HomeMy WebLinkAboutX-E-01 Pre-Authorize Purchase of Ladder Truck with MacQueen EquipmentCity of Hastings 101 Fourth Street East Hastings, MN 55033-1944 Phone: 651-480-2350 www.hastingsmn.gov
City Council Memorandum
To: Mayor Fasbender & City Council Mmembers
From: John Townsend, Fire Chief
Date: October 16, 2023
Item: Pre-Authorize Purchase of Ladder truck, and authorize signature of contract with Macqueen
Emergency
Council Action Requested:
Pre-Approve purchase of Ladder Truck and authorize signature of contract with Macqueen Emergency
Background Information:
The proposed 2024 Budget currently includes $900K of funding towards the purchase of a Ladder Truck to
replace the current 2014 Ladder truck. The current ladder truck has been difficult to maintain, and operate
due to lengthy out of service times and costly repairs. To date in 2023, maintenance costs have exceeded
$23K. The replacement will be an efficient set-up with decreased maintenance and operational expenses. The
current ladder will be sold to help offset costs.
Fire apparatus cost are increasing to overall industry increased costs and new emission standards in 2024.
These trucks have extended build times and availability. The current time to delivery for this ladder truck is 31-
34 months, taking this to August of 2026.
Cost:
$1,722,952 (costs will increase after October 31, 2023 $1,740,181) savings of $17,229 if ordered before
October 31, 2023, this will likely increase again in January.
Cost for pre-payment option:
$1,580,775 (Savings of $142,177, payment within 30 days of purchase agreement.)
Financial Impact:
• $1,580,775 – total cost if we prepay
• ($900,000) – planned portion of State Public Safety allocation (funds will be received in late December)
• ($345,232) – unallocated cash that is in the Budget Stabilization Fund
• ($229,797) – cash in the Budget Stabilization Fund that had been planned to fund the Police radios,
which were then purchased without transferring this money
• ($107,761) – remaining balance; staff suggests we take this from Fund 500 reserves
o We currently have an internal loan in place to repay Fund 500 for the last Engine we bought.
o There are 7 years remaining in that loan.
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City of Hastings 101 Fourth Street East Hastings, MN 55033-1944 Phone: 651-480-2350 www.hastingsmn.gov
o Staff suggests we add about $17k to the $81,100 payment for the next 7 years and we be able
to purchase this Ladder and also refund Fund 500 to maintain reserves.
Advisory Commission Discussion: N/A
Council Committee Discussion: N/A
Attachments: Proposal from MacQueen Emergency
X-E-01
EM-102
Taxes –
Freight –
Terms –
Delivery –
Not Applicable
F.O.B. – Appleton, WI / Shipping to Hastings, MN
Net due prior to vehicle(s) release at the Pierce Manufacturing
Plant(Appleton, WI). Net due at Contract signing for Prepay discount
to be applicable.
31 - 34 months from receipt and acceptance of contract.
October 9, 2023
Fire Chief John Townsend
City of Hastings
115 West 5th Street
Hastings, MN 55033
Subject: Proposal for one (1) Pierce Enforcer PUC 107’ Ascendant Ladder
Proposal / Bid 1151
Dear Fire Chief Townsend,
With regard to the above subject, please find attached our completed proposal.
Pricing, is as follows, including 100% prepay option.
Pricing Summary:
Sale Price – $1,722,952.00*
*Houston-Galveston Area Council (HGAC) Consortium Pricing.
100% Performance Bond:
Included in the above sale price.
100% Prepayment Option:
Should the City of Hastings elect to make a 100% prepayment at contract signing, a
discount of ($142,177.00) can be subtracted from the above “Sale Price” resulting in
a revised contract price of $1,580,775.00
Terms and Conditions:
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Said apparatus and equipment are to be built and shipped in accordance with the specifications
hereto attached, delays due to strikes, war, or international conflicts, or other causes beyond
our control not preventing, could alter the delivery schedule.
The specifications herein contained, shall form a part of the final contract, and are subject to
changes as desired by the purchaser, provided such changes are acknowledged and agreed to
in writing by the purchaser.
Various state or federal regulation agencies (e.g., NFPA, DOT, EPA) may require changes to
the Specifications and/or the Product and in any such event any resulting cost increases
incurred to comply therewith will be added to the Purchase Price to be paid by the
Customer. Any future drive train upgrades (engine, transmission, axles, etc.) or any other
specification changes have not been calculated into our annual increases and will be provided
at additional cost. The Company reserves the right to update pricing in response to
manufacturer-imposed increases as a result of PPI inflation. The Company will document and
itemize any such price increase for the Customer’s review and approval before
proceeding. Should the customer choose not to accept the pricing update, the customer has
the ability to cancel without penalty.
This proposal for fire apparatus conforms with all Federal Department of Transportation (DOT)
rules and regulations in effect at the time of bid, and with all National Fire Protection Association
(NFPA) Guidelines for Automotive Fire Apparatus as published at the time of bid, except as
modified by customer specifications.
The attached proposal is valid until October 31, 2023. After October 31, 2023, Sale Price
will increase to approximately $1,740,181.00.
We trust the above and the enclosed to be full and complete at this time; however, should you
have any questions or require additional information, please do not hesitate to contact me at
507-272-2360 or tom.soland@macqueengroup.com .
We wish to thank the City of Hastings for the opportunity to submit our proposal.
Respectfully,
Tom Soland
Tom Soland
Apparatus Sales
MacQueen Equipment LLC
DBA MacQueen Emergency Group
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