To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Purchase Order for HME, Incorporated
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute, on behalf of the Crockett-Carquinez Fire District Fire Chief, a purchase order and agreement with HME, Incorporated, in an amount not to exceed $1,400,000, for two (2) HME Type 4x2 (OES Model) Type 1 Fire Apparatus, subject to approval by the County Administrator and approval as to form by County Counsel’s Office.
FISCAL IMPACT:
The proposed order of two (2) HME Type 4x2 (OES Model) Type 1 Fire Apparatus is valued at approximately $1,400,000, including sales tax and associated charges. The purchase price for the fire apparatus will be financed under a municipal lease purchase program for ten years. Delivery of the vehicles will be approximately 365 days after receipt of order. Although financing arrangements are still underway at the time of this report preparation, they are expected to be known close enough to the timing of Board consideration and are not expected to change significantly between now and the actual financing date. If the interest rate at the time of financing is the anticipated 4.83%, annual payments on $1,400,000 will be $175,988.98 per year, for a total cost of $1,759,889.80. The Public Works Purchasing Division will arrange financing prior to completion date. The annual payments are budgeted in the Fire District budget.
BACKGROUND:
The HME Type 4x2 (OES Model) Type 1 Fire Apparatus will be replacing unreliable trucks that have experienced significant mechanical problems, including recent repairs that took them out of service for months. The National Fire Protection Association (NFPA) Standard 1902 (Standard for Automotive Fire Apparatus) and 1911 (Standard for 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, inherent safety features incorporated into modern apparatus design, modern braking systems, and other considerations. The standard further recommends that all reserve apparatus be removed from service after no more than 25 years of total service.
The new apparatus will have direct and immediate impact on reducing maintenance costs and improving firefighter safety. The new HME Fire Apparatus meets current safety standards, including low diesel emission requirements, and a green option to allow the truck to function using a generator instead of idling the diesel motor. In 2020, HME, Incorporated was awarded the State of California, Department of General Services Contract #1-20-23-21A, through competitive solicitation. The contract awarded by the State of California is in effect until July 23, 2025. The purchase price is based on the State of California contract and meets all competitive bid requirements.
A future staff report with financing recommendations will be forwarded to the Board for consideration once they have been agreed upon.
CONSEQUENCE OF NEGATIVE ACTION:
The Fire District will not be able to cost effectively acquire the new apparatus under the state’s general services contract. Reliability of the equipment and safety of fire-fighting personnel may be compromised, and maintenance costs on existing apparatus will continue to increase.