CITY OF ALAMEDA RESOLUTION NO. ____
AUTHORIZING THE CITY MA NAGER TO NEGOTIATE AND EXECUT E (1) A PURCHASE AGREEMENT WITH GOLDEN STA TE FIRE
APPARATUS, INC. THRO UGH THE HGACBUY PURC HASING
COOPERATIVE AND (2) A LEASE-PURCHASE WITH JP MORGAN
CHASE BANK, NA FOR T HE ACQUISITION OF ONE PIERCE FIRE
TRUCK IN AN AMOUNT NOT TO EXCEED $1,865,550.53.
WHEREAS, the City of A lameda, a municipal corporation’s (“City ”) reserve fire ladder truck has exceeded its maximum useful life as establ ished by the criteria in the City's Vehicle Replacement Policy because it is over 25 years old and has 77,000 miles, and is thus overdue for replacement; and
WHEREAS, the City’s purchase of a new fire ladder truck will allow the Alameda Fire D epartment's (“Department”) to remove the current reserve truck from service, replace it with the 2012 era fire truck currently assigned to Station 1 as a frontline response apparatus , and then utilize the newly acquired fire apparatus in a frontline capacity; and
WHEREAS, the proposed acquisition and subsequent rotation of these vehicles is necessary and prudent because it will allow the Department’s reserve apparatus to meet modern industry response and safety standards and ensure that the Department has a reliable spare apparatus to be utilized during maintenance and repairs of the department's two frontline aerial trucks; and
WHEREAS, the Department recommends purchasing the new fire truck through the Golden S tate Fire Apparatus, Inc . (GFAC)/Pierce contract wit h the Houston- Galveston Area Council (HGAC) ’s cooperative procurement program known as HGACBuy; and
WHEREAS, HGACBuy is a nationwide, government -to-government procurement service that has procured products and services for over 30 years , with all available vendors having been awarded contracts through a public competitive procurement process compliant with state statutes; and
WHEREAS, the selection of a Pierce Manufacturing (“Pierce”) fire engine through GFAC and HGACBuy will allow for the continue d standardization of the vehicles being purchased for the Department and make it easier for fleet maintenance to maintain these vehicles in the future; and
WHEREAS, GFAC)/Pierce has provided the City with a quote for the acquisition of the new fire apparat us of $1 ,865,550.53 with financing obtained through lease- purchase agreement with JPMorgan Chase Bank, N.A. in an amount not to exceed $1,865,550.53. (Principal Amount); and
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WHEREAS, pursuant to applicable law, the governing body of the City ("Governing Body") is authorized to acquire, dispose of and encumber real and personal property, including, without limitation, rights and interests in property, leases and easements necessary to the functions or operations of the Lessee; and WHEREAS, the Governing Body hereby finds and determines that the execution of one or more lease-purchase agreements ("Equipment Leases") in the principal amount not exceeding the amount stated above ("Principal Amount") for the purpose of acquiring the property generally described above "Property") and to be described more specifically in the Equipment Leases is appropriate and necessary to the functions and operations of the City as Lessee; and
WHEREAS, JPMorgan Chase Bank, N.A. ("Lessor") is expected to act as the lessor under the Equipment Leases; and
WHEREAS, the City as Lessee may pay certain capital expenditures in connection with the Property prior t o its receipt of proceeds of the Equipment Leases ("Lease Purchase Proceeds") for such expenditures and such expenditures are not e xpected to exceed the Principal Amount; and
WHEREAS, the U.S. Treasury Department regulations do not allow the proceeds of a tax -exempt borrowing to be spent on working capital and the Lessee shall hereby declare its official intent to be reimbursed for any capital expenditures for Property from the Lease Purchase Proceeds; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Alameda that:
SECTION 1. The foregoing recitals are true and correct, and, together with information provided by City staff and the public, if any, form the basis for the approvals, findings, resolutions, and determinations set forth below.
SECTION 2. The City Council approves, authorizes, and directs the City Manager to negotiate and execute all documents necessary to finalize (1)) an Agreement with Golden State Fire apparatus, Inc. through the HGACBuy purchasing cooperative and (2) a financing agreement with JPMorgan Chase Bank, NA for the acquisition of one P ierce Fire truck in an amount not to exceed $1,865,550.53.
SECTION 3. The City Manager (“Authorized Representative”) acting on behalf of the City as Lessee is hereby authorized to negotiate, enter into, execute, and deliver one or more Equipment Leases which shall be available for public inspection at the office of the City as Lessee. The Authorized Representative acting on behalf of the Lessee is hereby authorized to negotiate, enter into, execute, and deliver such other documents relating to the Equipment Lease (including, but not limited to, escrow agreements) as the Authorized Representative deems necessary and appropriate. All other related contracts and agreements necessary and incidental to the Equipment Leases are hereby authorized.
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SECTION 4. By a written instr ument signed by any Authorized Representative, said Authorized Representative may designate specifically identified officers or employees of the City as Lessee to execute and deliver agreement s and documents relating to the Equipment Leases on behalf of the City as Lessee.
SECTION 5. The aggregate original principal amount of the Equipment Leases shall not exceed the Principal Amount and shall bear interest as set forth in the Equipment Leases and the Equipment Leases shall contain such options to purchase by the City as Lessee as set forth therein.
SECTION 6. The City Lessee's obligations under the Equipment Leases shall be subject to annual appropriation or renewal by the City’s Governing Body as set forth in each Equipment Lease and the Lessee’s obligations under the Equipment Leases shall not constitute a general obligations of the Lessee or indebtedness under the Constitution or laws of the State of California.
SECTION 7. The Governing Body of the City as Lessee anticipates that the City as Lessee may pay certain capital expenditures in connection with the Property prior to the receipt of the Lease Purchase Proceeds for the Property. The City Council as Governing Body of the City as Lessee hereby declares the Lessee’s official intent to use the Lease Purchase Proceeds to reimburse itself for Property expenditures. This section of the Resolution is adopted by the Governing Body of Lessee for the purpose of establishing compliance with the requirements of Section 1.150- 2 of Treasury Regulations. This section of the Resolution does not bind the Lessee to make any expenditure, incur any indebtedness, or proceed with the purchase of the Property.
SECTION 6. This Resolution shall take effect immediately upon its adoption and approval.
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I, the unders igned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 19th day of April 2022, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of said City this 20th day of April 2022.
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
Yibin Shen, City Attorney
City of Alameda