4.1. SR 06-04-2001River
Item ~ 4.1.
MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Bruce A. West, Fire Chief~~/~//'~----~~
June 4, 2001
SUBJECT: Fire Department Pumper Purchase
On behalf of the Elk River Fire Department I would like to thank our truck committee for its
dedication and perseverance with this new pumper purchase project. I would like to present
to you the findings and conclusions in reference to the new fire department pumper as
proposed by the fire department truck committee. The truck committee members are Rick
Morrell, Phil Collins, Terry Elliott, Cliff Anderson, Rob Dreissig, Cory Altman and Mike
Trunnell. On May 21, 2001 at 2:00 p.m. at Elk River City Hall two bids were received and
opened and the results were as follows:
Pierce Manufacturing: $249,975.00
Luverne Fire Apparatus: $251,037.00
The fire department truck committee has reviewed the two bids received to ensure adherence
to the published truck specifications. The truck committee compared the bid proposals
versus the published specifications page by page for any irregularities. After completion of the
bid review process, the fire department truck committee voted unanimously to recommend
acceptance of the Pierce Manufacturing proposal.
The City of Elk River advertised for bids for the pumper fire apparatus for 30 days and bid
specifications were requested by four truck manufacturers of which include Luverne Fire
Apparatus, Tom Conway Fire Apparatus, General Safety Corporation and Pierce
Manufacturing. The truck committee's recommendation is based upon many hours of
analysis and comparison of specifications of the products proposed. Both bid proposals meet
all federal safety standards, NFPA requirements, noise level requirements and standards
mandated by OSHA.
The Elk River Fire Department Truck Committee has successfully completed a d/fficult
project with the many meetings, preparation of bid specifications, review of pumper frre
apparatus proposals and finally recommendation for the purchase of a new fire department
pumper. The truck committee members are very excited and pleased with the proposed fire
department pumper as to the value and benefits of this purchase for the Elk River Fire
Department. Items such as hydraulic generator, larger crew cab, additional cabinet space,
turning radius, body manufacturing process and crew cab design are just some of the items the
truck committee based their unanimous recommendation upon.
I have discussed the entire bid process and proposals with Finance Director Lori Johnson as
well as the possible funding options. Lori Johnson has included a memo in reference to the
financing of the ne~v fire department pumper apparatus. Please review Lori's memo in
regards to financing and financing options.
Action requested
On behalf of the Elk River Fire Department and its truck committee, I am requesting Council
approval for the Pierce Manufacturing pumper f~re apparatus proposal for $249,975.00.
The approximate delivery date of the new pumper fire apparatus will be 180-210 days. I will
be present at the June 4, 2001 Council meeting to answer any questions the Mayor and City
Council may have in reference to the above issue.
MEMORANDUM
Item 4. I.
TO:
Mayor and City Council
FROM:
Lori Johnson, Finance Director
DATE: June 4, 2001
SUBJECT: Authorization to Purchase Fire Pumper Apparatus
The Fire Department is requesting authorization to purchase a pumper from Pierce
Manufacturing, Inc. for the bid price of $249,975.00. There are several ways to finance this
purchase including financing options offered by the manufacturer and the issuance of
equipment certificates. There are several advantages to using equipment certificates to
finance this purchase. First, the interest rate is approximately two percent lower than the
manufacturer's rate. Second, even though current plans are to repay the equipment
certificate through transfers from the Capital Outlay Reserve fund, a tax could be levied to
fund the debt, if needed. Issuance of equipment certificates is consistent with the 2001
budget including repayment of the certificates through the Capital Outlay Reserve fund. The
resolution authorizing the issuance of equipment certificates for this purchase will be
presented to the Council for consideration at a future meeting.
As I mentioned during the audit presentation, the 1989 Fire Equipment Bonds issued to
finance the aerial ladder truck were paid offin February and $46,128.31 remains in that fund
available for use as the Council sees fit. The Council may want to consider applying these
funds to the purchase of the pumper to reduce the amount financed through equipment
certificates.
Finally, the Pierce offers a discount for prepaying the chassis. This prepayment will be made
resulting in a savings of $3,793.00
Action Requested
The City Council is asked to consider whether the 1989 Fire Equipment Bond Fund Balance
should be applied to this pumper purchase.
BALANCE SHEET
Date: 05/30/01
Time: 9:17am
CITY OF ELK RIVER Page: 1
As of: 05/30/01 Balance
F 'ype: DS DEBT SERVICE
F~.,~: 341 1989 FIRE EQUIP BONDS
Assets
CURRENT ASSETS
1010 Cash
1012 Fair Value-investments
1380 Interest Receivable
CURRENT ASSETS
44,463.31
755.00
910.00
46,128.31
Total Assets
46,128.31
Reserves/Balances
FUND EQUITY
2400 Fund Balance
2600 Change In Fund Balance
FUND EQUITY
112,488.26
-66,359.95
46,128.31
Total Reserves/Balances
46,128.31
Total Liabilities & Balances
46,128.31