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File #: 25-261    Version: 1 Name:
Type: Consent Item Status: Agenda Ready
File created: 1/7/2025 In control: BOARD OF SUPERVISORS
On agenda: 1/21/2025 Final action:
Title: Acting as the governing board of the Contra Costa County Fire Protection District, APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a purchase contract with Golden State Fire Apparatus, Inc., in an amount not to exceed $6,581,000 for the manufacture and purchase of five Type 1 fire engines, to execute a new lease schedule under the Master Lease Agreement with PNC Bank, National Association for an amount not to exceed $7,771,000 for the lease-purchase of the Pierce fire engines; and to execute a four-party agreement among Golden State Fire Apparatus; PNC Bank, National Association; Pierce Manufacturing, Inc; and the Contra Costa County Fire Protection District. (100% CCCFPD General Operating Fund)
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To:                                          Board of Supervisors

From:                                          Lewis Broschard, Chief, Contra Costa County Fire Protection District

Report Title:                     Fire Apparatus (Type 1 Engines) Acquisition and Lease-Purchase Program

Recommendation of the County Administrator Recommendation of Board Committee

 

RECOMMENDATIONS:

 

Acting as the governing board of the Contra Costa County Fire Protection District:

 

1.                     APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a purchase contract with Golden State Fire Apparatus, Inc., for the manufacture and sale of five (5) Type 1 fire engines, in an amount not to exceed $6,581,000 including indemnity by the Contra Costa County Fire Protection District.

 

2.                     APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a new lease schedule under the Master Lease Agreement with PNC Bank, National Association for an amount not to exceed $7,771,000 including finance charges, with annual payments not to exceed $777,100 and a term not to exceed ten years for the lease-purchase of the Pierce fire engines.

 

3.                     APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a four-party agreement among Golden State Fire Apparatus; PNC Bank, National Association; Pierce Manufacturing, Inc.; and the Contra Costa County Fire Protection District regarding the manufacture, delivery of the fire engines and initiation of the lease.

 

FISCAL IMPACT:

 

The apparatus will be acquired using the Houston-Galveston Area Council (HGAC) cooperative purchasing program. The fire engines are priced at $1,196,097 each, for a total purchase price of $5,980,485, including sales tax. The purchasing authority includes an additional $600,000 to allow for contingencies.

 

The total cost of financing, at an annual interest rate of 5.52%, will not exceed $1,790,515. This rate is lower than the most recent lease-purchase schedule but higher than previous lease-purchases due to current market conditions and the federal elimination of tax-exempt municipal financing. PNC Bank, National Association under the MLA, will pay the purchase price for the apparatus. The annual payment amount will be approximately $777,100. The first payment in the ten-year lease schedule will be due in August 2025. All costs will be fully funded by the Contra Costa County Fire Protection District Operating Fund and included in the District’s FY 2025-26 budget.

 

The District recently made its final $1,000,000 annual payment on a previous 10-year lease purchase agreement executed in 2014.  The new debt service payment of $777,100 will be made using the same funds that were previously being expended for that prior lease purchase program. 

 

 

 

BACKGROUND:

 

On December 12, 2023, the Board approved and authorized the Fire Chief to enter into a Master Lease Agreement with PNC Equipment Finance, LLC ("PNC"). On December 15, 2023, the Contra Costa County Fire Protection District ("District") entered into the Master Lease Agreement (the "MLA") with PNC.

 

The District now desires to finance the purchase of additional apparatus from Pierce by executing a new lease schedule under the MLA. While the District has made significant capital purchases of fire apparatus in recent years, the need exists to continue replacing front-line engines and trucks. As the District has re-opened closed stations and projects to reopen additional stations, the demand for an expanded Type 1 engine fleet has increased.

 

The District has a fleet of 45 Type 1 engines. Those engines are distributed as 31 frontline engines for primary response, one cross-staffed engine at fire stations staffed with aerial apparatus, and reserve and training engines. The District spends a tremendous amount of time and dollars maintaining older, high mileage apparatus.

 

The National Fire Protection Association (NFPA) Standard 1901 (Standard for Automotive Fire Apparatus) and 1911 (Standard for the Inspection, Maintenance, Testing, and Retirement of In-Service Automotive Fire Apparatus) both recommend front-line apparatus be retired into a reserve status after 15 years of service. This is primarily for safety reasons. Older apparatus does not afford firefighters the same level of safety as modern apparatus due to cab designs and inherent safety features incorporated into modern fire apparatus designs, such as airbags, modern braking systems, and other considerations. The standards further recommend that all reserve apparatus be removed from service after no more than 25 years of total service. The standards comment on high use, mileage, and other factors as additional determinants to retiring front-line apparatus sooner than 15 years. In our District, our front-line apparatus's high use and mileage suggest retirement sooner than 15 years.

 

The acquisition of the apparatus in this order will accomplish several objectives. The new apparatus will directly and immediately impact the District's ability to provide increased reliability for emergency response, compared to the existing fleet, with reduced out-of-service time for maintenance and repairs. The new apparatus will also have a direct and immediate impact on reducing maintenance costs now and into the future as a result of not only the age of the apparatus but also the quality of the apparatus being acquired. The new apparatus will enable the District to comply with NFPA 1901 and 1911 recommendations, increasing firefighter safety and fleet reliability.

 

This additional capital investment, on an annual basis, over the next ten years will enable the District to take another significant step forward in meeting one of the recommendations of the Fitch study, which identified the need to invest at least 4% of our budget into facilities and equipment each year. The need for safe, reliable, and modern fire apparatus is paramount to fulfilling the district's mission.

 

If approved, the new fire apparatus will arrive in 55 months and be in service shortly after delivery. Older apparatus will rotate to reserve status, and the oldest apparatus in the fleet will be removed from service and declared surplus.

 

Under the four-party agreement, if Pierce does not deliver an engine to Golden State Fire Apparatus (GSFA) within the time outlined in the purchase contract between GSFA and the Fire District, Pierce will make certain payments under the lease.

 

The purchase contract contains an indemnification provision from the District to Golden State Fire Apparatus.

 

 

CONSEQUENCE OF NEGATIVE ACTION:

 

Without approval, the District will not be able to acquire the new apparatus. The current age and condition of the fleet will continue to deteriorate and negatively impact the District’s ability to provide safe, reliable, and effective emergency response. Additionally, increased maintenance costs would adversely impact the operational budget, and mechanical breakdowns would increase out-of-service time for fire crews.