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Agenda Item: 16(d) |
Prepared By: Chris Byrne, Fire-Rescue Chief |
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Business: Resolution |
Department: Fire-Rescue Department |
Title
Resolution - Authorize the City Manager to Execute a Contract with Ten-8 Fire & Safety LLC. for the Acquisition of a Pierce Enforcer 100’ Ascendant Tower and Authorize the Execution of a Capital Lease Agreement with Truist Equipment Finance Corp in an Amount not to Exceed $2,520,474.00 - Chris Byrne, Fire-Rescue Chief, Fire Rescue Department
Body
BACKGROUND:
The Fire Rescue Department requests authorization to replace the Department's 2018 Ladder Truck as part of the City's capital replacement program.
The existing 2018 Ladder Truck is currently financed through a 10-year turn-in lease with annual debt service payments of $101,585 and a balloon payment of $247,157 due in May 2028. Approval of this replacement will allow the new apparatus to be delivered and the existing truck to be turned in prior to the balloon payment becoming due.
Replacement is recommended due to significant reliability issues, increasing maintenance costs, and excessive downtime. The 2018 Ladder Truck was out of service for 160 days in 2025 (44% of the year) and an additional 56 days through 2026.
The replacement was presented to the City Council during the FY27 Capital Budget Workshop. Approval of this resolution does not require FY27 funding, as lease payments will not begin until the apparatus is delivered in May of FY28.
Procurement Strategy
Staff recommends utilizing NPPGov Contract No. PS26410 to procure the new Pierce Enforcer apparatus. Ten-8 Fire & Safety LLC, the authorized Pierce dealer, has submitted a proposal in the amount of $2,520,474.00. The proposal includes $105,000 for firefighting equipment and installation. Utilizing this competitively bid and awarded cooperative contract provides favorable pricing while maintaining an estimated delivery timeframe of 25 to 27 months.
Funding Plan
Staff recommends executing a 10-year tax-exempt capital lease agreement with Truist Equipment Finance Corp. in the amount of $2,520,474.00. The estimated annual lease payment is $320,948.00 based on an estimated interest rate of 4.65%.
FUNDING SOURCE / FISCAL IMPACT: The acquisition will be financed through a 10-year capital lease agreement in an amount not to exceed $2,520,474.00. Debt service payments will commence upon delivery of the apparatus in FY28.
RECOMMENDATION: Approve Resolution 26-36, authorizing the City Manager to execute a contract with Ten-8 Fire & Safety LLC for the acquisition of a Pierce Enforcer 100' Ascendant Tower and to execute a capital lease agreement with Truist Equipment Finance Corp. in an amount not to exceed $2,520,474.00.
POTENTIAL MOTION: "I move to approve Resolution 26-36, authorizing the City Manager to execute a contract with Ten-8 Fire & Safety LLC for the acquisition of a Pierce Enforcer 100' Ascendant Tower and to execute a capital lease agreement with Truist Equipment Finance Corp. in an amount not to exceed $2,520,474.00."