Loading...
HomeMy WebLinkAboutItem 3h - Purchase of Undercover Bait Car from AAADATE TO: FROM: September 16, 2014 Honorable Mayor and City Council Chief Robert Guthrie By: Brett Bourgeous, Sergeant STAFF REPORT Police Department SUBJECT: VEHICLE TRANSFER AGREEMENT WITH INTERINSURANCE EXCHANGE OF THE AUTOMOBILE CLUB ( "AAA ") FOR THE PURCHASE OF AN UNDERCOVER BAIT VEHICLE FOR THE POLICE DEPARTMENT IN AN AMOUNT NOT TO EXCEED $16,727 Recommendation: Approve SUMMARY It is recommended that the City Council authorize and direct the City Manager to execute a three year contract with Interinsurance Exchange, the Automobile Club of Southern California's ( "AAA ") Vehicle Exchange Program (the "Exchange ") for an undercover "Bait Car" for an amount not to exceed $16,727. This Program will aid the Police Department with investigations related to auto thefts and burglaries, frauds, and various surveillances. The Exchange offers law enforcement agencies access to vehicles that can be used to combat vehicle thefts, fraud, and auto burglaries. AAA has a selection of previously stolen /recovered vehicles in their inventory, which are reserved for this Program. When a vehicle is stolen for a period of time exceeding 30 days, AAA settles the claim by paying off the owner. When the vehicle is ultimately recovered, AAA subsequently retains the vehicle for sale at auction, or use by local police agencies. DISCUSSION The Arcadia Police Department is interested in partnering with AAA in order to combat vehicle thefts, fraud, and auto burglaries in Arcadia. Staff will monitor crime trends throughout the City and deploy the vehicle in areas that have, or are experiencing, increased criminal activity. Valuables will be left in the "Bait Car," in plain sight, and staff will conduct undercover surveillance on the vehicle, in hopes of identifying and arresting thieves. The overall goal of our involvement in this Program is to reduce the threat of continued criminal activity in Arcadia and the victimization of our residents. Bait Vehicle Purchase — AAA Insurance September 16, 2014 Page 2 of 4 In order to enroll in this program, the Department will respond to the AAA "Exchange" facility and select a vehicle from their current inventory. Once a vehicle is chosen and "held," a contract must be reviewed and signed by an agency representative, the City Manager or City Attorney, and a AAA representative. By signing the contract, the Department promises to adhere to the following stipulations: 1. Register the vehicle with the DMV within fourteen (14) days of transfer. 2. Surrender the existing license plates within two (2) days of registering the vehicle to the AAA or the DMV and procure new license plates. 3. Pay all DMV fees. 4. Accept the vehicle "as is," with no guarantees or warranties. 5. Agree to use the vehicle for activities and investigations regarding auto theft /insurance fraud; However, AAA agrees that operational decisions regarding the deployment of the vehicle are within the sole discretion of the agency. 6. Agree the transfer of the vehicle will terminate three (3) years from the time of registration. 7. Agree that either party may terminate the agreement at any time, with thirty (30) days written notice. 8. Agree to provide liability and comprehensive insurance coverage for the vehicle. 9. Agree that AAA will be held harmless for any property damage or injury relating to the transfer and use of the vehicle. 10.Agree that after the three (3) year period has concluded, the Police Department will return the vehicle back to the AAA Exchange, who will then register the vehicle back into their name. 11. The Department can then terminate participation in the program, or re- enroll with an additional vehicle. The Department does not use existing unmarked vehicles as "Bait" vehicles because each unmarked car has emergency lights, sirens, and radios installed in the interior, which gives it away as a police vehicle. In addition, vehicle thefts have a tendency to change with time. For example, different makes and models become more or less popular targets for theft. The AAA "Bait Car" gives the Department the option of trading in a vehicle as the demand and purpose of the vehicle changes. Therefore, due to the Program's ability to help reduce crime, increase safety in the community, and reduce costs to the City, it is recommended that the City Council authorize and direct the City Manager to approve a three year contract with AAA for an undercover "Bait Car ". FISCAL IMPACT The cost to both enroll in the program and sustain it over the contract period of three years is minimal as the City will only be responsible for paying the registration fees, monthly insurance fees, and any vehicle maintenance and repairs. The City will not incur any sales costs for the vehicle, it will be provided by AAA at no charge. The Department would like to equip the vehicle with a remote kill switch, which would Bait Vehicle Purchase — AAA Insurance September 16, 2014 Page 3 of 4 prevent the vehicle from being driven by potential auto thieves. However, this would be a one -time cost of $977 during year one of the Agreement only. In regards to repair costs, the City would be responsible for repairs to any damages sustained during the use /deployment of the vehicle such as, broken windows, door locks, and ignition switches. We anticipate annual repairs to be approximately $1,350 per year based on operating expectations. These costs may be incurred numerous times or not at all during the deployment and is dependent upon the nature of the theft incident. A list of anticipated expenses is listed below: Estimated /Potential Costs for Undercover "Bait Vehicle" For 3 -year Agreement with Automobile Club Year 1 Year 2 Year 3 Fees (FY14 -15) (FY15 -16) (FY16 -17) Justification Annual Maintenance $2,000.00 $2,000.00 $2,000.00 Tires, Alignments, Brakes, and Oil Changes DMV Registration $500.00 $500.00 $500.00 The exact registration cost is unknown at this time since a vehicle cannot be held until the Agreement is approved. Registration fees are based on the Vehicle Make /Model /Year. A rough estimate would be $100 to $500 per year. Up to $1,400 per year depending on Vehicle Vehicle Insurance $1,400.00 $1,400.00 $1,400.00 Make /Model /Year Possible Vehicle $1,350.00 $1,350.00 $1,350.00 Vehicle Door Lock Repair, $150.00 Repairs As a Result of Vehicle Ignition Switch Repair, $200.00 Theft Damage Vehicle Side Car Window Replacement, $400.00 Vehicle Rear Windshield Replacement, $600.00 Remote Kill Switch $977.00 One time installation fee during year -1 only Total Annual Cost Estimate $6,227.00 $5,250.00 $5,250.00 Total Cost Estimate for 3 -year Agreement $16,727.00 The total cost for the three year Agreement will not exceed $16,727. The amount for FY 2014 -15 has been budgeted in the City's Operating Budget, under Police Investigations. Bait Vehicle Purchase — AAA Insurance September 16, 2014 Page 4 of 4 RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a three year Vehicle Transfer Agreement with Interinsurance Exchange of the Automobile Club ( "AAA ") for the purchase of an undercover bait vehicle for the Police Department in an amount not to exceed $16,727. Approved Dominic Lazzar City Manager Attachment: Vehicle Transfer Agreement VEHICLE TRANSFER AGREEMENT THIS AGREEMENT made and entered into this day of by and between hereinafter referred to as AGENCY" and the INTERINSURANCE EXCHANGE OF THE AUTOMOBILE CLUB with principal offices at 3333 Fairview Road, Costa Mesa, CA 92626, hereinafter referred to as "EXCHANGE ". RECITALS WHEREAS, the AGENCY desires to acquire a vehicle in order to conduct investigations regarding automobile theft and insurance fraud; and WHEREAS, the EXCHANGE has a vehicle of the appropriate make and model that it is willing to make available for AGENCY to conduct its investigations; NOW, THEREFORE, in consideration of the mutual covenants, benefits, and premises herein stated, the parties agree as follows: 1. The EXCHANGE shall give the AGENCY the title to and the vehicle currently registered to the EXCHANGE, identification number make and year ,( "VEHICLE ") The AGENCY shall register the VEHICLE with the Department of Motor Vehicles ( "DMV ") within fourteen (14) business days after this Agreement is executed by all parties in its own name or in any other name other than the EXCHANGE and its affiliated companies. Within two (2) days after the AGENCY registers the VEHICLE with the DMV, the AGENCY shall place new and different license plates on the VEHICLE and surrender the original plates to the EXCHANGE or to the DMV as may be required by law. The AGENCY is responsible for all DMV fees. 2. The AGENCY shall accept VEHICLE "as is" with no guarantees or warranties. The VEHICLE shall only be used by the AGENCY for activities and investigations regarding auto theft and/or insurance fraud. However, the EXCHANGE agrees that the operational decisions regarding the deployment of the VEHICLE are within the sole discretion of AGENCY. 3. The transfer of the VEHICLE is effective as of and shall terminate on . During this period, the AGENCY is responsible for all routine maintenance and repairs on the VEHICLE. 4. Either party may terminate this Agreement at any time, with or without cause, in its sole discretion, with thirty (34) days written notice. 5. The AGENCY shall provide adequate liability and comprehensive insurance coverage for the VEHICLE, which may be self - insured as provided by California law. 6. The AGENCY shall indemnify, hold harmless, release and defend the EXCHANGE, its agents, officers, directors, governors, employees, affiliated companies and insured from any and all claims, losses, demands, causes of action, suits, damages and liabilities, including but not limited to property damage or bodily injury, relating in any way or resulting from any AGENCY employee, agent or contractor's use, operation and/or maintenance of the VEHICLE. 7. The EXCHANGE waives any claims for material damage to the VEHICLE. POL DOL On the day after the termination of this Agreement, the AGENCY shall return the VEHICLE, regardless of its condition, to the EXCHANGE at the EXCHANGE's Salvage Lot located at 16920 S. Figueroa Street, Gardena, California. At that time, the AGENCY will give to the EXCHANGE the 'VEHICLE and its executed title. Thereafter, the EXCHANGE will register the VEHICLE with the DMV within fourteen (14) business days after the VEHICLE is returned in its own name or in any other name other than the AGENCY'S. Within two (2) days after the EXCHANGE registers the VEHICLE with the DMV, the EXCHANGE surrender the replacement license plates to the AGENCY or to the DMV as required by law. The EXCHANGE is responsible for all DMV fees related to re- registering the VEHICLE. 8. The AGENCY may not assign this Agreement without the express written consent of the EXCHANGE. 9. This Agreement may not be modified, nor may any of the terms, provisions or conditions be modified or waived or otherwise affected, except by a written amendment signed by all parties. 10. The AGENCY and the EXCHANGE represent that the individual executing this Agreement on behalf of such party is duly authorized to execute such agreements for that party. Date: Date: Interinsurance Exchange of the Automobile Club By its Attorney in Fact, ACSC Management Services, Inc. UZ Title: MANAGER By: Title: Phone: Fax: (AGENCY) Approved to Form: * *Note: This section is not required, unless your department requires it ** By: Title: City Attorney Date: By: Title: City Clerk Date: REVOt/z ®z 1