Memorandum

Memorandum

City of Lawrence

Fire Medical

TO:	David Corliss, City Manager
FROM:	Mark Bradford, Fire Chief
CC:	Diane Stoddard, Assistant City Manager Cynthia Wagner, Assistant City Manager Steve Stewart, Central Garage Superintendent Bill Stark, Division Chief
Date:	November 7, 2011
RE:	2011 Engine Purchase – Equipment Replacement

Program Introduction and History

In 2006, the Fire Medical (FM) Department began a review of its fire apparatus fleet. The efforts of city staff culminated in a comprehensive vehicle study that included a survey of all primary and secondary fire apparatus, an overview of the organizational and city commission goals and service demands of FM, a comparative analysis of the fire apparatus replacement programs in other jurisdictions, and a proposed apparatus replacement schedule.

The departments’ vehicle replace program outlines the order of vehicle replacement based on the overall replacement score as determined by the Public Works Vehicle Maintenance department and operational efficiency.

Operational Efficiency

The vehicle study anticipated replacement of a quint and Hazmat unit in 2011. The department has reviewed operational and response capabilities and existing apparatus and determined that it is not necessary continue supporting two separate pieces of apparatus to accomplish the missions of the department. Replacement of these two units with a fire engine is recommended at this time. This change will improve operational efficiency by combing two vehicle capabilities into one. The combination of a fire apparatus and the hazardous materials (hazmat) vehicle will provide greater daily operational efficiency without the need for additional staff required for 95% of haz mat related incidents. The change from a quint (fire engine with a 75’ ladder) to an engine will not drastically reduce our overall response capabilities. And has no impact on our ISO community rating.

This is the second year that department has evaluated existing apparatus and has determined that greater efficiency can be achieved by combining apparatus capabilities. This previously was achieved by replacing an engine and 100’ ladder with a 100’ ladder platform. Overall reduction of the Fire Medical fleet by two vehicles is the result of this ongoing review.

Program Details

2011 Vehicle Replacement Request:

– Engine – Request will replace a 1994 Smeal Quint (Unit 615) with an overall replacement score of 53.7. Mileage of 67,825 and Engine Hours of 10,139.

– Hazmat Unit – Request will eliminate from the fleet a 1996 International/Hackney Hazardous Materials Unit (Unit 636) with an overall replacement score of 25.0. Mileage of 10,771 and Engine Hours of 1,228.

Note: Overall Replacement Score – This is the score obtained by Public Works Central Vehicle Maintenance utilizing the replacement program worksheet which is used on all city vehicles. Any score equal to or greater than 30 points indicates immediate replacement is necessary.

Program Funding

The 2008 multi-year sales tax program currently projects $250,000 in 2012 for fire equipment replacement. The vehicle replacement plan anticipated that total equipment replacement costs would be greater than sales tax proceeds, which would require additional funding sources. A 100 foot platform and an engine were both purchased in 2009 utilizing the sales tax and HCAC pricing.

In addition, the vehicle reserve account is funded by sale of old fire apparatus and equipment which generates modest amounts of funding which has historically been earmarked for fire apparatus replacement. $74,000 would be available to be used to reduce the overall funding request (sale of recent equipment and apparatus and trade-in).

Ed Mullins, Finance Director, has conducted a financing analysis to determine the best method of securing additional funds required for apparatus purchases. They included purchase/cash, purchase/GO Bond debt, lease, or lease/purchase of the equipment. The cost analysis indicates that 12-year debt issuance as the best option to meet the designated useful life expectancy. Historically, the city has used cash, cash with GO Bond issuance or full GO Bond issuance for purchasing.

“Pre-paying” the purchase of this vehicle would result in a savings of $46,529. This savings are a due to the apparatus manufacturer paying for the major components (chassis and body) as they are constructed. Ed Mullins has evaluated the prepay option and recommends the financial benefit of prepaying.

Action Request

Utilizing the Houston-Galveston Area Council contract administered by MARC, the pricing for this vehicle is quoted at $894,496. With a pre-pay option, that cost is reduced to $847,967. The City has previously utilized the pre-pay option in order to realize savings and has requested a performance bond, which has been reviewed and approved by the Legal Department, ensuring that the purchased vehicle is delivered as specified.

Staff recommends of

· Utilization of the Houston-Galveston Area Council contract administered by MARC for pricing quotes;

· Purchase:

o One (1) Velocity PUC Engine from Pierce Manufacturing in the amount of $847,967.

· Adopt a Resolution providing for acquisition of fire equipment and for providing for the issuance of General Obligation Bonds of the City to pay the cost of such equipment in the amount of $347,967.