TO: Mayor and Commissioners
FROM: Jeffrey Goldman, Police Chief
THROUGH: Mark R. Lauzier, City Manager
DATE: February 6, 2018
Title
LEASE AWARD TO ENTERPRISE FLEET MANAGEMENT, INC. FOR VOLUNTEER PROGRAM VEHICLES IN THE AMOUNT NOT TO EXCEED $120,000
Body
Recommended Action:
Recommendation
Motion to approve lease award to Enterprise Fleet Management, Inc. for Volunteer Program vehicles in the amount not to exceed $120,000 for twelve (12) vehicles over the thirty-six (36) month lease term.
Motion to allow the City Manager to execute all necessary documents related to the lease award.
Body
Background:
The Police Department seeks approval to award the lease contract for Volunteer Program vehicles to the lowest bidder, Enterprise Fleet Management, Inc. The contract was bid via the ITB# 2018-19. The lease is for twelve (12) vehicles at $261.60 a month per vehicle. The entire cost for twelve (12) vehicles over the thirty-six (36) month lease is $113,011.20. Additional $6,988.80 requested for the term of the lease is for any miscellaneous costs such as fees associated with the lease end inspection and repairs, as well as potential excess mileage fees.
The Volunteer Program vehicles are used to patrol neighborhoods and throughout the City, monitor parking lots and garages, provide a high visibility presence in shopping centers, and monitor sites identified as potential risks for terrorism. This is a crime prevention tool that has been used effectively by the City for years. This activity supplements that of our Patrol Officers and saves the City a considerable amount of money compared to what it would cost to have salaried staff perform this service. In 2017, the Volunteers logged 29,312 hours, which illustrates the level of work performed.
Each year, Independent Sector, a coalition of nonprofits, foundations, and corporations, calculates the national average hourly value of volunteer time. This value is based on the average earnings for private non-agricultural workers, as released by the Bureau of Labor Statistics, U.S. Department of Labor, and is increased by 12 percent to account for fringe benefits. Based on Independent Sector, the national estimated value of volunteer time for 2016 is $24.14 per hour. The estimated value of volunteer time for 2016 for the State of Florida is $22.70. For the City of Delray Beach, police volunteers perform many of the functions of the Community Service Officer (CSO) position. The CSO position starts at $17.78 per hour. If we take 15% off for functions not performed by the police volunteers, a rate of $15.11 could be used to calculate the financial benefit of the Volunteer Program. Based on volunteer hours logged for 2017 of 29,312, the benefit is $442,904.32, more than 11 times the cost of the annual Volunteer Program vehicle lease. Even after accounting for the costs of the uniforms and equipment, and other costs related to the management of the Volunteer program, the resulting benefit is about 10 times more than the cost of the annual vehicle lease. If the State of Florida or national estimated values are used, the benefit to the City of Delray Beach would be even greater.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
Funding is available from account number 001-21-110-521.44-20 Rental & Leases / Vehicle Rental / Lease account for Fiscal Year 17/18.
Fiscal impact for FY 17/18 for this recurring cost is $18,840 lease cost based on six months of the lease remaining for the current fiscal year and $20,000 estimated cost for vehicle equipment and decals needed to outfit the vehicles. Annual recurring lease cost for full twelve (12) months is $37,670. The benefit of the Volunteer Program is about 10 times the annual cost of the lease.