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Item #21 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF JULY 179 2001 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: DILU DE ALWIS, ACTING FINANCE DIRECTOR iA_ SUBJECT: ADOPT THE ATTACHED RESOLUTION TO ENTER INTO A TAX-EXEMPT LEASE TO PROVIDE FINANCING FOR REIMBURSEMENT OF THE ACQUISITION OF A TRIPLE COMBINATION FIRE ENGINE IN THE PRINCIPAL AMOUNT OF $258,626.09 AND THREE DUMP TRUCKS AND A SURVEY TRUCK IN THE AMOUNT OF $200,000. DATE: JULY 3, 2001 BACKGROUND At the City Council meeting of February 15, 2000, the City Council awarded a contract to purchase a triple combination fire engine to Evergreen Emergency Vehicles in the amount of $258,626. The City Council approved the appropriation for the lease of the fire engine in the FY 00-01 Budget. DISCUSSION/ ANALYSIS In the near future the Purchasing Division will solicit sealed bids for the purchase of three dump trucks and the survey truck which will be included in the lease for the fire engine. Once the City Council has awarded the contracts for the dump trucks and survey truck and the equipment is received, the City will pay for the equipment and will be reimbursed pursuant to the lease. The final payment on the fire truck was paid on May 30,2001. The City must, within 60 days of the final payment, declare it's "official intent" to lease within the meaning of Section 1.150-2 of the Treasury Regulations promulgated under Section 150 of the Internal Revenue Code of 1986, as amended. To meet this deadline, staff is recommending that the City Council adopt the attached resolution. FINANCIAL IMPACT The funds to make the lease payment for the fire truck are appropriated in the Fire Department principal and interest accounts numbered 100-6090-6091-2500 and 100-6090-6091-2510. The funds are available for the survey and dump trucks lease payments in the General Fund un -appropriated fund balance account number 100-2970. ENVIRONMENTAL IMPACT None ..Atem #21