REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Dahle Bulosan, Interim Chief Financial Officer
David A. Segura, Interim Fire Chief
Subject:
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Approve the purchase of a replacement fire engine with South Coast Fire Equipment, Inc. and an ambulance with Braun Northwest, Inc.; and, authorize the City Manager to execute all documents necessary to lease finance the purchase of the fire engine and ambulance
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Statement of Issue:
City Council approval is requested for 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 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 2019/20 budget. Specifically, 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 2019/20 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 $1,172,579 through a seven-year lease purchase agreement. Based on current estimated interest rates of 2.134 percent, the annual debt service payment would be $182,112. Please note the interest rate may be subject to change based on market conditions at the time of close of escrow.
Recommended Action:
recommendation
Approve the purchase of the replacement fire engine with South Coast Fire Equipment, ...
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