SR 12-19-2023 5F
City Council
Report
City Council Meeting: December 19, 2023
Agenda Item: 5.F
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To: Mayor and City Council
From: Ramon Batista, Police Chief, Police Department
Subject: Approval of Second Modification to Master Equity Lease Agreement with
Enterprise Fleet Management, Inc. for Vehicle Leasing Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of exemption pursuant to Sections 15301 (Existing Facilities),
15302 (Replacement or Reconstruction), and 15061(b)(3) (Common Sense
Exemption) of the California Environmental Quality Act (CEQA) Guidelines;
2. Authorize the City Manager to negotiate and execute a second modification to
Master Equity Lease agreement #4631 in the amount of $600,000 with
Enterprise Fleet Management, Inc. to provide vehicle leasing services for the
Police Department. This will result in a nine-year amended agreement with a
new total amount not to exceed $1,638,120, with future year funding contingent
on Council budget approval.
Summary
The Santa Monica Police Department utilizes a variety of vehicles for its undercover
operations. These vehicles are used daily as the primary mode of transportation by the
undercover units and are a necessary element in the Department’s regular operations.
Due to the undercover nature of these operations, the vehicles need to be interchanged
regularly to remain inconspicuous. The Police Department is requesting to extend the
term and increase the amount of the contract to lease eight new undercover (UC)
vehicles, to replace the current UC vehicles that have reached the end of their lease
term. This second modification would result in increasing the contract budget from
$1,038,120 to $1,638,120 and extend the term of the agreement by two additional
years, through 2028 to cover the 36-month term of the new leases. The current
agreement expires in 2026 and the term extension is based on the time for new vehicle
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delivery, 36-month lease term, vehicle upfitting with police equipment, and de -
commissioning at the end of the lease term.
Discussion
On April 26, 2018, Sourcewell (formerly known as National Joint Powers Alliance), a
government agency that establishes nationally leveraged and competitively solicited
purchasing contracts for government and non-profits, issued a Request for Proposals
(RFP) for Fleet Management Services. Under the terms of the RFP and the resulting
Sourcewell Agreement with Enterprise Fleet Management, Inc., similar nationally
leveraged volume purchasing discounts were also available to other government
agencies. On November 13, 2019, the City exercised the procurement option of Santa
Monica Municipal Code 2.24.250(c), which authorizes an exception to the competitive
process if competitive procedures were followed by another government agency, and
entered into a Master Lease Agreement with Enterprise Fleet Management for vehicle
leasing services. The pricing offered through the Enterprise Fleet Management contract
(including the option to apply the equity from leased vehicles towards the replacement
vehicles) continues to be beneficial to the City. It keeps costs consistent, while the
vehicle market has seen a significant price increase for newer vehicles. Enterprise
Fleet Management’s large network of dealers also provides the Undercover Unit a wide
selection of vehicles.
On January 26, 2021, the City modified this agreement to include an additional 20
vehicles for various City Departments, including eight vehicles for the Police
Department’s Undercover unit. Prior to this agreement, the Police Department would
regularly utilize the services of car rental companies for undercover operations. Leasing
has proven to be a cost-effective strategy over renting, while also allowing the
Department to swap vehicles to prevent from being recognized in undercover
operations.
Environmental Review
The agreement for leasing of vehicles is exempt from CEQA pursuant to Section s
15301, 15302, and 15061(b)(3) of the CEQA Guidelines. Section 15301 exempts Class
1 (Existing Facilities) projects from CEQA, which include the operation, repair,
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maintenance, permitting, leasing, licensing, or minor alteration of existing public or
private structures, facilities, mechanical equipment, or topographical features, involving
negligible or no expansion of existing or former use. Section 15302 exempts Class 2
(Replacement or Reconstruction) projects which include the replacement or
reconstruction of existing structures and facilities where the new structure will be
located in the same site as the structure replaced and will have substantially the same
purpose and capacity as the structure replaced. Section 15061(b)(3) (Common Sense
Exemption) states that CEQA does not apply “where it can be seen with certainty that
there is no possibility that the activity in question may have a significant effect on the
environment.” The agreement would lease vehicles to replace current police vehicles,
and therefore, it has determined that the project is exempt pursuant to Sections 15301,
15302, and 15061(b)(3) of the CEQA Guidelines. Furthermore, none of the exceptions
to categorical exemptions set forth in Section 15300.2 of the CEQA Guidelines apply.
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Past Council Actions
Meeting Date Description
01/26/21 (attachment
A)
Approval of First Modification to Master Equity Lease
Agreement with Enterprise Fleet Management, Inc.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund to increase
the amount of the agreement with Enterprise Fleet Management, Inc. for vehicle leasing
services.
Agreement Modification Request
Agreement #
Current Authorized
Amount
FY 2023-24
Budget
Modified Request
Amount
Future Years Dept/CIP Account # Total Revised
Contract Amount
4631 $832,120 $0 $0 C7000010.689000 $832,120
$206,000 $120,000 $480,000 011800004.525020 $806,000
Total: $1,038,120 $120,000 $480,000 $1,638,120
Future year funding is contingent on Council budget approval.
Prepared By: Jose Arroyo, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. January 26, 2021 - Staff Report (Web Link)
B. Enterprise Oaks Initiative
C. Master Equity Lease Agreement Contract #11134 (CCS)
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5.F.bPacket Pg. 245Attachment: Enterprise Oaks Initiative (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
11/13/2019
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Packet Pg. 246 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 247 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 248 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 249 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
RSM
11/12/2019
Brock Flynn
11/13/2019
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Packet Pg. 250 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 251 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
Brock Flynn
RSM
11/12/2019
11/13/2019
11/13/2019
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Packet Pg. 252 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 253 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
11/13/2019
11/13/2019
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Packet Pg. 254 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
Brock Flynn
Brock Flynn
RSM
11/12/2019
5805 Sepulveda Blvd Ste 800
Sherman Oaks, CA 91411
NA
11/13/2019
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Packet Pg. 255 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
11/13/2019
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Packet Pg. 256 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 257 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
11/12/2019
Lane Dilg
City Attorney
11/12/2019
Brock Flynn
RSM
BF
11/13/2019
Rick Cole
City Manager
Denise Anderson-Warren
City Clerk
11/13/2019
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Packet Pg. 258 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 259 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 260 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 261 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 262 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 263 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
5.F.c
Packet Pg. 264 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 265 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 266 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 267 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 268 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 269 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 270 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 271 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 272 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 273 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 274 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 275 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 276 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 277 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 278 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 279 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 280 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 281 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 282 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 283 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 284 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 285 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 286 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 287 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 288 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 289 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 290 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 291 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 292 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 293 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 294 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)
DocuSign Envelope ID: 740EF3F6-22FD-47FD-A9D5-513859573235
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Packet Pg. 295 Attachment: Master Equity Lease Agreement Contract #11134 (CCS) (6094 : 2nd Mod Enterprise Lease)