TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Fire
Adrian Sheppard, Fire Chief
425-556-2201
DEPARTMENT STAFF:
Fire
Micheal Despain
Interim Deputy Chief
TITLE:
title
Approval of a Contract with Leasing2 for the Financing of Fire Apparatus
OVERVIEW STATEMENT:
recommendation
The Fire Department has placed an order for (1) ladder truck, (1) wildland fire engine, and (3) fire engines for a total of $6,489,432.88. To assist with spreading this cost over multiple budget cycles, the Fire and Finance Departments would like to enter into a capital equipment lease agreement. The terms of the agreement are 4.92% over 10 years for an annual payment of $820,889.50. As outlined in the attached contract, Leasing2 will transfer and convey the equipment at the commencement of the lease.
The terms of the agreement are 4.92% over 10 years for an annual payment of $820,889.50. Following a thorough review of multiple companies' proposed terms, Leasing2 was selected by Fire and Finance as offering the most favorable combination of interest rate and term length.
As outlined in the attached contract, Leasing2 will transfer and convey the equipment at the commencement of the lease.
body
? Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
? Receive Information ? Provide Direction ? Approve
REQUEST RATIONALE:
* Relevant Plans/Policies:
Redmond Fire Department - Strategic Plan 2022-2027
* Required:
Council approval is required to approve this lease contract
* Council Request:
N/A
* Other Key Facts:
N/A
OUTCOMES:
The cost of fire apparatus is climbing quickly with inflation. From 2021 to 2024, the cost of fire apparatus climbed by over 8.75% per year. Spreading out future purchases over multiple biennia would exceed the funding allocated to the fire apparatus fund each year and would hinder the Fire Department's ability to place critically needed fire apparatus in service in time to...
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