Present, Discuss and Consider Action on a Resolution to Authorize an Interfund Loan from the Infrastructure Investment Fund to the Airport Fund for the Purchase of an Airport Rescue Fire-Fighting Apparatus, Under The Town’s Inter-local Agreement with the Texas Local Government Purchasing Cooperative Known as the Houston Galveston Area Council (HGAC) in an Amount Not to Exceed $700,000.

The Houston Galveston Area Council (HGAC) issues request for bids for vehicles every year and receives extremely competitive prices because of the large volume of purchases the council generates. In the past, prices received from HGAC have been up to 25% below the manufacturer’s suggested prices.

Town Staff desires to purchase a 2019 Rosenbauer Panther Aircraft Rescue Firefighting Apparatus that will replace a 2001 Oshkosh T-1500 Aircraft Rescue Firefighting Apparatus which has reached the end of its useful life. Town Staff determined that there are funds available to complete the purchase in the Infrastructure Investment Fund (IIF). Pursuant to Town finance policy in the Code of Ordinances, the IIF may be appropriated to support pay-as-you-go capital projects or significant non-routine capital expenditures of not less than $500,000.

The Capital Equipment Replacement Fund did not account for this vehicle's replacement. The plan discussed during the budget process was to lease a new, replacement vehicle. Unfortunately, the lease agreement requires the purchase of the vehicle at the end of the lease. Therefore, it is more cost effective to purchase the vehicle outright.    

Upon authorization by the City Council of this interfund loan from the IIF to the Airport Fund through the adoption of the resolution, Town staff can purchase the new vehicle. The Airport Fund will pay back the IIF in five (5) years with interest (estimated at 2.75%), in accordance with the following schedule: