Memorandum
City of Lawrence
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TO: |
Mayor and City Commissioners |
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FROM: |
City Manager David L. Corliss |
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Date: |
April 15, 2010 |
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RE: |
Fire/Medical Department Apparatus |
The 2008 infrastructure sales tax placed the Lawrence community on a more solid foundation for funding replacements and enhancements for our necessary equipment acquisitions in our Fire/Medical Department. As stated in the ballot language, proceeds from the sales tax would be used for, among other things: “purchasing fire apparatus and related fire equipment.” The City has been following a multi-year plan for the acquisition of apparatus to replace equipment which has reached the end of its useful life, with a plan to allocate $500,000 per year from the infrastructure sales toward these acquisitions. Both the multi-year plan and the City’s 2010 capital budget establish plans for the acquisition of a new 100 foot ladder and a new engine. The need and the recommended vendor are outlined in a memorandum prepared by Chief Bradford.
City staff is also pleased to inform the Commission that the University of Kansas Housing Department will – once again – assist the City is the purchase of a new ladder. Correspondence indicating KU’s commitment in this regard is attached.
The budget for this acquisition is as follows:
One (1) Engine 695,535
One (1) 100’ Ladder Platform 1,183,923
Total Resources needed: $1,879,458
2009 and 2010 sales tax proceeds: 1,000,000
University of Kansas Housing Dept. 50,000
2010 Bonds per 2010 capital plans 750,000
Equipment Reserve Funds 79,458*
Total Resources provided: $1,879,458
*The City’s equipment reserve fund currently includes approximately $96,000 in funds from previous sales of older fire equipment, etc.
As the Commission knows, staff is continuing to monitor sales tax proceeds. If 2010 sales tax proceeds continue to decline as expected (approximately 4-5% from budgeted amounts), additional resources for this acquisition will be funded from the equipment reserve fund to ensure that we do not reduce our street maintenance efforts funded from the infrastructure sales tax because we are fully funding this fire apparatus acquisition.
City staff recommends proceeding with this acquisition at this time to ensure that the quoted price does not increase. While the bond resolution requires a protest period before the issuance of the bonds, staff believes it is appropriate to execute the acquisition agreements with Pierce Manufacturing at this time to ensure that the prices do not increase. Additionally, the manufacturing time is approximately 11 months, so ordering sooner will provide for quicker delivery.
Recommended Action:
1) Approve purchase off the HGAC Cooperative Purchasing Contract and authorize the City Manager to execute agreements with Pierce Manufacturing, Inc. for the acquisition of:
One (1) Engine in the amount of $669,535; and
One (1) 100’ Ladder Platform in the amount of $1,183,923.
2) Adopt Resolution No. 6884, authorizing the issuance of $750,000 in general obligation bonds for the fire equipment acquisitions.
3) Acknowledge the contribution of the University of Kansas Housing Department for the acquisition of the ladder apparatus.