Resolution 15958CITY OF ALAMEDA RESOLUTION NO.15958
AUTHORIZING THE INTERIM CITY MANAGER, OR DESIGNEE, TO
NEGOTIATE AND EXECUTE A LEASE -PURCHASE AGREEMENT
WITH MOOSE BOATS, LLC. THROUGH THE UNITED STATES
GENERAL SERVICES ADMINISTRATION PROCUREMENT
PROGRAM; AND A LEASE -PURCHASE WITH JP MORGAN CHASE
BANK, NA FOR THE ACQUISITION OF ONE M2-38 MOOSE BOAT
CATAMARAN WATERJET FIRE RESCUE BOAT IN AN AMOUNT NOT
TO EXCEED $1,500,000
WHEREAS, the City of Alameda, a municipal corporation's ("City") fire suppression
and rescue boat has exceeded its maximum useful life as established by the National Fire
Protection Association replacement guideline because it is has been service 8 years and
has 1,100 operating hours, and is thus due for replacement; and
WHEREAS, the City's purchase of a new fire suppression and rescue boat will
allow for a reliable platform for critical marine response capabilities to the community,
improve the Fire Department's ("Department") floating platform for dive rescue operations
that reduce the reflex time to deploy a diver, and increase emergency water supply
pumping capabilities to sustain firefighting needs in the event the island loses water
supply post -earthquake; and
WHEREAS, the Department recommends purchasing the new fire suppression
and rescue boat through the United States General Services Administration (GSA)
cooperative procurement program; and
WHEREAS, GSA is a nationwide, government -to -government procurement
service that procures products and services, with all available vendors having been
awarded contracts through a public competitive procurement process compliant with state
statutes; and
WHEREAS, Moose Boats LLC has provided the City with a quote for the
acquisition of the new fire suppression and rescue boat, based on GSA pricing and
discount for upfront payment, for $ 1,202,347.24 with financing obtained through lease -
purchase agreement with JPMorgan Chase Bank, N.A. in an amount not to exceed
$1,500,000. (Principal Amount); and
WHEREAS, pursuant to applicable law, the governing body of the City ("Governing
Body") is authorized to acquire, dispose of and encumber real and personal property,
including, without limitation, rights and interests in property, leases and easements
necessary to the functions or operations of the Lessee; and
WHEREAS, the Governing Body hereby finds and determines that the execution
of one or more lease -purchase agreements ("Equipment Leases") in the principal amount
not exceeding the amount stated above ("Principal Amount") for the purpose of acquiring
the property generally described above ("Property") and to be described more specifically
in the Equipment Leases is appropriate and necessary to the functions and operations of
the City as Lessee; and
WHEREAS, JPMorgan Chase Bank, N.A. ("Lessor") is expected to act as the
lessor under the Equipment Leases; and
WHEREAS, the City as Lessee may pay certain capital expenditures in connection
with the Property prior to its receipt of proceeds of the Equipment Leases ("Lease
Purchase Proceeds") for such expenditures and such expenditures are not expected to
exceed the Principal Amount; and
WHEREAS, the United States Treasury Department regulations do not allow the
proceeds of a tax-exempt borrowing to be spent on working capital and the Lessee shall
hereby declare its official intent to be reimbursed for any capital expenditures for Property
from the Lease Purchase Proceeds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Alameda
that:
SECTION 1. The foregoing recitals are true and correct, and, together with information
provided by City staff and the public, if any, form the basis for the approvals, findings,
resolutions, and determinations set forth below.
SECTION 2. The City Council approves, authorizes, and directs the Interim City Manager,
or designee, to negotiate and execute all documents necessary to finalize (1)) an
Agreement with Moose Boats, LLC. through the GSA purchasing cooperative and (2) a
financing agreement with JPMorgan Chase Bank, NA for the acquisition of one M2-38
Moose Boat Catamaran Waterjet Fire Rescue Boat in an amount not to exceed
$1,500,000.
SECTION 3. The Interim City Manager ("Authorized Representative") acting on behalf of
the City as Lessee is hereby authorized to negotiate, enter into, execute, and deliver one
or more Equipment Leases which shall be available for public inspection at the office of
the City as Lessee. The Authorized Representative acting on behalf of the Lessee is
hereby authorized to negotiate, enter into, execute, and deliver such other documents
relating to the Equipment Lease (including, but not limited to, escrow agreements) as the
Authorized Representative deems necessary and appropriate. All other related contracts
and agreements necessary and incidental to the Equipment Leases are hereby
authorized.
SECTION 4. By a written instrument signed by any Authorized Representative, said
Authorized Representative may designate specifically identified officers or employees of
the City as Lessee to execute and deliver agreements and documents relating to the
Equipment Leases on behalf of the City as Lessee.
SECTION 5. The aggregate original principal amount of the Equipment Leases shall not
exceed the Principal Amount and shall bear interest as set forth in the Equipment Leases
and the Equipment Leases shall contain such options to purchase by the City as Lessee
as set forth therein.
SECTION 6. The City Lessee's obligations under the Equipment Leases shall be subject
to annual appropriation or renewal by the City's Governing Body as set forth in each
Equipment Lease and the Lessee's obligations under the Equipment Leases shall not
constitute a general obligations of the Lessee or indebtedness under the Constitution or
laws of the State of California.
SECTION 7. The Governing Body of the City as Lessee anticipates that the City as
Lessee may pay certain capital expenditures in connection with the Property prior to the
receipt of the Lease Purchase Proceeds for the Property. The City Council as Governing
Body of the City as Lessee hereby declares the Lessee's official intent to use the Lease
Purchase Proceeds to reimburse itself for Property expenditures. This section of the
Resolution is adopted by the Governing Body of Lessee for the purpose of establishing
compliance with the requirements of Section 1.150-2 of Treasury Regulations. This
section of the Resolution does not bind the Lessee to make any expenditure, incur any
indebtedness, or proceed with the purchase of the Property.
SECTION 8. This Resolution shall take effect immediately upon its adoption and approval.
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly
adopted and passed by the Council of the City of Alameda in a regular meeting assembled
on the 6th day of September 2022, by the following vote to wit:
AYES: Councilmembers Daysog, Herrera Spencer, Knox White,
Vella and Mayor Ezzy Ashcraft — 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the seal of said City
this 7t" day of September 2022.
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
Yibin Shen, City Attorney
City of Alameda