City of Centralia City Council met June 8.
Here is the minutes provided by the council:
Per Senate Bill 2135, the City Council for Centralia, Illinois met for a Work Session to discuss the Fire Department Apparatus. Mayor Williams called the Work Session to order at 5:00 p.m.
Present: Mayor Williams, Councilman Smith, Councilman Sauer, and Councilman Marshall(all members attended electronically via teleconference)
Absent: Councilman Jones
Staff Members Participating Physically at City Hall: Lowell Crow, City Manager; Bill Agee, City Treasurer, and Kim Enke, City Clerk
Staff Members Participating Electronically: Chief John Lynch, Fire Department and Lt. Perez, Fire Department
City Manager Lowell Crow stated that Chief Lynch and Lt. Perez is also attending the meeting. City Manager Crow stated that the replacement of fire trucks was discussed previously by the Council and this meeting is to provide more detailed information about purchasing and financing. He stated that there are 4 options for replacement including replacing 2 trucks for $1.4M or 3 trucks for $1.8M. He stated that there are 4 options for funding. He noted that another bank has submitted a proposal as well. He stated that this will establish the City’s fire truck fleet for the next 10-15 years. He stated that one of the pumpers will be kept as reserve and the other engines will be declared as surplus. He also noted the average life of an aerial truck is 25-30 years and the current aerial was built in 1971. He also noted that the average life of a pumper is 15-20 years. He noted that photos of the trucks are included in the packet and both are available for purchase. He stated that both the aerial and pumper can be delivered in 1-4 months depending on the options chosen. He reviewed the purchase options provided. Option 1 included the purchase of one pumper and one aerial with delivery in 4 months. He noted that the payment on the trucks is based upon finance decisions. Option 2 included the purchase of one pumper and one aerial and also order another pumper that would not require a payment due for two years. He stated that this would replace the fleet without another major replacement for 10-15 years. He stated that the 3rd option included the purchase of a pumper only at the cost of $400,000. He stated that an aerial may still need to be purchased due to lack of replacement parts for the current aerial. He stated that Option 4 included the purchase of an aerial and two used pumpers. He noted that the 4th option is a short term fix and the city could be buying someone else’s problems. He stated that his recommendation is to at least consider option 1 and possibly consider option 2.
Chief Lynch discussed the current equipment of the department. He stated that a 27 year old pumper is being run on the frontline noting that typically a pumper would be in reserve at 15 years with replacement around 20 years and not on the frontline. He stated that the problem the department ran into is that two ladder trucks were placed on the frontline and heavily used. He stated that one was removed two years ago when he became Chief and he started rotating it with an engine to save the life of some of the apparatus. He stated that now they have a 22 and a 20 year old ladder truck and a 27 year old pumper. He stated the best truck is a 15 year old pumper. He stated that the snorkel truck is 49 years old and can’t be repaired or refurbished. He stated that the manufacturer can’t get parts and won’t do it. He stated that the ladder truck repairs will start at $80,000 due to the engine, pump, and transmission needing replacement and he also noted that after those repairs are made, the city will still have a 22 year old ladder truck.
City Manager Crow explained multiple funding options. He stated that the first option is funding with bonds which are currently running at 3.25% for 15 years. He stated that is the rate with the downgrading of the ratings of municipalities. He stated that it would have to go to referendum in order to do that. He stated that the longest financing with a bank is 10 years. He stated that the 2nd funding option is through McCormack which is a lease but it is a higher payment overall and it would be up to 15 years. He explained that option 3 is a US Bank loan. He explained that at this time, US Bank is not allowing municipalities to finance longer than 8 years due to the unknown financial stability. He stated that he also received an option from Community Trust Bank (CTB). He stated that the financing would be 2.25% fixed for 5 years but amortized for 15 years. He stated that the terms of the financing would need to be reviewed by the City Attorney. He noted that the other option received was from Peoples National Bank with a 2.89% interest rate and with an annual payment of $169,000. He reminded the Council of the shortfall in revenue and the need for other revenue sources. He stated that some options are to referendum for sales tax, levy for property tax, referendum for bonds, and reviewing the budget for additional cuts. He noted that the himself and Chief are also looking at additional fees that could be charged for additional services provided by the Fire Department such as lift assists. He noted that other communities are doing this and charging varied amounts for each lift assist. Councilman Sauer asked for an explanation of a lift assist. Chief Lynch stated that it is for a non-emergency medical call. He stated that it involves helping someone up or into a bed and checking to be sure that there is no other medical attention necessary. He noted that if there is further medical attention necessary, then the department dispatches an ambulance if needed. City Manager Crow noted that there are 300-500 lift assist calls per year on average to nursing homes and assisted living centers. He also reported that insurance companies are already charging for motor vehicle accident calls which is a growing revenue source that is built into insurance. He stated that approximately 40% of the communities are charging for motor vehicle responses. He stated that only approximately 8% of the communities are charging for fire calls due to the thought that taxes pay for those services. He also noted that excessive fire alarm calls are also able to be charged when there are excessive calls. He noted that these types of fees will only offset a portion of the costs to replace the equipment. He stated that an average community could receive between $35,000 and $40,000 for motor vehicle calls annually. He stated that together with lift assist fees the City could receive $70,000- $80,000 which would not cover all of the costs.
Chief Lynch explained why the trucks are needed. He explained that aerials are for the some of the tall buildings but also for large warehouses and two story homes. He stated that it is not only the height of the buildings but the size of the buildings that requires aerials. He also explained that the platform truck that is being considered is a cross between the snorkel truck and ladder truck to serve a dual purpose. He also noted the size the buildings in the industrial park, the high school, Gaetti center, Castle Ridge, and the old Monsanto building explaining the need for the extended reach. City Manager Crow noted that 110 ft. gives 100 ft. of coverage. Councilman Marshall questioned if the current equipment would be repaired, what the cost would be. Chief Lynch confirmed that $80,000 would be needed to repair the ladder truck which is almost 23 years old. He stated that it needs a new motor, pump and transmission. He stated that there may be other expenses and aerial work that needs to be done, along with other minor work, for a total of approximately $80,000-$100,000. He stated that the snorkel truck is not repairable. Councilman Sauer inquired about the inspections and testing and the repercussion of not passing the tests. Chief Lynch stated that without a certificate, the City can’t use the equipment. He stated that without UL approval, the City would accept liability. He added that without the repairs and UL approval they can’t be used without certification. Councilman Sauer asked about mutual aid. He asked if the Chief has discussed the fleets with the surrounding communities. Chief Lynch stated that they do discuss mutual aid and what they can offer each other and he added that the City needs its own aerial devices due to the amount of response time for those other communities to arrive with their equipment during a call. Councilman Sauer stated that he understands that and hopes that the other communities such as Mt. Vernon has them too. Chief Lynch stated that Mt. Vernon has one and Salem has one that he believes is in the process of being replaced as well. Councilman Sauer stated that in regards to additional fees, there have been feelings expressed that the City provides assistance more often to the rural areas than the rural communities provide to the City. He asked if that was true and if fees could be assessed when responding to others fires. Chief Lynch stated that he feels that the rural communities provide more assistance than City gives to them. Councilman Sauer asked how other are getting by with their fleets. Chief Lynch stated that Salem has an industrial park and they also have a large aerial and are also in the process of getting theirs replaced. Councilman Marshall asked what the life expectancy would be on the existing equipment if it were to be repaired. He stated that he would like to support the Chief’s decision, but wonders how the revenue would be obtained. Chief Lynch estimated that it would last an additional 10 years, at the most. He stated that there is going to be other things such as the axles, brakes, and other maintenance that will need to continue to be maintained in order to pass inspection. Chief Lynch stated that he would park the ladder trucks and his goal is to get a new aerial device and put the aerial in the shed. He would like to get 30-35 years out of it and would only want it to come out when needed and for training purposes. He stated that he wanted to go back to running the pumper trucks that can be replaced more affordably and not running the ladder trucks on first response calls. He stated that at this time he has no other choice to run the ladder truck. He stated that they would readjust and put Centralia back in line with the response that is needed. He stated that this includes two pumper trucks with one pumper at each station. He added that the current ladder truck should be in reserve and the new platform would be in reserve from the beginning. City Manager Crow stated that the fleet would be in a good position for the next 10-15 years. Councilman Sauer asked who makes the determination, when there is a 911 call, about what equipment is sent. Chief Lynch stated that there is a standard response that a pumper will go and right now they have frontline trucks at this time ready to go. He stated that he determines what trucks are sent due to setting the guidelines in place about what is on the frontline. Councilman Sauer stated that he understands that a fire call will always have a pumper sent out, but he questioned if lift assist calls also warrant a pumper truck to go on those calls and not another vehicle. Chief Lynch explained that there is no guarantee that while out on a lift assist call that another call won’t come in for a fire. He explained the response time would be delayed if they were not prepared and needed to respond to a fire, which would require them going back to the station to get the pumper truck and equipment for a fire or auto accident. Councilman Sauer asked if the Chief felt it was worth it to run the pumper on 500 lift assist trips at 5-6 miles per trip for each lift assist. Chief Lynch stated that his average mileage for lift assists has been 2-3 miles each time. Councilman Sauer acknowledged that the care facilities are rather close proximity. Chief Lynch stated that none of the ambulance services are doing lift assists and there is no one else to take those calls. He stated that the department is multifaceted including haz-mat calls, emergency response, medical response and house fires. He stated that they need trucks that are big enough and equipped to handle multifaceted calls. Councilman Sauer stated that not only with the information provided tonight, but also information in past, the City has deferred maintenance of the snorkel. He stated that when maintenance is deferred that long, at some point they City has to play catch up. He stated that he feels the City will have to go with option 1 or 2 but he likes option 2 better due to it putting the City in better shape for several years. He stated that in regards to the revenue options, he would like the City to charge and receive any extra fees that are available noting that the fees would only offset a small portion of the cost. He inquired about the need for a referendum to raise sales tax and the City Manager stated that he and the Attorney are looking at those options for non-home rule communities that may not require referendum. Councilman Sauer noted that the high school and city schools just had an increase passed with the high school estimating there revenue at $250,000. City Manager Crow stated that he talked to both superintendents and the high school was estimating $250,000 and the city schools were estimating $500,000 from the increase. Councilman Smith stated that it may not be necessary to raise it a full percent. Councilman Smith pointed out that the school’s tax increase was for the entire county and maybe 1% would be needed if only increasing the tax in the city only. Chief Lynch stated that he wanted to note that the ladder truck and one pumper is already built. He also noted that the ladder truck is $104,000 below the normal cost. City Manager Crow stated Pierce could provide the ladder truck in 3 months and the pumper within 1 month. He added that all he needs from the City is a commitment letter with 1st payment being due in November. Councilman Sauer stated the revenue needs to be determined and he asked how soon the increase in sales tax could start and the city can start receiving revenue from it. City Manager Crow stated that it may be able to be on the November ballot if the city would pass it by the deadline. He stated that he would discuss it further with the attorney and would report back to the Council. Councilman Smith stated that he agreed with Councilman Sauer that he was also in favor of option 1 or 2. He stated that the equipment needs to be where it needs to be in the best position. He stated that they may have not been able to get it before, but they need to move forward. He stated that he recommends that the City Manager continue to look into the process for the referendum. Councilman Sauer stated that if those trucks are ready and the city doesn’t have a snorkel then it seems like the best option since there is an approximate 10% discount on the ladder truck instead of ordering. He confirmed with the Chief that this is the brand of truck the Chief was considering. City Manager Crow stated that Pierce is the industry standard and provides trucks throughout the country. He stated that there is only one other competitor that is the same level. He stated that they are produced nearby in Wisconsin. Mayor Williams asked for the delivery time. Chief Lynch stated that it would be anywhere from 30-90 days. City Manager Crow stated that one of the trucks has to come from Florida. Chief Lynch stated that the ladder truck is in Wisconsin and the pumper is in Florida. Councilman Marshall stated that he supports helping the fire department in any way they can but he would be against a raise in sales tax. He asked if there was a way to get the equipment needed but cut costs in another way to finance the purchase. City Manager Crow stated that he will look at the fees and cutting costs. He stated that one of the challenges right now is not knowing how long it will take to recover from the COVID-19 pandemic. He stated that sales tax is tracking with what the city received in 2019 but the budget included $350,000 more in sales tax revenue. He stated that he would try to calculate the percentage at 1⁄4 percent or 1⁄2 percent before going forward. He stated that he would get that together within 10 days. Councilman Sauer stated that raising the tax levy needs to be off the table and it is too regressive. He stated that if anything is increased it should be from sales tax because it comes from people who are not just from Centralia. He stated that if the Council goes with option 1 or 2, the Council needs to be prepared to vote for a sales tax increase since there is no way to cut $150,000 -$200,000 per year. City Manager Crow stated that there will be a work session before the next meeting to further discuss reducing the budget this year and proposed reorganization. He stated that he couldn’t discuss the collective bargaining agreements in an open meeting, but would be calling a closed session for it. Councilman Sauer confirmed that the City Manager would be getting back to the Council in regards to the needed sales tax revenue. City Manager Crow stated that he and the Chief will also get more estimates together for the lift assist and other fees. City Manager Crow stated that he wanted to present this information to the Council and the then not make a final decision till the next meeting so any additional questions can be answered. He stated that this will be on the next agenda for approval. He again noted that they only need a commitment letter to purchase the pumper and aerial which will give the City 5 months to determine the financing. Councilman Sauer amount that could be charged for the motor vehicle accidents. City Manager Crow stated that there would be an established set fee or they would establish what the insurance companies have set aside for response. He stated that if an ambulance would be called, a portion would go to them but a portion would also go to the fire department. He added that with the lift assists the fee is set and sometimes the number of calls will go down, so that needs to be factored in. Councilman Sauer noted that the public will need to consider that the purpose of the sales tax increase is to allow for better response to fires and while the Chief explained that they have many duties, he doesn’t want to have to charge for responses to fires.
He stated that he will do further research and gather more information for the needed revenue and the proposed percentage of sales tax increase. He will look at the revenues being received from the state.
Mayor Williams stated that more information will be provided at the next meeting so it can be determined how the Council wants to proceed.
Submissions for public participation were submitted prior to the meeting electronically to the City Clerk. The submissions were also shared with the City Council by the City Clerk.
Vernell Burris addressed the Council in regards to the Fire Department Equipment. He would like the Council to consider issuing bonds as done in the past and asks that the Council consider updating the Fire Department trucks with the bonds. He added that if the records are checked it will be determined that the last trucks purchased were purchased by bonds.
With no further business to discuss, the Work Session was adjourned at 5:45 p.m.
https://cityofcentralia.org/vertical/sites/%7BFC680FE7-BE5C-4903-A103-67AF5EF51655%7D/uploads/06-_June_8_2020_Work_Session_Minutes(1).pdf
Alerts Sign-up