Title
Dept/ Agency: Administration/Division of Central Purchasing
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Bid Contract(s)
Purpose: Use of National cooperative to purchase fire trucks and ladders and assign right of payment to Tax-Exempt Leasing Corp. and authorization to enter into a Equipment Lease Purchase Agreement.
Entity Name(s)/Address(s):
1) Absolute Fire Protection Co., Inc., 2800 Hamilton Boulevard, South Plainfield, New Jersey 07080; and
2) Tax-Exempt Leasing Corp., Libertyville, Illinois 60048
Contract Amount: Not to exceed $5,621,078.00
Funding Source: 2021 Budget/Department of Public Safety, Division of Fire NW051-G21-F21A0-94510-B2021
Contract Period: To be established for a period not to exceed ten (10) years
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
Additional Information:
This Resolution authorizes, through the use of Houston-Galveston Cooperative, an award of a contract and to enter into an Equipment Lease Purchase Agreement with a vendor to provide five (5) new E-One pumpers, one (1) new E-One Custom SS Rescue, for the purchase and delivery of one (1) new E-One 110’ Ladder, and one (1) new E-One 92’ Tower Ladder for a term of ten (10) years.
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WHEREAS, by Resolution 7R1-c dated January 6, 2016, the Municipal Council authorized the City of Newark (the “City”) to join the Houston-Galveston Area Council (“H-GAC” or “H-GACBuy”), a national cooperative purchasing organization; and
WHEREAS, the City’s membership in H-GAC has been confirmed active; and
WHEREAS, the Purchasing Agent, seeks Municipal Council authorization to continue the City’s participation as a member of the Houston- Galveston Area Council; and
WHEREAS, the City, in furtherance of its goals to search for lower costs, greater efficiency and improved product quality, wishes to enter into a contract for cooperative purchasing; and
WHEREAS, cooperative purchasing is an inclusive term used to describe all purchasing systems where two (2) or more local contracting units join together for the provision or performance of goods or services as provided for by the Local Public Contracts Law, N.J.S.A. 40A:11-1et seq.; and
WHEREAS, the purchase of goods or services by two (2) or more contracting units increases proportionate saving in costs gained by an increased level of production; and
WHEREAS, the City, a sub-political body of the State of New Jersey, is permitted to join Cooperative Purchasing programs or organizations pursuant to N.J.S.A. 52:34-6.2(b)(3); and
WHEREAS, the H-GAC, a nationally recognized and accepted cooperative purchasing organization, maintains National Cooperative Agreement Contracts, which are competitively awarded through which members can make purchases; and
WHEREAS, the H-GAC system was developed for the purpose of utilizing a competitive bidding process to make the procurement process more efficient and provide cost savings to its members; and
WHEREAS, the Department of Public Safety, Fire Division has a need to purchase five (5) new E-One pumpers, one (1) new E-One Custom SS Rescue, one (1) new E-One 110’ Ladder, and one (1) new E-One 92’ Tower Ladder; and
WHEREAS, the Department of Public Safety, Fire Division seeks to utilize its membership in the H-GAC to purchase five (5) new E-One pumpers, one (1) new E-One Custom SS Rescue, one (1) new E-One 110’ Ladder, and one (1) new E-One 92’ Tower Ladder (“Fire Equipment”) from Absolute Fire Protection Co. Inc., 2800 Hamilton Boulevard, South Plainfield, New Jersey 07080, holder of an authorized H-GAC contract; and
WHEREAS, the Fire Equipment is being constructed in accordance with the City of Newark’s specifications; and
WHEREAS, Absolute Fire Protection Co., Inc., intends to assign its contract with the City for the purchase of this Fire Equipment to Tax-Exempt Leasing Corp., of Libertyville, Illinois 60048; and
WHEREAS, the City seeks authorization to enter into an Equipment Lease Purchase Agreement with Tax-Exempt Leasing Corp. for the purchase of the Fire Equipment.
WHEREAS, the total amount to be paid under the Equipment Lease Purchase Agreement is an amount not to exceed Five Million Six Hundred Twenty-One Thousand and Seventy-Eight Dollars and Zero Cents ($5,621,078.00); and
WHEREAS, the lease shall be for a term of ten (10) years, and at the end of the lease, the City will own the Fire Equipment; and
WHEREAS, pursuant to N.J.S.A. 40A: 11-24 the vendor, Absolute Fire Protection Co., Inc. consented to hold its prices until such time as an award is made as the law permits; and
WHEREAS, pursuant to the terms of the Equipment Lease Purchase Agreement, the first lease payment is deferred and is not due until twelve (12) months after the award of the contract as the trucks are being constructed per City of Newark’s specifications; and
WHEREAS, the sum of Five Million Six Hundred Twenty-One Thousand and Seventy-Eight Dollars and Zero Cents ($5,621,078.00) will be budgeted in the 2022 fiscal budget through the 2032 budget subject to the approval of the Municipal Council; and
WHEREAS, on January 7, 2022 the Division of Central Purchasing advertised the Notice of Intent to Award and City’s intention to enter into and execute an agreement with Absolute Fire Protection Co., Inc., under contract H-GAC ILC 16-5024, for the purchase of five (5) new E-One pumpers, one (1) new E-One Custom SS Rescue, one (1) new E-One 110’ Ladder, and one (1) new E-One 92’ Tower Ladder for the Department of Public Safety, Fire Division (attached hereto).
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Purchasing Agent, QPA, are hereby authorized to continue membership in Houston-Galveston Area Council and are authorized to enter into and execute a contract with Absolute Fire Protection Co., Inc., 2800 Hamilton Boulevard, South Plainfield, New Jersey 07080, to five (5) new E-One pumpers, one (1) new E-One Custom SS Rescue, for the purchase and delivery of one (1) new E-One 110’ Ladder, and one (1) new E-One 92’ Tower Ladder for the City’s Department of Public Safety, Division of Fire, at a cost not to exceed Five Million Six Hundred Twenty-One Thousand and Seventy-Eight Dollars and Zero Cents ($5,621,078.00) and subject to the availability and appropriation annually of sufficient funds as may be required to meet the extended obligation after the first contract year and pursuant to N.J.A.C. 5:30-5.5(d)(2) and N.J.S.A. 40A:11-15(15).
2. The Mayor of the City of Newark and/or his designees, the Business Administrator and/or the Purchasing Agent, QPA, are authorized to consent to the assignment of the agreement and enter into and execute a Tax-Exempt Master Equipment Lease-Purchase Agreement and all associated and required documents with Tax-Exempt Leasing Corp., of Libertyville, Illinois 60048, in a form substantially similar to the documents attached hereto. The Business Administrator is authorized to direct the appropriate City Officials to execute all associated and required documents in support of the Master Lease-Purchase Agreement with the anticipated closing date on or about February 15, 2022.
3. There shall be no amendment or change of this contract without the approval of the Municipal Council by resolution.
4. There shall be no advance payment on this contract in accordance with N.J.S.A. 40A:5-16. Funds for 2022 and subsequent years are contingent upon appropriations, pursuant to N.J.A.C. 5:30-5.5(d)(2).
5. This is a multi-year lease and contract to be used as needed during the term of the contract. Thus, for any and all expenditures against this contract, a certification of the availability of sufficient funds, as required by N.J.A.C. 5:30-5.5(d)(2), shall be executed before a contractual liability is incurred each time an order is placed from Account Code Line: Department of Public Safety, Division of Fire NW051-G21-F21A0-94510-B2021.
6. This contract and Equipment Lease Purchase Agreement shall not exceed Five Million Six Hundred Twenty-One Thousand and Seventy-Eight Dollars and Zero Cents ($5,621,078.00) for a period to be established and not to exceed ten (10) years for one (1) vendor with the start date of the contract commencing upon delivery of the Fire Equipment in 2023 or sooner. These purchases are grant funded. A Certification of Funds is not needed at this time as there are no funds expended or to be expended until 2023 subject to and contingent upon appropriations.
7. The Purchasing Agent, QPA, shall file a copy of this Resolution and the duly executed copy of the contract in the Office of the City Clerk.
8. If required by State Law, the City Clerk shall provide the appropriate notice of the award of this contract to the State Comptroller, no later than twenty (20) business days following such award, in accordance with N.J.S.A. 52:15C-10 and the Notice of the Office of the State Comptroller dated May 7, 2008.
STATEMENT
This Resolution authorizes the Mayor of the City of Newark and/or his designee, the Business Administrator and/or the Purchasing Agent, QPA, to continued its membership in the Houston-Galveston Area Council; through its membership in Houston-Galveston Area Council authorize it to enter into and execute a contract with Absolute Fire Protection Co., Inc., 2800 Hamilton Boulevard, South Plainfield, New Jersey 07080 to provide five (5) new E-One pumpers, one (1) new E-One Custom SS Rescue, for the purchase and delivery of one (1) new E-One 110’ Ladder, and one (1) new E-One 92’ Tower Ladder to the City’s Department of Public Safety, Division of Fire at a cost not to $5,621,078.00, for a period to be established and not to exceed ten (10) years, and enter into and execute a Tax-Exempt Master Equipment Purchase Agreement and all associated and required documents with Tax-Exempt Leasing Corp., with an anticipated closing date of February 15, 2022.
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