HomeMy WebLinkAboutAgenda Report - November 20, 1996 (69)AGENDA TITLE: Advertisement for bid for financing for
Two (2) 1750 GPM Class A Custom
Fire Apparatus
MEETING DATE: November 20, 1996
PREPARED BY: Interim Fire Chief
RECOMMENDED ACTION: That the City Council authorize the advertisement of bids
for two (2) 1750 GPM Custom Fire Apparatus,
BACKGROUND INFORMATION: It is requested that the council consider the financing possibilities for two
new fire engines. These will replace two aging front line apparatus. The financing strategy was to maintain the same
level of expenditures so as not to significantly increase the operating budget of the fire department. Delaying the
purchase of one fire engine may result in as much as a 10% increase in cost and continued maintenance on existing
front line apparatus. Bid requests will ask for 5,7 and 10 year terms. A 7 year term should come in at approximately
4.2% interest. This will result in an approximate annual payment of $83,000.00 for the two apparatus. The last three
budget years had a lease purchase expenditure of $109,000.00. This should leave room for the financing of the
Rescue Support Vehicle that was discussed during the council shirtsleeve session on Technical Rescue. The bid
award for the fire engines and financing should be ready for approval at the December 4, 1996 regular council
meeting.
FUNDING: There will be no expenditures through the 1996-97 budget plan. The first payment will be expected
in January of 1998.
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Frank Ortiz, Interim Fre Chief
APPROVED:
H. Dixo Flynn -- Ci Manager