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AGENDA ITEM REVIEW FORM
3.A.
Special City Council Meeting
Meeting Date:
01/20/2016
Department Head:
Hank Green
Submitted By:
Hank Green, Fire Chief, Fire Department
Action Requested:
Motion

ITEM:

Discussion and possible action on any and all matters regarding the purchase of a used fire engine and requesting to waive formal purchasing procedures for this purchase.  (Hank Green, Fire Chief)

SUMMARY:

On June 8 of 2015, SLE1 experienced an electrical short in the wiring system at the engine area and caught on fire. After examination by a third party agency, it was determined to be a total loss. The City of San Luis received a settlement payment for $57,137.30 from the Arizona Municipal Risk Retention Pool (AMRRP). The City of San Luis Fire Department has been searching for a replacement vehicle for this apparatus since then and has been in contact with several agencies who are selling a used apparatus.

After contacting the regional organizations or agencies who had used vehicles for sale, we determined that they were either older than the one we had, had extreme miles or engine hours or were no longer available.  We have determined our best course of action is to purchase a used vehicle from a company in Henderson, Nevada.  Firetrucks Unlimited is an organization that specializes in repair and refurbishing of used fire apparatus. They have an excellent reputation in the industry. Their specialty, beyond repair of a damaged apparatus, is to purchase used apparatus which have been well cared for, have major components (motor, transmission and pump) which are sound and resell them. They resell them to other fire departments in need of (1) a reliable, used vehicle or (2) rehabilitate them by performing any upgrades to the lighting systems, electrical systems, plumbing, paint and lettering for the new owners.

Firetrucks Unlimited has a used fire engine which will meet our immediate and future needs. The apparatus is a used fire engine from Clark County, Nevada, has been well maintained and is a reliable, albeit older vehicle by their standards.  It has seen frontline, reserve and training academy status for their organization, recently being sold to Firetrucks Unlimited as surplus property.  This engine is one year newer than our old fire engine, which was a 1997 Pierce.

We are requesting authority to spend an amount, not to exceed $57,137.30 (the amount received from AMMRP).  This fire engine would be repainted red (it is presently Clark County yellow) and have reflective stripes and lettering representative of the City of San Luis Fire Department applied. This used apparatus will assume the role as first out fire engine for SLFD (San Luis Engine #1, SLE1).  Upon the delivery of our 2016 PIERCE fire engine, it will then be regulated to reserve status San Luis Engine #2 (SLE2).  The purchase of this apparatus will benefit the City of San Luis and SLFD in that (1) we will have a reliable fire engine that can be used as a temporary, frontline apparatus when either SLE1 or SLL1 need routine maintenance or repairs, (2) we will have a capable, reliable apparatus to place into service should we experience an major event and can be staffed with recalled off duty personnel and (3) it can be placed into immediate, interim service as San Luis Engine 2 (SLE2) at such time as Fire Station #2 is built and staffed.  As SLE2, this apparatus will serve well until such time as a new apparatus can be authorized, at which time it would return to reserve engine status.

I am also asking City Council to waive formal purchase procedures for this purchase.  If we were to follow the criteria identified in the Purchasing Code, we would have to publish notice inviting sealed bids in two issues of a newspaper for at least five days prior to the date set to open bids.  Additionally, because there are countless vendors of used fire trucks which might be interested in bidding on our apparatus, I suspect we would be inundated with bids and while they may be cheaper than what we are suggesting for purchase, the time needed to evaluate the viability of their product will further delay replacement of our apparatus.  Additionally, we believe that this apparatus, because it has been operated in the southwest region of America, there is little probability of chassis and body damage caused by salt and corrosion, typical of areas which experience heavy snow fall and ice conditions; we do not know and/or will have to evaluate other offering to determine the soundness of body and chassis.

The collective opinion at SLFD is that this vehicle will serve us well as the immediate replacement of our front line fire engine between its delivery and the delivery of our new fire engine, continue to serve as a very adequate reserve fire engine upon the delivery of our new fire engine and, considering that its second life at SLFD will be as our reserve engine for SLFD, it could be pressed into service as SLFD Engine #2, allowing for limited, initial capital investment when opening Fire Station #2; allowing for budgeting, design, construction and delivery of a new Engine #2 as response activity demands.

Firetrucks Unlimited is a repair and refurbishing company which will make repairs and modifications to any fire brand or type of apparatus (fire engines, ladder trucks, command vehicles, water tankers, brush trucks, etc.).  They also purchase "gently" used and well maintained used apparatus for re-sale and possible refurbishment.  The fire engine we are considering for purchase fits all of their criteria for resale or refurbishment.  Their apparatus for turn around resale has been evaluated by their mechanics and technicians (150 point checklist) and put through a pump certification test prior to sale.  If we were to consider having them completely rebuild the motor, transmission and pump and bring the lights and electrical system up to current standards, this vehicle would cost an estimated $110,000.00.  If we chose to have these systems up-graded or repaired at a later date, the cost will still be very close to the originally quoted $110,000.00 but we have the luxury of sequencing or phasing these repairs/up-grades over several budget cycles, while still maintaining both of our front line apparatus.

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE THE PURCHASE AS PRESENTED AND WAIVE FORMAL PURCHASE PROCEDURES AS AUTHORIZED BY CITY CODE 36.01(H).

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
Yes
CITY/STATE/FEDERAL FUNDS:
City
TOTAL:
$57,140
BUDGETED:
No
AVAILABLE TO TRANSFER:
NA
ACCOUNT #/REMAINING BALANCE:
NA

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

I am requesting to spend monies received as settlement for our fire engine that caught on fire in June of 2015. Budget amount to be released this fiscal year into account #100-999-90000, capital outlay equipment.

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