HomeMy WebLinkAboutAgenda Report - September 17, 2003 E-11AGENDA TITLE: Adopt resolution and authorize the City Manager to eater into a lease purchase
agreement for two (2) Pierce Quantum fire apparatus and equipment. Annual lease cost approximately
$152,000 per year total purchase price $91.3,108
MEETING DATE,. September 17, 2003
PREPARED Y: Michael E. Pretz, Fire Chief
RECOMMENDED ACTION, That Council adopts a resolution and authorizes the City Manager to enter
into a lease purchase for two () Fierce Quantum fire apparatus and equipment. Approximate annual lease
cost $152,000, purchase price approximately $913,10$.
BACKGROUND INFORMATION: In June 2003 Council approved the purchase of two (2) fire apparatus
during FY 2003-2005. Fire Department staff has researched various fire apparatus specifications.to replace
aging reserve apparatus and re-establishing an engine company at Eire Station #1 (downtown). Current City
vehicle guidelines call for fire apparatus to be used 15 years for frontline service an. d 5 years of reserve
service. The department has one reserve fire apparatus that is 27 years old, well past the City's vehicle
replacement guidelines. The purchase of two fire apparatus will allow the fire department to re -e tablish the
engin; company at Fire Station 41 and place older fire apparatus in reserve. Moreover, with the anticipated
lag time between apparatus purchase and delivery, Fire Department staff believes purchasing both fire
apparatus at once will save additional staff time as well as savings enumerated below.
The Fire Department is proposing to purchase two fire apparatus rather than one in Y2003-04 and one
during FY2004-05. Fire Department research indicates that by using a lease purchasing program for both
apparatus at once, the City will realize substantial savings. The Fire Department will be able to tag on to the
competitive bid process utilized by the City of Bakersfield, Recently the City of Stockton used the
Bakersfield bid to purchase two Quantum Pumpers, Staff has enclosed additional information on pricing
and will seek, tht, best financial package available.
The cost savings and advantages of lease/purchasing bath apparatus include:
Improves Fire Department readiness and reserve status
Removes cost increases due to industry regulation changes
Deduces inspection trips frorn 4 to 2 saving approximately $5,662
Reduces purchase price by $1.3,€164 (multi -unit purchase discount)
Removes annual price increase of 3% approximately $13,950
Additional price reduction with 100% prepayment financing approximately $13,978
Improves department equipment standardization
. Rixan Flynn -- ity Manager
FUNDING: By purchasing two engines simultaneously, The City will realize several cost reductions,
During budget discussions council was apprised that the Fire Department would seek a. lease/purchase
agreement in order to lower annual equipment casts. Utilizing the lease option, the first payment would not
be € ue until one year after the contract is finalized. Council has already approved funding for apparatus
purchases in the 2003.2005 budgets.
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Michael E. pretz ' il
Fire Chief
t � .MIS
Vicky . cAthie
Finance Director
H, Dixon Flynn -- Citi' Manager
A RESC.LUTIQN OF THE LOO CITY COUNCIL AUTHORIZING THE CITY
MANAGER TO EXECUTE A LEASE PURCHASE AGREEMENT' FOR TWO. (2)
PIERCE QUANTUM EIRE APPARATUS AND NECESSARY EQUIPMENT
WHEREAS, Lodi Municipal Code Section 3.20.470 authorizes dispensing with Fids for purchases of
supplies, serves, or equipment whera it is in the best interest of the City to do so; and
WHEREAS, in June 2003 the City Council approved the purchase of two (2) fire apparatus during
fiscal year 2003.2005; and
WHEREAS, Fire Department staff has researched various fire apparatus specifications to replace an
aging reserve apparatus that is 27 years Bald, and reestablishing an engine company at Fire Station #t
(downtown); and
WHEREAS, current City vehicle guidelines call for fire apparatus to be used 15 years for frontline
service and 5 years for reserve service; and
WHEREAS, staff recomMends ;purchasing the two (2) fire apparatus at the same time in order to re-
establish the engine company at Fire Station.#1 And place an older fire apparatus in reserve; and
WHEREAS, because of. the anticipated lag time between apparatus purchase and delivery, staff
believes purchasing bath fire apparatus at the same time will save Additional staff time and enable tie City to
realize substantial savings utilizing the City of Bakersfield competitive bid process, and
WHEREAS; .staff recommends that the City Manager be authorized to execute a Lease.Furchase
Agreement for two (2) Pierce Quantum Fire Apparatus and Equipment as necessary through Golden State
Fire Apparatus of Modesto, California, Frith an annual lease cost of approximately $152,000.00 per year for a
total purchase price of $913,1108.00,
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby authorize
the City Manager to execute a Lease Purchase Agreement for two (2) Fierce Quantum Fire Apparatus and
necessary equipment through Golden State Fire Apparatus of Modesto, California, with an annual lease cast
of approximately $1525000.00 per year for a total purchase price of $913,105:00.
Gated: September 17, 2003
I hereby certify that Resolution No. 2003-171 was passed and adapted by the City Council of the
City of Lodi in a regular meeting held September 17, 2003 by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Howard, Land,
:and Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN, COUNCIL MEMBER — None
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SUSAN J. SLACKSTON
City Clerk
2003-171