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5. Staff Report-Tanker 5177SCANDIA Staff Report Date of Meeting: May 6, 2015 To: City Council From: Kristina Handt, Administrator Re: Tanker 5177 Background: The replacement of Tanker 5177 has been in the Capital Improvement Plan for a number of years and is scheduled to be replaced in 2015. This tanker was acquired by the township in 1992. Previously the Council asked the Fire Chief to look into just replacing/repairing the worn out parts. The Fire Chief got an estimate of $150,000-180,000 to repair the existing tanker. There is such a wide estimate because it is unknown until they start digging into it how much time and labor is needed. At the April work session the Council asked the Chief to get a bid for a new truck so they would have more exact numbers to base their decision on. Issue: Should Tanker 5177 be replaced in part or whole? Proposal Details/Discussion: The bid specs and quote obtained by the Fire Chief are included in your packet. The quote for anew tanker is $213,000. Fiscal Impact: The Equipment Replacement Fund currently has a balance of $450,000. Funds to replace the tanker could come from this source. Options: 1) Direct staff to prepare a resolution for the purchase of a new tanker 2) Direct staff to place the repair of the tanker on the next agenda for approval 3) Do not take any action on the tanker Recommendation: Option 1.Given the uncertainty of costs associated with repair and update and that it could be as much as 85% of the cost of a new tanker, staff recommends purchasing a new tanker and selling the current one to help offset costs.