FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
title
MOTION to authorize purchase of fire apparatus (3,000 gallon tanker) from New England Fire Equipment and Apparatus Corporation in an amount not to exceed $640,412.00 for the Ledyard Fire Company from Account #0210-21020401-54325
end
Background:
The Ledyard Fire Company developed an RFP for a new fire engine, a 3000 gallon tanker, and reviewed the three (3) bids that were received. The apparatus committee and the AES met and agree that the bid received from New England Fire Equipment is the lowest bid that meets all the bid specification requirements.
Department Comment/Recommendation:
As AES, I requested the apparatus committee review the bid and the specification to find cost control measures. A letter from New England Fire Equipment details a savings of approximately $19,000 off the original bid by simplifying some of the equipment and compartmentation on the apparatus. Additionally, the vendor offers a 2% discount on the purchase price if the order is paid in full upon signing of the contract. I foresee the total project cost decreasing from the bid pricing $640,412 to appx $608,577 based upon these savings.
Finance Director Comment/Recommendation:
Account 21020401-54325 Fire Apparatus has a current, unencumbered balance of $1,371,959.
Mayor Comment/Recommendation:
I support this purchase authorization based on the RFP and the downward price adjustment in the simplification of some al a carte options.
Meeting Action Detail:
Town Council Meeting 10/12/2022:
File #: 22464 Version: 1
Type: Financial Business Request (FBR)
Title: MOTION to authorize purchase of fire apparatus (3,000 gallon tanker) from New England Fire Equipment and Apparatus Corporation in an amount not to exceed $640,412.00 for the Ledyard Fire Company from Account #0210-21020401-54325
Mover: Saums Seconder Ingalls
Action: Approved
Minute Note:
Moved by Councilor Saums, seconded by Councilor Ingalls
Discussion: Councilor Saums noted as Gales Ferry Fire Chief Tony Saccone stated earlier this evening (V. Residents and Property Owners) a lot of thought has gone into the purchase of this 3,000-gallon Tanker-Pumper Fire Truck. He stated the Administrator of Emergency Services works together with both of the town’s Fire Companies (Ledyard Center and Gales Ferry) to continuously assess their apparatus/fleet to best meet the needs of the town. He stated this work included maintaining an Apparatus Replacement Schedule. He went on to explain as part of the annual budget process funding was allocated to the Capital Reserve Fund so that funding was in-place when a piece of apparatus has reached the end of its planned lifecycle and needed to be replaced.
Councilor Saums provided some background explaining that the town’s fire services have discussed and researched Tankers for a number of years. He noted the Ledyard Center Fire Company has not had a Tanker for about seven years noting that the Tanker (R-14) was taken out of service because it was unserviceable and not safe for the road. He stated the reason there has been a gap in the replacement of the Tanker was because there were some challenges within the Leadership in deciding on the best direction for the town. He stated the town has used various fire suppression strategies in the past such as the Compressed Air Foam System (CAFS) and the Drop Tank Systems and determined for a town where only about 50% of the structures had access to fire hydrants that a Tanker that could bring water to the scene was the best solution. He stated in managing the fire apparatus fleet that the two fire companies work together and try supplement the equipment that each had. He went on to note that that the Ledyard Center Fire Company and Gales Ferry Company support each other in responding to large structure fires and when there was a fire where no fire hydrants were available. He also stated that if they had a large fire that other Fire Companies Tankers would also respond to the scene providing Mutual Aid, and that Ledyard’s Tankers would also go out of town for Mutual Aid support as well. However, he stated they have agreed that one Tanker would stay in Ledyard at all times.
Councilor Saums went on to state in soliciting Request for Proposal #22-25 ( Fire Apparatus 3,000-gallon Tanker) to replace R-14 the town received three bids from the following three companies: (1) Greenwood Emergency Vehicles $680,000; (2) New England Fire Equipment and Apparatus Corp. $640,412; and (3) Shipman’s Fire Equipment $628,972. He stated the Apparatus Committee reviewed the bids and agreed that the bid received from New England Fire Equipment was the lowest bid that met all the bid specification requirements. He stated although Shipman’s Fire Equipment came in with the lowest bid in the amount of $628,972 that they did not meet the specifications because their proposal was for a stainless-steel body, noting that the specifications in Bid #22-15 called for an aluminum body. He explained in accordance with Ordinance #200-002 (rev 1) Section 2: “Bid awards shall be determined by assessing the best interest of the Town in terms of the scope of work, qualified bidders’ overall approach to the project or service, past performance, and cost. The bid shall be awarded to the lowest qualified bidder if it is in the best interest of the Town.” He stated because the lowest bid did not meet the specifications, and because the assessment of the bids found that with some negotiations to remove some features from the apparatus that New England Fire Equipment and Apparatus Corp. proposal was the best value for the town.
Councilor Saums concluded by noting the lead time for the construction and delivery of the Tanker was 20-24 months.
VOTE: 7 - 0 Approved and so declared
Action: Approved
_________________________________________________________________________
Finance Committee Meeting 10/5/2022
File #: 22464 Version: 1
Type: Financial Business Request (FBR)
Title: MOTION to authorize purchase of fire apparatus (3,000 gallon tanker) from New England Fire Equipment and Apparatus Corporation in an amount not to exceed $640,412.00 for the Ledyard Fire Company from Account #0210-21020401-54325
Mover: Saums Seconder Ingalls
Action: Recommend to Approve
Minute Note:
Moved by Councilor Saums, seconded by Councilor Ingalls
Discussion: Administrator of Emergency Services Steve Holyfield provided some background stating in working to update the Fire Apparatus Plan the town’s fire services conducted a Fire Hydrant Study about eighteen months ago. The results of Study showed that nearly 50% of the structures on the Ledyard side of town did not have access to fire hydrants, and therefore, there was a need to have a Tanker on the Ledyard side of town, noting that Gales Ferry had a Tanker.
Mr. Holyfield went on to state that the Leadership and the Ledyard Fire Company Apparatus Committee developed bid specifications for the fire truck and solicited and Request for Proposal #22-25 ( Fire Apparatus 3,000-gallon Tanker) to replace R-14. He stated the town received three bids from the following three companies: (1) Greenwood Emergency Vehicles $680,000; (2) New England Fire Equipment and Apparatus Corp. $640,412; and (3) Shipman’s Fire Equipment $628,972. He stated he and the Apparatus Committee reviewed the bids and agreed that the bid received from New England Fire Equipment was the lowest bid that met all the bid specification requirements. He stated although Shipman’s Fire Equipment came in with the lowest bid in the amount of $628,972 that they did not meet the specifications because their proposal was for a stainless-steel body, noting that the specifications in Bid #22-15 called for an aluminum body.
Mr. Holyfield addressed the Fire Apparatus Replacement Schedule and the Apparatus Reserve Fund-Capital Account noting that the level of funding in this Account was the most they have ever had. He stated in trying to reduce the cost of the 3,000-gallon Tanker the Ledyard Fire Company Apparatus Committee was asked to take an a la carte approach and consider cutting out some of the niceties, which brought the cost to $608,000. He stated the lead time for the construction and delivery of the Tanker was 20-24 months.
Mr. Holyfield stated although they were expecting to spend about $608,000 to purchase the 3,000-gallon tanker to replace R-14 that for transparency they were requesting the full amount of the Bid Proposal in the amount of $640,412.00.
Councilor Saums noted Ordinance #200-002 (rev 1) Section 2 stated: “Bid awards shall be determined by assessing the best interest of the Town in terms of the scope of work, qualified bidders’ overall approach to the project or service, past performance, and cost. The bid shall be awarded to the lowest qualified bidder if it is in the best interest of the Town.” He stated because the lowest bid did not meet the specifications, and because the assessment of the bids found that with some negotiations to remove some features from the apparatus that New England Fire Equipment and Apparatus Corp. proposal was the best value for the town.
Mr. Holyfield stated the Ledyard Center Fire Company has not had a Tanker for about seven years explaining that the Tanker was taken out of service because it was unserviceable and not safe for the road. He stated the reason there has been a gap in the replacement of the Tanker was because there were some challenges within the Leadership in deciding on the best direction for the town. He stated the town’s fire services have continued to work to have both the Ledyard Center Fire Company and the Gales Ferry Fire Company and the Town’s Leadership in agreement on the apparatus fleet that would best serve the residents. He stated the purchase of this 3,000-gallon Tanker for the Ledyard Center Fire Company would serve the town for about 20-25 years.
Councilor Ingalls questioned what prompted the fire services to conduct the Fire Hydrant Study. Mr. Holyfield stated in their on-going discussions regarding the Fire Apparatus Replacement Schedule and the types of apparatus that was needed on both sides of town and what pieces of apparatus could be shared that they conducted the Fire Hydrant Study about eighteen months ago to provide data to support their needs.
Councilor Saums questioned the amount of research that went into developing the specifications to replace R-14 with a 3,000-gallon Tanker. Mr. Holyfield stated hundreds of hours and several revisions on the finances went into developing the specifications for this piece of apparatus. He stated his predecessor Mr. Russ Shaw started the Fire Apparatus Schedule and that he has continued the spreadsheet because it worked. He stated the spreadsheet gives them the ability to plug numbers and pieces of apparatus into the spreadsheet to see how they would affect Replacement Plan, the Apparatus Reserve Fund Capital Account and the Fleet. He noted as an example that R-11 was on the Apparatus Replacement Schedule to be replaced in 2021; however, he explained by replacing the motor for $126,000 they were able to extend the life of the truck. He also explained that the Apparatus Replacement Schedule spreadsheet helped them to look long-term both in terms of the apparatus fleet with regard to: (1) What could be consolidated; )2) What needed to be replaced; or (3) How they could extend the lifecycle of a piece apparatus; and (4) In terms of and in funding. He stated because the cost of fire apparatus and parts were increasing by 10% - 15% that during the Fiscal Year 2022/2023 Budget process the annual funding allocation to the Apparatus Reserve Fund Capital Account was increased by 10% to account for the rising costs. He noted the 20-24 months lead time for the construction and delivery of the 3,000-gallon Tanker; and he noted that New England Fire Apparatus was going to order the chassis, frame and motor because they were concerned about price increases. He stated New England Fire Apparatus stated that should the purchase not be approved that they could use them for another town.
Councilor Saums noted the town has used various fire suppression strategies in the past such as the Compressed Air Foam System (CAFS) and the Drop Tank Systems and he questioned how they decided to purchase a 3,000-gallon Tanker. Ledyard Center Fire Chief Jon Mann explained with only 50% of structures on the Ledyard side of town having access to a fire hydrant that having 3,000-gallons of water at the scene would play a big role. Mr. Holyfield stated that both the Ledyard Center Fire Company and the Gales Ferry Fire Company’s Tankers would be used on both sided of town, when the need arises. He stated that they try to supplement and work with both Fire Companies, explaining that if there was a fire on Vinegar Hill Road, where they do not have fire hydrants, that the Ledyard Center Tanker would arrive first, which would help with safety. He addressed Drop Tanks and stated that he could only think of one or two times when they used the drop tanks. He also noted if they had a large fire that other Fire Companies Tankers would also respond to the scene providing Mutual Aid, and that Ledyard’s Tankers would also go out of town. However, he stated they have agreed that one Tanker would stay in town at all times.
Mr. Holyfield stated R-11 still had the CAFS on it, noting that when it was purchased it was believed to be the best approach. However, he stated as it turned out the CAFS system may not have been the best approach for Ledyard, based on training, usability and maintenance. He stated Ledyard got rid of R-12 (Ledyard Center Fire Company) which had CAFS on it. Mr. Mann stated they have learned that the CAFS system was not financially smart at a fire when the structure was fully involved. He stated for a smaller fire the CAFS system worked well. He stated for the majority of fires they have in Ledyard they have found that water method was the best strategy.
Mayor Allyn, III, addressed the Fire Hydrant Study and public water supply noting that Ledyard did not have a plan to expand the public water supply in the near future.
VOTE: 2 - 0 Approved and so declared
Action: Recommend to Approve