Presenter/Contact
Presenter
Kenneth Jacks, Fire Chief
Contact Info
(830) 221-4207 - kjacks@nbtexas.org
Subject Header
SUBJECT:
Title
Approval of the purchase of a new multi-purpose frontline fire engine from Siddons-Martin Emergency Group, LLC., utilizing a BuyBoard cooperative purchasing contract, and approval of a resolution with Government Capital Corporation for short term financing.
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BACKGROUND / RATIONALE:
The Fire Department currently has a fleet of fire engines consisting of six frontline units and two reserve units. In accordance with the standard City process for light-duty fleet vehicles, the Fire Department and the City’s Fleet Services Manager regularly evaluate each fire engine and adjust the fleet accordingly to ensure the continued protection of lives and property. Based upon a recent review, it is being recommended that one of the frontline units be reclassified as a reserve unit as the repair costs have been increasing due to age and mileage.
As such, the reclassified frontline unit will replace one of the two existing reserve units; and with Council approval of this purchase recommendation, the previous reserve unit will be declared surplus to allow for the unit to be sold at auction or to another governmental entity after the new frontline unit is placed into service.
Staff recommends purchasing a new multi-purpose frontline fire engine and all accessories from Siddons-Martin Emergency Group, LLC. (hereafter “Siddons-Martin”), utilizing a BuyBoard cooperative purchasing contract. Due to its dual-functionality, the multi-purpose fire engine will replace both a current frontline fire engine, and a rescue truck. The new unit will be ready approximately 11 months after the unit is ordered.
The total cost of the multi-purpose unit is not to exceed $880,900. However, Siddons-Martin has offered the City the opportunity to utilize the afore-mentioned rescue truck as a trade-in vehicle for the new multi-purpose fire engine. They have guaranteed the estimated value of the rescue truck to be $133,000; thereby reducing the purchase price of the multi-purpose truck from approximately $880,900 to approximately $747,900 upon receipt of City Council approval.
The City of New Braunfels has utilized short term financing from a variety of vendors for public safety equipment purchases. Government Capital Corporation will provide short term financing for the above-referenced purchase as rates remain at historic lows and are expected to be at or around 3.59%. The useful life of the new fire engine is anticipated to be 12 years. The City intends to finance over a 12-year period and schedule the first payment for November of 2018. The cost of issuance will not exceed $25,000, which will be incorporated into the 12 annual payments of approximately $58,915.
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
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Yes |
Strategic Priorities 4: Continue to ensure the protection of citizens’ lives and property |
FISCAL IMPACT:
As mentioned above, the first-year payment will be due in November of 2018 and will be noted in the FY 2018-19 Proposed Budget. Future payments will be included in subsequent proposed budgets.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of the purchase of a new multi-purpose frontline fire engine from Siddons-Martin Emergency Group, LLC., utilizing a BuyBoard cooperative purchasing contract, and approval of a resolution with Government Capital Corporation for short term financing.