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Home My WebLink About2004-01-26 04-70 ORDERItem fy, gh70 Date: 1-26- 04 Item/Subject ORDER, Adopting City of Bangor Fre Equipment Replacement Policy Responsible Department: Finance Commentary: The purpose of this pollay Is to establish guidelines for the City's systematic scheduling of fire equipment acquisition and replacement. The policy establishes Me estimated necessary annual funding for Me Fire Equipment reserve In order to replace most of the current fire vehicle fleet over Me nexttwe:M1y years. However, as certain pieces of fire equipment are extremely expensive, it is anticipated that some bond funding would be needed during the first twenty-year cycle only. -fhe attached! Order would formally adopt the Fire Equipment Replacement Policy and would provide guidance and direction to City Staff regarding future fire equipment acquisitions and establish the necessary funding mechanism. LDepartment Heed This has been reviewetl by the Finance Committee, which recommends appryyaly , &cam , / ##�� City Manager Assetiated Information: Policy, Fire Equipment Acquisition and Replacement Schedule Budget Approval Finance Director Legal Approval: ry Solidtor Introduced for Passage _ First Reading Page _ of Referral 04-g0 Aaignedm Cauwilw PaainBtov 3avuery 26, 2006 CITY OF BANGOR (MIX.) ORDER, Adopdng City of Bangor Fire Equipment Replacement Policy By mealy opvr /afft ow afBmgat ORDERED, THAT me Bangar City Council hereby adopts the Fire Equipment Replacement Policy, which provides far the systematic repRcennent of vehciles within the Fire Department and establishes a financang plan, and BE n FORMER ORDERED TMT implementation of this policy shall became elfective with the (Sty's July 1, 2009 to June 30, 2005 fiscal year budget. notion wade aad Secwded k OFyD for Passage 0EDEn (TITLE,)ddwtiw city of eangOr lnre Equipment Eeplacemnt Policy oa-70 City of Bangor Fire Equipment Replacement Policy 1.0 Purpose The purpose of this Policy is to establish guidelines for the systematic scheduling of fire equipment acquisition and replacement for the City of Bangor. 2.0 Policy Statement 2.1 The City of Bangor recognizes that scheduling fire equipment acquisition and replacement at reasonable intervals and funding fire equipment replacement at sufficient levels are both necessary components of our operation and ownership. 2.2 This Policy is intended to apply to equipment and vehicles owned by the City's Fire Department, which has a separate reserve account. 3.0 Intent of Systematic Replacement Scheduling for the Fire Equipment It is recognized that the systematic scheduling of fire equipment acquisition and replacement has the following benefits: 1. Maintaining the high level of service that is expected by the City's residency in regards to response time and service for both fire and ambulance cells. 2. Ensuring the safety of the CiNs citizens, employees and buildings through the deployment of appropriate fire equipment. 3. Eliminating the high expense associated with repairing, maintaining and owning old equipment and vehicles. 4. Enhancing the trade-in or sale value of the City's fire equipment through regular disposal of equipment and vehicles that have reasonable remaining value to other interested parties. 4.0 Funding Strategy for Fire Equipment Acquisition and Replacement 4.1 Subject to the annual availability of funds as determined by the Bangor City Council, this Policy establishes an annual appropriation and anticipated financing (borrowing) schedule beginning in 2004. The annual appropriation level will begin at $97,650 and increase each year thereafter at a rate of approximately 5 %. This schedule has been developed based upon the useful lives for each piece of the City's fire equipment. The final amount th be financed and the equipment/vehides to be replaced in any given year will be determined through the City's annual budget development and approval process. 4.2 The Fire Equipment Reserve account will be utilized as the account to which funds will be appropriated and from which funds will be expended. 4.2.1 Sources of revenue for this account may include but are not limited to the following: 1. Annual Fire Equipment Reserve appropriations which shall begin in the FYOS budget at approximately $97,500 and which may increase annually thereafter at a rate necessary to fund the continuation of the replacement schedule, taking into account such other revenue and cost factors as may be appropriate. 2. Any interest earnings which the Reserve Account may generate and accrue. 3. Any proceeds from the sale of Equipment/Vehicles owned by the Fire Department. 4.3 The attached Fire Equipment Acquisition and Replacement Schedule is to be considered the baseline reference document for this policy. 5.0 Responsible Qty Officials Those City officials responsible for the oversight and implementation of this policy include: Assistant City Manager (Administrative Services Director), Finance Director and fire Chief. 6.0 Effective Date The Fire Equipment Acquisition and Replacement Policy shall become effective with the July 1, 2004 to lune 30, 2005 budget year for the City of Bangor. 04-I0 Five Equipment Acquisition and Replacement Schedule Real Year Beg Bal Reserve Annual Approp. Bond Issue Annual Expand, Equip Reference Interest End Bal Reserve FY04 2,107 97,850 9,000 Rewe 100 10,05] FY05 10,057 103,000 90,000 Rescue 231 23,287 FY06 23,207 108,000 91,m0 Rewe 395 39,862 F w 39,882 114,000 93,636 Rexue 602 6,898 F 08 60,898 121,000 50,000 Te:h Rexue 1,318 133,167 F109 133,167 128,000 95,509 Rexue 1,657 167,315 6Y10 167,315 135,000 285,000 E6 173 17,488 FY11 17,488 142,000 97,419 Re cue 621 62,690 FY12 62,690 150,000 30,000 Fire Ca nand 1,827 34,517 50,000 650,000 Udtl /Snorkd M3 39,517 160,000 99,357 Rexue 951 9,101 M4 96,101 170,000 - 2,661 268,762 FY15 268,762 180,000 101,355 Rewe 3,474 350,801 N16 350,801 180,000 309,000 E5fFnx* 15 2,219 224,100 M7 224,100 180,000 103,382 Rewe 3,007 303,726 FY18 303,7M 180,000 500,000 95,000 ladder 337 34,063 M9 34,063 180,000 105,949 Rex 1,006 109,700 MO 109,700 180,000 - 2,897 292,597 M1 292,597 180,000 107,558 Re 3,650 368,689 FY22 360,689 180,000 285,00 E1 2,637 266,326 FY23 266,326 180,000 109,709 Resue 3,366 339,962 M4 339,982 180,000 230000 Tanker/Common, 2,900 292,882 FY25 292,862 180,000 111,904 Rewe 3,610 369,526