Item Coversheet

CITY OF RIVIERA BEACH CITY COUNCIL
AGENDA ITEM SUMMARY

Meeting Date: 10/17/2018 
Agenda Category:REGULAR RESOLUTION

Subject: 

To approve an Addendum Master Tax-Exempt Lease/Purchase Agreement with U.S. Bancorp Government Leasing and Finance, Inc. to finance the purchase of one Aerial/Ladder (Pumper) Fire Truck and 20 Police Vehicles.


Recommendation/Motion: 

Staff recommends the City Council approve the Addendum Master Tax-Exempt Lease/Purchase Agreement with U.S. Bancorp Government Leasing and Finance, Inc. to finance the purchase of one Aerial/Ladder (Pumper) Fire Truck and 20 Police Vehicles.


Originating Dept Police  Costs $1,024,142.80 (Fire Truck) and $905,925.33 (Police Vehicles) Total: $1,930,068.13 
User Dept.Police / Fire Funding Source
AdvertisedNo Budget Account Number
Date   
Paper   
Affected PartiesNot Required   

Background/Summary: 

Fire Rescue is seeking to lease/purchase one (1) Aerial/Ladder (Pumper) consistent with our Apparatus Replacement Plan. This item seeks Councils approval to enter into a five (5) year agreement with U.S. Bancorp Government Leasing. 

The current proposal for the Fire Truck, based on the Florida Sheriffs Association pricing has a total cost of $928,463.63 before financing.

Purchasing has identified financing from U.S. Bancorp Government Leasing that provides for annual payments of $204,828.56 for a total cost of $1,024,142.80 after 3.361% financing. The proposed lease includes annual payments in arrears, making the first payment due November 19, 2019, therefore having no fiscal impact on the FY 2018-19 budget.

This vehicle will replace a unit which has been in the fleet for 15 years and has had its cost of ownership increase significantly in past several years. The old ladder truck is the most costly vehicle to repair in our fleet. Over the past three (3) years this apparatus has accumulated more than $110,000 in repairs. Additionally parts acquisition has become increasingly difficult causing further delays in this vehicle being available and ready to respond to emergencies. This purchase will stabilize a much needed and “mission-critical” resource within the Fire Department. 

The current proposal includes one (1) fully equipped Ladder Truck. The Apparatus will be delivered fully equipped with all emergency equipment (i.e. lights, sirens, warning devices, etc.). Total time for delivery is approximately is 11-13 months.

 

The Police Department is seeking to lease/purchase 20 Police Vehicles consistent with the City's Vehicle Replacement Plan, and approval to enter into a Lease/Purchase Agreement with U.S. Bancorp Government Leasing and Finance, Inc.

 

The current proposal, based on NJPA Pricing, has a total cost of $825,340.00 before financing. The proposal includes $1,233.00 per vehicle to outfit each vehicle with graphics and Automatic Vehicle Location (AVL) equipment for a total cost of $850.000.00.

 

Purchasing has identified financing from U.S. Bancorp Government Leasing that provides for annual payments of $301,975.11 for a total cost of $905,925.33 after 3.255% financing.  The proposed lease includes annual payments in arrears, making the first payment due in November 2019, therefore, having no fiscal impact on the FY2018 Budget.  The Purchasing Department solicited bids for financing and identified U.S. Bancorp as having the lowest interest rate.

 

The current proposal includes 20 fully equipped Police Vehicles.  Vehicles are delivered fully equipped with all emergency equipment (i.e., lights, sirens, prisoner cages, etc.).  Police vehicles are manufactured only after they are ordered, therefore, delivery is expected to take 8-10 months.

 

 
Fiscal YearsFY 2020FY 2021FY 2022FY 2023FY 2024
Capital Expenditures$506,803.67$506,803.67$506,803.67$204,828.56$204,828.56
Operating Costs
External Revenues
Program Income (city)
In-kind Match (city) 
Net Fiscal Impact
NO. Additional FTE Positions
(cumulative)

III. Review Comments

A. Finance Department Comments:
 
B. Purchasing/Intergovernmental Relations/Grants Comments:
 
C. Department Director Review:
Contract Start DateNovember 30, 2019 
Contract End DateNovember 30, 2023
Renewal Start Date
Renewal End Date
Number of 12 month terms this renewalFive
Dollar Amount$1,930,068.13
Contractor Company NameU.S. Bancorp Government Leasing and Finance, Inc.
Contractor Contact

Denise K. Beauchamp

Vice President, Leasing Sales

Contractor Address

3643 Spyglass Court

Green Cove Springs, Florida   32043

Contractor Phone Number904-284-3520
Contractor Emaildenise.beauchamp@usbank.com
Type of ContractOther
DescribeFinancing for Lease/Purchase of a Fire Truck and Police Vehicles
ATTACHMENTS:
File NameDescriptionUpload DateType
Resolution_US_Bancorp_Lease_Agreement_20_Police_Vehicles_and_Fire_Truck_9-20-18.docRESOLUTION: US BANCORP 20 Police Vehicles and 1 Fire Truck9/20/2018Cover Memo
AGREEMENT_-_US_BANCORP_-_SCHEDULE_10.pdfAGREEMENT: US BANCORP - SCHEDULE 109/28/2018Agreement
AGREEMENT_-_US_BANCORP_-_SCHEDULE_11.pdfAGREEMENT: US BANCORP - SCHEDULE 119/28/2018Agreement
Riviera_Beach_USBGLF_Proposal_092018.pdfQUOTATION: U.S. Bancorp9/20/2018Backup Material
Quotation_Alan_Jay_Fleet_Sales_NJPA-RIVIERA_BEACH_CITY_OF-CC15706_16344-3.pdfQuotation: Alan Jay Fleet Sales9/20/2018Backup Material
Credit_Application_-_20_Police_Vehicles_9-20-18.pdfCREDIT APPLICATION: 20 Police Vehicles9/26/2018Cover Memo
2019_Fire___Police_Lease.pdfRecommendation letter10/4/2018Cover Memo
REVIEWERS:
DepartmentReviewerActionDate
Police Madden, MichaelApproved10/4/2018 - 12:36 PM
PurchasingAnswererApproved10/4/2018 - 1:14 PM
Financesherman, randyApproved10/8/2018 - 8:39 AM
AttorneyAnswererApproved10/8/2018 - 11:39 AM
City ClerkAnswererApproved10/8/2018 - 1:36 PM
City ManagerAnswererApproved10/10/2018 - 6:29 PM