Capital Equipment
Purchase and
Financing
May 2, 2023
Lease Financing
• Several large capital equipment purchases are included in the City’s capital equipment replacement program which are past their recommended useful life • Fire Engines (2), Aerial Quint Truck (1) , Ambulances (3), and SCBA Units (112) • Replacement vehicles (14) and Arrow Board Trailers (8) • Total cost: $7,742,143
• Due to supply-chain issues, the delivery times for these items has lengthened substantially, in some instances by several years
• Current interest rates are competitive; t herefore, staff is recommending financing these purchases through a seven-year loan at a interest rate not to exceed 3.837% • Level annual debt service payments of $1,282,157
• Section 6 of City Budget Resolution 2022-28 require s the acquisition of any capital items with exceed $500,000 by approved by City Council
3M Scott Self-Contained Breathing Apparatus
(SCBA) Replacement Units
• The current SCBA units that are used by our fi refighters are 12 years old and are currently out of warranty.
• SCBA units allow firefighters to make entry to smoky environments and hazardous materials incidents.
• The proposed 3M Scott replacement units contain
safety mechanisms that are compliant with the
most up to date regulations from the National Fire
Protection Association (NFPA) and industry standards
• AllStar is the only dealer in the area authorized to sell these units in the Orange County area.
• Quote for 112 replacement units is $1,088,199.
Triple Combination Pumper Engines (2) and
100-foot Aerial Quint Truck
• The current reserve truck was manufactured in 2002 and has reached its 20 year operational life span.
• Two of our current engines were manufac tured in 2005 and are currently in need of replacement as well.
• Due to industry slowdowns and supply chain issues,
the current wait time for an engine is at least 2 years, and the wait time for a truck company is 3-4 years
once a purchase agreement is issued.
• 2 Engines $2,425,246
1 Truck $2,151,085
Total Proposal $4,576,331
Recommended Actions
• The Authorize the City Manager or designee to purchase 112 3M Scott Self-Contained Breathing Apparatus (SCBA) Replacement Units in the amount of $1,088,199 through a sole source procurement from AllStar Fire Equipment;
• Approve the purchase of two (2) Triple Comb ination Pumper Engines in the amount of $1,212,623 each and one (1) 100-foot Aerial Quint Truck in the amount of $2,151,085 for a total of $4,576,331 from Rosenbauer America; and,
• Authorize the City Manager or designee to enter into all documents necessary to acquire and finance the purchase of these items and other vehicles and capital equipment for a total not to exceed $7,742,143 at an interest rate not to exceed 3.837%.
Questions?