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ADOPT RESOLUTION TO PURCHASE ONE FIRE ENGINE
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Approve the use of a Cooperative Purchasing Agreement through Sourcewell Contract No. 022818 to provide the City access to preferential pricing of firefighting apparatus from Pierce Manufacturing, Inc.
3. Authorize the City Manager to execute a contract in the amount of $725,915.66 with Pierce Manufacturing, Inc. through affiliated vendor, Golden State Fire Apparatus of Sacramento, CA, to purchase one fire engine.
4. Authorize the City Manager to appropriate funds in the amount of $725,915.66 from the Measure W Public Safety Fire Fund for the acquisition of one fire engine.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
On October 12, 2021, Council adopted Resolution No. 2021-10-12-1203 to accept the Safer Grant of $4.81 million to fund nine new firefighter positions for a period of three years. The staff report identified the new positions would allow for the reopening of Fire Station No. 1 at 1818 South Fresno Avenue. The reopening of Fire Station No. 1 will require the purchase of one new fire engine.
Sourcewell is a public agency based in Minnesota that issues Cooperative Purchasing Agreements to simplify the procurement process for public agencies and take advantage of volume purchasing. Use of a Cooperative Purchasing Agreement streamlines administrative costs and procedures while maintaining the integrity of the competitive bidding process. The specifications for the fire engine available through Sourcewell meet the City’s requirements for this type of equipment.
It is recommended that Council adopt a resolution authorizing the City Manager to execute a Cooperative Purchasing Agreement through Sourcewell, formerly National Joint Powers Alliance (NJPA), for the purchase of one fire engine from Pierce Manufacturing, Inc. through affiliated vendor, Golden State Fire Apparatus of Sacramento, CA, for a total cost of $725,915.66.
DISCUSSION
Background
In 2011, Fire Station No. 1 was closed due to a declared fiscal emergency. With the closure, Fire Engine 1 was absorbed in the apparatus fleet and utilized as a reserve fire apparatus until it was retired in 2014, after approximately 24 years of use.
On October 12, 2021, Council adopted Resolution No. 2021-10-12-1203 to accept the Safer Grant of $4.81 million to fund nine new firefighter positions for a period of three years. The staff report identified the new positions would allow for the reopening of Fire Station No. 1 at 1818 South Fresno Avenue. The reopening of Fire Station No. 1 will require the purchase of one new fire engine.
The City’s fleet of heavy fire equipment consists of 17 fire engines and five ladder trucks. The equipment is maintained by the Fleet Division of the Public Works Department. The Stockton Fire Department operates the equipment and responds daily with 12 of the 17 fire engines and three of the five ladder trucks. The remaining units are in reserve status, to be used when any of the daily response units are out of service. The oldest fire engine is a 1994 model, and the newest is a 2018 model.
The City utilizes a 15-year Heavy Fire Vehicle Replacement Plan to provide a sustainable, reliable, and cost-effective fleet of heavy fire equipment in alignment with industry standards. The National Fire Protection Association Standards for Fire Department Apparatus (NFPA 1901) suggests that replacement cycles for busy fire fleets be evaluated based on call load, maintenance costs, safety, and needed technology updates. The industry standard is between 12 to 20 years for first line response units depending on local conditions, community demand, engine hours, miles driven, and maintenance costs.
Present Situation
The opening of Fire Station No. 1 requires the purchase of one new frontline fire engine to safely and reliably support the daily call volume of a City of Stockton fire station.
The Fire Department’s Measure W Public Safety Fire Fund has sufficient fund balance for the purchase of one fire engine for the re-opening of Fire Station No. 1.
The Public Works Department recommends the purchase of one fire engine from Pierce Manufacturing, Inc. through affiliated vendor, Golden State Fire Apparatus of Sacramento, CA, for a total cost of $725,915.66. The specifications for the fire engine available through Sourcewell meet the City’s requirements for this type of equipment and is consistent with the recent purchase of six fire engines through Golden State Fire Apparatus.
Sourcewell is a public agency based in Minnesota that serves as a municipal contracting agency to streamline the procurement process for public agencies and takes advantage of volume purchasing. All Sourcewell contracts have been competitively bid, solicited nationally, reviewed, evaluated by a committee, and recommended to the Sourcewell Board of Directors for consideration of award. The use of these contracts is optional and is available to California State and local government agencies.
The recommended resolution authorizes the City Manager to execute one Cooperative Purchasing Agreement through Sourcewell, formerly NJPA, for a total of $725,915.66 for the purchase of one fire engine with Pierce Manufacturing, Inc. through affiliated vendor, Golden State Fire Apparatus of Sacramento, CA.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. Sourcewell established a Cooperative Purchasing Agreement for the purchase of one fire engine with Pierce Manufacturing, Inc.
2. The Pierce Manufacturing, Inc. Cooperative Purchasing Agreement was established pursuant to formal competitive bidding processes conducted by Sourcewell on behalf of its governmental members, of which the City is one.
3. Taking advantage of the leveraged procurement agreement negotiated by Sourcewell will save the administrative expense of City staff conducting separate procurements.
4. The specifications for the equipment available through the Sourcewell contract meet the City’s requirements for their equipment type.
FINANCIAL SUMMARY
Staff recommends the appropriation of $725,915.66 from the Measure W Public Safety Fire Fund Balance (200 Fund) to the Fire Measure W Capital Equipment Acquisition, Account No. 4020-000-800004-200-202-20-40-000-000, for the purchase of one fire engine.
Below is the purchase breakdown:
Unit Price Total $ 714,821.75
Sourcewell Discount $ (33,899.00)
Pre-Payment Discount $ (14,954.71)
9.00% Sales Tax $ 59,937.12
Fees $ 10.50
TOTAL PURCHASE PRICE $ 725,915.66
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.