HomeMy WebLinkAboutStaff Report 7477
City of Palo Alto (ID # 7477)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 12/12/2016
City of Palo Alto Page 1
Summary Title: Contract for Purchase of Type III Fire Engine & Budget
Amendments
Title: Approval of a Contract With Pierce Manufacturing Inc. in the Amount
of $399,915 for the Purchase of a Type III Wildland Fire Engine and Approval
of Budget Appropriation Amendments in the General Fund and the Vehicle
Replacement and Maintenance Fund
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Approve and authorize the City Manager to execute a purchase order with Pierce
Manufacturing Inc. in the amount of $399,915 for the purchase of a Type III Wildland
Fire Engine; and
2. Amend the Fiscal Year 2017 Budget for:
a. the General Fund by:
i. Increasing the transfer to the Vehicle Replacement and Maintenance Fund in
the amount of $79,915; and
ii. Decreasing the General Fund Budget Stabilization Reserve in the amount of
$79,915; and
b. the Vehicle Replacement and Maintenance Fund by:
i. Increasing the transfer from the General Fund by $79,915; and
ii. Increasing the Scheduled Vehicle and Equipment Replacement Fiscal Year
2016 project VR-16000 in the amount of $79,915.
Background
The Vehicle and Equipment Use, Maintenance, and Replacement Policy section 4-1 provides for
the on-going replacement of City fleet vehicles and equipment. Replacements are scheduled
using guidelines based on age, mileage accumulation and obsolescence. The policy prescribes a
replacement interval for fire engines of twenty years or 85,000 miles. Council approved this
City of Palo Alto Page 2
replacement in the Fiscal Year 2016 Adopted Budget as part of the Scheduled Vehicle and
Equipment Replacement Fiscal Year 2016 CIP (VR-16000).
The approval was based on:
An examination of each vehicle’s current usage;
An analysis of each vehicle’s operating and replacement costs;
A comparison of the age, mileage, operating cost and performance of each vehicle
with others in the class; and
An analysis of alternatives to ownership, such as mileage reimbursement;
pooling/sharing; the reassignment of another underutilized vehicle, or renting.
Staff recommends replacing vehicle 6120, a 1992 Type III Fire Engine designated for off-road
wildland firefighting activity, as the vehicle has a long and documented history of relief valve
and pump failures during fire incidents. Despite staff’s great efforts to keep this vehicle
operational, the old technology and unreliable design of this unit makes it prone to failure.
Each failure results in extended downtimes as parts have become increasingly difficult to
procure. The Fire Department’s state of readiness, and ability for crews to serve the
community at maximum capacity, is negatively affected during these downtimes.
Discussion
The City fleet must comply with many state and federal regulations. The proposed replacement
Type III engine will comply with 2017 California Air Resources Board standards; implement
National Fire Protection Agency 1912-2014 Annex D, which states apparatus’ older than 25
years shall be removed from service and retired; and lower the City’s carbon footprint,
eliminating an engine from the fleet that is not compliant with state and federal emissions
regulations.
The unique fire potential of the Stanford foothills and Palo Alto Wildland Urban Interface area
creates a need for the special characteristics of a Type III fire apparatus, including four wheel
drive, shorter wheel base, higher ground clearance, and “pump and roll” capabilities.
Traditional Type I fire apparatus’ are not capable of leaving the roadway, therefore not useful in
remote or unpaved locations.
The Palo Alto Fire Department is a partner in the California Disaster and Civil Defense Master
Mutual Aid Agreement between the State of California, each of its counties and their
incorporated cities and fire protection districts. In a typical fire season, partners are dispatched
via the Governor’s Office of Emergency Services to incidents outside a partner’s county, but
within the state. An engine can be utilized by the state for several weeks of the summer. For
example, in 2016 the City sent two fire engines to the Clayton fire in Lake County, the Blue Cut
fire in San Bernadino, the Soberanes fire in Big Sur, the Cedar fire in Bakersfield, and the Loma
fire in Santa Cruz. Each deployment lasted several days. While these fire engines are deployed
elsewhere, it is imperative that the fire engines utlizied in the City in their absence are reliable
City of Palo Alto Page 3
and can provide an exceptional level of service to our community.
The new engine will benefit the community’s all risk emergency needs by:
Exceeding the capabilities of the engine to be replaced
Providing reliable emergency response equipment
Staff identified a current contract between the Town of Corte Madera and Pierce
Manufacturing, Inc. for an engine that meets the City’s specifications. The City’s municipal code
allows for cooperative purchases of this type under Section 2.30.360(k), and it is estimated that
a separate bid from Palo Alto would cost more than the contract price agreed to by the Town of
Corte Madera. City Manager and Administrative Services Department’s Purchasing Division
review determined that this purchase qualifies for exemption from competitive solicitation
requirements (Attachment A).
Bid Process
This is a cooperative purchase, exempt from competitive bidding under Palo Alto Municipal
Code, Section 2.30.360(k). After reviewing the proposal and associated documentation
submitted by Pierce, staff recommends Pierce be accepted and awarded the purchase order.
Two payment options were offered by Pierce, (Attachment B). Staff recommends Payment
Option B, 100% prepayment at contract signing, for a savings of over $18,000.
Resource Impact
The Scheduled Vehicle and Equipment Replacement Fiscal Year 2016 CIP (VR-16000) does not
have sufficient funding to purchase the Type III fire engine. Traditionally, vehicle procurements
are funded through annual charges to the department/fund that will benefit from the vehicle.
In the Fiscal Year 2016 budget for VR-16000, $320,000 was appropriated for the replacement of
this vehicle. To support this purchase, an appropriation of $79,915 to the Scheduled Vehicle
and Equipment Replacement Fiscal Year 2016 CIP project (VR-16000) in the Vehicle
Replacement and Maintenance Fund, offset by a transfer of $79,915 from the General Fund is
recommended. With the recent vehicle replacements an aerial ladder truck is being
decommissioned with an estimated resale value of $85,000. Therefore, it is anticipated that
staff will make every effort to reach this resale value, and recommend that all proceeds of the
sale reimburse the General Fund BSR for the additional funds recommended in this report. It is
anticipated that this aerial ladder truck will be resold early in calendar year 2017.
Policy Implications
Authorization of the purchase order does not represent any change to the existing policy.
Environmental Review
This vehicle will meet 2017 EPA Emissions standards and the latest version of National Fire
Protection Agency standards.
City of Palo Alto Page 4
Attachments:
Attachment A-Letter from Corte Madera (PDF)
Attachment B-Pricing Options (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
1
PROPOSAL FOR PIERCE® FIRE APPARATUS
Town of Corte Madera DATE November 20, 2015
342 Tamalpais Drive QUOTE NO. 71120-15
Corte Madera, CA 94925-1418 EXPIRES December 20, 2015
SALES REP. Daron M. 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: OPTION A: FULL PAYMENT AT DELIVERY
# Description Each
A One (1) Type III Engine $374,202.40
B Factory Inspection Trips (1 trips for 2 CMFD representatives) $3,000.00
C Delivery to Corte Madera, CA $5,550.00
D Performance Bond $949.23
E APPARATUS COST $383,701.63
F California State Sales Tax @ 9.00% $34,533.15
G California Tire Tax Fee @ $1.75 per tire $10.50
H TOTAL PURCHASE PRICE $418,245.28
TERMS AND CONDITIONS of OPTION A: I. The Town of Corte Madera shall pay the purchase price of $418,245.28 for the Product within fifteen (15) calendar days of the units departing the manufacturing facility.
2
OPTION B: 100% PREPAYMENT AT CONTRACT SIGNING
# Description Each
A One (1) Type III Engine $374,202.40
B Factory Inspection Trips (1 trips for 2 CMFD representatives) $3,000.00
C Delivery to Corte Madera, CA $5,550.00
D Performance Bond $949.23
E 100% Prepayment Discount -$16,817.20
F APPARATUS COST $366,884.43
G California State Sales Tax @ 9.00% $33,019.60
H California Tire Tax Fee @ $1.75 per tire $10.50
I TOTAL PURCHASE PRICE $399,914.53
TERMS AND CONDITIONS of OPTION B: I. The Town of Corte Madera shall pay the purchase price of $399,914.53 for the Product within fifteen (15) calendar days of contract signing directly to Pierce Manufacturing Inc. II. The proposed delivery timeframe for the Product will not begin until Pierce Manufacturing Inc. approves the contract and receives full payment of the purchase price of $399,914.53. III. If payment of $399,914.53 is late and if the Town of Corte Madera elects not to have the delivery extended, $125.00 per calendar day will be added to the 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 330 TO 360 calendar days after receipt of this order and the acceptance thereof at our office at Appleton, Wisconsin, and to be delivered to you at CORTE MADERA, 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) issued as a result of this proposal should be made out to Pierce Manufacturing Inc. Unless accepted by December 20, 2015, the right is reserved to withdraw this proposition. Respectfully Submitted,
Daron M. Wright Authorized Pierce Sales Representative