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HomeMy WebLinkAboutItem 05 Approval to Lease-Purchase One (1) Fire Pumper AGENDA ITEM SUMMARY Meeting Date: 5/2/2016 Meeting Type: Regular Meeting Staff Contact/Dept.: Joe Zaludek/Fire Staff Phone No: 541-682-7103 Estimated Time: Consent Calendar S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Strengthen Public Safety by Leveraging Partnerships and Resources ITEM TITLE: APPROVAL TO LEASE/PURCHASE ONE (1) FIRE PUMPER ACTION REQUESTED: Adopt/not adopt the following resolution: A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER INTO A 5-YEAR, TAX EXEMPT, LEASE PURCHASE AGREEMENT WITH PNC EQUIPMENT FINANCE TO FINANCE THE PURCHASE OF A NEW FIRE PUMPER. ISSUE STATEMENT: PNC Equipment Finance requires a Council Resolution to authorize Fire & Life Safety (FLS) to lease purchase one (1) fire pumper for front-line service. ATTACHMENTS: 1.Resolution DISCUSSION/ FINANCIAL IMPACT: The current 75’ ladder truck is a 2001 E-One that has exceeded its’ reliable lifespan and is in need of replacement. The lease/purchase of a new Pierce Velocity fire pumper was approved by Council on 3/21/16, but PNC Equipment Finance is requiring a Council Resolution as well. Springfield has had a Master Lease Agreement in place with Oshkosh Capital for financing of fire apparatus the past several years. Oshkosh Capital is now PNC Equipment Finance. As part of the new PNC Master Lease Agreement, they are requiring a Council Resolution, which was not required by Oshkosh Capital. The City is using a five year lease purchase option, based on the significant cost of the apparatus. The lease payments will be $127,628 per year. AIS ATTACHMENT 1, Page 1 of 2 AIS ATTACHMENT 1, Page 2 of 2