City of Revelstoke

Council Report

Date:

May 26, 2015

File No:

To:

Mayor and Council

From:

Rob Girard, Fire Chief

Subject:

Approval to Issue an Invitation to Tender for the Purchase a Fire Pumper

Truck

1. ISSUE
The current 1986 International Superior apparatus has surpassed its life expectancy.
2. RECOMMENDATION
THAT the Fire Chief be approved to issue an Invitation to Tender for the
purchase of a Fire Pumper Truck, in accordance with the City of
Revelstokes Financial Plan for 2015-2019.
3. CAO COMMENTS
3.1. Reviewed. GDI.
4. BACKGROUND
4.1. Revelstoke has a 1986 International Superior apparatus (Engine 2) in its fleet
which is 30 years of age and requires replacing.
4.2. The City of Revelstoke should be replacing aging apparatus in the 20 year time
frame, as set out by the NFPA 1901 Standard for Automotive Apparatus.
4.3. The Fire Chief has provided more information by way of a Business Case that outlines a
needs assessment of this replacement, and is attached to this report.
5. FINANCIAL IMPLICATIONS
5.1. The 2015-2019 Financial Plan anticipates the replacement of Engine 2 in late 2016.
5.2. The borrowing for this apparatus will be through Municipal Finance Authority by way of
a five year lease at an annual cost of approximately $94,000 including interest.
5.3. The City of Revelstoke has no other resources available to fund this purchase.
5.4. The lease repayments will be paid for out of the Fire Reserve Fund.
5.5. There is some risk associated with US/CAN currency exchange rate fluctuations. The
Financial Plan has attempted to allow for this based on current experience.

Page 1 of 2

6. DISCUSSION
6.1. The Invitation to Tender for a Fire Pumper Truck will allow an opportunity for a vendor
to bid on new apparatus.
6.2. The Invitation to Tender for a Fire Pumper Truck will also allow an opportunity for a
vendor to bid on existing stock, or a demonstrator unit similar to the Ladder 6 purchase.
6.3. These alternatives could provide a significant savings to the City of Revelstoke, while
providing the Firefighters with an apparatus that is safe and of excellent quality.
7. RELEVANT LEGISLATION
7.1. NFPA 1901 Standard for Automotive Apparatus.
8. ATTACHMENTS

Attachment A Fire Pumper Truck Business Case, 2015-05-26

9. RECOMMENDATION AND OPTIONS:

9.1. Recommendation:
THAT the Fire Chief be approved to issue an Invitation to Tender for the
purchase of a Fire Pumper Truck, in accordance with the City of
Revelstokes Financial Plan for 2015-2019.
9.2. Option 1: Defer the purchase of the Fire Pumper Truck in the financial plan.

Page 2 of 2

REVELSTOKE FIRE RESCUE SERVICES

FIRE PUMPER TRUCK
BUSINESS CASE

TO:

MAYOR AND COUNCIL

PREPARED BY: ROB GIRARD, FIRE CHIEF

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 1)

MAY 26, 2015

Executive Summary
Background
Revelstoke has a 1986 International Superior Pumper in its fleet which is 30 years of age and
requires replacing. The City of Revelstoke should be replacing aging apparatus in the 20 year time
frame as set out by the NFPA 1901 Standard for Automotive Apparatus.
The Fire Chief will be exploring options, through the Invitation to Tender process, to purchase a new,
stock or demonstrator Fire Pumper Truck. These initiatives are of significant financial advantage to the
City and should allow for a savings on the Financial Plan while providing the Firefighters with an
apparatus that is safe and of excellent quality.
The delivery of the apparatus is anticipated to be late 2016 or in the 2017 budget year, depending on
production.
The Fire Chief has provided more information by way of a Business Case that outlines the needs
assessment for this purchase.
Goals and Objectives
In addition to reducing risk of injury to firefighters by ensuring apparatus are decommissioned as set out
in NFPA 1901, the main goal of purchasing a Fire Pumper Truck is to reduce the City of Revelstokes
Public Fire Classification rating.
The specific objective of the main goal is to take the current Public Fire Classification which is 7 and
reduce that number to 5, as it relates to apparatus grades. From 1985 to 2010, the City of Revelstokes
Public Fire Classification grade was 5 and that number should be our target grade.
Alternatives
There are two alternatives available to Council. The first alternative is to maintain the status quo with
the 1986 International Superior Pumper Truck and risk manage accordingly. This alternative did not
form my recommendation as this option would have further impacts and downgrades on the Public Fire
Classification. The second alternative is to seek a used Fire Pumper Truck. This alternative could meet
the goals and objectives of this business case but did not form part of my recommendation. Used
apparatus are limiting due to their age and the amount of years the City of Revelstoke would gain from
them under the Fire Grading Index. The maximum credit in the Fire Insurance Grading Index is 15 years. If a
used apparatus were purchased, for example, a 2007 Fire Pumper truck, it would be 9 years old in 2016, and it
would only receive full recognition for fire insurance grading purposes for 6 years.

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 2)

Benefits / Cost Analyses Summary

The following graph shows that purchasing a new apparatus, as opposed to a used one, benefits the City
of Revelstoke by having more years where the apparatus receives maximum credit under the Fire
Insurance Grading Index.

APPARATUS COST AND DEPRECIATION

600,000

Apparatus Life Cycle Cost and Depreciation

500,000

New 2016 Pumper (age 0 years) $500K

MAX FUS
GRADE
REACHED

Used 2007 Pumper (age 9 years) $225K

20 YRS OLD SELL/TRADE

400,000

MAX FUS
GRADE
REACHED

300,000

20 YRS OLD SELL/TRADE

200,000

100,000

0
1

2016

10 11 12 13 14 15 16 17 18 19 20

YEAR

NB: Heavy equipment should be replaced every 5-7 years so that maximum trade in value is realized and
less expenditures in maintenance with the added benefit of a current piece of equipment.
Years
1-2
2-3
3-4
4-5
5-6
6-7
8-15

Depreciations
Percent
15%
10%
7%
5%
5%
5%
10%

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 3)

The following NFPA graph shows that reducing Public Fire Classification grades reduces premiums paid
by the commercial sector.
Percentage Reductions for Commercial Property Insurance

City Class Change

Percent of Premium Decrease

Class 10 to Class 9

15%

Class 9 to Class 8

9%

Class 8 to Class 7

5%

Class 7 to Class 6

5%

Class 6 to Class 5

5%

Class 5 to Class 4

5%

Class 4 to Class 3

8%

Class 3 to Class 2

3%

Class 2 to Class 1
Denotes 1984 2010 Class
Denotes 2010 and Beyond Class

2%

The following three graphs show an analysis of FUS rate increases for commercial buildings in
Revelstoke.

15,000 Sq Ft Commercial Building

9
8
7
6
Class

5
4
3
2
1
0
1984
Target

2009
$5K

2010
$5K

2011
$5K

2012
$5K

2013
$5.5K

2014
$5.5K

2015
$5.5K

2016
$5.8K

Premiums

Analysis: When FUS increases to 7 = $500.00 x 25 years = $12,500.00 Premium Increase

Fire Pumper Truck Business Case, 2015-05-26
Attachment A (Page 4)

All City Owned Buildings

9
8
7
6
Class

5
4
3
2
1
0
1984
Target

2009
$76K

2010
$81K

2011
$87K

2012
$90K

2013
$91K

2014
$110K

2015
$110K

2016
$115.5K

Premiums

Analysis: When FUS increases to 7 = $34,000 x 25 years = $850,000.00 Premium Increase. In 2013, an
insurance appraisal was completed on all City owned buildings which resulted in a significant increase
from $85 million in 2012 to $108 million in 2014 of insurable values and therefore, an increase to City
paid premiums.

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 5)

1/4 of all Commercial Buildings

9
8
7
6
Class

5
4
3
2
1
0
1984
Target

2009
$500K

2010
$500K

2011
$500K

2012
$500K

2013
$550K

2014
$550K

2015
$550K

2016
$575K

Premiums

.
Analysis: FUS increase to 7 = $50,000.00 x 25 years = $1,250,000.00 Premium Increase
Qualitative Benefits Summary
There are benefits that do not lend themselves to being financial in nature, but rather significantly
contribute as a benefit nonetheless. Those qualitative benefits are as follows:

Improved customer service; apparatus can perform functions that the existing one cannot.
Improved firefighter morale, pride and confidence; Firefighters would be training on a current,
user friendly and reliable piece of equipment.
Improved environmental impact; a new apparatus will emit less carbon emissions than 1986
technology.
Improved organizational image of professionalism.
Improved firefighter safety; rollover protection, air bags, seatbelt restraint systems, ABS brakes,
traction control, and electronic built in safety devices.

Linkage to Community Priorities

This initiative relates to the 2013 Revelstoke Sustainability Action Plan with respect to Priority Action # 1
Monitor resources needed for service expansion as well as #4 Enhance emergency preparedness, by
continuing to implement training and equipment upgrades. The Fire Pumper Truck is an investment that
supports long term community priorities, which in turn supports our goals of reducing risk of injury to
firefighters and reducing the Public Fire Classification Rating which is a benefit to business.
Risk Analysis
The City of Revelstoke has 2 potential risks of concern. The first being the 1986 International
Superior Pumper, although regularly maintained, has met its life expectancy and creates safety
Fire Pumper Truck Business Case, 2015-05-26
Attachment A (Page 6)

risks for our firefighters operating on it. The second is the Public Fire Protection Classification
downgrade from 5 to 7, with respect to aging apparatus. This downgrade has proved to affect the
commercial insurance premiums paid by business. The risk in not taking proactive steps to improve
the grade to the 1984 level of 5 could result in yet a further downgrade.
Conclusions
It is important, as a City, to take the necessary steps to reduce the risk of injury to firefighters by
ensuring aging apparatus are decommissioned as set out in NFPA 1901. It is also important that we
reduce the City of Revelstokes Public Fire Classification rating of 7 to the 1984 level of 5. Both of these
specific goals are achieved by implementing the recommendation in this Business Case.
Recommendation
This Business Case recommends issuance of an Invitation to Tender for the purchase a Fire
Pumper Truck, in accordance with the City's Financial Plan for 2015-2019.

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 7)

Bibliography
1. To determine Apparatus Life Cycle Costs:
2010 Fire Underwriters Survey, City of Revelstoke, SMC Risk Management Services Inc.
Municipal Consulting Services
Brindlee Mountain Fire Apparatus, www.firetruckmall.com, Jeremy McCoy Alabama,
USA
2. To determine the percentage reductions for commercial property insurance:
NFPA Fire Protection Handbook (19th Ed)
3. To determine estimated premiums on 15,000 sq. ft. commercial buildings:
RCU Insurance, Robert Devlin, Supervisor General Insurance Operations Revelstoke,
BC
4. To determine estimated premiums on all City owned buildings:
City of Revelstoke, Finance Department, Graham Inglis, Director of Finance Revelstoke,
BC
5. To determine estimated premiums on of all commercial buildings:
RCU Insurance, Robert Devlin, Supervisor General Insurance Operations Revelstoke,
BC

Appendices
1. Letter in Support of Business Case Revelstoke Credit Union Insurance

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 8)

Appendix 1

ENSURANCE
SERWCES
LTD
May 10, 2015.

Revelstoke

Fire Rescue Services

c/o The City of Revelstoke

PO Box 170

Revelstoke, BC, VOE ZSO

Attention:

Fire Chief Rob Girard,

hank you Chief Girard for our discussions and your continued work and efforts in
trying to improve the City of Revelstoke's Fire Underwriting Survey (FUS) Grade.
Survey? (FUS) is a national organization
NOTE: Fire Underwriters
by
adniinistered
GPTA Information
Intelligence,
formerly
CG! Insurance
Easiness
Services, formerly
the Insurers
Advisory Organization
and Canadian
Underwriters
Association.
FUS
provides
data on public fire protection
for fire insurance
statisticai
work and
underwriting
purposes
of subscribing
companies.
Subscribers
of Fire
insurance
Survey
Underwriters
approximately
represent
85 percent
of the private sector
and casualty
property
insurers
in Canada. While Fire Underwriters
Survey is not
im/oived in rate making matters,
the information
provided
through
the Fire
Grading Index is a key factor used in the tieveiopmerit
Insurance
of Commercial
&
Personal
Lines property
insurance rates.

It has been a few years now that our FUS Grading was lowered from a very
respectable FUS Grade 5 for a city our size, to that which we currently at, which is a
FUS Grade 7. A brief description on FUS is as follows:

"A Grade 5 represents

a lesser level of protection than that a larger city would expect
with a full time fire department, but is very respectable for a full time & volunteer
based department.
Grade 68 represents
small towns which find it too costly to provide the same level
of capability to control or manage potential large fires, particularly if they have
hazardous occupancies or large blocks of older buildings. Primarily for this reason,
the great majority of smaller Canadian communities fall into this class."

The insurance industry could supply me with examples of direct costs reflective to
the downgraded FUS if needed. But at a guess, I would estimate it to be
approximately 10% over the years.

.\

Asaalways,
I will make any resources from myself and my organization
available to
your efforts in trying to improve the fire protection and the FUS
you t6s\upport
As it is not only property,
but people's lives that we put at
/Grading bf,\Revelstoke.
risk.

K. Re_

Ff? box

Phone: ZEi*;i.$Ji.i;Ziii
ioti Free: i.$iL%i,Eii

Eiifji

Retirgigiaka? 5C

i-'.j.:

Z7s:?.@35i%

Fire Pumper Truck Business Case, 2015-05-26

Attachment A (Page 9)