The Finance Committee met 05/06/2024. One of the items they took up was a request to approve the sole source purchase of a new fire engine from Pierce Manufacturing with an expected delivery date of 4 years from now.
The committee had some questions about whether the quoted price would be locked in or whether Pierce would be able to increase the price, but due to the need to approve the item before 05/17/2024 the committee opted to approve the item and potentially take additional steps at the Common Council meeting on 05/15/2024 depending on what staff determines after discussing the question with Pierce.
I’ve prepared a transcript of the discussion for download:
This vehicle would replace a fire engine that is scheduled for replacement in 2027. The lead-time on manufacturing fire fighting trucks has increased markedly over the last three years and currently stands at 50-53 months (a little over 4 years). As a result, the city needs to submit an order now, and if they submit that order before May 17, they will avoid an increase of $15,000 that is going to be implemented due to inflation.
The Fire Department wants to purchase the engine through a sole source contract with Pierce Manufacturing both in order to maintain uniformity of their vehicles and due to the benefits in customer service that come with utilizing a local manufacturer.
There was some question as to whether or not the agreement would allow Pierce to raise the agreed upon price by 5% a year or not. Past agreements have locked in the vehicle price, but this agreement included a clause that seemed to allow the price to be increased. City staff was going to talk to Pierce and clarify that aspect of the agreement and provide an update to Council members prior to the Common Council meeting on 05/15/2024.
Additionally, it was noted that this vehicle would have a different engine than previous vehicles the city purchased had. There is going to be a new emissions requirement in effect in 2027 which will require a new type of engine. Pierce was not yet sure what that new engine would be.
The committee voted 4-0 to approve the sole source purchase of a fire engine from Pierce Manufacturing with the expectation that staff would look into whether the price was locked in or could be increased and report back by the Common Council meeting on 05/15/2024.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1189393&GUID=7D8E58BF-B006-461F-85F8-5D99E3728288
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