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Item 3.14 Approve Purchase Contract Agreement Fire Safety USA Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Fire Fire Chief McCoy November 9, 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.14 – Fleet Procurement STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. X Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommend the City Council approve a vehicle purchase agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: The Otsego Fire Department currently owns a Midwest Freightliner Engine. With change in leadership in the Fire Department, Interim Chief Scott and Fire Chief McCoy evaluated this vehicle and determined that there are more cost- efficient vehicles that will better suit the operations of the Department. The Public Safety Commission reviewed this conceptual recommendation at their June 2026 meeting, and via motion, directed City staff to continue to pursue opportunities for sale of existing equipment and procurement of new equipment. The City has been working with Fire Safety USA, who will purchase the Midwest Engine from the City of Otsego and will subsequently sell that engine to a department in the state of Washington. Fire Safety USA has quoted an E-One Mini Pumper for sale to the City. The trade/sale value of the existing vehicle is in the amount of $525,000, which fully covers the cost of the original purchase price. The purchase price of the new vehicle is $460,000, including an $18,000 allowance for upfitting of lighting, equipment, and graphics. The remaining credit of $65,000 will be paid to the City, deposited in the Fire Reserve fund which will be used to offset the cost of other department equipment. Delivery of the new mini-pumper is estimated to be 30 days from time of approval. SUPPORTING DOCUMENTS ATTACHED: • Purchase Agreement – Fire Safety USA POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve the Fire Apparatus Purchase Contract Agreement between the City of Otsego and Fire Safety USA, authorizing sale of the 2025 Midwest Freightliner Engine in the amount of $525,000, and authorizing purchase of the 2026 E-One Ford F550 Mini-pumper in the amount of $460,000. BUDGET INFORMATION FUNDING: BUDGETED: Fund 214 – Fire Reserve N/A 1 FIRE APPARATUS PURCHASE CONTRACT AGREEMENT This Agreement (“Agreement”) is made this , by and between Fire Safety USA, Inc., 3253 19th Street NW, Rochester, MN 55901 (hereinafter “Company”) and Otsego Fire Department, 14499 75th St NE, Otsego, MN 55330 (hereinafter “Buyer”). 1.) Purchase: The Company agrees to sell, and the Buyer agrees to purchase, the fire apparatus and equipment described in the Company's Proposal and the Specifications attached hereto and hereby incorporated by reference (the "Apparatus"), all in accordance with the terms and conditions of this Agreement. Changes to the Specifications attached hereto will only be executed by the Company if documented by a Change Order signed by both parties. In the event of any conflict between the Company's Proposal and the Buyer's Specifications, the Company's proposal shall prevail. The Buyer desires to purchase the Apparatus through Sourcewell. [OPTIONAL — REMOVE IF NOT APPLICABLE] Price of New E-ONE Mini Pumper, per proposal: Trade-in of 2025 Midwest Fire 4x4 Pumper, release date - Remaining Credit Due to Buyer: Trades: The traded trucks must be in “same or similar” condition as they are now, at the time traded in, and/or the Buyer shall bear the responsibility to have the traded truck[s] brought back to the same or similar condition in order to trade it in. The Company shall inspect the truck at the time of delivery to confirm that it is in the condition required by this paragraph. Notwithstanding any provision in this Agreement to the contrary, any truck accepted by the Company as a trade-in shall be taken “AS IS” and “WITH ALL FAULTS” and the Buyer shall have no liability or obligation in regard to such trucks after delivery to the Company. The traded truck[s] shall have the trade value specified in our proposal documents based on the release dates. [OPTIONAL — REMOVE IF NO TRADE-INS] Unless otherwise specified, this Purchase Price is exclusive of all Federal, State or local taxes of any nature. Any such taxes are the sole responsibility of the Buyer unless specifically added to the Purchase Price, at which time they will be paid by the Company; provided, however, if the Buyer claims the Order is exempt from any tax, Buyer agrees to furnish the applicable exemption certificate to the Company and to hold the Company harmless from any damage which may result from the Company ultimately having any such tax assessed against it. 1 $460,000.00 $65,000.00 The Buyer agrees to purchase the new E-ONE Mini Pumper for Four Hundred Sixty Thousand Dollars ($460,000.00), including an $18,000.00 allowance for upfitting and graphics. The Company agrees to allow Five Hundred Twenty-Five Thousand Dollars ($525,000.00) for the trade-in identified above, resulting in a remaining credit of Sixty-Five Thousand Dollars ($65,000.00) due to Buyer. The Company shall issue a check payable to Otsego Fire Department for this remaining credit. 5th day of November, 2026 $525,000.0011/5/2026: 2 PAYMENTS All payments from Customer shall be made payable to Fire Safety USA, Inc. and no other payee shall be named. 3.) Pre-Build: If included in the specifications, a pre-build conference will be conducted to ascertain and confirm customer requirements with respect to the Apparatus ordered by Buyer. Both parties agree that the pre-build conference will be conducted no later than thirty (30) business days from execution of this Agreement. 4.) Delivery : The Buyer shall be kept updated throughout the purchase process with estimated delivery timelines. It is agreed that such delivery is subject to delays caused by war, acts of god, hurricane, labor shortages or strikes, inability to obtain materials, and other causes reasonably beyond the control of the Company and that the Company will not be liable for, and this Agreement may not be terminated on account of, such delays. Buyer will be notified no less than fourteen (14) business days in advance of the delivery date. 5.) Final Inspection - Customer Factory Inspection: A final inspection shall be performed at the Company’s dealership location prior to delivery to the customer. In the event that the buyer fails to make a final inspection by the date agreed upon by both Company and Buyer, Company reserves the right to arrange for delivery of the Apparatus to the Buyer, and to charge the Customer the full invoice price for the Apparatus, which shall be paid for in the manner specified in paragraph 2. 6.) Buyer’s Cancellation for Convenience. If Buyer tenders any cancellation hereunder, Buyer shall nevertheless accept delivery of all products which are completed at the time of cancellation. Those products which constitute work- in-process inventory at the time of cancellation shall be paid for by Buyer at a price equal to the completed percentage of the product multiplied by the price specified in Paragraph 2. Buyer also shall pay promptly to Company the costs of settling and paying claims arising out of the termination of work under Company’s subcontracts or vendors, plus an additional 15% to defray Company’s accounting, legal, and clerical costs arising out of the cancellation. 7.) Title: The Company and Buyer agree that the Manufacturer’s Statement of Origin shall remain with the Company until the Company has been paid in full.  Provided that the Company has been paid in full, the Manufacturer’s Statement of Origin shall remain with the Company until the Apparatus is in the physical custody of the Buyer, or Statement of Origin will be utilized to apply for a Motor Vehicle Title, depending on applicable law(s) in destination state. Statement of Origin or Title Application documentation will be sent to customer within ten business days after delivery of the vehicle. Upon pick up by Buyer, responsibility for title application, ownership and risk of loss shall pass from Company to Buyer. 2 The trade-in allowance exceeds the purchase price of the new apparatus by $65,000.00. The Company shall issue a check payable to Otsego Fire Department in the amount of $65,000.00 for the remaining credit. The standard 90%/10% payment schedule does not apply to this transaction. 3 8.) Warranty: The Company warrants each new Apparatus manufactured against defects in material and workmanship for a period of ONE YEAR from the in-service date per the Warranty Registration Card. Warranties beyond this may be applicable to certain components of the Apparatus as described in the Statements of Warranty previously provided to the Buyer. This warranty is in favor of the original user/purchaser, in accordance with the Company's preprinted Statements of Warranty which are either attached to the Agreement or have otherwise been delivered to Buyer. Buyer hereby acknowledges receipt of the Company's preprinted Statements of Warranty. With respect to any Apparatus not manufactured by the Company, such items shall not be warranted by the Company but shall be subject to the warranty provided by the manufacturer. These warranties are in lieu of all other warranties, whether express or implied, and THE COMPANY EXPRESSLY DISCLAIMS ALL OTHER SUCH WARRANTIES, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 9.) Notices: The parties to this Agreement designate Otsego Fire Department as representative of the Buyer and Fire Safety USA, Inc. as representative of the Company for purposes of all communications regarding this Agreement. 10.) Waiver of Jury Trial: The parties to this Agreement agree that any dispute arising hereunder, if brought before a court having proper jurisdiction, shall be adjudicated in a bench trial and the parties expressly waive any right to have such matter(s) tried before a jury. 11.) Entire Agreement: This Agreement, including its attachments and exhibits, constitutes the entire understanding between the parties relating to the subject matter contained herein and supersedes all prior discussions and Agreements. No agent or representative of the Company has authority to make any representations, statements, warranties or Agreements not herein expressed and all modifications or amendments of this Agreement, including its attachments and exhibits, must be in writing signed by an authorized representative of each of the parties hereto. 12.) Acceptance by Company: This Agreement shall not constitute a valid and binding obligation of the Company until accepted in writing by an officer of the Company at its offices in Rochester, Minnesota. When requested by the Company, the Buyer shall furnish a satisfactory written opinion of the Buyer's attorney that the Buyer has the power to make the Agreement, that the individual signing is authorized to sign on behalf of the Buyer, and that this Agreement is a valid, legal and enforceable obligation of the Buyer. 3 4 IN WITNESS WHEREOF, The Company and the Buyer have caused this Agreement to be executed by their duly authorized representatives as of the date set forth by each. BUYER:COMPANY: Otsego Fire Department FIRE SAFETY USA, INC. By:___________________________________By:______________________________________ Ryan Clarey, Fire Safety USA, Inc. Title:__________________________________Title: Dealer Principal . Date:__________________________________Date:_____________________________________ 4 designed for municipal fire suppression, EMS response, vehicle accidents, and initial attack operations while maintaining excellent maneuverability and lower operating costs. This proposal is budgetary in nature and subject to final specification review, chassis availability, and component pricing at the time of order. Thank you for the opportunity to provide this information. I would be glad to meet and discuss configuration options that best fit the City of Otsego's operational needs and long­ term apparatus plan.