9.b) Staff Report-Tanker 5177
Staff Report
Date of Meeting: May 19, 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 May work session the Chief presented a quote and bid specs for a new tanker from Custom Fire.
Issue:
Should the City Approve the bid from CustomFIRE for a new tanker to replace Tanker 5177?
Proposal Details/Discussion:
A resolution approving the purchase through HGAC (a cooperative purchasing program) is included in
your packet. The contract pricing sheet is also include. The final cost will be $214,938.
Fiscal Impact:
The Equipment Replacement Fund currently has a balance of $450,000. Funds to replace the tanker could
come from this source.
Alternatively, the Council may consider issuing an equipment certificate (borrowing) for this large
purchase. We will have two equipment certificates paid off in 2016 opening about $75,000 of levy in the
debt service fund. If the Council approves the prepayment of the 2007 Road bond in September (like we
did for the fire hall a couple years ago) with the use of fund balance, there would still be about $35,000 in
fund balance as well as about $20,000 in special assessments that could be applied to a new equipment
certificate in 2016.
Options (Assumes use of Equipment Replacement Fund):
1) Approve Resolution 05-19-15-03
2) Amend and then Approve 05-19-15-03
3) Do not take any action on the tanker
Recommendation:
Option 1.