Reso 2009-150 - Laserfiche WebLink

Home

IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION N0.2009-150 (3173) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LEANDRO AUTHORIZING THE PURCHASE OF ONE FIRE APPARATUS THROUGH A LEASE/PURCHASE FINANCING AGREEMENT WHEREAS, the Alameda County Fire Department (ACFD), in serving as the City's fire department, has a need to replace three of its existing fire apparatus; and WHEREAS, although the City contracts with the ACFD for fire services, all facilities and equipment, including fire engines, are owned and provided by the City; and WHEREAS, the cost of replacing all three engines, including required equipment, is significant, such that the Fire Chief, appreciating the fmancial challenges currently faced by the City, recommends that a minimum of one fire engine be purchased this fiscal year; and WHEREAS, the bid cost of the unit that is recommended for purchase is $465,010, which is inclusive of sales and apre-payment discount of $17,320. In addition, the cost of additional equipment to outfit the new fire engine is approximately $140,000, for a total cost of approximately $605,000 to place the new fire engine in service; and WHEREAS, the City proposes to purchase the fire engine by piggy-backing on the County bid to benefit from the County's bid process and additional discounts that are offered for multiple orders. In addition, staff proposes to finance the purchase of the new fire engine (not the cost of any equipment to outfit the fire engine) through a five year lease/purchase agreement. NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of San Leandro as follows: L The City Council authorizes the City Manager, in consultation with the Director of Finance, and subject to the City Attorney's approval of the agreement as to form, to execute all agreements and documents necessary and proper to purchase one fire engine utilizing a lease/purchase financing with OshKosh Capital. The lease would be for a period of five years, at current interest rates upon agreement execution, as long as the implied interest rate does not exceed 4.5%. If the implied interest rate exceeds 4.5% before execution of the lease/purchase agreement, the City Manager shall not execute the agreement and instead shall bring this matter back to the City Council for further review and consideration. 2. The City Council further authorizes the City Manager to execute all agreements and documents to purchase the necessary equipment to outfit the new fire engine, contingent upon City Council approval of the budget adjustment authorized by City Council Resolution No. 2009-149, and the City Manager's ability to execute alease/purchase financing in accordance with Item No. 1 above.