5.1. SR 08-19-1996ITEM 5.1.
Hty of
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Bruce A. West, Fire Chief
August 13, 1996
Approval of Bid for 1250 GPM Triple
Combination Pumper
At the June 17, 1996, City Council meeting, the Elk River City Council
authorized advertisement for bids for a 1250 gpm triple combination
firefighting apparatus. Specifications were requested by three companies.
On July 23, 1996, at 10 a.m., a bid opening was held at the Elk River City
Hall. A single bid was received from Pierce Manufacturing, Inc., in the
amount of $299,875. The Elk River Fire Department Truck Committee met
to review the bid from Pierce Manufacturing for its compliance with the set of
specifications and found the bid to be in compliance.
At the August 19, 1996, City Council meeting, on behalf of the Elk River Fire
Department Truck Committee, I am requesting the approval of Pierce
Manufacturing, Inc.'s bid of $299,875 for the purchase of the 1250 gpm triple
combination pumper.
Attached to this memo are items added to the bid from Pierce Manufacturing
in reference to NFPA 1901. The National Fire Protection Association (NFPA)
has been continually working on guidelines and requirements for firefighting
apparatus. The 1996 NFPA version of new requirements have been added
into our bid from Pierce Manufacturing. It was noted that if the City of Elk
River and its fire department elected not to take the 1996 version of NFPA
1901 added revisions, the contract would have to be received at Pierce
Manufacturing prior to August 9, 1996. Upon review by the Elk River Fire
Department Truck Committee, it was concluded that the list of revisions for
the new fire department pumper should be included in the overall total bid.
Please review and refer to the deletion items in reference to our specifications
and what is now included in NFPA 1996 revisions. With the review of the
Elk River Fire Department specifications, there have been deletions of
approximately $1,400. The net change in the total price of the truck, when
considering the bid additions and deletions, is an additional $1,400.
Attached is a memo from Assistant City Administrator Lori Johnson which
discusses the financing options presented with the bid from Pierce
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
Manufacturing, Inc. The various financing options that have been reviewed
and discussed between the city administrator, assistant city administrator,
and myself.
The Elk River Fire Department Truck Committee has volunteered many
hours over the past twelve to fourteen months putting together a set of
specifications that address today's firefighting and firefighting into the year
2010 and beyond. I, along with the Elk River Fire Department Truck
Committee, will be present at the August 19, 1996, City Council meeting to
answer any questions you may have in reference to approval of the 1250 gpm
triple combination firefighting apparatus. If you have any questions prior to
the August 19 Council meeting, please feel free to give me a call at the Elk
River Fire Department at 441-4919.
The financing package that is being recommended calls for $74,000 to be paid
on this truck. This is the 1995, 1996, and 1997, reserve allocation that the
City Council has and is expected to approve during the budget process. The
balance of the truck will be financed in the years 1998-2004 on a
lease/purchase plan. The annual expenditure is expected to be $41,000 and
this expenditure is scheduled to be financed through contributions to the city
from the utilities department.
I support this purchase from Pierce and the financing method. I am always a
little concerned when the city only receives one bid for a piece of equipment
that is in this price range. However, this is not unusual in the fire
equipment industry. I feel comfortable that the fire department has gotten a
good product at a good price. '( ?~ I(~ ~,~
CITY OF ELK RIVER
Option Bid
Ir'the City of Elk River elects to have this apparatUS provided to meet the 1996 version"
of NFPA 1901, please add $2,768.00 to our total bid price. Please note that is a contract
is not received at Pierce Manufacturing prior to August 9, 1996, this option must be
taken.
: P.02
City of Elk River
NFPA 1996 Revisions
The SCBA brackets in the crew cab and cab will be provided with
Zt~matic #CRS collision restraint straps are required by NFPA.
The front warning lights will be red Code 30scflaser warning lights
instead of the Whelen ~ specified as Whelen ~/3 h2ve not yet been
approved for the newest version of NFPA.
There will be Code 3 Model 40 strobe lights provided on each side of
the apparatus at the fl'ont cab, center, and rear as required by NFPA
to meet the lower level optical warning and optical power
requirements. Please note these will also replace the Whelen #73
intersection lights specffied.
There will be two (2) Code 3 Model 40 strobe lights provided at the
rear of the apparatus as required by NFPA to meet the lower level
optical warning and optical power requirements.
5. Perimeter scene lights will be provided with lighting capable of
providing illumination at a minimum level of 1 foot-candle on ground
areas within 30 inches of the edge of the apparatus in areas designed
for personnel to climb onto the apparatus or descend from the
apparatus to ground level. Lighting designed to provide illumination
on area under the driver and crew riding area exits will be activated
automatically when the exit doors are opened. All other ground area
lighting will be switchable.
6. An interlock will be provided to prevent operation ofthe ladder rack
unless the apparatus parking brake has been activated. A steady red
indicator light will be located on the cab instrument panel and
illuminated when the hydraulic ladder rack is not in the stowed
position. The light will be labeled "Ladder Rack". In addition, the
'Do Not Move Apparatus" light located in the cab will be activated
when the hydraulic ladder rack is not in the stowed position.
,It,ll - 30 ~
12:21P
P.O3
City of Elk River
h~I~PA 199~ Revisions
7. Flashin~ _~mber lights ~acing the fl-ont'and rear will be provided on the..
ladder rack and be activated whenever the rack is in the down
position.
s. A voltmeter will be provided on the pump panel.
9. An indicator li~t will be provided to indicate when the 4" larEe
diameter discharge valve is in the clo6ed position.
ity of
iver
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Lori Johnson, Finance Director
August 15, 1996
Fire Department Pumper
Financing
As Bruce outlined in his memo, he is requesting approval of the purchase of a
pumper with a cost of $301,275.00. The Council has already discussed the
funding of this purchase and that information is reiterated in the previous
memo. With the funding in place, the remaining item to be discussed is the
financing mechanism to be used.
First, the contract requires an additional interest payment if the city does not
pay $142,650.00 for the chassis at the time of frame-up at the factory. This
additional interest adds $4,250.00 to the price of the pumper. Assuming that
there is $72,000.00 in reserve, that payment will be made at time of frame-up
which will reduce the additional interest cost to approximately $2,125.00.
This brings to total cost of the pumper to approximately $303,400.00 with a
balance remaining to be paid of approximately $231,400.00.
The balance remaining could be financed several ways; an internal loan,
equipment certificates, or manufacturer financing could be used. At this
point it seems most probable that manufacturer financing will be used unless
equipment certificate interest rates are lower at the time of financing. The
manufacturer is guaranteeing interest rates of 5.6 percent for five years, 5.8
percent for seven years, and 5.95 percent for ten years. Since the financing
does not need to be finalized until three weeks prior to delivery of the vehicle,
there is no need to make a decision at this point. It is impossible to guess
where interest rates will be in ten or twelve months when we take delivery; if
rates are lower, an equipment certificate will be issued for the pumper. In no
case will the interest rate be higher than listed above.
Finally, all of our funding discussions have been based on a seven year
repayment term. Based on the guaranteed rate for a seven year term, an
annual payment of approximately $41,000.00 is required. Unless rates or
funding change substantially prior to delivery of the pumper, the term will
remain at seven years.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425