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Description
San Bruno City Council Meeting August 9, 2011
10b. Purchase Fire Apparatus
B
Thank
You
mr.
mayor
members
of
the
City
Council
edmondson
finance
director
on
July
27
of
last
year,
staff
introduced
and
recommended
to
the
City
Council,
the
replacement
of
the
1988
Pierce
fire
engine
after
22
years
of
service
in
over
120,000
miles,
city
council
proceeded
to
authorize
staff
to
enter
into
a
purchase
contract
with
seagrave
for
the
power
apparatus.
However,
since
the
equipment
replacement
fund
had
only
three
hundred
forty
two
thousand
dollars
of
monies
accumulated
for
the
replacement
of
the
equipment
staff
recommended
that
we
look
at
other
financing
opportunities
to
substantiate
the
purchase.
B
So
as
a
result,
City
Council
actually
directed
staff
to
do
that.
To
look
for
such
financing
options,
we've
since
been
notified
by
the
vendor
that
the
fire
apparatus
is
near
construction
and
is
expected
to
be
delivered
to
the
city
the
week
of
August
twenty
seconds.
So
a
staff
proceeded
to
contact
a
number
of
financing
sources
to
determine
what
the
options
are
available
in
terms
of
financing
the
apparatus
and
through
the
solicitation
of
six
firms.
B
The
way
the
financing
is
structured
is
that
the
full
amount
of
the
loan
for
the
fire
for
the
value
of
the
apparatus
will
be
taken
out.
However,
since
the
as
I
indicated
earlier
since
the
city
has
reserved
funds
available,
we're
going
to
be
making
initial
payment
of
300
thousand
dollars
against
that
loan,
thereby
really
financing.
Only
the
balance
of
240,000
06,
the
rest
of
the
equipment
reserve
fund
of
approximately
forty
four
thousand
dollars
is
going
to
be
needed
to
pay
for
the
sales
tax
associated
with
the
purchase
of
the
equipment.
B
Yet
it
gets
us
somewhere
in
the
neighborhood
of
less
than
four
thousand
dollars
about
four
thousand
dollars
a
year
in
interest
payments
relatively
low
47
year,
leasing,
financing
and
again
as
a
product
of
the
really
low
interest
rate
environments
that
we
have.
So
the
recommendation
to
the
City
Council
is
an
appropriation
of
344,000
575
for
the
current
fiscal
year
that
composes,
that
the
composition
of
that
is
$300,000
down
payment
and
also
the
balance
of
that
being
the
payment
of
the
sales
tax.
With
that
I
can
take
any
questions
on
this
staff
report.
Any.
B
So
the
equipment
replacement
fund,
the
way
it's
built
is
we've
identified
individual
pieces
of
equipments,
so
every
year
there
are
set
aside
money-
that's
put
in
in
this
particular
case
for
this
apparatus.
We
we
accumulated
some
three
hundred
forty
thousand
dollars
in
the
reserve
fund,
so
that
money
then
is
now
available
to
use
as
a
down
payment
and
also
for
the
payment
of
sales
tax.
So
we're
not
actually
drawing
down
them
any
more
than
we've
saved
over
time.
In.
C
B
Of
what
this
does
to
the
equipment
replacement
fun
going
forward,
the
first
seven
years,
there's
going
to
be
lease
payments
that
we're
making,
so
that
amount
happens
to
be
approximately
if
we
stretch
it
over
time
and
save
this
new
fire.
A
per
apparatus
has
useful
fly
of
life
of
15
years,
which
I
think
it's
reasonable.
If
you
kind
of
divide
that
out
the
cost
of
the
new
fire
apparatus
over
15
years,
it
works
out
to
be
about
thirty-nine
thousand
dollars
a
year.
B
So
it's
very
close
to
exactly
what
we're
paying
in
terms
of
the
annual
lease
payment
and
somewhat
by
coincidence,
not
really
designed
to
be
exact
but,
as
a
coincidence,
is
approximately
the
same
amounts.
So
after
the
seven
year,
lease
payments
is
up
the
remaining
eight
years
of
the
15-year
life
we
are,
then
we
accumulating
if
I
may,
funds
into
the
equipment
reserve
fund
for
the
replacement
of
this
fire
apparatus.
So
you
kind
of
turn
the
clock.
B
15
years
from
now,
there
will
be
a
new
bucket
of
monies
that
we've
saved
over
time
for
the
replacement
of
the
new
progress
and
in
terms
of
existing
other
fire
apparatus
equipment.
Again,
there's
specific
reserves
that
were
accumulated
for
each
and
every
one
of
those
apparatus.
So
as
they
come
to
the
end
of
their
useful
life,
we
would
be
again
in
starting
to
the
equipment
replacement
fun
for
replacement
with
those
apparatuses.
Okay,
those
individual
apparatus
and.
C
Just
trying
to
do
this
in
my
head,
what
it
looks
like
to
me
is
that
by
the
time
we
go
to
purchase
the
next
one
in
15
years,
yes,
we
may
have
actually
accumulated
less
than
what
we
have
in
there
right
now
and
that
fire
engine
will
likely
be
far
more
expensive.
So,
with
every
cycle
it
seems
like
we're.
Gonna
have
to
finance
more
and
more.
That's.
B
Of
the
perch-
that's
maybe
the
case
and
and
one
of
the
things
that
staff
wants
to
do
we'll
be
doing
on
a
regular
basis
in
terms
of
looking
at
the
operating
budget,
is
to
reevaluate
the
needs
of
the
equipment,
replacement,
fun
and
potentially
up
those
amounts
so
that
we
can
have
sufficient
funds
going
forward
for
these
type
of
replacements.
Okay,.