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