Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Issue A Purchase Order To Enterprise FM Trust, A Delaware Statutory Trust, For The Purchase Of 45 Vehicles In The Amount Of $2,313,610.36 On A 36 Month Lease-To-Own Basis Under The Master Equity Lease Agreement (Previously Approved By Resolution No. R-2016-375), The Lease Package And Open-End Equity Lease Rate Quote Numbers 4958314 And 4958391, In Accordance With Section 38.41(C)(9) Of The Procurement Code. (Best Interest)
Strategic Plan Focus
Quality of Life & Strong Neighborhoods
Body
Staff Recommends: Approval of the Attached Resolution.
Explanation:
The Department of Public Works, Fleet Management Division, on behalf of the Police Department, requires the purchase of 45 new vehicles to replace a portion of those vehicles that have reached or surpassed their life expectancy and road worthiness by age, mileage and wear, and can no longer be relied upon to perform at required operational levels.
The Police Department specifically requested the purchase of forty-five 2021 Chevrolet Tahoe 1500 RWD Police Patrol Vehicles (CC10706/9C1/PPV) (“45 Vehicles”) with the ability to purchase at the end of the lease term.
Forty-three of the new 2021 Chevrolet Tahoe 1500 RWD vehicles, costing $2,207,406.72 will be used as Patrol Vehicles. The additional two vehicles, costing $106,203.64 will be used as K-9 Vehicles. All 45 vehicles included in this purchase and pricing will be outfitted with the necessary equipment (lights, sirens, cages, computer stands, equipment lock box etc.) required for patrol and operational functions from Strobes-R-Us.
On December 14, 2016, the City Commission passed and adopted Resolution Number R-2016-375 that authorized the execution of a Master Equity Lease Agreement with Enterprise along with the issuance of a purchase order for specific vehicles for the Code Compliance Division based upon a lease package. This Master Equity Lease Agreement is still valid and in effect and allows for the leasing of vehicles pursuant to specific lease package schedules and addenda
The Public Works Department and the Police Department have determined that it is in the best interest of the City to purchase the 45 Vehicles from Enterprise on a lease-to-own basis, after a 36 month lease period, as the 45 Vehicles are currently unavailable from any other source, and the next available date to place orders for these vehicles will be in approximately six months due to manufacturer supply issues.
Fiscal Impact:
Funding for the annual debt service payment for the 45 vehicles in the amount of $646,656.36 is currently included in the Debt Service Fund (Fund 223) of the FY 21 Adopted Operating Budget and will be requested in the subsequent three fiscal years. At the end of the contract term, a termination fee of $400 per vehicle totaling $18,000 will be due. If the City chooses to purchase the vehicles at the end of the three year term an additional payment will be due in the amount of $355,641.28.
Recommended for inclusion on the agenda by:
Annalie Holmes, Assistant Director, Department of Public Works
Peter Bieniek, Director, Department of Public Works
George R. Keller, Jr., CPPT, Deputy City Manager, Public Safety