2. Fire Truck Funding Options61'1412007
TO:
Mayor Pamela B. Kennedy
and Kalispell City Council
FROM: Randy Brodehl, Fire chief
James H. Patrick, city Manager
SUBJECT: Fire Ladder Truck Replacement
COUNCIL MEETING DATE: June 18, 2007
BACKGROUND: The Kalispell Fire Department has a thirty year old (1978) ladder truck.
It is scheduled for replacement this coming budget year, and this replacement is identified
in the department's capital improvement plan. This purchase is shown in the 2007/2008
preliminary budget on page 79 and page 83.
A fully functional ladder truck, known as a "Quint", can be described as having an aerial
ladder, a fire pump, water tank, hose, a standard set of firefighting equipment, and carries
at least 5 personnel. current NFPA standards and ISO qualifications for ladder trucks
require that cities with commercial buildings that are 3 or more stories in height have aerial
ladders that are at least 1 05' in height. This is to allow ladder use at an angle and to allow
it to cover several areas while the appartus is parked at one location. NFPA also
recommends that ladder trucks be put into reserve status after 15 years of service.
Ladder trucks are most effective at commercial fires such as the Conlin Building (Now
Glacier Bank), where master streams from the ladder truck were used to cut the fire off,
preventing the fire from spreading to the rest of the block. This type of fire is often called a
`five year fire', denoting that they are not an every day occurrence. However, they do
occur, and when they do, use of a ladder truck is the most effective way prevent wholesale
fire spread to other commercial buildings. Ladder trucks also carry specialized equipment
that is often used during fireground operations at large or technically difficult residential
fires, and special rescues.
In I SC's recent reclassification of the City of Kalispell, they credited the city with 2.66
percent out of a possible 5 percent for the city's ladder truck. They noted that, `For
maximum credit in the scheduler 2 ladder companies are needed in your city." The ladder
truck also lost some credit due to, "insufficient length, as it only has an 85' aerial ladder,
instead of the current minimum of 105'.
The current ladder truck, has served the city well. However, at 30 years old, it is seeing a
great deal of repairs. Over the past 10 years, cost for repairs was $30,009.07. These
costs continue to rise, as ► ould be expected from a piece of appartus that is this age. 1t is
the intention of this request to keep the existing 30 year old ladder truck fully functional, but
in reserve status for use only on large commercial fires and when the new ladder truck is
out of service during maintenance. With minimum use, it is possible that this ladder truck
could be Kept in reserve for at least five more years.
FISCAL IMPACTS: This request is for the purchase of a 105' ladder truck, with all
necessary operations equipment. Typically the cost of a new ladder truck like this is
between $900,000(Chevrolet quality) and $1,250,000(Cadillac quality). We have located a
demo ladder truck which will be available about March 1, 2008. It will have full warranties,
and will have road time, but no fireground time. The cost of this ladder truck, with all
equipment included, is $695,000.
Two options were presented in the preliminary budget package. The first option was to
approach the public with a ten year fire truck levy request. This could be brought before
the voters in November of 2007. The annual increase in taxes for a home appraised at
$150,000 would be approximately $9.70 a year, over a ten year period.
The second option is to pay the full amount by using $120,000 from fire impact fees, and to
borrow the remaining $575,000. These funds are identified in the preliminary budget as:
e $575,000 is in the Ladder Truck fund 4150--415-420400-944
$120,000 is in the Impact Fee fund 2399-900
Current rates for a 10 year loan are 3.89% (Municipal Services Group, Inc.). At this rate,
annual payments beginning in fiscal year 2008/2009 would be $69,958. Municipal Services
Group, Inc. also has a 12 year loan available at a rate of 3.95%. Using this method, annual
payments would be $60,629. Fire impact fees as they are generated, will be used to pay
the amortization of this loan, with no impact to the general fund. Fire impact fees have
been in place for six months, and these have generated approximately $160,000 to date.
Impact fees are used for equipment purchases primarily due to growth. The recent
reclassification by ISO identifies this impact as this is the first time that ISO has specified
the need for a second ladder truck due to the increasing size of the city.
RECOMMENDATIONS: Staff is recommending the second option, with a 10 year loan.
The life of the ladder true is at least 15 years, so the amortization period can fit within
those parameters.
Respectfully submitted,
a y Br 1, Fire Chief
Ja H. Patrick, City Manager