AR 041806 KME Fire Apparatus - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF April 18, 2006 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Tom Hendrix, Fire Chief SUBJECT: Award of bid for Replacement Ladder Truck to KME Fire Apparatus in the amount of $597,215.15 DATE: April 10, 2006 BACKGROUND: ITEM #15 The current budget includes funding for the lease purchase of a new ladder truck to replace the existing ladder truck, which is 10 years old. During budget workshops last year we outlined our plan to sell the existing ladder truck for $180,000, which will reduce the lease purchase cost of a new truck. The sale of the existing ladder truck and purchase of a replacement in this fiscal year allows us to take advantage of the current value of our existing ladder truck and spread out the cost of replacing both the ladder truck and one additional engine that will be due for replacement in the year 2010. The estimated cost of replacing both units in 2010 is estimated to be over 1.5 million dollars. The City Council authorized the City Manager to sign a contract with Fire Truck Plus, a fire apparatus broker, and also authorized the sale of our existing ladder truck during the Council meeting of October 18, 2005. The ladder truck has been sold for $180,000.00 and the transaction should be completed by April 20, 2005. DISCUSSION/ANALYSIS: The Fire Department has an opportunity to piggyback on to an Imperial County Request For Quotations, Number 5786, for the purchase of a KME ladder truck. This bid will allow us to avoid the costs of new EPA diesel engine emission controls that go into effect on all new engines produced after December 31, 2006. These costs are estimated to be approximately $12,500 to $15,000. The total cost of the apparatus includes 7 equipment upgrades totaling $65,187, which are necessary to standardize the new ladder truck with our current apparatus fleet. Per City of Colton Municipal Code Section 3.08.140 C, bidding exemption is authorized, and allows the City to "piggy back" onto an existing contract of a governmental entity. FINANCIAL IMPACT: The cost of this ladder truck and upgrades is $554,260 plus sales tax of $42,955.15 for a total of $597,215.15. The sale of our existing ladder truck reduces the cost by $180,000 for a total cost to be leased of $417,215.15. The Fire Department has budgeted $65,000 for the annual payments.