PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B
SUBJECT/TITLE:
AWARD OF CONTRACT TO FIRE APPARATUS SOLUTIONS FOR PURCHASE OF
FIRE ENGINE AND APPROPRIATION OF RELATED FUNDS
RECOMMENDATION:
Adopt a Resolution awarding a contract to Fire Apparatus Solutions for the purchase of a Spartan ER Type One Fire Engine in the amount of $797,646.31 and appropriating $120,000 in the Motor Vehicle Replacement Fund to support the purchase in Fiscal Year 2022.
BACKGROUND:
The City of Pismo Beach owns and maintains three fire engines. Two fire engines respond as first out, one from each of the City's fire stations, and one fire engine is a reserve to be made available when a primary fire engine is out of service for mechanical repairs or maintenance. Additionally, the reserve fire engine is utilized within the city during special events and during times of higher-level emergency incidents when additional staffing and equipment is needed.
The fire engine recommended for replacement is a 2003 KME Fire Engine that has served the City of Pismo Beach for over 19 years, past the expected service life of 18 years. The 19 years of service this engine has provided increases the potential of start failures and breakdowns on incidents. Failing to arrive at an incident in a timely manner can jeopardize the ability of first responders to save lives and property, and can impact the City’s Insurance Services Office (ISO) score. Front-line engines with more than 15 years of service have historically proven to require more maintenance and incur costly repairs. It is time to replace the 2003 KME Fire Engine with a fire engine that meets current industry standards. The other two fire engines are Spartan, and in keeping with fleet uniformity, staff recommends replacing the KME Fire Engine with a Spartan Fire Engine.
Cost and Vendor Selection Process
In an effort to plan for the costs to replace fire engines and other City vehicles, the City has a Motor Vehicle Replacement (MVR) Fund that accumulates annual contributions based on a vehicle's set replacement value and estimated useful life. This replacement fund balance for the fire engine is currently based on a fire engine service life expectancy of 18 years and a replacement cost of $750,000. The Fiscal Year (FY) 2023 Motor Vehicle Replacement Fund budget includes $750,000 for the replacement of Fire Engine 264.
Staff has identified Fire Apparatus Solutions (FAS) as the only dealer of Spartan Fire Engines authorized to sell in California (the region). Although there are other vendors in the United States who sell Spartan Engines, they are limited to selling within their territory or region. The unique specifications of a Fire Engine and desire to keep fleet uniformity require the City to use a sole source vendor for this purchase. Fire Apparatus Solutions’ quote is provided as Attachment 1.A. This contract included an annual increase in cost Council Agenda 3-15-2022 12.B-1
on the parts and equipment from the vendor to arrive at the current price for just the engine at $797,646.31. This is a sole source vendor.
Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) awarding a contract for the purchase of the replacement of the 2003 KME Type One Fire Engine (Fire Engine 264) to Fire Apparatus Solutions and appropriate $120,000 in the MVR Fund to support the purchase in FY 2022.
FISCAL IMPACT:
The fiscal impact of approving the attached Resolution is $870,000, including awarding a contract to Fire Apparatus Solutions in the amount of $797,646.31 and additional equipment needed to place the vehicle into service estimated at $72,353.69. The FY 2023 MVR Fund Budget includes $750,000 for replacement of the 2003 KME Type One Fire Engine (Fire Engine 264), leaving a budget shortfall of $120,000. The following table lists the available budget, the fire engine cost, and the remaining budget shortfall.
FY 2023 Budget
FY 2023 MVR Fund Engine Replacement balance $750,000.00 2023 Spartan ER Type One Fire Engine Estimated Costs
Vehicle Cost estimate $797,646.31
Additional equipment $72,353.69
Total Estimated Vehicle Cost $870,000.00
Budget Surplus/ (Shortfall) ($120,000.00)
In order to cover the budget shortfall, staff recommends that Council appropriate an additional $120,000 in the MVR Fund capital outlay-vehicles account for the replacement of the 2003 KME Type One Fire Engine (Fire Engine 264) using MVR available fund balance in FY 2023. As staff pushes out replacement of vehicles routinely past their estimated service date due to their continued operability and serviceability, there are additional resources in the MVR Fund.
ALTERNATIVES:
1. Decline to adopt the resolution; defer purchasing a new fire engine.
2. Provide direction to staff.
ATTACHMENTS:
1. Resolution Awarding the Purchase of a Type One Fire Engine to Fire Apparatus Solutions
1.A. Exhibit A to Resolution: Fire Apparatus Solutions Purchase Agreement Prepared by: Meeting Date: March 15, 2022
Michelle Pearson, Administrative Assistant
Submitted by: Paul Lee, Battalion Chief
City Manager Approval:
Council Agenda 3-15-2022 12.B-2
RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AWARDING A CONTRACT TO FIRE APPARATUS SOLUTIONS FOR
THE PURCHASE OF A SPARTAN ER TYPE ONE FIRE ENGINE IN THE AMOUNT OF $797,646.31 AND APPROPRIATING $120,000 IN THE MOTOR VEHICLE REPLACEMENT FUND TO SUPPORT THE PURCHASE IN FISCAL YEAR 2022 WHEREAS, the Fiscal Year (FY) 2023 Motor Vehicle Replacement (MVR) Fund budget includes $750,000 for the replacement of the 2003 KME Type One Fire Engine (Fire Engine 264); and
WHEREAS, this Engine's 19 years of service increase the potential of start failures and breakdowns on incidents, which can jeopardize the ability of first responders to save lives and property, and can negatively impact the City’s Insurance Services Office (ISO) score and require more maintenance and costly repairs; and
WHEREAS, staff has identified Fire Apparatus Solutions (FAS) as the only dealer of Spartan Fire Engines authorized to sell in California; The unique specifications of a Fire Engine and desire to keep fleet uniformity require the City to use a sole source vendor for this purchase; and
WHEREAS, the cost of the Fire Engine including tax is $797,646.31 and the cost of additional equipment, electronics, decals, etc. needed to place the vehicle into service is estimated at $72,353.69, for a total estimated cost of $870,000; and WHEREAS, the $120,000 budget shortfall can be supported by available MVR Fund balance.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby awards a contract (Exhibit A) to Fire Apparatus Solutions for the purchase of a Type One Fire Engine in the amount of $797,646.31.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby appropriates an additional $120,000.00 in the MVR Fund capital outlay-vehicles account for the replacement of the 2003 KME Type One Fire Engine (Fire Engine 264) using MVR available fund balance in FY 2023.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 15th day of March 2022, by the following vote:
AYES:
NOES:
ABSENT:
Council Agenda 3-15-2022 12.B-3
Attachment 1
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 3-15-2022 12.B-4
Attachment 1
PH: (402)719-1242 Email: [email protected] Address:1762 S Sycamore Ave, Rialto, CA 92376
Apparatus Agreement
3/6/2022
Greetings Captain Gorman,
This is an Apparatus Agreement between Fire Apparatus Solutions and Pismo Beach Fire Department for the purchase of a Spartan Triple Combination Pumper outlined in the Specifications provided.
Below is the cost breakdown:
One (1) Spartan ER Pumper $789,154.00 Fleet Customer Discount and Price Hold -$25,000.00 Deletes from Option list -$23,874.00
One (1) Spartan ER Pumper $740,275.00 Sales Tax @ 7.75% $57,371.31 Total Purchase $797,646.31
Signing this agreement constitutes the purchase of One (1) 2023 Spartan Triple combination pumper for the total cost of $797,646.31. Tax rates are subject to change and the tax will be determined at the time of registration. Any changes to the price will be documented on a Change Order which may increase or decrease the price during the build process.
The pricing includes a virtual preconstruction meeting with the factory at the customer location, a virtual midpoint inspection, progress photos once the chassis is delivered, a Final Inspection Trip for Two (2) Fire Department individuals to travel to inspect the vehicle, and a Pre-Delivery Inspection at Fire Apparatus Solutions.
Build Time is 365 to 395 days. Pricing is only good till March 17th. Fire Apparatus Agreement and or a Purchase Order needs to be submitted to Fire Apparatus Solutions.
Signature below represents agreement of the Terms.
Pismo Beach Fire Department: Fire Apparatus Solutions:
______________________________________ Scott Beck_____3/7/22___ Signature Date Signature Date
______________________________________ Scott Beck_______________ Printed Name Printed Name
______________________________________ __________ Sales Manager____________ Title Title
• Office: (909) 421-2728 • Fax: (909) 421-4150 • https://www.facebook.com/ Fire Apparatus Solutions • Website: FASService.Org
Council Agenda 3-15-2022 12.B-5
Attachment 1.A