MEETING DATE:
JULY 9, 2019
SUBJECT:
Title
RESOLUTION NO. 2019-8651- AWARDING A CONTRACT TO PIERCE MANUFACTURING, INC. FOR THE LEASE OF TWO (2) TYPE I FIRE ENGINES.
Body
Recommendation
Recommendation
ADOPT a resolution awarding a contract to Pierce Manufacturing, Inc. for the lease of two (2) Type I Fire Engines.
Body
Board or Commission Action
Relevant Council Strategic Theme
Dynamic and Responsive Service Delivery
Relevant Department Goal
Reduce Response and Deployment Times
Executive Summary
The City Council adopted the Fiscal Year 2019-2020 budget on June 11, 2019. The adopted budget includes funding for the purchase of two (2) Type I Fire Engines through the Vehicle & Equipment Replacement Fund.
Discussion
The Fire Department’s call volume continues to increase, increasing the mileage and maintenance on the Department’s first-line fire engines. The purchase of the Type I Fire Engines will provide the enhancement necessary to maintain a reliable first-line fleet. With the addition of these new replacement engines, the Department will move two of its oldest current first-line engines into reserve status.
Both the San Marcos Municipal Code (SMMC) and the California Government Code permit the acquisition of equipment from vendors through competitive bid. Bidding requirements outlined in the SMMC Chapter 2.30 (Purchasing) can be met by utilizing a cooperative purchasing program pursuant to Section 2.30.110, when the lead agency has made its purchase in a competitive manner. The cooperative leasing/purchasing program in question, H-GACBuy, has utilized a public competitive bid process and has made such arrangements with Pierce Manufacturing for fire engines, including the Type 1 Fire Engines recommended for lease/purchase.
Fiscal Impact
Based on these specifications, Staff is planning to enter into a 7-year lease/purchase agreement for these Type 1 Fire Engines. The cost of this contract is and will be budgeted in the Vehicle & Equipment Replacement Fund (602). The breakdown of these costs is as follows:
Type I Fire Engines (2) - Principal $ 1,509,757
Type I Fire Engines (2) - Interest $ 213,841
Equipment $ 200,000
Total $ 1,923,598
This loan carries an annual interest rate of 3.9% which amounts to an annual payment of $247,500.96. This annual payment amount does not include equipment costs, which will be paid separately in Fiscal Year 2019-2020.
The principal, interest, and equipment costs for the first year of the lease are included in the adopted Fiscal Year 2019-2020 budget.
Environmental Review
Not Applicable
Attachment(s)
Resolution 2019-
Prepared by: Dean White, Fire Battalion Chief
Submitted by: Heather Todd, Senior Management Analyst
Reviewed by: Dan Barron, Fire Chief
Approved by: Jack Griffin, City Manager