City of Palm Coast Fire Rescue Department

Apparatus Replacement Program

Purchase or Lease

City of Palm Coast Goals 2014

• Provide Quality Services, Maintaining the City’s Financial Soundness

• Maintain a Safe Community• Expand the Local Economy• Develop Long-Term, Sustainable Water

Supply• Manage Growth for Quality, Sustainable

Community• Promote Town Center as Our Downtown

MAJOR CHALLENGES

• Palm Coast, Florida April 2009 • DEPARTMENT: Fire & Rescue• From your department’s perspectives, what are the

major challenges facing the city over the next 5 years?

• Complete response zone analysis of Fire Stations Review and update A.L.S. program to include possible expansion of services

• Schedule I.S.O. inspection – reduce rating to 4• Purchase of Replacement Tower Apparatus:

Spec./Bid/Award/Build

Challenges

• 1.Funding for public safety • 2.Visible access, 24 hour substation and location• 3.Preparation for natural disaster response and

recovery• 4.Impact of housing downturn and slowing economy• 5.Relationship to Flagler County Emergency Services• 6.Involving the residents in community safety• 7.Upgrading the communication system

2008-09 Budget

Vehicle Replacement Fund for Tower-2– Account # 044100

• Shows $1,000,000.00 for the replacement of the 1973 Baker Aerial Scope.

• Bids received and presented at the December 23, 2008 business meeting of the City Council. After discussion was decided to hold the purchase of the apparatus until June 2009, at which time the Council would have a better understanding of the revenue reduction the City would face in the next budget cycle.

2009-10 Budget

2009-10 Budget Request;– Replace Engine # 25:

• 1995 Seagrave• Anticipated Amount: $425,000.00 (Custom)

– Replace Engine # 212: • 1976 Ward LaFrance• Anticipated Amount $ 250,000.00 (Commercial)

History of Apparatus

• City Incorporated 1999:• All apparatus associated with the Palm Coast

Fire Department became the possession of the City. At that time the Department did not have:

• 1- Back up apparatus• 2- Volunteer Apparatus

Per the I.S.O rating – 6/9

1995 Seagrave

• Purchased in 1995 – Served the Department in the 1998

Wildfire season.• Currently has 163,000 miles/10,986 hours• Body repairs are warranted• Serves as a back up/volunteer Engine

September 11, 2001

• 1973 Baker Aerial Scope: 75’ Tower Ladder was purchased from a broker in South Carolina for $75,000.00. The funds were obtained through the sale of a 1,500 gallon water tender that was purchased by Flagler County and remained in possession of Palm Coast at the time of incorporation.

October 2001

• 1976/1989• Ward LaFrance Pumper purchased from Lake

Mohegan Fire District, Lake Mohegan, New York

$26,000.00

April 2003

• 1976/1989 • Ward La France Pumper purchased from Lake

Mohegan Fire District, Lake Mohegan, New York.

$24,600.00

October 2004

The purchase of three used pumpers from a department in New York for a combined cost of $60,000 for use as back up engines.

1984 Mack1985 Mack1986 Mack

1984 Mack

1985 Mack

1986 Mack

National Fire Protection Association

• THE NFPA MISSION IS TO REDUCE THE WORLDWIDE BURDEN OF FIRE AND OTHER HAZARDS ON THE QUALITY OF LIFE BY DEVELOPING AND ADVOCATING CONSENSUS CODES AND STANDARDS, RESEARCH, TRAINING, AND EDUCATION.

• NFPA IS AN INTERNATIONAL NONPROFIT MEMBERSHIP ORGANIZATION FOUNDED IN 1896 AS THE NATIONAL FIRE PROTECTION ASSOCIATION. TODAY, WITH 81,000 MEMBERS FROM MORE THAN 100 NATIONS, NFPA IS THE WORLD'S LEADING ADVOCATE OF FIRE PREVENTION AND AN AUTHORITATIVE SOURCE ON PUBLIC SAFETY.

NFPA 1911: Standard for the Inspection, Maintenance, Testing, and Retirement of In-Service Automotive Fire Apparatus

Annex D / Guidelines for First-Line and Reserve Fire Apparatus- D.1 General:

…, fully enclosed riding areas with reduced noise (dBA) levels to keep crew members safe and informed, seats and seat belts for all crew members riding on the apparatus, fail safe door handles so the sleeve of a coat does not inadvertently catch a handle and open a door…

Open Cabs

Insurance Services Organization

• The Fire Suppression Rating Schedule (FSRS) measures the major elements of a community's fire-suppression system and develops a numerical grading called a Public Protection Classification (PPCTM).

– Pumpers — ISO compares the number of in-service pumpers and the equipment carried with the number of needed pumpers and the equipment identified in the FSRS (or equivalency list). The number of needed pumpers depends on the Basic Fire Flow, the size of the area served, and the method of operation. 10% ( 3.21 out of 10.0 pts.)

– Reserve pumpers — ISO evaluates the adequacy of the pumpers and their components with one (or more in larger communities) pumper out of service. 1%

2009-10 Budget Request

Requested Funding: Custom Pumper $ 425,000.00Commercial Pumper $ 250,000.00Tower $ 979,585.00

Total: $1,654,585.00 *$1,000,000.00 currently in C.I.P for

Tower Replacement

Municipal Lease Program

• A municipal lease is an agreement in which the lessor gives a municipality the right to purchase specified equipment in exchange for a fixed series of lease payments. The contract sets forth terms and conditions including equipment specifications; amount and timing of payments; length or term of lease; nominal purchase option at lease end; and a non-appropriation clause allowing the municipality to cancel if future funding is not approved.

Proposal DRAFTTotal Purchase of 1 Engine $ 425,000.00Total Yearly Lease per unit $ 53,537.26Total lease over 7 years $ 374,760.82

End of 7 year lease:

$ 374,760.82 $ 135,771.12 balloon payment

Total $ 510,531.94 per Engine (keep)

Turn in option $ 374,760.82 $ 135,771.12 credit towards

replacement

Proposal DRAFT

Replace 5 Engines- 5 @ $425,000.00 $ 2,125,000.00

Lease Option-

Each Engine per year $ 53,537.26

Multiply by 5 units per year $ 267,686.30

Lease for 7 years$ 1,873,804.10

Tower Replacement

Tower Purchase $ 979,585.00

Yearly Lease $ 124,861.23

End of 7 year lease: $ 874,028.61 $ 300,000.00 to terminate

lease

Total $ 1,119,317.15 to keep Toweror

$ 300,000.00 credit to replace

Total ProposalPurchase Lease

Engine- $ 425,000.00 $ 53,537.26 per year

5 Units $ 2,125,000.00 $ 267,686.30 per year

Tower Truck $ 979,585.00 $ 124,861.23 per year

Total: $ 3,104,585.00 $ 392,547.53 per year

Total after 7 years $ 3,104,585.00 $ 2,537,832.70

Keeping all equipment add $ 978,855.60

Savings

Current Funding $ 1,000,000.00

Engines (5) $ 267,686.30

Tower Ladder $ 124,861.23

$ 392,547.53

Current Funding shows a lease payment equal to 2.5 yearly payments added to the first year grace period.

Current Replacement Program

One Engine $ 425,000.00

Divided by yrs of svc. 20

Replacement fund is paid $ 21,250.00 per unit

x5 (proposed 5 units)

$ 106,250.00 per year

x7 year lease program

$ 743,750.00

Maintenance Cost 2007-09

• 1976 Ward $ 1,000.00• 1976 Ward $ 1,123.82• 1973 Aerial $ 1,930.54• 1984 Mack $ 143.93• 1985 Mack $ 2,884.73 • 1986 Mack $ 3,665.73• 1995 Seagrave $ 1,486.29• Lbr/1,324 hrs.X$30. $ 39,720.00 • Total: $ 51,955.40• Most of these vehicles were in storage for 12 months

7 Year Lease Program

050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

2010 2012 2015 2017

Cost New

Lease

maint.

Benefits– Standardized Fleet– I.S.O. points / N.F.P.A compliance– Bumper to Bumper Warranty

excluding belts, bulbs tires and breaks etc…– Uniformed training /reduction in re-certification of drivers

(O.T)– Reduction in maintenance cost and labor– Constant yearly lease payment– Reliable apparatus for career and volunteer– No down payment– Build equity in apparatus– Municipality tax exempt– Locked in interest rate

Questions