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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Hanson & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: June 3, 1994 <br />RE: Fire Truck Purchase <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Attached are the two bids received for the new fire truck. At <br />this time, the Fire Department is not prepared to make a <br />recommendation as they are still evaluating the bids relative to <br />their specifications. It is anticipated that another truck <br />committee meeting will take place prior to action by the <br />membership. Their recommendation will then be forwarded to the <br />Council for action at the June 22, 1994 meeting. <br />I have done some analysis on the discounting provision by making <br />payment in full. Based on the Pierce bid, they are offering a <br />discount which equates to a 10.15% interest factor based on a 365 <br />day year for the 200 days stated for delivery. General Safety is <br />offering a discount of between 6.59% and 7.58% depending on the <br />delivery date ranging from 230 down to 200 days. Obviously, a <br />key factor in evaluating these figures is the commitment to the <br />delivery date stated. <br />In either situation, the City would be paying $250,000 towards <br />the purchase of the truck with the Fire Department making up the <br />balance. (This balance would initially be paid by the City with <br />the Fire Department repaying it as has been done with the ladder <br />truck purchase advance. The present balance owing on the ladder <br />truck is $24,550.) <br />This information is being provided to the Council at this time <br />for your information. Should it generate any questions you feel <br />should be addressed prior to the final recommendation on <br />purchase, please advise me at this time. <br />JRH:kpv <br />Enclosures <br />Page 11 <br />