Title
A. RESOLUTION NO. 2015-270 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY TO ENTER INTO A 10-YEAR LEASE PURCHASE AGREEMENT WITH PNC EQUIPMENT FINANCE, LLC. FOR THE ACQUISITION OF TWO (2) PIERCE ARROW XT TRIPLE COMBINATION PUMPER/FIRE ENGINES, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT
B. RESOLUTION NO. 2015-271 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY TO ENTER INTO A 10-YEAR LEASE PURCHASE AGREEMENT WITH LEASING 2, INC. FOR THE ACQUISITION OF ONE (1) HME AHRENS - FOX MODEL 34D/500 TYPE III FIRE APPARATUS/BRUSH ENGINE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT
Body
RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
Body
SUMMARY
The Chula Vista Fire Department delivers Fire, Rescue and Emergency Medical Services to Chula Vista residents, visitors, and employees every day. Emergency response services are provided with several different types of fire apparatus including triple combination pumper/fire engines, aerial ladder trucks, a heavy rescue, a brush engine and battalion chief vehicles. The Fire Department needs to replace several fire apparatus due to excessive years of service, escalating maintenance costs and safety issues. With the suspension of funding in the City’s vehicle replacement fund, the historical funding source utilized for fire apparatus replacement is no longer available. The Fire Department has identified two separate Lease/Purchase programs that provide a means to purchase two (2) Triple Combination Pumper/Fire Engines from Pierce Manufacturing and one (1) HME Ahrens - FOX 34D Type III Brush Engine from HME Incorporated. The lease/purchase programs will minimize the immediate fiscal impact.
The Fire Department is requesting authorization to enter into a 10-year lease purchase agreement with PNC Equipment Finance, LLC for the acquisition of two (2) Pierce Triple Combination Pumper/Fire Engines in order to replace existing frontline engines that will be transitioned into reserve fleet service. The fire department is also requesting authorization to enter into a 10-year lease purchase agreement with Leasing 2, Inc. to be executed by the City Manager for the acquisition of one (1) HME Ahrens - FOX 34D Type III Brush Engine in order to replace an existing frontline brush engine that is 18-years old.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act [CEQA] and has determined that the activity is not a “Project” as defined under Section 15378(b)(2) of the State CEQA Guidelines because it involves only the authorization to purchase a vehicle which is an on-going administrative and maintenance activity; therefore, pursuant to Section 15060[c][3] of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The Fire Department responds to Fire, Rescue and Emergency Medical incidents both within the City and surrounding cities. In addition, the fire department provides mutual aid assistance throughout the State of California on a reimbursable basis. These emergency services are provided with the following frontline fire apparatus - eight (8) pumper/engines, two (2) aerial ladder trucks, one (1) heavy rescue truck, one (1) brush engine and two (2) battalion chief vehicles. The reserve apparatus consist of the following - five (5) reserve pumper/engines, one (1) reserve aerial ladder truck and one (1) reserve battalion chief vehicle.
As a result of several factors including, decreased vehicle replacement funding, excessive years of service, escalating maintenance costs, increased downtime of frontline apparatus, decreased fleet depth, decreased reliability and safety issues; the Fire Department is in need of several new fire apparatus. The fire department and public works department are challenged on a daily basis with maintaining an adequate fire apparatus fleet (frontline and reserve) due to the above factors.
National Fire Protection Association (NFPA) Standard 1901 on Automotive Fire Apparatus and other National Fleet Maintenance Organizations recommend large vehicle replacements based on several criteria to include, years of service, mileage, maintenance costs, functional obsolescence, and inability to obtain repair parts as well as technology and safety improvements. After extensive research of national industry standard recommendations and standards adopted by other Fire Departments, the Fire Department recommends that fire apparatus be replaced based on 10 to 12 years of frontline service plus 5 years of reserve service for a total service life of 17 years.
The two (2) frontline pumper/fire engines that will be transitioned to reserve engines have served 13 and 14 years (respectively) to date in frontline service. The two reserve engines that will subsequently be surveyed out of the fire department’s fleet have 27 and 29 years (respectively) of total service. The brush engine that will be replaced has a total of 18 years of frontline service to date and is well beyond its’ functional, reliable and cost effective frontline service life.
The purchase of these three (3) new fire apparatus will significantly improve the overall quality, reliability, cost effectiveness, fleet depth and safety of the City’s fire apparatus fleet to help maintain a proper level of fire, rescue and emergency medical service to Chula Vista.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City of Chula Vista City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This resolution meets the goals of Operational Excellence and Healthy Community. Updating our current fleet of fire apparatus will allow the Fire Department to provide improved service. The new engines will assist with response times; improve firefighter safety, and overall operational and fiscal efficiency.
CURRENT YEAR FISCAL IMPACT
The total cost to purchase the two (2) fire pumper/engines and one (1) brush engine is $1,619,631.35. The Fire Department is recommending acquiring this equipment via two separate 10-year lease purchase agreements specific to each manufacturer that will result in annual payments in the amount of $191,363.38. The total estimated amount paid for these fire apparatus including interest will be $1,913,633.80 through the 10-year lease purchase option. The anticipated delivery of the two (2) Pierce fire pumper/engines is August of 2016, and the anticipated delivery date for the one (1) HME brush engine is May of 2016. The first lease payment is schedule to be due in August 2016; therefore, no lease payments will be due in FY2015-16.
The equipment and outfitting labor for one (1) HME brush engine for fiscal year 2015-16 is estimated at $58,000 for equipment and $6,000 for labor hours necessary to accomplish the outfitting. There is no impact to the Fire Department’s fiscal year 2015-16 budget as these funds are already included in the department’s Non-CIP Project Category.
ONGOING FISCAL IMPACT
The annual lease payment cost ($191,363.38 per year) and equipment & outfitting cost for the two (2) fire pump/engines (estimated at a one-time cost of $268,000 for FY16-17) will be added to the budget as part of the normal budget process. The table below summarizes the projected fiscal impact by fiscal year:
ATTACHMENTS
Resolutions
PNC Lease Purchase Agreement
Leasing 2, Inc. Lease Purchase Agreement
Type I Engine Quotes
Type III engine Quote
Staff Contact: Madeline Smith, Jeff Peter, David Bilby