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Home My WebLink About16 - 05BA-032 - Purchase of Three Fire EnginesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 December 14, 2004 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department David E. Niederhaus, Director, 949 - 644 -3055 dniederhaus @city.newport- beach.ca.us SUBJECT: Sole Source Purchase of Three Fire Engines ISSUES: Should the City waive the competitive bidding process and purchase three fire engines from a sole source? RECOMMENDATIONS: Authorize the purchase of three fire engines from American LaFrance of Los Angeles for a purchase price of $1,026,759; and Approve a budget amendment in the amount of $31,759 to fund the additional cost of the engines due to an upgrade of the body composition and increases in material costs. DISCUSSION: The City operates a fleet of 12 fire engines and two ladder trucks. Eight of the engines are frontline apparatus units, three are used as reserve engines, and the last unit is used as a reserve rescue squad, placed into service when one of the two ladder trucks is out of service. In November of 2000, the Council approved the purchase of three fire engines from American LaFrance. Staff from the General Services and Fire Departments made this recommendation to Council based upon proposals received from various major fire equipment manufacturers and a review of performance specifications, cab design, and equipment warranty. An additional factor was the difficulty in operating and maintaining five different brands of fire engines, as was occurring at that time. Sole Source Purchase of Three Fire Engines December 14, 2004 Page 2 The proposal from American LaFrance (ALF) was superior to the others in terms of engine turning radius and maneuverability, a low- profile cab design allowing the engines to fit in every fire station in the City, and a more comprehensive warranty program than offered by the other vendors. The three engines were placed into service in September 2001. Two additional engines were sole source purchased from ALF in May 2003 at comparable prices. These engines were placed into service in May of this year. Consequently, five of the eight frontline engines are now ALF units. The FY 03 -04 Budget included funding for two more engines. The purchase was delayed until the previous two units arrived, were placed into service, and could be evaluated. Funding was carried into this FY, as another engine is included for purchase in this year's budget. Therefore, staff's intention is to sole source purchase three engines at this time. Photos of one of the current engines is included as Attachment A. Staff is seeking approval to purchase the engines from ALF for a total price of $1,026,759, including tax. There are a number of reasons to waive competitive bidding and approve a sole source purchase. One, General Services and Fire Department staffs have benefited from the standardization of the fire equipment. For maintenance, having five similar units makes troubleshooting problems easier, without requiring extra time because of the manufacturers' different types of systems on these complex pieces of equipment. It is also easier to stock and obtain parts. Operationally for the Fire Department, it means that personnel assigned to different stations operate similar equipment when on emergency calls. As noted earlier, there have been as many as five different brands of fire engines in the fleet at the same time. Secondly, American LaFrance has diligently worked with City staff to improve upon their product and delivery date. The firm has offered a different body made of extruded aluminum, which will provide more body rigidity and a longer lifespan. ALF has also approved the City's condition for a $250 per day penalty after 300 days on the delivery of these units and $500 per day penalty after 330 days. The offer by ALF is contained in their letter dated December 3, 2004 (Attachment B). Staff requested ALF to include a City E -One engine as a trade -in allowance toward the purchase of these units, but ALF has declined. ENVIRONMENTAL REVIEW: This action requires no environmental review, as it is not a project pursuant to CEQA. Sole Source Purchase of Three Fire Engines December 14, 2004 Page 3 FUNDING AVAILABILITY: The FY 04 -05 Budget includes $995,000 for the purchase of three units, $31,759 less than the cost of the engines. Consequently, a budget amendment is requested for this amount to fund the increase in cost of the units. There are sufficient reserves in the Internal Services Fund for Equipment Replacement to fund the additional expense. SUMMARY: General Services and Fire Department staffs recommend waiving competitive bidding and approval of the sole source purchase of three fire engines from American LaFrance of Los Angeles for $1,026,759, based upon operational and maintenance efficiencies gained through equipment standardization. Prepared by: Mike Pisani Deputy General Services Director Submitted by: David E. Niederhaus General Services Director Attachments: (A) Photographs of American LaFrance fire engine (B) Offer letter from American LaFrance of Los Angeles dated November 30, 2004 (C) Budget Amendment Form ��, ,re, yj. � i _ ... __ American LaFrance of Los Angeles December 3, 2004 Newport Beach Fire Department P.O. Box 1768 Newport Beach, CA 92658 Dear Sirs: 13800 Valley Boulevard American LaFrance of Los Angeles of 13800 Valley Boulevard in Fontana, California, an Authorized Dealership for American LaFrance Corporation Fontana. CA 92335 of 8500 Palmetto Commerce Parkway in Ladson, South Carolina, a phone: (909) 606 -9100 subsidiary of Freightliner, LLC, are pleased to submit the enclosed proposal fax: (909) 606 -6820 for 1 to 3 American LaFrance Custom Fire Apparatus. w w.americanlafrance.com We have reviewed your specifications and our proposed specifications dated 11/23/04 have been tailored around your parameters. We are confident that you will find the proposed equipment meets the design, quality, and performance criteria of the apparatus indicated in your specification. Our proposed apparatus includes an American LaFrance Custom Pumper, American LaFrance Custom Eagle Low Profile, Aluminum Formed Fire Apparatus Body, American LaFrance Eagle Low Profile 134 Cab Four - Door Custom Chassis, Waterous CM 1250 gpm (2) Two Stage Fire Pump, United Plastic Fabricating (UPF) 500 Gallon Polypropylene Water Tank, Foam Pro 2001 with a 20 Gallon Polypropylene Foam Tank, and miscellaneous loose equipment as specified within our proposal. Our net price F.O.B. Newport Beach, CA is Three Hundred Twenty Three Thousand, Three Hundred Three Dollars and Zero Cents. ($ 323,303.00). Note: Prices listed are less any applicable local, state or federal taxes, which may be applied to the apparatus proposed. These items if applicable, shall be paid by the City of Newport Beach. The unit proposed will be completed within approximately 280 -300 calendar days after award and signing of the contract or receipt of an approved purchase order. All prices shall remain valid for Forty -Five (45) calendar days from the date of this offer letter. Terms are per enclosed standard contract. Contract payment of One Hundred (100 %) of the purchase price shall be paid upon delivery and training on the completed apparatus. American LaFrance of Los Angeles shall agree to deduct an amount of $7,000.00 from the amount quoted within this letter for the purchase of, two (2) Custom Pumpers. If the City desires to purchase a third (3) Custom Pumper, American LaFrance of Los Angeles will deduct an amount of $10,000.00, resulting in a total of $17,000.00 savings for the purchase of three (3) American LaFrance Custom Pumpers. A Division of Los Angeles Freightliner (Note: Trucks must be ordered on the same Purchase Order to receive this Special pricing) Since delivery delays beyond the Contract/Purchase Order delivery date will result in added expense, the City of Newport Beach shall be paid damages for such delay. Inasmuch as the amount of damage is extremely difficult to ascertain, American LaFrance of Los Angeles agrees to compensate the City in the amount of $250.00 per day per unit for delivery beyond 300 days following the date of issuance of a City Purchase Order, and $500.00 per day per unit for delivery following 330 days of the Purchase Order date. These amounts shall be fixed as liquidated damages that the City will suffer by reason of such delay, and not as a penalty. The City still have the right to deduct and retain the amount of such liquidated damages from any monies due American LaFrance of Los Angeles. American LaFrance of Los Angeles will deliver the completed apparatus to Newport Beach, California. American LaFrance of Los Angeles would like to make available to the City of Newport Beach Fire Department and any interested neighboring communities or any Fire Protection Agencies within the State of California, an add -on purchase program to enable the securing of additional apparatus at a fixed cost for anticipated future purchases. This program will guarantee that purchases identical to the City of Newport Beach Fire Department apparatus can be made at the above price until November 23, 2005. The price of such additional apparatus after this date (for a period of one (1) year) will be calculated by the percentage of ( %) increase as listed by the US Department of Labor Bureau of Labor Statistics Producer Price Index (PPI), Series #PCU3713 #2A Emergency Vehicles and Hearses #8212. Should American LaFrance of Los Angeles be the successful bidder, a Sales Drawing of the apparatus proposed will be provided upon completion of a Pre - Construction Conference within approximately forty -five (45) calendar days after the award. At this time, a Reference Sales Drawing has been provided for your review. The Authorized Single Source Service and Warranty Center for American LaFrance Corporation is American LaFrance of Los Angeles located at 13800 Valley Boulevard in Fontana, California, 92335 at (888) 514 -FIRE (3473). American LaFrance of Los Angeles has EVT Certified Mechanics dedicated to Maintenance, Service and Warranty for the Fire Apparatus Service. American LaFrance of Los Angeles has EVT Certified Mechanics for Pumps, Aerials Ladders, and Aerial Platforms as well as Technicians specializing in Cab, Chassis, Engine, Transmission, Drivetrain, Brakes, HVAC and Electrical Systems. In addition to providing service at our local service facility, American LaFrance of Los Angeles has Mobile Service Trucks dedicated to road service for Fire Apparatus. These Mobile Service Vehicles also have complete on -board systems for complete on -site servicing of lubricants, filters, etc. American LaFrance of Los Angeles will support the Fire Apparatus Service with 24/7 telephone call service for include diagnostic support, out of service and parts availability. American LaFrance of Los Angeles also serves as our local warehouse for replacement parts for the proposed apparatus. Many of the parts used in our Fire Apparatus are Freightliner components, already stocked at the local dealership. American LaFrance offers the state of the art technical training for the Emergency Vehicle Technicians. A qualified and certified factory instructor dedicated to teaching courses in both theory and hands -on. Courses include American LaFrance Service & Maintenance, American LaFrance Multiplexing, American LaFrance Fire Pump Repairs, and Testing, American LaFrance Aerial Device, American LaFrance Ambulance Service & Maintenance. Subjects covered include familiarization, location and operation of components, electrical and electric diagnostics, maintenance, repair, troubleshooting and testing, including hands -on pump service testing. Additional training includes self - directed video training on the American LaFrance Eagle Custom Chassis, American LaFrance Metropoilitan Custom Chassis and Freightliner Business Class Commercial Chassis. Also available to the Technician is Freightliner technical training and self - directed training covering basic electrical, HVAC, brakes, Drivetrain, axles, suspension and more. Training is provided at our dedicated training center at American LaFrance Corporate Headquarters located in Ladson, South Carolina, also in Cleveland, North Carolina or at our local American LaFrance of Los Angeles dealership training facility. Thank you for the opportunity to submit our proposal for your consideration. Should you have any questions about our proposal, please feel free to contact our Sales Representative Mr. Jonathon Holmes at (909) 606 -9100 or contact us here at the office. incerely, of LOS ANGELES Anathan Holmes Sales Representative City of Newport Beach NO. BA- 032 BUDGET AMENDMENT 2004 -05 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations AJW Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: AMOUNT: $31,759.00 Increase in Budgetary Fund Balance X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance To increase expenditure appropriations related to the purchase of three fire engines. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 610 3605 Equipment Fund Fund Balance REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Division Account Division Account Division Account Division Account Signed: Signed: Signed Description Services Director Administrative Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $31,759.00 * rmrrfma $31,759.00 Date 6 D Date Description Number 6110 Equipment Number 9100 Rolling Equipment Number Number Number Number Number Number Services Director Administrative Approval: City Manager City Council Approval: City Clerk Amount Debit Credit $31,759.00 * rmrrfma $31,759.00 Date 6 D Date