MORAGA-ORINDA FIRE PROTECTION DISTRICT REQUEST FOR PROPOSAL VEHICLE LEASE PURCHASE AGREEMENT $2,855,000 ISSUE DATE: MARCH 16, 2017 PROPOSAL DUE DATE: APRIL 7, 2017, 5:00 PM
1. INTRODUCTION AND BACKGROUND The Moraga-Orinda Fire Protection District (District) seeks written proposals for vehicle lease purchase financing for two ambulances, two fire engine pumpers and one tractor drawn aerial fire truck. In January 2017 the District executed contracts to purchase the apparatus for a total cost of $2,858,542. The District plans to enter into a tax exempt municipal lease agreement in the amount of $2,855,000 to spread the cost of the apparatus across the life of the vehicles. Resolutions were executed to declare the District s official intent to use lease financing. The District is Bank Qualified. The District provides fire protection, rescue, emergency medical, hazardous material response, ambulance and any other services relating to the protection of lives and property to the City of Orinda, the Town of Moraga, some unincorporated county areas adjacent to the municipalities, and the community of Canyon. The District also provides automatic aid into Lafayette and State Responsibility Areas within the District s boundaries. The District is a Special District formed in 1997. The principal act that governs the District is the Fire Protection District Law of 1987. The District operates five fire stations, one administrative office building and employs approximately 96 personnel. The District s Comprehensive Annual Financial Reports are available on the District s website under Administrative Services at www.mofd.org. 2. LEASE REQUIREMENTS The term of the lease will be either 5 or 7 years. Repayment terms are semi-annual payments. 3. CONTACT INFORMATION Questions or inquiries regarding this RFP should be directed to Gloriann Sasser, Administrative Services Director, at 925-258-4530 or via email at gsasser@mofd.org. 4. APPARATUS DETAILS AND PAYMENT INFORMATION The District purchased the following: Two 2017 Pierce Arrow fire engine pumpers One 2017 Pierce Arrow tractor drawn aerial fire truck Two 2017 Leader ambulances The ambulances were purchased through the National Joint Powers Alliance competitively solicited national contract. The fire engines and fire truck were purchased through the Houston-Galveston Area Council purchasing cooperative contract number FS12-15, TA10. Resolutions of declaration of official intent to execute lease-purchase agreements were adopted prior to purchase of the apparatus. In February 2017 the District paid $2,492,591.19 to Pierce Manufacturing as payment-in-full for the two fire engine pumpers and one fire truck. The District intends to reimburse itself with the lease proceeds. See Resolution 17-06. The District will pay $365,951.25 upon delivery of the two ambulances. See Resolution 17-07.
5. PROPOSAL PROCESS Proposals must be delivered directly to the District no later than 5:00 pm on April 7, 2017. Late submissions after the deadline will not be accepted. Proposals can be delivered via mail or electronic mail. A total of 1 proposal must be submitted. The proposal may be delivered via email to gsasser@mofd.org or delivered via mail to: Moraga-Orinda Fire Protection District 1280 Moraga Road Moraga, CA 94556 Attention: Gloriann Sasser, Administrative Services Director The District will evaluate each proposal submitted. It is anticipated that the review process will be completed and a recommendation will be made to the Board of Directors by May 17, 2017. The District will make every effort to administer the proposal process in accordance with the terms and dates discussed in this RFP. However, the District reserves the right to modify the proposal process and dates as deemed necessary. 6. PROPOSAL REQUIREMENTS To be considered for selection, the following information must be included in the proposal: Fixed interest rate Amortization schedule semi-annual based on a 5 year lease and a 7 year lease Detailed pre-payment terms A statement as to whether the proposal is credit approved or subject to credit approval Lender s standard tax-exempt lease agreement Escrow account options Three municipal references 7. FUNDING SOURCE FOR THE CAPITAL LEASE PAYMENT The capital lease payments will be accounted for in the District s Debt Service Fund. The funding source for the capital lease payments will be fire flow tax revenue. Fire flow taxes represent a special tax on property on the secured tax roll, collected by the District since its inception in 1997. The fire flow taxes are collected in each of the District s two service zones for the purpose of obtaining, furnishing, operating, and maintaining fire protection, prevention and suppression and emergency medical equipment, apparatus or facilities, including water distribution facilities for fire suppression purposes, for paying the salaries and benefits of firefighting and emergency medical personnel, and for such other fire protection, prevention and suppression and emergency medical expenses as are deemed necessary by the District. For fiscal years 2015-16 and 2016-17, the fire flow tax rate was established at six cents ($0.06) in Moraga, and six cents ($0.06) in Orinda. Fire flow tax revenue received in 2016-17 totaled $1,076,738 and in 2015-16 totaled $1,070,214.
8. FINAL COMMENTS The District reserves the right to reject any and all proposals, cancel all or part of this RFP, waive any minor irregularities and to request additional information from proposing lenders. By requesting proposals, the District is in no way obligated to award a contract or pay expenses of the proposing companies in connection with the preparation or submission of a proposal. The decision to award a contract will be based on many factors including but not limited to service, cost, financial strength and innovation. No single factor, such as cost, will determine the final decision to award. The District appreciates the efforts of all the companies and their respective staffs in responding to the Request for Proposal.