City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Jeff Gregory, Fire Chief
MEETING DATE: May 16, 2023
ITEM NO: 5.4
SUBJECT: Approve lease for the purchase of fire engines through Pierce Financial Solutions and authorize the Finance Department to make the necessary budget adjustments for Fiscal Year 2022-23.
RECOMMENDATION
Motion to Approve lease for the purchase of fire engines through Pierce Financial Solutions and authorize the Finance Department to make the necessary budget adjustments for Fiscal Year 2022-23.
BACKGROUND
Pierce Financial Solutions provides tax-exempt municipal leasing program for the purchase of fire apparatus. This program will allow the Patterson Fire Department to enter into an agreement that will sustain the longevity of our apparatus replacement program for years to come. The current apparatus in service today are over their 20-year lifespan and have incurred a tremendous maintenance budget. By entering into this agreement, we will drastically reduce maintenance costs because these apparatus will be replaced on an 8-year lifespan with a buy-back option if needed.
ANALYSIS
The City of Patterson Fire Department holds public safety as its number one priority. By entering into this agreement, the reliability of responding fire apparatus increases dramatically by having the latest technology, warranty, service, and proprietary parts that Pierce Manufacturing offers.
This agreement also produces a high level of morale with personnel and also has recruitment traits for potential firefighters of the City of Patterson.
FISCAL IMPACT
Fiscal Year 2022-23 we will have a savings of $1.6 million to be re-appropriated for Fiscal Year 2023-24 in the amount of $193,488.38 due annually for the term of seven years with an option to purchase or turn in a one-time balloon payment of $406,209.94.