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4 <br /> THE CITY OF <br /> -•• 1i�I°°l W. CITY COUNCIL AGENDA REPORT <br /> PLEASANTON. <br /> September 5, 2023 <br /> Public Works <br /> TITLE: APPROVE PURCHASE OF AN ENFORCER 1500 GPM PUMPER TYPE 1 <br /> FIRE ENGINE, AUTHORIZE THE EXECUTION AND DELIVERY OF AN <br /> EQUIPMENT LEASE/PURCHASE AGREEMENT WITH JPMORGAN CHASE <br /> BANK, N.A., AND AUTHORIZE THE CITY MANAGER TO EXECUTE <br /> RELATED DOCUMENTS AND ACTIONS NECESSARY TO COMPLETE <br /> THE LEASE/PURCHASE FINANCING IN AN AMOUNT UP TO $1,389,166 <br /> SUMMARY <br /> The current Engine 91 (E91) is a 2012 Pierce Quantum Type 1 Fire Engine assigned to <br /> Fire Station #1 for the Livermore-Pleasanton Fire Department (LPFD). The primary <br /> function of E91 is the emergency response for firefighting operations. In addition, E91 <br /> responds to all-risk emergencies and is designed to carry fire/rescue equipment with the <br /> primary focus of holding 500 gallons of water for fire suppression capabilities. Staff <br /> recommends purchasing the fire engine from Golden State Fire Apparatus, Inc. (GSFA). <br /> GSFA is the sales and service dealer for Pierce Manufacturing, Inc., a company that <br /> manufactures customized fire and rescue apparatus. <br /> Staff recommends the City enter into a lease/purchase agreement with JPMorgan <br /> Chase Bank, N.A. to finance the fire engine. This financing arrangement will allow the <br /> City to prepay GSFA to receive $160,000 in prepayment discount, maintain an <br /> adequate fund balance for emergency purchases, and retain funds for other scheduled <br /> vehicle replacements. The lease will be structured as a tax-exempt lease, and annual <br /> lease payments will be appropriated in the budget. <br /> RECOMMENDATION <br /> • Approve the purchase of an Enforcer 1500 GPM Pumper Type 1 Fire Engine <br /> from GSFA in the amount of$1,237,932 which includes a 10 percent contingency <br /> • Authorize the execution and delivery of an equipment lease/purchase agreement <br /> with JPMorgan Chase Bank, N.A. <br /> • Authorize the City Manager to execute related documents and actions necessary <br /> to complete the lease/purchase financing in an amount up to $1,389,166 <br /> including $1,237,932 in principal and $151,234 in interest. <br /> FINANCIAL STATEMENT <br /> The proposed term of the lease/purchase financing with JPMorgan Chase Bank, N.A. is <br /> five years. The annual lease payment is estimated at $277,833 ($138,917 semi-annual <br />