To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Fire Apparatus Lease Purchase Agreement
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
Acting as the governing body of the Crockett-Carquinez Fire
Protection District, APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute, on behalf of the District, a lease-purchase agreement between the District and JP Morgan Chase Bank N.A., to purchase two fire engines, for an amount not to exceed $1,734,116 over a 10-year term.
FISCAL IMPACT:
The two (2) HME, Inc. Type 4x2 (OES Model) Type 1 Fire Apparatus Trucks are valued at approximately $1,345,630 including sales tax and associated charges. The Board approved this purchase on July 22, 2025 (agenda item C.130) and purchase order # 33159 was executed on July 23, 2025. The annual interest rate for financing for the two vehicles will not exceed 4.899% over ten (10) years for a total cost of $1,734,116 to finance the two Fire Apparatus. Scheduled payments will begin after the Board approves the action and the loan papers are finalized. The annual lease purchase payments will be included in the annual Crocket-Carquinez Fire Protection District budget. The District will make payments to JP Morgan Chase Bank N.A (“JP Morgan”).
BACKGROUND:
The Crockett-Carquinez Fire Protection District requires the HME Type 4x2 (OES Model) Type 1 Fire Apparatus (“New Apparatus”) to replace three (3) engines:
1) Engine 78, 2015 Pierce Type 1: with continuous mechanical issues impacting department budget and apparatus availability for responses. The design of the apparatus is ill suited to operations due to height and configuration
2) Engine 78A and Engine 79 Pierce Type 1: age of apparatus’ resulting in longer and more frequent down time and difficulty finding replacement parts.
With the purchase of the two new Type 1 Engines, the District reduces the fleet from 3 to 2, eliminating the cost of maintaining older equipment, and replacing equipment carried on the apparatus.
The National Fire Protection Association (NFPA) Standard 1901 for Automotive Fire Apparatus and Standard 1911 for Inspection, Maintenance, Testing and Retirement of In-Service Automotive Fire Apparatus both recommend front-line apparatus be retired into reserve status after 15 years of service. This is primarily for safety reasons. Older apparatus does not afford firefighters the same level of safety as modern apparatus due to cab designs, inherent safety features incorporated into modern apparatus design, modern braking systems, and other considerations. The new apparatus will have a direct and immediate impact on reducing maintenance costs and improving firefighter safety. The new apparatus meets all current safety standards, including low diesel emission requirements.
In 2020, HME, Inc. was awarded the State of California, Department of General Services Contract #1-20-23-21A through competitive solicitation. The contract awarded by the State was in effect until July 23, 2025. The new apparatus purchase price is based on the State of California contract and meets all competitive bid requirements.
The District is in a favorable position to finance the purchase of the new apparatus. The County has an existing relationship with JP Morgan and has made other lease purchases using financing from JP Morgan. JP Morgan has indicated they will approve financing for the District based on a review of their credentials.
The District can purchase the new apparatus under a new lease-purchase agreement with JP Morgan. The total lease cost will be approximately $1,734,116, including principal and interest over the 10-year lease purchase term. The District will enter into a lease-use agreement with JP Morgan and will maintain, operate, use, insure, and be responsible for loss of or damage to the new apparatus. Staff recommends that the Board approve this item, as recommended, to ensure the District can acquire critical equipment to replace fire apparatus beyond its useful life.
CONSEQUENCE OF NEGATIVE ACTION:
Crockett-Carquinez Fire Protection District will not be able to purchase the new apparatus, which will result in increased maintenance costs of the older equipment.