Yucaipa council asks staff for refined fleet-lease plan after 10-year comparison shows modest cost premium

City staff presented a 10-year analysis of leasing versus purchasing the city's non-Sheriff vehicle fleet, recommending further study after describing trade-offs between higher financing costs and operational benefits.

"The lease option would provide a more efficient solution at a higher financial cost," staff said, showing the city's fleet of roughly 20 vehicles and an apples-to-apples comparison assuming two five-year lease cycles over 10 years. Staff said maintenance assumptions for years six through 10 for the purchase option were roughly $4,500 per vehicle per year (about $472,000 cumulatively) and that lease vendors could provide credit for residuals when vehicles are traded at the start of the second lease term, though those residuals were not included in the presented comparison.

The fire chief described operational advantages of leased vehicles, citing uptime and simplified procurement for fully kitted emergency vehicles: "This is a one-stop shop' 'we get the build-out and it's delivered," he said. Supporters noted leasing could improve recruitment and reduce weeks-long downtime for vehicles awaiting parts.

Skeptical councilmembers warned of long-term lock-in and higher costs for routine damage, mileage limits, and specialized equipment. A council member with fleet experience said that some leased programs increase costs through damage and outfitting and urged caution: "When you go to lease, it's sometimes more costly because of damages," he said. Staff and a leasing vendor representative (Bancorp) responded that contracts can be structured with low-dollar residuals and tailored terms to address mileage and outfitting concerns.

Council did not take a formal vote to adopt a lease program. Instead, members gave staff general consensus direction to return at the next meeting with a refined plan that: (1) identifies a prioritized set of year‑one replacement candidates; (2) provides firm vendor quotes for residuals, mileage, and outfitting (including fire apparatus and medic squads); and (3) disaggregates the cost difference in the first five years versus savings from residuals at lease-end. Staff noted the current fiscal year already includes roughly $150,000–$160,000 budgeted for two vehicle replacements and can incorporate that into next steps.

The council debate underscored trade-offs between higher predictable annual leasing costs and potential long-term savings in maintenance, staff time, and service reliability. Staff will return with a narrowed list and procurement-level quotes for council review.