REPORT TO THE CITY COUNCIL
June 11, 2015
FROM: KERRI L. DONIS, Fire Chief
Fire Department
SUBJECT
Title
RESOLUTION - Modifying of Resolution No. 2015-49 relating to the Master Equipment Lease Purchase Agreement with Community First National Bank.
Body
RECOMMENDATION
Staff recommends Council adopt the modified resolution authorizing the execution and delivery of the equipment lease purchase agreement that was approved by Council on March 26, 2015.
EXECUTIVE SUMMARY
On March 26, 2015, Council approved a Master Equipment Lease-Purchase Agreement (Agreement) with Community First National Bank in an amount not to exceed $7,150,000. This Agreement provided financing for the lease-purchase of fire apparatus on a ten-year term, and equipment and light vehicles for a five-year term. This equipment is being purchased to replace existing equipment that is at or near the end of its useful life span.
The March 26th staff report and accompanying required documents included Resolution 2015-49 which contained an incorrect reference to a maximum term for lease financing not to exceed seven (7) years. The correct maximum term for lease financing should reflect ten (10) years. As such, staff is recommending approval of a corrected resolution to correspond with the financing terms of the executed Agreement.
BACKGROUND
The Fire Department fleet contains over 110 fire apparatus, specialty, and light vehicles. During the economic downturn, vehicle replacements were deferred and in FY 2105, the department placed orders for eight new fire engines, two fire trucks and eight light vehicles that had been authorized in prior budget years.
As the City does not currently have a master lease agreement in place, a formal Request for Proposal process was conducted with proposals sent out to over thirty financial institutions and posted on Planet Bids. Community First National Bank was the only respondent, but their proposal was deeme...
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