April 24 -- Fremont has moved up its purchase of two new fire engines by several months to avoid a surcharge that the manufacturer will soon add as a result of the Trump administration’s new tariffs on imported steel and aluminum.
The City Council approved the $1.76 million purchase at its April 17 meeting. The fire engines will replace older ones.
The two fire engines to be replaced, one in service since 1999 and the other in service since 2002, are “at an increased risk of mechanical breakdown,” according to the report, and have exceeded their 15-year recommended service life.
The council approved a contract with Pierce Manufacturing, of Wisconsin, for the two engines, which should be built and ready for use in about a year.
The Trump administration has implemented tariffs of 25 percent on steel and 10 percent on aluminum imported from outside North America, although it has issued several countries temporary exemptions to the tariffs.
While Pierce Manufacturing procures all aluminum and steel from North America and Europe, the tariffs have affected prices on all steel and aluminum, regardless of where it was produced, according to the staff report. Pierce plans to add a surcharge on all purchase orders placed on or after May 1.
The city would have faced a roughly $45,000 higher bill on the fire engines order if the purchase had not been moved up. The city will use reserve funds to purchase the engines.
The money will be paid back into the reserves at the beginning of the 2018-19 fiscal year, the report said.
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