Regular Meeting
05/20/25 06:00 PM
Finance
Sydnie Harris
Resolution
Doc ID: 5994
COUNCIL RESOLUTION
AGENDA MATTER:
A RESOLUTION AUTHORIZING THE EXECUTION OF A MASTER LEASE-PURCHASE AGREEMENT
AND RELATED DOCUMENTS WITH HOLMAN CAPITAL FOR THE LEASE/PURCHASE OF A ENFORCER PIERCE ULTIMATE CONFIGURATION PUMPER FIRE ENGINE.
EXECUTIVE SUMMARY:
The City analyzed the impact of acquisition vs. lease in the lease-purchase of a Pierce Ultimate Configuration (PUC) Pumper Fire Engine. It was determined by this analysis that, with the approval of the master-lease purchase agreement with Holman Capital, the City can acquire a new Fire Engine and may have the potential to purchase additional Fire Apparatus, if approved with the financing options presented. The Council approval of BFPD Resolution 74-2025 will allow the City to enter into a master lease-purchase agreement with Holman Capital to facilitate acquisition of the fire engine and brush truck.
DISCUSSION:
To facilitate the acquisition of a Pierce Fire Engine, (2) proposals for Semi Annual Lease Financing were requested from the following entities and their total interest rate of their financing estimates were as follows:
1) Holman Capital - 6.24% plus $5,000 Documentation Fee 2) PNC Equipment Finance - 6.54%
Staff is requesting that the City Council authorize the project financing to be approved on a not to exceed basis, as the total costs of the turnkey fire engine (including all necessary after-market equipment and supplies), are estimates based upon the knowledge that there may be necessary additions/deletions from the estimates. Therefore, the amount not to exceed would allow staff the ability to move forward with negotiating the equipment purchases while allowing some flexibility should the estimates fluctuate due to unforeseen reasons. The breakdown for the fire apparatus and equipment are detailed below:
Option A) A minimum not to Exceed Fire Engine $ 1,119,983 total Project Cost $ 1,975,901 Based on the equipment estimates,
Option B) $ 3,819,983.96 to include a second apparatus, or Option C) $4,400,000 to include a second apparatus and a reimbursement of funds for the purchase of the type #3 Brush Truck.
Holman Capital has provided the best option for total cost financing for the Pierce Fire Engine. Interest for all options is as follows,
Option A) $ 855,917.24,
Option B) $2,919,319.24, and
Option C) $3,362,580.80
All options are based on a 20 year term. There is no penalty for prepayment of the options presented.
Regular Meeting
05/20/25 06:00 PM
Finance
Sydnie Harris
Resolution
Doc ID: 5994
COUNCIL RESOLUTION
FISCAL IMPACT:
As per the description in Discussion Section of this staff report. The financing shall be dependent upon final approval by council with options at a minimum of a principal amount of $1,119,983 and interest of $855,917.24 up to a maximum of a principal amount of $4,400,000 and interest of $3,36,580.80 over the 20-year term to be paid from Measure Q - Fire Department (102.225.225.08.XXX) RECOMMENDED ACTION:
Staff recommends the City Council:
1. Approve BFPD Resolution 74-2025 authorizing the Barstow City Council to execute the Master LeasePurchase Agreement and related documents with Holman Capital to finance the acquisition of a Pierce Fire Engine, with a cost not to exceed a total of $1,119,983.96 collectively, as defined in the Discussion Section of this staff report.
2. Discuss the available financing for additional purchasing ability in an amount not to exceed $4,400,000.00.