R-1596 - 10/11/2016 - FIRE DEPARTMENT - Resolutions Supporting Documents ITEM 9.A.4)
OF 0446,9
4 0
0
e e
coUNVI
AGENDA ITEM
Regular Board of Trustees Meeting
October 11, 2016
SUBJECT: Fire Department Vehicle Re 1 cement
FROM: Barry Liss,Fire Chief
BUDGET SOURCE/BUDGET IMPACT: 2016 Equipment Replacement Fund - $100,000
from Program 342, Equipment Replacement for a Rescue Engine.
RECOMMENDED MOTION: I move that the Village Board waive further bidding since
the Houston-Galveston Area Council (HGAC) has already conducted the bid process and
lease to own one 2016 Pierce Enforcer Rescue Engine through Pierce Manufacturing in the
amount of $744,579 and authorize to seek a 10 year vehicle lease agreement through JP
Morgan Chase.
Background/History:
Fire Station 93 operates a 2008 front-line engine and a 1999 heavy rescue squad staffed by a
minimum of two firefighter/paramedics. Depending on the circumstances related to the type of
incident they are called upon to respond to,personnel must choose and navigate between the
engine and the heavy rescue squad(jump company). This presents several unique operational
challenges. The engine possesses no rescue or extrication capabilities (Jaws of Life),hindering
an ability to quickly rescue entrapped occupants involved in a vehicle accident, or is incapable of
the initial mitigation of high angle above grade rescues,below grade trench rescues or lifting
heavy objects that have trapped someone underneath. The heavy rescue squad has its own
unique set of limitations as it carries no ladders of any kind,has no portable water supply,no fire
hose and has no pumping capabilities to effectively perform any type of above ground level
window rescue or fire extinguishment.
Operationally,response times are continually compromised as a result of the inherent delays in
response personnel having to switch from one vehicle to another. This can account for delays in
excess of 45 seconds according to our 2015 statistical analysis. Additional concerns arise when
simultaneous calls for service occur while either the engine or heavy rescue squad remains out of
&VG
c
service and unstaffed. Case in point,the heavy rescue squad is staffed and on the street when a
report of a car fire comes in. The heavy rescue squad is incapable of any form of extinguishment
and therefore requires additional resources to respond, impacting response coverage elsewhere in
town.
Despite being deferred in 2014 and 2015, strategically the need remains a high priority as the
purchase of a rescue engine has significant impact in a number of quantifiable ways. The vehicle
will lend to a more manageable and efficient operation than previously experienced,more
effective use of current staffing levels, improved turnout and response times, improved safety
and will assist in reducing the size of the current fleet thereby reducing continued maintenance
costs and subsequently allow us to operate in a more fiscally responsible manner. Additional
advantages include allowing personnel to have at the ready, all the necessary tools and
equipment needed for any routine incident encountered. This automatically translates to a more
efficient and safe use of our existing personnel, improved operational functionality and once
again, decrease turnout and response times.
The current fleet is aging as two of our oldest vehicles have exceeded their useful life and are
difficult to maintain. According to our fleet maintenance personnel,parts for the 1999 heavy
rescue squad (Squad 93) are no longer available and have continually hampered our ability to
keep the vehicle operational. It is undependable and unreliable.
Computerized maintenance records are now kept for the operational fleet of fire apparatus, and
indicate the following year to date and lifetime costs of repairs and ongoing maintenance of
Squad 93 and Engine 95:
Vehicle Year to Date Lifetime
Squad 93 $20,430 $167,725
Engine 95 $6,024 $59,010
Total $26,454 $226,735
Unfortunately,repair and maintenance costs of these two oldest vehicles continue to occur at an
alarming rate. At the time of this written report, Squad 93's transmission and transmission
cooler had unpredictably failed, was towed to a repair facility and repaired at a cost of nearly
$19,000. The age of the vehicle and lack of support from the original manufacturer has
hampered the ability to quickly repair the vehicle and has driven repair costs up. Currently,the
vehicle continues to remain out of service as it is now experiencing generator issues. The
vehicle's engine and electrical system is in need of significant repairs that will also require
substantial dollars to complete. These and other repairs continuously plague the vehicle, causing
extended periods of down time and an inability to effectively provide service.
The operational need for a rescue engine was recommended as part of the Staffing and Resource
Deployment Study conducted for the Village by the McGrath consulting group in December of
2009. They noted that replacement of fire apparatus should occur before the vehicle reaches 20
years of service.
This single new rescue engine will replace two vehicles that were both manufactured in the 90's.
Since 1990,NFPA 1901, the standard that governs how fire apparatus are built, has seen five
revisions.Each time a standard is revised, enhancements are made to safety and operating
features that include requirements such as; air bags,rollover protection,crash tests, hearing
protection, emergency lighting, seatbelt detection devices, fuel efficiency and diesel emissions.
The subsequent sale of the 1990 engine and 1999 heavy rescue squad will reduce the current
fleet by one and decrease continued expenditures. Additionally, those village assets would be
declared surplus and be disposed of through electronic auction. We estimate their combined
value to be in the neighborhood of$60,000.
Strategically,the department continues to work closely with our neighbors of York Center and
Oakbrook Terrace as we move toward consolidating our services in which to better serve the
three communities, improving safety, response times and service in a fiscally responsible manner
that benefits everyone. Purchase of the new rescue engine and the elimination of"Jump
Company" operations is a key component of this consolidated effort, is fiscally sound and a
prudent plan that will greatly benefit the department,the community and those we are sworn to
protect.
This concept is supported by the Village Manager and the Public Works Director. Deferring this
purchase affects ongoing maintenance costs and the effective lifespan and serviceability of the
existing older fleet,potentially compromising our ability to provide essential and needed services
to the community.
Cooperative Purchasing Background:
In our ability to maintain fiscal responsibility, we have routinely taken advantage of cooperative
purchasing practices through the State of Illinois and other governmental entities. Often used
among tax supported government entities, cooperative purchasing provides an opportunity to
obtain lower group pricing from approved and selected vendors. It is often used to reduce costs
of procurement. Purchasing cooperatives are used most frequently by governmental entities,
since they are required to follow laws requiring competitive bidding above certain thresholds.
Counties, municipalities, schools, colleges and universities in the majority of states can sign an
inter-local agreement or contract that allows them to legally use a contract that was procured by
another governmental entity.
Two such examples are the Suburban Purchasing Cooperative (SPC) and the Houston-Galveston
Area Counsel (HGAC), both governmental organizations with procurement cooperatives. The
Village of Oak Brook maintains an inter-local agreement with the SPC and the HGAC, thus
becoming members that can access a wide variety of competitively bid and legally awarded
contracts available through their cooperatives.
HGAC serves as a cooperative purchasing procurement agency for more than 5,000 local taxing
bodies in 48 states. In addition to Oak Brook, many of our surrounding communities are active
members including, but not limited to the County of DuPage, Westmont, Brookfield, Clarendon
Hills, Westchester, Downers Grove, Lombard, Addison, Villa Park, Glendale Heights, Wheaton,
Naperville, Wood Dale, Tri-State and Darien Woodridge.
The cooperative takes care of the bidding process requiring manufacturers to submit stock
vehicles that can be customized to fit the needs of the agency while providing national pricing
discounts and improved purchasing power. Over the many years, Oak Brook has taken
advantage of the HGAC process having purchased our newest ladder truck and several of our
ambulances.
Similar to the HGAC,the SPC is a joint purchasing program sponsored by the Northwest
Municipal Conference (NWMC),DuPage Mayors &Managers Conference (DMMC) South
Suburban Mayors and Managers Association(SSMMA), and Will County Governmental League
(WCGL). Together the SPC represents 142 municipalities and townships in northeastern Illinois.
The following entities are eligible to participate in the SPC joint purchasing programs:
Municipalities, Townships, Counties,Fire Protection Districts, Park Districts, Libraries, School
Districts and Non-Profit Organizations.
The SPC exemplifies the benefits of intergovernmental cooperation on a regional basis. The
goal of the SPC is to combine the resources and purchasing power of governments and not-for-
profit entities to jointly negotiate advantageous contract terms on a line of high quality products
at the lowest possible price.
Economies of scale in terms of pricing and staff resources are the prime objectives of the SPC
Joint Purchasing Program. By purchasing through the SPC,participants not only save money but
time as well. Acting as an extension of the purchaser's staff, SPC staff works diligently in order
to avoid the needless duplication of effort through in-house coordination of several functions
involved in the procurement process.
According to 30ILCS 525/2 from CH. 85,pr. 1602 Sec. 2 (a)Any governmental unit may
purchase personal property, supplies and services jointly with one or more other governmental
units. All such joint purchases shall be by competitive bids as provided in Section 4 of the Act.
Since 2007,the SPC Program is centrally operated by the Northwest Municipal Conference with
shared program oversight by the SPC Governing Board and SPC Technical Review Committee.
HGAC Bidding:
On July 9, 2015,the Cooperative Purchasing Program of the Houston-Galveston Area Council
(HGAC) of Governments solicited sealed bids from a large group of qualified manufacturers for
the furnishing of a rescue engine based on standard features, specifications and requirements.
Responses to the bids were submitted by August 13, 2015. All bids were sealed and subject to
the terms, conditions, requirements and specifications detailed in the documents comprising the
bid specifications. Responses were opened publicly at the offices of the HGAC and were made
available for public review.
On October 20, 2015,the Executive Board of the HGAC approved and awarded the bid on
October 28, 2015 to Pierce Manufacturing, Inc. to provide a rescue engine based on standard
features, specifications and requirements,to be available to more than 7,000 members of local
governments, districts and agencies in 49 states across the nation. Understanding that these are
base units, government entities then build upon the base unit making it specific to their
individualized needs.
The contract was executed for the term beginning December 1, 2015 and expiring on November
30, 2017.
Members exercising their ability to purchase the fire apparatus through the cooperative
realized savings in excess of$40,000 over conducting their own independent bidding process.
As a result, following approval of the 2016 budget, the department's fire apparatus specification
work group worked closely with representatives of Pierce Manufacturing, to design and approve
a rescue engine that would provide all the necessary functionality for our unique purposes. An
internal committee has worked closely with the manufacturer in preparing and approving the
specifications of this vehicle. These specifications incorporate all of the latest available safety
features and ergonomics in a customized configuration designed to minimize personal injury
while providing a safer ride. The new design includes, but is not limited to an air bag restraint
system, improved visibility, efficient LED lighting, back up camera and improved
compartmentalizing.
Lease Options:
There are a number of options for financing the vehicle which has been priced at$744,579.
Pricing includes a pre-payment discount of$27,531.
The following is a description of each.
JP Morgan Chase:
Term 7 Years 10 Years
Number Annual of 7 10
Payments
Annual Payment Amount 41,198.79 82,761.34
Interest Percentage Rate 1.97% 1.97%
Total Payments $823,975.80 $827,613.40
Cost of Leasing over the $79,398.80 $83,034.40
Term
Cost of Leasing Annually $11,342.69 $8,303.44
The 7-year lease requires 20 consecutive semi-annual payments of principal and interest
beginning six months after commencement.
The 10-year lease requires 10 consecutive annual payments of principal and interest beginning
twelve months after commencement.
r
MB Financial:
Term 7 Years
Number of Payments 84
Annual Payment Amount $125,206.56*
Interest Percentage Rate 3.75%
Total Payments $876,447.00
Cost of Leasing over the Term $131,868
Cost of Leasing Annu all $18,838.29
PNC Financial:
Term 7 Years 8 Years 9 Years 10 Years
Number of Annual 7 8 9 10
Payments
Annual Payment Amount $116,599.21 $103,521.48 $93,439.01 $85,669.22
Interest Percentage Rate 2.35% 2.427% 2.506% 2.635%
Total Payments $816,194.48 $828,171.84 $840,951.09 $856,692.20
Cost of Leasing over the $71,615.48 $83,592.84 $96,372.09 $112,113.20
Term
Cost of Leasing Annually $10,230.78 1 $10,449.11 $10,708.01 $11,211.32
All lease options require consecutive annual payments (7,8,9 & 10 years) of principal and
interest beginning twelve months after commencement.
*ALL RATES ARE SUBJECT TO CHANGE AND IS SUBJECT TO FINAL CREDIT
APPROVAL AT TIME OF SIGNING*
The following are just some highlights of general lease agreements:
Type of Transaction: Fixed-rate, fully amortizing, tax-exempt lease-purchase agreement
Down Payment Required: $0.00
First Payment Due Date: 1 year after lease commencement
Lease Commencement Date: Upon contract signing with the manufacturer
Performance Bond: Leasee will be required to provide a vendor Performance Bond in
accordance with the terms of the contract.
Vehicle Title: The legal title to the vehicle shall vest in the lessee during the term of the
agreement.
Recommendation:
That the above motion be presented to the board for approval.
RESOLUTION 2016-FD-V-LS-R-1596
A RESOLUTION APPROVING THE WAIVER OF COMPETITIVE BIDDING
AND AUTHORIZING A LEASE TO OWN AGREEMENT
RELATIVE TO A FIRE RESCUE ENGINE
WHEREAS, the Village owns two heavy equipment vehicles utilized in the Fire Department, a
1990 Reserve Engine and a 1999 Front-Line Heavy Rescue Squad, which have exceeded their useful life
and are difficult to maintain; and
WHEREAS, the 2016 budget includes $100,000 in the Vehicle Replacement Fund for a lease to
own of a Rescue Engine to replace both of the above-mentioned vehicles("Rescue Engine"); and
WHEREAS, Section 1-7-10 of the Village Code authorizes the Village to join with other units of
government in cooperative purchasing plans when it is in the best interests of the Village; and
WHEREAS, because the Houston-Galveston Area Council ("HGAC") has already conducted
competitive bidding processes for the Rescue Engine, the Village staff has recommended that the Village
waive competitive bidding and authorize a 10-year vehicle lease to own agreement ("Agreement") with
JP Morgan Chase ("Chase") for one 2016 Pierce Enforcer Rescue Engine in the purchase amount of
$744,579.00; and
WHEREAS, the President and Board of Trustees, being fully advised in the premises, have
determined that it is in the best interests of the Village and its residents to: (i) so waive competitive
bidding for the Rescue Engine; (ii) approve the Agreement with Chase for the Rescue Engine from
Pierce.
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Waiver of Competitive Bidding Requirements. The advertising and bidding
requirements for the Agreement with Chase of the Rescue Engine is hereby waived in accordance with
Section 1-7-4 of the Village Code.
Section 3: Authorization of Lease to Own Agreement of the Rescue Engine. The President
and Board of Trustees hereby approve the Agreement with Chase of the Rescue Engine from Pierce for a
10-year vehicle lease at the current interest rate of 1.97%, in the total amount of $827,613.40, which is
subject to change and to final credit approval at time of signing.
Section 4: Execution of Required Documentation. The Village Manager and the Village
Clerk shall be, and are hereby, authorized to execute and attest, on behalf of the Village the Agreement
with Chase, in a final form approved by the Village Manager and Village Attorney.
Section 5: Effective Date. This Resolution shall be in full force and effect from and after its
passage by two-thirds of the Trustees and its approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
Resolution 2016-FD-V-LS-R-1591
Approving a Lease Agreement relative to
Rescue Engine
Page 2 of 2
APPROVED THIS 11`h day of October, 2016
Gopal G. Lalmalani
Village President
PASSED THIS 11th day of October, 2016
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
REVIEW OF CONTRACTS
Awarding ncY
of
Reps nt
Im/Account Number:
Proar
Awa C a Price: d Auto '
Q Under$20,000 $500,001 -#1,000,000
Q $20,000-*500,000 ( aver 1,000, .
. i
1 '
I 3
i
1 I
1
Doke:
Dab' s 6
Nsrne: '
E
Name+ i
Name:
Dee:
0 Three(3)Originals signed by other party Date/initials
Q Original provided to staff member for other party Datelfris 1
ti
[ Original provided to Official files Date/t�tlais
vMqe of Oak Brook(/tared kY Bwrd of TmMs D&We8bb