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AUTHORIZATION FOR THE PURCHASE OF (1) ONE PUMPER/TANKER TRUCK IN THE AMOUNT OF $657,778.05 FROM PIERCE MANUFACTURING THROUGH CONRAD FIRE EQUIPMENT UTILIZING THE HOUSTON GALVESTON AREA CONTRACT (HGAC) FOR THE FIRE DEPARTMENT.
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BACKGROUND: The fiscal year 2018-2019 (FYE 19) budget includes funds to purchase a replacement fire apparatus from Public Safety Sales Tax proceeds.
DISCUSSION: The City has purchased major fleet vehicles from the Houston Galveston Area Contract (HGAC) in the past to satisfy the Norman Code requirements found in Section 8-204. Purchasing from these types of contracts provides the City with the benefit of a competitive bid process without the time and expense of acquiring separate bids. In this case, the HGAC has a much wider selection of competitively bid items available, including fire apparatus. The City has purchased several apparatus through Conrad Fire Equipment in the past with success.
In this case we have an opportunity to purchase an apparatus (pumper/tanker truck) budgeted for FYE 19 from Pierce Manufacturing through Conrad Fire Equipment utilizing the HGAC. Cost of this apparatus is $681,875.17. Conrad offers an 80% prepayment discount. The HGAC contract submitted by Pierce Manufacturing Company for $657,778.05 includes an 80% prepayment discount of $24,097.12. The contract requires an initial payment of $545,500.13 with the remaining $112,277.92 to be paid after the apparatus has been received and accepted by the City. This apparatus will be placed at Station 6, which is in Ward 5.
Funds for this purchase are available in the FYE 19 Budget in Public Safety Sales Tax, Fire Suppression, Fire Trucks (015-6543-422.50-05).
RECOMMENDATION: Staff recommends that City Council authorize the purchase of the fire apparatus from Pierce Manufacturing through Conrad Fire Equipment utilizing the HGAC in the amount of $657,778.05.