CC WORKSESSION 11302010 - Laserfiche WebLink

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The City Manager and Finance Director explained this situation is partly due to the restructuring of revenue that had to occur in 2009 to offset the City's loss of Homestead Market Value Credit. Annual funding for capital equipment was reduced $82,300 to the current annual amount of $313,200. 2. Fire Pumper Discussion, Fire Chief Malenick reported that there continues to be two issues concerning the acquisition of a new pumper truck by 2012 that need further discussion. He reminded the Council that the newest pumper currently in the Fire Department's fleet will be twelve years old in 2012. He stated that several years ago, a replacement plan had been put together so that the City could save the money needed to replace trucks in a more consistent and timely manner. But due to a number of economic factors, that hasn't happened and consequently the City has a 27 -year old pumper that needs replacement but there are no funds. The Fire Chief reported that the second issue to consider a possible change in the fleet configuration. The question that needs to be answered is whether to reduce the number of pumpers from three to two. When asked, Chief Malenick responded that the City has always had three pumpers for back -up in the event of more than one call; for training of new fire fighters, and as a part of the agreement to participate in mutual aid. Chief Malenick continues to believe that the City needs to maintain three pumpers to protect the residents, their property, and the firefighters and to continue to comply with the National Fire Protection Agency standards. Discussion. The Chief reviewed the Mutual Aid Statistics with the City Council. There was continued discussion regarding the Capital Equipment budget and future funds. Currently, any immediate funding plan to purchase a new pumper truck would short the other City departments of capital equipment funds for a number of years, limiting their ability to replace needed capital equipment. When asked about saving money for the next seven years to purchase a pumper, Malenick advised that the cost of the trucks seem to increase every year for various reasons, such as new technologies, better materials, labor, etc. He also stated that interest rates tend to increase as well. When asked about the economic life of a pumper, Malenick replied that with good care and maintenance, a pumper truck can last 25 years and would probably sell it for $10,000. Council asked if Capital Equipment Certificates could be extended to seven (7) years from five (5) years. The Finance Director indicated that they can, but it's generally not a good idea because cost of issuance costs are more as are interests costs. When asked if the same held true for lease extensions to seven (7) years, the Finance Director answered yes. In returning to the discussion regarding the 5 -Year Capital Equipment Plan, Council asked about reconciling Option #3 with the purchase of a 3m pumper. Staff proposed this option of working within the parameters of the annual allocation of $313,200 while continuing to defer large capital equipment purchases. 3. Tobacco Shop Ordinance. Assistant City Manager Kim Moore -Sykes reported that the Council had a revised copy of the proposed Tobacco Ordinance that is based on her F: \Minutes\2010 \Council Staff worksession 10052010.doc