HomeMy WebLinkAboutResolutions - No. 2015-149RESOLUTION NO. 2015-149
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO PURCHASE TWO
NEW HI-TECH/SPARTAN GLADIATOR FIRE ENGINES;
APPROVING DEBT FINANCING WITH FARMERS AND
MERCHANTS BANK; AUTHORIZING THE CITY MANAGER
AND DEPUTY CITY MANAGER TO EXECUTE ALL
NECESSARY FINANCING DOCUMENTS; AND FURTHER
APPROPRIATING FUNDS
WHEREAS, the Fire Department currently has six Type -1 Urban Structure Fire
Engines and two Aerial Fire Trucks utilized at four fire stations, of which five engines are
used as front line vehicles and one engine is used as a reserve; and
WHEREAS, pursuant to Lodi Municipal Code Section 3.20.045, State and Local
Agency Contracts, the bidding process may be waived when it is advantageous for the
City, with appropriate approval by the City Manager and City Council, to use contracts
that have been awarded by other California public agencies, provided that their award
was in compliance with their formally -adopted bidding or negotiation procedures; and
WHEREAS, staff recommends purchasing two engines from Hi -Tech Emergency
Vehicle Services, Inc., of Oakdale, utilizing the San Jose Fire Department Type -1 Tag -
On Proposal (San Jose RFB 12-13-44) (Attachment A on file in the City Clerk's Office);
and
WHEREAS, staff further recommends purchasing one engine outright and
purchasing the second engine utilizing a lease financing mechanism; and
WHEREAS, to proceed with the outright purchase/lease financing
recommendation, an additional $32,000 appropriation is necessary to fully fund the
purchase cost of both engines; and
WHEREAS, in order to pursue lower-cost financing and to ensure compliance
with the City's Debt Management Policy, an RFP for debt financing of one engine was
issued on July 29, 2015, with a response deadline of August 5, 2015. Nine responses
were received. A review of the proposals in accordance with the City's Debt
Management Policy resulted in the selection and recommendation of a five-year debt
financing with Farmers and Merchants Bank, at an interest rate of 1.93 percent. Total
interest cost over the life of the loan is $30,820; and
WHEREAS, the proposed term minimizes total interest costs while providing a
reasonable period to repay the debt without an adverse impact on City cash reserves.
The estimated annual payment of approximately $99,172 will be paid from Fire
Department appropriations; and
WHEREAS, the purchase price for each engine is $465,664.68, with a total
purchase price of $931,329.36 (Attachment B); and
WHEREAS, purchasing new engines will result in lower maintenance costs as
compared to the maintenance costs for the existing engines.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize:
1. The City Manager to purchase two new Hi-Tech/Spartan Gladiator Fire
Engines from H -Tech Emergency Vehicle Service, Inc., of Oakdale,
California, utilizing the San Jose Fire Department Type -1 Tag -On
Proposal (San Jose RFB 12-13-44); and
2. The outright purchase of one engine in the amount of $465,664.68 and
Debt Financing with Farmers and Merchants Bank in the amount of
$468,000 for the purchase of the second engine; and
3. The City Manager and Deputy City Manager to execute all necessary
financing documents; and
4. That additional funds in the amount of $32,000 be appropriated from the
Vehicle Replacement fund (40699100.77040) for this purchase.
Dated: September 2, 2015
I hereby certify that Resolution No. 2015-149 was passed and adopted by the
Lodi City Council in a regular meeting held September 2, 2015, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi,
and Mayor Johnson
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
1 r�,
J NIFER . FERRAIOLO
City Clerk
2015-149
ATTACHMENT B
SPARTAN' - - -..
Jose F.D.
Jose RFB 12-1344
For
Lodi Fire Daent
Lodi, California
July15, 2015
DLO HI- CH/SPA& A -N gLARWOR
ld" RMED. RUQ '. !90H1<',1$A8 _g= TYPE T PUMPER
1. Apparatus Cost, Per Lodi Fire Department Specifications ............... $862,342.00
2. Sales Tax @ 8.0% ...................................... :........ ...............:........................ S +$.W.
3. Grand Total ............................................... ....,............... ...,.,„.................... $ 931,329.36
Phis any additional Federal, State, or Local fee, tax, or mandated safety and
emission equipment applicable at time of delivery.
Delivery = Approximately 365 Days After Receipt Of Order Documentation
Brian Ruthman
r
ece d By — e
7- K' /.
Date