REPORT TO THE CITY COUNCIL
December 10, 2015
FROM: MICHAEL LIMA, Controller
Finance Department
BY: PHILLIP HARDCASTLE, Principal Accountant-Debt Management
Finance Department
SUBJECT
Title
RESOLUTION - Authorizing the First Amendment to the Equipment Lease-Purchase Agreement with Community First National Bank, as Lessor, for the acquisition, purchase, financing and leasing of certain equipment for the Fresno Fire Department for Fiscal Years 2016 and 2017; authorizing the execution and delivery of documents required in connection therewith; and authorizing all other actions necessary to the consummation of the transactions contemplated by this resolution
Body
RECOMMENDATION
Staff recommends the City Council award an extension of the Fire Equipment Lease-Purchase Agreement to acquire public safety vehicles and equipment budgeted in fiscal years 2016 and 2017, and authorizes the Controller or designee to execute same.
EXECUTIVE SUMMARY
The Fire Department is in need of two ladder trucks, three engines, seven light duty vehicles, and 320 radios for field personnel, which were approved for purchase and financing in the FY 2016 Adopted Budget. In addition, the public safety fleet is expected to need additional equipment in FY 2017 in order to keep up with the demand of the Police and Fire Departments.
The Fire Department currently has a Fire Equipment Lease-Purchase Agreement with Community First National Bank for the purchase of equipment that was budgeted in FY 2015. The lender has offered to extend their line of credit and increase that line of credit by an additional $15 million to a total of $22.15 million, and provide rates that are increasing by only 15 basis points (bps), or 0.15%. Rates on purchases already financed are between 2.31% and 2.92%. Given these rates, staff believes the City would not benefit by going through an RFP process at this time. This line of credit will be available until no later than Aug...
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