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.