TITLE
Recommendation to adopt resolution authorizing City Manager to amend Contract No. 29136 with Seagrave Fire Apparatus, LLC, for the purchase of one (1) new and one (1) previously owned aerial ladder truck per quotes dated September 24, 2007, and October 25, 2007, respectively, on the same terms and conditions afforded to the Village of Ridgefield Park, in an amount not to exceed $1,304,108 including tax, with a 10 percent contingency for additional equipment if necessary and if funds are available. (Districts 2,3)
DISCUSSION
City Council approval is being requested to authorize the City Manager to amend contract # 29136 for the purchase of one (1) new and one (1) previously owned aerial ladder trucks for the Long Beach Fire Department.
The Long Beach Fire Department is currently utilizing one (1) aerial ladder truck that is sixteen (16) years old with a life expectancy of 18 years. The opportunity to purchase this previously owned aerial ladder truck now as a replacement that meets the City's needs will provide the City substantial financial savings of over $308,000 and additional savings are expected with on-going maintenance costs.
The passage of Prop H raised the Oil Tax for the purpose of enhancing public safety needs. The City Council approved the addition of a truck company in the FY 08 budget, which includes a new ladder fire truck and staff. It is the Fire Department's intention to place this new company into service by January 1, 2008. This will increase the number of truck companies in the City to five (5).
The Fire Department (FD) has evaluated the condition of its ladder truck fleet, its back-up units and the most advantageous locations for the front line units based on response times. To this end, the FD proposes to purchase two (2) units at this time from Seagrave, Fire Apparatus, LLC.
One (1) unit has been previously owned, but rarely used, and is ready for immediate delivery. The unit has 2,500 in-service miles, with a life expectancy of 18 years. The unit has been greatly discounted and still carries the original warranties. The primary funding for this unit, at $497,950, will be the capital replacement assets in the Fleet Fund from the current ladder truck. The current ladder truck still has a useful life and another agency is interested in its purchase, so it is anticipated that the proceeds will exceed the typical salvage value. Proceeds from the resale of the existing truck combined with accumulated replacement funding will offset the purchase of the replacement unit. Remaining proceeds will then be placed in the Fleet Fund and used for the outfitting of the newly acquired truck.
The second unit, which is new, will be built to specification and the build time is expected to be 10 - 12 months. The cost of $806,158 will be funded from the FY 07 Oil Tax proceeds, as approved by the City Council.
The City Charter provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
In 2004, the Department of Public Works, Fleet Services Bureau, investigated procurement options and learned that the Village of Ridgefield Park had completed a competitive bid process for aerial ladder trucks and had a purchase order with Seagrave Fire Apparatus, LLC, that met the City's needs. On October 5, 2004 the City Council adopted resolution # C-28461 authorizing the City Manager to enter into an agreement to purchase one (1) aerial ladder truck with the option to purchase additional vehicles while the original vehicle is under warranty. To amend this cooperative purchase agreement will facilitate the timely acquisition of these aerial ladder trucks and provide cost benefits to the City.
Seagrave Fire Apparatus, LLC has agreed to sell one (1) previously owned and one (1) new aerial ladder trucks to the City of Long Beach under the same terms and conditions as are afforded to the Village of Ridgefield Park in an amount not to exceed $1,304,108 including tax, with a 10 percent contingency if necessary and if funds are available. The Matrix Fleet Review Study also supports the use of cooperative purchase agreements and adherence to a long-term replacement plan.
This matter was reviewed by Deputy City Attorney Lori A. Conway on November 6,2007 and Budget Management Officer Victoria Bell on November 7, 2007.
TIMING CONSIDERATIONS
City Council action is requested on November 20, 2007, to ensure the availability of the previously owned truck currently in stock ready for immediate delivery, and that the new truck is built and placed into service in 2008.
FISCAL IMPACT
The cost of this contract, in the amount of $1,304,108 (including tax of $99,390), is included in the Fleet Services Fund (IS 386) in the Department of Public Works (PW). No additional expense or debt will be incurred by the General Fund in acquiring these apparatuses.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO PURCHASE ONE (1) NEW AND ONE (1) PREVIOUSLY OWNED AERIAL LADDER TRUCK THROUGH THE CONTRACT BETWEEN THE VILLAGE OF RIDGEFIELD PARK AND SEAGRAVE FIRE APPARATUS, LLC
Respectfully Submitted,
LORI ANN FARRELL
ACTING DIRECTOR OF FINANCIAL MANAGEMENT
DAVID W. ELLIS
FIRE CHIEF
CHRISTOPHER J. GARNER
ACTING DIRECTOR OF PUBLIC WORKS
|
APPROVED: |
|
|
|
|
|
PATRICK H. WEST |
|
CITY MANAGER |