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HomeMy WebLinkAboutStaff Report 6869City of Palo Alto (ID # 6869) City Council Staff Report Report Type: Consent Calendar Meeting Date: 5/2/2016 City of Palo Alto Page 1 Summary Title: Joint Truck Purchase with Mountain View Fire Department Title: Approval of a Contract for the Joint Purchase, Maintenance and use of a Tractor Drawn Trailer Aerial Ladder Truck With the City of Mountain View Fire, With a Purchase Amount Not-to-exceed $630,543 From: City Manager Lead Department: Fire Recommended Motion Staff recommends that Council approve and authorize the City Manager or his designee to execute a contract with the City of Mountain View for the joint purchase, maintenance, and use of a tractor drawn aerial ladder truck, including a purchase amount not to exceed $630,543.09 over three fiscal years, and an agreement to share in maintenance cost and use for fifteen years. Executive Summary The reserve ladder truck shared by the Palo Alto Fire Department (PAFD) and Mountain View Fire Department (MVFD) has reached the end of its service life and needs replacement. Since 1997, the PAFD and MVFD have shared a reserve, ladder truck. The cost of the apparatus and maintenance are equally split between both agencies. The reserve ladder truck is used when either PAFD or MVFD’s frontline ladder truck is out of service for maintenance or repairs. Ladder trucks have a service life of 15 to 20 years. The current reserve ladder truck, originally scheduled for replacement in 2013, no longer meets the National Fire Protection Association (NFPA) guidelines and safety standards. Further, the truck does not meet California and Federal emissions standards. Background Ladder trucks are an integral part of firefighting and rescue operations in jurisdictions such as the City of Palo Alto and Mountain View that serve suburban and urban City of Palo Alto Page 2 populations. Ladder trucks serve many unique purposes that cannot be replaced with alternate apparatus without increasing a life safety risk to the community and firefighters and an increased risk for property destruction. Public safety and insurance industry organizations make recommendations or establish benchmarks for fire department service levels, including types of apparatus, to sustain communities. One major issue the fire service has struggled with is defining levels of service. To address this situation, the International City Managers Association (ICMA) and the International Association of Fire Chiefs (IAFC) formed the Commission on Fire Accreditation International (CFAI). The Insurance Services Office (ISO) measures fire department’s capabilities and sets a Public Protection Classification which insurance premiums are based upon. One key tool in establishing apparatus and service levels is the Standards of Cover (SOC). The SOC evaluates a community’s unique risks using objective, scientific measurements and nationally accepted standards. This comprehensive approach allows the City to match local need (risks and community expectations) with the costs of this service level. Using this information, policymakers can “purchase” the fire and emergency protection (insurance) the community needs and can afford. This includes community defined expectations of service including fire suppression, basic and advanced rescue where the unique features of a ladder truck are especially needed. On emergencies where a ladder truck is needed, if it arrives too late, or not at all, the emergency will continue to escalate drawing more resources into a losing battle. A ladder truck must, if its equipment and crew are to save lives and limit property damage, arrive within a short period of time with adequate resources to do the job. In order to maintain the continuity of protection, timely ladder truck service should be maintained. In 1997 PAFD and MVFD agreed to purchase, operate and maintain one reserve ladder truck to support both departments. This was initiated to lower costs to both agencies while maintaing constant ladder truck service. The original contract expired in 2012, and due to the effectiveness and success of the innovative idea of sharing a aerial ladder truck, both PAFD and MVFD Fire Chiefs requested to continue the shared arrangement. Originally, this ladder truck was scheduled to be replaced in Fiscal Year (FY) 13/14. In the most recent year, the resrve ladder truck was used 56 days, or 15% of the year, by both PAFD and MVFD. Going forward, this reserve ladder truck usage should be expected to remain the same as both PAFD and MVFD operate frontline ladder trucks that are less than five years old. In the original contract, MVFD agreed to store the truck at their fire station. Palo Alto agreed to have their mechanics provide maintenance on the shared ladder truck. In the City of Palo Alto Page 3 new agreement, MVFD agreed to store and maintain the ladder truck, and the PAFD will reimburse MVFD for half the cost of maintenance and repairs. This will allow Palo Alto mechanics to have more time working on PAFD units. In the most recent reported year, it cost $27,601 to maintain and operate the reserve ladder truck. This cost was equally split beteween Mountain View and Palo Alto. Going forward, it is expected that this cost will be less as the replacement ladder truck is new and will be covered under the manufacturer’s warranty. This truck will replace a 1998 Spartan Aerial Ladder Truck. In addition to cost savings, there are supplemental advantages for replacing the current shared ladder truck: Shared equipment, maintenance, and hundreds of reduced work-hours related to writing specifications and bidding. Increase rescue and elevated firefighting abilities with a longer ladder; the reach increases from 75 feet to 100 feet e.g. the new Stanford University Hospital and Palo Alto Veterans Affairs Hospital present challenges for the current shared ladder truck. Increase the capabilities of a quick offensive all-risk fire attack and ventilation. It will be able to store additional equipment for vehicle extrication, technical rescue operations and water evacuation. Currently, the shared truck cannot accommodate the full cache of equipment on the frontline unit. Consequently, some tools are not available while the current shared truck is in service. The tractor drawn truck will allow better maneuverability in narrow and dense streets and neighborhoods. In 2014, PAFD and MVFD dropped borders and regulary respond to emergencies in each others jurisdiction. Whichever unit is closer to the emergency responds which has reduced respone times in the boundry drop area by 51 seconds per call. Now that PAFD and MVFD are working together more frequently it is essential that we are accustomed to utilizing the same tools on an emergency. The joint purchase and operational improvements have demonstrated the effectiveness of regionalization and collaboration. And, as a result, PAFD and MVFD commonly cunsult each other when purchasing other equipment for uniformity when responding to emergencies. This purchase is being conducted using a piggyback purchasing process. The ladder truck will be acquired using the specifications for a competitively bid contract issued by the City of San Jose Fire Department (SJFD). SJFD awarded Pierce Manufacturing the contract as the lowest responsible bidder. Additionally, the City of Mountain View has taken the lead for all transactions related to the purchasing of this vehicle. City of Palo Alto Page 4 Impact The total amount of $630,543.09 will be paid incrementally over three fiscal years: 1.May of FY 2016: $303,540.09 2.November of FY 2017: $151,770.13 3.September of FY 2018: $175,232.72 Currently there is $472,311 designated for the reserve truck in the fleet replacement fund. This is sufficient to cover the first two payments. The last payment in FY 18 will be paid out of the Fire Department’s Operating Budget or an alternative funding mechanism. If this request is not approved, both Palo Alto and Mountain View would have to purchase a ladder truck separately to utilize whenever the frontline truck is out of service. The financial impacts to each agency would likely double the cost of the ladder truck. Policy Implications Authorization does not represent any change in policy Environmental Review The approval of this contract is not subject to environmental review under the California Environmental Quality Act (CEQA) under CEQA Guideline 15061(b)(3) because it can be seen with certainty that the purchase of a replacement ladder truck will not have a significant negative effect on the environment. Attachments 1.Proposal for Pierce Fire Apparatus 2.Joint purchase agreement between PAFD and MVFD Attachments: Attachment A: Mountain View PARTIAL PrePay Option - 05 April 16 (PDF) Attachement B: Joint Purchase Agreement with City of Palo Alto (PDF)  Pierce Manufacturing Inc. AN OSHKOSH CORPORATION COMPANY • ISO 9001:2000 CERTIFIED 2600 AMERICAN DRIVE POST OFFICE BOX 2017 APPLETON, WISCONSIN 54912-2017 920-832-3000 • FAX 920-832-3208 www.piercemfg.com PROPOSAL FOR PIERCE® FIRE APPARATUS City of Mountain View DATE April 5, 2016 500 Castro Street QUOTE NO. 90405-16 Mountain View, CA 94041 EXPIRES April 29, 2016 SALES REP. Ryan Wright The undersigned is prepared to manufacture for you, upon an order being placed by you, for final acceptance by Pierce Manufacturing, Inc., at its home office in Appleton, Wisconsin, the apparatus and equipment herein named and for the following prices: PARTIAL PRE-PAYMENT AT TIME OF CONTRACT SIGNING # Description Each A One (1) Tractor Drawn Aerial Ladder Truck 1,236,176.00 B Additional discount offered by GSFA per 2/5/16 (12,000.00) C Delete 12 volt "as built" wiring diagrams (8,000.00) D Delete "as built" hydraulic wiring diagrams (415.00) E Delete the bell on the cab (for pricing purposes only) (1,600.00) F DISCOUNT FOR PARTIAL PAYMENT AT CONTRACT SIGNING (51,187.99) G Additional discount #2 offered by GSFA on 3/10/16 (3,353.53) H SUBTOTAL 1,159,619.48 I State Sales Tax @ 8.75% 101,466.70 J TOTAL PURCHASE PRICE 1,261,086.18 PARTIAL PRE-PAYMENT AT TIME OF CONTRACT SIGNING TERMS AND CONDITIONS: 1. The City of Mountain View shall pay $607,080.50 within fifteen (15) calendar days of contract signing and receipt of invoice to Pierce Manufacturing Inc. 2. The City of Mountain View shall pay $303,540.25 one hundred ninety five (195) calendar days after contract signing and within fifteen (15) calendar days of contract signing and receipt of invoice to Pierce Manufacturing Inc. 3. The City of Mountain View shall pay the balance of $350,465.43 for the Product within thirty (30) calendar days of acceptance. 2 4. Proposed delivery timeframe after receipt / acceptance of contract (or purchase order) will not begin until payment of $607,080.50 is received by Pierce Manufacturing Inc. 5. If payment of $607,080.50 is late and if the City of Mountain View elects not to have the delivery extended, $225.00 per calendar day will be deducted from the partial pre-payment discount at time of final invoice. Said apparatus and equipment are to be built and shipped in accordance with the specifications hereto attached, delays due to strikes, war, or intentional conflict, failures to obtain chassis, materials, or other causes beyond our control not preventing, within about 465 to 495 calendar days after receipt of this order and the acceptance thereof at our office at Appleton, Wisconsin, and to be delivered to you at MOUNTAIN VIEW, 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 of the order to purchase, and provided such alterations do not materially affect the cost of the construction of the apparatus. The proposal for fire apparatus conforms with all Federal Department of Transportation (DOT) rules and regulations in effect at the time of bid, and with all National Fire Protection Association (NFPA) Guidelines for Automotive Fire Apparatus as published at the time of bid, except as modified by customer specifications. Any increased costs incurred by 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. Any Purchase Order (PO) and/or Agreement awarded as a result of this proposal should be made out to Pierce Manufacturing Inc. Unless accepted by April 29, 2016, the right is reserved to withdraw this proposition. Respectfully Submitted, Authorized Sales Representative Attachment 1 KC/7/ATY 011-04-05-16AG-E -1- AGREEMENT BETWEEN THE CITY OF MOUNTAIN VIEW AND THE CITY OF PALO ALTO FOR JOINT PURCHASE, MAINTENANCE, AND USE OF AN AERIAL LADDER FIRE TRUCK This AGREEMENT is dated for identification this ____ day of __________ 2016, by and between the CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation, whose address is 500 Castro Street, P.O. Box 7540, Mountain View, California, 94039-7540 (hereinafter ), and the CITY OF PALO ALTO, a California charter city and municipal corporation, whose address is 250 Hamilton Avenue, Palo Alto, California, 94301 (hereinafter ), also referred to individually as Party and collectively as Parties. RECITALS A. WHEREAS, Palo Alto and Mountain View each require an aerial ladder fire truck (Truck ) for use as a reserve apparatus; and B. WHEREAS, a Truck that meets the requirements of both Parties has been identified with a purchase cost of One Million Two Hundred Sixty-One Thousand Eighty-Six Dollars and Eighteen Cents ($1,261,086.18); and C. WHEREAS, Palo Alto and Mountain View have determined that the joint purchase and use of the Truck will result in a financial savings and will improve fire protection services to each city; and D. WHEREAS, Palo Alto and Mountain View are each empowered and authorized to purchase the Truck and to do all of the other things authorized and agreed to under this Agreement; AGREEMENT NOW, THEREFORE, in consideration of the recitals and mutual promises contained herein, the Parties hereto agree as follows: 1. Purpose and Objectives. a. Purpose. The Parties shall participate jointly in the manner and to the extent hereinafter specified, in the purchase, maintenance, operation, and use of the Truck. The specific purpose for the Truck is to provide an emergency response apparatus, jointly owned, operated, and maintained. The Truck will serve in the capacity of a reserve vehicle (not front-line) for each agency. It will be placed into the front-line service only when the agency s front-line truck is out of service due to such events as routine maintenance, mechanical failures, extended repairs, etc. Attachment 1 KC/7/ATY 011-04-05-16AG-E -2- b. Objectives. The objectives of this Agreement are to raise the efficiency of each Party with respect to maintaining fire truck company capabilities at emergency incidents by providing adequate equipment to perform such tasks; to reduce overall costs through a joint purchase and use of equipment and shared maintenance costs. 2. Commencement and Termination of Agreement. a. Effective Date and Termination Date. This Agreement shall become effective on May 1, 2016. This Agreement shall terminate fifteen (15) years following the effective date of this Agreement, unless sooner terminated by withdrawal of either Palo Alto or Mountain View, as provided in Sections 2.b. and 2.c. b. Withdrawal from the Agreement. Either Party may withdraw from this Agreement upon not less than one (1) year s written notice to the other Party that the option to withdraw from this Agreement is being exercised. Such notice shall specify a termination date to be effective to coincide with the end of the next fiscal year. c. Failure to Appropriate Maintenance Funds. In the event the governing body of either Party declines to appropriate the funds required by this Agreement to be paid for the continued maintenance, insurance, supplemental equipment, and operation of the Truck, such action shall constitute an election by that Party to withdraw from this Agreement and shall require that Party to give the other Party the one (1) year s written notice of the election to withdraw from this Agreement. d. Force Majeure. No Party hereto shall be liable for any failure to perform as required by this Agreement, or any amendment hereto to the extent such failure to perform is caused by any reason beyond the control of such Party, including, but not limited to: strikes, labor disturbances or labor disputes of any character, failure of any governmental approval required for full performance, riots, civil disorders or commotions, war, acts of aggression, floods, earthquakes, acts of God, or similar occurrences; provided that such Party shall exercise its best efforts to provide the best possible alternative performance and to prevent the foregoing occurrences from obstructing full performance. Such occurrences shall not cause the termination of this Agreement and shall not affect this Agreement except as provided in this paragraph. e. Reimbursement Upon Early Termination. If either Party to this Agreement withdraws from the Agreement, that Party shall not be entitled to reimbursement of any funds previously paid pursuant to this Agreement. Further, in the event of early withdrawal, any moneys owing and unpaid shall be paid by such Party. Attachment 1 KC/7/ATY 011-04-05-16AG-E -3- f. Disposition of Assets. Upon termination of or withdrawal from this Agreement, the Truck, all equipment therefor, and all personal property acquired with, or traceable to, money provided by the Parties hereto shall be liquidated and the proceeds distributed equally between the Parties or the nonterminating Party shall have the option to purchase the other Party s share of the Truck and any equipment utilized and functionally necessary to the Truck; the purchase price shall be established by professional appraisal. At any time during the duration of this Agreement, if agreed to by the other Party, either Party may choose to purchase the other Party s share of the Truck and any equipment utilized and functionally necessary to the Truck; the purchase price shall be established by professional appraisal. 3. Administration of Agreement. a. Decision-Making Authority. This Agreement memorializes the joint effort of the Parties to carry out the purposes and objectives set forth herein; and no separate entity shall be created hereby, nor shall there be created a board of directors. Decisions concerning the equipping, use, and maintenance of the Truck shall be made by consensus of the City Managers of Palo Alto and Mountain View upon the advice of their respective Fire Chiefs and pertinent staff. b. General Purchase. Mountain View shall be the general administrator for the purchase and as such maintain records of such expenditure. (1) Act as depository of any and all moneys received from any source for the implementation of this Agreement. In this regard, the Mountain View Finance and Administrative Services Department shall be responsible upon and official bond for the safekeeping and disbursement of all said moneys, provided that Mountain View may self-insure for this liability. c. General Administration and Operations. Palo Alto and Mountain View will share the use of the Truck. Mountain View will maintain the Truck and supplemental equipment. In connection therewith, Mountain View shall maintain records of all revenues and expenditures incurred in connection with the maintenance and operation of the Truck and supplemental equipment in auditable form and available to Palo Alto upon request. d. Accounting. Each Party shall be strictly accountable for all funds received by it and shall maintain adequate records of all receipts and disbursements pursuant to this Agreement. In addition thereto, each Party shall maintain such additional records relating to the establishment, ownership, maintenance, operation, and use of the Truck and equipment thereof, as is appropriate. Each Party shall have the right, at any reasonable time, to inspect and examine the books and other records of Attachment 1 KC/7/ATY 011-04-05-16AG-E -4- each other Party insofar as they relate to the Truck. The Parties agree that accounts maintained pursuant to this Agreement shall not accrue interest. e. Limitation of Financial Obligation. No Party shall have the power or the authority to incur any obligation pursuant to this Agreement in excess of the amount apportioned therefore by the budget or otherwise specifically authorized by the Parties. 4. Purchase, Maintenance, and Use of Truck. a. Purchase. Palo Alto and Mountain View shall each contribute one-half toward the cost of acquiring one (1) Truck described as follows: One (1) Pierce Arrow XT tractor-drawn trailer truck with a one hundred foot (100 ) mid-mounted aerial ladder. The contribution of each Party for the initial purchase (Pre-Payment Agreement with Pierce see Attachment No. 1, Proposal for Pierce Fire Apparatus, dated April 5, 2016) of the Truck shall not exceed Six Hundred Thirty Thousand Five Hundred Forty-Three Dollars and Nine Cents ($630,543.09) based on the following quote from the manufacturer: Apparatus Cost $1,159,619.48 8.75% Sales Tax 101,466.70 TOTAL $1,261,086.18 Palo Alto shall pay its share of the purchase price to Mountain View within thirty (30) days after receiving and approving a billing statement from Mountain View, which shall be issued upon execution of the purchase agreement for the Truck. b. Ownership. The Truck shall be jointly owned and registered in the names of Palo Alto and Mountain View, and each Party shall take title in equal shares. c. Maintenance of Equipment. Mountain View shall perform all maintenance for the Truck. Palo Alto shall pay fifty percent (50%) of the maintenance costs for the Truck, in quarterly payments, within thirty (30) days of receiving and approving a quarterly billing statement submitted by Mountain View. d. Repairs. Mountain View shall perform all repairs for the Truck. Palo Alto shall pay fifty percent (50%) of the costs of any repairs for the Truck within thirty (30) days of receiving and approving a billing statement submitted by Mountain View. Attachment 1 KC/7/ATY 011-04-05-16AG-E -5- In the case of an accident resulting in damage to the Truck or its equipment, the Party in possession of the Truck when the accident occurred shall be financially responsible for repair to the Truck or equipment caused by the fault of the Party in possession at the time of the accident. That Party in possession shall be entitled to recover damages caused by the other Party to this Agreement or by persons not party to this Agreement whose fault caused or contributed to the need for repairs. If the Truck or any of its equipment is destroyed or damaged for reasons not attributable in whole or in part to the fault of either Party to this Agreement, then the Parties agree to share equally the financial responsibility to repair the Truck or equipment as well as the costs (including attorney fees and other litigation expenses) incurred by Mountain View in recovering damages from any person whose fault contributed to the damage. In the event that the cost to repair the Truck equals or exceeds the salvage value of the Truck, as established by professional appraisal, the Parties will salvage the Truck rather than effectuate the repairs and will divide the proceeds equally. e. Physical Damage Insurance. Mountain View shall maintain physical damage insurance on the Truck. The premium shall be paid by Mountain View and Palo Alto shall reimburse Mountain View for fifty percent (50%) of the premium within thirty (30) days of receiving and approving a billing statement for the premium submitted by Mountain View. f. Liability/Property Damage Insurance. Each Party is self-insured for public liability and property damage. Either Party may elect to maintain liability/ property damage insurance. 5. Equipment. a. Present Equipment. Palo Alto and Mountain View shall provide supplemental equipment for the Truck that is presently in their respective inventories, consisting of various tools and rescue equipment, upon delivery of the Truck from the manufacturer. That supplemental equipment shall be inventoried and shall be returned to the donating Party upon termination of this Agreement to the extent that it still exists. b. Procedure for Acquiring Equipment. Following the initial purchase of supplemental equipment necessary to render the Truck operational, Palo Alto shall purchase additional or replacement supplemental equipment identified and agreed by their respective City Managers as being desirable for the operation of the Truck. Mountain View agrees to reimburse Palo Alto for its equal share of this cost of supplemental equipment within thirty (30) days after being billed therefor. c. Use of Equipment. Each Party shall be entitled to equivalent use of the equipment for training purposes and emergency operations under terms established by Attachment 1 KC/7/ATY 011-04-05-16AG-E -6- the Fire Chiefs of Palo Alto and Mountain View (Fire Chiefs ) in operational protocols supplementary to this Agreement. 6. Training. a. Training Standards. The Parties to this Agreement shall, through operational protocols jointly established by their Fire Chiefs, develop standardized training procedures, operations, and training materials for the use of the Truck. b. Training Exercises. Joint training exercises in the use of the Truck may be conducted under operational protocols jointly established by the Fire Chiefs; provided, however, that in the conduct of such joint training exercises, each Party will be responsible for the personnel costs and obligations associated with the staff which it assigns to the training operation, including, but not limited to, base salary, overtime salary, and fringe benefits, Workers Compensation, retirement, etc., and the employees of each Party shall not be deemed special employees of the other Party for purposes of Workers Compensation. 7. General Provisions. a. Notices. All notices required or given pursuant to this Agreement shall be deemed sufficiently given if in writing and if either personally served upon or mailed by registered or certified mail to the Clerk of the governing body of this receiving Party. b. Settlement of Disputes. Should any dispute arise in connection with this Agreement, the City Managers of the Parties shall meet and confer in an attempt to resolve the dispute and, if unsuccessful, shall employ professional mediation (sharing the costs equally) in a further extent to resolve the dispute. If those measures do not resolve the dispute, judicial review in the Santa Clara County Superior Court may be requested by either Party. c. Modification of Agreement. No term, provision, or condition of this Agreement shall be altered, amended, or departed from or be held or construed to have been waived except by the unanimous agreement and consent of the City Councils of Palo Alto and Mountain View. d. Indemnification. Except as otherwise provided herein, each Party agrees to indemnify, defend, and hold harmless to the Parties, their officers, agents, and employees from any and all demands, claims, or liabilities of any nature, including death or injury to any person, property damage, or any other loss caused by or arising out of the performance or failure to perform the obligation assumed under this Agreement. Attachment 1 KC/7/ATY 011-04-05-16AG-E -7- e. Standing to Enforce Agreement. This Agreement is entered into solely for the mutual benefit of the signatory Parties and not for the benefit of any resident or other person or entity. No person or entity not a Party hereto shall have any right to enforce this Agreement or bring any action as a consequence of this Agreement arising out of a failure or omission on the part of any of the Parties to provide the services described herein. f. Supplement to Other Agreement. This Agreement is intended to supplement rather than supplant any agreements or arrangements between the Parties for automatic aid or mutual aid in the emergencies requiring fire protection, fire suppression, or first-responder medical care into the area covered by this Agreement. g. Joint Powers Provisions. This Agreement shall not be construed to create any joint powers entity under the provisions of Government Code § 6500, et seq. Notwithstanding the provisions for allocation of loss or liability provided therein, the provisions of this Agreement for loss allocation shall govern. /// /// /// /// /// /// /// /// /// /// Attachment 1 KC/7/ATY 011-04-05-16AG-E -8- IN WITNESS WHEREOF, this Agreement, dated ____________________ for identification, between the City of Mountain View and the City of Palo Alto for the joint purchase, maintenance, and use of an aerial ladder fire truck, is executed by Mountain View and Palo Alto. Mountain View : CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation By: City Manager By: City Clerk APPROVED AS TO CONTENT: Fire Chief FINANCIAL APPROVAL: Finance and Administrative Services Director APPROVED AS TO FORM: City Attorney : CITY OF PALO ALTO, a California charter city and municipal corporation By: City Manager By: City Clerk APPROVED AS TO CONTENT: Fire Chief FINANCIAL APPROVAL: APPROVED AS TO FORM: City Attorney Attachment: 1. Proposal for Pierce Fire Apparatus, dated April 5, 2016