To: Honorable Mayor and Members of Town Council
From: Norris W. Croom III, Deputy Chief, Fire and Rescue Department
Through: David L. Corliss, Town Manager
Title
Resolution Approving an Equipment and Goods Purchase Agreement with Front Range Fire Apparatus for the Purchase of a Velocity Pumper Truck
Body
________________________________________________________________________________
Executive Summary
With the anticipated construction and opening of Station 156, located in the Terrain/Cobblestone Ranch area) in late 2025 or early 2026, the department is requesting approval to purchase the fire engine that will be needed for that station. The request is being made now due to potential significant cost increases for the engine as well as an extended build and delivery time of approx. thirty months. The department worked with the local dealer, which is a member of the HGACBuy cooperative purchasing group, to obtain a specification and quote for one (1) 2025 Pierce Velocity Pumper (fire engine). Finance has advised that the Town does have sufficient funds to purchase this engine, a budget amendment for 2022 will need to be approved since this was not a budgeted expense, and as the cost is over $250,000.00, we are seeking Council approval to move forward with the purchase.
History of Past Town Council, Boards & Commissions, or Other Discussions
Council has previously approved such purchases of fire department vehicles over $250,000.00. The Public Safety Commission recommended approval at their October 6th meeting.
Discussion
Per the department Master Plan, Station 156, located in the Terrain/Cobblestone Ranch area, is scheduled to be built and open in late 2025 or early 2026. A fire engine and brush truck will respond out of this station, and both apparatus will need to be purchased as these are additions to the current fleet. This request is specifically for the fire engine.
This engine will be equipped with all of the necessary items needed to respond to calls for service as identified in the department’s Standards of Cover. This equipment includes, but is not limited to, hose, SCBAs, ladders, saws, basic vehicle extrication tools, basic wildland fire tools, and EMS equipment. While it does have an onboard water tank, it can connect to any fire hydrant or draft from a portable water supply if needed. The EMS equipment consists of advanced life support (ALS) supplies, tools, cardiac monitor, and medications that allow for the delivery of paramedic emergency care. It will be staffed with three people on a daily basis, one of which will be a paramedic. The majority of this loose equipment is not included in this purchase price and will be purchased separately as we get closer to delivery time. For reference, it will be very similar to Engine 153 located in Founders Village.
In working with our local fire engine vendor, we have been advised that there will be a 6.5% increase in cost to all fire engines effective November 1, 2022, and a potential 13% to 15% increase in January 2023. This does not include any potential additional cost increases in 2024 or 2025. Additionally, due to current supply chain issues, the build and delivery time is currently thirty to thirty one months out. Based on this delivery schedule, the department needs to purchase an engine now to ensure that it is here and ready to go in service by the time the station opens.
The department worked with Finance to ensure that all purchasing requirements were met. A specification and quote was obtained from Front Range Fire Apparatus for a Pierce Manufacturing Velocity Pumper 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.
Pierce Manufacturing, one of the nation’s premiere fire apparatus manufacturing companies, is a subsidiary of the Oshkosh Corporation, a global corporation that “designs and builds some of the industry’s toughest specialty trucks and access equipment”, and employs approximately 15,000 people. As a subsidiary of Oshkosh, Pierce Manufacturing is financially stable and has been selected by several large departments in Colorado as their apparatus provider.
The department began working with Pierce several years ago after learning of the success that Denver Fire, West Metro Fire, and South Metro Fire had in purchasing, performance, and service of Pierce apparatus. We took delivery of a Pierce hazmat truck in 2016, a Pierce Velocity Pumper in 2017, and two Pierce ladder trucks in 2018.
While already conceptually approved in the five year balanced financial plan, 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 engine is $1,026,283.00. However, the Town can realize additional savings of $48,500.00 if we prepay 100% of the purchase price, reducing the cost to $977,783.00. As there may be the possibility of change orders during the construction process, we are requesting a five percent contingency, or $49,000.00, 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 engine at $1,026,783.00. 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 chose 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 engine in order to realize a savings of $48,500.00. 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.
As this was not a budgeted expenditure for 2022, a budget amendment will need to be approved. Finance has advised us that the Town does have sufficient funds to purchase this engine, and they will be submitting a budget amendment for approval.
Staff Recommendation
Based on the opportunity for the Town to save $48,500.00 and to ensure a delivery date, staff recommends approval of the agreement and expenditure of funds with the Town prepaying 100% of the cost of the engine for a total cost not to exceed $1,026,783.00.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Purchase Agreement
Exhibit 2: Specification
Exhibit 3: Powerpoint