HomeMy WebLinkAbout8A, Replacement of Ladder Truck
~
~HILLS
Request for Council Action
Prepared By: Ron Moorse
Council Meeting Date: July 14, 2008
Replacement of ladder Truck for the lake Johanna Fire Department
Budgeted Amount:
$203,000 (2010)
Actual Amount:
$169,953
Funding Source:
Fire Equipment Capital Account
Recommendation:
Motion to approve the replacement of a ladder truck for the Lake Johanna Fire Department at a cost to
Arden Hifls of $169,953, to be paid over a three year period in 2009, 2010, and 2011.
Supporting Documents:
1. Memo from Ron Moorse regarding.the ladder truck replacement
2. Email between Council member McClung and Chief Boehlke
3. LJFD Truck Replacement Summary
4. LJFD Station Capital Budget
5. Memo from Chief Boehlke dated June 2, 2008
~
~~HILLS
MEMORANDUM
DATE:
July 10, 2008
Mayor and City Council
Ron Moorse, City Administrator If Id;
SUBJECT: Approval of the Replacement of a Ladder Truck for the Lake Johanna Fire
Department
TO:
FROM:
BACKGROUND
At the June 16, 2008, Council work session, Lake Johanna Fire Chief Tim Boehlke presented
information regarding the proposed purchase of a demonstrator ladder truck to replace an
existing 50 foot telesquirt ladder truck scheduled for replacement in 2010. The Council
indicated support for the purchase, and directed staff to bring the proposal forward to a regular
Council meeting for formal approval with a recommended funding plan.
Subsequent to the work session, Council member McClung requested additional information
from Chief Boehlke. The questions from Council member McClung, and the answers from
Chief Boehlke, are attached. Also attached are the LJFD Station Capital Budget, and the LJFD
Truck Replacement Summary. The original memo from Chief Boehlke regarding the ladder
truck is also attached.
FUNDING PLAN
The funding plan preferred by both Shoreview and North Oaks is a three year funding plan with
no down payment. This plan does not require unbudgeted expenditures in 2008, and enables the
three annual payments to be budgeted in 2009, 2010, and 2011.
COUNCIL ACTION REQUESTED
Motion to approve the replacement of a ladder truck for the Lake Johanna Fire Department at a
cost to Arden Hills of$169,953, to be paid over a three year period in 2009, 2010, and 2011.
Email between Council member McClung and Fire Chief Tim Boehlke
TB: I know that one of the points the Arden Hills Council brought up was that they
would like to see the proceeds from the sale of the old Ladder 3 go back to all three cities
to offset the capital expenditure. I didn't really think about it at the time but Ladder 3
was purchased by the City of Shoreview and not all three cities. I think the current plan
of taking the proceeds from the sale of the old ladder and sending that money back into
the fire departments General Fund might be the better option. especially since the General
fund helped pay for many different things such as: Duty Crew program, part of the Fire
Chiefs salary, the Fire Marshal's salary, and about $100,000 worth of Fire Run and Drill
Compensation in 2007.
TB: It sounds like the financing plan that was presented to all three cities is really the best
option since Shoreview doesn't have money available this year to be put towards a down
payment. I think the City Managers have recently discussed this.
DM: First, somewhere in my files, and I can't find it right at the moment, I have a
document that you provided, either to the joint 3 city council meeting or at aBOD
meeting regarding the apparatus replacement schedule. As I remember, in that policy,
ladder apparatus were to be replaced every 25 years, pumpers every 20, grass/utility
pickups every 15 years and chief vehicles every 7 years. Could you please find that and
get a copy to me?
TB: I have attached a copy of the truck replacement schedule.
DM: Second, I assume that since if the cities purchase a vehicle with a ladder it will be
considered for purposes of replacement a ladder. It will be fully credited on the ISO
ratings as a ladder truck and 12 of an Engine company. I would like clarification on what
your intention is for replacement of this rig, should the cities purchase it for the
department. Will it be replaced 20 years from now or 25 years from now?
TB: Those are the two options under your current capital replacement schedule. The
replacement aerial for L-3 will meet or exceed the old L-3 as far as ISO credit; it likely
will not get full credit for a ladder since it won't carry some of the ground ladders that a
full blown ladder truck carries. We also will lose credit for not having "ladder service
companies" with the sale of unit 765 and 761 (old E-3), but we have gained a lot of
points for a much improved training program, Auto aid agreements, and our Duty Crew
staffing program. I am not real worried about ISO at this point in time. The Demo aerial
will be put in the capital equipment replacement schedule to be replaced in 25 years, or
the year 2033.
DM: Third, can you please provide me with a revised copy of the capital replacement
schedule for apparatus so I can see where items fit into that schedule assuming the sale of
Ladder 3 this year and the purchasing of the General demo ladder truck? I would like to
see year ofprojected replacement and your anticipated cost of replacement (using the
current assumptions you use to forecast out-ear purchase, although it would be nice to
have a notation as to how you calculate this budget placeholder) through the replacement
of Ladder 4 and the new demo truck, whether it be 20 or 25 years based on the
departments current policy which I referenced above.
TB: I have attached a copy of the current capital budget, if this truck is purchased this
year, I will make the necessary changes in the capital budget at that time. Again, this
truck would be put in the schedule for replacement in 2033.
DM: Fourth, how many miles have been placed on Engine 4 so far to date this year, last
year, and each of the two previous years, per year?
TB: In 2006 Engine 4 logged 5650 miles; in 2007 it logged about 5336 miles.
DM: Fifth, could you please clarify your comment from last nights meeting that ifit
wasn't for ISO requirements you would recommend the sale of Ladder 4 and purchase a
pumper to replace it?
TB: I am not sure what you want clarified, I think that Ladder 4, and Tanker 2 are single
mission trucks, they are not multi mission vehicles by their design and function. I fully
understand their limited uses, and why we have them in our fleet. I also understand the
impact of ISO with and without this equipment, and as long as ISO is around we will
need to have two aerial devices, but not necessarily a 100' platform.
DM: Sixth, you mentioned last night that if the cities purchase the General demo ladder
truck and in passing to me in the past that you have a plan to redeploy apparatus. Could
you please identify what changes you are contemplating and the reasons for the changes?
In essence, what truck will end up where and why of the demo truck is purchased?
TB: The final decision has not been made at this point, I will be glad to share that with
you and the Board once I have decided what trucks move, and when they will. move. The
reason for the changes is simple, the trucks will move as needed to best serve our
department and the communities we serve.
DM: Seventh, Ralph mentioned last night that with this rig and going forward that any
new truck would probably be placed at Station 4 where the daytime duty crew was
located for warranty issues. Is that your intention as the chief? Did you do this with the
purchase earlier this year with Engine 3? If, no, why not
TB: Ralph is my Deputy Chief, and one of his responsibilities is Operations. He has the
authority to make decisions regarding the repair and maintenance of our fleet and where
trucks need to move in order to best protect our area, obviously we discuss many of these
things in advance, but I have complete faith in Ralph as our Operations Chief. Ralph and
I have the same vision for the future; our fleet will need to rotate in order to make the
best use of warranty periods, balance the actual truck usage, and maintaining our
operational goals. This demo aerial will initially be at station 4, and at some point down
the road, it may move to another station depending on what our staffing plan is at the
time. Does that mean all new trucks will go to station 4? No, but some of them will.
We will make those decisions when the time comes.
As for the placement of the new Engine 3, there was much thought put into where this
truck would be located, and station 3 is where we felt it would best serve our department
and the communities.
DM: Thanks again for your presentation last night and working on providing me
answers to these questions prior to it returning to the three city councils for action.
TB: As far as I know Shoreview and North Oaks City Councils gave approval for the
department to proceed with the purchase of the demo truck and no further council action
would need to take place. Ifwe purchase this truck then the 2009 Capital budget would
be changed to show the multiple year payment required for the purchase of the demo
ladder, and that would need to be approved by all cities in December 2008.
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TO: CITY COUNCILS AND BOARD OF DIRECTORS
FROM: TIM BOEHLKE, FIRE CHIEF
TERRY SCHWERM, CITY MANAGER
DATE: JUNE 2, 2008
SUBJECT: REPLACEMENT OF LADDER TRUCK
INTRODUCTION
The Lake Johanna Fire Department's adopted Capital Improvement Program anticipates
the replacement of the 50-foot telesquirt ladder truck in 2010. The Department currently
has an opportunity to acquire a demonstration ladder truck that would meet the
Department's needs. The acquisition of this major piece of apparatus now could save the
three cities a significant amount of money and the Department is seeking authorization to
proceed with this planned purchase at this time.
BACKGROUND
The current 50-foot telesquirt ladder truck is one of the most versatile pieces of
equipment that the Department uses in fighting fires. The primary reason this unit is used
so heavily is that in addition to the 50-foot ladder, it also has elevated master stream
capability (ability to pump heavy volumes of water at higher elevations). This is
particularly useful in fighting residential fires.
After the recent acquisition of the new Engine 3, a representative from General Safety
indicated that they have a demonstration ladder truck available with an asking price of
$565,000. The current cost in the Capital Improvement Program for replacing the
telesquirt ladder truck is $675,000. According to representatives from General Safety,
the cost of this equipment is expected to increase between $30,000-$40,000 in the next
two years due to additional safety requirements from the National Fire Protection
Association and new emission standards from the Environmental Protection Agency.
Therefore, it is now anticipated that the cost of the ladder truck will be at least $725,000
by 2010.
In reviewing the needs of the Department, the Chief and other department officers
determined the new ladder truck needs to operate similar to a front line fire engine.
Ideally, the Department would like a new truck to carry the same equipment as an engine,
carry a significant amount of water, and have the elevated master stream capability. They
would like the truck to have a box boom design, which allows for these capabilities. As a
result of this design, the Department is able to access a residential roof or use the aerial
master stream to efficiently deliver water to a fire.
The Lake Johanna Fire Department already has a large 100-foot aerial platform truck.
These more traditional aerial trucks are typically more expensive than the type of ladder
truck the Department is scheduled to replace in 2010.
The Department has researched whether there are other similar demonstration trucks
available. Based on this research, it was discovered that there are several standard aerial
demonstration trucks that are available from manufacturers such as Pierce, American
LaFrance, and Rosenbauer (General Safety). However, the only demonstration ladder
truck that is available with the box boom design is the unit that is being considered from
General Safety.
At the last Fire Board of Directors meeting, Board member McClung indicated that a
similar 68-foot truck manufactured by Rosenbauer had sold recently for about $515,000
to a Fenton, Missouri department. In researching this truck, the Department learned that
the Fenton, MO ladder truck was made by Central States, which uses a 1/8 inch formed
aluminum body, which has a five-year warranty. General Safety, located in Wyoming,
Minnesota built the demonstration truck and they use a ~ inch extruded aluminum body,
which has a 20-year warranty. In addition, the demonstration truck includes a larger
water tank, electric valves, foam system, various camera monitors, rescue winch, and
several other features that were not included in the Fenton, MO ladder truck. These
additional features, combined with the sturdier body construction, account for the
increased cost of the demonstration unit.
General Safety was initially asking $565,000 for the demonstration unit. General Safety
also provided several financing options for the cities anticipating a $565,000 purchase
price. In reviewing these options, we selected the three-year payment option at a 3.45%
interest rate since it did not have a down payment, pays off the truck before the Fire
Department's next large equipment purchase, and maximizes the savings to the three
cities. Based on this option and a total cost of$565,000, there would be a total savings of
about $118,000 (assuming a $725,000 acquisition cost in 2010) if the demonstration truck
is purchased. This is based on the current cost breakdown of 58.5% for Shoreview, 28%
for Arden Hills, and 13.5% for North Oaks. Shoreview would save about $70,000, Arden
Hills about $33,000 and North Oaks nearly $16,000. Although it would require a
payment in 2009, which is currently not anticipated, the proposed financing does spread
the payments over the next three years, rather than one large payment in 2010.
Several of the members of the Lake Johanna Fire Department had an opportunity to use
the demonstration truck. Based on their review, they concluded that the 68-foot ladder
truck would meet the Department's needs. However, they did identify a number of
modifications that would be necessary for the ladder unit to be more functional for the
Lake Johanna Department. In pricing out these modifications with representatives from
General Safety, it was estimated that the value of the changes was approximately
$40,000.
After receiving this estimate, the Chief further negotiated the purchase price of the truck,
including the required changes, with representatives from General Safety. Through this
negotiation, a $580,000 total purchase price was agreed upon. This price includes the
cost of the vehicle and the necessary modifications identified by the Department staff. It
is suggested that the $15,000 increase above the original $565,000 cost be paid from the
Department's. general fund.
If this 68-foot ladder truck is purchased, it will likely be located at Station No.4 on
Victoria Street and County Road E. This is the station that the duty crew operates from
and they respond to all the weekday calls (40% of the total calls). Station No.4 responds
to roughly 58% of all the fire calls. Since this ladder truck is designed to functio-n like an
engine, but has the elevated master stream capability, the Department wanted to ensure
that this vehicle would be responding to the maximum number of calls. The fire
department would then likely move some of the existing fire trucks to other stations.
Based on the substantial cost savings that can be achieved through purchasing a
demonstration truck, we believe the Board and cities should consider the acquisition of
this 68- foot ladder truck at the present time.