TITLE
Recommendation to adopt attached resolution authorizing City Manager to execute a contract with Seagrave Fire Apparatus, LLC, for the purchase of ten fire pumper trucks on the same terms and conditions as are afforded to the Mount Joy Fire Department, in an amount not to exceed $3,619,090. (Citywide)
DISCUSSION
City Council approval is being requested to enter into a contract for the purchase of 10 fire pumper trucks over two fiscal years.
As part of the City's multi-year vehicle replacement plan, the Public Works Department, Fleet Services Bureau, is requesting to purchase seven replacement fire pumper trucks in Fiscal Year 2005 (FY 05) and three in FY 06. The new trucks will replace 10 fire pumper trucks, ranging in age from 17 to 20 years old.
The recommended useful life of front line units by the National Fire Protection Association (NFPA), the Fire Services Review and the Fleet Services Study is 16 years. Purchase of five of the requested pumpers had been deferred in FY 03 and FY 04 awaiting the outcome of the Fire Services and Fleet Services studies. Both studies are now complete and recommend that the City adhere to a long-term replacement schedule to reduce maintenance costs and apparatus downtime.
Apparatus life is described as front line, spare, and recruit (academy training). The pumpers assigned to the stations are considered front line. Spares, or reserves, are older units that are maintained in order to temporarily replace front line units in the shop for service, repair, and preventative maintenance or while committed to strike team deployments or special events such as the Grand Prix. Frequently, there are no spare units available as they are all either in for repair or backfilling for front line units.
Upon replacement, all front line units will have enclosed cabs. NFPA has determined that the open cab is unsafe for firefighters. There have been numerous fatalities across the country aggravated by the open cab design. No open cab engines are allowed on strike team deployments due to safety factors including burnover risk.
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. The Department of Public Works, Fleet Services Bureau, investigated procurement options and learned that the Mount Joy Fire Department in Pennsylvania had completed a competitive bid process for fire pumper trucks and has a purchase order with Seagrave Fire Apparatus LLC that meets the City's needs. This cooperative purchase agreement will facilitate the timely acquisition of the trucks and provide cost benefits to the City. The Fire Services Review and the Fleet Services Study also support the use of cooperative purchase agreements.
Seagrave Fire Apparatus LLC has agreed to sell seven fire pumper trucks to the City of Long Beach in FY 05 and three in FY 06 under the same terms and conditions as are afforded to the Mount Joy Fire Department, for a total amount not to exceed $3,619,090. The City has opted to take advantage of the multi-unit discount which saves approximately $300,000 for the 10 units than if they were purchased individually. The agreement provides the option to purchase additional units based on future needs and funding availability.
It is expected that the purchase will be partially financed and a Request for Proposals will be issued for the financing. This financing mechanism for large vehicles was recommended in the Fleet Study. The Department of Financial Management will proceed with the lease-financing process and return to City Council for approval.
This matter was reviewed by Senior Deputy City Attorney Donna F. Gwin on March 25, 2005 and by Budget Officer David Wodynski on April 13, 2005.
TIMING CONSIDERATIONS
City Council action is requested at the April 19, 2005 City Council meeting to avoid a scheduled price increase of 4 percent (or approximately $145,000) after May 1, 2005 and to ensure timely construction of the units.
FISCAL IMPACT
The Fleet Fund has annually collected an amount for replacement of these units that will be used towards the purchase. Approximately $1.75 million of this purchase will be financed over a 10-year period. The debt service amount will be approximately the same as the Fire Department is currently charged annually for capital recovery and repair costs. Therefore, there will be no additional burden placed on the General Fund.
Upon replacement, units will be reassigned and the 10 most overaged and costly will be sold. However, because of their condition, sale revenue is only expected to be approximately $50,000, which will be deposited in the Fleet Fund and applied toward the first lease-payment. Attachment A lists the front line units that will be replaced and the 10 that will be offered for sale. The City will self-accrue the sales tax on the purchase to maximize the sales tax revenue returned to the City.
The expected FY 05 lease payment of $35,000 is budgeted in the Fleet Services Fund (IS 386) and the Public Works Department (PW). The estimated annual debt service of $200,000 will be included in the proposed FY 06 Fire Department (FD) budget in the General Fund (GP).
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
CHRISTINE F. ANDERSEN
DIRECTOR OF PUBLIC WORKS
MICHAEL A. KILLEBREW
DIRECTOR OF FINANCIAL MANAGEMENT