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CITY COUNCIL AGENDA REPORT
MEETING DATE: December 30, 2008
AGENDA #: 2A
PREPARED BY: Doug Hartman, Fire Chief
Kelly Meyer, Asst. City Manager
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AWARDING BID FOR
PURCHASE OF ONE FIRE RESCUE TRUCK AND ANCILLARY EQUIPMENT
FOR FIRE STATION NO. 2
DISCUSSION: Introduction
The purpose of this agenda item is to request that the City Council award the bid
for one multi-purpose fire rescue truck and ancillary equipment to be used for
service from Fire Station No. 2.
It is anticipated that the Fire Station No. 2 rescue truck will be multipurpose. Its
general characteristics will be similar to the rescue truck operating at Fire Station
No. 1. As such, it can effectively carry both firefighting tools and personnel to
the scene. The truck and equipment on board will be capable of extracting
victims from vehicles, confined space rescue, hazardous material incidents and
water rescue. Unlike any of our existing trucks, this vehicle would have a
centrally mounted and extendable light tower. In addition, equipment to outfit the
rescue truck is also authorized to be included in the bid.
History
In August 2008, the Council took action to authorize the preparation of
specifications and solicitation of bids for the purchase of one rescue fire truck
together with ancillary equipment. The estimate for these purchases was
$425,000. The Council also authorized that these purchases be made using the
remaining balance of referendum dollars not used for construction of Fire Station
2, and directed that $425,000 be transferred to the revolving equipment fund.
Current Circumstances
The City Attorney and staff undertook atime-consuming process to re-structure
and update the Request for Bid (RFB) and contract documents. The Fire Station
Truck committee provided all of the technical detail. The RFB was issued on
November 15, 2008, published in the Prior Lake American and Construction
Bulletin, and posted on the League of Minnesota Cities web site. Staff also
mailed the RFB to five vendors in the Midwest region who have either provided
equipment to the Fire Department in the past, or manufacture similar equipment.
Bids were opened on Tuesday, December 23, 2008. The City received one bid
from Custom Fire Apparatus in the amount of $440,980. A copy of the Bid
Documents and submitted Bid Proposal binder is available at City Hall.
www. cityofpriorlake. com
_ .._
- Phone' 952447.98b0 ~ °Eax 952.447.4245
Peterbilt Chassis: The City specified a Peterbilt chassis for this fire
rescue truck. When asked, several of the vendors said that a Peterbilt
chassis is not a standard model they use, so to provide it would mean a
surcharge in which case, they felt they could not then submit a
competitive bid. The fire truck committee did consider other
manufacturers including Ford, Sterling and Freightliner. Ultimately, a
Peterbilt chassis was specified primarily because:
^ It had more options that were standard (i.e. without up charges).
^ Peterbilt is consistent with other vehicles in the fleet which provides
some advantages for replacement parts, on-going maintenance, and
the operation of the vehicle.
^ Peterbilt offered the longest and most comprehensive warranty.
Obviously, other communities have successfully used and maintained fire
trucks manufactured without the features outlined above. The Request
for Bids specifically provides a process for determining and accepting
equivalent products and materials for just this purpose. However, most
vendors indicated that in their experience if they had to submit
equivalents, it was not worth their time and expense in making a
submittal
New NFPA Regulations: New National Fire Protection Association regulations
go into effect on January 1, 2009. Without going into the extent of the new
regulations, it is clear from the various vendors that price increases estimated
between 5%-10% will be inevitable in order to be in compliance on any bids
submitted after January 1, 2009. Using the estimate truck price of $360,000, this
would mean an additional cost of $18,000 to $36,000.
Ancillary Equipment: As a secondary component of the bid specifications, the
City asked vendors to also issue bids for NFPA equipment integral to the rescue
truck. The equipment proposed included items such as:
Equipment
Quick Vent Chain Saw Life vests
Air packs Gas monitor
Portable lighting including Thermal Imager
generator, box light and two
quartz heads
Extrication equipment Hazmat Kit
Hose fittings Rescue sled
Forcible entry tools Fire extinguishers
Construction tools Stokes basket
Custom Fire Apparatus has submitted a bid for acceptable equipment. However,
because the cost of the truck and equipment exceeds the $425,000 budget, the
City asked the bidder to provide an itemized equipment list to determine if the
City could purchase some or all of the equipment outside the contract at a better
cost.
The fire truck committee has reviewed the equipment list and deducted two items
of equipment (1 hazmat kit and 7 air tank bottles) that can be purchased using
the Fire Department 2009 general operating budget. The remainder of the
Conclusion
The rescue vehicle was part of our equipment matrix with the projected purchase
to be in 2009. Because of the better than expected bids for Fire Station #2, we
were able to purchase this vehicle from Referendum funds. The transfer of
these funds to the revolving equipment fund was initiated by the City Council in
August 2008. With this proposed purchase, our fire stations will have the
following rolling stock complement:
Fire Station No. 1
Aerial Platform
Rescue
Engine (pumper)
Grass Rig
Rescue Boat
Tanker
Utility Vehicle
ATV
Fire Station No. 2
Two engines (pumpers)
Rescue
Grass Rig
It is expected that this equipment complement will serve our needs until a new
station is constructed in the annexation area which is not anticipated to occur
within the next five years.
The Council should review the bid submitted and determine appropriate action.
ISSUES: Competitive Bidding: The truck being bid is considered a 25-year investment.
As such we want to encourage competition so we get the best price, but we also
want the best quality to assure on-going dependability. Despite our efforts to
make the specifications as general as possible, as well as provide a process for
accepting equivalents, the City received only one bid. When staff contacted
various vendors to encourage them to submit a bid, we were advised that there
were three primary areas where the other vendors did not feel they could meet
the specifications to the City's satisfaction without submitting equivalents. Below
we have identified these areas and clarified the fire truck committee's rationale in
each area.
Bolted vs. Welded Construction: Although the truck committee would
consider welded construction, our specifications asked for a bolted
construction. Bolted construction provides a number of advantages over
welded construction, including:
^ It is stronger and less rigid than welded construction and therefore
less likely to fracture.
^ If a section is broken or bent, it can be removed in segments without
having to cut or grind out a more extensive part of the vehicle frame.
^ Repair time is faster since each section can be identified and re-
manufactured, which results in less time that the vehicle is out of
service.
Steel vs. Aluminum Construction: The City's specifications required a
stainless steel construction. Most vendors build their vehicles with
aluminum. Steel construction was determined to be a better long-term
option because of its strength, the improbability of twisting or bending,
and the fact that it is not corrosive.
equipment appears competitive in cost since the bidder will be responsible for
mounting the equipment, and because items purchased under the contract would
be exempt from sales tax. In addition, the fire truck committee considered a
number of optional deductions provided by the bidder. The deductions proposed
are outlined below:
Ori final Bid Amount $440,980
Pro osed Deductions
Warrant Trans ortation ($2,000)
Final Payment issued on Date
of Delive 2 ($3,000)
Eliminate One Electric Cord
Reel & 2"d Rece tacle3 ($2,000)
1 HazMat Kit $2.880
7 air bottles $6,734
TOTAL DEDUCTIONS $16,614
Revised Bid Award $424,366
1 Warranty Transportation would be provided by the City rather than by the
vendor as originally specified.
2 Final Payment will be made on the Date of Delivery rather than within 45 days
following delivery.
3 We only specified one electric cord reel and 1 receptacle. The Bid Proposal
included two.
The proposed changes have been reviewed with the vendor and are acceptable.
Staff is recommending that the Council award the contract for the purchase of
the fire rescue truck and the revised list of equipment to Custom Fire Apparatus
in an amount not to exceed $424,366. The Fire Department has a number of
trucks furnished by Custom Fire Apparatus and finds them to be a quality
provider of dependable vehicles. The purchase of this truck would be consistent
with the rest of the fire rescue fleet with respect to operation, parts and
construction.
FINANCIAL The estimated total cost for the Fire Rescue Truck and ancillary equipment was
IMPACT: $425,000, which amount was transferred from the Referendum dollars to the
Revolving Equipment Fund by Council action in August. Staff is proposing that
the Council award the bid for the truck and revised equipment list to Custom Fire
Apparatus in an amount not to exceed $424.366.
ALTERNATIVES: 1. Adopt a resolution awarding bid for the purchase of one fire rescue truck and
ancillary equipment to Custom Fire Apparatus, Inc. in an amount not to
exceed $424,366, and authorizing the Mayor and City Manager to enter into
the City's contract included in the Request for Bids.
2. Motion and second to reject all bids and provide staff with additional
direction.
RECOMMENDED
MOTION:
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
RESOLUTION 08-XX
A RESOLUTION AWARDING BID FOR ONE FIRE RESCUE TRUCK
AND ANCILLARY EQUIPMENT TO CUSTOM FIRE APPARATUS, INC.
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
Motion By:
Second By:
a new fire rescue truck has been designated for purchase in the 2009 Capital
Improvement Program to serve the new Fire Station No. 2; and
The Fire Department Truck Committee, City Attorney, and City staff prepared plans
and specifications and a Request for Bids for this equipment; and
The City Council authorized the solicitation of bids and public notice was placed in the
legal newspaper and Construction Bulletin; and
A Request for Bids was distributed to five manufacturers of such trucks; and
One bid was received as follows:
Custom Fire 2009 Peterbilt Custom Rescue Yes
Truck and Ancillary Equipment
$440, 980
and
WHEREAS, The Fire Department Truck Committee has reviewed the bid, accepted proposed
deductions made by the Bidder, and eliminated 7 air bottles and 1 hazmat kit from the
list of ancillary equipment, that has resulted in $16,614 in deductions from the original
bid; and
WHEREAS, the Bidder has approved the proposed changes; and
WHEREAS, The revised bid of Custom Fire Apparatus, Inc. fora 2009 Peterbilt Custom Rescue
Fire Truck and Ancillary Equipment is $424,366.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. Custom Fire Apparatus, Inc. is hereby awarded the bid for one 2009 Peterbilt custom rescue fire
truck and ancillary equipment in the amount of $424,366.
3. The Mayor and City Manager are authorized to enter into the City's standard contract included as
part of the Bid Documents.
4. Funds for such purchases shall be drawn from the Revolving Equipment Fund.
PASSED AND ADOPTED THIS 30th DAY OF DECEMBER 2008
YES
NO
Hau en Hau en
Hedber Hedber
Erickson Absent Erickson Absent
LeMair LeMair
Millar Millar
www.c9tygfp~aorlake.com
Phone 952.447.9800 /Fax 952.447.4245
Frank Boyles, City Manager
M:\COUNCIL\RESOLUTI\2008\08-XXX Fire Rescue Truck Bid Award.DOC