Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH SUNTRUST EQUIPMENT FINANCING & LEASING CORP. FOR PURPOSES OF FINANCING A REMOUNTED AMBULANCE VEHICLE FOR USE BY THE CITY'S EMERGENCY MEDICAL SERVICE; AND DECLARING AN EMERGENCY.
Executive Summary: City Council previously approved a lease-purchase agreement with Excellance, Inc. for a remount ambulance. The remount is complete and ready for inspection and delivery to Hudson EMS. This resolution authorizes the lease agreement with SunTrust to finance the purchase.
Body
Legislative History
Ordinance 13-134 authorized the lease-purchase agreement with Excellance, Inc. for a remount ambulance in an amount not exceed $130,416.98. The amount of the lease was reduced to $129,437.06 due to minor adjustments to the project costs.
Purpose & Explanation
Due to maintenance and reliability issues that EMS was experiencing with its ambulances, beginning in 2005 it reduced the life cycle from nine years to six years. This has significantly improved operations by reducing down time and major repairs. As part of the revised replacement cycle, we started to lease-purchase ambulances and whenever possible, remount the ambulance box on a new chassis.
This remount replaces the ambulance that was originally delivered in November 2007 and represents a savings of approximately $79,000 as compared to the purchase of a complete new ambulance.
We obtained interest rate quotes from four different leasing companies, as follows:
SunTrust Equipment Finance & Leasing Corp 1.895%
Tax Exempt Leasing Corp 2.590%
Key Government Finance, Inc 2.875%
First Merit Equipment Finance, Inc 3.400%
The annual lease payment for the five year lease will be $27,377.10 with the first payment due in 2015. The estimated annual amount included in the Five Year Plan was $30,000.
Timing Considerations
We are requesting emergency language to allow for timely payment and delivery. The ambulan...
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