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4.b) Staff Report-Fire Engine �C? \ 1 ��s-r--.� l� +'� � ✓ SCANDIA StaffRevort Date of Meeting: March 12, 2013 To: City Council From: Kristina Handt, Administrator Re: Fire Engine Agenda Item#: 4.b) Background: Replacement of Engine 5180 has been scheduled for 2013 in the Capital Improvement Plan. Engine 5180 was acquired in 1988 and has an estimated useful life of 25 years. There has been some discussion on how the City's ISO rating may change if we do not replace Engine 5180. ISO collects information on municipal fire-protection efforts in communities throughout the United States. In each of those communities, ISO analyzes the relevant data using their Fire Suppression Rating Schedule(FSRS). They then assign a Public Protection Classification(PPC) from 1 to 10. Class 1 generally represents superior property fire protection, and Class 10 indicates that the area's fire-suppression program doesn't meet ISO's minimum criteria. In 2012,the City of Scandia was awarded a 7/10 Public Protection Classification rating from ISO. Class 7 applies to those properties within 5 miles of the fire station and Class 10 applies to those more than 5 miles away. ISO considers the following components in the FSRS: (1) Receiving and Handling of Fire Alarms-Ten percent of a community's overall score is based on how well the fire departrnent receives and dispatches fire alarms. (2) Fire Department (includes equipment,personnel and training)-Fifty percent of the overall score is based on the fire department. (3) Water Supply-Forty percent of the overall score is based on the community's water supply. This part of the survey focuses on whether the community has sufficient water supply for fire suppression beyond daily maximum consumption. ISO surveys all components of the water-supply system, including pumps, storage, and filtration. Given that Scandia does not have hydrants, Engine 5180 is important in meeting water supply needs at a fire since water has to be transported to the location. While the change in insurance premium will vary for each property based on its specific criteria, if the City's ISO rating drops it can impact not only the rate but the ability to get coverage. For example, fewer insurance companies will quote PPC 10's because the risk is higher. Also,the impact of a PPC 10 rating will be felt even more amongst the business community. Issue: Should Engine 5180 be replaced? If so, decide on specs and financing options. Proposal Details: Scandia Fire and Rescue has been working with Custom Fire to put together the specs for a new engine. A copy of the specs has been emailed out to you and therefore will not be reprinted, unless specifically requested. The public copy of the agenda materials will include a copy of the specs. The pricing sheet and options are included in your packet. Chief Finnegan and members of his staff will be at the work session to answer any questions you have about the specifications. It is important to remember that this engine is critical to providing water at fires and also serves as the second medical truck. Included in your packet is a list of maintenance items that need to be completed on Engine 5180 per Craig Kirvida. Given the age of the truck, the list is quite long. Fiscal Impact: Last year, the City Council approved an agreement with the HGAC Cooperative Purchasing Progam. HGAC has confirmed the pricing supplied by Custom Fire. The total cost is $344,952.98. T'he base price is $235,290 and options total $107,662.98. The 2013 budget approved having the new engine purchased using Equipment Replacement Funds. While the auditor is still completing their work of the 2012 financial statements,the estimated balance of the Equipment Replacement Fund at the end of 2012 is $221,280. An additional $100,000 is budgeted for 2013 meaning there would be$321,280 available for expenses in 2013. The Council will need to decide if the options can be reduced to lower the price or identify where additional $23,673 will come from (possibilities include unreserved fund balance, operating budgets, or capital improvement fund). Rather than paying cash for the fire engine,the Council should consider if it is better off borrowing funds given the historically low interest rates. An equipment certificate lasting ten years may be a better way to pay for an asset that will last 25 years. Interest rates on a 10 year note would range from 2.05%to 3.2%. Annual payments on a$345,000 loan would range from $35, 0000 to $43,000. The Council could consider a combination of the two options. Use some cash for the purchase this year and finance a smaller amount over 10 years. In a related matter, the City may be able to refinance some current bonds at a lower interest rate and thereby lower those payrnents beginning in 2014. The City could realize some additional savings by waiting to get the bonds for the fire engine until the current bonds could be refinanced. This could occur as early as September. Use of cash flow could allow the fire engine to be purchased earlier than September and cash would be replenished when the bonds are issued provided the Council adopted a reimbursing resolution. Options: (1) Direct staff to put the approval of the purchase of a new engine and related documents on a future agenda for a regular Council meeting. a) Cash purchase in 2013 from the Equipment Replacement Fund and Unreserved Fund Balance b) Equipment Certificate purchase (2) Continue discussion at a future meeting. Note it will take approximately 9 months or more depending on production schedules and demand to get the new engine after it has been ordered. (3) Do not approve the purchase of a new engine a) Fiac/maintain Engine 5180 b) Operate with only one engine in the fire department Recommendation: Option(1)b) combined with refunding of existing bonds. ��C✓. �:C, ,� �� U �J ^J.�� 1 �� U � � /� �,��---- `'„'"`�� � �.�� C.,s �� � � /'—�- ��� � ; , ���, S�_ �,..�. �;:: �'=-- �� � ��_� � ����. V . l� � `� ��'v� L�`,? � ,�,� � -�- - � 1'� ��`� � � � ' ' )� f� S-t-- I��� ��4,�� r �-Q-� � �� � : �.� S �1 Q--���. . I � r �-�- �' � ���� ,� � �-�� � ;; �- `'� ' �r.���2..� 1�.-..���r j �.�<-1-�c� o v� y�' � � �� (��r� `��_n ^ , ��j �•fi��.� �R.'�f�'- �,�..�'1� �r�h.Y'�: , `�')�s2�� ���\1'.i�X'� l � �' �-v,.-► Gr ����r ��nc I���� �'�f`� � F`(�S� ,_ n�.��l E:/ r✓�.��!.�� i�r '�`D'J� -� 9 P r" �-5���' �j✓ 1 �-��..� .�-- �����.�=�-.�� ����► f��:��- � ��s•� �'� � �,S�� �1 �- ::��,� �,�,e.�.�-U� 1��-1� � � � .� ...z. a 1 ����-. �=` •��:��e_._ e��.� v- �-__��- $�;.� � s ' . •.�.-. ��,�,�! I�y �1�� � �� ! ''�,,�,� ��n r ��5 S�`^^ t�'� �-��� ��."-� C��r�S � �zz.�- 11 � C � � L �C�sS�S I�'�.L���G.��T S"`v� � �"���LS�C'�� � � �`i �� �'•� � ��.� ��� �,4�.5� ��r�-��-�t- J-T_'u � �,t-:y, ) 1 ? , �� ` �j n �� �2�C°`��:� �-� ���s � i S C�1 ����,1"��� w�c..� � � +t �, LS �- ,r . �G` � �. . i j r'F�i ��Ir�"t�- �S � /� G�. SC�•.-.;�� Yi_1 �- I I � � ,,r L I l, �^ 1'si ::,�r� GFi r—'1��S �_a9�'�C���j ��•�'�. �Y� �1 r(1(/� ��'t ��!'` � {`;�1.c_1 (�-�`�- �,j'���'�,-. , �r��'� cs��, !�J ti7 J��C 1 � T /i �.% ��� CONTRACT PRICING WORKSHEET Contract € Date For MOTOR VEHICLES Only No.: Prepared: : B°y"'g �Scandia,MN Concraccor: :Custom Fire Apparatus,Inc. Agency: conrsM ;James Finnegan,Fire Chief P'�Pa�� `:Wayde Kirvida Person: By� Phone: :651-755-8675 Phone: c612-325-1366 Fax: :651-433-4383 FaX: E715-294-2168 Emea: �jim.finnegan@scandiafire.com Emaa: Ewayde@customfire.com �OM GCOl Description: ;Freightliner�2-door�CustomFIRE pumper,aluminum body,single axle,1500 GPM pump,side mounted Code: . . _ _ _ __ _ _ _ _ _ _ _ _._ . _ A.�rodacr�tem Base�7nit l�rtce per�Qntractor's H=GAC Contract: <; $ 235,290 �.Pubtished E3�ptiuns:-Itemize belaw. Attaeh additional sheet(s)if necessacy-Include�gtio�►Code in description:if applicable :' (�dote:;Publisi�ecl t7pf�ons are opticins which;were sulim�t#ed aiid pnced ia Contraetor's bid,) Description ; Cost Description ; Cost see published option list Subtotal From Additional Sheet(s): 72375 = e ; i a ;Y: � _.:' ;; ; ; , : , . � , i . ">.. i : Subtotal B:c 72375 C.�7�,�t�bGshec�Op#�ans �ieux�beib�v/.�ttae��ilditional st�ei(s):�f�keeess�r3� (�Tote:L�ngublished�pU�ns are�tems whicli were�ot submitted ariit priced in Contractor's bid) Description E Cost Description ` Cost see non published option list Subtotal From Additional Sheet(s): 35287.98 Subtotal C: ; 35287.98 Check:Total cost of Unpublished Options(C)cannot exceed 25%of the total of the Base Unit� For t6is transaction the percentage is: 11% Price plus Published Options(A+B). D.TA�sI Cost Betore Any r�pplica6le Trade-Tn/:�Ither Allowanees:!Disca�ii�ts{�#-3�B+C) ` ` Quantity Ordered: 1 X Subtotal of A+B+C: 342952.98 = Subtotal D: E 342952.98 .H-GAC�rder Processing.Ctiarg�(Amou�E Per�urreiif Policy}: Subtotal E: E 2000 .Traile-Ins 1 Uther Allowances:J�p�ecial biscaunts IFreig�t J Installatioa' Description Cost Description Cost Subtotal F: E ': ; Del�v�ry Daite.;; ���'4t�1 Purchase Pr�ce�I.3+��F)' 344952.98 v'� M oo M �D O M �O � O� �O oo O o0 � l� O� O O� [� O oo I� O N � o0 00 �O N O� � �O t� O �O � �n �O O� O �O M t� M v') �n l� oo ,--�, v'� M O� [� � oo l� O� � �O O� O t� � I� N N M � � � �t'� �/'> �O �O l� [� 00 00 00 � .-+ N � v� �D l^ O� O� � �O l� O �+ � �O O .--� ,� �+ �--� N N M M � � � � �ri 69 69 EA 69 69 69 69 6R 59 69 b4 E�9 69 b9 64 69 69 69 64 69 d3 69 69 69 69 H9 69 6R 69 HA b4 69 69 .--� .--i .--i .--� .-+ .-r .--� .-� .--i �O N 'd' �--� ,--� .--� .-a � N �--� �--� �O N �--� N �O � N r, rr .-. � �n M oo M �O O M �O �t O� �O oo v� O� �O l� O� O O� l� v'� oo l� O � v� � oo d� �--� O� �O ^� t� O �O � �n �D O� O �O M [� M N N t� 00 r-+ v1 M O� l� M .�d. � M �O O O � � O � � N N M �' � � v� V� �O �O l� �-+ �t N o0 O� .--� N d^ l� �O [� M � � ,_; •-i •--� ,--� •-+ '-' N �--� N � ct v) � a ~ � f» bs �» f» �» E» vy ds s9 �, �, v� dsvy � sgbsdss9f» ds �» bsE» � E» ds � sr� �» E» f» F» b � � � � � b � b � � � � � � � � o a� � � � � w � � `i' a � � �i �� � � � � b � � � � � � .c � ° z ci y � 'm ._. 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