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13-R-19 - Authorizing the Purchase of Fire TruckRESOLUTION NO. 13-R-19 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR THE PURCHASE OF A FIRE TRUCK AND ASSOCIATED EQUIPMENT AND TO AUTHORIZE THE SOLICITATION OF FINANCING FOR THE PURCHASE OF THE FIRE TRUCK AND EQUIPMENT, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the Schertz Fire Rescue has a need to replace a 1995 fire truck that has become unreliable due to its age and condition, and furthermore the Department uses a first line fire truck having nearly 100,000 miles and is in need of moving tl~t truck to reserve status; and WHEREAS, the City Council approved the 2012-2013 City budget which included the purchase of a fire truck and Schertz Fire Rescue has done due diligence in pricing and investigating functions of more than one manufacturer of fire truck acceptable to the Department; and WHEREAS, the Schertz Fire Rescue has chosen Pierce Manufacturing as meeting its pricing and functional requirements for fire truck, and will purchase associated capital equipment as part of this project, then BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute a contract with Pierce Manufacturing and/or its dealer Siddons-Martin Emergency Group, to purchase a fire truck described in Exhibit A, and to solicit funding for the purchase of the fire truck and associated capital equipment through the use of tax notes in an amount not to exceed $835,000 exclusive of all fees and interest, and a total project cost over the Iife of the loan not to exceed $870,000. Section 2. The recitals contained in the preamble hereof ace hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the lrlatters resolved herein. Section ~4. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Resolution and the application 50459012.1 of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notiue of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Govei~lment Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this 12`x' day of March, 2013. CITY OF SCHERTZ, TEXAS Cedric Edwards, Sr., Mayor Pro-Tem ATTEST: renda Dennis, City Secretary (CITY SEAL) 5(}459012.1 EXHIBIT A FIRE TRUCK AND EQUIPMENT lea Type 1 Engine with seating for four personnel, 1250 gpm pump, 500 gallon water tank, 30 gallon foam tank, Compressed air foam system, 75 foot aerial ladder, and associated equipment. Estimated Fire Truck Cost Less Prepayment discount Total Vehicle Add Capital Equipment $780,430 $ 27,373 $753,057 $ 66,943 P25 Compliant Radios $34,000 Generator, Hydraulic tools $32,943 Add Finance Fees {SWS Securities) Total Financed Amount Estimated total project cast {5 year note) $ 15,000 $835,000 $864,842 soas9oia.i A-1 / , ~~~, CITY uy o sn ~~dd] '. ~i (b ~F ~ ~4PO Il Memorandum FIf7E Y ~~~ ~. ~+e5cU6 Date: March S, 2013 To: City Council From: David Covington, Fire Chief Subject: Fire Truck Backup Information The Fire Department is seeking to purchase a new custom fire engine with aerial ladder, commonly called a Quint. The Quint will take the place of Engine 2 as a front Line piece of equipment allowing that unit, with nearly 100,000 miles to move to a back up role as a spare engine. As soon as practicable, the existing spare engine, a 1995 Freightliner that has exceeded its usefial life, will be removed from sewice. The Fire Department, through research of available fire truck manufacturers, narrowed the search for the Quint down to two manufacturers, Ferrara Fire Truck of Baton Rouge, LA, and Pierce Manufacturing, a division of Oshkosh Corporation of Appleton, WI. A team from Schertz Fire Department toured both facilities and compared specifications and costs from each manufacturer. While comparing exact replicas from two different manufacturers is impossible, we focused on the most comparable models from each. The Quantum PUC 7S' HAL CAFS, 1500gpm, 500 Tank, Quint from Pierce Manufacturing was not only the preferred unit but was nearly $50,000 cheaper than the Ferrara unit. Both units were compared using the lesser of Buyboard or HGAC Cooperative purchase and electing the prepayment discount option. With an interest rate estimated below 2%, the benefit of prepaying and taking a substantial discount was considered advantageous. The prepayment will be secwed by a vendor's performance bond purchased by the vendor. In addition, purchasing certain required capital equipment outside the vehicle contract will result in a savings as well. The Pierce Quantum has the following major features: 75' aluminum ladder 500 gal water ISOOgpm PUC (pump under chassis) fire pump 30 gal Type A and B foam tanks Compressed Air Foam System (CAFS) Cummins diesel engine Allison Transmission Independent Front Suspension Sales Price = $7$0,430.00 Price with discount including performance bond ~ $753,057.00 Associated equipment (capital equipment expected to have a useful life of at least ten years} Price for capital equipment on vehicle = $ 66,943.00 P25 Phase 2 Radios $34,000.00 Equipment= $32,943.00 Financing SWS group will charge $15,000 in financing fees over the life of the loan. The amount of the note will be $835,000 financed for 5 years. The annual payment would average $172,974 per year. The interest rate averages 1.17% and the total of payments would be no mare than $ 864, 842. SWS`so1J-rl[w~sT ~ROtIP SECiJRI11E5 r311lt[tl - L['~I!!I A[lX]LIt:~ BDND DEBT SEitV[CE City of Scheriz, Texas 5835,000 Tax Notes, Series 2013 - 5 Years Dated Date D4124/2013 Delivery Date 44/24/2413 Period l;ndiug Principal Coupon interest Debt Service Mnual Debt Service 02/01f2D14 160,000 1,000% 7,536.71 167,536.71 08/01/2014 4,097.50 4,097.SD 09/30/2014 171,634.21 42/01/2015 165,000 1.000% 4,097.5D 169,097.50 08/01/2015 3,272.50 3,272.50 09/30/2015 172,370.00 02/01/2016 170,OOD 1.000% 3,272.50 173,272.50 08/0112016 2,422.50 2,422,50 09/30/20 i6 175,695.00 02/01/2017 170,000 1.250% 2,422.SD 172,422.54 08/01f2017 1,360.00 1,360.00 09/30/2017 173,782.50 021D1/2018 17D,000 1.600% 1,360.00 171,360.00 09130!201 S 171,360.OD 835,OOD 29,841.71 864,841.71 864,841.71 Mar 1, 2013 8:48 am Prepared by Southwest Securities, Inc. (Finance 7.003 Schertz:SCHERTZ-NOTE513A) Pagc 1