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Item No. 12 <br />memorandum <br />TO: City Council <br />John Godwin, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: FINANCING PURCHASE OF FIRE TRUCK <br />DATE: January 13, 2016 <br />BACKGROUND: The Fire Department is in the process of replacing vehicles that have reached <br />the end of their useful service. In 2014 the City Council approved a lease agreement to purchase <br />a Pierce Dash CF PUC Pumper truck at a cost of $617,114. Annual payments on this vehicle are <br />72,352.77 bringing the total cost including financing to $723,527.75. <br />STATUS OF ISSUE: The Fire Department would like to place an order for a new Pierce Dash <br />CF Aerial, HA ladder truck this month. Delivery is expected to be approximately one year from <br />the order date. <br />BUDGET: The cost of this vehicle is expected to be $975,185. Financing will be done through <br />Liberty National Bank for a ten year period at an interest rate of 3.00 %. The annual payments on <br />this vehicle would be $114,337.15 bringing the total cost including financing to $1,143,371.50. <br />This resolution authorizes the City Manager to sign all documents necessary to facilitate <br />acquisition of the vehicle. <br />RECOMMENDATION: Motion to approve the resolution and authorizing the Mayor and City <br />Manager to sign necessary documents to finance and acquire a new fire truck. <br />