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: September 5, 2023
ITEM NO: 8.2
SUBJECT: Approve Lease for the Purchase of Ladder Truck through Pierce Financial Solutions. By entering into this lease Pierce is providing a prepayment discount in the amount of $319,915.06.
RECOMMENDATION
Motion to Approve Lease for the Purchase of Ladder Truck through Pierce Financial Solutions.
By entering into this lease Pierce is providing a prepayment discount in the amount of $319,915.06.
BACKGROUND
Pierce Financial Solutions provides a 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 ladder truck in service today is over its 15-year lifespan and has incurred a tremendous maintenance budget. By entering into this agreement, we will drastically reduce maintenance costs because this apparatus will be replaced on a 10-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
The FY 2023-24 impact will be $0 with the first least payment due August 2024 in the amount of $123,281.33. Full contract price is $1,890,817.90.