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RESOLUTION AUTHORIZING THE PURCHASE OF A FIRE RESCUE VEHICLE FROM CUSTOM FIRE APPARATUS, INC. IN THE AMOUNT OF $632,632 AND STATING THE INTENT TO ISSUE GENERAL OBLIGATION NOTES
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to contract with Custom Fire Apparatus, Inc. in the amount of Six Hundred Thirty Two Thousand, Six Hundred Thirty Two Dollars ($632,632.00), payable from Capital Equipment Fund 250; Public Administration Dept. 015; Fiscal Year 2016; Account 5580 Capital Equipment.
FURTHER RESOLVED, that under and pursuant to the provisions of Minnesota Statutes section 410.32 and 412.301 (the “Act”), Minnesota Statutes Chapter 475, and the City Charter, the City is authorized to issue its general obligation capital equipment notes to provide funds to purchase capital equipment having an expected life at least as long as the term of the capital equipment notes and declares the intent of the City to issue capital equipment notes in either 2016 or 2017 in an amount to finance the fire rescue vehicle purchase price of $632,632 together with an additional amount to pay costs of issuance.
FURTHER RESOLVED, the terms and conditions of the capital equipment notes and the sale thereof shall be established by further resolution of the Council and this resolution constitutes a declaration of official intent under Treasury Regulations Section 1.150-2.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase of one fire rescue vehicle. The vehicle being replaced (unit # 7349) has 112,950 plus miles and 11, 970 plus hours. It is a 2002 American LaFrance. The replacement of this vehicle was unanticipated in our capital equipment budget and requires replacement because American LaFrance is out of business, so obtaining replacement parts or service is nearly impossible. This vehicle also was constructed with a dual frame steel rail system, which has recently exhibited severe signs of pending failure. It is the only Rescue Squad in the fire department and its time out of service is increasing, therefore replacement is critical.
The anticipated delivery time is expected not to exceed ten months. Payment is due upon delivery and will be financed through the issuance of capital equipment notes in either 2016 or 2017.
The purchasing division posted a request for bids on December 18, 2015 on the city’s website. Four bids were received by the closing date and referred to the fire department’s apparatus committee. After careful review, the committee is recommending that Council award the purchase to the lowest responsible bidder, Custom Fire Apparatus, Inc. The bid results are attached as Exhibit A.