The North Miami Beach Police Department is requesting the approval of a fourteen month open-ended equity lease agreement for the purpose of leasing undercover vehicles.
In line with the North Miami Beach Strategic Plan’s mission of providing excellent municipal services and being financially responsible, the City identifies contracts competitively solicited and awarded by other governmental agencies as favorable procurement method.
The Enterprise Vehicle Lease Agreement was competitively procured through the City of Lauderdale Lakes, Florida, pursuant to RFP No. 15-1301-02R, Purchase /Lease / Finance Municipal Vehicles. Enterprise Fleet Management, Inc. has agreed to provide these vehicles under similar pricing terms and conditions.
On October 17, 2017, the City Commission approved Resolution #2017-101 in the estimated annual amount of $124,000 for the rental of undercover vehicles with Enterprise Leasing Company of Florida, LLC. The master equity lease agreement will take the place of monthly rental of undercover vehicles with an anticipated cost savings of approximately $40,000 annually. The City’s current monthly cost will be reduced from $9,334.00 to $6,000 per month. The monthly cost includes all vehicle maintenance.
Section 3-4.3 of the City’s Code of Ordinances upon a determination that the supplies, materials, equipment or contractual services needed by the City are comparable to solicitation procedures substantially equivalent to the requirements of the North Miami Beach, the City may procure, without following formal contract procedure, all supplies, materials, equipment and contractual services.
The proposed lease instrument is a fourteen month open-end equity lease for twelve (12) vehicles, of which at the end of each seven month term, the first twelve (12) vehicle increment will be returned and replaced by twelve (12) new vehicles.
Enterprise projects a re-sale value exceeding the reduced book value at the end of each seven month term based upon accredited ALG Residual Data (Automotive Lease Guide); and combined with Enterprise's buying and purchasing power and the manufacturer's government incentives.
The City Manager along with the Chief of Police and Chief Procurement Officer believe Enterprise’s leasing rates for the groups of vehicles that are offered are fair and reasonable and recommend that the City Commission rescind Resolution #2017-101 and approve and authorize the City Manager or designee to enter into an agreement with Enterprise Fleet Management, Inc. in an estimated annual $72,000. |