		GENERAL COMMITTEE - Finance and Administrative


	TO:	Mayor and Members of Council

	FROM:	Don McClean, Fire Chief

	PREPARED BY:	William Snowball, Deputy Fire Chief

	DATE OF MEETING:	January 24, 2005

	SUBJECT:	Purchase of One (1)- Pumper Fire Apparatus

RECOMMENDATION:

THAT Council authorizes the Fire Chief and the Manager of Purchasing to enter into a sales agreement with Safetek Emergency Vehicles, as the Canadian sales distributor for Smeal Fire Apparatus Co. (Inc.), Nebraska U.S.A., for the purchase of one (1) - Pumper Fire Apparatus for an amount not to exceed $600,000 inclusive of import fees;

AND THAT the funding for the pumper fire apparatus purchase be up-fronted from the Life Cycle Replacement Reserve, account 86-2700-200;

AND FURTHER THAT tax based funding be pre-approved and included in the 2006 capital budget to replenish the Life Cycle Replacement Reserve.

PURPOSE:

To authorize the purchase of one (1) Pumper Fire Apparatus from Safetek Emergency Vehicles as the Canadian sales distributor for Smeal Fire Apparatus Co. (Inc.), Nebraska U.S.A. and associated fire equipment through various distributors.

BACKGROUND:

In February 2002 a Fleet Specification Committee was formed to provide recommendations for a new fleet of Pumper type vehicles based on our current and anticipated levels of service, gap analysis of current and desired state of apparatus, requirements to reach desired state, and safety standards regarding performance, as well as, practical concerns. The Committee identified a need to purchase new pumper trucks to continue the standardization our aging fleet.

The committee researched the standards for fire apparatus including but not limited to N.F.P.A. 1901, U.L.C. 320U6.1 and U.L.C. S515.

At its meeting on November 27, 2001 Council approved Clause 7 of Report No. 73, which reads as follows;

“The Markham Fire and Emergency Services be authorized to proceed with the standardization of the fire apparatus fleet and that a single source of fire vehicles and apparatus be approved for a period of five (5) years;

And that Council authorize the Fire Chief, the Manager of Purchasing and a representative from the Finance Department to negotiate with Safetek Emergency Vehicles as the Canadian sales distributor for Smeal Fire Apparatus Co. (Inc.), Nebraska U.S.A.”

FINANCIAL CONSIDERATIONS:

In 2002, four fire pumpers were purchased from Safetek Emergency Vehicles for approximately $600,000 (Canadian) each. Based upon purchase history, the cost of the new vehicle is estimated to be $600,000. Final costs are dependant upon negotiation with Safetek and the U.S.-Canadian dollar exchange rate at the time of the deposit.

Due to the 300-day build cycle, the new pumper should be ordered in February 2005 to be delivered in early 2006. It is recommended that Council pre-approve $600,000 of the 2006 tax-funded capital budget for the purchase on one new fire pumper.

Although possession of the new fire pumper apparatus is not expected until 2006, payments are required in 2005, as outlined in the Payment Information section (below). It is further recommended that $600,000 of funding for the new fire pumper be up-fronted from the Life Cycle Replacement reserve, account 86-2700-200, with funds to be returned to the reserve upon approval of the 2006 Capital Budget.

Payment Information

A 10% down payment of the contract to secure the fixed exchange rate.
A payment for the one (1) Spartan custom cab and chassis’s upon completion at Spartan Motors.
The balance payable upon delivery and acceptance to Markham Fire and Emergency Services.

BUSINESS UNITS CONSULTED AND AFFECTED:

Finance and Purchasing

ATTACHMENTS:

Finance and Purchasing

None