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RESOLUTION NO. 2016-148 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE PURCHASE OF ONE PIERCE AERIAL LADDER TRUCK FROM PIERCE MANUFACTURING AND A 10-YEAR LEASE PURCHASE AGREEMENT FOR THIS ACQUISITION BETWEEN THE CITY OF CHULA VISTA AND JPMORGAN CHASE BANK, N.A. AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AT AN INTEREST RATE MOST FAVORABLE TO THE CITY, NOT TO EXCEED THREE PERCENT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The Chula Vista Fire Department delivers Fire, Rescue and Emergency Medical Services to Chula Vista residents, visitors, and employees daily. Emergency response service delivery are provided with several different types of fire apparatus including triple combination pumper/fire engines, aerial ladder trucks, a heavy rescue, a brush engine and battalion chief command vehicles. The Fire Department needs to replace several fire apparatus due to excessive years of service, escalating maintenance costs and safety issues. With the suspension of funding in the City's vehicle replacement fund, the historical funding source utilized for fire apparatus replacement is no longer available. The Finance and Fire Departments have identified a lease purchase program through JPMorgan Chase Bank N.A. (JPMorgan) that provides a means to purchase one (1) Aerial Ladder Truck from Pierce Manufacturing. A lease/purchase program will minimize the immediate fiscal impact.
Under Chula Vista Municipal Code Section 2.56.070.B.4, a sole source purchase is an exception to the City's formal competitive bid requirements for equipment purchases exceeding $100,000 when a commodity is available from only one known source as the result of unique market conditions; such is the case with Pierce Manufacturing's Pierce Aerial Ladder Truck, which is affordable to City because of the 10-year lease purchase agreement with JPMorgan Chase Bank, N.A
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