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STAFF REPORT <br />DATE: August 27, 2024 <br /> <br />TO: City Council <br />FROM: Dustin Kalis, Fire Chief <br />AGENDA ITEM: CIP Project F-013 – Tender 2 Replacement – Spec and Order Timeline <br />REVIEWED BY: Nicole Miller, City Administrator <br /> Clarissa Hadler, Finance Director <br /> <br />BACKGROUND: <br />The 2025 - 2035 Capital Improvement Plan includes the replacement of Tender 2 in 2027. This <br />purchase will replace our current Tender 2 purchased in 2007. The estimated project cost for this <br />vehicle is $1,153,000.00 <br /> <br />The new engine is scheduled for replacement in our 2027 CIP consistent with our established <br />vehicle replacement program. This is budgeted as a 2027 CIP purchase but due to a number of <br />issues, the request is being made to council to approve an accelerated approval timeline to ensure <br />the truck is delivered in 2027. <br />• Rapidly increasing costs (4% - 10% annually) <br />• Significant length of replacement build time, currently estimated at 26 – 30 months from <br />time of order. <br /> <br />The Fire Department will seek approval to utilize the HGAC Cooperative Purchasing Program <br />(HGACBuy) and Rosenbauer Minnesota, LLC for this purchase. This process is compliant with <br />Minnesota State Statutes and the City of Lake Elmo Purchasing Policy. This process and <br />manufacturer choice has been used for the previous purchases of Ladder 1, Rescue 1, Tender 1 <br />and Engine 1. This apparatus will share the same cab and chassis that are already familiar to our <br />staff, provide an ease of maintenance and long-term costs. Selecting Rosenbauer will also reduce <br />the amount of time needed to produce the build specification for the replacement apparatus. <br /> <br />FISCAL IMPACT: <br />If ordered in Q4 2024, the pricing breakdown is expected to be as follows: <br />Rosenbauer Commander chassis and body per specifications: $1,100,000.00 <br />Chassis early payment deduction (4%): $-22,000 (based on chassis cost of $550,000.00) <br />• Chassis would arrive and be invoiced in 2026. <br />Chassis and body total: $1,078,000.00 <br />Loose tools, equipment, miscellaneous costs: $75,000.00 <br />Tender 2 Replacement Project Total: $1,153,00.00 <br />• Final payment would be made on delivery in 2027. <br /> <br />Estimated Sale Price of Tender 2 (2027): $125,000 - $150,000 through auction or coordinated sale. <br /> <br />QUESTIONS BEFORE COUNCIL: <br />• Does council support the fire departments accelerated timeline of specification and order <br />placement to ensure the truck is delivered in 2027?