Dollar plays havoc with fire engine purchase
By Vivian Moreau - Oak Bay News
Published: November 12, 2008 2:00 PM
Updated: November 14, 2008 1:11 AM
Gerry Adam was a little nervous when he sat down with Oak Bay council Monday night. The Oak Bay fire chief was asking for the green light to buy a new fire truck that could cost up to half a million dollars.
"I'd be better if I didn't have to do this," he joked with a municipal staffer.
Adam was there to plead the case for replacing the department's 24-year-old fire engine. With new federal pollution regulations coming next year, it makes little sense to try and refit the aging truck.
But asking council to finance a new engine in an unstable economy was not easy. In September, the Oak Bay fire department received a verbal estimate of $430,000 Canadian for a new engine supplied by U.S.-based Sutphen Corporation. Sine then, the Canadian dollar has taken a nose dive. Now the price for the engine is being quoted in U.S. dollars and, depending on where the loonie sits at the time Oak Bay writes a cheque, the municipality could pay anywhere between $380,000 and $529,000.
"To give a verbal quote was almost reckless on their behalf," Oak Bay's administrator Bill Cochrane, said about Sutphen's original price.
Sutphen is the only manufacturer around that can build a fire engine to fit Oak Bay's vintage fire hall. It will take about 11 months from the time the order is placed for the 2008 triple pumper until the engine that will be Oak Bay's primary response vehicle pulls into the St. Ann Street hall.
Further delays could mean a higher cost, Adam said to Coun. Nils Jensen, who had asked if the purchase could be delayed given the world's current economic volatility.
"We've been diligent in following a sound replacement policy," Adam said, noting the current engine was already four years past its service life expectancy, "and I'd like to see us follow that schedule."
After queries from the mayor to Cochrane about whether next year's trade agreement ( known as TILMA) with Alberta could put a kink in the purchase - no - or if not putting the fire engine purchase out to tender was problematic - also no - council gave a visibly relieved Adam the go-ahead to order the engine.
vmoreau@saanichnews.com





