TAMRMS#: B06
8.3
REQUEST FOR DECISION
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Budget Increase - Fire Apparatus - Firehall #4
Presented by: Everett Cooke, Director (Fire Chief), Emergency Services
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RECOMMENDED MOTION(S)
recommendation
That the budget for capital project 420334 Fire Aerial Apparatus (FIRE-016) be increased from $2,469,800 to $3,469,800 to be funded from Borrowing Bylaw 22/2021.
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SUMMARY
Administration is bringing forward a request to increase the total amount of funding available for the purchase of an aerial apparatus for Fire Hall 4, by 1 million dollars, increasing the amount available from $2,469,798.00 to $3,469,798.00, to be funded from Borrowing Bylaw 22/2021. This amount is inclusive of the purchase and equipping of a new aerial apparatus.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
July 5, 2021 - BL-21-054
That Bylaw 22/2021, being a Borrowing Bylaw to design and construct Fire Hall #4 and purchase related equipment and land, be read a third and final time.
January 23, 2024 - CM-24-002
That the budget for Project Charter FIRE-005 be increased from $16,341,000 to $19,341,000 to be funded from Borrowing Bylaw 22/2021, that Administration use the additional funding to build Fire Hall #4 using a conventional construction methodology.
BACKGROUND AND DISCUSSION
Identified in the City of St. Albert’s 2002 Long Range Plan, the need for a new fire hall on the City’s north end was intended to enable the St. Albert Fire Service (SAFS), to continue providing excellent customer service to residents and business, in a timely manner.
The original construction date of Fire Hall #4 was identified for 2012 then, following a Service level Review for SAFS, the construction timeline was moved to 2019-2022. In January 2022, 6.667 ha. of land (17.3 acres) along St. Albert Trail was purchased for 2.55 million, allowing for both the construction of Fire Hall #4 and a future Transit Centre Park & Ride. The land purchased is currently un-serviced.
With the change to the construction method of Fire Hall #4, planning and designed was delayed however, on August 26th representatives from City departments had an inaugural meeting with the Integrated Project Delivery (IPD) Coach discussing conditions of satisfaction for this new building. Regular meetings are scheduled as this new facility starts to move ahead.
Included with the construction of the new fire hall is the hiring of 32 additional staff as well as the procurement of three new apparatus: one Water Tender, one Engine, and one Aerial. New staff and apparatus are needed to ready Fire Hall #4 with the necessary resources to provide services to the City’s north end.
The new Water Tender for Fire Hall #4 has been purchased and is expected to be delivered to St. Albert in Q3 of 2024 while a Request for Quote has been released for the purchase of two new fire Engines with an option for a third (one growth and two replacement). This RFQ is focusing on acquiring stock units which will reduce costs, while requiring an expedited delivery as well as consistency in design. The RFQ stipulates for the delivery of the first unit within 12 months of signing the contract.
The Aerial Apparatus for Fire Hall #4 was approved for procurement in 2022. The budget originally approved for this purchase was $2,218,249 with another $251,549 required for purchasing the necessary equipment for the unit , for a total of $2,469,800 . The amount identified in Capital Project Charter FIRE-016 for the new aerial, was arrived at by adding 2% a year to the purchase price of the City’s existing aerial, which was purchased in 2016.
Since the COVID-19 Global Pandemic, the construction of new fire apparatus has been significantly impacted. Build times for specification-built apparatus have increase from the historical practice of 12 to 24 months to a term of 48 to 52 months for larger units while the cost of fire apparatus continues to rise significantly. As reported by industry vendors, in many cases average increases of 2% are now being applied to the purchase price quarterly, versus the historical practice of applying increases annually.
To aid St. Albert in acquiring a second front-line aerial unit, Fire Leadership has explored purchasing this new apparatus through vendor stock programs. Announced monthly, vendors advise customers of units that are becoming available with the caveat to the purchase being that a potential customer must provide a Letter of Intent (LOI), to hold the unit until a purchase contract can be signed. Purchasing a new aerial using this method results in an expected delivery timeline of 12 months as well as cost savings in construction as the unit is built to a standard specification.
The request for additional funding for St. Albert’s second aerial apparatus is to accommodate the increase in the purchase price as well as to be in a position to readily procure a forthcoming stock unit as they are announced.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Units like the stock units soon to be available have been reviewed by the St. Albert Fire Service Apparatus Committee and Deputy Chief of Operations as recently the committee viewed a similar unit purchased by the Lethbridge Fire Department.
IMPACTS OF RECOMMENDATION(S)
Financial:
If the $1 million budget increase is approved, the total project budget for Fire Hall #4 will increase from $24,130,300 to $25,130,300, to be funded through the original borrowing bylaw which provided borrowing authorization up to $26,500,000.
If the motion passes and there are indications that the project may go over budget due to unforeseen circumstances, Administration may be required to bring forward a new borrowing bylaw in order to complete the projects.
Compliance & Legal:
If approved, the recommendation will not increase the amount of the borrowing bylaw ($26,500,000) but rather, the Project Charter (FIRE-016) for Fire Hall #4 would be increased to allow for the purchase of the new aerial apparatus.
Program or Service:
Aerial apparatus are specialty units that are designed to not only transport firefighters and equipment to and from an emergency scene, but they are also indented to deliver high volumes of water onto a fire from height. In addition, they provide elevated access and egress points to and from a structure for both firefighters and occupants. Further, they may serve as a resource during technical operations.
The procurement of this second front line aerial unit will provide the SAFS the necessary resources to continue providing excellent customer service to residents as well as, to address the additional demands being realized by the continued growth of the community as approved developments continue to be constructed higher.
Organizational:
This request will not have any additional organizational impacts. The Project Charter for Fire Hall #4 has identified the necessary staffing and facility space for this new unit.
It is understood that Fleet Services will include this new unit into the regular and annual maintenance routine and inspection programs. These services are provided by Fleet Services and as necessary, by contract service providers.
Risks
Approving the budget increase will limit the amount available should addition funds be required for the construction of Fire Hall #4.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
None at this time.
ALIGNMENT TO SERVICE DELIVERY
Public Safety: Fire Response
Response to all types of emergency events including fire, rescue, medical first response, service calls, dangerous goods releases, motor vehicle accidents and ice/water rescue.
IMPACTS OF ALTERNATIVES CONSIDERED
ALTERNATIVE 1: That Council direct Administration to procure a specification-built aerial apparatus.
Financial:
A specification-built aerial apparatus will also require additional funding over the total of $2,218,249 that was identified in Capital Project Charter FIRE-016. Specification builds are more costly as designs vary from stock units requiring input from designers as well as changing construction practices.
Compliance & Legal:
None at this time.
Program or Service:
The City of St. Albert would continue to rely on surrounding municipalities for providing a second or back up, aerial unit to emergencies within the City. Although this avenue is practiced today, there is no guarantee that when another service is called to for assistance, that they will respond. Estimated delivery times for a specification-built unit could be as long as 52 months from the award of contract.
Organizational:
The specification outlining the design of a new purpose-build aerial apparatus for St. Albert is complete. This specification would be used in the creation of a Request for Proposal.
Risks
Further delays in procuring an aerial apparatus will result in further cost increases to the overall purchase price. In addition, purchasing a new aerial apparatus to our specification will result in further increased costs. Estimated delivery times for a specification-built unit could be as long as 52 months from the award of contract.
ALTERNATIVE 2. Do nothing.
Financial:
At a 2% per quarter cost escalation, the longer we delay the purchase, the more expensive the unit will be.
Compliance & Legal:
None at this time.
Program or Service:
If the new apparatus is not purchased, SAFS will be relying on mutual aid partners more and there are expected time delays of getting apparatus on scene.
Organizational:
None at this time.
Risks
None at this time.
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Report Date: October 1st, 2024
Author(s): Everett Cooke
Department: Emergency Services
Department Director: Everett Cooke
Managing Director: Diane McMordie
Chief Administrative Officer: Bill Fletcher