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CITY OF SAN LEANDRO MEMORANDUM DATE: October 21, 2011 TO: Finance Committee FROM: Lianne Marshall, Interim City Manager BY: Jim O'Leary, Interim Finance Director SUBJECT: Discussion Regarding Acquisition of Two Fire Pumper Trucks and Financing through Lease Purchase Agreement with Oshkosh Capital RECOMMENDATION Staff recommends that the Finance Committee review and approve for City Council approval the acquisition of two replacement fire trucks and authorize the City Manager to execute a lease purchase agreement and other documents with Oshkosh Capital necessary to finance the acquisition. BACKGROUND The City's contract with the Alameda County Fire Department for fire services includes provisions for City ownership of all fire facilities and equipment, including fire engines. Currently, the apparatus in City service includes five engines and two trucks. The 2011 -12 Fire Service Budget approved by the City Council included the replacement of two engines based at Station 11 and Station 10. The two front line fire engines that are candidates for replacement based on mileage and hours of service were activated by the City in 1989. Alameda County Fire recently completed a competitive bid for multiple fire engines and other local agencies can utilize the bid to acquire equipment. The specifications for the equipment were developed by Alameda County Fire and meet all safety and environmental requirements of the City. The engines that would be acquired by piggy backing on the Alameda County Fire's bid and contract with Golden State Fire Apparatus Inc. meets the City's equipment requirements and are consistent with equipment currently in use. For these reasons, staff recommends that the City acquire two new fire engines utilizing Alameda County Fire's bid. DISCUSSION The bid price by Golden State Fire Apparatus for each 2010 Pierce Arrow XT unit is $485,545, inclusive of costs for inspection, delivery, and sales tax. In addition, the City will receive a