Title
Recommendation to Authorize the City Manager to Negotiate and Execute an Agreement for the Purchase of One Pierce Fire Engine in an Amount Not to Exceed $921,050. (Fire 3200)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Authorize the City Manager to Negotiate and Execute an Agreement for the Purchase of One Pierce Fire Engine in an Amount Not to Exceed $921,050.
BACKGROUND
The Fire Department is responsible for replacing Fire Apparatus, vehicles and equipment according to the City’s Vehicle (Fleet) and Equipment Replacement Policy. The replacement policy is based on the City of Alameda’s Fleet Replacement Criteria, which considers the useful life of vehicles and equipment in terms of age, mileage (or hours), and usage. Vehicles and equipment scheduled for replacement are also reviewed and analyzed for safety history and operating performance to determine if a vehicle or equipment may be replaced later. Vehicles and equipment are also reviewed to determine if the minimum use guidelines are met. The Fire Department developed a 10 year apparatus/vehicle replacement plan based on the City’s replacement program criteria.
On June 6, 2017, the City Council adopted the Fiscal Year (FY) 2017-18 and 2018-19 budget. This included the estimated expenditure for purchasing one fire engine during FY 2017-18.
DISCUSSION
Staff is recommending that one fire engine be replaced. In accordance with the City’s Vehicle Replacement Policy, the useful life of a fire engine is 12 years front line and 5 years reserve. The current front line Fire Engine 3 is 10 years old. It will replace the current reserve Fire Engine 503, which is 26 years old, nine years beyond its maximum life.
The Fire Department proposes purchasing the fire engine through the Pierce contract with the Houston-Galveston Area Council (HGAC). HGAC’s procurement program is known as HGACBuy. It is a nationwide, government-to-government procurement service that has procured products and services for over 30 years. All contracts available to members of HGACBuy have been awarded by virtue of a public competitive procurement process compliant with state statutes.
Selection of Pierce Manufacturing for the fire engine will continue the standardization of the vehicles being purchased for public safety and make it easier for fleet maintenance to maintain these vehicles in the future.
The Alameda Municipal Code, Subsection 2-61-7, Joint Purchases with Public Agencies, provides authority for the City to use another government agency’s competitive bidding process to purchase materials, supplies, equipment, vehicles, and apparatus, “provided the purchase is the result of competitive bidding or proposal and is made in compliance with the competitive bid or proposal requirements of any participating agency or organization in a manner that is consistent with law.” In order to assure a cost-effective purchase, the Fire Department proposes to “piggy-back” onto the competitively bid Pierce contract with HGAC. Staff has obtained a quote for the fire engine under the Pierce contract with HGAC in the amount of $878,702. This quote includes outfitting the fire engine with one Lifepack Heart Monitor and one LUCAS chest compression device, medical equipment that the City is now responsible for providing due to recent contract changes with Alameda County. Quotes for the remaining accessories were obtained from several vendors in the amount of $42,348.
FINANCIAL IMPACT
The funds for the purchase of the fire engine are budgeted for in the Fiscal Year 2017-18 Vehicle Replacement Fund (Fund 701).
In the proposal from Pierce Manufacturing Inc. (Pierce) there are two options for payment:
Option “A” - Full payment at contract signing includes a $27,196 discount on the fire engine. The purchase price will be $878,702 plus $42,348 in additional equipment, for a total purchase price of $921,050, which is within the City Council allocated amount of $922,000.
Option “B” - Full payment at time of delivery (approximately 1 year after contract signing). The discounts listed under Option “A” would not apply and the purchase price will be $908,414 plus $42,348 in additional equipment, for a total purchase price of $950,762. This will be $28,762 in excess of the $922,000 allocated by the City Council.
Staff recommends Option “A” payment for the fire engine. The Fire Department staff realizes prepayment is not a standard practice for the City; however, staff believes the $27,196 savings to be realized from the applied discount outweighs the minimal prepayment risk.
Pierce is a reputable company founded in 1913 and is well known for providing a high quality product. The Fire Department has purchased all of its fire apparatus from Pierce since 1991. The City has been assured that the apparatus will meet the City’s expectations. This will be facilitated by the department’s inspection of the apparatus during construction, as well as the final customer inspection/acceptance process at the time of delivery.
The proposal from Pierce must be accepted no later than November 15, 2017. If accepted after that date, the City will not receive the discount and may be subject to potential future manufacturer’s price increases, which would likely exceed the amount allocated by City Council for the purchase of the fire engine.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is authorized pursuant to Alameda Municipal Code Subsection 2-61.7 “Joint Purchases with Public Agencies”, Alameda Administrative Rule 5, and Alameda Municipal Code Section 2-62.2, which exempts contracts with any single or source supplier for supplies, material or equipment from the City's local purchasing policy.
ENVIRONMENTAL REVIEW
This action is not a project for the purposes of the California Environmental Quality Act (CEQA) under CEQA Guidelines section 10561(b)(3) as there is no possibility that this action may have a significant effect on the environment.
RECOMMENDATION
Authorize the City Manager to negotiate and execute an agreement for the purchase of one Pierce Fire Engine in an amount not to exceed $921,050.
Respectfully submitted,
Ricci Zombeck, Interim Fire Chief
By,
Darci Vogel, Fire Admin Supervisor
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Fire Engine Quote Package