From
Caroline Siskowic, Financial Analyst
Title
Authorize the purchase and prepayment of Fire Department Quint 10, Reserve Quint and Replacement Engine 4 from Siddons-Martin through Buyboard price agreement at a total cost of $2,100,001 after a $28,000 trade-in and $63,372 prepayment discounts; and the purchase of related equipment at a total cost of $172,498 through current price agreements, HGAC and BuyBoard contracts according to City purchasing policies and procedures.
Presenter
Robert Fite, Fire Chief
Recommended Action
Approve
Analysis
The purchase of a Reserve Quint (WO#01500803), a quint for Station 10 (WO#01500703) and the replacement of an Engine (WO#01500903) for the Fire Department are planned purchases for FY2015 . Engine 4 was originally planned for FY2014, however, it was postponed until FY2015 to allow for the replacement of Truck 8 with Quint 8 in FY2014. A trade-in of $28,000 will be credited towards the purchase of the new engine and discounts totaling $63,372 will be credited with the full prepayment of all units. A larger prepayment discount has not been allotted for the reserve unit due to the reduction in price to accept a pre-built unit instead of custom made unit as with Quint 10. Grand total prepayment for these units is $2,100,001.
Reserve Quint $670,041.39
Buyboard Fee $ 1,500.00
Prepayment Discount $ 2,564.00
Trade-in Credit $ 28,000.00
Total for Reserve Quint $640,977.39
Quint 10 $932,520.00
Prepayment Discount $ 38,140.00
Total Quint 10 $894,380.00
Engine $587,312.00
Prepayment Discount $ 22,668.00
Total Engine $564,644.00
These units will be purchased using Buyboard contract #399-12 expiring August 31, 2015. The balance of $172,498 will be used to fully equip these units with hose, nozzles, tools and equipment using vendors from HGAC, Buyboard and current City price agreements according to City purchasing policies and procedures.
Diana Ortiz, Finance Director, has reviewed the prepayment recommendation and is in agreement that these discounts would be greater than interest earned in this case. Siddons-Martin is a reputable business we have been purchasing our equipment from for many years. In previous years we have also prepaid to this vendor with no issues developing in the delivery or manufacturing of the unit.
Delivery of the Reserve Quint is expected in December 2014, Quint 10 estimated delivery would be September/October 2015 and Engine 4 estimated delivery would be January/February 2015.
Financial Consideration
Funding for the purchase of Reserve Quint, Quint 10, Engine 4 Replacement and associated equipment is available as follows:
1. $660,000 for Reserve Quint and related equipment Fire Capital Projects Fund (400591) - (WO# 01500803)
2. $954,500 for Quint 10 and related equipment Fire Capital Projects Fund (400591) - (WO# 01500703)
3. $658,000 for Engine 4 Replacement Fire Capital Projects Fund (400591) - (WO# 01500903)