#17 - Tender 2 Replacement Purchase

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STAFF REPORT DATE: October 15, 2024 ITEM #: TO: City Council FROM: Dustin Kalis, Fire Chief AGENDA ITEM: Purchase CIP Project F-009 – Tender 2 Replacement REVIEWED BY: Nicole Miller, City Administrator Clarissa Hadler, Finance Director BACKGROUND: The Fire Department is requesting to purchase one new replacement fire engine and equipment as part of the department’s vehicle replacement program. The 2025 – 2034 Capital Improvement Plan included the replacement of Tender 2 in 2027. This purchase will replace our current Tender 2 purchased in 2007. This project was initially presented to council during the budget workshop on August 27, 2024. The new engine is scheduled for replacement in our 2027 CIP consistent with our established vehicle replacement program. This was originally budgeted as a 2027 CIP purchase but due to rapidly increasing costs (4% - 10% annually) and the significant length of replacement build time, this request to purchase is being presented now. Since the workshop, staff has worked with the manufacturer on securing a 2024 diesel engine that will provide a $50,000 project savings over a 2025 model. Current build time is currently estimated at 26 – 30 months from time of order. The vehicle being replaced will be sold upon the arrival of the new engine. The Fire Department is also seeking approval to utilize the Sourcewell Cooperative Purchasing Program for this purchase. This cooperative purchasing program allows the City of Lake Elmo purchasing opportunities at a reduced cost avoiding the formal bidding process. This allows the fire department to work directly with a specific manufacturer to ensure we are purchasing the best apparatus that will meet the needs and demands of the fire department while assuring financial value. This process is compliant with Minnesota State Statutes and the City of Lake Elmo Purchasing Policy. This process has been used for the previous purchases of Ladder 1, Rescue 1, Tender 1 and Engine 1. The department will purchase this fire engine from Rosenbauer Minnesota, LLC who has been the manufacturer of all of our current large apparatus. By staying with Rosenbauer, we maintain fleet consistency of our large front-line apparatus. This apparatus will share the same cab and chassis that are already familiar to our staff and provide an ease of maintenance and long-term costs.