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Home My WebLink AboutFW: Fire trucks Mike Plane From:Gretchen Scott Sent:Friday, December 1, 2023 15:44 To:Mitchell Brooks Subject:FW: Fire trucks From: Breanna Howard <bhoward@tfid.org> Sent: Friday, December 1, 2023 11:36 AM To: Travis Rothweiler <trothweiler@tfid.org>; Les Kenworthy <LKenworthy@tfid.org>; Gretchen Scott <Gscott@tfid.org> Subject: FW: Fire trucks Interesting information from Jerome. For reference, we used Zions as well, they financed 100% and our interest rate was 4.43% just 6 months ago. Our purchase price was $979k (I’m not sure how relatable the engine that Jerome is purchasing is to ours; maybe Chief could speak on this). From: Ross Hyatt <rhyatt@cityofjerome.org> Sent: Tuesday, November 14, 2023 8:49 AM To: Breanna Howard <bhoward@tfid.org> Subject: RE: Fire trucks \[EXTERNAL SENDER\] Good morning Breanna, Here’s where we ended up on our quotes for our aerial fire truck. Although not the lowest interest rate (the Community Leasing Partners rate was lower but due to an escrow interest earnings credit that would also apply to the other financings), the Council ultimately felt like Zions having the next lowest rate (5.31%), being local, and staff’s recommendation, was the right choice. DL Evans would only finance 80% of the total cost which was a bit odd. It’s interesting we used Zions for the refinancing of our old fire truck and you’ve used them as well recently. They’re definitely keeping competitive! Ross Bank Interest Fees Principal Financed DL Evans* Quotes Assumes 80% loan 5.64% fixed, with depository account .50% loan fee ($8,160.39) Loan amount 80% - $1,434,586 5.99% fixed, no depository account (need additional $197k down) $1,500 Corporate Trust Zions Public Finance 5.31% fixed Fee $1,632,077 4.84% None (In Rate) $1,573,822 Community Leasing Partners (Community First National Bank) Farmers Bank 6.00% fixed $35 $1,632,077 $2,500 Loan origination First Federal 6.49% fixed fee $1,632,077 1 Estimated Escrow Interest Bank Interest Earnings Total Financing Costs DL Evans* Quotes Assumes 80% loan $497,421 $76,508 $2,052,991 Zions Public Finance $509,267 $87,040 $2,054,304 $519,649 $58,255 (Credit Upfront) $2,093,471 Community Leasing Partners (Community First National Bank) Farmers Bank $605,992 $87,040 $2,151,029 First Federal $661,339 $87,040 $2,206,376 From: Breanna Howard <bhoward@tfid.org> Sent: Wednesday, October 11, 2023 12:47 PM To: Ross Hyatt <rhyatt@cityofjerome.org> Subject: RE: Fire trucks Yes – we are purchasing an apparatus that won’t be delivered for 2 years. I just talked with Chief this morning and he said Pierce is 3 years out now (so it’s been extended since we’ve purchased). We struggled significantly with the financing because we are not legally able to bind Council to future years – in the end, we chose to proceed with the non appropriations clause because we don’t have a choice. We conferred with Boise who has done this as well because of our hesitation. At this point, we felt like our hands were tied and were glad that we weren’t the first in Idaho to execute the agreement. But we had a lot of conversations with Boise, our legal department and Pierce before we felt comfortable enough to move forward. From: Ross Hyatt <rhyatt@cityofjerome.org> Sent: Tuesday, October 10, 2023 2:58 PM To: Breanna Howard <bhoward@tfid.org> Subject: RE: Fire trucks \[EXTERNAL SENDER\] Got another question for you – our estimated times for the building of the truck is sometime in 2024 with the delivery of it in Spring of 2025. Did you have similar delays in getting the truck(s) built and delivered and did it affect your financing being a year or two early? It just seem odd to me that we’d be this early in getting quoted terms given the market could change by then as well as making a first payment before we actually received the truck. Thanks again for your help! From: Breanna Howard <bhoward@tfid.org> Sent: Tuesday, October 10, 2023 10:50 AM To: Ross Hyatt <rhyatt@cityofjerome.org> Subject: RE: Fire trucks Good morning! In the past I worked with Christian Anderson, but he transitioned to Shaun Kelley. I haven’t personally met Shaun, but he was able to wrap everything up as I needed it. His email contact is below: Shaun Kelley | Vice President, Relationship Manager Zions Public Finance 2 800 W Main Street Suite 700 | Boise, ID 83702 Office: 208-501-7575 | Shaun.Kelley@zionsbancorp.com | zionspf.com From: Ross Hyatt <rhyatt@cityofjerome.org> Sent: Tuesday, October 10, 2023 9:02 AM To: Breanna Howard <bhoward@tfid.org> Subject: RE: Fire trucks \[EXTERNAL SENDER\] Can you share the contact you used with Zions Bank for your equipment financings? Thanks again! From: Breanna Howard <bhoward@tfid.org> Sent: Thursday, October 5, 2023 8:57 AM To: Ross Hyatt <rhyatt@cityofjerome.org> Subject: RE: Fire trucks Great. Thanks! From: Ross Hyatt <rhyatt@cityofjerome.org> Sent: Thursday, October 5, 2023 8:50 AM To: Breanna Howard <bhoward@tfid.org> Subject: RE: Fire trucks \[EXTERNAL SENDER\] Yes I’ll try to remember - don’t mind sharing at all when we get it completed. Coincidently our fire truck financing I mentioned was with Zions as well and I do remember them being very competitive just like you’re mentioning. The interest rate we got with them at the time was 2.16% and I know their fees were very competitive just like you’ve said. From: Breanna Howard <bhoward@tfid.org> Sent: Thursday, October 5, 2023 8:28 AM To: Ross Hyatt <rhyatt@cityofjerome.org> Subject: RE: Fire trucks Good luck! Zions hit it out of the ballpark for us and now I consider them a great and fair partner going forward. Our current interest rate on the last fire truck is 4.43% - would you mind sharing (if you remember), what yours ends up being? I love to compare and see how far interest rates have increased. I would imagine it would still be in the 5% mark, but curious if it jumps to even 6% given the current market. It was interesting because when I started the search, you can see the rate was under 2%. . . and thinking of the opportunity cost of waiting is frustrating! From: Ross Hyatt <rhyatt@cityofjerome.org> Sent: Thursday, October 5, 2023 8:20 AM To: Breanna Howard <bhoward@tfid.org> Subject: RE: Fire trucks \[EXTERNAL SENDER\] 3 Hi Breanna, Yes this is great! We took a similar approach as this about ten years ago for a fire truck, glad to see you went this route as well as it gives me a greater confidence level. Thanks for sharing – fingers crossed we can get some reasonable terms. Ross From: Breanna Howard <bhoward@tfid.org> Sent: Wednesday, October 4, 2023 4:35 PM To: Ross Hyatt <rhyatt@cityofjerome.org> Subject: RE: Fire trucks Good afternoon, Ross. We did not go out to bid or use an RFP. In early 2022 I performed a comparison of all the banks located in Twin Falls to see who could accommodate the non-appropriation clause and had the least fees associated with the financing. I spoke with DL Evans, First Fed, US Bank, WF, ICCU and Zions. The information I summarized is below (keep in mind it is old now because of the crazy interest environment that we have seen). Zions was a clear win and one that we have used multiple times. Does this help? Breanna Howard, CPA Chief Financial Officer City of Twin Falls P.O. Box 1907 Twin Falls, ID 83303 Phone: (208) 735-7285 Cell (208) 749-0730 4 From: Ross Hyatt <rhyatt@cityofjerome.org> Sent: Friday, September 29, 2023 8:57 AM To: Breanna Howard <bhoward@tfid.org> Subject: FW: Fire trucks \[EXTERNAL SENDER\] Hi Breanna, Our fire chief was in contact with Chief Kenworthy about utilizing a cooperative purchasing program for a new ladder truck for the City of Jerome. When the City of Twin Falls went through this process can you tell me for the lease- purchase agreement for your financing if you went out to bid and if you did a request for proposals if you did? If so, would you mind sharing the what your request for proposal document looks like? Thanks, Ross Ross Hyatt Finance Director City of Jerome From: Mike A. Harrison <maharrison@cityofjerome.org> Sent: Thursday, September 14, 2023 3:40 PM To: Ross Hyatt <rhyatt@cityofjerome.org> Subject: FW: Fire trucks Hello again! Does any of this help? From: Les Kenworthy <LKenworthy@tfid.org> Sent: Thursday, September 14, 2023 3:34 PM To: Mike A. Harrison <maharrison@cityofjerome.org> Subject: RE: Fire trucks Mike, No we used Cooperative Purchasing Program with HGAC. Please see the attachments. Feel free to call if you have more questions. Les Les Kenworthy Fire Chief Twin Falls Fire Department lkenworthy@tfid.org Bus (208) 735-7231 Cell (208) 539-5568 Fax (208) 733-3146 Visit on the Web at www.tfid.org, or Facebook at TFFD 5 All e-mail messages sent to or received by the City of Twin Falls e-mail accounts are subject to the Idaho law regarding both release and retention and may be released upon request, regardless of any claim of confidentiality or privilege asserted by an external party, unless exempt from disclosure by law. From: Mike A. Harrison <maharrison@cityofjerome.org> Sent: Thursday, September 14, 2023 3:27 PM To: Les Kenworthy <LKenworthy@tfid.org> Subject: Fire trucks \[EXTERNAL SENDER\] Good afternoon, With your recent engine purchases were you required to go out for bids or how did you do it? Mike Harrison, Fire Chief City of Jerome Fire Department 110 W. Yakima Ave., Jerome, Idaho 83338 Cell 208-749-3952 6