TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Purchase of two (2) Additional Future Fire Apparatus from Fire Service, Inc. for $2,314,308.00
end
BACKGROUND:
The Joliet Fire Department has developed a 5-year forecast for apparatus replacement. Within this forecast, (4) of the next (5) proposed apparatus purchases are duplicate builds. Two of these units were approved for purchase in CM #121-23 for budget years 2023 & 2024, with the purchase then amended to not exceed a purchase price of $1.2 million each as part of CM #681-23. After a discussion with the Fire Chief and the Finance Director, the purchase of one apparatus has been programmed in each of the next five fiscal years (2024-2028)
During the negotiations on the apparatus builds for 2023 & 2024, a discussion was held with the manufacturer on the purchase of additional units in future years. The manufacturer has offered to hold the pricing at current levels for all four (4) builds (the 2023 quote of $1,157,154 per unit) if the City would accept a delayed start of 6 - 9 months on the build of final two units.
Price increases of more than 12% have already been announced on these vehicles since the original quote provided to the City. An additional another price increase is expected prior to Spring 2024. Ordering the next two (2) units at this time, with the expected build timelines of 30 - 36 months on each and the added 6 - 9 month delay will line up with the 2025 and 2026 budgets. The City of Joliet will also realize significant savings on these purchases by ordering them at this time. The chart below is a summation of these approved and proposed purchases and anticipated apparatus arrival dates:
The Public Service and Public Safety Committees will review this matter.
CONCLUSION:
The City has previously approved E-ONE Services as a single source provider for the Joliet Fire Department apparatus. Fire Service, Inc. is an approved dealer for E-ONE equipment. Fleet Services did supply two (2) additional vendors the specifications for our equipment to review prior to the decision to proceed with the purchase of the first two (2) apparatus. After discussions with Fire Department staff, it was determined that there was not significant reasons to alter the fleet standardization gains the City has realized by purchasing E-ONE.
Section 2-438 of the City of Joliet Code of Ordinances states that purchases over $25,000.00 may be awarded without written specifications or bidding under certain circumstances. One of these circumstances applies:
(f) Purchases when authorized by a vote of two-thirds (2/3) of all members of the City Council then holding office.
Purchases will be charged to the Fire Department - Capital Improvement Fund (Org 30070020, Object 557500) in the appropriate budget years. when the units are delivered.
RECOMMENDATION:
recommendation
Based upon the above, it is recommended that the Mayor and City Council approve the purchase of two (2) fire apparatus, in an amount not to exceed $1.2 million each, as part of the 5-year Capital Improvement Plan, one utilizing 2025 funds and one utilizing 2026 funds, from Fire Service, Inc.
end