Title
Recommendation to Authorize the Purchase of One Pierce Manufacturing, Inc. Enforcer 1500 GPM Pumper/Engine from Golden State Fire Apparatus in an Amount Not-to-Exceed $1,328,578; and
Adoption of Resolution Amending the Fiscal Year 2024-25 Budget by Transferring $732,577 of Public Safety Development Impact Fee (Fund 308) Fund Balance to the Vehicle Replacement Fund (Fund 601) and Increasing the Fiscal Year 2024-25 Vehicle Replacement Fund Expenditure Budget by $1,328,578. (Public Works)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
One fire engine is approaching the end of its frontline service life expectancy of 12 years. Due to supply challenges and increased demand for manufacturing, the lead time for delivery of new fire apparatus is 45-48 months. Therefore, if a new engine is ordered now, the existing engine will remain in service for three years beyond the frontline life expectancy of the apparatus. Additionally, pricing for the apparatus increases at the end of May 2025. In the Vehicle Replacement Fund, $1,155,064 has accrued for the fire engine replacement. The additional funding required for the total purchase cost is proposed to be allocated from the Public Safety Development Impact Fee Fund (Fund 308). Staff recommends and seeks approval to purchase one replacement Pierce Manufacturing, Inc. Enforcer 1500 GPM Pumper from Golden State Fire Apparatus in an amount not-to-exceed $1,328,578. Pierce was awarded Sourcewell Contract #113021-OKC-1. Sourcewell is a cooperative purchasing agency in which the City of Alameda (City) participates. The purchase requires two actions from City Council: authorization of the purchase from Golden State Fire Apparatus and adoption of a resolution to amend the budget to transfer funds from the Public Safety Development Impact Fee to the Vehicle Replacement Fund and thereby increase the expenditure budget in the Fleet Replacement Fund (601) for Fiscal Year (FY) 2024-25 by $1,328,578.
BACKGROUND
The Alameda Fire Department (AFD) and Fleet Services are responsible for replacing fire apparatuses, vehicles, and equipment in accordance with Administrative Policy 48, the City's Vehicle and Equipment Replacement Policy. This replacement policy is based on the City 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 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. One fire engine, AFD-8, is approaching its twelve-year frontline service life for this type of fire apparatus. AFD-8 was purchased in 2015. A fire engine is moved to reserve status for an additional five (5) years when the replacement apparatus is placed in service. Due to supply chain challenges and increased demand for manufacturing, the lead time for delivering a new fire apparatus is 45-48 months. AFD-8 will have been in frontline service for 14 years if the replacement engine is ordered now and placed in service in 48 months.
Prior to FY 2020-21, fire apparatuses were not depositing an annual depreciation amount into the Vehicle Replacement Fund. Historically, fire apparatuses were leased and the City was only paying the lease payment and not the depreciation amount into the replacement fund. Starting in FY 2020-21, all apparatuses now pay depreciation into the fund; however, there is a funding gap for the years during which deposits were not made.
In accordance with the City of Alameda’s Purchasing Policy, vehicles may be purchased by piggybacking on another agency’s purchase agreement or through cooperative purchasing. An award of vehicle purchases to a single vendor made through either piggybacking or cooperative purchasing in excess of a cumulative total of $75,000 in any given fiscal year requires the prior approval of City Council.
DISCUSSION
Pierce Manufacturing, Inc. (Pierce) is a reputable company founded in 1913 and is well known for providing a high-quality product. The City purchased all of its fire apparatuses from Pierce since 1991. Peirce holds a Sourcewell Contract #113021-OKC-1. Sourcewell is a cooperative purchasing agency that solicits and awards contracts through a public competitive procurement process compliant with state statutes. The City is a participating member of Sourcewell and is therefore able to utilize pricing in the Peirce-Sourcewell contract. Golden State Fire Apparatus is the Northern California dealer for Pierce Manufacturing, Inc. Staff recommends the purchase of one replacement fire engine from Golden State Fire Apparatus.
AFD-8 has deposited $596,000 into the Vehicle Replacement Fund. Staff recommends using available fund balance in the Public Safety Development Impact Fee Fund (Fund 308) for the additional funding needed to make the purchase. Use of the Public Safety Development Impact Fee funds allow the truck to be purchased now, which avoids an increase in cost from inflation in later years and given the extremely long production timelines, buying now limits the duration the existing unit will exceed its front-line in-service date, in accordance with Administrative Policy 48, the City’s fleet replacement policy.
Golden State Fire Apparatus offers a discount for full payment at contract signing that is credited to the final cost of the engine. This credit, if payment for the engine is paid in full is $196,549, for a total savings of $217,678 when sales tax savings are included. Golden State Fire Apparatus issues a performance bond as part of the purchase to protect the upfront payment. The total not-to-exceed amount for the new fire engine, with upfront payment, is $1,328,578.
Regarding electrifying the fleet, electric fire apparatuses have recently been introduced to the fire service as a replacement option. They are priced at double the cost of a traditional engine due to this being new technology and limited volume in the fire industry. Electric fire apparatuses also require a significant upgrade to firehouse infrastructure that is estimated at $150,000 to $400,000 per station, depending on the existing infrastructure, duty cycle of the pumper, existing power grid capability, and charging speed to maintain the pumper duty cycle. This technology is new to the fire service and continues to be tested and modified to meet the demands of the variable situations in which these apparatuses must operate. Due to the increased cost and concerns with this evolving design, the recommendation is not to purchase an electric fire engine with this procurement. The recommended Pierce Manufacturing, Inc. Enforcer 1500 GPM Pumpers will be equipped with the most stringent Clean Diesel technology. It complies with the US Environmental Protection Agency 2027 emission standards for heavy-duty engines and vehicles.
ALTERNATIVES
• Approve the purchase of one Pierce Manufacturing, Inc. Enforcer 1500 GPM engine, and associated budget resolution, to replace the existing fire engine.
• Delay the purchase of a new fire engine. This will likely increase downtime associated with costly repairs and increased maintenance on the existing unit. Fire Department services may be adversely affected. Also, pricing for new fire engines increases in May 2025 so purchase at this time creates cost savings to the City.
FINANCIAL IMPACT
The purchase price of the replacement engine is $1,328,578. $596,000 has accrued in the Vehicle Replacement Fund for this engine. The remaining $732,577 needed to make the purchase is proposed to be funded from the available balance in the Public Safety Development Impact Fund (Fund 308, ORG 30800001). The budget resolution transfers that fund balance to the Vehicle Replacement Fund and increases the FY 2024-25 expenditure budget to enable the purchase now, thereby avoiding potential cost increases. There is no additional impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. This action supports the City Strategic Plan Priority to Enhance Community Safety and Services as well as the Priority to Practice Fiscally Responsible, Equitable and Inclusive Governance.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
The Fleet Replacement Policy is consistent with the City’s recently adopted Climate Action and Resiliency Plan and emphasizes greenhouse gas emission reductions. The revised policy includes a focus on right-sizing the City fleet, the purchase of electric vehicles when feasible, and lowering the fleet’s greenhouse gas emissions through acquisition of low emission vehicles.
This replacement vehicle will be equipped with “Clean Diesel Technology” and will meet or exceed all current state and federal emission requirements. This “Clean Diesel” vehicle purchase confirms the City’s commitment to a green fleet. The new vehicle is expected to reduce carbon dioxide and diesel particulate matter emissions by nearly 50% compared to the vehicle it replaces.
RECOMMENDATION
Authorize the purchase of one Pierce Manufacturing, Inc. Enforcer 1500 GPM Pumpers/Engines from Golden State Fire Apparatus in an amount not-to-exceed $1,328,578; and
Adopt a resolution amending the fiscal year 2024-25 Budget by transferring $732,577 of Public Safety Development Impact Fee (Fund 308) fund balance to the Vehicle Replacement Fund (Fund 601) and increasing the fiscal year 2024-25 Vehicle Replacement Fund Expenditure Budget by $1,328,578.
Respectfully submitted,
Erin Smith, Director of Public Works
By,
Carlo Balboni, Fleet Supervisor
Financial Impact section reviewed,
Ross McCarthy, Acting Finance Director
Exhibit:
1. Quote for One Pierce Manufacturing, Inc. Enforcer 1500 GPM Pumper from Golden State Fire Apparatus