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1 <br /> M <br /> COUNCIL COMMUNICATION <br /> ff <br /> DECATUR FIRE DEPARTMENT <br /> 11-02 <br /> August 26, 2011 <br /> TO: Honorable Mayor Michael T. McElroy <br /> City Council Members <br /> FROM: Ryan P. McCrady, City Manager <br /> Matthew J. Sekosky, Fire Chief <br /> Ron Neufeld, Finance Director <br /> RE: Purchase Aerial Platform Fire Apparatus <br /> SUMMARY RECOMMENDATION: The Fire Department seeks to replace its 1994 aerial <br /> platform utilizing a lease to purchase option. The vehicle is from Pierce Manufacturing of <br /> Appleton, Wisconsin. It is a Pierce Velocity 100' platform. The 100' platform is a demonstration <br /> model soon to be completed at the factory. The vehicle would be purchased through the North <br /> West Municipal Conference (NWMC). This would be similar to a state bid. Financing will be <br /> through Busey Bank. <br /> BACKGROUND: Purchasing demonstration models is an option instead of traditional <br /> bidding. The demo unit can be placed into service within 4 — 6 weeks instead of the 7- 8 months <br /> it takes to order a custom built unit. Since we are considering a Pierce apparatus we are eligible <br /> for the NWMC discount. We have purchased most of our entire fleet through this consortium. <br /> Pierce also offers a 100% prepay option. We will make a 100%prepayment on this vehicle. This <br /> discount is $11,200 and will be subtracted from the purchase price of$959,050. (We have also <br /> utilized this option in the past.) <br /> POTENTIAL OBJECTION: None <br /> STAFF REFERENCE: Matthew Sekosky, Fire chief(424-2811) <br /> Jeff Abbott, Deputy Fire Chief(424-2811) <br /> BUDGET/TIME IMPLICATIONS: Financing for the new vehicle will be through <br /> Busey Bank. The total amount of requested finance is $947,850.00. The terms of the lease will <br /> be for 7 years, at an annual payment of$148,544.28 per year at 2.37% financing. <br />