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.
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