Agenda Date: 12/06/2016
Subject:
Title
An ordinance on second reading approving an amendment to the 2012 master lease purchase agreement between the City of Littleton and JP Morgan Chase Bank, NA for the lease/purchase of a fire platform truck
Body
Presented By:
Doug Farmen, Finance Director
POLICY QUESTION:
Does city council support an ordinance approving an amendment to a master lease/purchase agreement between the City of Littleton and JP Morgan Chase Bank, NA for a platform truck?
BACKGROUND:
City council considered and approved Policy Question #13 during its 2017 Proposed Budget review.
The platform truck will replace Ladder 18, a 2006 Pierce ladder truck. The truck went into service in February 2007 and has accumulated 8,239 hours and more than $303,000 in repair costs in its ten years of service.
Littleton Fire Rescue (LFR) staff has deemed the Pierce ladder truck to be a "Standardization of Equipment" and, therefore, exempt from the city's competitive purchase requirement. This exemption is shown in City Code Section 1-15-3 (B) and supported by the attached affidavit and LFR memorandum.
Staff is requesting an "Amendment" to a 2012 "Master Lease Agreement" which financed both a medic unit and a fire engine lease/purchase from JP Morgan Chase Bank (attached).
City Code Section 1-16-1 (Authority to Lease) requires city council approval of ordinances for lease agreements beyond the current fiscal year.
STAFF ANALYSIS:
The lease/purchase is included in the adopted 2017 annual budget appropriation:
Capital Projects Fund
$1,400,000 (34-220-7850 for recording the full purchase cost of the truck)
Annual lease payment budgeted
$188,240 (34-220-7910)
The lease costs will be shared equally with the two fire partners. Littleton will be reimbursed $125,490 of the $188,240 lease payment (67% reimbursement).
FISCAL IMPACTS:
Payments will begin in early 2017, and extend annually through 2024 (eight-years). The lease includes a pr...
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