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THE CITY OF 13 pL��SAN CITY COUNCIL AGENDA REPORT August 16, 2011 Fire TITLE: APPROVE AND AUTHORIZE THE CITY MANAGER TO EXECUTE AN EQUIPMENT LEASE WITH BANK OF AMERICA TO FUND THE ACQUISITION OF THREE CARDIAC MONITORS/DEFIBRILATORS SUMMARY Livermore-Pleasanton Fire Department (LPFD) needs to replace three cardiac monitor/defibrillators that have reached the manufacturer's recommended service life. Cardiac monitor/defibrillators are a critical piece of equipment in support of the life- safety services that the department delivers; used in assessing and, when necessary, treating people in medical emergencies. Purchase of the three cardiac monitor/defibrillators at a cost of $103,711 would have a negative fiscal impact on LPFD because the approved budget for fiscal years 2011/12 and 2012/13 does not include sufficient funds to cover the entire cost of such a purchase. The LPFD Consolidated Budget would need to bridge a funding gap of $83,461; an amount too significant to be covered through budget transfers from other LPFD accounts. Based on this staff is recommending a lease purchase financing to acquire the equipment as it provides the best alternative for utilizing the ongoing resources of LPFD. Based on a competitive bid process, staff is recommending entering into a five year equipment lease with Bank of America to acquire three LifePak 15 (LP15) cardiac monitor/defibrillators in the amount of$103,711. RECOMMENDATION Authorize the City Manager to execute an Equipment Lease agreement with Bank of America (Attachment 1) to purchase three LifePak 15 (LP15) cardiac monitor/defibrillators in the amount of$103,711. FINANCIAL STATEMENT The quarterly lease payments for equipment acquisition will be $5,489 for an annual total of $21,957.60. Total interest paid on the $103,711 purchase will be $6,076.53 for a total amount paid for the equipment of $109,788. The LPFD Consolidated Budget includes cardiac monitor maintenance contract services of $20,250 in each year of the fiscal year 2011/12 and 2012/13 budgets. The additional $1,707 per fiscal year needed to fully fund the lease can be covered through a transfer of funds from other LPFD accounts; thus avoiding any fiscal impact to the cities of Livermore or Pleasanton.