190987

Emergency Ordinance

*Authorize a purchase order with Hughes Fire Equipment, Inc. for an emergency response apparatus for a total amount not to exceed $1,724,735

Passed

The City of Portland ordains:

Section 1.  The Council finds:

  1. Portland Fire & Rescue (PF&R) requires a new Tractor-Drawn Aerial Ladder apparatus to replace existing aging apparatus. The estimated total cost for this purchase is $1,724,735.00.
  1. PF&R’s 2022-23 capital budget for apparatus replacement and PF&R’s apparatus replacement reserve provide the funding for this purchase.
  1. City of Portland Code 5.33.170 authorizes the City to participate in Interstate Cooperative Procurements for the acquisition of goods or services when source selection methods have been conducted substantially equivalent to those identified by City Code.
  1. The Houston-Galveston Area Council (HGAC) conducted such a solicitation for emergency response apparatus and the resulting contract with Hughes Fire Equipment, Inc. allows such participation by other governmental entities.
  1. Portland Fire & Rescue seeks Council’s authorization to purchase one fire apparatus through the HGAC contract for the not-to-exceed amount of $1,724,735.00 by adoption of this ordinance.

NOW, THEREFORE, the Council directs:

  1. The Chief Procurement Officer is authorized to enter into a purchase order with Hughes Fire Equipment, Inc. on behalf of the City for the purposes identified in Section 1.

Section 2. The Council declares that an emergency exists because of a 3 percent unit price increase effective October 21, 2022; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.

An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)

Passed by Council

Auditor of the City of Portland
Mary Hull Caballero

Impact Statement

Purpose of Proposed Legislation and Background Information

Purpose of proposed legislation and background information:

The purpose of this ordinance is to authorize a purchase order with Hughes Fire Equipment, Inc. for the purchase of a Tractor Drawn Aerial Ladder apparatus

Financial and Budgetary Impacts

Financial and budgetary impacts:

Funding for this project is entirely covered by Portland Fire & Rescue’s (PF&R) 2022-23 capital budget for apparatus replacement and PF&R’s apparatus replacement reserve.

Community Impacts and Community Involvement

Community impacts and community involvement:

This acquisition will benefit the entire community by replacing aging fire apparatus with new and more efficient apparatus.

100% Renewable Goal

100% Renewable Goal:

The new apparatus will be 2022 EPA emissions compliant and will replace 20+ year apparatus that have no emission controls.

Budget Office Financial Impact Analysis

This is a planned expense as arrayed in the bureaus’ Capital Improvement Program, which has $2.53 million in planned Apparatus Replacement expenses in its FY 2022-23 Adopted Budget—leaving approximately $800,000 for apparatus replacement costs for the remainder of FY 2022-23.

CBO notes that Citywide Financial Policy FIN 2.03 “Financial Planning” mandates bureaus “that own or manages capital assets or equipment shall develop and maintain a Capital Improvement Plan (CIP) that identifies the individual capital acquisitions, projects or procurements necessary to meet planned levels of service. The CIP shall span a minimum of five years and provide a description, location, timing, cost and funding source for each project, which will constitute a key component of their bureau’s financial plan.”

As part of FY 2019-20 Budget Adoption, the bureau created the Fire Capital Fund (Fund 405) which enabled the bureau to sequester resources from one-time or ongoing appropriation to fund the outlays related to its capital assets. There currently exists $8.0 million in revenue in the “Apparatus Replacement” subfund for these expenses. The Fire Capital Fund’s Apparatus Replacement Subfund is funded by General Fund discretionary resources that were previously sequestered in the General Reserve Fund (Fund 210). This reserve was generated during the life of the Fire Apparatus Replacement GO Bond (2010 to 2015), a five-year period during which the bureau was able to use a local option levy to replace its emergency apparatus. During that time, the bureau sequestered its regular ongoing apparatus replacement allocation of $1.8 million annually into the General Reserve subfund to extend the ability to fully fund apparatus replacement needs beyond the life of the Bond. PF&R states in its CIP that “Over time, annual replacement costs exceed the annual appropriations for apparatus, and PF&R estimates this funding gap will result in a depletion of the Fire Apparatus Reserve balance in approximately 8 to 9 years” indicating a need to plan for a successor resource at that point in time.

Agenda Items

751 Consent Agenda in September 7, 2022 Council Agenda

Passed

  • Former Commissioner Jo Ann Hardesty Yea
  • Commissioner Mingus Mapps Yea
  • Commissioner Carmen Rubio Yea
  • Commissioner Dan Ryan Absent
  • Mayor Ted Wheeler Yea

Contact

Requested Agenda Type

Consent

Date and Time Information

Requested Council Date