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Agenda Item: 16(c) |
Prepared By: Chris Byrne, Fire-Rescue Chief |
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Business: Resolution |
Department: Fire-Rescue Department |
Title
Resolution - Authorize the City Manager to Execute a Contract with Ten-8 Fire & Safety LLC. for the Acquisition of a Pierce Enforcer Pumper and Authorize the Execution of a Capital Lease Agreement with Truist Equipment Finance Corp for an Amount not to Exceed $$1,029,626.00 - Chris Byrne, Fire-Rescue Chief, Fire Rescue Department
Body
BACKGROUND:
The Fire Rescue Department is requesting authorization to replace a 2010 fire engine as part of the City's capital replacement program. At the time of delivery, the apparatus will be 18 years old, well beyond its reliable service life.
During FY25, the fire engine was out of service for 71 days due to multiple mechanical failures. Although the diesel engine underwent a complete rebuild in FY24, the apparatus continues to experience reliability issues. In addition, the vehicle exhibits significant corrosion caused by exposure to storm surge during Hurricane Irma in 2017, increasing maintenance costs and reducing operational reliability.
The replacement of the fire engine was presented to the City Council during the FY27 Capital Budget Workshop. Approval of this resolution does not require FY27 funding, as debt service payments will not begin until the apparatus is delivered in FY28.
Procurement Strategy
Staff recommends utilizing competitively bid NPPGOV LOC contract # PS26410 to procure the apparatus. Ten-8 Fire & Safety LLC, the authorized regional Pierce dealer, has submitted a proposal in the amount of $1,029,626.00. The proposal includes $100,000.00 for firefighting equipment and installation. Utilizing the cooperative purchasing contract reduces the estimated delivery time from approximately 36 months to 18-19 months while providing significant cost savings through competitively awarded pricing.
Funding Plan
Staff recommends a cash down payment of $350,000 in FY28 from the Fire Engine Capital Replacement Fund 16095 to reduce the amount financed. The remaining balance of $679,626.00 will be financed through a 10-year capital lease with Truist Equipment Finance Corp. The estimated annual lease payment is $86,536.37 at an interest rate of 4.65%.
FUNDING SOURCE / FISCAL IMPACT: Capital Fund 16095, Fire Engine Replacement, will provide a $350,000 down payment toward the purchase of the apparatus. The remaining balance of $679,626.00 will be financed through a 10-year capital lease agreement. Debt service payments will begin upon delivery of the apparatus in FY28.
RECOMMENDATION: Approve Resolution 26-35, authorizing the City Manager to execute a contract with Ten-8 Fire & Safety LLC for the acquisition of a Pierce pumper and to execute a capital lease agreement with Truist Equipment Finance Corp in an amount not to exceed $1,029,626.00.
POTENTIAL MOTION: "I move to approve Resolution 26-35, authorizing the City Manager to execute a contract with Ten-8 Fire & Safety LLC for the acquisition of a Pierce pumper and to execute a capital lease agreement with Truist Equipment Finance Corp in an amount not to exceed $1,029,626.00."