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Lake Elmo Agenda Section: MAINTNANCE/PARK/FIRE/BUIDING: No 7-P-3. City Council November 8, 2006 Agenda Item: Ladder Trucks Background Information for November 8, 2006: At your last Council meeting you approved a "Letter of Intent" with Rosenbauer/General Safety (a fire truck builder) regarding the possible purchase of used ladder trucks, a 100' and a 75'. This letter gave the city until November 8, 2006, after such time Lake Elmo would no longer have a "hold" on the trucks and they would be released for sale. This allowed staff the necessary time to fully research this opportunity and prepare this information for council. Staff has reviewed the CIP, researched financing options, contacted the former owners and test driven both ladder trucks throughout the city. Due to the inability to schedule a joint workshop, this information has been passed on to each council member independently. Both of these vehicles were built in 2003 for the City of Stow, Ohio. After delivery it was discovered that the vehicles were over weight for their roads (this has since been corrected by reducing the water amount). Rather than lower the weight of the vehicles, Stow opted to purchase new ladders. General Safety took them in on trade. In today's dollars these vehicles combined would cost approx. $1,500,000.00. When purchased new in 2003 the combined price was $1,360,000.00. Asking price for the vehicles is $1,055,000.00 (100' - $610,000.00 and the 75' - $445,000.00). The expected life span on these vehicles is approx. 20 — 25 years. You have several options before you, purchase both, purchase the 100' ladder, purchase the 75' ladder or purchase neither. Both of these vehicles are in the CIP plans for the fire department in the not to distant future. Although in the current CIP the first ladder isn't scheduled until 2010, in last year's CIP it was proposed in 2007. These items have been repeatedly moved out in the CIP due to financial shortfalls. Based on this information the recommendation is as follows: 1. Purchase both the 100' & 75" ladders with a potential savings of approx. $450,000,00 or 2. Purchase the 100' ladder. (If either truck is purchased, it is recommended that the purchase be contingent on a thorough inspection by Emergency Apparatus Maintenance to the satisfaction of the city) Action Items: Person responsible: Greg Malmquist/Tom Bouthilet Attachments: