REPORT TO COUNCIL
SUBJECT
Title
Award of Contract for Three Quintuple Combination Fire Service Apparatus (F15-02)
Report
REPORT IN BRIEF
Approval is requested to award a contract to Ferrara Fire Apparatus of Holden, Louisiana in the amount of $2,501,198, excluding sales tax and including a trade-in allowance of $80,000, for three fire service apparatus. Approval is also requested for a 2% contingency in the amount of $51,624. Contingencies are typically not requested for vehicle bids, but historically a nominal amount has been requested for fire rigs in order to make minor required modifications during the manufacturing process.
ENVIRONMENTAL REVIEW
N/A
BACKGROUND AND DISCUSSION
Economic operation of the City's fleet requires that vehicles be replaced before operating costs become excessive. This year the fleet replacement schedule includes a 14-year old American La France 100-foot aerial fire apparatus with approximately 9,000 hours of usage. This unit's age, mileage, and breakdown record make its replacement appropriate at this time. Furthermore, as American La France is no longer in business, repair parts for this unit are becoming difficult to acquire. This unit will be replaced with a 100-foot aerial ladder apparatus. An identical aerial apparatus is scheduled for replacement in FY 2015/16. Because of the time required to manufacture aerial fire apparatus, it is anticipated that the replacement for this unit, a 75-foot aerial ladder apparatus also included in this contract, will not be delivered until after July 1, 2015. Staff is replacing the 100-foot aerial with a 75-foot aerial as this equipment configuration better fits the operational needs in the area of the City where it will be stationed. The third unit is a new 100-foot aerial platform apparatus, which will be assigned to the new Fire Station 5 where it will provide service to the north side of Sunnyvale where the buildings are taller and primarily commercial.
Bid specifications were prepared by the Fleet Services Division and the Department of Public Safety. Purchasing staff issued Invitation for Bids No. F15-02, broadcast to potential suppliers through the City's Onvia DemandStar public procurement network. Sealed bids were received and publicly opened on September 24, 2014. Four bids were received; a bid summary is provided as Attachment 1. The lowest responsive bid was received from Ferrara Fire Apparatus.
FISCAL IMPACT
The bid price of the three apparatus totals $2,581,198. However, Ferrara Fire Apparatus is offering an $80,000 in trade-in allowance for the two units being replaced, bringing the total down to $2,501,198. The 2% contingency is derived from the actual bid price, as opposed to the net amount. Budgeted funds for the 100-foot and 75-foot aerial ladder apparatus are available in the Fleet Equipment Replacement Account.
On December 3, 2013, Council approved a development agreement (RTC No. 13-283) with the Jay Paul Company that included the purchase of a ladder truck, in an amount not to exceed $1.1 million, along with the construction of a new fire station (Fire Station No. 5). The 100-foot platform apparatus, which is a type of ladder truck, is being funded by the Jay Paul Company in accordance with the development agreement. A payment of $500,000 has already been received with the remainder to be paid upon invoicing for the truck or completion of the first building at the site, whichever comes first
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Award a contract in substantially the same form as the draft purchase order attached to the report and in the amount of $2,501,198 to Ferrara Fire Apparatus, Inc. for three quintuple combination fire service apparatus; and 2) approve a 2% contingency in the amount of $51,624.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace K. Leung, Director, Finance
Reviewed by: Frank Grgurina, Chief of Public Safety
Reviewed by: Manuel Pineda, Director, Public Works
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Bid Summary
2. Draft Purchase Order