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HomeMy WebLinkAboutItem 11b - Purchase of Triple Combination Fire Pumper DATE: August 6, 2019 TO: Honorable Mayor and City Council FROM: Michael Lang, Fire Chief By: Kevin Valentine, Battalion Chief SUBJECT: PURCHASE ORDER WITH PIERCE MANUFACTURING INC. FOR THE PURCHASE OF A TRIPLE COMBINATION FIRE PUMPER IN THE AMOUNT OF $788,649.41 Recommendation: Approve SUMMARY The Fiscal Year 2019-20 Equipment Acquisition Budget provides for the replacement of a fire pumper with an approved budget of $930,000. As part of the City’s Vehicle Replacement Program, it is recommended that the City Council approve a Purchase Order with Pierce Manufacturing Inc. for the purchase of a triple combination fire pumper in the amount of $788,649.41. BACKGROUND Fire pumpers are an essential equipment resource for the protection of the life safety of civilians and firefighters. As such, the Fire Department must maintain both a frontline and reserve (back-up) fire pumper. A “triple combination” fire pumper provides the following key resources to firefighters during a fire incident: transportation to the fire scene; supply of water with which to fight fire; and means to carry their tools, equipment, and hoses. Based on the Citywide Vehicle Replacement Schedule, the operational lifespan of an engine company vehicle such as a fire pumper is 20 years (10 years frontline and 10 years reserve status) at 100,000 miles of use. The FY 2019-20 Equipment Acquisition Budget has listed Asset #80210, a 2006 triple combination fire pumper with over 120,000 miles, as due for vehicle replacement since it has met the mileage criteria. It is also important to note that the current reserve, a 1994 triple combination fire pumper (Asset #60177), has already incurred 25 years of combined front line and reserve service and 122,000 miles of use. As such, this reserve vehicle has surpassed its lifespan under the Citywide Vehicle Replacement Schedule and therefore, will be eliminated from the City’s Fleet inventory. Purchase Order for a Triple Combination Pumper August 6, 2019 Page 2 of 3 Since the 2006 fire pumper has reached its vehicle mileage limit and the 1994 fire pumper would be taken out for surplus, it is vital that a new triple combination fire pumper be purchased for frontline use, with the 2006 fire pumper to be used as a reserve fire apparatus. DISCUSSION In Fiscal Year 2016-17, as part of the Vehicle Replacement Program, the City Council approved a purchase order with Pierce Manufacturing, Inc. (“Pierce”) to purchase a new triple combination fire pumper, which replaced Asset #80209, a 2006 Pierce fire pumper. At that time, Pierce also agreed to sell future apparatus to the City for similar pricing, with adjustments based on the current Consumer Price Index (“CPI”), for a period of seven (7) years. This year, Pierce has agreed to maintain the same 2016 pricing conditions for the purchase of a new triple combination pumper to replace Asset #80210, another 2006 fire pumper that has reached its mileage criteria. Payment Options Similar to last year’s payment structure, Pierce has offered two financing options: Option A is their original proposal cost plus CPI at $814,303.48, with a deposit being paid up front and the balance due upon delivery. Option B would require full payment up-front, but the City would receive a discount of $23,269 and would provide the option to eliminate the performance bond fee. By paying less for the vehicle, the City would also avoid some sales taxes as well. Overall, Option B would provide $25,654.07 in savings over Option A and have a total cost of $788,649.41. The following table delineates the cost summary and savings for each option: Cost Description Amount Option A: Original Proposal with No Discount Fire apparatus with tax & fees $ 812,098.19 Performance bond 2,194.79 Option A Total Proposal 814,303.48 Option B: Prepayment Discount 100% cash prepayment discount (23,269.00) Less tax (2,385.07) Total Optional Discounts (25,654.07) Option B Total Proposal (original minus discounts) 788,649.41 Option B is the recommended financing option for the purchase of the fire pumper. This option will enable the City to save $25,654.07 off the cost of a specialized piece of equipment that meets the City’s specifications. Purchase Order for a Triple Combination Pumper August 6, 2019 Page 3 of 3 Pierce had satisfactorily met the City’s specifications required for re placing and building a new triple combination pumper back, including as recently as 2016. Due to the highly specialized design and workmanship requirement in building and customizing this type of equipment, it is prudent to utilize Pierce for the vehicle replacement of the current 2006 triple combination fire pumper, Asset #80210. Additionally, Pierce is a nationally-recognized company that has been in the business for 100 years. They offer products that have several exclusive safety options that are proven in the fire apparatus field, such as a side rollover protection system and independent front suspension with larger brake rotors. Pierce’s unique front suspension system dramatically decreases the stopping distance of the vehicle by 23 %. Further, the Arcadia Fire Department currently operates six apparatus manufactured by Pierce. ENVIRONMENTAL ANALYSIS This proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with c ertainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT A total of $930,000 has been allocated in the Fiscal Year 2019-20 Equipment Acquisition Budget for the replacement of a fire pumper including costs for installing communication, safety lighting, and a fueling transmitter package. Pierce had offered two (2) financing options with Option A that includes the total original bid cost of $814,303.48; well within the allocated budgeted amount. If the recommended Option B is selected (prepayment discount), for a total cost of $788,649.41, a total savings of $25,654.07 will be realized. This will result in an overall cost that is $141,350.59 (or about 18%) below the budgeted amount for this item. Sufficient funds are available in the Equipment Acquisition Budget for this purchase. RECOMMENDATION It is recommended that the City Council approve a Purchase Order with Pierce Manufacturing Inc. for the purchase of a triple combination fire pumper in the amount of $788,649.41.