CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
8/14/2023
1 SUBJECT:
Approval of New Pierce Fire Engine Lease Purchase Agreement RECOMMENDED ACTION:
Move to Adopt the Resolution entitled "Resolution of the City Council of the City of Pacifica Authorizing the City Manager to Execute an Agreement with the Community Leasing Partners to Finance a New Front Line Fire Engine" and authorize the City Manager to execute all necessary documents related to this purchase.
STAFF CONTACT:
Sean Kavanaugh, Deputy Fire Chief, Special Services Bureau 650.991.8138
[email protected]
BACKGROUND/DISCUSSION:
The best practice and generally accepted standard for fire apparatus replacement is 10 years frontline performance and 5 years in back up or reserve status.
There is a need to replace a front-line fire engine and the lease financing option provides for a prudent approach. A cash purchase would require 50% up front and the remainder due upon delivery, requiring a large sum of cash expended upfront at time of ordering a fire apparatus.
The lease option preserves cash on hand and does not require any upfront expenditures or payments for 2 years.
The cost of the new fire engine is $1,091,763 with an estimated build time and delivery approximately 3 to 4 years out from time of order, thus the need for procurement now. The new frontline fire engine will replace a current 2010 front line fire engine. The current front line 2010 fire engine will go into reserve status and a 1999 reserve engine will be decommissioned and removed from the fleet.
ALTERNATIVE ACTION:
None
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Supports city council goal of maintaining a safe community.
FISCAL IMPACT:
The financing options were evaluated in collaboration with the Finance Department, and a Pacifica City Council 2
August 14, 2023
seven-year financing program was selected. The initial payment will commence July 2025 with a first year amount of $125,000 and each year there after the amount of $212,104.22 based upon a 4.99% interest rate over a total of 7 years with no pre-payment penalty.
ORIGINATED BY:
North County Fire Authority
ATTACHMENT LIST:
Attachment A – Financing Proposal from Community Leasing Partners (PDF) Pacifica City Council 3
August 14, 2023
RESOLUTION NO. _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE
COMMUNITY LEASING PARTNERS TO FINANCE A NEW FRONT LINE FIRE ENGINE WHEREAS, one new fire engine is needed to replace aging vehicles in the fleet and current estimated time of order to delivery of new fire engines is 3 years to 4 years, which necessitates acquisition at this time; and
WHEREAS, the industry standard and lifespan for fire apparatus is 10 years front line service and 5-10 years reserve service the City has a front-line fire engine and a reserve fire engine that exceed the industry standard and necessitate replacement; and WHEREAS, benefits of having an up-to-date fleet results in less downtime, reduction in maintenance costs, eliminates inability to procure replacement parts, provides for operational readines and performance; and
WHEREAS, the City Council approved a replacement of the front-line Fire Engine through lease purchase financing as part of the FY 2023-24 Adopted Budget.
NOW, THEREFORE, be it resolved by the City Council of the City of Pacifica, California, to authorize the City Manager to execute the lease financing agreement with Community Leasing Partners to purchase a front-line fire engine in need of replacement and execute all necessary documents related to this purchase.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on August 14, 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Pacifica City Council 4
August 14, 2023
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney