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AGENDA ITEM REVIEW FORM |
- Meeting Date:
- 01/11/2017
- Department Head:
- Hank Green
- Submitted By:
- Hank Green, Fire Chief, Fire Department
ITEM:
SUMMARY:
~~SLFD came before the City of San Luis City Council Work Session on December 7 and the Regular Meeting on December 14, 2016. At the latter meeting, SLFD was given approval and direction to:
• Pursue a multi-year loan to finance the purchase of two ambulances, and
• Approve the purchase of two new ambulances in the amount of $379,290.00 using the cooperative purchasing of Houston Galveston Area Council pursuant to San Luis Purchasing Code Section 36.09 and
• Paying on the purchase this fiscal year a down payment of $37,929.00.
SLFD has been working to finalize the paperwork and move forward with the loan and purchase of these ambulances. We identified that the tax, license and registration was not included in pricing provided. This was an oversight on my part. The taxes present a significant challenge, being 10.75% (City of San Luis tax) or an additional $37,929.00 to purchase these ambulances. This added expenditure exceeds the authority and direction of City Council’s action of December 14, 2016.
SLFD believes we can still accomplish our goal of purchasing the ambulances, but it will require a change to our authority. We will still pursue financing for the purchase (loan for $379,290.00) and use the Houston Galveston Area Council purchasing program pursuant to San Luis Purchasing Code provisions. The change is that we would use the money identified for the down payment ($37,929.00) to pay the greatest share of our estimated taxes (10.7% or) $40,584.03. The balance (difference) would also come from the 340-341-90000 Capital Account. There is a balance to meet this need. We will forgo the purchase of one of the identified items in this account, which will provide sufficient funds for this expenditure.
Subsequent license and registration fees would be paid from appropriate O & M accounts.
Obviously, with nothing down, the annual payments and the payment schedule will change. Additionally, if we delay the execution of the loan, interest rates may change. Our point of contact at the bank indicates the rates could change significantly after the first of the year. The current financing quote will be honored for 30 days.
Attached is a spreadsheet with the details.
SLFD is requesting authority to;
• Pursue a multi-year loan to finance the purchase of two new ambulances,
• Purchase two new ambulances in the amount of $379,290.00 using the cooperative purchasing of Houston Galveston Area Council pursuant to San Luis Purchasing Code Section 36.09.
RECOMMENDATION / SUGGESTED MOTION:
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $40,600.00
- BUDGETED:
- YES
- AVAILABLE TO TRANSFER:
- $45,600.00
- GL ACCT # & NAME/REMAINING BALANCE BEFORE PURCHASE:
- 340-341-90000 Captial Project Budget FY17 Ambulance Fund
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Additionally, a loan will be obtained to finance the purchase amount ($379,290.00) with no down payment and the first payment of $82,101.84 to be paid 6 months after the execution date of the loan (July 1, 2017).