The URL can be used to link to this page

Home My WebLink About5F Fire Truck Purchase Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 11, 2017 AGENDA #: 5F PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER RICK STEINHAUS, FIRE CHIEF PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING PURCHASE OF FIRE TRUCK REPLACEMENT AND DISPOSAL OF #9220 DISCUSSION: Introduction The purpose of this agenda report is to consider approval of a resolution awarding the contract for the replacement of the City’s 24-year-old fire pumper truck and disposal of the existing #9220. History Fire truck #9220 was purchased in 1993. Per the City’s Equipment Replacement Plan this vehicle was scheduled to be replaced after 20- years of service in the city’s 2017-2021 adopted Capital Improvement Program(CIP). As was the council’s original direction when the replacement plan was created, we have retained this piece of equipment to garner the longest possible useful life. The Equipment Replacement Plan was created as a budgeting tool to assist in financial planning for major expenditures and to help moderate the annual fleet replacement budget. The goal is to replace equipment in a timely and cost-effective manner. This fire truck is currently 24-years old and in need of replacement. Current Circumstances The purchase of the replacement fire truck has been delayed for the past several years due to budgetary constraints and our desire to squeeze the maximum productive life out of the vehicle. However, the safety and maintenance of the existing truck have reached a point where it can no longer be delayed. As the needs of the fire department have grown over the years, so has the equipment they need to do their jobs. This has required that additional equipment be added to the existing fire truck. The weight of the truck has been impacted as a result and there has been a history of the brakes being undersized for the current weight. In addition, due to the age of the truck it is becoming increasingly difficult to find parts to perform maintenance. 2 The Fire Chief has been in discussions with the manufacturer of the replacement pumper truck as part of the budgeting process and was informed that a there would be an increase of approximately 4% in price in 2018. If we agree to purchase the new fire truck now and take possession in 2018 the manufacturer has agreed to hold the 2017 price which would save the city about $24,000. Conclusion Due to the savings that will be achieved by entering into a purchase agreement in 2017 for delivery of the new fire truck in 2018 it is recommended that the City move forward with the proposed purchase agreement at this meeting since the deadline is December 13, 2017. ISSUES: Some years ago, the city council took a similar action to save the city money when we purchased new police vehicles. The truck is and has been part of the Capital Improvement Program for some time. As directed by previous city councils the staff has sought to retain equipment as long as possible before replacing. That is why we have retained this equipment for 24 rather than 20 years. We have previously saved money by refurbishing Fire vehicles. This practice was evaluated for this equipment but is not feasible since the chassis, transmission, drive train and engine would have to be upgraded to provide the needed carrying capacity. The attached resolution authorizes disposal of the existing unit #9220 through trade or other appropriate means FINANCIAL IMPACT: The funding for the fire truck is included in the Revolving Equipment Fund as part of the approved CIP. The Equipment Replacement Plan includes $643,750 for this purchase. The expenditure will be coded to 410- 42200.00-55550.00 (Fire Dept. Vehicle account). The proposed contract from Rosenbauer for the new truck is $607,337 in 2017. This is for the base truck. There will be additional equipment that will need to be added that will cost approximately $35,000 to $40,000. The total cost is therefore between $642,337 and $647,337. If the purchase agreement is delayed until 2018 the cost increase will be 4% which equates to an additional $24,293. This will put the total cost of the fire truck between $666,000 and $671,000, which is over the 2018 proposed budget. ALTERNATIVES: 1. Motion and second to approve a resolution authorizing the mayor and city manager to enter into a purchase agreement for the replacement of the Fire Department pumper truck and disposal of the existing #9220. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. 3 RECOMMENDED MOTION: Alternative #1 ATTACHMENTS 1. Rosenbauer contract proposal 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION AUTHORIZING THE PURCAHSE OF A FIRE TRUCK REPLACMENT AND DISPOSAL OF UNIT #9220 Motion By: Second By: WHEREAS, WHEREAS, Each year the City Council adopts and Equipment Replacement Plan as part of the Capital Improvement Program (CIP); and The 2018 Equipment Replacement Plan contemplates the replacement of #9220 Peterbilt Pumper; and WHEREAS, The City received a proposal from Rosenbrauer Firefighting Technology to purchase a fire pumper truck for $607,337 if the order is placed by December 13, 2017; and WHEREAS, The cost of the fire pumper truck will increase between 3% to 5% if purchased with 2018 contract price vs the 2017 contract price, and; WHEREAS, This purchase is being made through the Houston-Galveston Area Council Buy cooperative purchasing venture in compliance with Minn. Stat. 471.345. 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. The Mayor and City Manager are hereby authorized to execute a Purchase Agreement on behalf of the City with Rosenbauer Minnesota LLC for a fire pumper truck and disposal of existing unit #9220. 3. The approval of the Purchase Agreement is subject to approval by the City Attorney as to the form. Passed and adopted by the Prior Lake City Council this 11th day of December 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager