Fremont City Council Meeting: 04/12/22 07:00 PM
3300 Capitol Avenue Div/Dept: Fire Department
Fremont, CA 94538 Category: Property Acquisitions & Dispositions
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4550) DOC ID: 4550
Updated: 4/6/2022 6:09 PM by Susan Gauthier Page 1
PURCHASE OF A WATER TENDER - Approve and Authorize City Manager to Execute a Cooperative Purchase with HGAC Buy and Authorize Purchase of a Tactical Water Tender; Appropriate Additional Funds
Contact Persons:
Name: Corina Campbell Curtis Jacobson
Title: Business Manager Fire Chief
Div/Dept: Fire Department Fire Department
Phone: 510-494-4200 510-494-4200
E-Mail: [email protected] [email protected]
Executive Summary: The purpose of this report is to authorize the City Manager or designee to execute a purchase order with Golden State Fire Apparatus (GSFA) using the Houston Galveston Area Council (HGAC) Buy Program to purchase a Tactical Water Tender for a total amount not to exceed $440,871. Council is also requested to recognize $325,000 of net proceeds from the sale of the City’s previous water tender and appropriate that amount to the purchase of the new water tender.
BACKGROUND: The Fire Department water tender, purchased in 2013, is a piece of apparatus used to fight wildland fires in both mutual aid deployments and the City of Fremont. In October 2020, the City Council authorized the sale of the water tender through Brindlee Mountain Fire Apparatus LLC. The water tender and the associated equipment were sold in December 2021 to Oak Creek Fire of Colorado for $341,250. The agreement with Brindlee Mountain requires a 5% fee of $16,250, leaving $325,000 of net proceeds available in the Fire Capital Replacement Fund (Fund 615). Staff is recommending that the City Council appropriate the $325,000 of net proceeds to the purchase of the new water tender.
DISCUSSION/ANALYSIS: The Fire Department has historically used cooperative agreements to get the best prices on apparatus. Pursuant to the City’s Purchasing Ordinance, Section 3.20.310(b), the City is authorized to “piggyback” and enter into a contract to buy equipment or services based on the terms of an existing contract between the contractor and another public agency without competitive bidding so long as the terms of purchase are materially the same as those in the existing contract and the contract resulted from procurement methods similar to those required by the Purchasing Code.
The City has the opportunity to realize cost savings by purchasing apparatus that has been competitively bid through the HGAC Buy cooperative purchasing program. HGAC Buy, a public agency as defined in the City’s Purchasing Ordinance, is a national cooperative procurement organization offering publicly solicited contracts to government entities nationwide. The contracts are created through a public solicitation and awarded by the Lead Public Agency, which is a procurement method similar to that required by the City of Fremont Purchasing Code. The price quote of $440,871 provided by GSFA to the City is based on the price in its agreement with HGAC Buy.
In addition to the savings the City will obtain through cooperative purchasing, GSFA offers a 10% pre-payment discount of $6,841.75. This discount is a feature the City has taken Staff Report (ID # 4550) Meeting of April 12, 2022
Updated: 4/6/2022 6:09 PM by Susan Gauthier Page 2
advantage of with past GSFA purchases, and it has been applied to the quote. The sales/use tax for the purchase of the equipment will be paid directly by the City to the State of California through a direct use tax payment upon delivery of the apparatus. This direct payment will benefit the City because the total amount of the City’s share of the sales tax will be allocated back to the City, rather than being shared with all Alameda County cities through the countywide sales tax pool.
Council action at this time will additionally save the City approximately $30,000 as GSFA has notified City staff that it will be implementing a 7.00% product price increase effective May 1, 2022. This increase is driven by cost escalation that they are experiencing on components and the increasing cost of labor. Timing on this purchase is also favorable to the City because GSFA has been able to secure the chassis needed to build the water tender much quicker than normal. Therefore, the new water tender is anticipated to be built by this year’s wildfire season.
FISCAL IMPACT: The FY 2021/22 budget for the Fire Capital Replacement Fund, with the recommended appropriation of the $325,000 proceeds from the sale of the 2013 water tender, is sufficient to cover the $440,871 cost of the new water tender.
ENVIRONMENTAL REVIEW: The actions recommended in this report are not projects subject to review under the California Environmental Quality Act (CEQA) per CEQA Guideline section 15378(b)(2) as they are administrative activities of government.
ATTACHMENTS:
• Fremont BME Tender Proposal Package - 22 March 2022
RECOMMENDATIONS:
1. Increase the revenue estimate in the Fire Capital Replacement Fund by $325,000 and appropriate that amount for the purchase of a water tender.
2. Authorize the City Manager or designee to issue a purchase order to Golden State Fire Apparatus to purchase a Tactical Water Tender, in an amount not to exceed $440,871, using the HGAC Buy Program cooperative agreement.