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HomeMy WebLinkAbout11A. 22-459NOVEMBER 9, 2022 22-459 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: AMEND 2022 CAPITAL IMPROVEMENT PLAN AND APPROVE PURCHASE FOR ACQUISITION IN 2025 FROM FIRE APPARATUS & EQUIPMENT INC. OF A FIRE APPARATUS FOR FIRE DEPARTMENT ($1,100,000.00) INITIATED BY: PURCHASING DIVISION WHEREAS, the 2025 Capital Improvement Program (CIP) includes a placeholder of $1,100,000.00 for a fire apparatus for the Fire Department; and WHEREAS, staff is recommending that the 2022 Capital Improvement Plan be amended to move this project from 2025 to 2022; and WHEREAS, the Oshkosh Fire Department has previously studied and recommended Pierce equipment available through Fire Apparatus & Equipment Inc. for fire apparatus and due to concerns for compatibility and standardization with other Department equipment recommends purchasing additional Pierce equipment; and WHEREAS, Section 12-11 of the Municipal Code provides that subject to approval of the City Manager, purchases may be made without following a formal competitive bidding process when standardization or compatibility is an overriding consideration. NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Oshkosh that the 2022 Capital Improvements Budget, on file in the City Clerk’s Office, is hereby amended to increase the 2022 CIP budget by $1,100,000.00 for purposes of making this purchase. BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed pursuant to Section 12-11 of the Oshkosh Municipal Code to purchase the fire apparatus from: NOVEMBER 9, 2022 22-459 RESOLUTION CONT’D Fire Apparatus & Equipment, Inc. 5793 Grande Market Drive, Suite C, Appleton, WI 54913 Total: $1,100,000.00 BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to enter into an appropriate agreement for the purpose of same. Money for this purpose is hereby appropriated from: Acct. No. 3230230 7210 66001 Equipment Fund- Fire Apparatus- Engines, Pumpers, Aerials City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us TO: Honorable Mayor and Members of the Common Council FROM: Jon G. Urben, General Services Manager DATE: November 1, 2022 RE: Amend 2022 Capital Improvement Plan and Approve Purchase for Acquisition in 2025 from Fire Apparatus & Equipment Inc. of a Fire Apparatus for Fire Department ($1,100,000.00) BACKGROUND In 2019 the Common Council waived the bid requirements for the purchase of two fire engines and allowed the Fire Department personnel to review, test and recommend the purchase of equipment best meeting the operational and safety needs of the Department. At that time Fire Department staff established a committee to develop specifications for replacement fire engines. After developing criteria and reviewing several different fire engines, the committee determined that a Pierce Manufacturing Inc. engine with a Velocity chassis and the Pierce Ultimate Configuration (PUC) would best meet the needs of these units. By utilizing Pierce apparatus for all front-line service needs this standardization has proved critical for safe and efficient operation under emergency situations as well as efficiency in the maintenance of the units. As a result of this review and these standardization recommendations, in 2019 the Common Council approved the purchase of the Pierce engines and apparatus to replace two of the five fire engines. As you may recall, this past year Fire Department staff identified the need to replace their 2013 fire apparatus in the 2025 CIP with $1,100,000 assigned for this replacement. The 2013 fire apparatus has experienced several major maintenance issues in the past year that has taken it out of service for days at a time. Fire Department staff recommend continuing with the Pierce apparatus as a replacement for this unit. ANALYSIS The current Pierce apparatus have proven to be very reliable and any service or warranty issues are dealt with promptly and efficiently at Fire Apparatus and Equipment Inc. – Pierce’s exclusive franchise dealer in Appleton, WI. It is once again the consensus of the committee and Fire Chief Mike Stanley that the Pierce apparatus noted above be recommended for the 2013 unit replacement. Additionally, to meet the Fire Department’s goal to continue to ensure operational and maintenance compatibility and standards for their fire apparatus fleet moving forward, Purchasing concludes another Pierce apparatus purchase would qualify as a standardization/sole source exception to our purchasing ordinance. Order discussions with Pierce confirmed that the delivery time from the order being placed is currently thirty months. Thus to receive a fire apparatus in 2025 an order would need to be placed early in 2023. Additionally, all orders after November, 2022 will be subject to a 7% rate increase which would amount to approximately $77,000.00. FISCAL IMPACT The 2025 CIP has a placeholder of $1,100,000 for the replacement of the 2013 unit. To avoid an estimated 7% cost increase for any orders placed after November, 2022 and to address the longer manufacturing lead time so the apparatus is completed by 2025, staff is recommending that the 2022 Capital Improvement Plan be amended to move this project from 2025 to 2022 and decrease the projected 2025 CIP budget by $1,100,000.00. Financing for this unit will be obtained from the issuance of 2025 General Obligation debt proceeds. Payment is not due until delivery of the fire engine, which will not occur until 2025. Funding for this purchase would be charged to 2022 CIP A/N#: 3230230 7210 66001 (Equipment Fund- Fire Apparatus- Engines, Pumpers, and Aerials). Once approved, Purchasing will issue a purchase order for this new unit. RECOMMENDATION Section 12-11 of the Municipal Code provides that subject to approval of the City Manager, purchases may be made without following a formal competitive bidding process when the purchase is from only one source of supply or when standardization or compatibility is the overriding consideration. In accordance with Section 12-11 of the Municipal Code and with approval by the City Manager, Purchasing recommends the Common Council amend the 2022 Capital Improvement Plan and approve this purchase from Fire Apparatus & Equipment, Inc., 5793 Grande Market Drive, Suite C, Appleton, WI 54913, in the amount of $1,100,000.00. Respectfully Submitted, Approved: Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager