Capital Equipment Reserve Fund

CAPITAL EQUIPMENT RESERVE FUND (CERF) MEETING MINUTES For the meeting of March 20, 2012 Members Present: Mayor Donnalee Lozeau Alderman Brian McCarthy, President BOA Trustee David Fredette, Treasurer Members Absent: Carol Anderson, Citizen Member Trustee Non-Members Present: John Griffin, CFO Karen Smith, Business Mgr. Police Dept. Roy Sorenson, Street Superintendant Carolyn O’Connor, Finance/Administration Manager Chief Brain Morrissey – Fire Assistant Chief Galipeau -Fire Mayor Lozeau called the meeting to order at 11:02 A.M. Mayor Lozeau moved to accept the minutes of the 9/27/11 meeting – motion passed. A brief explanation was given by Mayor Lozeau and Treasurer Fredette on the need for the accelerated purchase plan as it relates to the grant deadlines. It was pointed out the packet has a summary of the plan including the effects to review. Requests from CERF – Police Department 2012 A motion was made by Treasurer Fredette to approve the request to transfer available CERF funds to replace nine (9) full size marked heavy-duty police patrol interceptors. Request to transfer available CERF funds in the amount of approximately $242,172 to replace the vehicles listed below. These units are on the CERF replacement schedule. Mileage shown as of February 7, 2012: YEAR UNIT # PLATE # Make/Model VIN# MILEAGE 2009 3 G11735 Ford/Crown Vic. 2FAHP71V69X135098 74,645 2010 7 G11723 Ford/Crown Vic. 2FABP7BV4AX126201 56,920 2009 8 G11722 Ford/Crown Vic. 2FABP7BV6AX126197 61,785 2008 9 G11729 Ford/Crown Vic. 2FABP7BV2AX126200 70,107 2009 11 G11731 Ford/Crown Vic. 2FABP7BVXAX140247 62,387 2009 12 G11727 Ford/Crown Vic. 2FABP7BV8AX126198 60,437 2008 18 G11734 Ford/Crown Vic. 2FABP7BV6AX126202 63,992 2005 19 G18393 Ford/Crown Vic. 2FAFP71WX5X151427 120,842 2005 21 G18932 Ford/Crown Vic. 2FAFP71W25X149283 96,280 It was explained by Karen the City will be trading in the above referenced vehicles to a third party who specializes in used law enforcement vehicles. The intent is to transfer any funds received to the CERF Trust Fund account. Vehicles are anticipated to have 100,000 miles on them at time of trade. Karen also reviewed details of the purchase and explained the new 2011 Ford Crown Victoria Police Package includes all major standard equipment and the following listed option packages, as well as one owner’s manual. The options include a limited slip 3.27 rear-end, 2-way radio installation, full wheel covers, uninstalled front door body side moldings’, LH spotlight, single key locking system, inoperative courtesy lamp, deck lid release, inoperative rear door handles, restricted rear window operation, upgraded exterior mirrors, and two-tone paint. The new units carry a cost included standard 3 year/36,000 mile bumper to bumper warranty, along with a 5 year/60,000 mile limited power train warranty which M-H-Q ups to 5 year/75,000 miles. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to transfer available CERF funds to replace four (4) mid-size unmarked police package vehicles. Request to transfer available CERF funds in the amount of approximately $76,260 to replace the vehicles listed below. These units are on the CERF replacement schedule. Mileage shown as of March 3, 2012: YEAR UNIT # PLATE # Make/Model VIN# MILEAGE 2001 D-18 264595 Buick/Lesabre 1G4HP54K51U295741 121,871 2006 D-16 725248 Chevy/Impala 2G1WS551669380956 89,700 2000 D-20 G22292 Chevy/Impala 2G1WF55K7Y9305697 94,356 2000 D-21 266397 Chevy/Impala 2G1WF55K7Y9307353 95,644 Karen reviewed and explained that the City will be trading in the above referenced vehicle. The new 2012 Chevrolet Impala Unmarked Police Package includes all major standard equipment and the following (attached) listed option packages and one owner’s manual. The options are listed on the attached MacMulkin NH bid correspondence dated 01/24/12. The new 2012 Impalas will carry a standard 3 year/36,000 mile bumper to bumper warranty, along with a 5 year/100,000 mile limited power train warranty. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to transfer available CERF funds to purchase one (1) 2012 Ford Interceptor for the test and evaluation in preparation for the purchase of the new make and model police vehicles. The state pricing, plus options for this purchase should not exceed $25,100. Karen explained how the department is reviewing three vehicles to determine the next buy of Police vehicles. The motion was approved unanimously. Requests from CERF – Fire & Rescue Department: FY 12 A motion was made by Treasurer Fredette to approve the request to us available CERF funds through G.O. Bonds, subject to approval of the bond in the amount of approximately $836,373 to replace Vehicle #G09270 – a 1995 Pierce Arrow 105’ Heavy Duty Aerial Ladder. The unit is currently housed at the Amherst St. Fire station and has accumulated over 99,000 road miles and 10,347 engine hours. This request is consistent with the department’s developed equipment replacement schedule; the Board of Fire Commissioners and Fire Administration anticipate purchasing a replacement Ladder truck with F12 CERF funds through G.O. Bond resolution -12-015. Pricing has been held at rates received in late 2011. Chief Morrissey and Assisstant Galipeau both reviewed the department’s renewal cycle for all vehicles and discussed the use of ladder truck. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace Unit #G04963 - 2004 Ford Expedition with available CERF funds as needed. Chief Morrissey explained this vehicle currently has 79,047 miles since it was placed in-service on July 16, 2004. The interior condition is fair (used), with the exterior in good condition. This is a gasoline engine on this vehicle. This request is consistent with the Department’s developed replacement schedule. The Board of Fire Commissioners and Fire Administration anticipate purchasing a replacement vehicle in FY 12. The proposed vehicle will replace the Safety Training car. This vehicle will then be downgraded to reserve status as the spare Deputy vehicle. The total cost for this new vehicle will be approximately $35,819.00. The motion was approved unanimously. Fire & Rescue Department: FY 13 Treasurer Fredette moved and explained that the Nashua Fire Rescue is anticipating making a request for the available CERF funds through G.O. Bonds in the amount of approximately $486,203 to replace Unit #G01024 - 2001 Pierce enforcer pumper truck. This request is consistent with the department’s developed equipment replacement schedule, the Board of Fire Commissioners and Fire Administration anticipate purchasing a replacement pumper truck with F13 CERF funds through G.O. Bond resolution -12-015. Contingent on approval. Both Chief Morrissey and Galipeau explained by allowing this unit to be ordered early the city can save some expected cost increases. The also reviewed the overall need and uses for the vehicle. The motion was approved unanimously. Request from CERF - Street Department 2012 A motion was made by Treasurer Fredette to approve the request to replace Vehicle #38 a 10 Wheel Dump with plow and wing for approximately $163,375. It was explained by Roy the replacement vehicle will be similar in kind. The current vehicle was purchased in 1991 and has considerable wear and tear issues including rot and rust. This past construction season the truck had to be taken out of the rotation due to engine and air system issues. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle #92 Street Sweeper for approximately $205,400. It was discussed and explained by Roy the current Sweeper was purchased back in 2000 and has well over 100,000 miles on it. In addition to the extensive miles and age there are significant issues with rust and rot. The unit has had welding restoration to the deteriorated hoppers. This past season the center belly broom had finally succumbed to its age and the machine had to be shut down. The replacement vehicle will be a CNG Tymco Model 600 BAH Regenerative Air Sweepers with dual steering mounted on a 2013 Freightliner M2106 chassis. Vehicle cost $303,400 – Energy Grant funding of $98,000 is available for the CNG upgrade. The motion was approved unanimously. Request from CERF - Street Department 2013 & 2014 A motion was made by Treasurer Fredette to approve the request to replace vehicle #14 a 2002 Ford pick-up truck for approximately $34,690. Roy explained the vehicle currently has 110,520 miles on it. The new Ford F350 will be used year round and in similar capacity where it is utilized to pull smaller trailers including air compressors as well as carry hand tools. It will also continue to be active in the winter to handle smaller inner city streets and help out larger trucks with dead end routes. This vehicle has been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. Vehicle cost $51,985 – Energy Grant funding of $17,295 is available for the CNG upgrade. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle #47 Street Sweeper for approximately $205,400. The current Sweeper was purchased back in 2000 and has well over 100,000 miles on it according to Roy and in addition to the extensive miles and age there are significant issues with rust and rot. The unit has had welding restoration to the deteriorated hoppers. The replacement vehicle will be a CNG Tymco Model 600 BAH Regenerative Air Sweepers with dual steering mounted on a 2013 Freightliner M2106 chassis. Vehicle cost $303,400 – Energy Grant funding of $98,000 is available for the CNG upgrade The motion was approved unanimously. Requests from CERF – Park Recreation Department 2013 & 2014 A motion was made by Treasurer Fredette to approve the request to replace vehicle #594 a Chrevrolet Lumina for approximately $17,375. It was reviewed by Carolyn the Division is replacing vehicle #594 which is a 12 year-old (2000) Chevy Lumina that is having engine issues. This vehicle is currently assigned to Parks and Recreation. The vehicle assignment will be moved to Administration as the Parks and Recreation no longer has a need for it as it was used sparingly. The new vehicle will be a CNG Honda Civic and will be used by the Director and City Engineer to conduct City business. This vehicle has been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. Vehicle cost $24,641 – Energy Grant funding of $7,266 is available for the CNG upgrade. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle #503 a 2002 Ford 4x4 with plow and vehicle #504 a 2001 Ford 4x4 with plow. The amount needed is approximately $108,300 from CERF. It was explained vehicle #503 currently has 74,599 miles on it and vehicle #504 currently has 58,803 miles on it. These vehicles are in need of extensive cab and frame repairs, plow and plow frame repairs as well as sander repairs due to wear and tear from the yearly use for winter operations. The replacement vehicles will be CNG Ford F350 which will be used year round. These trucks are responsible for pulling grass crew trailers for property maintenance. Winter operations will have these vehicles caring for snow plowing of the 6 inner city routes and the 14 elementary schools that Parks & Recreation are responsible for. These vehicles primary roll during winter is the removal of snow from the dead ends and narrow roads on the inner city routes as well as the playground areas and fire roads around the schools. These vehicles have been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. The cost of the two vehicles is $162,290 each – Energy Grant funding of $53,990 is available for the CNG The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle # 530 a 2002 Ford pick-up truck for approximately $27,550 from CERF. As reviewed by Carolyn this vehicle currently has 127,033 miles on it. This vehicle is in need of extensive cab body repairs, and will need clutch work before the end of the year. The replacement vehicle will be a CNG Ford F250 and will be used year round. This truck is responsible for pulling grass crew trailers for property maintenance. Winter operations will have these vehicles caring for sidewalks and other duties maintaining the 6 inner city routes and the 14 elementary schools that Parks & Recreation are responsible for. This vehicle has been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. Vehicle cost $44,845 – Energy Grant funding of $17,295is available for the CNG. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle # 599 a 2003 Ford 4x4 with plow for approximately $43,935. The vehicle currently has 61,000 miles on it. The vehicle is starting to show body rust and has had electronic problems the past two years. These issues are related to the yearly use for winter operations. As explained by Carolyn the replacement vehicle will be a CNG Ford F350 will be used year round. This truck is responsible for pulling trailers and for property maintenance. Winter operations will have this vehicle caring for snow plowing of the 6 inner city routes and the 14 elementary schools that Parks & Recreation are responsible for. These vehicles primary roll during winter is the removal of snow from the dead ends and narrow roads on the inner city routes as well as the playground areas and fire roads around the schools. This vehicle has been moved up on the replacement schedule from to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. Vehicle cost $70,930 – Energy Grant funding of $26,995 is available for the CNG upgrade The motion was approved unanimously. Requests from CERF – Solid Waste (Landfill) Department 2012 A motion was made by Treasurer Fredette to approve the request to replace vehicle # 58 a 2003 Chevrolet Malibu– Superintendent’s Vehicle for approximately $32,090. The vehicle currently has 59,078 miles but has been unreliable. The replacement vehicles will be a CNG Ford-F250. The Ford F-250 will be more versatile and practical vehicle for the Department. It will be used in the Four Hills Landfill, for cart deliveries and repairs and maintaining closed landfills. Vehicle cost $49,385 – Energy Grant funding of $17,295 is available for the CNG upgrade. The motion was approved unanimously. Requests from CERF – Solid Waste (Landfill) Department 2013 & 2014 A motion was made by Treasurer Fredette to approve the request to replace vehicle # 183 – Automated Refuse Truck for approximately $251,473 of CERF. The current mileage on Vehicle # 183 is 83,860. The vehicle is in need of replacement due to the age of the truck and extensive rust and rot on the body. The replacement vehicle will be a CNG Automated Refuse Truck. This vehicle has been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. Vehicle cost $286,064 – Energy Grant funding of $34,591 is available for the CNG upgrade. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle # 75 – Packer Refuse Truck for approximately $200, 963 in CERF. The current mileage on Vehicle # 75 is 66,593. The vehicle is in need of replacement due to the age of the truck and extensive rust and rot on the body. The replacement vehicle will be a CNG Packer Refuse Truck. This vehicle has been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. Vehicle cost $258,431 – Energy Grant funding of $57,468 is available for the CNG upgrade. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle # 130 – Semi Automated Refuse Truck, vehicle # 199 – Semi Automated Refuse Truck for approximately $504,764 from CERF. Current mileage on Vehicle #130 is 23,102. Current mileage on Vehicle #199 is 20,073. The vehicles are in need of replacement due to the age of the trucks and extensive rust and rot on the bodies. The replacement vehicles will be a CNG Semi-Auto Refuse Trucks. These vehicles have been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. The cost of the vehicles is $573,946 – Energy Grant funding of $69,182 is available for the CNG upgrade. The motion was approved unanimously. A motion was made by Treasurer Fredette to approve the request to replace vehicle # 154 – Metal Oversized Truck for approximately $160,000 from CERF. Current mileage on Vehicle #154 is 73,221. The replacement vehicles will be a CNG truck. These vehicles have been moved up on the replacement schedule to take advantage of the energy grant that will allow the truck to be replaced as a CNG vehicle. The cost of the vehicles is $200,000 – Energy Grant funding of $40,000 is available for the CNG upgrade. The motion was approved unanimously. The trustees discussed the CERF balance summary report along with the new accelerated purchase plan. It was discussed that funds should be returned to CERF since the PWW purchase deal was completed and some funds were transferred from CERF for the PWW purchase. Treasurer Fredette also explained the need to complete the FY 12/13 update to CERF and complete the CERF rules and regulations. Motion to Adjourn A motion was made by Alderman McCarthy to adjourn the meeting at 11:54 A.M. The motion passed.