REPORT TO THE CITY COUNCIL
March 26, 2015
FROM: KERRI L. DONIS, Fire Chief
Fire Department
SUBJECT
Title
RESOLUTION - Authorizing the execution and delivery of an 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 in a principal amount not to exceed $7,150,000
Body
RECOMMENDATION
Staff recommends Council authorize the Controller to enter into an Equipment Lease-Purchase Agreement with Community First National Bank and the City of Fresno for the lease purchase of fire apparatus, light vehicles and equipment and adopt the resolution authorizing the execution and delivery of the equipment lease purchase agreement.
EXECUTIVE SUMMARY
The Fire Department was authorized to lease-purchase fire apparatus, equipment and light vehicles to replace existing equipment that is at or near the end of its useful life span and must be replaced. The new equipment will be lease-purchased and will improve the fire fleet, safety for firefighters and the public and should minimize out of service time and reduce repair costs. The cost for replacement of two ladder trucks, eight fully equipped engines, one water tender and eight light vehicles is approximately $7,000,000.
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 30 financial institutions and posted on Planet Bids. Community First National Bank was the only respondent, but their proposal was deemed responsive and responsible. The Finance Department reviewed the proposal response, performed reference checks and determined that the quoted rates are very competitive at around 2 percent for the five-year light vehicle and equipment lease period, and 2.5 percent for the fire trucks and engines which are leased over ten-year period. As such, the depart...
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