02-10-10 Council Workshop Minutes

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MINUTES CITY COUNCIL FEBRUARY 10, 2010 had previously worked out a 24-year equipment replacement scheduled, and noted that last year that schedule was modified to a 20-year schedule. This brought the truck into the 5-year CIP cycle. The Administrator noted that there is not only the impact of the ladder truck replacement to consider, but also future funding of equipment replacement. The Administrator aclrnowledged that the City is responsible to maintain the Fire Department's equipment in a good and safe manner. He pointed out that in the past revenues from charitable gambling were available to assist in these purchases and that this revenue has been drying up. "Ihe Adminish~ator also noted that the City had imposed a tax on charitable gambling organizations and noted the negative impact on these organizations if that tax were put in place again. The City Administrator then reviewed the General Capital Improvement Fund Budget without the impact of the ladder truck purchase, noting that the Fund still projects a negative balance though not to the extent it does with the ladder truck included. The Finance Director then presented a cost analysis projecting 20 and 24 year replacement costs for Fire Department vehicles. She noted that a 20- year replacement would require $133,377 annually in financial support, while a 24-year schedule requires $111,148 annually. 1?liminating the command vehicle and sharing of cost of a ladder truck with another jurisdiction puts the annual amount fora 20-year replacement schedule at $87,180 and 24-year schedule at $72,650. The City Administrator indicated that there has to be some focus on the equipment inventory and then a pricing scenario can be developed. The Administrator pointed out that both the 20-year or 24-year replacement schedule will require levy support. The Administrator felt that the City and the Fire Department have to work together on this issue. He pointed out that the City will be accountable to the taxpayers for additional levies to support equipment replace, but noted that there is generally support for public safety items. The Administrator stated that he was worried about the State budget impact on the City coupled with all the other budget issues the City is facing at the same time, i.e. decreased building permit revenue, decreased interest earnings, declining property values, etc. The City Administrator then reviewed some research that he did relative to replacement schedules, equipment needs, requirements for meeting current NFPA standards, etc. The Administrator commented that in considering the ladder truck replacement issue, there are options that The City and the Fire Department can consider. Those include replacement years, cost equipment relative to the writing of specs and possible purchase of demos, refurbishing 2