Title
An Ordinance approving a lease-purchase financing agreement between the City of Lee’s Summit and Clayton Holdings, LLC. for the purchase of new ambulances, and authorizing the City Manager to execute all documents necessary to effectuate the same by and on behalf of the City. (F&BC 8/5/24)
Body
Issue/Request:
This request will in effect replace the entire fleet of the Fire Department's ambulances. The current fleet will be traded in, offsetting the net price of the fleet replacement. The term of the lease is 6 years, which at the end of the term the City will own the apparatus and will then be free to make future decisions on replacement options.
Proposed Council Motion:
FIRST MOTION: I move for second reading of an Ordinance approving a Lease-Purchase Financing Agreement between the City of Lee’s Summit and Clayton Holdings, LLC. for the purchase of new ambulances, and authorizing the City Manager to execute all documents necessary to effectuate the same by and on behalf of the City.
SECOND MOTION: I move for adoption of an Ordinance approving a Lease-Purchase Financing Agreement between the City of Lee’s Summit and Clayton Holdings, LLC. for the purchase of new ambulances, and authorizing the City Manager to execute all documents necessary to effectuate the same by and on behalf of the City.
Key Issues:
The Fire Department, along with all other City departments, has been included in the Vehicle Equipment Replacement Program (VERP) since its creation. This has allowed for timely replacement of fire apparatus through the self-funded mechanism of the VERP. Although this process has worked as intended, it has resulted in inconstancies within the ambulance fleet as nearly all ambulances are of different years, models and varying interior designs. This is due to changes with manufacturing as well as design concepts that were applied. The VERP is also strained with the number of purchases and the effects of inflation.
Entering into the proposed agreement will solve for a number of issues. In effect, the Fire Department will design all of these ambulances to match and all be of the same manufacture year, with the exception of 2 that were previously ordered but have not yet been received. This will provide for operational consistencies across the fleet and will also help on the repair and maintenance side with our Fleet Division with stocking parts, as they will all be the same. This will in effect reduce the Fire Department overall VERP payment, but will be offset by the annual lease payment. This will also allow, in today's dollars, to increase the number of ambulances in the Fire Department Fleet by 2, allowing for a needed expansion of the reserve fleet, as well as provide for an anticipated expansion within the next few years. This will also allow for better fleet management, as the usage will be evaluated at least on a yearly basis and apparatus will be reassigned to maintain a consistent level of use throughout the fleet.
Pricing was obtained via the Sourcewell Cooperative Purchasing agreement which has been used for previous purchases through the same vendor and manufacturer, account number 37588
Timeline:
Start: Order will be placed in August of 2024, apparatus will be received in approximately 24 months after order
Finish: This is a 6-year term. At the conclusion of the term the City will own the apparatuses outright, allowing for all available replacement options.
Presenter
Brian Austerman, Deputy Fire Chief
Recommendation
Staff recommend approval of this agreement.
Committee Recommendation
A motion was made by Councilmember Carlyle, seconded by Councilmember DeMoro, that TMP-3067 be recommended for approval to the City Council. The motion carried by a unanimous 3-0 vote (Mayor Pro Tem Lopez "Absent").