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CC - (FOUR-FIFTHS VOTE REQUIREMENT)_ Approval of an Budget Amendment Increasing the Asset Replacement Fund Fiscal Year 2015/2016 Budget by $448,000 for Two Underfunded Vehicles for the Fire Department.
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Contact Person/Dept: Paul Condran/Transportation
Phone Number: (310) 253-6520
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/22/15)
Department Approval: Art Ida, Director of Transportation (10/21/15)
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RECOMMENDATION
Staff recommends that the City Council approve a budget amendment increasing the approved Fiscal Year 2015/2016 Asset Replacement Fund budget by $448,000 to cover the necessary expenses of two approved Fire Department vehicles which, due to changes in technology, and raw material costs, were underestimated in the budget projections.
A budget amendment requires a 4/5ths affirmative vote.
BACKGROUND
The Asset Replacement Fund is the accounting tool used to track the City’s major capital equipment, including all rolling stock and construction equipment. The ARF also collects funds to replace equipment as it reaches the end of its useful life. The annual management of the Asset Replacement Fund is an extensive process used to best determine the types of vehicles and equipment that will be replaced and meet operational department’s future needs Depending on the anticipated useful life of the equipment this forecast can be made as many as twenty years prior to the actual purchase of the vehicle.
In Fiscal Year 2015/2016, two Fire Department vehicles were approved for replacement. Because of enhanced safety, operational and augmented technology changes including highly specialized advanced apparatus manufacturing methods, additional funding is needed to procure the correct equipment for safe operation of the vehicles as well as allowing for maximum safety and operational flexibility.
The major cost increase included in this request is for the new ladder truck. Prices for this type of firefighting apparatus have rapidly increased beyond what was estimated when this vehicle was first purchased in 1991. Advances in technology, chassis and physical dynamics of a ladder truck, which must meet rigorous state safety laws, and the safety amenities necessary within the apparatus have drastically changed thereby increasing the cost of this equipment. The City separately replaces its two ladder trucks once every twenty-five years.
DISCUSSION
Increased funding is being requested for the replacement of two (2) vehicles:
Original Cost Requested
Unit # Year Vehicle Type Estimate Amount Total Funded
LTI Spartan
3715 1991 Ladder Truck $792,500 $408,000 $1,200,500
Chevrolet
Suburban SUV
1933 1999 Command Vehicle $70,000 $40,000 $110,000
Operational and safety necessities have changed how the Fire Department responds to emergencies and this requires different types of support/suppression vehicle features. The cost estimate for unit #3715, a 1991 LTI ladder truck, was budgeted through 2015 over the life cycle of the apparatus. During the specification development process, while working with a proposed manufacturer, it became evident that the original budget estimate was going to be underfunded.
The second vehicle, a new Battalion Chief fire incident command vehicle, will require the installation of different, highly specialized equipment, including lighting and control systems and upgraded safety equipment to work with the city and county fire safety code compliance requirements that also includes mapping, radio and communications systems now commonly used in the industry to enable this vehicle to be a complete multi-functional inter-agency command vehicle. Most of these amenities were not anticipated at the time of budget development.
FISCAL ANALYSIS
The additional funding for this $448,000 request is proposed to come from the Asset Replacement Fund reserve. If this request is approved, the funding will be appropriated in account 30770500.732100. There are sufficient funds available in the Asset Replacement Fund to cover this request.
ATTACHMENTS
None
RECOMMENDED MOTIONS
That the City Council:
(Four-fifths vote required) Approve a budget amendment increasing by $448,000 the appropriations in the Asset Replacement Fund to cover the necessary increased expenses for two (2) City assets.