HomeMy WebLinkAboutReso 2016-148 RESOLUTION N0. 2016-148
RESOLUTION OF THE CITl' COUI�'CIL OF THE C[Tl' OF
CHULA V1STA APPROVING A SOLE SOURCE PURCHASE
OF ONE PIERCE AERIAL LADDER TRUCK FROM PIERCE
MANliFACTURIi�'G A?�TD A ]0-YEAR LEASE PURCHASE
AGREEMENT FOR THIS ACQUISITIOn' BETVdEEN THE
CITY OF CHULA VISTA :AIvD JPMORGAN CHASE BANK.
N.A. A_\�D AUTHORIZI?�'G THE CITI' n4ANAGER TO
EXECUTE THE AGREEMEI�'T AT AlV li�'TEREST RATE
MOST FAVORABLE TO THE CITY. NOT TO EJ<CEED
THREE PERCENT
WHEREAS. the Chula Vista Fire Department deli��ers Fire, Rescue and Emergencv
Medical Sen�ices to Chula Vista residents, visitors, and employees e�=en� day_ and
\�'HERE.AS. emereencv response services aze pro��ided ��ith se��eral different t}�pes of
fire appazatus indudins triple combination pumpedfire enoines: aerial ]adder trucks, a hea����
rescue. a brush eneine and battalion chief vehicles: and
A'HEREAS, the Fire Department needs to replace se��eral fire apparatus due to e�cessi��e
vears of sen�ice. escalatine maintenance costs and safet� issues: and
V�'HEREAS, the Fire Department ��°ill continue to meet the National Fire Protection
Aeenc�� standazds and increase the reliabilit�� of our current fleet with less do���ntime for
mechanical issues and provide a safer response �ehicle than our exisiine fleet; and
V�'HEREAS, the Fire Department is recommending a sole source purchase from Pierce
Manufacmring for the acquisition of one (1) Pierce Aerial Ladder Truck in order to replace an
esistine front line Aerial Ladder Truck. �ihich �vill be placed into reserve stams; and
�'�'HEREAS, the Fire Department also is recommendine to enter into a 10-vear lease
purchase agreement with JPMorsan Chase Bank, \'.A. for the acquisition of the Pierce Aerial
Ladder Truck in order to minimize the immediate fiscal impact: and
W"HEREAS, under Chula Vista Municipal Code Section 2.�6.070.B.4, a sole source
purchase is an exception [o the Cit��'s formal competitive bid requirements for equipment
purchases e�ceeding �100;000 ���hen a commodim is a��ailable from onl�� one I:no�+�n source as
the result of unique market conditions: such is the case with Pierce Manufacturing's Pierce
Aerial Ladder Truck; �ahich is affordable to Citv because of the 10-��ear lease purchase
aereement ti�ith JPMorean Chase Banl:. N.A._ and
VdHEREAS, the total cost to purchase one Piece Aerial Ladder Truck is �1.229,469.64.
which. based on an interest rate of 2.1 percent, �rill result in estimated annual pa��ments in the
amount of �li7.�89.70. The total estimated amount paid for these fire apparatus includine
interest ���ill be �1.37�.896.97 through the ]0-��ear lease purchase option; and
Resolution No. 2016-148
Pase No. 2
WHEREAS; because the above-referenced estimated amounts will change if the interest
rate changes; City staff is monitoring the market The Fire Department is recommending
authorizing the City Manager to execute the lease purchase agreement after Council approval to
lock in the lo�vest possible rate, not to exceed three (3) percent, in the City's best interest.
NOW, THEREFORE. BE ]T RESOLVED by the City Council of the City of Chula Vista
that it approves the sole source purchase of one (1) Pierce Aerial Ladder Truck from Pierce
Manufacturing.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves the 10-year lease purchase agreement for this acquisition between the City of Chula
Vista and .TPMorgan Chase Bank, N.A., in the form presented, with such minor modifications as
may be required or appro��ed by the City Attorney, a copy oF which shall be kept on file in the
Office of the City Clerk, and authorizes the City Manager to execute same at an interest ratemost
favorable to the City, not to exceed three (3) percent.
Presented by Approved as to form by
�-�.��-� ������
3'�m Geering Glen R. Googns
Fire Chief City Attorney
Resolucion ?�o. 2016-]48
Pase T�o. 3
PASSED. APPROVED. and �DOPTED b�• the Cit�� Council of the Cit�� of Chula Vista.
Califomia, this 26th da� of Jul�� 2016 br the followina vote:
AYES: Councilmembers: Bensoussan McCann. and Miesen
NA1'S: Councilmembers: None
ABSENT: Councilmembers: Aeuilar and Salas
Man� las. Mavor
ATTEST:
/
Donna R. I�'orris, Cn4 . Cim Clerk
STATE OF CALIFORNIA )
COU7�'TY OF SAN DIEGO )
CITY OF CHULA VISTA )
I. Donna R. Noms. Cin Clerk of Chula Vista. California. do hereb�� certifi� that the foreeoine
Resolution I�'o. 2016-148 was dul}� passed, approved, and adopted b}� the Citv Council at a
regular meeting of the Chula Vista Citv Council held on the 26th da�� of Juh� 2016.
Executed this 26th dav of Jul�� 2016.
�� ����
Donna R. Noms. CMC. Citv Clerk