REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Purchase Order to Golden State Fire Apparatus, Inc. in the Amount of $7,372,642.10 for Three Pierce Manufacturing, Inc. 100-foot Velocity Mid-Mount Ascendant Tower Fire Apparatuses (F27-088)
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a purchase order to Golden State Fire Apparatus, Inc. of Sacramento, CA, in the amount of $7,021,563.90 (including tire, delivery fees, and applicable sales tax) for three Pierce Manufacturing, Inc. 100-foot Velocity Mid-mount Ascendant Tower Fire Apparatuses;
- Authorize a 75% pre-payment in accordance with Attachment 1 to the report, contingent upon receipt and approval of a performance bond in the amount of 100% of the purchase price, in a form acceptable to the City Attorney;
- Approve a 5% contingency of $351,078.20 to cover potential modifications to the specs over the duration of the apparatus build time, for a total not to exceed amount of $7,372,642.10;
Authorize the City Manager to execute the Purchase Order when all necessary conditions have been met; and
- Authorize the City Manager to increase the Purchase Order amount solely to cover additional sales tax resulting from an increase in the applicable sales tax rate before delivery, subject to available appropriations.
Report
BASIS FOR RECOMMENDATION
The economic operation of the City’s fleet requires replacing vehicles in accordance with an established vehicle replacement schedule, before maintenance and operating costs become excessive and exceed life cycle costs. The City has established a 15-year useful life for the three fire apparatus being replaced; each currently has over 7,000 hours of service and is scheduled for replacement by 2030. Factory build times are averaging 47 to 51 months, including dealer inspection, mounting, registration, and delivery. As such, the anticipated timeline for possession of the new units is late 2030 or early 2031, if ordered now.
The proposed replacement fire apparatuses are three Pierce Manufacturing, Inc. 100-foot Velocity Mid-mount Ascendant Towers, quoted at $7,021,563.90 (including applicable sales tax and fees) as shown in Attachment 1 to this report. Staff recommends a 75% pre-payment, provided a 100% performance bond is issued to guarantee delivery. This pre-payment discount will save $921,450. Staff also recommends a 5% contingency of $351,078.20 to cover potential specification modifications, onboard electronics and radio equipment, and manufacturer component price increases over the duration of the apparatus builds. The total requested authorization, including the contingency, is $7,372,642.10.
The purchase of these vehicles is consistent with the Administrative Policy, “Energy Conservation for City Owned Facilities and Equipment” (Chapter 6, Article 4), which calls for the most energy-efficient tires available, and consideration of alternative fuel vehicles where feasible. Fleet Management evaluated alternative-fuel options for this equipment and determined that no zero-emission or hybrid vehicle currently meets the City's operational requirements. The proposed apparatuses meet the City’s requirements, and staff recommends purchasing through this contract.
Pricing for this purchase originates from Sourcewell Contract No. 082025-PMI, and is available through an authorized dealer, Golden State Fire Apparatus, Inc. (Attachment 2 to the report). The City regularly purchases fleet vehicles through a cooperative purchasing agreement or through a California Statewide Commodity Contract. The City has used Sourcewell cooperative agreements to identify vendors and purchase vehicles and equipment, typically realizing better pricing than when bidding the goods/services individually. The identified vehicles that meet the City’s requirements are available through a Sourcewell cooperative agreement, and it is in the City's best interest to purchase through this contract.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
Funding for fire apparatus replacement is available in Fund 7021 - Fleet Services under Project P20700 - Fleet Equipment.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_X_ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Aaron Bert, Director of Public Works
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Quote
2. Sourcewell Contract No. 082025-PMI