To: Honorable Mayor and Members of Town Council
From: Norris W. Croom III, Chief, Fire and Rescue Department
Through: David L. Corliss, Town Manager
Title
Resolution Approving a Purchase Agreement with Front Range Fire Apparatus for the Acquisition of One (1) Velocity 105’ Aerial Ladder Truck [Castle Rock Fire and Rescue Department]
Body
________________________________________________________________________________
Executive Summary
As part of the vehicle replacement plan, the Fire and Rescue Department is requesting approval to purchase a new ladder truck (quint). The vehicle being replaced will meet all of the requirements for replacement as outlined in the vehicle replacement policy in 2028. The Fire and Rescue Department purchases engines and ladder trucks from Front Range Fire Apparatus through HGACBuy cooperative purchasing, which allows for standardization of existing equipment within the fleet. The fleet fund has sufficient funds to purchase this replacement ladder truck, and as the cost is over $250,000.00, we are seeking Council approval of the purchase.
History of Past Town Council, Boards & Commissions, or Other Discussions
Council has previously approved such replacement purchases of fire department vehicles over $250,000.00.
Discussion
Per the department’s vehicle replacement plan, engines and quints are replaced every fifteen years. These units serve ten years as front-line apparatus, and then five years as reserve apparatus. This request is to purchase a replacement ladder truck (quint) that was purchased in 2013. Due to the long lead time for construction and delivery of 45 to 48 months, this replacement needs to be ordered now in order to receive it in 2028.
The department worked with Fleet and Finance to ensure that all purchasing requirements were met, and that funds were available to place this order now. A specification and quote was obtained from Front Range Fire Apparatus for a Pierce Manufacturing Velocity 105’ Ladder through the HGACBuy cooperative purchasing group plan, and the department is ready to move forward with this purchase in order to secure the current price and a delivery date that meets our future needs.
The department began purchasing Pierce units in 2016 after learning of the success that other local departments had in purchasing, performance, and service of Pierce apparatus. We took delivery of a Pierce hazmat truck in 2016, a Pierce engine in 2017, two Pierce ladder trucks in 2018, and ordered an engine in 2022 for Station 156.
While already conceptually approved in the five-year balanced financial plan as part of the fleet replacement budget, the department is seeking Council approval now to avoid future cost increases and secure a delivery date. Due to fact the expenditure exceeds the $250,000.00 signing limit of the Town Manager, Council approval is required.
Budget Impact
The current quote for this new ladder is $1,998,969.00. However, the Town can realize additional savings of $250,000.00 if we prepay 100% of the purchase price, reducing the cost to $1,748,969.00. As there may be the possibility of change orders during the construction process, we are requesting a five percent contingency, or $87,500.00, but all efforts will be made to not use the contingency funds. With the addition of the contingency funds, this puts the cost for the ladder at $1,836,469.00. The contingency funds would not be included in the prepay amount, and would only be spent if needed for change orders during construction.
The Town has chosen to prepay all of our previous purchases from Pierce in order to maximize the savings offered by them. The department is requesting that the Town, again, prepays for this ladder in order to realize a savings of $250,000.00. As part of the specification, Pierce is required to purchase a performance bond to cover the Town’s interest in the full amount being spent, thereby reducing the level of risk to the Town. The cost of the performance bond is included in the overall price, so there is no additional cost to the Town.
Funds are available in the fleet replacement budget to purchase this ladder truck. The Town budgets for the replacement of vehicles, including fire apparatus, on an annual basis. Funding is set aside every year, in this case for 15 years, for a prorated portion of future replacement costs so that when a vehicle reaches replacement timing, the necessary funds for the replacement have been already set aside for those costs. Although this vehicle is being ordered four years ahead of schedule, there are sufficient funds to purchase this unit, and replacement contributions will continue to be made over the next four years to make the replacement fund whole. Specifically, funding will come from line item 221-8100-342.65-00.
Staff Recommendation
Based on the opportunity for the Town to save $250,000.00, staff recommends approval of the contract and expenditure of funds with the Town prepaying 100% of the cost of the ladder for a total cost not to exceed $1,836,469.00 without prior written authorization.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Purchase Agreement with Front Range Fire Apparatus
Exhibit 2: Proposal #1122 For Furnishing Fire Apparatus