City Council Meeting - FINAL


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  6.B.       
Meeting Date: 07/06/2021  
Co-Submitter: Mark Wilson

Information
TITLE:
Consideration and Approval of Cooperative Purchase Contract: Purchase of All-Risk Velocity Fire Engine from Hughes Fire Equipment, Inc. in the amount of $749,343.27.
STAFF RECOMMENDED ACTION:
  1. Approve the cooperative purchase contract of a new Pierce Manufacturing, Inc. All-Risk Velocity Fire Engine in the amount of $749,343.27 from Hughes Fire Equipment, Inc. through a cooperative purchase contract with the City of Mesa; and
  2. Authorize the City Manager to execute the necessary documents.
Executive Summary:
Hughes Fire Equipment, Inc., is a fully authorized dealer of Pierce Manufacturing, Inc. products such as the All-Risk Velocity Fire Engine. The City of Mesa has a cooperative purchase contract with Pierce Manufacturing to purchase their products. This purchase of an All-Risk Velocity Fire Engine would replace a twenty (20) year old All-Risk fire engine that currently serves in the front line of the Flagstaff Fire Department (FFD) fleet and move that twenty (20) year old unit into a reserve status. This also puts a current twenty-four (24) year old reserve fire engine out of service and up for auction.  This unit is part of the FLEET adopted apparatus replacement plan. This new All-Risk Velocity Fire Engine would go into one of the three (3) heaviest call volume districts in the City's central corridor.
Financial Impact:
The funding for this new All-Risk Velocity Fire Engine was approved by the Fleet committee, Budget Team, City Manager and City Council as part of the current fiscal year budget. The approved amount was for $700,000.00 and this purchase proposal exceeds that by $49,343.27 due to a significant and unforeseen increase in the cost of steel. The remaining funds needed will be determined and reallocated by the Budget Team. If we do not purchase this unit before August 1, 2021, another steel increase of $40,000-$50,000 will be added to a new quote.
Policy Impact:
FFD recently revised policy to reduce the wear and tear on the largest and most expensive apparatus called Quints (large aerial ladder trucks). To do this, we implemented co-staffing which requires the station crew to determine which unit is most needed based on the call type and respond appropriately. By purchasing this All-Risk Velocity Fire Engine, it will put the twenty (20) year old unit into reserve status and allow for most of the calls in that district to be handled by the new engine. This keeps the added response miles off the Quint and allows our annual apparatus maintenance costs to better stay within budget.
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
PBB 
Safe & Healthy Community
 - Provide public safety with the resources, staff and training to respond to community needs
High Performing Governance
- Serve the public by providing high quality internal and external service

Regional Plan:
Goal PF.3. Provide high-quality emergency response and public safety services including law enforcement, fire, medical, and ambulance transport service. Policy PF.3.1. Maintain high-quality effectiveness and efficiency in law enforcement, fire, and emergency services to the extent that is consistent with governmental operations, plans, public policies, population served, and monies available.
Has There Been Previous Council Decision on This:
Funding and replacement was approved as part of the annual FY 2021-22 budget.
Options and Alternatives:
1. Approve the cooperative purchase contract with Hughes for the new Pierce All-Risk Velocity Fire Engine; or
2. Reject the cooperative purchase contract and staff conducts a procurement process; or
3. Reject approval of the purchase of the new engine and continue response in a twenty-one-year-old All-Risk fire engine.
Background/History:
The national standard for fire engine replacement from front-line service ranges between 10-20 years base on use and typical geographical response. During the recession, the City of Flagstaff moved the replacement of engines up to twenty-five (25) years to reduce capital expenses. Currently, Fleet has moved this back to twenty (20) years due to significant maintenance costs and downtime seen by these older units. The Fleet Committee, City Manager's office and Budget Team has voiced a preference to replace our aging engines with a new one every two years for the next six (6) years (3 new engines) to get us back on pace for normal twenty (20)-year replacement. This is the second of those three (3) new fire engine requests. We have chosen to stay with Pierce as our only fire engine manufacturer due to longevity, quality, maintenance, and overall fleet consistency.

Purchasing staff reviewed the agency contract and amendment to confirm validity of the terms and similar scope. The Cooperative Purchase Contract from Mesa conforms with City procurement rules. Purchasing staff worked with contractor to develop the draft City of Flagstaff Cooperative Purchase Contract attached herein.
Key Considerations:
The FFD apparatus replacement schedule anticipated saving capital expenses by refurbishing every other engine. We replaced an older fire engine with a new-refurbished engine in FY18. This engine has needed $50k worth or work in the first three (3) years of its life at FFD. In addition, the next two (2) engines identified as possible refurbishment options are both nineteen (19)-years old and Fleet has determined the frames have significant rust damage from the over the road chemicals and are not candidates for refurbishment. Based on these findings, future new engines are recommended to be purchased new.

This represents number two (2) replacement of three (3) approved by the FLEET and Budget Team in the five (5)-year plan.  We currently utilize smaller rescue units for the highest call volume districts to reduce to wear and tear on larger fire engines. We also have implemented the co-staffing model to reduce the wear and tear on our most expensive apparatus, known as Quints. This unit is a model down from our normal Pierce fire engine to reduce overall costs, but still maintains consistency in function and maintenance and matches our most recent new fire engine from 2020.
Expanded Financial Considerations:
Funds for this purchase are available in account # 001-03-051-0203-2-4401 (Rolling Stock-Fleet) and are spread out with $350,000 allocated per year fiscal year, but funded with 5-year funding for a lump sum payment if needed. 
Community Benefits and Considerations:
Purchasing a new All-Risk Velocity Fire Engine allows our response efforts to be consistent in meeting our mission and the community expectations for public safety response. This purchase will also reduce the amount of time we have to put crews responding to emergency incidents in older reserve apparatus due to aging front line units going out of service for mechanical issues. 
Community Involvement:
Inform
Expanded Options and Alternatives:
N/A
Attachments
New Engine Spec Sheet
New All-Risk Engine Picture
2022-04 COF Coop Engine Contract
Exhibit A - Quote
Exhibit B - Mesa Master Agreement


    

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