HomeMy WebLinkAboutMinutes - May 8, 1990 SM407
SPECIAL MEETING -
LODI CITY COUNCIL
MAY 8, 1990
7:00 A.M.
305 WEST PINE STREET
LODI, CALIFORNIA
The meeting was called to order at 7:00 a.m. by Mayor Snider.
Roll Call was recorded by the City Clerk as follows:
Present: Council Members - Hinchman, Olson, Pinkerton, and Snider
(Mayor)
Absent: Council Members - Reid
Also Present: City Manager, Assistant City Manager, City Attorney,
Fire Chief, and City Clerk
CONSIDERATION OF PURCHASE
OF REPLACEMENT FIRE
AERIAL LADDER TRUCK
CC -20 The matter was introduced by staff who presented the following report
which had been prepared by Fire Chief Hughes.
The Fire Department has requested that a sum of $400,000.00 be
budgeted in the 1990-01 budget for the purchase of a 75 foot aerial
ladder truck. Since our preliminary budget hearing, at which the
$400,000.00 was tentatively approved, we have surveyed the market to
ascertain the availability of demonstrator ladder trucks which are
prevalent this time of year due to the number of conferences being
held throughout the country. Our intent in checking the availability
of these units was to see if we could save any substantial amount of
money through the purchase of a demonstrator. We have looked at two
ladder trucks and have received proposals from two manufacturers,
Simon LTI in the amount of $319,836.00, and Golden State Fire
Apparatus in the amount of $315,751.00. It is our recommendation
that the City pursue the purchase of a demonstrator ladder truck from
Golden State Fire Apparatus, Inc. immediately.
There are several reasons why we are recommending that the City take
action on this matter prior to the approval of our 1990/91 budget.
They are as follows:
1. Pending California Vehicle Code changes will affect the design of
ladder trucks.
On January 1, 1991 the California Vehicle Code will require that all
vehicles with rear axle weights in excess of 20,000 pounds be
equipped with dual rear axles. This will cause all fire ladder
trucks delivered to buyers after December 31, 1990 to be three axle
vehicles. This will increase the price somewhere in the neighborhood
of $15,000 and will increase the wheel base and turning radius of the
vehicles. All of these are features we would like to avoid if
possible. Since delivery of a new ladder truck generally takes 12 to
18 months, any unit we received from a bid process initiated after
w
July 1990 would not be received prior to December 31, 1990 and would
therefore be a three axle vehicle.
2. There are a limited number of 75 foot, two axle demonstrator
ladder trucks available.
We found that there are very few of these demonstrators available at
this time. - Golden States Fire Apparatus has one unit and Simon LTI
has two. The Golden State unit is a Pierce quint and will be sold to
a city in Michigan on May 15, 1990 if we do not commit to purchasing
it prior to that date. The Michigan city opened bids last week and
this unit was the low bid. The Simon LTI unit that we looked at is
being demonstrated to a city in Idaho and one in Oregon at this
time. We have not been informed of any pending sale on this unit,
but the sales price is much lower than a bid price on a new unit and
the sales people feel confident the unit will be sold soon.
The only other manufacturers of a 75 foot ladder trucks are Emergency
One, who has given us a verbal quote of $345,000, Seagrave, and
Sutphen. Seagrave does not have a West coast repair facility that I
am aware of and for this reason we haven't contacted them. Sutphen
has an aluminum ladder and we feel is not comparable to the other
units. Pierce and Emergency One (E1) are both serviced by Hy -Tech in
Oakdale.
3. The cost savings that will result from taking action now is
substantial.
The following are recorded bid prices which we have been given by the
manufacturers. We have not checked these with those who made the
purchases, but feel that the manufacturers have represented the
prices as they were bid. We believe this because both manufacturers
provided us with some of the same bid results.
4/5/90, Shaker Heights, Ohio:
Pierce = $386,179
LTI = $405,700
Sutphen = $360,750
4/12/90, Salem, Ohio:
Pierce = $369,895 (demonstrator)
LTI = $339,846
Sutphen = $330,742
1/31/90, St. Louis, MO., (Fire District in the area)
Pierce = $372,775
LTI = $330,945
E1 = $381,100
Sutphen = $361,501
1/29/90, Maumelle, Arkansas
Pierce = $383,725
LTI = $343,963
El = $383,725
The average bid by each manufacturer in•these examples is:
— E1 = $382,413
Pierce - $378,144
LTI = $355,114
Sutphen = $350,998
A comparison of these average bid prices and the price quotes we have
received from Pierce (Golden State Fire Apparatus, Inc.) and LTI
indicates a substantial savings.
LTI:
Average bid = $355,114
Price quote = $319,836
Estimated savings $ 35,278
Pierce:
Average bid = $378,144
Price quote = $315,751
y Estimated savings $ 62,393
In the proposals received from these two manufacturers both offer a
lease purchase program. Our review of these indicates that there are
some differences in the payment schedules and interest rates. As an
example Simon LTI requires a $100,000.00 down payment and Pierce
requires a 20% (approximately $70,000.00) down payment. It is our
recommendation that the Finance Department review and make comments
on the proposals for lease purchase if we intend to pursue their use.
Pierce will accept a letter of intent to purchase to allow the City
time to consummate financing arrangements and will negotiate a time
frame for holding the unit for the City.
The cost savings potential of acting now coupled with the potential
cost increases which will result from the new California Vehicle Code
requirement and the negative design and operational factors
associated with the three axle vehicle form the basis for our
recommendation to purchase the Pierce at this time. We are prepared
to assist in whatever way necessary to accelerate the process of
acquiring this equipment and think that the cost savings alone
warrants quick action.
Following discussion with questions being directed to staff, Council,
on motion of Council Member Pinkerton, Olson second, authorized the
lease purchase of a Pierce Quint 75 Aerial Ladder Fire Truck in the
amount of $315,751 and appropriated the necessary funding from the
appropriate fund.
TAXI CAB SERVICE
CC -33 Assistant City Manager Glenn addressed the City Council regarding this
CC -50(b) matter indicating the City Cab Company's wishes to discontinue Taxi
Cab Service in the City of Lodi.
410
Mr. Don York spoke on behalf of the permit holder who had
laryngitas. Mr. York indicated that the taxi service is a
non-profitable operation due primarily to the cost of insurance and
dispatch. The following Financial Statement for January 1990 - March
1990 was submitted for City Council review.
LG.J: L� v�:l' to 1,.; - r.. 1: i.,
INCOME SiATE MEN1
for 3 months ending Marcn til. 3440
TOTAL NET INCOME (LCSS)-
DIAL-A-RIDE AND LODI Ci7Y CAB (5,063.461
PREPARED WITHOUT 1NDEPENDEN') VERIFICATION
s1
DIAL -A -RIVE
LODI C17Y CAB
INCOME
64,461.00
1 . l f.1 . CV6
COST OF SALES:
FUEL COSTS
1.761.3`,
0.00
VEHICLE MAINTENANCE
2.596.4P
(1.00
TOTAL COST OF SALES
4.357.97.
(1.00
GROSS PROFIT
60,103.17
1.161.98
OPERATING EXPENSES:
ADVERTISING
109.00
109.00
ACCOUNTING
470.00
470.00
CONTRIBUTIONS
0.00
0.00
DUES & SUBSCRIPTIONS
0.00
0.00
EMPLOYEE MEDICAL EXPENSES
0.00
0.00
INSURANCE -GENERAL
0.00
2,400.00
INSURANCE-WORKMANS COMP
5,054.77
96.86
INTEREST
961.37
0.00
LEGAL
0.00
0.00
LICENSE
10.00
10.00
OFFICE SUPPLIES
70.00
70.00
PROMOTION
45.30
45.30
REPAIRS & MAINTENANCE
15.00
15.00
SHOP SUPPLIES
0.00
0.00
PAYROLL TAXES
3,714.09
1.591.74
TELEPHONE
211.97
211.98
UTILITITES
526.60
526.61
SALARIES & WAGS
'26,954.63
8,984.94
TIPS
0.00
0.00
OUTSIDE SERVICES
36.00
36.00
TOTAL OPERATING EXPENSES
38,178.93
14,602.45
INCOME FROM OPERATIONS
21,924.24
(13,440.471
OTHER EXPENSES:
DRAWING- RAYMOND NEEL
8,034.50
0.00
PAYMENTS- RAE MARGRAVE
5,532.73
0.00
NET INCOME
6,357.01
(12,440.47)
TOTAL NET INCOME (LCSS)-
DIAL-A-RIDE AND LODI Ci7Y CAB (5,063.461
PREPARED WITHOUT 1NDEPENDEN') VERIFICATION
s1
Mr. York proposed that a $1.00 increase be imposed on all Dial -A -Ride
tickets sold which funds would be used to subsidize the City Cab
Company operation. A lengthy discussion followed with questions
being directed to staff, to Mr. York and to the permit holder.
I
On motion of Mayor Snider, Hinchman second, the City Council
indicated its interest in continuing some type of transportation
services during the hours Dial -A -Ride is not in operation. Further,
the City Council directed staff to review the matter and to bring
back to the City Council alternative funding selections and to look
into other companies who may be interested in taking over this
operation.
ADJOURNMENT
The meeting was adjourned at 7:55 a.m. by Mayor Snider.
Attest:
Alice M. it. the
City Clerk