HomeMy WebLinkAboutItem 10e - PD Vehicle Lease Agreements
DATE: March 4, 2025
TO: Honorable Mayor and City Council
FROM: Roy Nakamura, Police Chief
By: Amber Abeyta, Management Analyst
SUBJECT: POLICE DEPARTMENT LEASE OF TWO VEHICLES FROM LONGO
TOYOTA FOR THREE YEARS WITH THE OPTION TO RENEW FOR
THREE ADDITIONAL ONE-YEAR PERIODS, IN AN AMOUNT NOT TO
EXCEED $38,407
CEQA: Not a Project
Recommendation: Approve
SUMMARY
The Detective Bureau currently utilizes two vehicles that are leased from Enterprise Fleet
Management (“EFM”). These vehicles are used for both investigative and administrative
roles. Recently, EFM informed the Police Department that they no longer provide leases
for less than 10 vehicles. An informal bidding process was conducted to explore new
vehicle lease options. Three bids were submitted from: Longo Toyota, Sierra Chevrolet
and Ram, and Sierra Honda of Monrovia. After a detailed evaluation, it was determined
that the bid from Longo Toyota best meets the Department’s needs and offers the most
cost-effective solution.
It is recommended that the City Council approve the lease of two vehicles from Longo
Toyota for the Police Department for three years, with the option to renew for three
additional one-year periods, in an amount not to exceed $38,407.
BACKGROUND
Since 2018, the Detective Bureau of the Police Department has utilized two leased
vehicles, a Toyota Sienna (sedan) and a Chevy Silverado (compact truck) from EFM.
The monthly lease for both vehicles totals $1,199. These vehicles are utilized for different
activities, encompassing both investigative and administrative roles. Occasionally, they
are employed in a support capacity where marked units are unnecessary or not suitable
for the task at hand. Due to the timeframe of traditional lease agreements (lasting 2-3
years) and the need to update the vehicles, EFM was approached to explore the
possibility of initiating a lease for two new vehicles. EFM explained that they no longer
Vehicle Lease – Longo Toyota
March 4, 2025
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offer lease agreements for less than 10 vehicles; therefore, upon termination of the
current lease with EFM, negotiating a new lease will not be possible, as the Department
only requires two vehicles.
Since the lease with EFM is no longer an option, and to comply with the City’s
procurement policy, a Small/Informal bid was processed, and three dealerships were
contacted to obtain bids to lease two new vehicles. Bids were specifically requested for
vehicles with similar styles as the current lease, which includes a sedan and a compact
pickup truck. The results are outlined in the table below:
Vehicle Monthly Payment Initial Cost
Longo Toyota
2025 Toyota Tacoma Truck $506.86 $0.00
2025 Toyota Camry $559.98 $0.00
Subtotal: $1,066.84 $0.00
Total: (36-month lease + Initial Cost) $38,406.24
Sierra Chevrolet and Ram
2025 Chevy Colorado Truck $509.56 $1,342.39
2025 Chevy Equinox SUV $511.91 696.74
Subtotal: $1,021.47 $2,039.13
Total: (36-month lease + Initial Cost) $38,812.05
Sierra Honda of Monrovia
2025 Honda Accord Sedan $458.86 $1,707.31
2024 Honda Ridgeline Truck $577.09 $2,081.04
Subtotal: $1,035.95 $3,788.35
Total: (36-month lease + Initial Cost) $41,082.55
The lowest and most responsive bid was received from Longo Toyota for a 36-month
lease, in the amount of $38,406.24. In addition, a two-year maintenance plan is included
with the Toyota lease, while the bids from Sierra Chevy and Sierra Honda do not include
maintenance. At the conclusion of the second year, the City will be responsible for
performing routine maintenance.
DISCUSSION
The lease offered by Longo Toyota best meets the Department’s needs and is the most
cost effective. The lease includes a 2025 Toyota Tacoma Truck and 2025 Toyota Camry.
There is no initial cost for the lease and the monthly payments total $1,066.84; over the
three-year period, the lease would cost $38,406.24. Since the Department currently
leases vehicles at $1,199 per month, there are sufficient funds in the General Fund
Operating budget to cover the new monthly payment of $1,066.84 for the remainder of
this Fiscal Year.
Vehicle Lease – Longo Toyota
March 4, 2025
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ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can
be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
There is no initial cost for the lease and the monthly payments total $1,066.84, which
generates slight savings over the current lease arrangement. Over the three-year period,
lease costs for the two vehicles will total $38,406.24. Sufficient funds in the amount of
$4,267 are budgeted in the Fiscal Year 2024-25 General Fund Operating budget to cover
the cost of the vehicle lease for the remainder of the Fiscal Year. Funds for future years
will be budgeted in the General Fund Operating budget.
RECOMMENDATION
It is recommended that the City Council determine this action is not a project under the
California Environmental Quality Act (“CEQA”); and approve the Police Department lease
of two vehicles from Longo Toyota for three years, with the option to renew for three
additional one-year periods, in an amount not to exceed $38,407.
Attachment: Draft Lease Agreements