HomeMy WebLinkAboutStaff Report 4.I 06/15/2015DATE: June 15, 2015
Agenda Item #4.1
TO: Honorable Mayor and Members of the City Council through the City Manager
FROM: Leonard Thompson, Interim Fire Chief (�p
SUBJECT: Resolution Repealing Resolution No. 2015 -016 N.C.S. and Authorizing the
Purchase of One Type I Fire Engine from Ferrara Fire Apparatus, Inc., Holden,
LA in the Amount of $540,057.09
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Repealing Resolution No.
2015 -016 N.C.S. and Authorizing the Purchase of One Type I Fire Engine from Ferrara Fire
Apparatus, Inc., Holden, LA in the amount of $540,057.09. This recommendation repeals
Resolution No. 2015 -016 N.C.S., dated February 23, 2015.
BACKGROUND
On February 23, 2015, the City Council approved the purchase of a Type III fire engine from
Ferrara Fire Apparatus, Inc., to replace two outdated fire vehicles, a Type I and a Type VI, which
have been overdue for replacement by several years. The Type III engine, although designed for
wildland firefighting, was described as combining the functionality of the two outdated vehicles
it would replace, at a lower cost. The Type III engine can perform the function of the two
apparatus it would replace, but at a diminished capacity. The motivation behind the purchase of
the lower cost Type III apparatus was related to the City's budget constraints and the capability
for the apparatus to potentially generate revenue while being allowed to respond outside the City
to wildland fires. Upon review of the current status of the Department's staffing, and its
commitment and obligation to the City of Petaluma, responses to wildfires outside the City's
boundaries should be limited.
The purchase of a Type I fire engine is a better overall choice to replace a similar, but outdated,
Type I engine. The Type VI apparatus, which is a pick -up that is equipped with a pump, hose
and other firefighting equipment, can be replaced utilizing funds from the Fire Department
budget, whether it be FY 15/16 or sometime in the near future. The equipment on the existing
Type VI (Unit 9341) can be transferred and utilized on a new vehicle. A preliminary estimate
shows that a new pick -up truck with similar specifications will cost approximately $50,000. A
competitive bid process will take place.
DISCUSSION
Over the last several years, it became markedly apparent that the Department's 1989 Type I fire
engine (Unit 9385) was overdue for replacement (by 11 years) and that a 1982 Type VI
wildland /brush vehicle (Unit 9341) was overdue for replacement as well (almost twice that of the
Type I, 21 years). Due to budget constraints, it was the belief at the time that instead of
replacing each of those two aged vehicles, acquiring one Type III multi - purpose emergency
response vehicle would be a better alternative.
A Type III fire engine's primary function is fighting vegetation fires; however, it is capable of
being utilized for structural firefighting, delivering emergency medical services, rescue events
and extrication assignments. Although the Type III engine combines the functionality of the two
outdated vehicles, it provides those functions in a diminished capacity. A Type III engine lacks
in pump capacity, as well as the ability to carry a sufficient amount of hose and equipment. In
addition, due to its size and maneuverability limitations, it is not easily able to respond to
locations where access is already a challenge.
The ability to use the new Type III vehicle outside the City limits for wildland fires and the
concept of being reimbursed for its use was considered a positive incentive for its purchase.
However, having this vehicle drawn outside of the City is not practical due to the Fire
Department's already limited staffing capabilities and the agreement to which it is engaged
involving the California Office of Emergency Services (OES). On February 26, 2015, the City
entered into a contractual agreement with California OES to respond to major wildland or
catastrophic events using their Type I engine. The OES Type I engine is stored at Station 2 and
Petaluma Fire is allowed to use it as 'a back -up fire engine. However, when called upon, the
apparatus is expected to respond fully staffed with Petaluma firefighters and will, most likely,
travel outside the City limits for at least fourteen days at a time. The OES vehicle is a valuable
resource for the region and provides the platform for positive collaboration with other agencies.
Honoring the commitment with CalOES should come first and foremost; the concept of sending
yet another piece of apparatus, with staff, outside of the City, such as was the idea with the new
Type III, isn't a prudent thing to do.
Additionally, eliminating the Type VI wildland /brush vehicle is not practical. This vehicle
allows the Department to respond to those locations in the City where neither a Type I nor a
Type III can go because of their size and maneuverability. The Type VI vehicle is a pick -up
truck, equipped with an easily removed skid system which houses a pump, 250 gallon water
tank, firefighting hose and equipment. Within the Fire Department's budget, a new pick -up truck
can be purchased to replace the 1982 vehicle. The skid system will be removed and installed in
the new truck, thus providing the Department a new, trouble -free vehicle.
The proposed new Type I vehicle from Ferrara will replace a unit currently in the Department's
fleet inventory. Petaluma Fire did not solicit competitive bids to arrive at this selection. Instead,
the Department utilized Municipal Code, Section 4.04.100 - Co6perative Purchasing Programs
which states: "Purchases of supplies and equipment made under a cooperative purchasing
program with the State, County or other public agencies are exempt from the requirements of this
chapter."
2
The qualifying "public agency" in this circumstance is the San Diego Rural Fire Protection
District in San Diego County. San Diego Rural conducted an open competitive bid in the Fall of
2013 and awarded a contract to Ferrara Fire Apparatus, Inc. as the lowest responsible bidder in
November, 2013. Ferrara Fire Apparatus, Inc. has extended the same pricing in effect at the time
of San Diego Rural's bidding to the City of Petaluma for this purchase.
The Type I fire engine was selected for purchase from Ferrara Fire Apparatus, Inc. because the
Ferrara vehicle specification most closely matches the performance requirements and preferred
design specifications sought by Petaluma Fire Department's Apparatus Specification Committee.
FINANCIAL IMPACTS
The total cost for the Ferrara Type I fire engine is $540,057.09, which includes the base fire
engine cost of $498,898.00 plus sales tax of $41,159.09 (8.25 %). A balance of $30,000 remained
from the prior order of the Type III vehicle due to the fact that specialized parts had already been
ordered. Ferrara has already credited the City $30,000 towards this purchase and it is reflective
in the aforementioned price.
The total price of the vehicle, plus any additional change orders for completion of the
specification, not to exceed $15,000, will be paid from the City's Vehicle and Equipment
Replacement Fund. The current balance in that account is $308,000. During the upcoming fiscal
year, an additional $400,000 is budgeted to be transferred into the fund. This will bring the fund
balance to $707,000 after July 1, 2015. A FY 2015/2016 appropriations budget adjustment in the
amount of $540,057.09 will be brought forward in conjunction with the first quarter adjustments
in November, 2015 for the purchase.
ATTACHMENT(S)
1. Resolution
2. Ferrara Apparatus Contract & Warranty (Exhibit 1 to the Resolution)
3. City of Petaluma Fire Department Type I Engine Specification (Attachment A to the Contract)
4. Ferrara Type I Vehicle Specification & Profile (Attachment B to the Contract)
Attachment 1
RESOLUTION REPEALING RESOLUTION NO. 2015-016 N.C.S.
AND AUTHORIZING THE PURCHASE OF
ONE TYPE I FIRE ENGINE FROM FERRARA FIRE
APPARATUS, INC., HOLDEN, LA IN THE AMOUNT OF $540,057.09
WHEREAS, the Petaluma Fire Department has an aging fleet of fire apparatus and
purchasing one new multi - purpose emergency response Type I fire engine will allow the
Department to surplus one unit in its fleet inventory that is long overdue for replacement, a
1989 Type I (Unit 9385); and
WHEREAS, replacing an aged vehicle with one new response unit will show significant
cost savings in the first vehicle replacement cycle alone and will reduce overall maintenance
and mechanical costs typically associated with maintaining older vehicles; and
WHEREAS, on February 23, 2015, the City Council adopted Resolution No. 2015 -016
N.C.S. authorizing the City Manager to purchase a Type III fire engine in an amount not to
exceed $308,100; and
WHEREAS, following adoption of Resolution No. 2015 -016 N.C.S., the Fire
Department learned of an opportunity in which they could purchase a Type I fire engine
within existing budget constraints, and which would be a better fit in terms of fulfilling the
Fire Department's needs; and
WHEREAS, Petaluma Municipal Code section 4.04.100 - Cooperative Purchasing
Programs states: "Purchases of supplies and equipment made under a cooperative
purchasing program with the State, County or other public agencies are exempt from the
requirements of this chapter "; and
WHEREAS, the Petaluma Fire Department did not solicit competitive bids to arrive at
its selection of the Ferrara Type I fire engine, but instead, will utilize Municipal Code
Section 4.04.100 - Cooperative Purchasing Programs; and
WHEREAS, San Diego Rural Fire Protection District is a qualifying public agency
under Petaluma Municipal Code section 4.040 -100; and
M
WHEREAS, pursuant to Public Contract Code Section 20162, in the Fall of 2013, San
Diego Rural conducted an open competitive bid process for a Type I fire engine with similar
preferred specifications to Petaluma Fire; and
WHEREAS, via San Diego Rural City Council Meeting Minutes dated November 5,
2013, Ferrara Fire Apparatus, Inc. was awarded with a contract for the purchase of a Type I
fire engine because Ferrara Fire Apparatus, Inc. was the lowest responsible bidder; and
WHEREAS, Ferrara Fire Apparatus, Inc. has extended the same pricing in effect at the
time of the San Diego Rural bid process to the City of Petaluma in order to facilitate its
purchase now and alleviate two years of escalated pricing on a vehicle that matches Petaluma
Fire Department specifications; and
WHEREAS, the funding for the desired Type I fire engine will come from the City's
Vehicle and Equipment Replacement Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Petaluma as follows:
1. Resolution No. 2015 -016 N.C.S.is hereby repealed.
2. The City Manager is authorized to purchase one Type I fire engine from Ferrara
Fire Apparatus, Inc., Holden, LA in the Amount of $540,057.09, which includes
applicable taxes, and execute a purchase agreement.
I
EXHIBIT 1
APPARATUS CONTRACT
AGREEMENT- Made this day of , 2015 between FERRARA FIRE APPARATUS,
INC. (Hereafter known as "FFA ") and City of Petaluma Fire Department (Hereafter known as
"BUYER ") in accordance with the conditions written below and the specifications and
addendum(s) attached, which are made part of this Contract. This agreement does not
become binding until it is agreed to and accepted in writing and is properly signed by an
officer of FFA.
TERMS OF PAYMENT- The Buyer agrees to purchase One (1) Ferrara Type I Engine mounted
on a Custom Ferrara chassis for the total sum of Four Hundred Ninety -Eight Thousand Eight
Hundred Ninety -Eight Dollars and Zero Cents ($498,898.00), excluding any taxes, to be paid
in full, UPON DELIVERY AND ACCEPTANCE OF THE APPARATUS. The vehicle(s) shall not
be released to the BUYER until payment is made. If the selling price is subject to any taxes,
the taxes added will be that which are prevailing at the time of delivery.
Payment shall be made directly to FERRARA FIRE APPARATUS, INC. Payment shall be
made in United States Currency. No checks or any other form of payment shall be made to
any sales representatives, dealer, agents, etc.
IF THESE PAYMENT TERMS ARE NOT STRICTLY ADHERED TO, FERRARA FIRE
APPARATUS, INC. SHALL ASSESS A DAILY INTEREST CHARGE BASED ON AN ANNUAL
PERCENTAGE RATE OF 18% ON THE UNPAID BALANCE. IF MORE THAN ONE VEHICLE
IS COVERED BY THIS CONTRACT AND THE VEHICLES ARE SHIPPED ON DIFFERENT
DATES, THE TERMS STATED ABOVE SHALL APPLY TO EACH VEHICLE.
DELIVERY- Delivery shall be F.O.B Petaluma, CA within 240 calendar days. FFA shall not be
held liable for damages for failure to make deliveries as a result of fire, flood, riots, strikes,
chassis shortages, or delays caused by its suppliers, any act of God or any other
circumstances beyond FFA's control.
INSPECTION- The BUYER shall inspect the apparatus immediately upon delivery and shall give
written notice of any defects with Ten (10) days. The vehicle(s) shall be deemed accepted if the
BUYER fails to give such notice. The BUYER expressly waives any rights the BUYER may have to
revoke acceptance after the Ten (10) day period.
WARRANTY- Each vehicle manufactured by FFA shall be warranted according to the provisions
contained in the FFA Warranty Certificate, attached hereto..
PERFORMANCE BOND- If a Performance Bond is required by the BUYER, FFA's standard
Performance Bond form shall be used. BUYER agrees that the bond shall be deemed fully released
upon BUYER's acceptance of the apparatus and the warranty period shall commence to cover the
apparatus.
rol
ASSIGNMENT- The rights and obligations of either party under this Agreement shall not be assigned
or transferred without the prior written consent of FFA and BUYER.
AMENDMENT (S) - No modifications, alterations, additions, deletions, or any other changes in the
terms hereof shall be binding on either party unless produced in writing and properly executed by a
duly authorized officer of FFA and a representative of the BUYER.
NOTICES - All notices under this Agreement must be certified mail, return receipt requested.
GOVERNING LAW- This Agreement shall be constructed and interpreted and its performance shall
be governed by the laws of California.
----------------------------------------------------------------------------------------------------------------------------------------------
AGREED this day of , 2015.
IC '
(Authorized Signature for Buyer) (Title)
NAME, ADDRESS, & PHONE NUMBER OF FIRE DEPARTMENT:
City of Petaluma Fire Department
198 "D" Street
Petaluma, CA 94952
NAME AND PHONE NUMBER OF PERSON DISBURSING FUNDS:
SIGNED:
(Authorized Dealer)
BY:
(Print)
TITLE:
---------------------------------------------------------------------------------------------------------------------------------------------
FERRARA FIRE APPARATUS, INC.
ACCEPTED this
day of
SIGNED: ------------------------------------ - - - - -- SEAL:
BY: CHRIS FERRARA
TITLE: PRESIDENT/ CEO
7
FERRAR "
F E R R A R A FIRE APPARATUS, INC.
June 1, 2015
John C. Brown, City Manager
City of Petaluma
11 English Street
Petaluma, California 94952
Mr. Brown:
I would like to thank you and the City of Petaluma for allowing Ferrara Fire Apparatus
Inc, to submit our proposal on the new Type I apparatus for the Fire Department,
This letter is to list the warranty times for the apparatus components. The below
warranties will not start until the unit is accepted.
Cab & Chassis Parts & Labor: 2 -year
Body Parts & Labor: 2 -year
Axles: 2 -Year
Engine: 5 -Year
Transmission: 5 -Year
Fire Pump: 5 -Years
Water Tank: Lifetime
Paint: 4 -year
Cab Structure: 10 -year
Body Structure: 10 -year
If you need any additional information, please do not hesitate to let me know.
Sincerely,
Ferrara Fire Apparatus, Inc,
Eric Adams
Apparatus Division
27855 James Chapel Road • P.O. Box 249 • Holden, LA 70744
www.ferrarafnrexom • www.fireequipmentcom •E -mail: erica @ferrarafire.com
Phone 225 - 567 - 7100.800 -443-9006 • Fax 225 -567 -7679