Report Prepared by: Jeremy Franklin, Battalion Chief, Fire Department
Title
SUBJECT: Adoption of a Resolution Authorizing the Purchase of a Stock Unit (Type 1 Fire Engine) in an Amount not to Exceed $1,800,000; and Approve a Supplemental Appropriation From Fund 2001-(Former) Measure “C” in the Same Amount
REPORT IN BRIEF
Consider adopting a Resolution to purchase a Stock Unit (Type 1 Fire Engine) in an amount not to exceed $1,800,000; and approve a supplemental appropriation from Fund 2001- (Former) Measure “C” in the same amount.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting Resolution 2024-86, a Resolution of the City Council of the City of Merced, California, Declaring the Infeasibility of Using Public Bidding to Purchase a Type 1 Fire Engine and Fire Apparatus and Authorizing Limited Direct Purchases; and,
B. Waiving the City’s competitive bidding requirement permitted by Merced Municipal Code Section 3.04.210 due to infeasibility of using public bidding; and,
C. Approving a supplemental appropriation of up to $1,800,000 from Fund 2001-(Former) Measure “C”; and,
D. Authorizing the Purchase of a Stock Unit (Type 1 Fire Engine) in an amount not to exceed $1,800,000; and,
E. Authorizing the City Purchasing Supervisor to issue Purchase Orders for the purchase and any transfer fees or California sales taxes; and,
F. Authorizing the City Manager to execute any necessary contracts or documents; and,
G. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Merced City Charter Section 200.
MMC Article III. - Purchases Over Thirty-Eight Thousand Dollars.
CITY COUNCIL PRIORITIES
Public safety as provided for in the FY 24/25 adopted budget.
DISCUSSION
Background
One of the Merced Fire Department’s goals is to “Provide the highest level of emergency response consistent with the identified community needs and expectations.”
Fire apparatus (engines and trucks) are the single most important piece of equipment that allow fire personnel to provide emergency services to our community. They carry firefighters and their equipment to the scene to provide the level of service that our community has come to expect.
The Fire Departments’ fleet consists of eight engines and two ladder trucks. Currently the Fire Department does not have a funded replacement plan. Industry standard is to replace apparatus between 10-15 years depending on usage. To be fiscally responsible, the Fire Department has implemented a twenty-year replacement schedule. As of today, the Fire Department has two fire engines and one ladder truck over twenty years old.
Age of the apparatus coupled with the unit’s mileage and hours create Out of Service (OOS) time. These units are constantly in the shop for repairs. This increases service cost plus time unavailable for operation. Please see the chart below for a visual representation.
MFD Apparatus Data
|
Apparatus |
Type |
Year |
Mileage |
Hours |
2023 OOS Days |
OOS |
|
F909 |
Engine |
2001 |
117,004 |
13,000 |
191 |
52.3% |
|
F1052 |
Engine |
2006 |
130,595 |
11,575 |
74 |
20.2% |
|
F1212 |
Engine |
2008 |
126,064 |
12,116 |
40 |
10.9% |
|
F1213 |
Engine |
2008 |
128,461 |
11,770 |
56 |
15.3% |
|
F888 |
Truck |
2001 |
91,119 |
12,124 |
82 |
22.5% |
Historically, the Fire Department has entered into single source agreements with Golden State Fire Apparatus to provide custom fire apparatus tailored to the needs of our community. While they have been purchased waiving the completive bid process for a single source their price has been competitively bid through the Houston-Galveston Area Council (H-GAC) cooperative purchasing agreement. This process has worked extremely well for providing fire apparatus, but due to many industrial factors the timeline for construction has increased significantly. Build lead times have grown to 45-48 months. With these lead times this pushes three more engines past twenty years of service by the time their replacements would be built. This timeline of almost four years to receive an apparatus coupled with the lack of funding of a replacement schedule for our apparatus has placed us in a difficult position. See the chart below for apparatus in need of replacement.
MFD Apparatus Age Breakdown
|
Apparatus |
Type |
Purchase Year |
Current Age |
Age At Replacement (48 month build time) |
|
F909 |
Engine |
2001 |
23 |
27 |
|
F1052 |
Engine |
2006 |
18 |
22 |
|
F1212 |
Engine |
2008 |
16 |
20 |
|
F1213 |
Engine |
2008 |
16 |
20 |
|
F888 |
Truck |
2001 |
23 |
27 |
The Fire Department is requesting to take a two-prong approach to solving this problem. Manufacturers though their dealers offer stock units for purchase on a monthly basis. These units change every month and are sold on a first come first serve basis. Due to the lead time issues these units are in high demand. To attempt to purchase one of these units the Fire Department would need councils’ authority to sign for the purchase the moment one becomes available. If successful in purchasing a stock unit, it would be delivered in six months. The positive side of purchasing a stock unit is decreasing the lead time from 45-48 months down to 6 months. The negative side of purchasing a stock unit is not being able to customize the apparatus to the needs of the community and losing the prepayment discount. The prepayment discount amounts to 10% of the purchase price.
The purchase of a stock unit will assist our fleet while a lease option is being explored to establish a replacement schedule. Upon the establishment of a replacement schedule an additional three engines and one truck will need to be purchased to maintain our current fleet. Analysis of the lease option will include apparatus for the proposed new Fire Station. Station 56 is in the development process and when open will increase our apparatus needs by an engine and truck. If it is included in the lease option the purchase would be for four engines and two trucks. Establishing a replacement schedule and ordering apparatus through the traditional method has two benefits. One is financial savings (10% prepayment discount), and the second is the customization to match the needs of our community. This method serves the citizens the best while maintaining fiscal responsibility.
Stock units typical will be released to the dealers on the third of every month. The Fire Chief will need the ability to be able to sign for the purchase the moment they become available. The availability of units’ changes from month to month which would mean that a unit that meets the needs of the community may not be available the first month. Due to this factor, we are requesting that approval of the resolution be granted until June 2025 to ensure that we find a unit that as closely as possible matches the needs of our community. The $1,800,000 requested includes the purchase of the Fire Engine, additional equipment required to stock the engine, and any associated taxes.
Timeline:
8/19/24 Council Motions to Approve All Recommendations
9/3/24 Stock unit become available.
9/3/24 Fire Chief will sign for the purchase if apparatus meets needs of community (If no units meet the need of the community all timelines will be pushed back a month)
9/3/24 Purchase Order is Issued Not to Exceed $1,800,000
9/3/24 If purchase is successful an invoice will be created for payment.
3/3/25 Delivery of stock unit to the Department
IMPACT ON CITY RESOURCES
A supplemental appropriation is needed from Fund 2001-(Former) Measure “C”.
This supplemental appropriation will require an affirmative vote of five Council Members to pass.
ATTACHMENTS
1. Resolution 2024-86