City Council

19.\nAWARD OF CONTRACT WITH FIRE APPARATUS SOLUTIONS FOR THE\nPURCHASE OF TWO NEW KME K180 4119 PUMPERS AND AWARD OF CONTRACT\nFOR THE LEASE/PURCHASE THROUGH A FINANCING AGREEMENT WITH\nLEASING 2, INC. – F2M26-6B, C2M26-3, C2M26-9, M2M26-24\nThe fire engines that will be replaced are over twenty years old and do not accommodate\nthe requirements or standards of apparatus today. Both units incur significant costs to\nmaintain and repair. Once the engines are replaced with new apparatus, they will be\nrotated into reserve status. The Fire Department has opportunity to piggyback on\nSourcewell Contract #113021-RVG-3 for the purchase of the new 2026 KME K180 4119\nPumpers with equipment from Fire Apparatus Solutions. Per the Alhambra Municipal Code\n3.36.080(B), bidding exemption is authorized, and the City may “piggyback” onto an\nexisting contract. Staff recommends purchasing two fire engines through a Sourcewell\ncontract to achieve cost savings and reduce the estimated build time from approximately\n48 months to 12 months. This procurement strategy allows the City to acquire two fire\nengines at more favorable pricing while accelerating delivery. The total cost to acquire and\noutfit two fire engines in FY 2026/27 is $964,980.45. Leasing 2, Inc. offers financing\noptions with low interest rates for terms of seven or nine years. Staff recommends the\nseven-year financing term. The total lease/purchase cost for the two 2026 KME K180 4119\nPumpers is $2,904,863.15. The annual lease/purchase payment over the seven-year term\nis $414,980.45, with the first payment scheduled for January 30, 2027.\nRecommended Action:\nCity Council award a purchase contract with Fire Apparatus\nSolutions for the purchase of two new 2026 KME K180 4119 Pumpers in the amount of\n$2,429,275.76; award of contract for the lease/purchase of the two new pumpers through\na financing agreement with Leasing 2, Inc. in the amount of $2,904,863.15 for a seven\nyear term, subject to final language approval by the City Manager and City Attorney;\nauthorize the City Manager and/or her designee and the City’s Director of Finance to\nexecute the necessary documents; direct the Finance Director to carry over $185,000 from\nFY 2025/26 to FY 2026/27, transfer $148,000 from CIP savings, and appropriate an\n11\nadditional $171,580.45 from the Equipment Fund balance to fund the remaining shortfall\nfor the acquisition and outfitting of two fire engines; and direct staff to undertake the\nnecessary steps to finalize Council’s action. (M2M26-24)