 001-2100-521-44-00.
Procurement
The City of North Port Police Department contacted three (3) vendors: Enterprise, Avis and Merchant to obtain quotes, see attached quote chart.
Attachments:
1. Master Walkaway Lease Agreement with Self-Insurance Addendum and Amendment
2. Maintenance Agreement with Amendment
3. Service Agreement
4. Credit Application, ACH Authorization Agreement and Risk Management Application
5. Lease Vehicles Price Breakdown and ‘Sample’ Close-End Lease Schedule
6. Quote Chart
7. Response to Legal Request
8. Division of Corporations document
9. Physical Damage Management
Prepared by: Jennifer Ayres
Department Director: Kevin Vespia