HomeMy WebLinkAboutDTS-09-170 - Fire Department Aerial Apparatus Purchase1
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Qevelo pment &
Technical Services
Report To: Christina Weylie, Chair and Members of the Development &
Technical Services Committee
Date of Meeting: November 16, 2009
Submitted By: Tim Beckett, Fire Chief
Prepared By: Gary Mann, Deputy Fire Chief
Ward(s) Involved: All
Date of Report: October 28, 2009
Report No.: DTS - 09-170
Subject: FIRE DEPARTMENT AERIAL APPARATUS PURCHASE
RECOMMENDATION:
"That Council waive the fender process for the purchase of a custom built aerial
apparatus and allow the purchase of a comparable stock apparatus from apre-qualified
dealer at a cost between $950,000.00 to $1,060,000.00."
EXECUTIVE SUMMARY:
The purchase of a stock apparatus deviates from the normal scheduled replacement of aerial
4524 in January 2012 due to the current availability of a suitable stock unit and the cost
avoidance opportunities. Purchasing of the apparatus at this time will be at a reduced purchase
price and allow for cost avoidance of ladder testing and refurbishing, 2010 engine upgrades as
well as increase the resale value of aerial 4524. There is also an opportunity to take advantage
of a strong Canadian dollar at this time.
BACKGROUND:
The Fire Department typically has fire apparatus custom built to defined specifications which
include the scope of the intended operation for the municipality and its fire department. These
units are custom built to these specifications by the manufacturer and/or the dealer who have
been awarded the contract through the formal tender process.
Dealers occasionally stock or build demonstration apparatus that are exhibited at trade shows to
promote their business and are often sold at the end of the year to fire departments that require
an apparatus with the same or similar specifications to make way for a new model to be built
and shown the following year.
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DTS - 09-0170
October 28, 2009
Page 2 of 2
REPORT:
The Fire Department and the Purchasing Divisions intention are to complete the preliminary
work of canvassing fire apparatus dealers for the availability of in stock aerial apparatus and the
associated pricing for units available. The purchase of in-stock apparatus is subject to
availability and whether the unit meets the required specifications of the Fire Department. If
such an apparatus can be located, the benefits to the City will be a reduced purchase price; cost
avoidance of ladder testing and refurbish (Aerial 4524); increased resale value of Aerial 4524
and cost avoidance of 2010 required engine upgrades. If making this same purchase in 2012, it
is anticipated there will be an increased purchase price, reduced resale value, a significant
aerial refurbish and ladder testing cost in 2009, and an eighteen month build time for a custom
built apparatus.
This purchase is similar to the aerial ladder purchase process undertaken in November 2008
and completed in 2009 which resulted in savings to the Corporation of $233,462.00 relative to
the amount originally budgeted to replace the vehicle with a custom tendered unit.
FINANCIAL IMPLICATIONS:
The search for an appropriate stock aerial apparatus can be lengthy due to fluctuations in
availability and scheduling of apparatus inspections with dealers and staff. However, preliminary
verbal discussions with dealers indicate that there is suitable apparatus available or in the
process of being built at this time. There are sufficient funds available in the Capital/Fire-Major
Equipment/Fleet to facilitate the purchase of this apparatus.
RevenuelPurchase Price Variance
CapitallFire-MajorlFleet $1,062,000.00
Estimated purchase price $950,000.00 to $1,060,000.00.
Potential purchase price saving $2,000.00 to $112,000.00
Estimated Resale +Cost Avoidance Savings
Cost Avoidance: ladder testing/refurbish (4524) $150,000.00
Resale value (1999: Aerial 4524) $125,000.00
Cost avoidance: 2010 engine upgrades $20,000.00
Total Resale +Cost Avoidance $295,000.00
Therefore, estimated savings may be up to $407,000.00 relative to the amount budgeted to
replace the vehicle with a custom tendered unit.
CONCLUSION:
It is recommended that Council waive the tender process for the purchase of a custom built
aerial apparatus and allow the purchase of a comparable stock apparatus from apre-qualified
dealer. Purchasing at this time will be at a reduced purchase price, cost avoidance of ladder
testing and refurbish, increased resale value of existing aerial and cost avoidance of 2010
engine upgrades.
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