TO: Mayor and Commissioners
FROM: Neal de Jesus, Fire Chief
THROUGH: George Gretsas, City Manager
DATE: January 16, 2020
Title
RESOLUTION NO. 28-20 REPEALING RESOLUTION NO. 112-19, APPROVING THE UTILIZATION OF CONTRACT NO. 17-0606G BETWEEN LAKE COUNTY, FLORIDA AND MUNICIPAL EMERGENCY SERVICES, INC., TO OBTAIN EQUIPMENT FOR THE DELRAY BEACH FIRE RESCUE DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO EXECUTE A MASTER EQUIPMENT LEASE PURCHASE AGREEMENT WITH COMMUNITY FIRST NATIONAL BANK; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.
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Recommended Action:
Recommendation
Motion to approve Resolution No. 28-20 to appeal Resolution No. 112-19, to approve the utilization of Contract No. 17-0606G between Lake County, Florida and Municipal Emergency Services, Inc. (MES) to obtain equipment for the Delray Beach Fire Rescue Department and authorize the City Manager to execute a master equipment lease purchase agreement with Community First National Bank.
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Background:
On June 1, 2017, Lake County awarded Contract No. 17-0606G to MES for the provision of fire equipment parts, supplies and services. The initial term of the Contract was effective from July 1, 2017 through June 30, 2018 with options to renew for four (4) additional one-year periods. Lake County has exercised the first two (2) renewals and the Contract has been renewed through June 30, 2020. The City of Delray Beach (City) wishes to utilize the Lake County Contract for the purchase of Scott Self-Contained Breathing Apparatus (SCBA) equipment.
The Fire Rescue Department uses SCBA to protect firefighters from the dangers of fire, heat, smoke, and toxic gases while fighting fires and while operating in hazardous atmospheric environments. The National Fire Protection Association (NFPA) provides industry standards that are updated on a regular basis. NFPA 1981, Standard on Open-Circuit Self-Contained Breathing Apparatus for Emergency Services and NFPA 1982, Standard on Personal Alert Safety Systems provide the technical guidance for equipment standards. The Department is currently using SCBA that meet the 2007 edition of the NFPA standards. The Fire Department seeks funding to replace all its current SCBA in order to meet the 2018 edition of the NFPA standards.
On May 21, 2019, the City approved Resolution No. 112-19 authorizing the City Manager to utilize Contract No. 17-0606G to obtain equipment for the Delray Beach Fire Rescue Department and authorizing the City Manager to enter a Master Equipment Lease Purchase Agreement with Community First National Bank. Prior to the full execution of the Master Equipment Lease Purchase Agreement, the City was notified that it had been awarded a Fiscal Year (FY) 2018 Assistance to Firefighters Grant from the U.S. Department of Homeland Security in the amount of $585,454.54 to purchase the SCBA equipment. As a condition of the grant, the City is required to contribute non-Federal funds equal to or greater than ten percent (10%) of the total grant awarded, or $58,545.54, for a total approved budget of $644,000. Based upon the grant award, the previously approved payment schedule for the Master Lease Purchase Agreement must be amended to reflect a lower amount requiring financing.
The City desires to lease purchase the SCBA equipment over a three-year term. Community Leasing Partners (CLP), a division of Community First National Bank, is the leasing/financing division of MES, the nation’s largest personal protective equipment provider. CLP and MES work together to provide a cohesive communication plan for end users across the country on their purchase and financing of emergency related equipment. The City desires to enter in a Master Equipment Lease Purchase Agreement with Community First National Bank for a term of three (3) years at 0% interest payable as follows:
Year 1 Payment: $644,000 (Grant award amount + 10%)
Year 2 Payment: $183,572
Year 3 Payment: $183,572
$1,011,144 Total Cost
This motion is in accordance with the Code of Ordinances Chapter 36, Commission Approval Required and Purchasing Policies, Accessing Contracts from Other Government Agencies and Not-for-Profit Organizations.
Attachments:
1. Sample Master Equipment Lease Purchase Agreement with Community First National Bank
2. Resolution No. 28-20
3. Legal Review Checklist for the Community First National Bank Master Equipment Lease
Purchase Agreement
4. Lake County 17-0606G Signed Agreement with MES
5. Quote from MES in accordance with Lake County Contract
6. Grant Award Package from US Dept. of Homeland Security
City Attorney Review:
Approved as to legal form and sufficiency.
Funding Source/Financial Impact:
Funding is available from account numbers 334-22-000-522.46-20 and 001-22-000-522.52-27.