|
<br />The Lake Johanna Fire Department already has a large 100-foot aerial platform truck.
<br />These more traditional aerial trucks are typically more expensive than the type of ladder
<br />truck the Department is scheduled to replace in 2010.
<br />
<br />The Department has researched whether there are other similar demonstration trucks
<br />available. Based on this research, it was discovered that there are several standard aerial
<br />demonstration trucks that are available from manufacturers such as Pierce, American
<br />LaFrance, and Rosenbauer (General Safety). However, the only demonstration ladder
<br />truck that is available with the box boom design is the unit that is being considered from
<br />General Safety.
<br />
<br />At the last Fire Board of Directors meeting, Board member McClung indicated that a
<br />similar 68-foot truck manufactured by Rosenbauer had sold recently for about $515,000
<br />to a Fenton, Missouri department. In researching this truck, the Department learned that
<br />the Fenton, MO ladder truck was made by Central States, which uses a 1/8 inch formed
<br />aluminum body, which has a five-year warranty. General Safety, located in Wyoming,
<br />Minnesota built the demonstration truck and they use a ~ inch extruded aluminum body,
<br />which has a 20-year warranty. In addition, the demonstration truck includes a larger
<br />water tank, electric valves, foam system, various camera monitors, rescue winch, and
<br />several other features that were not included in the Fenton, MO ladder truck. These
<br />additional features, combined with the sturdier body construction, account for the
<br />increased cost of the demonstration unit.
<br />
<br />General Safety was initially asking $565,000 for the demonstration unit. General Safety
<br />also provided several financing options for the cities anticipating a $565,000 purchase
<br />price. In reviewing these options, we selected the three-year payment option at a 3.45%
<br />interest rate since it did not have a down payment, pays off the truck before the Fire
<br />Department's next large equipment purchase, and maximizes the savings to the three
<br />cities. Based on this option and a total cost of$565,000, there would be a total savings of
<br />about $118,000 (assuming a $725,000 acquisition cost in 2010) if the demonstration truck
<br />is purchased. This is based on the current cost breakdown of 58.5% for Shoreview, 28%
<br />for Arden Hills, and 13.5% for North Oaks. Shoreview would save about $70,000, Arden
<br />Hills about $33,000 and North Oaks nearly $16,000. Although it would require a
<br />payment in 2009, which is currently not anticipated, the proposed financing does spread
<br />the payments over the next three years, rather than one large payment in 2010.
<br />
<br />Several of the members of the Lake Johanna Fire Department had an opportunity to use
<br />the demonstration truck. Based on their review, they concluded that the 68-foot ladder
<br />truck would meet the Department's needs. However, they did identify a number of
<br />modifications that would be necessary for the ladder unit to be more functional for the
<br />Lake Johanna Department. In pricing out these modifications with representatives from
<br />General Safety, it was estimated that the value of the changes was approximately
<br />$40,000.
<br />
<br />After receiving this estimate, the Chief further negotiated the purchase price of the truck,
<br />including the required changes, with representatives from General Safety. Through this
<br />
|