06-08-2005 Council Agenda - Laserfiche WebLink

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`4,i/ 6 79( 14 Wyeeedg MAYOR Bill Blesener COUNCIL Jim LaValle Rick Montour Barbara Allan John Keis 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Itanson www.ci.little-canacla.mn.us MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: June 3, 2005 RE: Fire Truck Purchase The purchase of a new fire pumper to replace the 1982 unit was planned in our capital improvement program for 2006 at a cost of $446,625 less a contribution of $96,625 from the Fire Dept (went for a net cost of $350,000. Given the extensive lead -time associated planning and construction of a new fire truck, the Little Canada Fire Department (LCFD) has been working on this issue for a number of months. (Mayor Blesener and I have participated in their committee meetings pursuant to the Equipment Replacement Policy we put in place a number of years ago.) LCFD has received proposals for the new truck. Three proposals were received with the vendors having a choice of one of two specification packages. (One was based on a Pierce Truck the other was based on a General Safety Truck) By having two packages, it was felt we could introduce more competition into the pricing by not allowing one vendor's specifications to control the program. Base bids plus equivalent equipment pricing that were received are as follows: • General Safety - $418,317 • North Central - $422,230 • Pierce - $418,928 Various financing options were also included. Based on staffs review of the options, the best value for the City is the purchase of a Pierce truck with the price paid in full upon approval of the contract. This achieves a net cost of $410,203 (this is based on the interest rate (4.25 %) we are being credit by Pierce and their shorter construction time.) The issue this option creates for us is the truck payment was not budgeted until 2006. (Due to the normal lead -time of constructing a truck and past payment practices.) With the full prepayment approach, we would need to amend the 2005 budget to authorize the purchase this year. LCFD also wants to add a couple of other safety features that they were able to negotiate at a dealer's cost of $2,776 (see memo from LCFD). They also upped their contribution to $100.000. Therefore, the total cost of the truck with full prepayment is $421,704 less a $100,000 from LCFD for a net cost to the City of $321,704. Staff recommends we authorize purchase of the Pierce Truck with full prepayment of $421,704 and subject to a $i 00.000 contribution from LCFD by September 6. 2005.