The Fire & Rescue Department requests approval to enter into a purchase agreement for three (3) custom fire apparatus as planned for in the FY 2024-2029 CIP. These apparatus will be as similar in design as possible, which reduces engineering costs and maintains continuity with the current fleet. The purchase request is for a Pierce Enforcer Engine, Enforcer 100AAT Tower Ladder Truck, and an Enforcer HD Heavy Rescue. The Tower Ladder Truck will be assigned to Station 1 in Maryland Farms, and the Rescue and Pumper apparatus will be assigned to Station 2 on Wilson Pike. The Tower Ladder, a truck with a 100’ aerial ladder device, will replace a 2009 Sutphen Ladder Truck as part of our long-term apparatus replacement plan. The Rescue will replace a 2003 Ferarra Rescue, and the Engine will replace a 2013 Rosenbauer Pumper. These existing apparatus will either be surplused and sold or rotated into reserve status depending on their condition and the needs of the agency upon arrival of the replacement trucks.
The Fire & Rescue Department has worked with city administration to develop a practical and effective long-term apparatus replacement schedule. The schedule was developed through referencing national consensus standards, maintenance trends, and a cost-benefit analysis of long-term maintenance expenditures. This schedule outlines that Engines/Pumpers should be replaced every 15 years, the Tower Ladder Truck every 20 years, and the Rescue Truck and other specialty vehicles and apparatus at 20 years or as-needed.
Historically, apparatus manufacturing times ranged from 10 to 16 months. However, with supply chain shortages, limited availability of raw materials, labor challenges, and other realities of the economy, these lead times have been extended dramatically, and it is anticipated that these trends will continue. As a result, the delivery time for the Rescue is anticipated to be between 30 and 32 months, the Engine between 39 and 41 months, and the Tower Ladder between 41 and 43 months. By placing the order this year, we hope to take delivery of the Engine and Tower Ladder close to the timeframes outlined in our replacement schedule if not slightly after.
The Fire & Rescue Department began utilizing a purchasing cooperative to acquire new apparatus in 2010. Through this process, Pierce Manufacturing has consistently provided the lowest and best bid. Given our successful history with cooperative pricing and the reliability experienced with our Pierce fire apparatus, the Fire & Rescue Department proposes to once again take advantage of this process to purchase these three pieces of equipment.
Pierce offers discounts through two purchasing cooperatives: H-GAC (Houston-Galveston Area Council), a purchasing cooperative based in Texas, and FireRescue GPO, a program of NPPGov. The City of Brentwood is a member of both and is therefore able to take advantage of group purchasing concessions that reduce the base bid price of the apparatus. Utilizing cooperative pricing, the cost of the Engine is quoted as $1,070,145.92, the Rescue at $1,254,006.22, and the Tower Ladder at $2,263,602.68 for a total of $4,587,754.82. Individualized payment is due upon the delivery of each apparatus.
The City has been accumulating funds for replacement of these vehicles within the Equipment Replacement Fund (ERF) for many years, at an assumed annual inflation rate of 3%. Due to regulatory changes and recent national inflation rates higher than expected, prices have outpaced the City's accumulated savings. Estimated to the time of anticipated delivery, the ERF will have $3.4M accumulated for these vehicles, inclusive of funds saved for a 2013 Spartan mini-pumper that will no longer be in the replacement schedule when it is taken out of service. The additional $1.2M is expected to be covered partially via the proceeds from the surplus sale of the replaced apparatus and through General Fund excess revenue transfer to the Equipment Replacement Fund over the next three years.
The attached agreement is with G&W Diesel Services, Inc., d/b/a Emergency Vehicle Specialists (EVS), the local Pierce vendor for the HGAC cooperative. The agreement commits the manufacturer to the price quoted unless 1) the federal government adopts regulatory changes which may increase the cost of the apparatus, or 2) we as an agency request changes once the order has been placed. This protects us from annual price increases over the term of the agreement, which can be significant. Placing the order now also enables us to reserve the current generation of diesel engines, which are in limited supply. Doing so will save between $50,000 and $70,000 per unit.
Traditionally, the City has taken advantage of savings by making partial pre-payment of approximately 50% when the order is placed. However, given the cost of this combined order, the considerable lead times on each order, and the favorable interest earnings on the City's idle cash, staff feels that there would be no benefit in doing so at this time.
Brentwood Fire & Rescue currently has six (6) Pierce fire apparatus in the fleet. The Department has been extremely pleased with the performance as well as the responsiveness from both the manufacturer and service provider. Pierce Manufacturing is based in Appleton, Wisconsin, where it began producing municipal fire apparatus in 1913. Pierce is considered an international leader in the manufacture of fire apparatus. The company has a local sales representative and a warranty and repair facility in Memphis with mobile service available to respond to our location. They have also shared plans to begin building a maintenance facility in Nashville within the next 1-2 years.
Please contact the Fire Chief with any questions you may have. |