HomeMy WebLinkAbout#17 - Tender 2 Replacement Purchase 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.
ISSUE BEFORE COUNCIL:
Whether or not to authorize the City Administrator to enter a contract for replacement of Tender
2 as structured with Rosenbauer Minnesota, LLC, utilizing Sourcewell cooperative purchasing
program as well as the associated equipment and equipment mounting costs not to exceed
$1,177,000.00.
PROPOSAL DETAILS/ANALYSIS:
Proceeding with this purchase will benefit the city and its citizens with an updated first due
firefighting engine that is purpose designed as an emergency response vehicle and will provide
better features for the purpose of emergency response, responder safety and equipment storage.
The fire department replaces vehicles on a rotating basis based on each individual vehicles need.
The engine will be utilized by all fire department staff to respond to emergency incidents 24 hours
a day 365 days per year to provide critical response capabilities to our city. This vehicle is expected
to be in service for 20 years.
FISCAL IMPACT:
Budgeted in the fire department’s 2027 CIP, is an amount of $1,100,000 for this vehicle. Loose
tools and equipment needed for this replacement vehicle will be funded by the Vehicle
Replacement Fund and the Fire Department Equipment and Project Fund and are estimated at
$75,000.
Rosenbauer Commander chassis and body per specifications: $1,120,924.00
Chassis early payment deduction (3.84%): $-19,477.00 (based on chassis cost of $507,150.00)
Chassis and body total: $1,101,447.00
Loose tools, equipment, miscellaneous costs: $75,000.00
Tender 2 Replacement Project Total: $1,176,447.00
Estimated Sale Price of Tender 2 (2027): $125,000 - $150,000
OPTIONS:
1) Approve the purchase of one new Engine and equipment.
2) Deny purchase.
RECOMMENDATION:
Motion: “To approve purchase of 2027 CIP Project, F-009 Tender 2 Replacement, from
Rosenbauer Minnesota, LLC, as well as the associated equipment and equipment mounting at
a total project cost not to exceed $1,177,000.00 and declare the 2007 Spartan Gladiator Tender
Pumper as retired equipment and approve the sale of Retired Equipment as detailed in the
City’s Purchasing Policy upon delivery of new apparatus.”
ATTACHMENTS:
1. Rosenbauer / Sourcewell Pricing Purchase Order (Contract #113021-RSD)
2. Truck Drawing