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Case Study: Lake Valley Fire District- Equipment Financing


Lake Valley Fire Protection District (the "District") recently financed a new Rosenbauer 78' Viper Aerial Custom Commander Chassis. The transaction was completed at a low-interest rate and leveraged the benefits of cooperative financing through California Municipal Public Financing Authority ("CalMuni PFA") in order to reduce procurement costs. CalMuni PFA offers a wide range of competitively procured products, equipment, and service opportunities, enabling participating local government agencies to leverage the benefits of cooperative financing in order to reduce procurement costs.


Research and Bid Process

As part of the research process, staff, with the assistance of Bond Counsel and Municipal Advisor, researched options to procure the trucks through municipal contracting joint power authorities rather than developing and issuing a detailed specification and bid package. Staff carefully researched Equipment Lease-Purchase Options and vendors for financing the purchase of the truck. Based on this research, staff was able to determine that the best value to the District was to piggy back on awarded contracts for fire trucks through CalMuni PFA, a municipal contracting agency serving local government agencies in California. Utilizing the joint powers authority of CalMuni PFA allows for a lower interest rate in comparison to vendor financing.


Transaction Highlights

Weist Law as counsel to CalMuni PFA was able to secure a cost-effective 7-year installment sale financing arrangement at 1.88% interest rate. The installment loan purchase agreement allows the district to purchase the fire engine in full when the funds are readily available. The transaction resulted in significant cash savings to the District.



For a downloadable version of this Case Study, click here. If you are interested in learning more about this, or any other transaction completed by Weist Law, contact us at https://www.weistlaw.com.

 

The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact a designated Weist Law representative. This material may be considered advertising under certain rules of professional conduct.


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