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HomeMy WebLinkAboutItem 11m - Purchase of a New Fire Pumper DATE: July 20, 2021 TO: Honorable Mayor and City Council FROM: Barry R. Spriggs, Fire Chief By: Tom Devlin, Battalion Chief SUBJECT: PURCHASE ORDER WITH PIERCE MANUFACTURING INC. FOR THE PURCHASE OF A FIRE PUMPER IN THE AMOUNT OF $844,451.87 Recommendation: Approve SUMMARY The Fiscal Year 2021-22 Equipment Acquisition Budget provides for the replacement of a fire pumper with an approved budget of $950,000. Asset #60177, a 1994 fire pumper with over 124,000 miles on it, has reached its useful life under the City’s Vehicle Replacement Program and is due for replacement. It is recommended that the City Council approve a purchase order with Pierce Manufacturing Inc. for the purchase a fire pumper in the amount of $844,451.87. BACKGROUND For an effective fire service operation, fire pumpers are an essential 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) pumper in the inventory. A fire pumper provides the following key resources for 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, water pump 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. Under the City’s Vehicle Replacement Schedule, asset #60177, a 1994 fire pumper with over 124,000 miles, is due for replacement since it has met the mileage and age criteria. It is important to note that the older 1992 pumper that was retired two years ago has been held in surplus to utilize its parts to keep the 1994 pumper running for the past few years since new components to support this vehicle are no longer readily available. Upon replacement, both vehicles will be sold at auction if possible. Purchase Order with Pierce Manufacturing for a New Fire Pumper July 20, 2021 Page 2 of 3 The attached “Exhibit A” displays photos of each vehicle: (a) the current 1994 fire pumper (Asset #60177) requiring replacement due to age and mileage criteria; and (b) the proposed new 2021 fire pumper (new vehicle will be identical to the current 2018 fire pumper). It is important to note that the new 2021 fire pumper will include additional safety and more enhanced features such as an updated braking system, a motor that meets current emission standards, a roll over protection system, and additional space for storing equipment. In November 2016, a formal bid was conducted by the City for the purchase of a fire pumper that had reached its vehicle mileage and age limit. Pierce Manufacturing Inc. (“Pierce”) was awarded the bid and the new vehicle has performed well since then. Aside from contracting with a nationally-recognized company that has been delivering exclusive fire safety apparatus for over 100 years, another benefit in awarding Pierce the bid was that they agreed to sell future fire apparatus to the City for a period of seven (7) years. Any pricing adjustment would solely be based on the current Consumer Price Index at the time of purchase of this new fire pumper. DISCUSSION For Fiscal Year 2021-22, Pierce has offered two pricing options for the new pumper: • Option A – initial bid price at $869,381.36 with no discount (this is based on the original 2016 bid cost plus annual CPI increases since then, which is about a 2.5% CPI increase per year). Payment is due upon receipt of the new pumper for this option; or • Option B - discounted bid at $844,451.87 if the City provides a 100% cash prepayment at the time of the order. The City of Arcadia must send payment to Pierce within 15 days of their invoicing to qualify for this discount. This option saves the City $26,849.18 over Option A. A performance bond has been added to this cost as a safety umbrella for the City of Arcadia in the event that the company fails to deliver their products and services, or they go out of business. The following table delineates the cost summary and savings for each option: Cost Description Amount Option A: Original Bid with No Discount Fire apparatus with tax $ 869,370.86 California Tire Fee 10.50 Option A Total Price 869,381.36 Option B: Prepayment Discount 100% cash prepayment discount (24,353.00) Less tax (2,496.18) Purchase Order with Pierce Manufacturing for a New Fire Pumper July 20, 2021 Page 3 of 3 Total Optional Discounts (26,849.18) Total original bid $ 869,381.36 Performance bond 1,919.69 Sub-Total (Option B) 871,301.05 Total optional discounts (26,849.18) Option B Total Price 844,451.87 It is recommended that the City take advantage of the discount being offered by selecting Option B for the purchase of the pumper. This option will enable the City to save $26,849.18 (3% discount). ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT A total of $950,000 has been allocated in the Fiscal Year 2021-22 Equipment Acquisition Budget for the replacement of a fire pumper. The original bid of $869,381.36 is within the budgeted amount. If the recommended Option B is selected, an additional savings of $26,849.18 will be realized. The proposed Option B will also allow the Fire Department to complete the purchase and installation of required communication systems, computers and needed equipment while keeping the entire project under budget. RECOMMENDATION It is recommended that the City Council determine that this action does not constitute a project and is therefore, exempt under, the California Environmental Quality Act (“CEQA”); and approve a Purchase Order with Pierce Manufacturing Inc. for the purchase a fire pumper in the amount of $844,451.87. Attachment: Exhibit “A” – Fire Engine Comparison Exhibit “A” A. 1994 Pierce Fire Pumper (due for replacement) B. Proposed 2021 Pierce Fire Pumper (this new vehicle will be identical to the 2018 fire pumper, as shown below) The proposed pumper will include additional safety and more enhanced features such as an updated braking system, a motor that meets current emission standards, a roll-over protection system, and additional space for storing equipment.