Consideration and Approval of Contract:  Approve the Cooperative Purchase Contract for a Velocity Pumper Fire Engine and a Velocity Aerial Quint Unit with Hughes Fire Equipment, Inc., in the total amount of $2,097,693.50.

1. Approve the Cooperative Purchase Contract for a Velocity Pumper Fire Engine in the amount of $817,673.90 and a new Velocity Aerial Quint Unit in the amount of $1,280,019.60 from Hughes Fire Equipment, Inc. in the total amount of $2,097.693.50; and
2. Authorize the City Manager to execute the necessary documents.

Hughes Fire Equipment, Inc., is a fully authorized dealer of Pierce Manufacturing, Inc. products such as the Velocity Pumper Fire Engine and Velocity Aerial Quint Unit. Pierce Manufacturing, Inc. has cooperative purchase contract #113021-OKC with Sourcewell to purchase their products at a reduced rate and authorizes Hughes Fire Equipment, Inc. to sell those products.

This purchase of a Velocity Pumper Fire Engine would replace a twenty-two (22) year old fire engine currently front line in the Flagstaff Fire Department (FFD) fleet and move that unit into a reserve status. This also puts a current twenty-three (23) year old reserve fire engine out of service and up for auction. The purchase of the Velocity Aerial Quint Unit will replace a twenty-five (25) year old Quint and put that unit into reserve status. A Quint is different from an Engine because it has the following: 1) water; 2) pump; 3) hose; 4) ground ladders; and 5) an aerial ladder – for higher facility access – usually over 100’.

Both units were part of the FLEET adopted apparatus replacement plan, but funding was unavailable until this year. This new Velocity Pumper Fire Engine would go into one of the three heaviest call volume districts in the City's central corridor, along with the new Velocity Aerial Quint Unit in a co-staffed capacity in the areas seeing the largest influx of elevated structures in the City.

The Expanded Financial Considerations has been updated.

The purchase of the Velocity Pumper Fire Engine and the Velocity Aerial Quint Unit are part of the City Manager’s proposed budget that will be presented to Council at the April Budget Retreat. The purchase of the equipment is part of a balanced General Fund 5-year plan to help address critical infrastructure needs. The amount of the purchase will be budgeted in account 001-03-051-0203-2-4401. In addition to the purchase of this equipment, separate contracts will likely be brought forward for the purchase of new equipment at a later date and is funded in the current budget proposal. 
 
Hughes Fire Equipment, Inc. may request full or partial payment as part of our commitment to the purchase.  If funds are provided in fiscal year 2021-2022, that will be placed in a prepaid expense account and then expensed on delivery of the vehicles. 

FFD recently revised its policy to reduce the wear and tear on our largest and most expensive apparatus called Quints (large aerial ladder trucks). To do this, FFD implemented co-staffing which requires that the station crew determine which unit is most needed based on the call type and respond appropriately. By purchasing both of these units, it will put the over twenty (20) years old units into reserve status and allow for most of the calls in that district to be handled by the new engine or Quint. This keeps the added response miles off the Quint and allows our annual apparatus maintenance costs to stay within budget.

Performance Based Budget Priorities:
Safe & Healthy Community - Provide public safety with the resources, staff and training to respond to community needs. High Performing Governance - Serve the public by providing high quality internal and external service.

Regional Plan:
Goal PF.3. Provide high-quality emergency response and public safety services including law enforcement, fire, medical, and ambulance transport service.
Policy PF.3.1. Maintain high-quality effectiveness and efficiency in law enforcement, fire, and emergency services to the extent that is consistent with governmental operations, plans, public policies, population served, and monies available.

Insight on the needs, but no actions/decisions on this request.

1. Approve the Cooperative Purchase Contract with Hughes for the Velocity Pumper Fire Engine and Velocity Aerial Quint Unit; or
2. Reject the Cooperative Purchase Contract and direct Staff to conduct am independent procurement; or
3. Reject approval of the Cooperative Purchase Contract and continue to utilize over twenty-one (21) year old fire units.

The national standard for fire engine and Quint replacement from front-line service ranges between 10-20 years base on use and typical geographical response. The City of Flagstaff, during the recession, moved the replacement of fire engines and Quints up to twenty-five (25) years to reduce capital expenses. Currently, Fleet has moved this back to twenty (20) years due to significant maintenance costs and downtime seen by these older units. The Fleet Committee, City Manager's office and Budget Team has voiced a preference to replace aging fire engines with a new one every two years for the next six years (3 new engines) to get FFD back on pace for normal twenty-year replacement. This is the third of those three new fire engine requests and one of two needed Quints. FFD has chosen to use the Pierce products sold by Hughes Fire Equipment, Inc. as the only fire engine manufacturer due to longevity, quality, maintenance, and overall fleet consistency for operational use.

Purchasing staff reviewed the agency contract and amendment to confirm validity of the terms and similar scope. The Cooperative Purchase Contract from Sourcewell conforms with City procurement rules. Purchasing staff worked with contractor to develop the draft City of Flagstaff Cooperative Purchase Contract attached herein.

The FFD apparatus replacement schedule anticipated saving capital expenses by refurbishing every other engine. FFD replaced an older fire engine with a new-refurbished engine in FY18. This engine has needed $50k worth or work in the first three years of its life at FFD. In addition, the next two engines identified as possible refurbishment options are both nineteen years old and Fleet has determined the frames have significant rust damage from the over the road chemicals and are not candidates for refurbishment. This represents number three replacement of three approved by the FLEET and Budget Team in the 5-year plan.  FFD currently utilizes smaller rescue units for the highest call volume districts to reduce to wear and tear on larger fire engines. We also have implemented the co-staffing model to reduce the wear and tear on our most expensive apparatus, known as Quints. The equipment being purchased is a model down from our normal Pierce fire engine to reduce overall costs, but still maintains consistency in function and maintenance and matches our most recent new Engines from 2020 and 2022. 

The City set aside funds in the FY21-22 budget to pay the minimum wage assessment, but the City successfully enjoined the assessment at the trial court level. Although the case is on appeal, Staff determined that the City needs to use the funds to meet a critical safety need.    In addition, in fiscal year 2021-22 the General Fund contingency account, 001-99-000-0000-0-4277, funding was set aside to provide funding to our public safety pension plans if we became less than 100% funded.  As a result of favorable financing and favorable returns on investments on our pension plans, the City is funded in excess of 106%.  Therefore, the City will not need to provide additional funding to our pension plans this fiscal year.  Budget Team provided direction to Fire Department staff to seek replacement of the aging Quint utilizing these funds and we would budget this in fiscal year 2022-23. 
 
The Type 1 firefighting vehicle has a $375,000 from our annual fleet allocation that is planned for fiscal year 2022-23.  The City Manager’s proposed budget is adding another $675,000 to the fiscal year 2022-23 budget so that we can replace the aging vehicle sooner.   
 
By identifying funding for the Quint during the budget process, we eliminated the consideration of taking this vehicle to the voters for the November 2022 ballot. 

Purchasing a new Velocity Pumper Fire Engine and a Velocity Aerial Quint Unit allows response efforts to be consistent in meeting the FFD mission and the community expectations for public safety response. This will also reduce the amount of time FFD will have to put crews responding to emergency incidents in older reserve apparatus due to aging front line units going out of service for mechanical issues. As the community moves into higher density and elevated footprints, having multiple operational Quints is critical to support the changing infrastructure demands within the City. 

Informed based on FLEET replacement schedules adopted at council meetings.