HomeMy WebLinkAbout10/1/2008 - STAFF REPORTS - 5.A. p A LM S.
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DATE. October 1, 2008 NEW BUSINESS
SUBJECT: PURCHASE OF TWO 1500 GALLON PER MINUTE TRIPLE
COMBINATION FIRE ENGINES FROM PIERCE MANUFACTURING,
INC.
FROM: David H. Ready, City Manager
BY: Fire Chief
SUMMARY
This action would authorize the purchase of two (2) Pierce Quantum 1,500 GPM triple
combination fire engines from Pierce Manufacturing, Inc. through a cooperative
purchase with the City of El Centro, CA.
Two of the City's existing fire engines (a 1990 Beck Telesqurt and 1992 Beck Engine)
have exceeded their maximum service life and need to be removed from the fleet. Two
front line engines at Fire Stations #443 and #444 (both 2000 Pierce fire engines) have
over 100,000 miles and need to be transferred to a "Reserve" status which will extend
their useful life another ten years for a total service life of 18 years.
Funding for these engines is available from the Motor Vehicle Replacement Fund
(MVR) with a nine year lease from Oshkosh Capital, the parent company of Pierce
Manufacturing, Inc.
RECOMMENDATION:
1) Approve a cooperative purchase of two 1,500 GPM Triple Combination Fire
Engines from Pierce Manufacturing, Inc. in the amount of $951,950.00 and pay the
California State sale tax of$70,807.72 upon delivery.
2) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING A LEASE PURCHASE
AGREEMENT WITH OSHKOSH CAPITAL FOR TWO 1,500 GPM TRIPLE
COMBINATION FIRE ENGINES $130,725.26 IN ANNUAL INSTALLMENTS."
3) Authorize the City Manager to execute all necessary documents, subject to
review and approval of the City Attorney. Item No. 5 . A •
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°q</FOR��P CITY COUNCIL STAFF REPORT
DATE: October 1, 2008 CONSENT CALENDAR
SUBJECT: PURCHASE OF TWO 1500 GALLON PER MINUTE TRIPLE
COMBINATION FIRE ENGINES FROM PIERCE MANUFACTURING,
INC_
FROM: David H. Ready, City Manager
BY: Fire Chief
SUMMARY
This action would authorize the purchase of two (2) Pierce Quantum 1,500 GPM triple
combination fire engines from Pierce Manufacturing, Inc. through a cooperative
purchase with the City of El Centro, CA.
Two of the City's existing fire engines (a 1990 Beck Telesqurt and 1992 Beck Engine)
have exceeded their maximum service life and need to be removed from the fleet. Two
front line engines at Fire Stations #443 and #444 (both 2000 Pierce fire engines) have
over 100,000 miles and need to be transferred to a "Reserve" status which will extend
their useful life another ten years for a total service life of 18 years.
Funding for these engines is available from the Motor Vehicle Replacement Fund
(MVR) with a nine year lease from Oshkosh Capital, the parent company of Pierce
Manufacturing, Inc.
RECOMMENDATION:
1) Approve a cooperative purchase of two 1,500 GPM Triple Combination Fire
Engines from Pierce Manufacturing, Inc. in the amount of $951,950.00 and pay the
California State sale tax of $70,807,72 upon delivery.
2) Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING A LEASE PURCHASE
AGREEMENT WITH OSHKOSH CAPITAL FOR TWO 1,500 GPM TRIPLE
COMBINATION FIRE ENGINES $130,725.26 IN ANNUAL INSTALLMENTS."
3) Authorize the City Manager to execute all necessary documents, subject to
review and approval of the City Attorney.
City Council Staff Report
October 1, 2008-- Page 2
Pierce Fire Engines
STAFF ANALYSIS:
The Fire Department currently has three (3) "front line" fire engines and two (2) "front
line" fire trucks assigned to the five (5) fire stations. In addition, the fire department
maintains three "reserve" fire engines. The "reserve" fire engines are critical to the fire
department operations on a daily basis. These units provide emergency response
capabilities when "front line" apparatus are out of service for scheduled maintenance or
sent out of town for mechanical repair. Reserve fire engines are placed in service when
second alarm fires occur and are staffed with recalled off duty firefighters, or at times
when the fire department supports a mutual aid request. In addition, the reserve fire
engines are used for driver/operator training that reduce wear and tear and allow the
primary engine to stay in its first-in area available for response.
The Fire Department and the Fleet Department have implemented a fire apparatus
replacement schedule that extends the useful life of firefighting apparatus. The overall
life of expectancy of fire apparatus is 17-20 years. Front line units serve the community
for nine to ten years and then assigning it for another ten years as a "reserve" unit has
proven to be a successful and efficient management of the fire department fleet.
Currently two "reserve" fire engines need to be removed from the fleet in 2009, a 1990
Beck Telesqurt and a 1992 Beck engine are at the point where vehicle reliability,
maintenance costs, availability of parts and firefighter safety dictate that they be
replaced. These engines will have provided 19 and 17 years of service when the new
engines arrive.
Today two "front line" engines (both 2000 Pierce Quantum's) have over 100,000 miles
and need be moved into "reserve" status so that the city can benefit from the use of
these engines for another ten years. Both of these engines reassigned as "reserve"
units will provide reliable backups and should require minimal maintenance.
In January 2008 the City of El Centro, CA developed apparatus specifications and
conducted a formal bid process for two Triple-Combination Pumpers, the same base
equipment that we are seeking now. Six fire apparatus manufacturers responded to
their bid and Pierce Manufacturing, Inc. was awarded the contract. The bid documents
from El Centro were reviewed by both the Procurement Manager and the City Attorney
for validation. Pursuant to Section 7.09.010 of the Municipal Code, which provides that
the City Council may authorize the acquisition of supplies, equipment or services
through a joint powers or other cooperative purchasing program with a public entity or
association of public agencies, staff is recommending that Council award this
cooperative purchase.
The Fire Department's entire fleet of "front line" fire apparatus has been built by Pierce
Manufacturing Inc. The city and fire department benefit by the standardization of the
apparatus operations, familiarity of specifications, safety and training of our firefighters.
The reduced expenditures to purchase one brand of parts and familiarity of
City Council Staff Report
October 1, 2008 -- Page 3
Pierce Fire Engines
maintenance by the Fleet Department mechanics results in less down time during
routine scheduled maintenance.
To ensure that the units purchased meet the specific requirements of the fire
department and to provide safety for our firefighters as well as the public, we have
requested optional equipment such as air conditioning in the cab, independent front
suspension, radio headsets, front bumper hose lines, hydraulic ladder rack, a foam
system, compartment space for paramedic EMS equipment, and a four section hose
bed cover. These options cost an additional $63,186.00 per engine and are included in
the total amount requested. These engines are diesel powered and built to meet the
California Emission Standards. No alternative fuel engines are available.
FISCAL IMPACT:
The annual lease payment for both engines is $130,725.26 due one year after the lease
commencement. The city will pay the California State Sales Tax of $70,807.72 upon
delivery of the engines resulting in a total first year cost for these two fire engines of
$201,153.98 paid from the 2009/10 fiscal year budget.
Existing lease payments for the two 1999 ladder trucks and the two 2000 fire engines
will be paid off in full before the lease payment for these new engines is due. The
current lease payments for these vehicles are $144,377.87 per fiscal year. Although the
first year cost for the two new engines will be $57,155.11 more than the current lease
payment (due to the sales tax), subsequent years (2-9) will be $13,652,61 per year less
than the current lease payments.
The fire department will request that the BP Palm Springs Fuel Logistics Center project
and the Burrtec Transfer Station project contribute the full cost of these fire engines to
offset the significant fire department impacts that both of these projects will have on
delivering fire protection services to them. This mitigation request will be articulated in
the revised Fire Department conditions for both of these projects.
The newest 105' Aerial ladder (Truck #442) that was delivered in 2007 has a seven (7)
year lease through Oshkosh Capital with annual payments of $95,169.00 payable
through 2013. This truck received partial SDF funding of $258,000 for the down
payment but subsequent contributions from the SDF never materialized. Because the
Fire Department needs to purchase another ladder truck so that Truck #441 at the
downtown fire station may be moved into a reserve status in 2010, the Fire Department
will actively seek a contribution from the Tribe via the SDF or local compact mitigation to
pay the full cost of this truck estimated to cost $750,000.00
City Council Staff Report
October 1, 2008-- Page 4
Pierce Fire Engines
Funds will be budgeted for the lease payment and California sales tax in accounts:
510-5475-49660 "MVR Leases"
510-5475-50020 "MVR Reserves"
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Blake G. Goetz, David J. Barakian
Fire Chief Director of Public Works/City Engineer
David H. Ready
City Manager
Attachments:
1. Proposal from Pierce Manufacturing, Inc.
2. Proposed Resolution approving a lease purchase agreement with
Oshkosh Capital
September 5, 2008
City of Palm Springs Fire Department
300 N. El Cielo Road
Palm Springs, CA 92262 Proposal for Furnishing Fire Apparatus
The undersigned is prepared to manufacture for you, upon an order being placed by you, for final
acceptance by Pierce Manufacturing, Inc. at its corporate office in Appleton, Wisconsin, the
apparatus and equipment herein name for the following prices.
One (1) Pierce Triple Combination pumper per City of El Centro pricing agreement
$ 412,789.00
City of Palm Spring changes to El Centro specification $ 63,186.00
City of Palm Springs price prior to October 10, 2008 NOT including tax $ 475,975.00
Price increase for 2009 model year change $ 20,000.00
City of Palm Springs price if after October 11, 2008 NOT including tax $ 495,975-00
Said apparatus and equipment are to be built an shipped in accordance with the specifications
hereto attached, delays due to strikes, war or international conflict, failures to obtain chassis,
materials, or other causes beyond our control not preventing, within about 7.5 to 8.5 months after
receipt of this order and the acceptance thereof at our office at Appleton, Wisconsin, and to be
delivered to City of Palm Springs, California.
The specifications herein contained shall form a part of the final contract, and are subject to
changes desired by the purchaser, provided such alterations are interlined prior to the acceptance
by the company or the order to purchase, and provided such alternations do not materially affect
the cost of the construction of the apparatus.
The proposal for the fire apparatus conforms with all Federal Department of Transportation (DOT)
rules and regulations in effect at the time of initial purchase, and with all National Fire Protection
Association (NFPA) Guidelines for Automotive Fire Apparatus as published at the time of initial
purchase, except where modified by customer requirements. Any increased costs incurred by the
first party because of future changes in or additions to said DOT or NFPA standards will be passed
along to the customers as an addition to the price set forth above.
Unless accepted within sixty (60) days form date, the right is reserved to withdraw this proposition.
PIERCE MANUFACTURING, INC.
By:
Sales Representative
Timothy J. 011ey
n^
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING A LEASE
PURCHASE AGREEMENT WITH OSHKOSH CAPITAL
FOR THE PURCHASE OF TWO (2) NEW 1500 GALLON
PER MINUTE TRIPLE COMBINATION FIRE ENGINES
(PIERCE QUANTUM PUMPERS).
WHEREAS, the Municipality is a political subdivision of the State (the "State") in which
Municipality is located and is duly organized and existing pursuant to the Constitution
and laws of the State; and
WHEREAS, pursuant to applicable law, the governing body of the Municipality
("Governing Body") is authorized to acquire, dispose of and encumber real and personal
property, including, without limitation, rights and interest in property, leases and
easements necessary to the functions or operations of the Municipality; and
WHEREAS, the Governing Body hereby finds and determines that the execution of one
or more Master Lease-Purchase Agreements ("Leases") in the principal amount not
exceeding $951,950.00 for the purpose of acquiring two (2) 1500 gallon per minute
triple combination fire engines (Pierce Quantum Pumpers) the property ("Equipment") to
be described in the Leases is appropriate and necessary to the functions and
operations of the Municipality; and
WHEREAS, Oshkosh Capital ("Lessor") shall act as Lessor under said Leases.
NOW, THEREFORE, Be It Ordained by the Governing Body of the Municipality:
Section 1. Either one of the City Manager OR his designated representative (each an
"Authorized Representative") acting on behalf of the Municipality, is hereby authorized
to negotiate, enter into, execute, and deliver one or more Leases in substantially the
form set forth in the document presently before the Governing Body, which document is
available for public inspection at the office of the Municipality. Each Authorized
Representative acting on behalf of the Municipality is hereby authorized to negotiate,
enter into, execute, and deliver such other documents relating to the Lease as the
Authorized Representative deems necessary and appropriate. All other related
contracts and agreements necessary and incidental to the Leases are hereby
authorized.
Section 2. By a written instrument signed by any Authorized Representative, said
Authorized Representative may designate specifically identified officers or employees of
the Municipality to execute and deliver agreements and documents relating to the
Leases on behalf of the Municipality.
Section 3. The aggregate original principal amount of the Leases shall not exceed the
amount stated above and shall bear interest as set forth in the Leases and the Leases
shall contain such options to purchase by the Municipality as set forth therein.
Resolution No.
Page 2
Section 4. The Municipality's obligations under the Leases shall be subject to annual
appropriation or renewal by the Governing Body as set forth in each Lease and the
Municipality's obligations under the Leases shall not constitute general obligations of
the Municipality or indebtedness under the Constitution or laws of the State.
Section 5. This resolution shall take effect immediately upon its adoption and approval.
ADOPTED THIS 1$' day of October, 2008.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at an adjourned
meeting of the City Council of the City of Palm Springs on the 1st day of October, 2008,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
City of Palm Springs, California