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PURCHASE OF ONE FIRE ENGINE FROM ROSENBAUER AMERICA AND AMENDMENT OF FISCAL YEAR 2015-16 GENERAL INSURANCE INTERNAL SERVICE FUND BUDGET
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RECOMMENDATION
It is recommended that the City Council approve a resolution adopting findings and authorizing the purchase of one new fire engine from Rosenbauer America, in the amount of $503,018.07 and authorizing the City Manager to take actions as necessary to carry out the purpose and intent of the resolution.
It is also recommended that the resolution authorize a budget amendment to the Fiscal Year 2015-16 General Insurance Internal Service Fund Annual Budget for the associated reimbursement revenues and expenditures.
It is further recommended that the resolution authorize the City Manager to take appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The Fleet Manager is recommending replacement of one fire engine that has been declared a total loss due to a motor vehicle accident on April 28, 2015. The replacement engine will be purchased from Rosenbauer America. The total purchase cost of the vehicle is $503,018.07 (Attachment A - Quote from Rosenbauer America), and will be entirely reimbursed by the City’s insurance carrier.
DISCUSSION
Background
On April 28, 2015, Fire Engine No. 5105 (Company 12) was involved in a major motor vehicle accident. The resultant damage to the vehicle was so extensive that it has been declared a total loss by the City’s insurance carrier and City Risk Management.
Unit No. 5105 is a 2006 Pierce Quantum Model E-2, one of twelve front-line and five reserve fire engines used by the City’s twelve fire stations. With one of the five reserve units now placed into front-line service to replace the damaged Unit No. 5105, the City now has only four reserve units, three of which are over twenty years old. Routine repairs and preventative maintenance work often take several units out of service at the same time, leaving the City with minimal reserve coverage. Accordingly, replacement of Unit No. 5105 is a priority.
Due to the extended lead time from purchase to delivery (12 months) for a standard fire apparatus purchase, Fleet Services and the Fire Department contacted Rosenbauer America regarding the possibility of an expedited delivery timeline. The attached quote from Rosenbauer America proposes to provide a new fire engine in approximately four months. The new engine would be built to the City’s specifications, with the exception of acceptable differences in the electrical and brake systems. Both Fleet Services and the Fire Department have approved the exceptions. As per Council Item 15-1615 (Resolution No. 2015-05-19-1212), Rosenbauer Fire Apparatus is now the preferred manufacturer for heavy fire equipment. The standardization achieved by acquiring the same brand of vehicle allows for reduced vehicle set up costs and reduced training for city repair technicians.
Present Situation
Stockton Municipal Code section 3.68.070 provides for an exception to the competitive bidding requirements in cases where Council has approved findings which support and justify exemptions to the competitive bidding process. One of the circumstances for these exemptions is a single source vendor pursuant to Stockton Municipal Code section 3.68.070 (A)(4). This type of vendor is defined as one that is selected for a contract based on their capability to provide a specific service or product.
The recommended resolution authorizes the replacement purchase of one fire engine from Rosenbauer America, at a total cost of $503,018.07 (Exhibit 1 to Resolution). A preliminary check in the amount of $259,000 has been issued to the City from the City’s insurance carrier for a portion of the replacement value of Unit No. 5105. A check for the balance of the replacement cost will be issued once the replacement engine has been received. Ownership of the damaged vehicle being replaced has been transferred to the City’s insurance carrier.
Findings
Stockton Municipal Code section 3.68.070 provides for an exception to the competitive bidding requirements in cases where Council has approved findings which support and justify the purchase. Proposed findings to support this purchase are as follows:
1) Rosenbauer Fire Apparatus has been selected by City staff as the preferred manufacturer of heavy fire equipment. The purchase of this brand of truck provides for standardization of parts and equipment, and minimizes training requirements.
2) Maintenance and repair costs for this class of truck will be lower as a result of this standardization.
3) The price of this truck from Rosenbauer America is reasonable and this vendor is the only dealer of this specific brand and model of truck.
Based on these findings, staff recommends the purchase of the fire engine from Rosenbauer America.
FINANCIAL SUMMARY
There are sufficient funds available in Fleet Internal Service Fund Account No. 501-5060-670 for the purchase of one Rosenbauer, 3/16” FX1500 GPM Pumper Truck with Commander 3000 Custom Stock Chassis from Rosenbauer America at a total purchase price of $503,018.07. These funds are made available from the insurance proceeds, which will reimburse the City for its loss.
Purchase breakdown from Rosenbauer America:
Body Price $249,337.00
Chassis $208,686.00
Sales Tax (9%) $ 41,222.07
Delivery $ 3,773.00
Total Purchase Price $503,018.07
The City of Stockton has already received an insurance payment in the amount of $259,000 for a portion of the replacement value of the damaged Unit No. 5105. This payment will be applied in the General Insurance Internal Service Fund as recommended in the budget amendment portion of the resolution. A check for the balance of the replacement cost will be issued by the City’s insurance carrier upon receipt of the fire engine.
It is recommended that the City Manager be authorized to take appropriate actions necessary to accomplish the intent of this resolution. There is no impact to the City’s General Fund or to any other unrestricted fund as a result of taking the recommended action.
Attachment A - Quote from Rosenbauer America