Fire department seeks lease-purchase financing for apparatus; committee asks for fuller packet before May 6

Fire Chief Adrian Shepherd and Deputy Chief Mike Despain asked the Parks and Environmental Sustainability Committee of the Whole on April 22 to place a lease-purchase financing agreement with Leasing 2 on the May 6 agenda so the department can order replacement fire apparatus.

Shepherd said the request responds to earlier problems with engine purchases received in 2021 that were not suitable and required extended repairs; the department moved one purchase to lease to return problematic units. Despain explained staff want to order replacement engines now and pursue a lease-purchase (10-year term) because buying multiple units together and prepaying lowers per-unit cost and because apparatus unit prices are rising about 8.75% per year, faster than typical inflation. Despain said the approach will restore the front-line fleet and reduce reliance on borrowing apparatus from neighboring agencies, though he noted reserve fleet health will take longer to recover.

Councilmembers asked several detailed questions. Vice President Forsyth asked whether the financing terms would change the budget number; staff said the fund balance is sufficient and that cancelling the 2021 order produced savings that partly offset costs. Councilmember Fields asked that lessons learned from the 2021 procurement be shared with the finance department’s review of purchasing practices; Chief Shepherd and Despain said they are collaborating with finance on purchasing improvements. Councilmember Stewart raised a number of packet and procurement questions: if the proposal is sole-source, why the leasing agent appears to be based in Florida, and the identity of special counsel in an exhibit; she asked for fuller packet materials before final council action. Stewart also asked about links to the city’s fleet study and how electrification plans fit with proposed diesel apparatus; staff said the current order would be diesel (non-electric) while the department is piloting electric apparatus and will continue to pursue grants and future electric units when feasible.

Councilmember Stewart asked staff to provide additional written information and said she would follow up with staff directly; Fields said she would review responses and pull the item from consent if the answers were not sufficient. The committee did not vote; staff will return the item to the May 6 meeting with supplemental materials and the proposed leasing agreement.

Ending: Staff to provide additional procurement and packet details; the leasing contract will be returned to the May 6 council packet for consideration.