Nov. 10, 2009
Finding Conciliatory Ground to Preserve Fire Apparatus Purchase Price(s)
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – After procedural squabbles concerning the proposed purchases of two fire trucks, the administration and council found budget reallocation middle ground which would not have council committing money in advance to future purchases.
The problem arose when the interim fire chief Tony Hazlet observed in July 2009 that a 1991 pumper and a 1991 aerial truck were at the end of their useful lives. Hazlet became aware of Environmental Protection Administration regulations taking effect in 2010 which would push the cost of fire truck replacements much higher than current purchase prices. He learned that orders placed for delivery in 2010 could be placed until the end of December 2009.
By purchasing the two replacement trucks before the new regulations take effect, the city would save about half a million dollar over the life spans of the fire apparatus.
During their haste to take advantage of the opportunity, along with changing personnel in the department, communication lagged. The Fire Department would need council’s approval for the equipment that would be part of the 2010-2011 budget.
However, the advance allocation of funds steps on procedures, including the full budgeting process and those other projects that compete for a limited amount of C.D.B.G. funds.
Based on direction provided at the work session, members of the administration and the fire department met with Finance Director Deron Runyon.
Hazlet told council, too, that the department since 2006 had spent nearly $60,000 on repairs to the 1991 pumper and aerial units.
A solution came for the $347,680 pumper. A ten year lease purchase commitment through an in house Fire Department budget revision.
Runyon proposed encumbering funds already in the 2009-2010 budget for the pumper. Money designated from the Cabell County Fire Levy for safety gear and other equipment (approximately $40,000) would be reassigned to cover the pumper.
Asked if this alteration would create any safety concerns, Deputy Chief Hazlet answered ‘no,’ stating that the decision was a matter of shifting priorities within the department.
Mayor Kim Wolfe clarified that he could approve the line item revision, but council must authorize the payment. City Attorney Scott McClure agreed.
Council chairman Jim Insco, who had previously told HFD representatives they could not bring the aerial platform truck to his committee which distributes C.D.B.G. funds until April 2010, entered no objection to the decision on the pumper.
However, the more expensive aerial platform truck which had been turned down for advance CDBG funding proved more cumbersome in finding creative financing options.
Runyon explained that having looked at current and previous budgets for the HFD, the department had about $135,000 annually for lease/purchase of equipment. Some of the equipment will be paid off. He based projections on maintaining a status quo on that line item.
Councilman Jim Ritter raised the specter of pensions and unresolved labor contracts, including anticipated requests for pay raises.
“You’re obligating [us for ] a lease/purchase without knowing what we are going to have [in revenue]… Is the ladder [aerial] more important than the pumper,” Ritter asked seeking , perhaps, a commitment to buy one but not both of the apparatus.
Reinforcing the need for replacements trucks, over the weekend a water line broke on the 1991 pumper and on Monday, the pump itself broke.
“I came in [as interim chief] with a broken down fleet,” Hazlet stressed.
Runyon proposed a reallocation of coal severance tax receipts for payment, even though most of those funds subsidize the Big Sandy Superstore Arena, hinting that a full subsidy might not be required this fiscal year of the arena.
Insco objected. “We’ve obligated to pay BSSA losses,” inferring that if the severance taxes were not used and the revenue projections for BSSA dropped off the city would have to make up the difference from the general fund.
Councilman Nate Randolph emphasized the “not writing a check” portion of the equation.
Insco suggested a withdrawal of the proposed purchase from Monday’s agenda in order to meet and look at alternative funding.
Finance Chairman Steve Williams agreed that there was still a lot of “murkiness” in the procedure.
When Bates and Hazlet emphasized that there were only so many engines left to be put in trucks and that Orange County (California) purchased ten last week, the urgency level intensified.
The question came up of whether the mayor’s signature on a “letter of intent” would secure the truck. McCure opined that such a letter could be interpreted as not obligating yet reserving the truck. On the other hand, if the company received a more firm offer, Huntington could lose out.
Mayor Wolfe injected, “Let’s get the one truck ordered.”
City Attorney McClure added that the withdrawal delay could be overcome by a special call council meeting. In fact, he said that the legally binding paperwork could be drawn up in “a couple of days” once council “authorized” the spending.
Bottom Line: At the meeting Monday, Nov. 9, the aerial platform ordinance which contained C.D.B.G. language was withdrawn, so the stakeholders can meet and hopefully formulate another proposal that would be comfortable for administration and council to order the truck before the price goes up.
Share This Story:
Make HNN Your Homepage (IE Users Only)
Finding Conciliatory Ground to Preserve Fire Apparatus Purchase Price(s)
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – After procedural squabbles concerning the proposed purchases of two fire trucks, the administration and council found budget reallocation middle ground which would not have council committing money in advance to future purchases.
The problem arose when the interim fire chief Tony Hazlet observed in July 2009 that a 1991 pumper and a 1991 aerial truck were at the end of their useful lives. Hazlet became aware of Environmental Protection Administration regulations taking effect in 2010 which would push the cost of fire truck replacements much higher than current purchase prices. He learned that orders placed for delivery in 2010 could be placed until the end of December 2009.
By purchasing the two replacement trucks before the new regulations take effect, the city would save about half a million dollar over the life spans of the fire apparatus.
During their haste to take advantage of the opportunity, along with changing personnel in the department, communication lagged. The Fire Department would need council’s approval for the equipment that would be part of the 2010-2011 budget.
However, the advance allocation of funds steps on procedures, including the full budgeting process and those other projects that compete for a limited amount of C.D.B.G. funds.
Based on direction provided at the work session, members of the administration and the fire department met with Finance Director Deron Runyon.
Hazlet told council, too, that the department since 2006 had spent nearly $60,000 on repairs to the 1991 pumper and aerial units.
A solution came for the $347,680 pumper. A ten year lease purchase commitment through an in house Fire Department budget revision.
Runyon proposed encumbering funds already in the 2009-2010 budget for the pumper. Money designated from the Cabell County Fire Levy for safety gear and other equipment (approximately $40,000) would be reassigned to cover the pumper.
Asked if this alteration would create any safety concerns, Deputy Chief Hazlet answered ‘no,’ stating that the decision was a matter of shifting priorities within the department.
Mayor Kim Wolfe clarified that he could approve the line item revision, but council must authorize the payment. City Attorney Scott McClure agreed.
Council chairman Jim Insco, who had previously told HFD representatives they could not bring the aerial platform truck to his committee which distributes C.D.B.G. funds until April 2010, entered no objection to the decision on the pumper.
However, the more expensive aerial platform truck which had been turned down for advance CDBG funding proved more cumbersome in finding creative financing options.
Runyon explained that having looked at current and previous budgets for the HFD, the department had about $135,000 annually for lease/purchase of equipment. Some of the equipment will be paid off. He based projections on maintaining a status quo on that line item.
Councilman Jim Ritter raised the specter of pensions and unresolved labor contracts, including anticipated requests for pay raises.
“You’re obligating [us for ] a lease/purchase without knowing what we are going to have [in revenue]… Is the ladder [aerial] more important than the pumper,” Ritter asked seeking , perhaps, a commitment to buy one but not both of the apparatus.
Reinforcing the need for replacements trucks, over the weekend a water line broke on the 1991 pumper and on Monday, the pump itself broke.
“I came in [as interim chief] with a broken down fleet,” Hazlet stressed.
Runyon proposed a reallocation of coal severance tax receipts for payment, even though most of those funds subsidize the Big Sandy Superstore Arena, hinting that a full subsidy might not be required this fiscal year of the arena.
Insco objected. “We’ve obligated to pay BSSA losses,” inferring that if the severance taxes were not used and the revenue projections for BSSA dropped off the city would have to make up the difference from the general fund.
Councilman Nate Randolph emphasized the “not writing a check” portion of the equation.
Insco suggested a withdrawal of the proposed purchase from Monday’s agenda in order to meet and look at alternative funding.
Finance Chairman Steve Williams agreed that there was still a lot of “murkiness” in the procedure.
When Bates and Hazlet emphasized that there were only so many engines left to be put in trucks and that Orange County (California) purchased ten last week, the urgency level intensified.
The question came up of whether the mayor’s signature on a “letter of intent” would secure the truck. McCure opined that such a letter could be interpreted as not obligating yet reserving the truck. On the other hand, if the company received a more firm offer, Huntington could lose out.
Mayor Wolfe injected, “Let’s get the one truck ordered.”
City Attorney McClure added that the withdrawal delay could be overcome by a special call council meeting. In fact, he said that the legally binding paperwork could be drawn up in “a couple of days” once council “authorized” the spending.
Bottom Line: At the meeting Monday, Nov. 9, the aerial platform ordinance which contained C.D.B.G. language was withdrawn, so the stakeholders can meet and hopefully formulate another proposal that would be comfortable for administration and council to order the truck before the price goes up.
Share This Story:
Make HNN Your Homepage (IE Users Only)
