HomeMy WebLinkAboutAgenda Report - May 16, 1990 (84)C 0 6 a C I L
TO: THE CITY COUNCIL
FROM THE CITY MANAGER'S OFFICE
SUBJECT: PURCHASE CF AERIAL FIRE TRUCK
PREPARED BY:
COMMUNICATION
Assistant City Manager
COUNCIL MEETING DATE
MAY 16, 1990
RECOMMENDED ACTION: Council rescind its action of Tuesday, May 8, 1990 to
purchase a fire truck ftm Pierce Equipment Co. and
to adopt Resolution. 90-70 authorizing the purchase of
one Emergency -One 75' aerial ladder truck from
Emergency -One, Inc. and Federal Signal Leasing
Corporation.
BACKGROUND INFORMATION: 1 was notified at 10:15 am on May 8, 1990 that t h e
Pierce 75' aerial ladder truck authorized by the City
Council, was sold on Monday evening to Clinton
Township, Michigan. \* knew that the vehicle would
be sold to the first entity confirming the sale. At
4:00 p.m. Monday the vehicle had not been sold.
At Tuesday morning's "Shirtsleeve" meeting Chief Hughes notified the Council
that he received a proposal from Federal Signal Corporation to sell to the City
an Emergency -One 75' aerial ladder truck. This vehicle is comparable to and
w i I I meet our needs as well as the Pierce.
There is a fiscal advantage to the purchase of the Emergency -One truck. Even
though the initial price is higher, the offered interest rate is lower, thus
lowering the overall cost. Secondly, the first payment is due upon receiving
the truck, not upon placing the order. Therefore, no appropriation of funds is
required for fiscal year 1989-90. The funds for the first payment are included
in the 1990-91 budget presently being prepared.
Council is respec fully requested to approve the lease purchase of an
Emergency -One 75' aerial ladder truck at a purchase price of $338,908.81
including tax from Federal Signal Leasing Corporation.
Respectfully submitted,
Jerry L . Glenn
Assistant City Manager
JLG:br
A ttachments
COUNC812
I
Leasing Division
May 81 1990
Chief Larry Hughes
City of Lodi, CA
Re: Lease/Purchase Financing of a Emergency One 75' Mid- Fngin�3 Aerial
Dear Chief Hughes:
Emergency One, Inc. and Federal Signal Leasing would be pleased to
provide the City of Lodi with financing for its purchase of an E -One 75'
Aerial Ladder as follows:
Purchase Price;
Downpayment:
Net Financed:
Term:
Rate:
Annual Payment:
$338,908.81
{67.781.811
$271,127.00
5 years
7.49%
$66,995,23
The downpayment is due upon delivery and subsequent pa"i,T due
annually thereafter (on the anniversary of delivery and =: C7
n the event you are inexperienced with t h i s form of f inancing, I would
like to point out a few items which may be of interest to you:
v The interest rate charged is simple interest at a fixed
rate for the term of the lease. There are no other
financing related costs or hidden fees.
0 The lease agreement. includes a non -appropriation clause,
Basically stated, if funds are not appropriated in the City
budget in any given fiscal year, the City has no obligation
to make further payments and the vehicle is returned to
Emergency One. Because of the inclusion of this clause,
lease/purchase financing is not considered to be debt and,
therefore, no voter approval is required through a bond
issuance.
o Article TX of the Agreement addresses the issue of prepay-
ment. The lease is prepayable, without penalty, on any
annual anniversary when 90 day's notice is given. The
payoff amount would be the then -outstanding principal
balance plus accrued interest.
(contd. )
RFGENCY TOWERS. 1415 W 22nd STREET • OAK BROOK ILL NGIS 60521 • PHONE 008) 954.200(i • FAX (708, 954.2030
I' --
City of Lodi, CA
way 7, 1990
Page Two
N
Emergency One, Inc. and Federal Signal Leasing offer their customers
taylor-made programs to suit their needs today, allowing them financing
flexibility for the future at very competitive rates.
We appreciate your interest in our products and would be pleased to
offer additional proposals or answer any questions regarding our
documentation. We look forward to working with you sooni
Sincerely,
Joanne M. Uelegan
Leasing Administrator
r .. _R A 1 fat;rL - ` -ilk P. _
Lessee: CITY OF 101M. CH
es
Humber and frequency M paqmnt%:
'int •irrkAr*1'.
five (f)) ;�nnijal p apment- ,
4 Interest computed at- 7.49% per )nnum-
Lease No-
Rapffient dr4ount affpl ied to
Interest Principal
G7, T8'1.z31
V0, 307.X11 4 f., E;87. 'a
1 (i , 8.1.0. 4 9 S0.184.74
451. (if; 53, 9,13. S7
Iota Is $63,849.15 S271,127.00
* not pa id vlwn duce %holl be subJect, I-0 past due
the rate of 18% por i.he h rate pprm itted b
whichever is less.
Intmmst acaves dailp, at the rawiiidicated dbove, On the
out,.:,totid itiq 1w bc wal bWnov (I ted I" price„ column).
Emergency Onp, Titc..
es
"Lsor"
T it I" - - .. .. .. .. - ..
CITY or tunI, CN
"lessee"
U, S, : . _ .- .. _ _ _ _ ". _. _. -, __ __., - - __
i o Iv? . . .. .... _ - .. - — ,, _ - ___ -.-
Fqo,r-1 F*DERAL SIGNAL C)5,,0890 16:48 F. 4 TOTAL F 4
Payment
3
S,
Total soles price,
Islip -in 4
Down payment,
rp 1, 181 al
Payment 1
66 995. 23
pavopent ;,1
995.23
Payment; 4
9'3 -3
Pa PM en t 4
6 G, 99 2"
payment 5
Lease No-
Rapffient dr4ount affpl ied to
Interest Principal
G7, T8'1.z31
V0, 307.X11 4 f., E;87. 'a
1 (i , 8.1.0. 4 9 S0.184.74
451. (if; 53, 9,13. S7
Iota Is $63,849.15 S271,127.00
* not pa id vlwn duce %holl be subJect, I-0 past due
the rate of 18% por i.he h rate pprm itted b
whichever is less.
Intmmst acaves dailp, at the rawiiidicated dbove, On the
out,.:,totid itiq 1w bc wal bWnov (I ted I" price„ column).
Emergency Onp, Titc..
es
"Lsor"
T it I" - - .. .. .. .. - ..
CITY or tunI, CN
"lessee"
U, S, : . _ .- .. _ _ _ _ ". _. _. -, __ __., - - __
i o Iv? . . .. .... _ - .. - — ,, _ - ___ -.-
Fqo,r-1 F*DERAL SIGNAL C)5,,0890 16:48 F. 4 TOTAL F 4
RESOLUTION NO. 90-70
A RESOLUTION OF THE LODI CITY GOLWIL
RESCINDING ITS PRIOR AUIHORIZATION TO R XHASE A FIRE TRUCK FROM PIERCE
EQUIPMENT CO., AND AUIHORZNG RX01ASE OF ONE EMERGENCY -ONE 75'
AERIAL LADDER TRUCK FROM EMERGENCY -ONE, INC. AND FEDERAL S00L LFASNG
CORPORATION.
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RESOLUm, that the Lodi City Council hereby rescinds its
authorization of May 8, 1990 to purchase a fire truck from Pierce
Equipment Co.; and
FURTHER RESOLVED, that the Council hereby authorizes the purchase
of one Emergency -One 75' aerial 1adder truck io'n Emergency -One, Inc.
and Federal Signal Leasing Corporation.
Dated: May 16, 1990
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I hereby certify that Resolution No. 90-70 was passed and
adopted by the Lodi City Council in a regular meeting held May 16,
1990 by the following vote:
Ayes : Council Members - Hinchman, Olson, Pinkerton, Reid and
Snider (Mayor)
Noes : Council Members - None
Absent: Council Members - None
Aw;t
+?mc he
City Clerk
90-70
RES9070/TXTA.02J