To: Board of Directors
From: Lewis Broschard, Chief, Contra Costa County Fire Protection District
Report Title: Fire Apparatus (Type 1 Engines) Acquisition and Lease-Purchase Program
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
1. APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a purchase contract with Golden State Fire Apparatus, Inc., for the manufacture and sale of five (5) Type 1 fire engines, in an amount not to exceed $6,658,505, including indemnity by the Contra Costa County Fire Protection District.
2. APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a new lease schedule under the Master Lease Agreement with PNC Bank, National Association, for an amount not to exceed $7,832,245 in ten (10) annual payments of approximately $783,224.43 and a term of ten years for the lease-purchase of the Pierce fire engines.
3. APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a four-party agreement among Golden State Fire Apparatus; PNC Bank, National Association; Pierce Manufacturing, Inc.; and the Contra Costa County Fire Protection District regarding the manufacture, delivery of the fire engines, and initiation of the lease.
FISCAL IMPACT:
Budgeted. 100% CCFPD General Fund
The apparatus will be acquired using the Houston-Galveston Area Council (HGAC) cooperative purchasing program. The fire engines are priced at $1,266,701 each, for a total purchase price of $6,333,505, including sales tax. The purchasing authority includes an additional $325,000 to allow for contingencies.
The total financing cost, at an annual interest rate of 4.13%, will not exceed $1,498,740.92. This rate is lower than the most recent lease-purchase schedule but higher than previous lease-purchases due to current market conditions and the federal elimination of tax-exempt municipal financing. PNC Bank, National Association, under the MLA, will pay the purchase price for the apparatus. The annual paym...
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