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: October 3, 2023
ITEM NO: 6.10
SUBJECT: Approve Resolution No. 2023-48 Approving the Lease Agreement with PNC Bank for the Purchase of Fire Trucks.
RECOMMENDATION
Motion to Approve Resolution No. 2023-48 Approving the Lease Agreement with PNC Bank for the purchase of Fire Trucks.
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 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
FY 2023-24 we will have a savings of $319,915.06. The first two years' payment interest only of $123,281.33 will be due annually. After delivery, the annual payment of $238,235.13 will be due annually for the remainder of the 10-year term with an option to purchase or turn in a one-time balloon payment of $360,166,17.