07.01 - Bids for New Fire Engine

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� PEQUOT LAKES FIRE DEPARTMENT 4638 County Road 11 Pequot Lakes, MN 56472 (218)568-8201 Fax (218)568-7672 �ae��i��ttil �i;j��c��tc�tl;i�.�,-tltn `Jt�ti TO: Pequot Lakes Mayor Adams & City Council �ROM: Tom Nelson, Ghief DATE: July 30, 2012 RE: Purchase — New Fire Engine We are looking to purchase a new Rescue/Engine; 1250 GPM pump, 1,000 gallon tank, passenger space for 6 firefighters, equipped with foam, room for tools/hose, extrication equipment, etc.... Approximate cost for this vehicle is $350,000. We will be submitting specific spec's for bids this fall. We will be replacing 2 of our existing vehicles with this newer truck. With an aging fleet, we have been working on schedule to update trucks as needed. We have spoken with the USDA representative and have found a competitive loan that fits our budgeted amount. � This last year we received our latest IS� test results, while we did well and our ratings went down for the City of Pequot Lakes, we didn't getting enough points to get our rural areas down to a seven. The main reason for this was lack of another Class A engine; for our rural area, we need to have 3 Class A Engines in our fleet. We are trying to lower the ISO rating for the cities and townships we serve. We currently have 3 engines: 2003 Peterbilt (meets Class A requirements), 1995 Ford (meets Class A requirements) and 1978 Ford — this does not meet standards. Without a newer engine we will not be able to lower our ISO rating below an 8. In talking with the ISO representative, it was stated that in getting a newer engine, we wvuld almost be guaranteed a lower rating (to a 7). The 1978 Ford is one of the trucks we will be getting rid of. We have the funds available in our budget to make the payments that were discussed with the USDA representative. Our budget has a line item labeled Debt Service. Currently we have $18,000 a year in this line item for our 2003 Peterbilt payment. We paid off the 2003 Peterbilt this year. We would like to continue leaving that line item for the purchase of this new RescuelEngine. The Debt Service line item will be increased to $24,OQ0, this will not increase our budget — we will decrease the amount of our Capital Outlay Carryover to keep our budget the same. I have discussed this with both Sandy and Nancy M. If you have any questions please let me know. Thank you, `-- ,� ��-�.��- Tom Nelson, Chief