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Ladder Truck Purchase <br />Financing <br />Page 2 of 2 <br />September 13, 2007 <br />Several options are available for purchase such as 100% prepayment, 50% down, lease purchase, <br />etc. Recently, the City has built up it capital replacement reserves and recommends prepayment <br />of the new ladder vehicle. Pre-payment of the fire apparatus allows the City to receive a Pierce <br />discount of $46,515 from the base price of $806,252. The prepayment discount is advantageous <br />since the return on investment from investing the base price into the City's investment portfolio <br />is projected to be ]esser than the discount. <br />The additional cost of equipping the new fire truck is estimated at $186,063 and will be ordered <br />and fitted following arrival of the apparatus. <br />Staff recommends Council approve purchasing this fire truck without competitive bidding, and <br />doing so in coordination with the Alameda County Fire Department. <br />Attachments <br />4 Quotes from Pierce/Golden State Fire Apparatus <br />