CITY OF SEBASTOPOL
CITY COUNCIL
AGENDA ITEM
Meeting Date: August 1, 2023
To: Honorable Mayor and City Councilmembers
From: Jack Piccinini – Interim Fire Chief
Subject: Consideration of Purchase of Pierce Enforcer Type 1 Fire Engine – Total Purchase Price $938,744.82 and authorize the City Manager to Enter into the Lease Agreement with Community Leasing Partners
Recommendation: That the City Council Approve the Purchase of a New Type 1 Fire Engine to Replace the Existing 1990 Type 1 Fire Engine and authorize the City Manager to enter into the Lease Agreement with Community Leasing Partners
Funding: Currently Budgeted: Yes ☐ No ☐ Not Applicable Account Code: 104-31-02-5100
Costs authorized in City Approved Budget: Yes (Finance Initialed __AK___) ☐ No (Finance Exempt) INTRODUCTION/PURPOSE:
The item is to request Council approve $938,744.82 for the purchase of a new Pierce Enforcer Type 1 Fire Engine to Replace Existing the 1990 Type-1 Fire Engine and authorize the City Manager to enter into a lease agreement with Community Leasing Partners financing company.
BACKGROUND:
As a part of the 23/24 budget process the council approved $300,000 to serve as a down payment for the purchase of a new type 1 engine to address the critical need of replacing a 33-year-old fire engine. The council approved these funds based on being able to move forward on the engine purchase on a lease purchase option strategy. Staff have worked with the fire engine manufacturer who has provided a proposal for an engine that meets the needs of the city.
DISCUSSION:
The SFD operates with a fleet of two Type 1 fire engines, one 100’ aerial ladder truck, one Type 3 fire engine, and a rescue squad. Maintaining two Type 1 engines is critical in providing the necessary pumping capacity for fighting building fires and for meeting the ISO fire flow requirements to achieve Sebastopol’s ISO rating of 3. Additionally, it is critical to have two Type 1 engines so that when one engine is unavailable due to a commitment on an incident, or out of service due to maintenance or mechanical issues, the second engine is available. Having like operability of the engines is also critical as pumping operations, equipment placement, technology and functionality is the same between engines.
Fire apparatus replacement standards are based on NFPA 1901, best practices and standards established by the League of California Cities. These standards require that engines be replaced every 25 years. As the Matrix Agenda Item: Added July 27 2023 Agenda Item: Added July 27, 2023 City Council Meeting Packet of: August 1, 2023
consultant report indicated, the current front-line engine is 12 years old and the second line engine is 33 years old, eight years past its recommended replacement age.
The proposal before the council is to purchase a Pierce Enforcer Type 1 Engine. The proposed engine, with little exception, is identical to the current front-line engine. By following this strategy, the following benefits are achieved:
• Volunteers operate on pieces of equipment with the same pump and pump operations. • The layout of compartments will be the same between engines and therefore being able to maintain a standard inventory of equipment and its location on the fire engine is achieved. • By duplicating our existing fire engine, which was built by Pierce, specifications have already been developed. This significantly shortens the process as there is no need to start from ground zero in developing new specifications.
• Using the current engine specs as the working model places the engine in Pierces’ BMP program which will shorten build time.
• Standard and operational consistencies is also extended when working with neighboring departments which also currently have Pierce fire engines. (Graton FD - 1 Pierce in service 1 on order; Santa Rosa 7 as examples).
• Pierce exclusively provides the Paccar MX13 motor, which is a high performing, highly reliable motor that comes with significant savings over other diesel motor manufacturers. • The Enforcer Cab and chassis are proprietary to Pierce and provide for operational consistency between engines and is proprietary to Pierce.
• Foam tank and light tower are proprietary to Pierce and provide for operational consistency between engines.
The City of Sebastopol, being members of the Sourcewell Consortium Sourcewell is a governmental agency that has the legal authority for national solicitations. This vets competitive pricing for governmental purchases. Members can use Sourcewell awarded contracts which have gone through the competitive bid process and legally satisfies bid requirements. Pierce as allowed a $17,185.07 discount for use of the Sourcewell Consortium As indicated, one of the important strategies to this purchase to based on a lease purchase plan. This strategy was presented to the budget ad hoc committee asthe best method to expedite the replacement of the 1990 fire engine, placing the apparatus replacement plan on track and preventing delays in the purchasing process. Any delays in attempting to achieve saving will highly likely be offset by the rampant cost increases that are occurring in this industry. Attached are leasing proposalsfrom Community leasing Partners. Interest rates are consistent with other lenders. By executing this option, Pierce has allowed a pre-payment discount of $113,300.67 for 100% payment at time of order. Proposals from Community Leasing Partners are attached. It is recommended that executing a $300,000 down payment and payment of $238,050.49 per year for 3 years is most prudent.
ENVIRONMENTAL REVIEW:
The proposed action is exempt ☒ Yes ☐ No from the requirements of the California Environmental Quality Act (CEQA)
GOALS:
This action supports the following City Council Goals and General Plan Actions:
• CSF 1: Provide High Quality Community Services, facility and Infrastructure to All Residents, Business and Visitor in Sebastopol.
PUBLIC COMMENT:
As of the writing of this staff report, the city has not received any public comment. However, staff anticipates receiving public comments from interested parties following the publication and distribution of this staff report.
Such comments will be provided to the City Council assupplemental materials before or at the meeting. In addition, public comments may be offered during the public comment portion of the agenda item.
Agenda Item: Added July 27 2023 Agenda Item: Added July 27, 2023 City Council Meeting Packet of: August 1, 2023
PUBLIC NOTICE:
This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date.
FISCAL IMPACT:
As mentioned above, it is proposed and recommended that the City Council authorizes the City Manager to enter into a lease agreement with Community Leasing Partners financing company. Staff is proposed to select Option 1 with a 3 yearsterms at the interest rate of 5.79% with a $300,000 down payment and each payment of $238,050.49 per year for the next 3 years. The total cost of this Type 1 Engine at the end of the lease term at approximately $1,014,151
The deposit amount of $300,000 is allocated in FY23-24 adopted budget. By entering into the 3 years lease agreement, the City is committing of approximately $238,000 annually for fiscal year 24-25, 25-26, 26-27.
RECOMMENDATION:
Staff recommends the Sebastopol City Council Approve the purchase of the Pierce Enforcer Type-1 Fire Engine and execute the purchase agreement based on Golden State Fire Apparatus proposal 50726-23; and that further, staff be authorized to execute a lease purchase agreement with Community Leasing Partners in conjunction with the execution of the purchase agreement for the engine.
Attachments:
Bid pricing cost breakdown.
Drawing of the proposed engine.
Proposed lease options from Community Leasing Partners.
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