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HomeMy WebLinkAboutItem 8.3 FireTruck/Ladder Towers Inc (2) .'~ ."""''ll'<rl!lf-:t:" , . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (March 16, 1999) CITY CLERK File # m@[Q]-[2J[!i] ~ .. SUBJECT: Authorization to Waive Competitive Bidding Requirements and Purchase a Fire Truck from Ladder Towers, Incorporated. ~Prepared By: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: 1. Excerpt From Adopted 1998 - 2003 City of Dublin Capital Improvement Program. Current Fire Apparatus Inventory With Projected Life Cycles Resolution 2. 3. RECOMMENDATION: (!JP Adopt the Resolution and direct Staff to proceed with the purchase. FINANCIAL STATEMENT: Adequate funds are included in the adopted FY 1998/99 Budget for the purchase of the vehicle. A portion ofthe cost will be funded from revenues as a result of selling a portion of the ownership in the existing Fire Truck to Alameda County and San Leandro for use as a jointly owned Reserve Truck serving all three agencies. . DESCRIPTION: As of July 1, 1997, the City of Dublin acquired the responsibility for the procurement of Fire Apparatus utilized by Alameda County Fire Department(ACFD) under contract with the City. The adopted City of Dublin Capital Improvement Program and Fiscal Year 1998/99 Budget included an appropriation of $683,262 for the purchase and outfitting of a ladder truck. The purchase price will be partially financed with revenue in the amount of $407,786 received from the City of San Leandro and Alameda County in accordance with the joint purchase agreement for the existing truck to be utilized as a reserve for all three jurisdictions. The Fire Service classifies the various types of equipment and vehicles utilized based upon certain criteria. For example, a fire emzine has limited ladder and rescue capabilities. while a fire truck has an aerial device and extensive rescue capabilities and equipment. There are also different ratings for each type of truck and engine. After assuming responsibility for providing fire service. ACFD staff evaluated the needs of the City of Dublin for fire apparatus within the context of the larger Alameda County Fire Department. The evaluation focused on opportunities to achieve adequate equipment coverage in a cost effective manner. The Alameda County Fire Chief has recommended that the City proceed with the purchase of a 100' tractor and tiller fire truck which will have increased rescue and operational capabilities. This will allow the City to participate in joint ownership of the existing truck, which will be designated to reserve ladder truck status. Currently the City of Dublin has no reserve ladder truck capabilities. . Ideally, it is important to have a reserve apparatus which is of the same classification as a front-line piece of equipment; i.e., a reserve truck and a reserve engine. The reserve ladder truck can be moved between jurisdictions and stations when the front-line equipment is out of service. The current life cycle used for COPIES TO: Sheldon Gilbert, Deputy Fire Chief ITEM NO.-B4 Wcc-forms/agdastmt.doc .~.. ladder truck apparatus is 20 years of service. The current inventory acquired from the dissolutiq,n of the Dougherty Regional Fire Authority (DRF A) does not provide the City of Dublin with a reserve apFara~. classified and fully meeting the requirements of a ladder truck. By participating in the joint ladder truck ownership agreement with the City of San Leandro and Alameda. County, Dublin will ensure adequate ladder truck capabilities and service levels. The current reserve ladder truck is scheduled to become surplus. Staff believes that, in the upcoming years, the shared ladder truck agreement, combined with the larger resources of the Alameda County Fire Department, will present opportunities to cooperatively address reserve equipment needs. For this reason the procurement at this time of a ladder truck is deemed by City Staff to be a sound decision, to provide for long term needs in a cost effective manner. Proposed Purchase Alameda County and the City of San Leandro have purchased a total of 2 of the 100' tractor drawn ladder trucks manufactured by Ladder Towers, Incorporated (LTI). The Alameda County Fire Chief has noted that a purchase by the City of Dublin at this time would provide standardization for maintenance and consistency for personnel operating the front line ladder trucks throughout the system. This also provides a consistent equipment specification for the purposes of maintenance. Based upon the Alameda County Fire Department specifications, and consistent with the Fire Engine purchased by the City of Dublin in 1998, the apparatus is scheduled to be painted red by the manufacturer. Alameda County Fire Department Staff have been in communication with the manufacturer (L TI) on the City's behalf. The manufacturer currently has a production slot available and has designated a delivery date within 6 months of placing the order. This would allow the City to take possession of the vehicle in late 1999. It would then be necessary to outfit the vehicle with the necessary equipment. The manufacturer has offered pricing to the City of Dublin which is consistent with costs paid by the . County and the City of San Leandro. Staff has also reviewed this pricing with a competitive bid awarded to Ladder Towers, Incorporated by the City of Los Angeles in March of 1998. The City of Los Angeles was ordering a total of 22 vehicles, and the price offered to by Ladder Towers, Incorporated to the City of Dublin for one ladder truck is comparable, based upon adjustments to reflect standardized features in the Alameda County fleet. The following is the projected purchase price as presented by Ladder Towers, Incorporated: Base Cost tractor drawn ladder truck $ 548,165.00 Sales Tax 45.223.61 TOTAL BASE VEHICLE PURCHASED FROM LTI $ 593,388.61 ESTIMATED EQUIPMENT / OUTFITTING COST GRAND TOTAL $109.748.57* $703,137.18 Revenue from Reserve Truck Agreement NET COST FULLY EQUIPPED $407.786.00 $295,351.18 * The cost of outfitting the Fire Truck is not part of this bid award. Alameda County Fire Department will make these purchases which will be reimbursed by the City of Dublin at cost. The cost to outfit the truck includes the purchase and installation of various emergency equipment, radios, tools, generators, etc. The $109,000 is a preliminary estimate based upon the complement of equipment carried on Fire Trucks in the . Alameda County fleet. These costs will in all likelihood be incurred in Fiscal Year 1999/2000 after the delivery of the truck by the manufacturer. '1 _ .-. 7-- ""."~,.~- " . The 'amount appropriated in the Fiscal Year 1998/1999 Budget was $683,282. The projected cost of the fully outfitted truck is $19,855 over the amount budgeted. This will be fully offset by additional revenue from the shared Truck arrangement with the City of San Leandro and Alameda County. The adopted . Budget had estimated a total of $354,500 in revenue to the City of Dublin. As outlined in a separate item based on an appraisal of the Reserve Truck a total of $407,786. The Alameda County Fire Department will coordinate the procurement of the necessary equipment following delivery of the apparatus. At this time the City Council is only being requested to approve the purchase of the base vehicle. Staff is expected to meet with the manufacturer's representative to discuss the precise contract terms and schedule of payments. The final timing of payments will be incorporated into the Fiscal Year 199912000 Budget. Recommendation In order to take advantage ofthe pricing presented the City of Dublin order must be confirmed by April 1, 1999. lfthe City were to work with ACFD through their specification committee and solicit competitive bids, it is projected by ACFD staff that considerable additional time would be required before the delivery of a new fire engine. Given that LTI has provided pricing based on the 1998 Los Angeles bid. It is expected that the bids would reflect Manufacturer 1999 price increases. The City would also no longer have its place in the current LTl production schedule. The bid waiver process was approved by the City Council in 1998 for the purchase of a Fire Engine and it allowed the City to take delivery in a much shorter time frame than would have otherwise been possible. Staff recommends that the City Council adopt the attached resolution and authorize a waiver of the competitive bidding requirements as presented in this report and in accordance with the Dublin Municipal Code. As provided for in the Municipal Code, the waiver of a formal sealed bid for the purchase of a vehicle requires a 4/5 approval by the City Council to allow the negotiation of the purchase by Staff. The . cost to be negotiated will be in accordance with information provided in this report. . _'3- "\ . 1998.2003 CAPITAL IMPROVEMENT PROGRAM . PROJECT NUMBER PROJECT DESCRIPTION ACTIVITY 9350 Fire Apparatus GENERAL DESCRIPTION - LOCATION Prior to July 1, 1997 Fire Protection services were provided to the City of Dublin by the Dougherty Regional Fire Authority (DRFA). All of the Fire Apparatus was owned by DRFA was transferred to its members. This project provides for replacement of the Fire Apparatus. Once an equipment replacement fund is established by the City it is anticipated that replacement equipment will be funded from monies set aside for that purpose in an Internal Service Fund. ~tili Effective July 1, 1997, Alameda County began providing Fire Protection services to the City of Dublin. Fiscal Year 1997-98 and 1998-99 were transitional years, and the purchase of a replacement Fire ApparatL/s is made directly from the General Fund. The Fire Service attempts to balance the age of its equipment to maintain adequate front line equipment along with operating back-up reserves, which serve the same function. For example, if the fleet includes a Fire Engine with a pumper and an Aerial Fire Truck, it would be desirable to have both an Engine and a Truck in reserves. The typical life cycle provides for apparatus in frontline service fanS years and 5 years as a reserve unit. The actual life may differ depending on the lype of equipment and its operation. Passenger vehicles used by Inspection and Supervisory Staff typically have a lifecycle of 7 years or 70,000 miles. In Fiscal Year 1997-98 the City purchased and outfilled a new Fire Engine. The new Engine replaced a specialized piece of .equiPment, which had also served as a reserve Fire Truck. Due to the need to fully retire the reserve vehicle, it is necessary to evaluate options available to assure that a reserve Fire Truck with aerial capabilities is available when the 1994 Aerial Fire Truck owned by the City is out of service. Alameda County Fire Department (ACFD) has requested that the City consider the joint financing of a reserve Fire Truck. ACFD has determined that the current 1994 Aerial Truck owned by the City of Dublin, would be suilable as a shared reserve unit serving the City of Dublin, Alameda County, and the City of San Leandro. Alameda County and the City of San Leandro would purchase from the City of Dublin an ownership interest in the 1994 Fire Truck. Based upon the estimated appraised value, the City of Dublin would be paid $354,500 and would continue to maintain a 13% ownership interest in the Fire Truck. The City would need to purchase a new aerial ladder truck in Fiscal Year 1998-99 to serve as the City's front-line equipment. The cost of a fully outfitted aerial ladder truck is estimated at $683,262. II is recommended by Staff that the City finance the purchase with General Fund monies including the contributions from the shared sale of the City 1994 Fire Truck. Of the $328.762 required from the General Fund, approximately $154,609 will be financed from reserves and not current revenues. This amount can be attributed 10 surplus funds transferred to the City in Fiscal Year 1997-98 from the c1ose.out of the Dougherty Regional Fire Authority as an agency with current operations. Long term savings to the City are anticipated to be realized with the shared use of the reserve fire truck as proposed by ACFD. It is expected that all future replacement of fire equipment will be accomplished with reserves established in an Internal Service Fund. The Fiscal Year 1998-99 City of Dublin Operating Budget includes an appropriation to began financing the replacement of equipment over its expected lifecycle. . FINANCINGfYEARS SCHEDULE ES'rlMA TED COSTS Fund Prior Years 1998.99 1999-2000 2000.01 2001-02 2002-03 Totals Design { Inspet:t1on 001 $ 317,500 $ 683,262 $ 1,000,762 Professional SeNiees Improvements Machinery { Equipment S 1,000,762 Operating Supplies Printing Training TOTAL $ 1,000,762 $ 317,500 $ 683,262 $ 1,000,762 EXHIBIT 1 Life Cycle of Fire Apparatus CITY OF DUBLIN Current Fire Apparatus Inventory - March 9,1999 Assumes Total Lifecycle of 15 Year Front Line Service and 5 Years Reserve Status Projected Estimated Front Line Projected Reserve Replacement Thru From To Cost 2013 2013 2018 $ 311,572 2010 2010 2015 $ 618,782 Current Status TYPE Station Year Purchased Fire Engine(Pierce Triple Combination) Front Line Donohue 1998 Fire Truck-Aerial Ladder(94H2 #209) Front Line 1 Donohue 1995 (Truck is proposed to be jointly owned by SaD Leandro, Alameda County aDd the City of Dublin. If will be shared as a Reserve Truck - Upon Purchase and Delivery of A Replacement) Patrol Engine Front Line 4 Donohue 1986 2001 2001 2006 $ 187,514 Fire Engine(84V/ #160) Reserve Engine Donohue 1984 1999 1999 2004 $ 311,572 Fire Engine (91p #161) Patrol Engine (95p #162) Front Line Front Line I 3 Santa Rita Santa Rita 1991 1996 2006 2011 2006 201.1 2011 2016 S $ 311,572 235,200 Fire Truck (81 v #208)* Not In Use * Donohue 1981 1996 1996 2001 $ 618,782 · T ruc k does Rot curreR tl y meel ra lin g cri teri a due lack of appropriate ground ladders, and does nol meet curren I aeri a I safe ty stand ards. trj ~ == ~ eo l-4 ~ N " . .1 . ~ ~ . ' RESOLUTION NO. - 99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN . ********* AUTHORIZING A WAIVER OF THE COMPETITIVE BID REQUIREMENT FOR THE PURCHASE OF FIRE APPARATUS EQUIPMENT WHEREAS, the City of Dublin has adopted a Purchasing System which is intended to establish efficient procedures for the purchase of equipment and other materials; and WHEREAS, the City Purchasing system also is to serve as a means to secure equipment for the City at the least possible cost commensurate with the'level of quality required; and ' WHEREAS, subject to City Council approval, Section 2.36.050 of the Dublin Municipal Code authorizes exceptions to the competitive bid process; and WHEREAS, an exemption to the bid process may be authorized in the event that an item has been previously bid by another public agency or upon a four-fifths approval of the City Council for the purchase of vehicles; and WHEREAS, the City of Los Angeles in March of 1998 selected Ladder Towers, Inc. to deliver 22 tractor dra\\l1 ladder trucks, after conducting a bid process for additions to their fleet; and WHEREAS, Ladder Towers, Inc. has offered to extend the order to allow the City of Dublin to purchase a 100' L TI tractor dra\\11 ladder truck, pursuant to the bid conducted by the City of Los Angeles and as modified by the Alameda County Fire Department standard specifications; and . WHEREAS, the City will realize savings associated with foregoing a formal bid process and delivery of the new apparatus in a timely manner; and WHEREAS, Alameda County Fire Department as well as the City of San Leandro, have both purchased tractor dra\\11 ladder trucks and there are potential benefits from maintaining and utilizing similar equipment; and WHEREAS, due to a current production slot vacancy Ladder Towers, Inc. can commit to delivery within 6 months of the order. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin pursuant to Section 2.36.050 of the Municipal Code (as amended); hereby waives the requirement for a competitive bid and authorizes the purchase ofa 100' tractor dra\\11 aerial apparatus from Ladder Towers, Inc. pursuant to negotiation and based upon a bid awarded by the City of Los Angeles and the Alameda County Fire Department Standard Specifications (base vehicle price is $593,388.61 including sales tax). BE IT FURTHER RESOLVED, that the City Manager and or his designee is hereby authorized to execute any necessary agreements, purchase orders, or other documents required to arrange for the purchase and delivery of the ladder truck. . PASSED, APPROVED AND ADOPTED this 16th day of March, 1999. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk EXIllBIT 3