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CITY COMMISSION AGENDA ITEM |
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Department: |
Fire Medical |
Commission Meeting Date: May 8, 2018 |
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Staff Contact: |
Mark Bradford, Fire Chief |
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Recommendations/Options/Action Requested: As part of the department’s apparatus replacement program, it is recommended that we replace a 2006 Pierce Quint that exceeds the city/department replacement policy. (Project No. FM1817CIP, Budget Amount $825,000) |
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· Utilize the Houston Galveston Area Council contract administered by MARC for pricing quotes; · Purchase through Pre-Pay: One (1) 2018 Velocity Engine from Pierce Manufacturing in the amount of $660,112.43; · Accept trade-in of 2006 Pierce Lance Quint VIN: 4P1CL01F96A006297 for $185,000 from Pierce Manufacturing. |
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Executive Summary: |
Program Introduction and History In 2006, the Fire Medical (FM) Department began a review of its fire apparatus fleet. The efforts of city staff culminated in a comprehensive vehicle study that included a survey of all primary and secondary fire apparatus, an overview of the organizational and city commission goals and service demands of FM, a comparative analysis of the fire apparatus replacement programs in other jurisdictions, and a proposed apparatus replacement schedule.
The department’s vehicle replacement program outlines the order of vehicle replacement based on the overall replacement score as determined by the Public Works Vehicle Maintenance Department and operational efficiency.
Program Funding Fire apparatus is commonly funded through the Infrastructure/Equipment Sales Tax program. In general, the vehicle replacement plan anticipates that total equipment replacement costs would be greater than sales tax proceeds, which would require additional funding sources. We have conducted a financing analysis that included purchase/cash, purchases/General Obligation Bond (GO) debt, lease, or lease/purchase of the equipment. 100% of this purchase will be made with cash.
“Prepaying” the purchase of this vehicle would result in a saving of $34,088.27. This savings is due to the apparatus manufacturer paying for the major components (chassis and body) as they are constructed. The prepay option was evaluated and is recommended as a cost savings.
Prepay – Trade-In Discount Calculation Contract Price $879,200.70 Interest Discount (34,088.27) Trade-In (185,000.00) Final Cost $660,112.43 |
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Strategic Plan Critical Success Factor |
Innovative Infrastructure and Asset Management Safe, Healthy, and Welcoming Neighborhoods Core Services Sound Fiscal Stewardship |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City is $660,112.43 (which includes, pre-pay discount and trade in). This item was included in the FY2018 Fire Medical budget and financial forecast. |
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Attachments: |
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Reviewed By: (for CMO use only) |
☒TM ☐DS ☐CT ☐BM |