CCP 09-18-2006 - Laserfiche WebLink

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TO: BOARD OF DIRECTORS LAKE JOHANNA FIRE DEPARTMENT . FROM: TERRY SCHWERM, CITY MANAGER CITY OF SHOREVIEW DATE: JUNE 13,2006 SUBJECT: FINANCING OF ST A nON 1 ENGINE PURCHASE At its meeting on November 17, 2004, the Board authorized the sale of a command vehicle (Squad 1) for between $60,000-$70,000 to assist in the fInancing of the pnrchase of a used engine for Station L At its January 19, 2005 meeting, the Board approved the purchase of a used engine at a cost up to $170,000. As pm of this approval, it was noted that the used engine would be financed through the sale of Squad 1 and reimbnrsement from cities. According to the minutes from the meeting, the reimbursement from the cities for this purchase was delayed until the cities worked out a cost sharing arrangement [or capital purchases. Attached is a copy of a July 2004 memo that outlines major capital purchases that have occurred within the Department. The memo divides the capital purchases into buildings and fire apparatus. There was general agrecment that building and equipment costs should be handled separately. Since each City has historically paid for construction and improvement to stations in their community, the consensus of the Board was that this practice should continue. . At that time, there was consensus that equipment purchases should be split based on the new distribution formula, except for specialized equipment (ladder truck for Shoreview/Arden Hills; tanker truck for North Oaks). However, as outlined in the attached memo, the City of Shoreview has spent significantly more than the previously arranged cost allocation fOlmula as of 2004. It was generally recognized that there should be some level of "catch up" as part of the implementation of the new capital cost allocation formula. At its meeting on May 31,2006, the Board indicated that the "catch up" should be calculated using all equipment purchased rather than excluding the specialized equipment. The Board asked that the expenditures be updated and formula recalculated. Since the 2004 memo, the only major pieces of equipment purchased were a utility vehicle in 2005 that Shoreview paid the entire cost and a Chief's vehicle in 2004 that was split between the cities. .