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Norwood council approves lease for three police cruisers after vendor revises price
Summary
The Norwood City Council approved financing for three police cruisers after Enterprise reissued higher pricing; council members said the purchase fits the city's capital plan and requires updating the FRP.
Norwood City Council voted to approve the debt incurred for leasing three police cruisers after the vendor revised its original pricing, council members said during the meeting.
The council approved the lease following a report from the city’s police chief that Enterprise misquoted the outfitting costs on an earlier quote, prompting the vendor to issue higher numbers that reduced the purchase from four cars to three. "They misquoted us. They didn't charge the full amount for the outfitting as a total package for the car," the police chief said.
The change left the city with a financing arrangement characterized as a 48-month agreement, after which a small residual payment remains. "After this 48 months is up, we will owe these cars for 40 or $86 a piece," the police chief said. Anna Mary, a city finance staff member, said the lease fits within the city's financial reporting and capital outline and should be reflected in the Financial Responsibility Plan. "Because it's within the outline of the current FRP, then we have no problems with moving forward with this," Anna Mary said.
Why it matters: The council's decision changes the size of the planned fleet purchase and affects the capital and lease reporting for the coming budget period. City staff said the lease and any principal and interest payments will need to be shown in the FRP scheduled for update in March.
Details: The council initially discussed leasing four cruisers but moved forward with three after Enterprise issued the higher quote. The council heard that the financing runs for 48 months and includes a residual payment at the end of the term as described by the police chief. A council member also noted that City Council previously approved the three leases when the item went before that body.
The motion to approve the debt incurred for the lease of the three cruisers was made by Mr. Sheppard and seconded by Ms. Garvey. The council roll call recorded votes in favor by Mayor Schneider, Mr. Sheppard, Mr. Gomez, Ms. Garvey and the presiding member; the motion passed.
The meeting record shows staff direction to update the FRP and to record the lease and its principal and interest payments in the city's capital reporting. No amendments to the lease terms were recorded during the meeting.
Votes at a glance: approve debt for lease of three police cruisers — motion passed (yes votes recorded). Also during the session the council approved and accepted the Jan. 21 meeting minutes and later moved to adjourn; both procedural items passed by roll call.
What’s next: City finance staff indicated the FRP due in March should be updated to reflect the lease and associated payments; staff will incorporate the lease information in that report.
