ITEM NO. 9
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Jeff LaTendresse, Fire Chief |
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| DATE: |
08/05/2026 |
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| SUBJECT: | Consideration of a Resolution Authorizing the City Manager to Enter into a Lease/Purchase Agreement with PNC Equipment Finance, LLC, for a New Type I Fire Engine in the Amount of $1,136,301.95
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Recommendation:
Adopt Resolution No. 2026-36 authorizing the City Manager to enter into a Lease/Purchase Agreement with PNC Equipment Finance, LLC, for a new Type I structural fire engine in the amount of $1,136,301.95.
Background/Analysis:
At the October 11, 2023, City Council meeting, the City Council approved the purchase of a new Type I structural fire engine from South Coast Fire Equipment of Corona. The engine will be built by Pierce Manufacturing and will be delivered in approximately forty-three to forty-six months. The fire engine will be Lease/Purchased through PNC Equipment Finance, LLC, and as part of the lease agreement a Resolution is required. The engine is expected to be delivered to the City in May 2027.
- Fiscal Impact Yes/No:
- No
Additional Fiscal Information:
None with the adoption of the Resolution. The first lease payment will not be due until August of FY 2027/2028. The cost of the new engine is $1,176,148.24, and the City received a prepayment discount of $39,846.29, leaving a balance of $1,136,301.95. This amount will be leased on a ten-year term with an annual payment of $151,547.06 at a 5.61% interest rate. The proposed costs will be included in the City’s future financial projections.