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HomeMy WebLinkAboutItem 11 Apparatus Replacement Plan AGENDA ITEM SUMMARY Meeting Date: 10/16/2023 Meeting Type: Regular Meeting Staff Contact/Dept.: Chief Mike Caven/Eugene Springfield Fire Staff Phone No: 541-682-7115 Estimated Time: 10 minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: APPARATUS REPLACEMENT PLAN ACTION REQUESTED: Authorize the City Manager to sign for ordering three replacement Fire apparatus. ISSUE STATEMENT: Three fire apparatus are due for replacement in the next three fiscal years. ATTACHMENTS: 1: Fund 713 Vehicle & Equipment Replacement Purchase Options DISCUSSION/ FINANCIAL IMPACT: Three Eugene Springfield Fire apparatus will reach the end of their life cycle within the next three fiscal years and need replacement. In the past, ESF has purchased apparatus by saving equipment replacement funds over multiple fiscal years. With the impact of inflation, delivery timelines, and number of vehicles up for replacement, combined with the short-term and long-term health of Fund 713, a new option needed to be explored. The current delivery window for fire apparatus is 3.4 to 4 years. All three apparatus requested are scheduled for replacement within the delivery window. The selected vendor anticipates up to 2% quarterly price increases until the delivery backlog eases if the purchase is delayed. Apparatus being purchased: “Tower 3” is a 100’ heavy duty aerial platform. As needs and funding have changed, expanding the capability of this apparatus with additional features is important for limiting the community’s fire risk. This $1.82M prepayment purchase will take place in FY24. “Engine 5” is a 2010 pumper that will be replaced with a 107’ medium duty ladder. In 2016, funding constraints prevented former Ladder 14’s replacement and a pumper was ordered instead. As Springfield plans development of the Glenwood area and high-rise buildings in the city’s core, returning a ladder to the Springfield battalion will be an important tool for response reliability. This $209,000 lease payment will take place in FY25 through FY35. “Engine 16” is a 2010 pumper that will be replaced with the current Metro specification in line with most recently purchased pumper in service at Station 14. This $1.1M pay upon delivery purchase will take place in FY27. ESF and the COS Budget Team recommend a combination of prepayment, pay upon delivery, and leasing to acquire the three apparatus to preserve the health of Fund 713. This multi-purchase option is designed to maximize discount incentives. With this option the 10-year forecast remains healthy until 2033 when it shows a negative balance. This negative balance is anticipated to be mitigated by selling the ladder that is being replaced and returning those dollars to the fund balance. This is not included in the forecast due to the variables with the resale market, but indications project the fund could recoup up to $500k. Fund 713 Vehicle & Equipment Replacement (F100) - Lease Purchase City of Springfield 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Reserve Account Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Resources Beginning Balance 2,421,530$ 2,238,673$ 791,797$ 951,794$ 1,240,160$ 474,420$ 929,540$ 1,408,211$ 1,835,005$ 2,373,890$ 398,510$ IT Contributions 930070 48,696$ 16,641$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ Vehicle & Equipment Contribution 930075 522,730$ 550,000$ 700,000$ 700,000$ 700,000$ 800,000$ 825,000$ 837,000$ 837,000$ 837,000$ 837,000$ Interest 20,288$ 27,983$ 9,897$ 11,898$ 15,502$ 5,931$ 11,620$ 17,602$ 22,938$ 29,674$ 4,981$ Subtotal - Annual Resources:591,714$ 594,624$ 719,897$ 721,898$ 725,502$ 815,931$ 846,620$ 864,602$ 869,938$ 876,674$ 851,981$ Requirements Fire Suppression Apparatus 930075 (707,528)$ (1,820,000)$ (209,200)$ (209,200)$ (1,309,200)$ (209,200)$ (209,200)$ (209,200)$ (209,200)$ (1,961,670)$ (982,199)$ Radio 930075 (383,148)$ SCBA 930075 (773,099)$ Turnouts 930075 (17,500)$ (55,000)$ (85,000)$ (85,000)$ (95,613)$ (99,438)$ (103,415)$ (107,552)$ (111,854)$ (109,486)$ (106,748)$ Boat 930075 (74,763)$ Subtotal - Annual Requirements:(774,571)$ (2,041,500)$ (559,900)$ (433,532)$ (1,491,242)$ (360,811)$ (367,949)$ (437,808)$ (331,053)$ (2,852,054)$ (1,540,373)$ Ending Balance 2,238,673$ 791,797$ 951,794$ 1,240,160$ 474,420$ 929,540$ 1,408,211$ 1,835,005$ 2,373,890$ 398,510$ (289,882)$ Notes: FY24 $1,820,000 prepayment for a Tower FY25 through forcast period $209,000 Lease payment for a Ladder FY27 $1,1000,000 Pay upon delivery for an Engine 2032 Replace E4 and BR16 via purchase 2033 Replace Tender via purchase FY25,26,27 assumes increase contributions $150k SCBAs in FY28 possible grant Attachment 1 Page 1 of 1