The proposed order of six (6) fire apparatus is valued at approximately $4,200,000 including sales tax and all associated charges. The purchase price for the six (6) fire apparatus will be paid by PNC Equipment Finance, LLC under the Master Lease Agreement.
On December 9, 2014, this Board approved and authorized the Fire Chief to enter into a Master Lease Agreement with PNC Equipment Finance, LLC (“PNC”), and on December 23, 2014, the District entered into the Master Lease Agreement (the “MLA”) with PNC. The MLA was used in 2014 to finance the purchase of nine engines from Pierce Manufacturing as set forth in Lease Schedule No. 187134000, dated December 23, 2014.
The District now desires to finance the purchase of additional equipment from Pierce and additions to existing equipment purchased from Pierce by entering into two separate lease schedules to the MLA.
The Contra Costa County Fire Protection District (Fire District) has deferred significant capital purchases of fire apparatus for several years. An order was placed in December, 2014 under the same lease-purchase program format. The last apparatus purchase made solely with Fire District funds was in 2007.
The Fire District has a fleet of 34 Type I engines. Those engines are distributed as 18 frontline engines for primary response, three cross-staffed engines at fire stations staffed with aerial apparatus, and 13 reserve and training engines. The average age of the Type I engine fleet is 15 years with an average mileage of over 100,000 miles. Fourteen of these engines have mileage well in excess of 100,000 and seven exceed 125,000. The Fire District spends an average of $19,113 in maintenance on the current Type I engine fleet annually, with older and higher mileage engines accounting for the majority of the maintenance expenses. The Fire District has a fleet of eight aerial apparatus. Seven are "quint" apparatus, which are ladder trucks equipped with a fire pump, hose, and water. One aerial apparatus is a "truck" apparatus that carries no water, pump, or hose. These aerial apparatus are distributed as five frontline aerials for primary response and three spares. The average age of the quint fleet is now 15 years. The single truck is four years old. The average mileage of the aerial fleet is over 100,000 with the two oldest aerials having an average mileage of 125,000. The Fire District spends an average of $22,668 per year on maintenance for these vehicles.
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 do not afford firefighters the same level of safety as modern apparatus due to cab designs, inherent safety features incorporated into modern fire apparatus design, 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 retire front-line apparatus sooner than 15 years. In our Fire District, the high use and mileage of our front-line apparatus suggest retirement sooner than 15 years.
The acquisition of the apparatus in this order will accomplish several objectives. The new apparatus will have a direct and immediate impact on our ability to provide increased reliability for emergency response, as compared to our existing fleet, with reduced out-of-service time for maintenance and repairs. The new apparatus will have a direct and immediate impact on reducing our maintenance costs now and into the future as a result of not only the age of the apparatus but also the quality of apparatus being acquired. The new apparatus will enable the Fire District to comply with the recommendations of NFPA 1901 and 1911, increasing firefighter safety and fleet reliability. This additional investment in capital, on an annual basis, over the next ten years will enable the Fire 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 mission of the Fire District.
The funds needed for this lease-purchase program are included in the current fiscal year budget, have been considered in future year budget forecasts, and represent less than 1/2% of the annual budget. The lease-purchase program allows the Fire District to acquire a larger order of apparatus with payments spread out over 10 years. The Fire District has used this type of financing arrangement in the past for large orders of apparatus. This Fire District does not have the capital available to acquire these apparatus without the use of a lease-purchase program.
The Fire District relies on a diverse fleet of engine, truck, quint, squad, and rescue vehicles to fulfill our mission of providing safe, reliable, and efficient emergency services. This order will replace approximately 22% of our frontline engines, 20% of our frontline aerial apparatus, and provide a new rescue apparatus which will enable us to respond more effectively to complex rescues throughout the Fire District. The rescue truck enhances our capabilities by providing an apparatus that can carry the tools and equipment necessary to arrive at a scene quickly and provide our personnel a platform to work from safely and efficiently. The current rescue vehicles are comprised of small utility trucks and trailers required to carry all the rescue equipment necessary. Their response is often hindered by the need to attach trailers, and because they are towed, their response times are often negatively impacted.
If approved, new fire apparatus will begin arriving in October 2016 and will be in service shortly after delivery to stations throughout the Fire District. Older apparatus will be removed from service or placed in reserve status to meet the needs of the Fire District. The integration of new apparatus into the fleet and the subsequent removal of older apparatus from frontline service will have a positive impact on reducing maintenance and repair costs which will assist in offsetting a portion of the annual cost of the lease-purchase program.
The Fire District will not be able to acquire new apparatus. The current age and condition of the fleet will continue to deteriorate and negatively impact our ability to provide safe, reliable, and effective emergency response. Maintenance costs would continue to increase having an adverse impact on the operational budget. Increases in out-of-service time for fire crews will increase as a result of mechanical breakdowns. The District will not be able to take advantage of the UASI funds awarded for the purchase of a new rescue unit.