Broken Arrow City Council
Meeting of: 6-20-22
Title:
title
Approval of and authorization to purchase two (2) Pierce fire apparatuses from Conrad Fire Equipment, Inc. pursuant to the Houston-Galveston Area Council (HGACBuy) contract, using the “prepay” option, for the Fire Department and approve and authorize the execution of Budget Amendment Number 39 for Fiscal Year 2022
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Background:
Fire truck manufacturers estimate that a new apparatus ordered today would be ready for delivery in twenty-six (26) months. The Fire Department is requesting to purchase two (2) fire apparatuses with an appropriation from Public Safety Sales Tax Fund-Fire fund balance with the intent to reimburse the Public Safety Sales Tax Fund-Fire for the apparatuses from future 2018 GO Bond sales. The reimbursement resolution, Resolution # 1466 is included as an item in the General Business portion of this agenda.
The new apparatuses would replace a 2010 (Engine 7) and 2013 (Engine 1) frontline fire apparatus. These apparatuses would move to reserve status.
H-GAC's Cooperative Purchasing Program, known as HGACBuy, was established pursuant to Texas Interlocal Cooperation Act. The Act allows local governments and certain non-profits to contract or agree under the terms of the Act to make purchases or provide purchasing services and other administrative functions appropriately established by another government entity.
At the July 17, 2018 City Council Meeting, the Council approved of an Interlocal Contract (ILC) between the City of Broken Arrow and HGACBuy and gives the City access to HGACBuy contracts. By entering into this agreement, the City was be able to verify that H-GAC’s competitive bidding processes are in accordance with Oklahoma State Competitive Bid Act and City purchasing requirements.
Pierce manufacturing routinely secures a loan to build each apparatus. The interest from that loan is passed along in the final purchase price of the vehicle if payment is made upon delivery. Pierce offers a “pre-payment discount” if payment is made upon ordering the vehicle, since the loan interest can be avoided. The combined prepayment discount for these Pierce apparatus is $65,741.86. The funds for this purchase are currently available should Council choose to accept the “pre-payment discount”. If the City chooses to prepay, Conrad Fire Equipment, Inc. will provide a Performance Bond to the City in the amount of the full purchase price that will protect the financial investment that is being prepaid.
Cost: $1,472,139.94
Funding Source: Fire Sales Tax Fund
Requested By: Jeremy Moore, Fire Chief
Approved By: City Manager’s Office
Attachments: HGAC Itemized Bid Tab
Quote
Budget Amendment #39
Recommendation:
recommend
Approve and authorize the purchase of two (2) Pierce rescue/fire apparatus from Conrad Fire Equipment, Inc. pursuant to the Houston-Galveston Area Council (HGACBuy) contract, using the “prepay” option, for the Fire Department and approve and authorize the execution of Budget Amendment Number 39 for Fiscal Year 2022.
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