Agenda

Return

C. 26

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	November 17, 2020

Contra

Costa

County

Subject:

Rosenbauer America, LLC Fire Truck Purchase Agreement

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/17/2020

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Cindy Shehorn, (925) 957-2495

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: November 17, 2020
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

Acting as the Board of Supervisors of Contra Costa County, APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute, on behalf of the County, a purchase order with Rosenbauer America, LLC, a third-party lease-purchase agreement with Key Government Finance, Inc. in an amount not to exceed $1,038,271.90, and a lease-purchase agreement with Crockett-Carquinez Fire Protection District, in connection with the lease-purchase of a Rosenbauer 75-foot fire truck (“Truck”) over a five-year term commencing on or about November 16, 2020, as recommended by the Purchasing Agent. Cancel Purchase Order No. 16942, in the amount of $980,360 approved on August 6, 2019, upon the issuance of a corrected purchase order to Rosenbauer America, LLC, in the amount of $991,712.78, for the purchase of the Truck.

RECOMMENDATION(S): (CONT'D)

Acting as the Board of Directors of the Crockett-Carquinez Fire Protection District, APPROVE and AUTHORIZE the Fire Chief to execute, on behalf of the District, a lease-purchase agreement with the County, in an amount not to exceed $1,038,271.90, to acquire the Truck from the County over a five-year term commencing on or about November 16, 2020.

FISCAL IMPACT:

The total fire truck cost over 5 years is $1,038,271.90. The annual interest rate is 2.25%. Scheduled payments will begin in December 2020. The annual lease purchase payments will be included in the annual Crockett-Carquinez Fire Protection District budget. The County will pass through to the Fire District the payments that the County makes to Key Government Finance, Inc.

BACKGROUND:

The Crockett-Carquinez Fire Protection District requires the Rosenbauer FX 75’ Mid-Mount Viper Fire Truck (“New Apparatus”) to replace a 1983 American LaFrance Fire Truck. The American LaFrance has had significant mechanical problems. The National Fire Protection Association (NFPA) Standard 1901 for Automotive Fire Apparatus and Standard 1911 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 breaking systems, and other considerations. The New Apparatus will have a direct and immediate impact on reducing maintenance costs and improving firefighter safety. The New Apparatus meets all 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 2018, Rosenbauer America, LLC was awarded NJPA Contract #022828-RSB through a competitive solicitation. The contract awarded by Sourcewell is in effect until April 16, 2022. The New Apparatus purchase price is based on the NJPA contract and meets all competitive bid requirements.

The County is in the best position to finance the purchase of the New Apparatus. The County has an existing relationship with Key Government Finance, Inc. (“Key”) and has made several lease-purchases using financing from Key. Key also has indicated that it will not approve financing for the Fire District.

To ensure the Fire District can purchase the New Apparatus on the best possible terms, the County will purchase the New Apparatus on behalf of the Fire District under its existing master lease-purchase agreement with Key. The total lease cost will be $1,038,271.90, which includes principal and interest over the five-year lease-purchase term, which commences on or about November 16, 2020. The County will enter into a lease/use agreement with the Fire District to pass through to the Fire District all lease payments being made to Key under the master lease-purchase agreement. The Fire District will be required to indemnify, defend, and hold harmless the County from any liabilities that arise from or are connected with the Fire District's use of the New Apparatus. The Fire District will maintain, operate, use, insure, and be responsible for loss of or damage to the New Apparatus, but title will be held by the County until all lease payments are made. After all payments have been made, the County will transfer title of the New Apparatus to the Fire District.

The County Administrator’s Office has approved these transactions on behalf of the County. Staff recommends that the Board approve this item, as recommended, to ensure the Fire District can acquire a critical Apparatus to replace a truck that is beyond its useful life.

CONSEQUENCE OF NEGATIVE ACTION:

Crockett-Carquinez Fire Protection District will not be able to purchase the New Apparatus, which will result in increased maintenance costs of the older equipment.