HomeMy WebLinkAboutMINUTES - 10132015 - FPD D.4RECOMMENDATION(S):
1. APPROVE and AUTHORIZE the Fire Chief, or his designee, to execute a purchase contract with Pierce
Manufacturing, Inc. for the manufacture and sale of four (4) Type I fire engines, one (1) 100 foot aerial ladder truck,
and one (1) heavy rescue truck in an amount not to exceed $4,200,000.
2. APPROVE and AUTHORIZE the Fire Chief, or his designee, to execute the second lease schedule to Master Lease
Agreement with PNC Equipment Finance, LLC for an amount not to exceed $4,900,000, including finance charges,
with annual payments not to exceed $500,000 and a term not to exceed 10 years for the lease-purchase of the Pierce
engines.
3. APPROVE and AUTHORIZE the Fire Chief, or his designee, to execute the third lease schedule to Master Lease
Agreement with PNC Equipment Finance, LLC for an amount not to exceed $231,000, including finance charges,
with annual payments not to exceed $29,000 and a term not to exceed 9 years to pay for additions and changes to the
2014 order of fire apparatus previously authorized by the Board on December 9, 2014.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 10/13/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, Director
Candace Andersen,
Director
Karen Mitchoff, Director
Federal D. Glover, Director
ABSENT:Mary N. Piepho,
Director
Contact: Lewis Broschard, Asst Fire
Chief 925-941-3501
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes
of the Board of Supervisors on the date shown.
ATTESTED: October 13, 2015
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
D.4
To:Contra Costa County Fire Protection District Board of Directors
From:Jeff Carman, Chief, Contra Costa County Fire Protection District
Date:October 13, 2015
Contra
Costa
County
Subject:Fire Apparatus Acquisition and Lease-Purchase Program
FISCAL IMPACT:
The proposed order of six (6) fire apparatus is valued at approximately $4,200,000 including sales tax and all
associated charges. The purchase price for the six (6) fire apparatus will be paid by PNC Equipment Finance,
LLC under the Master Lease Agreement.
BACKGROUND:
On December 9, 2014, this Board approved and authorized the Fire Chief to enter into a Master Lease Agreement
with PNC Equipment Finance, LLC (“PNC”), and on December 23, 2014, the District entered into the Master
Lease Agreement (the “MLA”) with PNC. The MLA was used in 2014 to finance the purchase of nine engines
from Pierce Manufacturing as set forth in Lease Schedule No. 187134000, dated December 23, 2014.
The District now desires to finance the purchase of additional equipment from Pierce and additions to existing
equipment purchased from Pierce by entering into two separate lease schedules to the MLA.
The Contra Costa County Fire Protection District (Fire District) has deferred significant capital purchases of fire
apparatus for several years. An order was placed in December, 2014 under the same lease-purchase program
format. The last apparatus purchase made solely with Fire District funds was in 2007.
The Fire District has a fleet of 34 Type I engines. Those engines are distributed as 18 frontline engines for
primary response, three cross-staffed engines at fire stations staffed with aerial apparatus, and 13 reserve and
training engines. The average age of the Type I engine fleet is 15 years with an average mileage of over 100,000
miles. Fourteen of these engines have mileage well in excess of 100,000 and seven exceed 125,000. The Fire
District spends an average of $19,113 in maintenance on the current Type I engine fleet annually, with older and
higher mileage engines accounting for the majority of the maintenance expenses. The Fire District has a fleet of
eight aerial apparatus. Seven are "quint" apparatus, which are ladder trucks equipped with a fire pump, hose, and
water. One aerial apparatus is a "truck" apparatus that carries no water, pump, or hose. These aerial apparatus are
distributed as five frontline aerials for primary response and three spares. The average age of the quint fleet is
now 15 years. The single truck is four years old. The average mileage of the aerial fleet is over 100,000 with the
two oldest aerials having an average mileage of 125,000. The Fire District spends an average of $22,668 per year
on maintenance for these vehicles.
The National Fire Protection Association (NFPA) Standard 1901 (Standard for Automotive Fire Apparatus) and
1911 (Standard for the Inspection, Maintenance, Testing, and Retirement of In-Service Automotive Fire
Apparatus) both recommend front-line apparatus be retired into a reserve status after 15 years of service. This is
primarily for safety reasons. Older apparatus do not afford firefighters the same level of safety as modern
apparatus due to cab designs, inherent safety features incorporated into modern fire apparatus design, modern
braking systems, and other considerations. The standards further recommend that all reserve apparatus be
removed from service after no more than 25 years of total service. The standards comment on high use, mileage,
and other factors as additional determinants to retire front-line apparatus sooner than 15 years. In our Fire District,
the high use and mileage of our front-line apparatus suggest retirement sooner than 15 years.
The acquisition of the apparatus in this order will accomplish several objectives. The new apparatus will have a
direct and immediate impact on our ability to provide increased reliability for emergency response, as compared
to our existing fleet, with reduced out-of-service time for maintenance and repairs. The new apparatus will have a
direct and immediate impact on reducing our maintenance costs now and into the future as a result of not only the
age of the apparatus but also the quality of apparatus being acquired. The new apparatus will enable the Fire
District to comply with the recommendations of NFPA 1901 and 1911, increasing firefighter safety and fleet
reliability. This additional investment in capital, on an annual basis, over the next ten years will enable the Fire
District to take another significant step forward in meeting one of the recommendations of the Fitch study, which
identified the need to invest at least 4% of our budget into facilities and equipment each year. The need for safe,
reliable, and modern fire apparatus is paramount to fulfilling the mission of the Fire District.
The funds needed for this lease-purchase program are included in the current fiscal year budget, have been
considered in future year budget forecasts, and represent less than 1/2% of the annual budget. The lease-purchase
program allows the Fire District to acquire a larger order of apparatus with payments spread out over 10 years.
The Fire District has used this type of financing arrangement in the past for large orders of apparatus. This Fire
District does not have the capital available to acquire these apparatus without the use of a lease-purchase program.
The Fire District relies on a diverse fleet of engine, truck, quint, squad, and rescue vehicles to fulfill our mission
of providing safe, reliable, and efficient emergency services. This order will replace approximately 22% of our
frontline engines, 20% of our frontline aerial apparatus, and provide a new rescue apparatus which will enable us
to respond more effectively to complex rescues throughout the Fire District. The rescue truck enhances our
capabilities by providing an apparatus that can carry the tools and equipment necessary to arrive at a scene
quickly and provide our personnel a platform to work from safely and efficiently. The current rescue vehicles are
comprised of small utility trucks and trailers required to carry all the rescue equipment necessary. Their response
is often hindered by the need to attach trailers, and because they are towed, their response times are often
negatively impacted.
If approved, new fire apparatus will begin arriving in October 2016 and will be in service shortly after delivery to
stations throughout the Fire District. Older apparatus will be removed from service or placed in reserve status to
meet the needs of the Fire District. The integration of new apparatus into the fleet and the subsequent removal of
older apparatus from frontline service will have a positive impact on reducing maintenance and repair costs which
will assist in offsetting a portion of the annual cost of the lease-purchase program.
CONSEQUENCE OF NEGATIVE ACTION:
The Fire District will not be able to acquire new apparatus. The current age and condition of the fleet will
continue to deteriorate and negatively impact our ability to provide safe, reliable, and effective emergency
response. Maintenance costs would continue to increase having an adverse impact on the operational budget.
Increases in out-of-service time for fire crews will increase as a result of mechanical breakdowns. The District
will not be able to take advantage of the UASI funds awarded for the purchase of a new rescue unit.
CHILDREN'S IMPACT STATEMENT:
No impact.
ATTACHMENTS
Rescue Drawing
Type I Engine Drawing
100' Aerial Drawing
Pierce Manufacturing Proposal
Lease-Purchase Proposal
2014 Order Additions Lease-Purchase Proposal
Pierce Manufacturing Inc.
AN OSHKOSH CORPORATION COMPANY • ISO 9001:2000 CERTIFIED
2600 AMERICAN DRIVE
POST OFFICE BOX 2017
APPLETON, WISCONSIN 54912-2017
920-832-3000 • FAX 920-832-3208
www.piercemfg.com
PROPOSAL FOR PIERCE® FIRE APPARATUS
Contra Costa County Fire Protection District DATE September 9, 2015
2010 Geary Road QUOTE NO. 90909-15
Pleasant Hill, CA 94523 EXPIRES November 30, 2015
SALES REP. Ryan Wright
The undersigned is prepared to manufacture for you, upon an order being placed by you, for final acceptance by Pierce
Manufacturing, Inc., at its home office in Appleton, Wisconsin, the apparatus and equipment herein named and for the
following prices:
OPTION A: 100% PRE-PAYMENT AT TIME OF CONTRACT SIGNING
# Description Each
A Four (4) Velocity 1500 GPM Pumpers 2,303,798.20
B One (1) Velocity Heavy Duty Rescue 625,931.32
C One (1) 100’ Velocity Tractor Drawn Aerial 1,076,455.52
D DISCOUNT FOR 100% PRE-PAYMENT AT CONTRACT SIGNING (201,031.13)
E APPARATUS COST 3,805,153.91
F State Sales Tax @ 8.50% 323,438.08
G TOTAL PURCHASE PRICE 4,128,591.99
OPTION A - 100% PRE-PAYMENT AT TIME OF CONTRACT SIGNING TERMS AND CONDITIONS:
1) The Contra Costa County FPD shall pay the entire contract amount of $4,128,591.99 within fifteen (15)
calendar days of receipt of invoice to Pierce Manufacturing Inc.
2) Customer is entitled to this discount if Oshkosh Capital makes payment on behalf of the
customer. Oshkosh Capital shall pay the entire contract amount of $4,128,591.99 within fifteen (15)
calendar days of receipt of invoice to Pierce Manufacturing Inc.
3) Proposed delivery timeframe after receipt / acceptance of contract (or purchase order) will not begin
until full payment of $4,128,591.99 is received by Pierce Manufacturing Inc.
4) If payment of $4,128,591.99 is late and if the customer elects not to have the delivery extended,
$925.00 PER CALENDAR DAY will be deducted from the 100% pre-payment discount at time of final
invoice.
2
OPTION B: PAYMENT AT TIME OF DELIVERY / ACCEPTANCE
# Description Each
A Four (4) Velocity 1500 GPM Pumpers 2,303,798.20
B One (1) Velocity Heavy Duty Rescue 625,931.32
C One (1) 100’ Velocity Tractor Drawn Aerial 1,076,455.52
D APPARATUS COST 4,006,185.04
E State Sales Tax @ 8.50% 340,525.73
F TOTAL PURCHASE PRICE 4,346,710.77
Said apparatus and equipment are to be built and shipped in accordance with the specifications hereto attached, delays
due to strikes, war, or intentional conflict, failures to obtain chassis, materials, or other causes beyond our control not
preventing, within about 285 to 325 CALENDAR DAYS ON PUMPERS, 465 to 505 CALENDAR DAYS ON TILLER, 510
to 550 CALENDAR DAYS ON RESCUE after receipt of this order and the acceptance thereof at our office at Appleton,
Wisconsin, and to be delivered to you at CONCORD, CALIFORNIA.
The specifications herein contained shall form a part of the final contract, and are subject to changes desired by the
purchaser, provided such alterations are interlined prior to the acceptance by the company of the order to purchase, and
provided such alterations do not materially affect the cost of the construction of the apparatus.
The proposal for fire apparatus conforms with all Federal Department of Transportation (DOT) rules and regulations in
effect at the time of bid, and with all National Fire Protection Association (NFPA) Guidelines for Automotive Fire Apparatus
as published at the time of bid, except as modified by customer specifications. Any increased costs incurred by first party
because of future changes in or additions to said DOT or NFPA standards will be passed along to the customers as an
addition to the price set forth above.
Any Purchase Order (PO) issued as a result of this proposal should be made out to Pierce Manufacturing Inc.
Unless accepted by November 30, 2015, the right is reserved to withdraw this proposition.
Respectfully Submitted,
Authorized Sales Representative
Tax Exempt Lease Purchase
SALES ORGANIZATION: Golden State - Ryan Contact information:
LESSEE: Contra Costa County October 6, 2015
TYPE OF EQUIPMENT:
Four (4) Pierce Velocity pumpers,
one (1) Velocity HDR and one (1)
Velocity Tractor Drawn Aerial
Kim Simon
EQUIPMENT COST:
$4,128,591.99 (including sales tax
and discounts)
Locator: B3-B230-05-07
CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St
TRADE-IN: $0.00 Columbus, OH 43215
DELIVERY TIME: Std delivery Ph: (800) 820-9041, ext. 1
PAYMENT MODE: Annual In Advance M: (614)-670-3994
FIRST PAYMENT DUE DATE: Upon contract signing with Pierce Fax:(800)-678-0602
LEASE COMMENCEMENT DATE: Upon contract signing with Pierce Kim.simon@pnc.com
Term 10 years
Number of Payments 10 annual
Payment Amount $459,065.26
NOTE: All lease documents must be fully executed within 14 days of the date of this proposal. Failure to receive completed documents may alter the final payment schedule due to
changes in rates and/or discounts.
PERFORMANCE BOND: To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for directly to Pierce manufacturing or financed by PNC
Equipment Finance as part of the transaction
TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement with a $1.00 buy out option at end of lease term. Said agreement shall be a net lease arrangement whereby lessee is
responsible for all costs of operation, maintenance, insurance, and taxes.
BANK QUALIFICATION: This proposal assumes that the lessee will not be issuing more than $10 million in tax-exempt debt this calendar year. Furthermore, it is assumed that the lessee
will designate this issue as a qualified tax-exempt obligation per the tax act of 1986.
LEGAL TITLE: Legal title to the equipment during the lease term shall vest in the lessee, with PNC Equipment Finance perfecting a first security interest
AUTHORIZED SIGNORS: The lessee's governing board shall provide PNC Equipment Finance with its resolution or ordinance authorizing this agreement and shall designate the
individual(s) to execute all necessary documents used therein.
LEGAL OPINION: The lessee's counsel shall furnish PNC Equipment Finance with an opinion covering this transaction and the documents used herein. This opinion shall be in a form and
substance satisfactory to PNC Equipment Finance.
VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section 147(f) of the Internal Revenue Code of 1986 shall be
conducted to authorize this transaction. It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing.
This proposal will be valid for fourteen (14) days from the above date and is subject to final credit approval by PNC Equipment Finance and approval of the lease documents in PNC
Equipment Finance's sole discretion. To render a credit decision, lessee shall provide PNC Equipment Finance with their most recent two years' audited financial statements, copy of their
most recent interim financial statement, and current budget.
Accepted by:____________________________________ Proposal submitted by_____________________
Tax Exempt Lease Purchase
SALES ORGANIZATION: Golden State - Ryan Contact information:
LESSEE: Contra Costa County October 6, 2015
TYPE OF EQUIPMENT: Additions to 2014 Purchases Kim Simon
EQUIPMENT COST: $208,053.18 Locator: B3-B230-05-07
CUSTOMER DOWNPAYMENT: $0.00 155 East Broad St
TRADE-IN: $0.00 Columbus, OH 43215
DELIVERY TIME: Std delivery Ph: (800) 820-9041, ext. 1
PAYMENT MODE: Annual In Arrears M: (614)-670-3994
FIRST PAYMENT DUE DATE: August 7 2016 Fax:(800)-678-0602
LEASE COMMENCEMENT DATE: October/ November 2015 Kim.simon@pnc.com
Term 9 years
Number of Payments 8 annual
Payment Amount $28,804.56
NOTE: All lease documents must be fully executed within 14 days of the date of this proposal. Failure to receive completed documents may alter the final payment schedule due to
changes in rates and/or discounts.
PERFORMANCE BOND: To utilize the prepay program, a performance bond is required. Said performance bond shall be paid for directly to Pierce manufacturing or financed by PNC
Equipment Finance as part of the transaction
TYPE OF FINANCING: Tax-exempt Lease Purchase Agreement with a $1.00 buy out option at end of lease term. Said agreement shall be a net lease arrangement whereby lessee is
responsible for all costs of operation, maintenance, insurance, and taxes.
BANK QUALIFICATION: This proposal assumes that the lessee will not be issuing more than $10 million in tax-exempt debt this calendar year. Furthermore, it is assumed that the lessee
will designate this issue as a qualified tax-exempt obligation per the tax act of 1986.
LEGAL TITLE: Legal title to the equipment during the lease term shall vest in the lessee, with PNC Equipment Finance perfecting a first security interest
AUTHORIZED SIGNORS: The lessee's governing board shall provide PNC Equipment Finance with its resolution or ordinance authorizing this agreement and shall designate the
individual(s) to execute all necessary documents used therein.
LEGAL OPINION: The lessee's counsel shall furnish PNC Equipment Finance with an opinion covering this transaction and the documents used herein. This opinion shall be in a form and
substance satisfactory to PNC Equipment Finance.
VOLUNTEER FIRE DEPARTMENTS: If Lessee is a Volunteer Fire Department, a public hearing under the requirements of Section 147(f) of the Internal Revenue Code of 1986 shall be
conducted to authorize this transaction. It is recommended that a notice of the public hearing be published 10 to 14 days in advance of the public hearing.
This proposal will be valid for fourteen (14) days from the above date and is subject to final credit approval by PNC Equipment Finance and approval of the lease documents in PNC
Equipment Finance's sole discretion. To render a credit decision, lessee shall provide PNC Equipment Finance with their most recent two years' audited financial statements, copy of their
most recent interim financial statement, and current budget.
Accepted by:____________________________________ Proposal submitted by_____________________