HomeMy WebLinkAbout13-Fire Department
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Larry R. Pitzer, Fire Chief
Subject: Resolution authorizing the Purchasing Manager to
purchase one new Pierce fire apparatus from Pierce
Manufacturing, Inc.; solicit bids to purchase ancillary
equipment and emergency medical services
equipment, and enter into a lease purchase agreement
to fund the purchases and the purchase of two new
street sweepers.
MC/C Meeting Date:
Dept:
Fire
ORIGINAL
Date: August 13, 2003
Synopsis of Previous Council Action:
September 2, 2003
12/07/98
09/20/99
06/05/0 I
Resolution #1998-334: awarding a purchase order to Pierce Manufacturing for the purchase and
delivery of three 4x4 Type III Wildland Engines, to be utilized by the Fire Department of the City
of San Bernardino in accordance with bid specification F 99-23.
Resolution # 1999-234: authorizing the award of a purchase order to Pierce Manufacturing for one
1,500 GPM Triple Combination Pumper in the amount of $281 ,880 and the Purchasing Manager
to solicit lease-purchase quotes under existing master lease agreements and to award a lease
purchase agreement to the lowest responsible lease company.
Resolution #2001-132: authorized the Purchasing Manager to purchase four new fire apparatus
from Pierce Manufacturing, Inc.; solicit bids to purchase ancillary equipment, and enter into a
lease purchase agreement to fund the purchases.
RECOMMENDATION:
I. Adopt resolution.
2. Authorize the Finance Director or designee to I) issue a purchase order to Pierce Manufacturing, Inc. in the
amount of $358,853.83 to purchase one new Pierce fire apparatus; 2) solicit bids to purchase ancillary and
emergency medical services equipment in the amount of $73,000; and 3) enter into a lease purchase
agreement with Sun Trust Leasing for the Pierce Fire Apparatus and Sweepers as outlined in the staff report.
3. Authorize the Finance Director to amend the FY 03-04 budget by appropriating an additional $8,900 from
the Budget End Balance excess to account 001-202-5803.
Contact Person: Larry R. Pitzer. Fire Chief
Supporting data attached: Staff Report and Resolution
FUNDING REQUIREMENTS: Amount:
Source:
Phone: (909) 384-5286
Ward: Citywide
$53.415.94/lease payment per year for 10 years
(Acc" No) CDBG and General Fund
Council Notes:
Finance:
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Agenda Item No. -13
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STAFF REPORT
SUBJECT
Resolution authorizing the Purchasing Manager to purchase one new Pierce fire apparatus from
Pierce Manufacturing, Inc.; solicit bids to purchase ancillary equipment and emergency medical
services equipment, and enter into a lease purchase agreement to fund these purchases and the
purchase of two new street sweepers.
BACKGROUND
The planning and development phase of the Department's new fire station project is well under
way. The new station will provide adequate space for all of our apparatus as well as office space
and living quarters for personnel. The new station will be located within the Verdemont Area;
this will ensure that emergency service delivery is provided in the appropriate response time with
minimal interruptions.
With the completion of the new fire station in the near future, we need to purchase a new fire
engine and related ancillary equipment. Fire is requesting that Pierce Manufacturing, Inc. be
issued a purchase order for the new Pierce fire engine (attachment A). Pierce is the manufacturer
that we have purchased all of the new apparatus from, over the past 5-year period. Pierce builds
excellent fire apparatus and is highly competitive in the market place. Purchasing this apparatus
from South Coast Fire Equipment, Inc. ensures that the Fire Department's engine fleet is
standardized.
Fire apparatus are complicated vehicles to operate each with their own pump panel/control
features and handling characteristics. Providing standardized fire apparatus improves safety for
all persons involved. A standardized engine fleet is less costly and more efficient to maintain
and repair because of training, stocking issues, and quantity discounts. In addition, training
requirements of all the apparatus operators is significantly reduced because of the
standardization.
Pierce Manufacturing, Inc. has superior fire apparatus, advanced technology and a dedicated
support team to serve the firefighting industry. Fire is requesting a selective source approval for
Pierce Manufacturing, Inc. to purchase one new fire engine, pursuant to section 3.04.010B (3) of
the City of San Bernardino Municipal Code.
1
FINANCIAL IMPACT
It is proposed that this new fire engine and related ancillary equipment be financed through a ten-year lease
agreement. Since Sun Trust Leasing was awarded the refinance of several current city leases at the July 21 st
Council meeting, pursuant to their response to Rate Quote Q03-019, Purchasing contacted them to obtain a
quote for the new fire engine and related ancillary equipment. Purchasing also included a request to Sun Trust
to provide a lease quote for the two new sweepers that were just approved at the August 18th Council meeting.
Below is the Sun Trust Leasing proposal for the new fire engine and related ancillary equipment as well as the
two new sweepers:
Sweepers $409,820.00 3.25%
5 Yr. Semi-annual Apr.I,04
10
$44,862.45 $448,624.50
Fire Equip $431,953.83 4.13%
10 Yr. Semi-annual Apr. 1,04
20
$26,707.97 $534,159.40
The interest rates proposed above from Sun Trust are slightly higher than rates quoted and approved in July.
This is because interest rates have started to increase again. Council has the option of either approving the
quote received above from Sun Trust for the fire equipment and sweepers or directing Purchasing to issue a
new request for rate quotes to solicit rates from multiple leasing companies. The only issue with doing a new
request for rate quotes is that it will take some time and if in that time period the interest rates increase then
there will be higher costs to the City. Purchasing has compared the above quoted rates from Sun Trust with
rates issued from the State and they do seem to be in line and therefore it is recommended that the Council
approve the Sun Trust lease. If at any point the City does choose to payoff either of the leases, there would be
a termination administration fee, which would equal about 2% ofthe outstanding principal balance.
It should be noted that although the fire truck will not be delivered for several months the financing needs to be
in place early because there are partial payments that need to be made during the construction of the truck and
the equipment needs to be purchased in advance. All the funding from the leases for the fire equipment and
sweepers will be held in an escrow account earning interest until the payments are required to the vendors. All
the interest earned will be used to fund the lease payment back to Sun Trust.
The lease payment for the sweepers will be made from the Refuse Fund and funds have been approved for FY
03-04. The lease payment for the fire equipment will come from a combination of CDBG and General Fund
monies. The CDBG funds that were saved from the July 21st refinancing of various fire equipment
(approximately $9,500 per year for the next five years) will be used to help pay for this new fire equipment
lease. There was an additional $8,300 per year saved from the July 21 st refinance of General Fund monies that
will also be applied to this new fire lease. For FY 03-04 only an additional $8,900 will be needed from the
General Fund for the lease payment since there is only one payment due in FY 03-04. In FY 04-05 and all
years following, an additional $35,600 per year will be needed since both semi-annual payments must be made
for the fire equipment lease. The City will be seeking CDBG funding to cover these additional future
payments.
RECOMMENDATION
1. Adopt Resolution.
2. Authorize the Finance Director or her designee to 1) issue a purchase order to
Pierce Manufacturing, Inc. in the amount of$358,853.83 to purchase one new
Pierce fire apparatus; 2) solicit bids to purchase ancillary and emergency medical
services equipment in the amount of$73,000; and 3) enter into a lease purchase
agreement with Sun Trust Leasing for the Pierce Fire Apparatus and Sweepers as
outlined in the Staff Report.
3. Authorize the Finance Director to amend the FY 2003-2004 Budget by
appropriating an additional $8,900 from the Budget End Balance excess to
Account No. 001-202-5803.
Attachment HA'~
SUBJECT TO AND MADE A PART OF THAT CERTAIN PROPOSAL DATED AUGUST 20, 2003
LESSEE: CITY OF SAN BERNARDINO, CA
LESSOR: SUNTRUST LEASING CORPORATION
COMMENCEMENT: 5-Sep-2003
STRUCTURE: 20 SEMI-ANNUAL PAYMENTS
1ST PAYMENT DUE: 1-Apr-2004
RATE: 4.1300%
Principal
Payment No. Date Payment Principal Interest Balance
0 5-Sep-2003 $ $ $ $ 431,953.83
1 1-Apr-2004 $ 26,707.97 $ 16,396.06 $ 10,311.90 $ 415,557.77
2 1-0ct-2004 $ 26,707.97 $ 18,052.52 $ 8,655.44 $ 397,505.24
3 1-Apr-2005 $ 26,707.97 $ 18,428.53 $ 8,279.44 $ 379,076.71
4 1-0ct-2005 $ 26,707.97 $ 18,812.37 $ 7,895.60 $ 360,264.34
5 1-Apr-2006 $ 26,707.97 $ 19,204.20 $ 7,503.76 $ 341,060.14
6 1-Oct-2006 $ 26,707.97 $ 19,604.20 $ 7,103.77 $ 321,455.94
7 1-Apr-2007 $ 26,707.97 $ 20,012.52 $ 6,695.44 $ 301,443.42
8 1-Oct-2007 $ 26,707.97 $ 20,429.35 $ 6,278.61 $ 281,014.07
9 1-Apr-2008 $ 26,707.97 $ 20,854.87 $ 5,853.10 $ 260,159.20
10 1-Oct-2008 $ 26,707.97 $ 21,289.24 $ 5,418.72 $ 238,869.96
11 1-Apr -2009 $ 26,707.97 $ 21,732.66 $ 4,975.30 $ 217,137.29
12 1-Oct-2009 $ 26,707.97 $ 22,185.32 $ 4,522.64 $ 194,951.97
13 1-Apr-2010 $ 26,707.97 $ 22,647.41 $ 4,060.56 $ 172,304.56
14 1-Oct-2010 $ 26,707.97 $ 23,119.12 $ 3,588.84 $ 149,185.44
15 1-Apr-2011 $ 26,707.97 $ 23,600.66 $ 3,107.31 $ 125,584.78
16 1-Oct-2011 $ 26,707.97 $ 24,092.22 $ 2,615.74 $ 101,492.56
17 1-Apr-2012 $ 26,707.97 $ 24,594.03 $ 2,113.94 $ 76,898.53
18 1-Oct-2012 $ 26,707.97 $ 25,106.29 $ 1,601.68 $ 51,792.24
19 1-Apr-2013 $ 26,707.97 $ 25,629.21 $ 1,078.75 $ 26,163.03
20 1-Oct-2013 $ 26,707.97 $ 26,163.03 $ 544.94 $
Total $ 534,159.40 $ 431,953.83 $ 102,205.57
FIRE TRUCK
SUBJECT TO AND MADE A PART OF THAT CERTAIN PROPOSAL DATED AUGUST 20, 2003
LESSEE: CITY OF SAN BERNARDINO, CA
LESSOR: SUNTRUST LEASING CORPORATION
COMMENCEMENT: 5-Sep-2003
STRUCTURE: 10 SEMI-ANNUAL PAYMENTS
1ST PAYMENT DUE: 1-Apr-2004
RATE: 3.2500%
Principal
Payment No. Date Payment Principal Interest Balance
0 5-Sep-2003 $ $ $ $ 409,802.00
1 1-Apr-2004 $ 44,862.45 $ 37,180.46 $ 7,681.99 $ 372,621.54
2 1-0ct-2004 $ 44,862.45 $ 38,766.21 $ 6,096.25 $ 333,855.33
3 1-Apr-2005 $ 44,862.45 $ 39,400.44 $ 5,462.01 $ 294,454.90
4 1-0ct-2005 $ 44,862.45 $ 40,045.04 $ 4,817.41 $ 254,409.85
5 1-Apr-2006 $ 44,862.45 $ 40,700.20 $ 4,162.25 $ 213,709.65
6 1-0ct-2006 $ 44,862.45 $ 41,366.07 $ 3,496.38 $ 172,343.58
7 1-Apr-2007 $ 44,862.45 $ 42,042.84 $ 2,819.61 $ 130,300.74
8 1-0ct-2007 $ 44,862.45 $ 42,730.68 $ 2,131.78 $ 87,570.07
9 1-Apr-2008 $ 44,862.45 $ 43,429.77 $ 1,432.68 $ 44,140.30
10 1-0ct-2008 $ 44,862.45 $ 44,140.30 $ 722.15 $
Totals $ 448,624.50 $ 409,802.00 $ 38,822.50
STREET SWEEPER
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE PURCHASING MANAGER TO PURCHASE ONE
NEW PIERCE FIRE APPARATUS FROM PIERCE MANUFACTURING, INC.; SOLICIT
BIDS TO PURCHASE ANCILLARY EQUIPMENT AND EMERGENCY MEDICAL
SERVICES EQUIPMENT, AND ENTER INTO A LEASE PURCHASE AGREEMENT TO
FUND THESE PURCHASES AND THE PURCHASE OF TWO NEW STREET
SWEEPERS.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
SECTION I. Pierce Manufacturing, Inc. is the selected vendor for furnishing onc new
Pierce fire apparatus for the Verdemont Fire Station. Pursuant to this determination, the Purchasing
Manager is hereby authorized and directed to issue a Purchase Order to Pierce Manufacturing, Inc.
for one new Pierce apparatus in the total amount of $358,853.83.
SECTION 2. The Purchasing Manager is also authorized to solicit bids to purchase ancillary
and emergency medical serviccs equipment in the total amount of$73,000.
SECTION 3. The Purchasing Manager is also authorized to obtain a Master Lease with Sun
Trust Leasing to fund the apparatus, ancillary equipment, and emergency medical service
equipment in the total amount of $431 ,853.83 over a ten-year period.
SECTION 4. The Purchasing Manager is also authorized to obtain a Master Lease with Sun
Trust Leasing to fund the purchase of two new street sweepers as authorized by the Mayor and
Common Council on August 18, 2003, in the total amount of $409,820.00 over a five-year period.
SECTION 5. The authorization to execute the above referenced purchase order and lease
agreements is rescinded if it is not issued within sixty (60) days of the passage of this resolution.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE PURCHASING MANAGER TO PURCHASE ONE
NEW PIERCE FIRE APPARATUS FROM PIERCE MANUFACTURING, INC.; SOLICIT
BIDS TO PURCHASE ANCILLARY EQUIPMENT AND EMERGENCY MEDICAL
SERVICES EQUIPMENT, AND ENTER INTO A LEASE PURCHASE AGREEMENT TO
FUND THESE PURCHASES AND THE PURCHASE OF TWO NEW STREET
SWEEPERS.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and
Common Council of the City of San Bernardino at a
meeting thereof, held on the
day of
,2003, by the following vote, to wit:
Council Members:
AYES
NAYS
ABSTAIN ABSENT
ESTRADA
LONGVILLE
McGINNIS
DERRY
SUAREZ
ANDERSON
McCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
day of
,2003.
Judith Valles, Mayor
City of San Bernardino
Approved as to form
and legal content:
James F. Penman
City Attorney
By:
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Nays
Item # 13
Kr
Resolution #
Abstain ,.-e7
'2co3- 2- Y 9
Meeting Date (Date Adopted): q - "2 -0':'
Vote:
Ayes \ .'\
Absent -B-
Change to motion to amend original documents:
Reso. # On Attachments:- Contract term: -
Note on Resolution of Attachment stored separately: -
Direct City Clerk to (circle 1): PUBLISH, POST, RECORD W/COUNTY By:
Null/Void After: fco DP7 ~ f 11- 3--O'S
Date Sent to Mayor: C( - ;., -() 3,
Date cf Mayor's Signature: '9' - A.0 ~
Reso. Log Updated: /
Seal Impressed: /
Date of Clerk/CDC Signature:
c:~ 1\ ,..
(--,-c')..-i)
Date Memo/Letter Sent for Signature:
'-
60 Day Kem1nder Lener 5em UII 36th IIsJ)
See Attached:
See Attached:
See Attached:
Date Returned:
90 Day Reminder Letter Sent on 45th day:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Yes ...L No By
Yes No -.L By
Yes NoL By
Yes NO-5 By
Yes No By
Copies Distributed to:
City Attorney V Code Compliance
Finance /'
Others: ~(R-E
MIS
Dev. Services
EDA
Parks & Rec.
Police
Public Services
Water
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc,)
Ready to File: ~
Date:
Revised 01/12/01