To: Honorable Mayor and Members of Town Council
From: Deputy Chief Norris W. Croom III
Title
Resolution Approving a Purchase Agreement with Pierce Manufacturing Inc. for a Velocity Pumper
Body
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Executive Summary
As part of the Department’s fleet replacement program, one of our current fire engines, a 2001 HME, is scheduled for replacement. The department worked with Finance and Fleet to obtain a specification and quote for a 2016 Pierce Velocity Pumper (fire engine) through the Houston Galveston Area Council cooperative purchasing group. Fleet has sufficient funds to purchase this vehicle, and since the cost is over $250,000.00, we are seeking Council approval to move forward with the purchase.
Discussion
The department contributes money on an annual basis to the fleet replacement fund so that we are able to replace our apparatus without having to incur debt. The entire department fleet is on a standardized replacement schedule, and our fire engine is due for replacement in 2016.
The department worked with both Finance and Fleet 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 (fire engine) through the Houston Galveston Area Council (HGAC) cooperative purchasing group, and the department is ready to move forward with this purchase.
While already conceptually approved in the fleet replacement budget for 2016, the department is seeking formal Council approval as the expenditure exceeds the $250,000.00 signing limit of the Town Manager.
Budget Impact
The current budgeted replacement amount in the fleet fund is $639,483.00. The cost of this vehicle and subsequent expenditure from the fleet replacement program totals $643,684.60, which is $4,201.60 over the budgeted amount. However, the Town can realize a savings of $24,500.00 if we prepay 100% of the pumper for a reduced total cost of $619,184.60, which then places this vehicle $20,298.40 under the budgeted amount.
If the decision is made not to prepay 100% of the cost, the Town will realize a lesser savings of $10,955.00 when we prepay the chassis cost of $365,604.00 for a reduced total of $632,729.60, which is $6,753.40 under budget. Prepayment of the chassis is standard when purchasing any fire apparatus.
For the current budgeted replacement amount, there is no additional impact to the 2016 budget. It is part of the annual vehicle replacement program in which we have previously contributed money to ensure that funding is available for replacement of this vehicle. With the minimum prepayment of the chassis, the overall vehicle cost is under the budgeted amount, so no additional funding is needed.
Staff Recommendation
Based on the opportunity for the Town to save $24,500, staff recommends approval of the contract and expenditure of funds with the Town prepaying 100% of the cost of the pumper for a total cost of $619,184.60.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Exhibit 1: Contract