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R-1668 - 10/10/2017 - FIRE DEPARTMENT - Resolutions Supporting Documents ITEM 10.13.2) BOARD OF TRUSTEES MEETING VILLAGE OF SAMUEL E. DEAN BOARD ROOM OAK BR , K BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of October 10, 2017 SUBJECT: Authorization to purchase an extended warranty for new Fire Unit Squad 93, 2018 Pierce Enforcer Rescue Engine FROM: Doug Patchin, Public Works Director A BUDGET SOURCE/BUDGET IMPACT: $54,606 from#342-90200 Equipment Replacement Fund RECOMMENDED MOTION: I move the Village Board approve Resolution R-1668 and purchase an extended warranty, a seven (7) year bumper-to-bumper warranty from Pierce Manufacturing for new Fire Unit Squad 93, a 2018 Pierce Enforcer Rescue Engine. Backmund/History: As part of the Mercury Fleet Management Review completed earlier this year, Mercury looked at how the village purchases vehicles and equipment. Part of their recommendation was that the village should look at leasing options for equipment and purchasing extended warranties for more expensive equipment, examples being, Fire Department trucks and Public Works construction equipment. Before the Mercury study, staff was monitoring the maintenance expenses of Unit L94, the Fire Department ladder truck. Unit L94 is a 2014 Pierce Ladder/Pumper truck with 23,270 miles, and was put in service July 2014. The life-to-date maintenance expense on this unit is approaching $50,000 which includes $10,000 for tires, and $9,700 for preventive maintenance. Additional repairs have included cab and instruments, engine/motor, accessories, and other miscellaneous repairs. Fire Chief Liss and staff reached out to Pierce Manufacturing and Global Emergency Products, the Pierce Factory authorized dealer, to discuss problems we've experienced with the ladder truck. We discussed options for an extended warranty on new Fire Unit Squad 93, the Fire Department rescue engine, which was ordered in December 2016. BOT AGENDA Page 1 `(�� After our meeting, Pierce Manufacturing offered an extended warranty, above their standard warranty, which addresses most of the village's concerns. Other recommendations and options from the Mercury Report are being reviewed and proposed as part of the 2018 budget. Recommendation: I recommend the Village Board approve Resolution R-1668 and authorize the purchase of an extended warranty, for Fire Unit Squad 93, a 2018 Pierce Enforcer Rescue Engine. BOT AGENDA Page 2 RESOLUTION 2017-FD-WRNTY-AG-R-1668 A RESOLUTION APPROVING AND AUTHORIZING A WARRANTY AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND PIERCE MANUFACTURING, INC. FOR FIRE RESCUE ENGINE WHEREAS, the President and Board of Trustees of the Village of Oak Brook ("Village") approved the purchase of a new Fire Rescue Engine on December 13, 2016; and WHEREAS, earlier in 2017 Mercury Associates, Inc. ("Mercury") performed a fleet management review which examined how the Village purchases its vehicles and equipment; and WHEREAS, one of the recommendations Mercury made was for the Village to purchase extended warranties for the more expensive equipment such as, Fire Department trucks and Public Works construction equipment; and WHEREAS, staff contacted Pierce Manufacturing, Inc. ("Pierce") and Global Emergency Products, Pierce's authorized dealer, regarding extended warranty options, and it was determined that Pierce offered an extended warranty which addresses most of the Village's concerns; and WHEREAS, staff recommends purchasing a seven-year extended warranty from Pierce for the above-mentioned new Fire Rescue Engine("Engine's; and WHEREAS, the Village 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 authorize a seven-year warranty agreement with Pierce for the Engine in the amount of$54,606.00; and 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: Authorization of Warranty Agreement for the Engine. The President and Board of Trustees hereby approve the Warranty Agreement with Pierce for the Engine for a term of seven years in the amount of$54,606.00. Section 3: Approval of Warranty Agreement. The President and Board of Trustees hereby approve the Warranty Agreement with Pierce in substantially the same form, as attached hereto as Exhibit A("Warranty")and in final form approved by the Village Attorney. Section 4: Execution of the Documents. The Village Manager and Village Clerk shall be, and hereby are, authorized to execute the documents between the Village and Pierce in the final form approved by the Village Attorney. [SIGNATURE PAGE FOLLOWS] Resolution 2017-FD-WRNTY-AG-R-1668 Approving the Purchase of Warranty Agmt. For Fire Rescue Engine Page 2 of 3 APPROVED THIS 10th day of October, 2017 Gopal G. Lalmalani Village President PASSED THIS 10th day of October, 2017 Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk Resolution 2017-FD-WRNTY-AG-R-1668 Approving the Purchase of Warranty Agmt. For Fire Rescue Engine Page 3 of 3 EXHIBIT A WARRANTY AGREEMENT it W PERFORM LIKE NO OTHER September 28, 2017 Chief Barry Liss Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Subject: Extended Warranty—7 Year Bumper to Bumper Job#31011 Dear Chief Liss, Pursuant to your request, we are pleased to offer an explanation as to the extended warranty program on a Pierce Enforcer PUC, Job#31011. The Seven (7) Year"Bumper to Bumper" extended warranty is as follows: BUMPER TO BUMPER WARRANTIES Pierce offers extended term bumper-to-bumper warranties as an option. As the name implies, bumper-to-bumper warranties cover all components of the apparatus, except consumable components, for the period of time listed. Pierce covers second party components after their normal warranty coverage has expired. For example, the Dana axle manufacturer provides a standard 5-year warranty in conjunction with a Pierce 7- year bumper-to-bumper warranty. Pierce covers the axle in years 6 and 7. The Detroit Diesel Engine and the Allison Transmission are exempt from the Pierce Extended Warranty and they remain at five (5) years. WARRANTY POLICY Pierce Manufacturing, Inc, warranties each piece of new fire or rescue apparatus to be free from defects in materials or workmanship under normal use and service. Our obligation under this warranty is limited to repairing or replacing, as the company may elect, any parts thereof which are returned to us, with transportation costs prepaid and as to which examination is disclosed to the company's satisfaction to have been defective. Such defective part, or parts, will be repaired or replaced free of charge and without charge for installation to the original purchaser. Page 1 PEwrORM LIKE NO OTHER This warranty does not apply: 1) To normal maintenance and adjustments. 2) To any vehicle which has been repaired or altered outside of the factory in any way so that, in the manufacturer's judgment, it would affect the stability. In addition, it will not apply to any vehicle which has been subject to misuse, neglect, or accident, or to any vehicle which will operate at any speed exceeding the factory rated speed, or loaded beyond the factory rated load capacity. This warranty is in lieu of all other warranties, expressed or implied, all other representations to the original purchaser and all other obligations or liabilities, including liability for incidental or consequential damages on the part of the company. We neither assume nor authorize any other person to give or assume any other warranty or liability on the company's behalf, unless made or assumed in writing by the company. CONSUMABLES Products or parts which are not defective but which may wear out (consumables) and have to be replaced during the warranty period, including parts that are scheduled to be replaced during routine maintenance, are not covered under warranty. The following is a partial list of items considered consumable: • Belts and hoses • Drain valves • Fluids • Ball valves • Filters • Tires • Wiper blades . Disc and/or drum brakes and • Light bulbs their components • Fuses • Shocks • Batteries • Oil changes and lubricants • Gaskets • Glass damaged EXCEPTIONS TO WARRANTY • Failure of parts or components due to improper maintenance • Accident damage • Misuse of apparatus or vehicle • Modification or alteration to vehicle • Contingent liability — (loss of use or time due to failure, inconvenience, or incurred expenses due to product failure) • Paint and Corrosion, due to improper vehicle washing and maintenance Page 2 • PERFORM LIKE NO OTHER CONDITIONS OF WARRANTY During the term of the warranty, all warranty repairs must be performed by the selling dealer, Global Emergency Products, Inc. Depending on the nature of the warranty issue, Global Emergency Products, Inc, will determine whether vehicle is to be transported to its facility or arrange for field repairs. We believe the above to be full and complete at this time. Please do not hesitate to contact me with any questions. Respectfully, Mike Dufrane Pierce Manufacturing, Inc. Page 3