| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
|
| | | | | | | | Agenda Title:
22-102 - 1R. An ordinance authorizing the purchase of two (2) new Spartan Custom 4-Door Pumper Fire Trucks from Precision Industries Inc. for $1,440,876.01 and making the necessary appropriations. |
| | | | | | | | Recommendations:
City staff recommends approval to execute a purchase order. |
| | | | | | | | Executive Summary:
Approval to purchase two (2) Spartan Fire Pumper Fire Trucks. Replacement of the apparatus’ is outlined in the Capital Improvement Plan (CIP). The reason two (2) apparatuses are being requested simultaneously is that the build times are now extending out twenty (24) months, rather than the previous twelve (12) month build time. |
| | | | | | | | Background:
The Fire Department is scheduled to purchase one pumper this fiscal year, budgeted from the Fire Protection Sales Tax Fund. As movement has been made through the design and bid phase, it has been determined that it might be more beneficial and fiscally responsible to purchase two pumpers at this time. As with many other products, the fire truck manufacturers are experiencing supply chain issues causing extended build times for apparatus. In the past build times were within a 12-month time frame, so spreading these purchases out during fiscal years met the replacement needs. Build times are now extended out to 24 months and chassis price increases are occurring quarterly. The specification that used for this apparatus is the same as one previously purchased in 2020 and there has been a 35% increase in cost for the exact same build. The cost of build for one apparatus through the HGAC program for one apparatus is currently being held at a price of $720,438.00. The sum of $650,000 was originally budgeted to be expended in fiscal year 2022-2023, based off an estimate made at the time of the budgeting process. An additional pumper apparatus purchase was planned on the CIP next fiscal year as well. The Fire Protection Sales Tax, as of July 1, 2022, had an unassigned fund balance of $1,855,097, and thus is sufficient to fund the purchase of both apparatuses as requested.
The City has received a quote from Precision Industries as priced off of the Houston-Galveston Area Cooperative Contract in the sum of $1,440,876.01 for the purchase of two (2) Spartan Custom 4-Door Pumper Fire Trucks. Per section 8.06.004, Paragraph 4 of the City Code states competitive bidding is not required when purchases are made through a cooperative contract established by a government purchasing entity or cooperative. The cooperative bids used will have been established pursuant to RSMo. 70.220 or generally accepted governmental purchasing practices through the competitive bidding process. Staff recommends that the City Manager be authorized to issue a purchase order in the sum of $1,440,876.01, with the sum of $745,206 to be paid in fiscal year 2022-2023 in order to insulate the City from any subsequent price increases on the cost of the chassis and the remaining balance to be paid upon delivery.
The difference in the purchase price from the amount previously budgeted for one pumper truck $790,876.01. Staff requests an additional appropriation from funds in the Unassigned Fund Balance, to Expenditure 4671-5404, of the Fire Public Safety Sales Tax, in the sum of $790,876.01, to fully fund the purchase price for the new apparatuses.
|
| | | | | | | | Emergency Justification:
In order to insulate the City from any subsequent price increases on the cost of the chassis authorization is requested to pay the sum of $745,206.00 as soon as possible, which requires the purchase order and additional appropriations requested herein. |
| | | | | | | |
Fiscal Impact:
Additional appropriation to, and Expenditure from 4671-5404, Fire Safety Sales Tax Fund for the sum of $790,876.01.
|
| | | | | | | | | Department: Fire | Contact Person: Doug Short |
|
| REVIEWERS: | | Department | Action | | Purchasing Division (Finance Department) | Approved | | Fire Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
|
| | | | | | | |
| Council Action: | Council Action: |
|
|