REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Gilbert Garcia, Chief Financial Officer
David A. Segura, Fire Chief
Subject:
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Approve the purchase of a replacement fire engine with South Coast Fire Equipment, Inc. and an ambulance; and, authorize the City Manager to enter into all documents and to complete any financial transactions necessary to lease finance the purchase of the fire engine and ambulance
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Statement of Issue:
City Council approval is requested to approve the purchase of a replacement fire engine with South Coast Fire Equipment, Inc. and an ambulance with Braun Northwest, Inc., and to authorize the City Manager to enter into any and all documents and to complete any financial transactions necessary to finance the purchase of both the fire engine and ambulance in order to enhance public safety and emergency response.
Financial Impact:
Funding for the replacement of both a fire engine and ambulance is included in the Equipment Replacement budget in the FY 2018/19 budget. The Adopted Budget includes $250,000 for the estimated annual debt service payments for a potential lease financing arrangement to acquire both the fire engine and ambulance. This funding level was based on interest rates at the time the FY 2018/19 budget was being developed. Interest rates fluctuate on a daily basis and final lease financing rates and costs will be determined prior to the close of escrow. Staff recommends the lease purchase of the fire engine and ambulance and all related equipment totaling $1,030,000 through a seven-year lease purchase agreement. Based on current interest rates, the estimated annual debt service payment is $167,100.
Section 6 of City Budget Resolution 2018-34 requires that the acquisition of any capital items which exceed $500,000 be approved by the City Council. The value of the proposed replacement fire engine of $773,000 exce...
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