HomeMy WebLinkAbout04 POLICE DEPARTMENT VEHICLE PURCHASEDocuSign Envelope ID: EFEBA85B-0515-43D5-BCC9-D47CFOD221 FO
Agenda Item 4
DS
Reviewed: Q�
City Manager
Finance Director
MEETING DATE: JUNE 18, 2024
TO: ALDO E. SCHINDLER, CITY MANAGER
FROM: STU GREENBERG, CHIEF OF POLICE
SUBJECT: POLICE DEPARTMENT VEHICLE PURCHASE
SUMMARY
The Tustin Police Department currently has three (3) leased vehicles in our
possession (2021 Toyota Tundra, 2021 Toyota Tacoma, and 2021 Toyota Camry)
assigned to the Criminal Investigations Unit and Community Relations Unit. The lease
for the 2021 Toyota Tundra matures on July 1, 2024, the lease for the 2021 Toyota
Tacoma matures on July 13, 2024, and the lease for the 2021 Toyota Camry matures
on July 19, 2024.
These three (3) vehicles will need to be retained or replaced due to the needs of the
Criminal Investigations Unit and Community Relations Unit. Based on the expected payoff
of the vehicles, we would be able to purchase all three (3) vehicles for a fraction of the
retail price.
RECOMMENDATION
It is recommended the City Council authorize:
1. The purchase of the 2021 Toyota Tundra from Toyota Financial Services
at the end of the lease, July 1, 2024, in the amount of $38,173.90,
including sale tax and DMV fee.
2. The purchase of the 2021 Toyota Tacoma from Toyota Financial Services
at the end of the lease, July 13, 2024, in the amount of $28,928.75,
including sales tax and DMV fee.
3. The purchase of the 2021 Toyota Camry from Toyota Financial Services
at the end of the lease, July 19, 2024, in the amount of $16,256.92,
including sales tax and DMV fee.
DocuSign Envelope ID: EFEBA85B-0515-43D5-BCC9-D47CFOD221 FO
POLICE DEPARTMENT VEHICLE PURCHASE
JUNE 18, 2024
Page 2
4. Declare, in accordance with the Tustin City Code — Section 1630a (2), 2012
Dodge Caravan (Unit #3526, VIN - 2C4RDGBG2CR265074), previously
assigned to the Gang Unit, as surplus and not required for public use and
authorize the sale at the next public auction, crediting net proceeds to applicable
City revenue fund.
FISCAL IMPACT
The total cost to purchase these three vehicles from Toyota Financial Services at the
end of their respective leases is $83,359.57. There are sufficient funds in the Fiscal
Year 2024-25 proposed budget in the Equipment Fund (Fund 187) to complete the
buyout and add them to the Police Department's fleet.
It's anticipated that the surplus value of the 2012 Dodge Caravan (Unit #3526,
VIN- 2C4RDGBG2CR265074) is $3,000.00.
CORRELATION TO THE STRATEGIC PLAN
The proposal supports the implementation of Goal B: Public Safety and Protection of
Assets: Ensure Tustin is an attractive, safe and well -maintained community in which its
residents feel pride.
BACKGROUND/DISCUSSION
In 2021, the City of Tustin entered into lease agreements with Toyota Financial Services
for the 2021 Toyota Tundra, 2021 Toyota Tacoma, and 2021 Toyota Camry. Based on
the three (3) year lease agreement, the residual payoff for the vehicles currently valued
are $35,397.59 (Tundra), $26,817.40 (Tacoma), and $15,057.00 (Camry). The current
condition of the new/used vehicle market shows the value of these vehicles to be
approximately $48,894 (Tundra), $40,907 (Tacoma), and $26,561(Camry). Both of these
figures were confirmed on May 29, 2024.
During the COVID-19 pandemic, dealerships and manufacturers across the nation either
closed temporarily or operated at a reduced capacity. This along with the US inflation
affected the cost of modestly appointed new retail vehicles. Due to the current state of
the new vehicle market, staff is requesting the approval to purchase these vehicles
outright, as they are already in our fleet. The purchase of these vehicles could be done
at a fraction of the retail price, and without delays normally associated with brand new
production vehicles.
DocuSign Envelope ID: EFEBA85B-0515-43D5-BCC9-D47CFOD221FO
POLICE DEPARTMENT VEHICLE PURCHASE
JUNE 18, 2024
Page 3
Unmarked Police Vehicles to be Retained:
Unit 3554 2021 Toyota Tundra
18,109 miles
Unit 3550 2021 Toyota Tacoma
5,655 miles
Unit 3552 2021 Toyota Camry
7,206 miles
VPnrinr
Toyota Financial Services (Lessor)
Cost Breakdown
Total Cost Per Vehicle Purchase
One (1) 2021 Toyota Tundra @ $35,397.59
CA State Sales Tax @ $2,743.31
CA DMV Fee @ $33
Total Purchase Price: $38.173.90
One (1) 2021 Toyota Tacoma @ $26,817.40
CA State Sales Tax @ $2,078.35
CA DMV Fee @ $33
Total Purchase Price: $28,928.75
One (1) 2021 Toyota Camry @ $15,057.00
CA State Sales Tax @ $1,166.92
CA DMV Fee @ $33
Total Purchase Price: $16,256.92
Grand Total Purchase Price: $83,359.57
Surplus Retired Vehicles
All retired vehicles will be considered surplus, and the Public Works Department will
dispose of the remaining surplus vehicles at the next available public auction and credit
the net proceeds to the applicable City Revenue Fund.
=DocuSigned
66
STU GREENBERG
Chief of Police
EDocu Signed by:
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LUIS GARCIA
City Operations Division Commander