R2015-26 AUTHORIZING CITY TO ACQUIRE A PIERCE IMPEL PUMPER FIRE APPARATUS

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The manufacturer offers a purchase price discount of approximately 3.3% upon 100% pre-payment at placement of order. The apparatus price as quoted by the manufacturer is $456,738 with a 100% pre- payment discount of$15,432, for a net acquisition cost of$441,306. The financing scenario will include 100% pre-payment at order placement, with the pre-payment amount funded by the selected financing institution. The financing arrangement will include annual payments with the first payment due 1 year post order placement date. It is anticipated that the apparatus prepayment date will be circa April, 2015, with first payment due circa April, 2016. We would envision a financing period of 5-7 years duration, similar to that financing period approved by Council with the acquisition of the Pierce Arial Platform apparatus in 2011. With this resolution presented to Council for approval, Council will grant the City authority to secure debt financing of a not to exceed amount of $450,000 with an annual interest financing rate of not to exceed 3.0%, with City ability to select a debt repayment term of 5-7 years. Such repayment term will be selected from the most favorable terms quoted by the financing institutions. POTENTIAL OBJECTION: None STAFF REFERENCE: Jeff Abbott, Fire Chief(424-2811) Todd McKenzie, Battalion Chief(424-2811) BUDGETITIME IMPLICATIONS: The 2015 budget approved by Council included acquisition of the fire pumper apparatus contemplated by this request. No funds will be expended that impact the 2015 budget.