Finance committee recommends prepayment to lock price on new pumper‑tanker for Test Corners volunteer fire department

The Muskego City Finance Committee on May 13 voted to recommend approval of a purchase agreement and prepayment option for a velocity pumper‑tanker to serve the Test Corners Volunteer Fire Department, with the volunteer department contributing $25,003.76 so the city share does not exceed $950,000.

Committee members and city staff debated whether to prepay the vendor to lock the purchase price and avoid future increases during the truck’s multi‑year build. City staff described the prepayment option as a common way to fix the manufacturer price during long lead times. “If we prepay for this and we’ve done this with fire trucks in the past … everything’s locked,” a city staff presenter said during the meeting.

The discussion centered on three main concerns: the rising vendor estimates since the vehicle was first budgeted, whether the city should pay the full amount up front instead of a deposit, and whether the city should solicit competing quotes from other manufacturers. Committee members noted the department and the city had budgeted $950,000 during the capital process; staff said vendor estimates had come in higher at several points and that Pierce (the vendor the department typically uses) had offered a prepayment discount and a locked price. City staff said the manufacturer’s standard purchase agreement allows the vendor to raise the price until payment is received, and prepaying would protect the city from such increases.

Several elected officials raised procurement concerns. Alderman Jackson asked where Test Corners’ $25,003.76 contribution would come from; a Test Corners representative said the department planned to use donations and fundraisers and that the contribution would be paid when the city paid. Other committee members asked why the city had not sought a competitive bid from other manufacturers. Volunteers and fire officials explained the department has standardized on Pierce equipment for compatibility and local service availability. One committee member said that while a second quote would be prudent, Pierce is a dominant supplier in the industry and local service support was an important consideration.

Fire officials described the operational rationale for the vehicle: it will combine pumper capability with an increased onboard water tank (staff said the new engine will carry about 1,600 gallons compared with roughly 1,000 on a typical engine) to improve initial fire attack in areas without hydrants and reduce reliance on tenders. Staff said typical build time for such vehicles is several years; presenters estimated about three to four years. The committee and fire representatives also reviewed the department’s existing vehicle fleet, the disposition of the truck being replaced and how assets are handled under the city’s agreement with Test Corners (the transcript includes reference to a 1998 dissolution agreement outlining asset treatment on termination of the arrangement).

After extended discussion the committee voted by voice to recommend approval. The motion, mover and seconder were not recorded in the transcript; the vote was taken by voice with no roll‑call tally shown. Committee members also discussed the risk of prepaying the full amount (concerns included the risk the manufacturer could fail before delivery and the opportunity cost of deploying city funds while waiting for the build). City staff said past practice and the vendor’s terms make prepayment a reasonable option to lock price during long build times.

The committee’s recommendation goes to the Common Council for final approval; staff said Test Corners would pay the volunteer department’s contribution at the same time the city pays the vendor.