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HomeMy WebLinkAboutOrdinance 4479 ORDINANCE NO. 4479 AN ORDINANCE WAIVING THE REQUIREMENTS OF FURTHER COMPETITIVE BIDDING TO ALLOW THE CITY OF FAYETTEVILLE TO ENTER INTO A FIFTEEN (15) YEAR PURCHASING AGREEMENT WITH EMERGENCY ONE FIRE APPARATUS, INC. AND LEECO, INC. WHEREAS, acquisition of fire apparatus from a single-source vendor will result in a standardized fleet, and; WHEREAS, this will allow for standardized training for Fire Department personnel, as well as more efficient and effective equipment maintenance and warranty work, and; WHEREAS, such standardization will result in both increased operating economies and a higher level of fire protection for the citizens of Fayetteville, and; WHEREAS, the City Council finds that such circumstances constitute an exceptional situation where further competitive bidding is not feasible or practical. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas, hereby waives the requirements of further competitive bidding to allow the City of Fayetteville to enter into a fifteen (15) year purchasing agreement with Emergency One Fire Apparatus, Inc. and Leeco, Inc. for the acquisition of fire apparatus. PASSED and APPROVED this 15th day of April, 2003. / APPROV jr - 'i , '•, DAN COODY, Mayor IVA By: SONDRA SMITH, City Clerk NAME OF FILE: Ordinance No. 4479 CROSS REFERENCE: Item # Date Document 1 04/15/03 lord. 4479 2 04/01 /03 Staff Review Form w/attachments: memo to City Council Fire Apparatus Purchase Plan Power Point presentation proposed replacement plan 3 04/17/03 memo to Davis 4 04/19/03 Affidavit of Publication 5 04/19/03 memo to Davis NOTES: FAYETTENILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Steve Davis Finance & Internal Services From: Clarice Buffalohead-Pearman City Clerk Division Date: April 117, 2003 Re: Affidavit of Publication Attached is a copy of the above affidavit for Ordinance No. 4479 regarding fire equipment The original will be filed with the original ordinance. If anything else is needed please let the clerk's office know. /cbp attachments NORTIOVEST ARKANSAS EDITION AA.awas Demomt 7MOazette AFFI AVIT OF PUBLICATION I , , do solemnly swear that I am Leg I Clerk of the Arkansas Democrat-Gazette newspaper, printed and published in Lowell , Arkansas, and that from my own personal knowledge and reference to the files of said publication , the advertisement of: �_1ZQ/7Cr1 � / was inserted in the regular editions on 0//_ /9- 0i:� ** Publication Charge : $ a 9 Subscribed and swom to before me this day of Zoos. RECEIVED APR 21 2003 arr" Os= PAYE;I MVILL. Notary P c CITY CLERt<'$ OFFIor-- My Commission Expires: ORDINANCE NO. "79 AN ORDINANCE WAIVING THE REOUIREMENTS OFF MOEP L COMPETRNE BIDDING . TO ALLOW THE CTrV OF _=invoijafi �errt-Affidavit. ' FAYETTEVILLE TO ENTER INTOA FlFTEEN (15) VEARPURCHASING AGREEMENT WRH EMERGENCYONE-FIREnt. ' APPARATUS, INC. AND LEEOI INC.nsas WHEREAS. awe of re epvaretus horn a grille-mt.00`vend«wB maid Ina stands dbad fleet, and: UNTY11 -05.2011WHEREAS, this wte avow for alar daN ied training for Frgas m Fre oepannia,t peroor., , se wetl ore OMCIM end effective epulpneni maimenance and warranty work, and; �I. WHEREAS, Such starderdlZation W re" In both increased operating soonorNes end a fsgher Ie+el of fire protacacn for the ClUers of FeyettevAlle, and: WHEREAS, the OaY C=0 bids that WCh Ga+r¢lanGe9 canetitule,en exceptbnel sitmton where kdher competill" bidding Is not feasble or precacal. N NOW, THEREFORE, BE R ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYE TEVILLE, ARKANSAS: - Season 1. That the atY Cwncl of de CRY of FeyeftWIO. Aflmnsas, hereby Wakes the regd ements of tWher cornpetNve bidding to afbw Ne Cly of Fayetteville to enter Into a fifteen (15) year purchasing I agreement with Emergency One Fire Apparatus, Inn. end Leeco. Inc. for the acpWgtbn of be apparatue. ` PASSED and APPROVED this 15th day of April, 2003. I APPROVED: By. r' rAN GOODY, Mayor ErrEsr. SOSO NDR4 SMRH, Cay Clerk 212 NORTH EAST AVENUE P.O. BOX 1607 • FAYETTEVILLE, ARKANSAS 72702 • (501 ) 442-1700 FAYETTEA LLE 0 THE CITY Of FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Chris Bosch Fire Operations From: Clarice Buffalohead-Pearman City Clerk Division Date: April 17, 2003 Re: Ord, No. 4479 Attached is an executed copy of the above ordinance approved by the City Council on April 15, 2003, waiving the requirements of competitive bidding and to allow the city to enter into a 15 year purchasing agreement with Emergency One Fire Apparatus, Inc. and Leeco, Inc. If anything else is needed please let the clerk's office know. /cbp attachments cc: Nancy Smith, Internal Auditor • , STAFF REVIEW FORM • G�U X AGENDA REQUEST CONTRACT REVIEW y71 GRANT REVIEW ('..�rC���� �►�(., 9"I f-� For the Fayetteville City Council Meeting of : April 15, 2003 'Y/^ DpV�ira'�us� lnc� FROM: Chris Bosch Fire Operations Fire Department Name Division Department d2A d n na 0 ACTION REQUIRED : A granting the Fire Department permission to enter into a fifteen ( 15 ) year purchasing agreement with Emergency One Fire Apparatus and Leeco Fire Equipment Inc . This agreement will provide the Fire Department with the ability to maintain and up-to-date apparatus fleet by ensuring a long term working relationship with a specific apparatus vendor . COST TO CITY : Cost of this request Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name BUDGET REVIEW: _ Budgeted Item Budget Adjustment Attached Budget Manager Date CONTR�A,C.T//GGR_ANT/LASEREVIEW: Staff recommends approval of this resolution . 3 Accounting Manager Date Internal Auditor Date City Atto ney Date Purchasing Manager Date STAFF RECCbt4E2IDATION : Cross Reference Division Head Date New Item : Yea No Department Director Date Previous Ord/Res # : sds y- / A -2 -03 Orig . Contract Date Financta Internal Services Dir . Date _ Orig . Contract Number Chiefinistrative Officer Datq Mayor 7 Date Staff Review Form - Page 2 • Description Fire Apparatus Purchase Plan Meeting Date April 15 , 2003 Comments : Reference Comments : Budget Manager Accounting Manager City Attorney Purchasing Manager ADA Coordinator Internal Auditor Grants Coordinator From the Desk of the Fire Chief Fayetteville Fire Dept 303 W. Center St. Fayetteville, AR. 73701 (479) 5758365 Memo TO: Fayetteville City Council From: Chris Bosch, Fire Chief CC: Dan Coody, Mayor, Hugh Earnest, Chief Administrative Officer Steve Davis, Internal Services Director Date: March 31 , 2003 Re: Fire Apparatus Long Term Purchase Plan Attached you will find a report on the Fire Department's proposal for establishing a 15-year purchasing strategy to replace the current fleet of fire apparatus. This proposal identifies the Fire Department's current situation, the status of the existing apparatus fleet, the establishment of an ongoing maintenance program and the benefits of this type of program. My Staff and I believe this type of purchasing commitment will allow the Fire Department to improve the quality of service we deliver as identified in the Council's Guiding Principles 4) Financially Sustainable City Government Providing Top Quality, Responsive Service and 10) Reputation as a "Safe Community". Further I believe this program will allow the Fire Department to begin the process of proactively addressing the short, medium and long-term needs of the agency related to apparatus and equipment. I recommend approval of a resolution providing the Fire Department with the authority to proceed with this purchase plan. If you would like any additional information regarding this program proposal I will be happy to meet with you at your convenience. t ire Apparatus Purchase Plan Background As you know, for several months the Fayetteville Fire Department has been working on the development of a long-term purchasing strategy for fire apparatus. This program will allow the Department to work with a single source vendor who will assist with the design, construction and delivery of replacement and expansion fire units and assist the Department in providing efficient and effective emergency service delivery. Insurance Service Office, Public Protection Class The Insurance Service Office (ISO) performs regular assessments of a municipality's ability to provide fire protection. During this process ISO looks at three primary factors when determining the city's Public Protection Classification (PPC). These three criteria include the municipality's ability to handle incoming emergency calls through its dispatching center, the community's water delivery system and the community's ability to actively and effectively deploy emergency fire protection to its citizens. Cities are eligible for an ISO PPC rating in range between 9, which is the highest rating available and 1 the lowest rating available. These ratings are then used by insurance companies, as a factor m determining the premium rate for homeowners insurance within the specific PPC. The application of PPC's varies between insurance companies; however, this classification serves as a baseline. In essence, the lower the rating the lower the homeowner's insurance premium. Under the fire deployment aspect of this assessment process ISO uses four (4) basic sub- categories for determining the Department's deployment capability. These four criteria are the placement of existing fire stations and their ability to provide adequate coverage in their respective service area; the department's minimum staffing levels, which includes the consistent number of fire fighters assigned to each emergency response unit; the number of fire apparatus available for emergency response throughout the city at a given time; and the availability of reserve apparatus in the event a first-line unit is out of service for mechanical reasons. These four criteria are combined, in conjunction with the two additional primary criteria to determine the City's overall ISO rating. Current Situation Currently the City of Fayetteville's ISO PPC rating is set at Class 4, which is a mid-range rating for a city the size of Fayetteville. This rating was originally established in 1983 when the Fire Department aggressively undertook the initiative to improve the rating class. From 1983 through 1999 several discussions have been held regarding strategies which would allow the organization to improve this rating. During this time flame several attempts were also made to make this transition; however, due to factors such as the lack of reserve fire apparatus, minimal staffing levels and the placement of existing fire stations, the Department was unsuccessfiil in its undertakings. In 1999 ISO inspectors returned to Fayetteville to conduct an assessment. As a result of this process the City was able to maintain its Class 4 rating. During this assessment process, ISO representatives expressed concern over the limited number of reserve fire apparatus and necessary equipment to effectively meet the requirements of a Class 3 rating. According to 1 *Fire Apparatus Purchase Plan discussions held with ISO representatives the Fayetteville Fire Department had numerous specialized tools and pieces of equipment; however, the Department lacked a complete compliment of the basic tools and apparatus required to attain a Class 3 rating. Further ISO representatives recommended that the Department review, and update, its routine maintenance program and record keeping procedures for fire apparatus and equipment. At the time of inspection information on apparatus maintenance and repairs was unavailable. ISO representatives recommended the Department establish up to date maintenance file for the existing fleet, in conjunction with a routine preventative maintenance program, which at the time would have assisted in improving the Departments overall Class rating. Current Fleet Demographics The Fayetteville Fire Department's current apparatus fleet has an average age of seven (7) years. Over the past two years the Department has experienced numerous days in which at least one apparatus has been out of service for emergency repairs or service. When and apparatus is out of service for repairs the normal procedure is to place the reserve unit in service to replace the vehicle being repaired. This practice allows the Department to maintain a consistent number of apparatus on the street at a given time. Early in 2002 the Fire Department began assessing its current and future apparatus needs. As a result of this assessment process representatives from the Department determined that in order to maintain adequate coverage, keep an up to date fleet in service and utilize our current fiscal assets effectively we needed to establish an alternative method for developing specifications, purchasing and maintaining our apparatus fleet. When the process began we realized that our past practices for purchasing apparatus left us with a fleet which had lost over 75% of its initial purchase value. Further, we determined that past purchasing practices were vendor driven rather than need driven, and that, historically, the Department had made it a practice of accepting whatever product the vendor delivered regardless of the specifications. Often times this was due to the urgent need at the time of delivery, which was created by the absence of a regular replacement program. After identifying these deficiencies Department representative immediately set out to develop a system that would rectify these situation and prevent them from reoccurring. Over the past twelve (12) months four (4) committees, consisting of Fire Department employees, have worked diligently to determine the actual apparatus and equipment needs for the agency. These groups have committed numerous hours to this process in an effort to develop a comprehensive set of apparatus specifications and also to lay the ground work for an effective procurement and replacement strategy. This purchasing plan identifies the need for regular apparatus replacement on a five to seven year cycle by utilizing a "Life-Cycle Costing" strategy, which places all apparatus on a standard seven year depreciation cycle. The plan will also allow the Department to establish an ongoing replacement program for apparatus which will provide a comprehensive strategy for maintaining an up-to-date fleet of apparatus over the life of the program. 2 *Fire Apparatus Purchase At I have taken the liberty of listing five reasons why this purchase and replacement strategy is critical to the Fire Departments overall operations plan. 1 . This purchasing strategy will allow the Fire Department to replace its existing compliment of fire trucks with a more standardized apparatus fleet. At this time the Department owns several different brands and types of apparatus, each with a different pump operating system, braking system and hydraulic system along with different engines, transmissions and electrical systems. This mixing-and-matching of fire apparatus creates a vast degree of difficulty for fire fighters because they have to learn how to operate numerous types of equipment and apparatus operating systems, resulting in confusion for the Fire Fighter working in an emergency operations environment. By standardizing the Fire Department's apparatus fleet, fine fighters will only require training on a single piece of equipment and they will be able to proficiently operate each apparatus in the Fire Department's fleet. 2. Over the past two years the Fire Department has experienced over four-hundred and five (405) days in which at least one piece of fire apparatus was out of service for emergency repairs. Often times, these lost days of service have required the closing of Fire Companies due to the lack of adequate reserve apparatus available for use while these units were being repaired. By purchasing a new apparatus fleet the Fire Department, and the citizens of Fayetteville will be certain that a fire apparatus will be available at all times to provide emergency response service and that the Department will have enough reserve units to cover for front line apparatus during routine maintenance and repairs. 3. This type of purchasing strategy will provide for regular and routine preventative maintenance for each piece of fire apparatus with the guarantee that each apparatus will be serviced by a manufacturer's mechanic who is certified to work on the specific make and model of apparatus purchased. Over the years the Department has provided maintenance on an emergency basis. This service program will also help to ensure the trade-in value for the Department, at the end of the purchase plan. Currently the Fire Department's apparatus fleet has an overall value of $480,000 which is approximately 10% of the replacement cost for these pieces of equipment. By properly maintaining the apparatus fleet the Department will receive an increased return when trading these units in. This maintenance program, which is a critical part of this purchase plan will also provide for bumper to bumper coverage by including both parts and labor for everything from belts, hoses, tires and batteries to light bulbs and windshield wipers as well as any major apparatus components. 4. This purchase program also includes the cost of annual pump and ladder testing for each apparatus to ensure that all apparatus meet ISO and NFPA standards. Prior to 2003 the Fire Department had not been performing these tests due to budgetary constraints, so by including these requirements in the maintenance program the Fire Department will be able remain compliant with the testing standards while ensuring fire fighter and citizen safety. Further, these annual testing procedures are used as evaluation criteria during the Department's ISO PPC evaluations. When a Department maintains an effective preventative maintenance program ISO grants some additional credit to the agency. 3 *Fire Apparatus Purchase Plan Apparatus Bid Specifications In February 2003 the Fire Department, with assistance from the Purchasing Division, sent out bid specifications to various vendors in an attempt to collect information on the actual cost and feasibility of this type of purchasing program. These bids were posted for approximately twenty-one 21 days. During this process the Fire Department asked each vendor to provide a pricing strategy for this type of apparatus purchase. As part of this posting the Department also identified that it intended to commit to a fifteen (15) year purchasing agreement As a result of this process the Fire Department received only one response to our pricing request. This response came from Leeco Fire Equipment, Inc. who is the authorized Emergency One Fire Apparatus dealer for the States of Arkansas and Tennessee. If you have any questions regarding this program I will be happy to provide additional information, at your convenience. Keep in mind the pricing included in this packet is only valid for 30 days so any discussion regarding this process or the Department's findings should be expedited. Again, my staff and I will be happy to meet with you at your convenience to further explain this information and to provide any additional detail on the bid specifications and the benefits of alterative purchasing programs. City Council Equipment Committee On Tuesday, March 25, 2003 the Fire Department presented the results of this bidding process to the City Council Equipment Committee. During this presentation the Fire Department provided a power point presentation explaining the importance of this program and how it will benefit the citizens, business owners and visitors of our community. During this presentation many questions were voiced regarding the feasibility of this program, the deployment of current resources and the need for expansion of the Department's current service delivery system. This program will assist the Fire Department by allowing us to begin the process of rectifying numerous years of inefficient and ineffective specification development. This program will also help the Department in the planning process for future needs as well as the most effective method for deploying resources. Further it will provide the Department with the ability to establish a long-term relationship with a specific vendor who will be responsible for ensuring that all warranty work is performed efficiently and effectively. Recommendation Given the information listed in the preceding paragraphs Staff recommends that Council approve a resolution allowing the Fire Department to enter into a 15 year purchasing agreement with Emergency One Fire Apparatus, through their local vendor Leeco Fire Equipment, hie. 4