Title
Aerial Apparatus Funding
Proposed Motion(s)
That Council approve an additional $57,780 for the purchase of the Aerial Apparatus for the Acheson Fire Station, and that funding for the project be funded through MSI Capital funding.
Body
Administration Recommendation(s)
Administration is in support of the additional funding for the Aerial Apparatus for the Acheson Fire Station.
Purpose
To provide additional funding required for the purchase of the Aerial Apparatus for the Acheson Fire Station.
Summary
Tenders for the Aerial Apparatus for the Acheson Fire Station have come in over budget. The budget for the Aerial apparatus is $1,500,000. Although a single tender was received for the Aerial apparatus, Administration has reviewed the tender and previous costs of similar Apparatus and are comfortable that the tender is within market value. There are 2 main reasons for the tender coming in over the budgeted amount:
1) The drop in the value of the Canadian dollar. When initial costs were gathered the costing was based on the Canadian and American dollar being at par. At the time of the tender the Canadian dollar was trading at just above $0.90 US. All Aerial Apparatus built in North America are built in the United States. (The tender specifications included pricing in Canadian dollars)
2) The cost of Fire Apparatus has gone up due to material availability and increased labour costs.
Administration has budgeted of $1,500,000.00. Total pricing for the Aerial Apparatus with all listed options came in at $1,788,500.00 (Canadian funds): $288,500.00 over our budget amount. We have reviewed the specifications and found some efficiencies by eliminating some items and have brought the cost down to $1,673,340.00.
Administration has designed the Aerial Apparatus as an industrial fire fighting unit. This design is different than the previous two Aerial Apparatus that Parkland County has partnered on with Spruce Grove and Stony Plain. The major differences in the design of the apparatus is in the capabilities to utilize compressed air foam and the increase in design to pump larger volumes of water.
The Aerial Apparatus will be cost shared equally between Parkland County, Spruce Grove and Stony Plain. With an initial budget of $1,500,000 the adjusted cost of the Apparatus will be $1,673,340, and require an additional $173,340. With this cost Parkland County will be responsible for an additional $57,780. Administration is recommending that the additional funds be sourced from MSI Capital.
Strategic Plan/Policy/Legal/Staff Implications
Financial Impact:
Cost: $57,780
Source of Funding: MSI Capital
Other