SUPPORTS ITEM NO. 3
                                                CS&B AGENDA
                                                APRIL 10, 1997     

                                                        POLICY REPORT
                                 PUBLIC SAFETY


                                           Date:  March 27, 1997
                                           Dept.       File        No.
   deploy_1.wpd
                                           C . C .    F i l e    N o .
   1006-1/1306-8

   TO:       Vancouver City Council
       
   FROM:     General Manager, Fire and Rescue Services
       
   SUBJECT:  Better City Government - Implementation of Fire and
             Rescue Services  Apparatus and Staff Redeployment 

   RECOMMENDATIONS

        A.   THAT  Council provide  the  final approval  of  the  fire
             apparatus  and  staff  redeployment  recommended  by  the
             consultant and  staff (Option  6 of  the TriData  Report)
             contained in Appendix A.

        B.   THAT Council approve the  apparatus replacement  schedule
             contained in  Appendix C of  this report (which  supports
             the recommended redeployment   and  a  15  year   average
             first-line service  life  standard)  and  the  supporting
             funding from the Equipment Plant Account.

        C.   THAT  Council authorize  a delay  in the disposal  of two
             engine  trucks   (in  addition   to  the   two  currently
             retained)  to be  used as  multiple alarm  reserve   hose
             wagons  on an ongoing basis.

        D.   THAT Council  authorize a  delay in  the disposal of  one
             engine truck  and one  ladder truck  for use  as training
             vehicles  at  Fire and  Rescue s  Chess  Street  Training
             Facility on an ongoing basis.

        E.   THAT Council  authorize the General  Manager of Fire  and
             Rescue  Services to  request that  the Province  of  B.C.
             fund an additional firefighter position at U.B.C.  (under
             our  present  service  contract).  This  will maintain  a
             standard  that  is consistent  with  the  level  of  fire
             protection service which will  be provided to the rest of
             the City. 
       
        F.   THAT  Council  authorize  the addition  of  one Battalion
             Chief  position  (per  shift)  contingent  on  sufficient
             annual  savings  being  realized  as  a  result  of  this
             redeployment.

   GENERAL MANAGER S COMMENTS
       
   The  recommendations contained  in this  report represent  a very
   significant initiative  for Vancouver  Fire and  Rescue Services.
   The redeployment of  our apparatus  and staff  will increase  the
   Services  capabilities to function  effectively as an  all-hazard
   response  force , ultimately at  significant cost savings.   As a
   major Better  City Government Initiative, this  has fulfilled our
   goal to  provide value-added services in  a cost-effective manner
   within existing resources.

   While  the recommendation  to  increase the  number of  Battalion
   Chiefs by  one per  shift(Recommendation F)  is supported  by the
   TriData Report, at  this time we advise that  this should only be
   done once  sufficient funding is found.  This will be the subject
   of a future Council Report.  At that time, the justification will
   be developed further.

   COUNCIL POLICY

   On April 14,  1994, Council approved a package of Fire and Rescue
   Services  budget reductions  to fulfill  the requirements  of the
   1994-96 Budget  Management Program.  However, the Fire  Chief was
   directed to  report back in  one year on  whether to  implement a
   proposed  reduction of  one piece  of  fire apparatus  (replace a
   ladder and pumper truck at #21 Fire Hall with a combination piece
   of  equipment), or to achieve the same or greater savings through
   a comprehensive redeployment of firefighters and equipment. 

   On  July  5, 1995,  Council approved  the  award of  a consulting
   contract  to TriData  Corporation for  a comprehensive  review of
   fire hall  locations, the  deployment of emergency  apparatus and
   staff,  and  the  City s  insurance rating  for  commercial  fire
   protection.  Fire  and  Rescue   Services  also  identified  this
   initiative under the Better City Government Program.

   On April 25,  1996, Council  endorsed, in principle,  a Fire  and
   Rescue  Services apparatus and  staff redeployment proposal known
   as   Option 6"  as outlined  in the  TriData Study.  Council also
   directed  the General  Manager  of Fire  and  Rescue Services  to
   report back with a detailed implementation  plan for the proposed
   redeployment of fire apparatus and staff.

   SUMMARY

   This  report  proposes  an   implementation  plan  and  apparatus
   replacement  schedule  for  achieving  the  apparatus  and  staff
   redeployment recommended  as Option 6  in the TriData  report and
   endorsed  in  principle  by  Council   on  April  25,  1996.  The
   recommended redeployment will provide a great deal of flexibility
   in  terms of operating dual function fire companies. The 19 quint
   companies  and 10  engine companies  will provide  a total  of 29
   companies  that can function as  engines. The 10 engine companies
   include 6  that would  function as rescue/engine  companies. Full
   time Life Safety Units (LSUs) would  be assigned to 6 fire halls,
   including  corner   (of the  City)fire halls where  LSU personnel
   could be used to increase the  staffing of the quints to 6 person
   crews.  Two additional  Life  Safety Units  would  be staffed  by
   personnel  who  would  be regularly  assigned  to  the Tower  and
   another  quint. This  will  allow these  companies to  respond to
   medical incidents without their large fire suppression  vehicles,
   thus providing more effective service.

   Engine  and  ladder  trucks  in  the  current   fleet  have  been
   maintained beyond their economic lives (pending the completion of
   the  deployment  study)  and   this  has  resulted  in  excessive
   apparatus  downtime and  repair costs.  This report  recommends a
   somewhat accelerated apparatus replacement schedule, due in  part
   to  a departmental  decision to  postpone apparatus  replacements
   over  the past  several years.  In  addition, staff  cost savings
   possible  under  the redeployment  are  generally  not achievable
   until the redeployment is substantially complete. There is also a
   possibility of  achieving some  purchasing economies of  scale by
   ordering multiple units at the same time.

   This report also makes several recommendations aimed at improving
   response capability  objectives (RCOs) at minimal  cost. RCOs are
   basically defined as Fire and Rescue Services  ability to deliver
   an  appropriate  combination  of  firefighting  resources (staff,
   apparatus and  equipment) within  specific response times.  It is
   recommended that  several pieces of  apparatus be held  back from
   disposal to use as reserves and training vehicles. Generally, the
   most serviceable of the vehicles which are  no longer appropriate
   for  use as  first-line emergency  apparatus will be  retained in
   these roles.

   Cost  savings will be achieved through  reductions in the overall
   numbers  of  officer  positions (Captains  and  Lieutenants)  and
   reductions in apparatus replacement costs over the next 15 years.
   The addition of a Battalion Chief position per shift (for a total
   of 4)is also recommended when  sufficient annual savings to  fund
   these positions are realized through this redeployment. 


   The  annual savings  in  staff costs  (officer differential)  are
   $335,000  per  year  by  1999  when  the  redeployment  is  fully
   implemented based on the proposed apparatus replacement schedule.
   It  is recommended that these  savings be allocated  to the plant
   account in 1999 to  assist in funding equipment replacement.   In
   the future there  is the  potential for an  additional saving  of
   $333,500.  This is a full time firefighters position.   It is the
   departments  intention to  pursue the  Provincial Government  for
   this funding based on the  agreement to maintain the   same level
   of  service for the University Endowment lands as is delivered to
   the   City  of  Vancouver.    Savings   from  this  position  are
   recommended to fill positions approved earlier by Council subject
   to identification of a funding source.  

   PURPOSE

   This report recommends final approval of a staffing and equipment
   redeployment strategy for the  Fire Department which was approved
   in principle by  Council on April 25, 1996.   Council approval is
   also requested for a series of recommendations that  will improve
   operating procedures in the department at no additional cost.

   BACKGROUND

   A major review  of the  deployment of Vancouver  Fire and  Rescue
   Service s  (V.F.R.S.)  fire  halls,  apparatus,   and  staff  was
   completed by a fire  service management consulting  organization,
   TriData Corporation. This  company was  retained by  the City  to
   determine  the  most  effective  deployment  of  fire  department
   emergency   personnel  and  equipment.   The  Steering  Committee
   included  a representative  from the  City Manager's  Office, the
   Chairman of the  Citizen's Advisory Committee,  two Firefighter's
   Union representatives, and  representatives from Fire and  Rescue
   Administration.

   A  copy of the  final report by  TriData is  on file in  the City
   Clerk s Office.

   The consultants  recommended  a  major  shift  in  the  types  of
   apparatus  currently  deployed  to  support  the  wide  range  of
   protection services  provided by  Vancouver Fire and  Rescue. The
   proposed redeployment, known as  Option 6" in  the TriData Report
   was accepted in principle by Council on April 25, 1996. 

   The  redeployment plan  will  provide a  flexible, efficient  and
   effective system  to satisfy present and  future fire protection,
   first/co-responder   emergency   medical,   disaster,   hazardous
   materials, and rescue response needs.  At present, a minimum of 4
   personnel are required to initiate an interior fire attack. Under
   the  new  deployment,  personnel  that are  currently  less  than
   optimally utilized on aerial ladder trucks staffed  with 3 people
   will  be used  to  provide 4-person  crews  on all  primary  fire
   suppression  vehicles and  2-person Life  Support Units  for many
   medical responses.

   The  proposed redeployment is based on  the Tridata report option
    6" and is  a significant transformation of the  apparatus fleet.
   Ultimately, the fleet will contain a higher component of flexible
   multi-purpose   quints   and   rescue  engines ,  with  secondary
   emphasis on single purpose apparatus  such as engines and  aerial
   ladders. 

       -         Quints   (with  4  person  crews)  are  apparatus
       which  can  fulfill the  role  of either  an aerial  ladder
       truck  or  pumper  truck  depending  on  specific  resource
       requirements. A quint  has five basic capabilities; it  can
       pump  water, it  carries  water, it  can  lay hose,  it has
       ground ladders and it has an aerial ladder. 

       -        Rescue Engines  can provide  the functionality  of
       engines,  but  also  carry  additional  specialized  rescue
       equipment. 

   The recommendations  also included   Life  Support Units   (light
   duty  rescue units),  which will  primarily respond  to emergency
    first-responder  medical incidents and  provide support at  fire
   incidents. The  two current Rescue  and Safety companies  will be
   disbanded and the staff redeployed. 

   These  changes will  result in  a more effective,  efficient, and
   flexible  multi-hazard fire protection force to serve Vancouver s
   growing population.

   A  second component of this Better City Government Initiative was
   a review of  the Commercial Fire Insurance Rating  of the City of
   Vancouver.  The  results  of  this portion  of  the  review  were
   reported  to  Council  on   February  18,  1997.  The  consultant
   concluded that,  if completed  today, a Fire  Underwriters Survey
   would likely result in a downgrade of Vancouver s current Class 1
   rating  (the highest rating achievable)  to a Class  2 rating for
   commercial  fire insurance. The  recommended apparatus  and staff
   redeployment,  combined with  several  other recommendations  may
   help retain the Class 1 rating.  The  change in clarification can
   mean  up to  a  two percent  saving  on insurance  premiums,  for
   commercial non sprinkled occupancies.

   DISCUSSION

   Officer Deployment

   The proposed  redeployment will result  in a  quint being  placed
   into  every fire hall but  one. Since the  quint then becomes the
   primary   first-line  fire  apparatus,  to  maintain  operational
   consistency,  the  senior officer  in  the  fire hall  should  be
   assigned  to it. Therefore, the Captains, as the senior fire hall
   officers  will be assigned to  the quints, while  engines will be
   assigned  to   Lieutenants.  LSUs   will  be  staffed   with  two
   firefighters. 

   These changes will not  result in an overall staff  reduction but
   will  reduce the officer complement to 19 Captains per shift(from
   22),  and   10  Lieutenants   per  shift(from  14).   When  fully
   implemented in 1999, annual savings  in officer staff costs would
   be approximately $335,000.   As noted later in this report, it is
   proposed these savings be allocated to equipment replacement.

   In addition,  at present,  engines are  staffed with  4 personnel
   while ladders carry 3  personnel. Under the TriData redeployment,
   all  engines and  quints  will carry  4  personnel.   If  Council
   approves  the implementation outlined  in this report,  it is the
   departments  intention  to  enter  into  negotiations  with   the
   Province to have the staffing level at University Endowment Lands
   increased by one full-time firefighter  position.  It was  agreed
   by the City and the Province that the same level of service would
   be provided to  the University as is provided to  the City.  This
   will free up the equivalent of one full time firefighter position
   per shift within the  department and result in annual  savings of
   $333,500.   It  is  proposed that  these  savings be  reallocated
   within  the  department to  fill  the  positions in  recruitment,
   standard  operating  procedures and  public  education previously
   approved  by Council  subject  to funding  being identified.  The
   annual cost of these positions are $242,000.  The remaining funds
   are requested  to cover needed clerical support,  costs that were
   not identified in the original report to Council.

   Equipment Replacement Schedule Changes

   In  1969,  the Engineering  Department  carried  out an  in-depth
   technical  evaluation   of  the   replacement  policy  for   fire
   apparatus. That study recommended a replacement policy based on a
   fifteen  year life for all  fire apparatus. Since  that time, the
   department  has  generally  maintained  a  15  year   replacement
   schedule  with  the  exception  of  the  last  three  years  when
   replacements were delayed pending the TriData study. 

   In  evaluating  apparatus  replacement  options  to  achieve  the
   redeployment option, a fifteen year replacement schedule has been
   maintained.  However,  it  is  recognized  that  the  changes  in
   response logistics  (i.e. using smaller,  less expensive vehicles
   to  respond  to  many  medical emergency  incidents)  may  impact
   favorably  on the economic life  of large fire  apparatus. On the
   other hand, other factors  such as call volume, training  levels,
   fill-ins needed  to maintain  coverage and availability  of parts
   have changed in  the past  two decades  negatively impacting  the
   most  economical service  life  of this  equipment. Therefore,  a
   review of the replacement schedule will be carried out later this
   year and reported back to Council.

   Based on  a  15 year  equipment replacement  schedule, there  are
   savings in  staff costs available by achieving  the new equipment
   deployment on an accelerated basis.  To achieve these savings the
   implementation team  recommends the  purchase of the  majority of
   the quints  and LSUs during the  next two years  rather than over
   four  years  under the  present replacement  program.     As fire
   apparatus  is  being  integrated  into the  Plant  Account,  this
   replacement  timing  issue   must be  considered  as part  of the
   overall  operation of that fund.  This funding issue is discussed
   in  the Financial Implications section of this report.   Also, in
   operational terms, a quick  implementation will facilitate a more
   efficient  training  of  personnel.    There  may  also  be  cost
   advantages  to issuing  equipment orders  for multiple  identical   units.

   OTHER OPERATING CHANGES

   Improved Secondary Response Model

   As  a response  to the 1994-1996  Budget Management  Program, the
   department agreed to use an industry standard  secondary response
   model  to reduce  its training  costs.  Under  this model, up  to
   five  first-line  apparatus (2  engines, 2  ladders and  1 rescue
   vehicle) can be simultaneously unavailable for immediate response
   to  emergency  incidents  due   to  the  heavy  requirements  for
   maintenance and upgrade  training, first-responder  certification
   and other requirements.   While in secondary  response, the crews
   and equipment may be outside of their  normal response districts,
   and  are  not  dispatched  to  incidents  unless  there  are  two
   simultaneous fires  in the City. Under  some training situations,
   apparatus is physically  dedicated to a particular  drill and may
   not be quickly placed  back into service for  emergency response.
   The secondary response model also results in a significant amount
   of apparatus  movement to  training sites, and  the corresponding
   movement of apparatus to back fill at vacant fire halls. 

   In  order to increase  the department s  ability to  respond, the
   Implementation  Team  recommends that  a  ladder  (or quint)  and
   engine truck  be held  back from  disposal  after the  first-line
   service  life. This equipment will be primarily used at the Chess
   Street Fire Training facility  in support of training activities.
   Rather than  taking the equipment out-of-service,  crews will use
   the  on-site apparatus.  This will  improve our  overall response
   capability  objectives (RCOs).  The  costs will be in maintenance
   and a marginally lower resale value for the apparatus. 

   Changes in Standard Response Levels

   To further improve  current RCOs, under the  new deployment, more
   staff  will be routinely delivered to a fire scene than currently
   since  an additional engine will be added to the current response
   levels.  However, the   rare  occurrence of  several simultaneous
   major emergency events can reduce firefighting resource levels to
   unacceptable  levels.  The  Implementation  Team  therefore  also
   recommends holding  two additional engines back  from disposal to
   be used as  multiple alarm reserve engines, again with  a view to
   improving our RCOs at minimal costs. The department currently has
   two engines  , referred to as hose wagons, which are used in this
   role.   This would allow four engines  to be staffed in the event
   of  major incidents which threaten to  overwhelm the normal level
   of resources.  Staffing would  be achieved by  either calling  in
   off-duty firefighters or staffed with LSU crews, depending on the
   situation.  As in the case of the engine and ladder held back for
   training, the costs incurred by these engines will be maintenance
   and marginally lower resale value.

   A review of the response levels to automatic fire alarms was also
   carried  out.  For reported  and  confirmed  structure fires  the
   response  level  has not  been  changed.  However, for  automatic
   alarms  relayed from  alarm  monitoring companies,  the  response
   level has been reduced.  For buildings under 4 stories  in height
   the Department now sends only one apparatus. For buildings from 4
   to  8 stories  2 apparatus  are sent,  and for  over 8  stories 3
   apparatus plus  a Battalion Chief are  dispatched. The reductions
   in  response  levels  to  these  types  of  alarms  is  based  on
   experience with  these alarms. The net  effect is to  allow us to
   maintain our RCOs as well as a net reduction in  noise levels and
   risks to  citizens and firefighters during  unnecessary emergency
   responses. 

   The number  of false alarms  has been growing  at a steady  level
   over  the  past number  of  years  and is  a  source of  concern.
   Apparatus  and crews  are  now  responding  to over  8,000  false
   alarm/no fire incidents per year. A future report to Council will
   outline a recommended false alarm reduction strategy.

   Requirement for Additional Battalion Chief

   Prior  to January  15, 1995,  the Vancouver  Fire  Department was
   divided into four  Districts.  These four  Districts were managed
   by  senior   officers.    An  Operational   Assistant  Chief  was
   responsible  for supervising  one  District  and three  Battalion
   Chiefs  were responsible for the supervision in each of the three
   remaining  Districts.    On  January  16,  1995  the  Operational
   Assistant  Chiefs   converted  to  day  shifts   thus  in  effect
   eliminating the District the  Assistant Chief was responsible for
   supervising.  The   responsibility   of  supervision   for   that
   eliminated  District  was  transferred  to  the  three  remaining
   Battalion Chiefs.

   On October 16, 1996 the Vancouver Fire Department began providing
   contract  fire protection  services to  the  University Endowment
   Lands.  The University Fire  Department prior to the amalgamation
   had one Operational Assistant Chief on each shift responsible for
   the daily control and operations of the emergency services within
   that geographic area.

   Today  Vancouver Fire  and Rescue  Services uses  three Battalion
   Chiefs  to effectively control  an area that  five senior officer
   were  responsible for two and  one-half years ago.   This command
   system is  not working efficiently.  The increasing complexity of
   the responsibilities of the Battalion Chief within each District,
   the increased size of  the geographic area of  responsibility for
   the  Battalion  Chief, and  the  managerial  expectations of  the
   Battalion  Chief of today suggests that a fourth district under a
   fourth  Battalion  Chief  should   be  considered.  The   current
   deficiency in  the number  of senior  fire ground  commanders was
   recognized in the TriData Study.

   The TriData Implementation Planning  team has recommended that an
   additional  Battalion Chief  position  per shift  be created  and
   funded once  the identified  cost savings from  redeployment have
   been demonstrated.  Prior to implementation, a  further report to
   Council will  be  presented providing  further justification  and
   funding sources. 

   U.B.C.

   To  preserve the same standard of apparatus staffing at U.B.C. as
   in the rest of the City, an additional firefighter position at an
   annual  cost  of  approximately  $325,000  (based  on  10th  year
   firefighter  rates)  is  required.  This goes  beyond  the  level
   required  under the present service contract with the Province (7
   firefighters  on duty per shift). It is recommended that the City
   approach   the  Province   to  fund  this   additional  position,
   particularly considering the current and  the potential projected
   growth in the area and the risk levels.
   Storage of Reserve Apparatus

   Actual storage space for  reserve fire apparatus in  current fire
   halls is  becoming very limited.  In addition, compared  to other
   types of storage, using fire halls as storage is not particularly
   economical. A review  of potential alternative apparatus  storage
   facilities  and the  associated  costs will  be  carried out  and
   reported back to Council at a later date.

   ENVIRONMENTAL IMPLICATIONS

   The overall noise  impact and  diesel exhaust  emissions will  be
   reduced  due to  the use  of smaller  equipment for  most medical
   incidents. Also, the dedicated  use of training apparatus, rather
   than  moving vehicles back and  forth to the  training site, will
   help reduce noise and pollution levels.

   SOCIAL IMPLICATIONS

   The  full  implementation of  the recommended  redeployment plan,
   including  the use  of  multi-purpose  vehicles,  more  practical
   vehicles for  medical responses,  and increased number  of rescue
   vehicles  and technical rescue support units, will provide a much
   more effective  multi-hazard  emergency response force. This  can
   be  done   without  compromising   the  ability  to   safely  and
   effectively  fight fires.  Vancouver Fire and  Rescue s increased
   capability  to  respond  effectively   to  the  wide  variety  of
   potential  risks present  in  Vancouver  today,  including  major
   disasters such  as earthquakes, will  reduce the severity  of the
   impacts on Vancouver s residents. 

   PERSONNEL IMPLICATIONS

   Three Captain positions and  four Lieutenants positions per shift
   will revert  to firefighter  positions. This can  be accomplished
   very quickly through normal attrition so no current officer  will
   be reduced in rank.

   FINANCIAL IMPLICATIONS:  FUNDING FROM THE PLANT ACCOUNT

   When considering  the 1996  Operating Budget, Council  approved a
   plan  to move all fire apparatus to  the Plant Account.  This has
   the advantage of smoothing the  peaks and valleys associated with
   the replacement costs of fire  equipment in the annual  Operating
   Budget.  The  plan provides for new equipment to  be purchased by
   the Plant Account as it is replaced and for  rental rate  funding
   to be added to the Fire Department budget as  the equipment comes
   on stream to provide for its eventual replacement.

   The transfer of fire equipment to the Plant Account is unusual in
   that  it is  the first time  that a  major component  of the City
   fleet has been moved into  the Plant Account without accompanying
   funding.  In  short, the  expectation is that  the Plant  Account
   will finance the  replacement of the  fire equipment rather  than
   accept the equipment  paid for  and then accumulate funds for its
   eventual  replacement as is the  case for most  other equipment. 
   This has significant consequences for the  cash-flow in the Plant
   Account which was not been set up to operate in this fashion.  As
   a result, staff  have reviewed the cash-flow projections  for the
   Plant Account to  determine its ability  to maintain its  primary
   objective--to provide  funding for  equipment  replacements in  a
   normal  manner--and  to  accommodate  the   replacement  of  fire
   equipment.

   Based  on   the  replacement   schedule  proposed  by   the  Fire
   Department, the Plant Account  will assume responsibility for the
   initial purchase of approximately $14.6 million of fire equipment
   for which  there is  currently no replacement  provision.   Taken
   alone, this expenditure  over the  next 15 years  will leave  the
   Plant  Account   in  a   deficit  position  because   the  annual
   replacement schedule never provides sufficient funding to make up
   for the unfunded early purchases.  

   However, considered as part of the overall cash-flow of the Plant
   Account, the  fire equipment replacement schedule  is more easily
   accommodated because,  at present, accumulated  replacement funds
   from all  equipment in  the Plant Account  exceeds the  projected
   annual replacement  costs.    Based  on current projections,  the
   Plant Account will have  a positive cash balance until  about the
   year  2010 at which time, the replacement of fire equipment being
   purchased in  1996/97 leaves  the  Plant Account  in a  temporary
   cash-flow  deficit position.  This  is cause for  concern since a
   cash  infusion  to the  fund would  be  required to  maintain the
   overall equipment replacement schedule.

   The  way  to  deal  with  this  situation  would  be  to  provide
   additional  funding to the Plant Account now to guard against the
   future  cash-flow  shortfall.    The  proposal  to  re-equip  and
   redeploy the Fire Department  provides an opportunity to allocate
   that  funding, beginning  in 1999.   By adopting  the replacement
   schedule  identified in  this  report, the  Fire Department  will
   produce  operating savings  estimated at  $335,000 annually  as a
   result of eliminating officer positions.   It is recommended that
   those  savings be  allocated  to the  Plant Account  beginning in
   1999.  

   This additional  capital infusion over  the next decade  does not
   completely  eliminate  the  projected cash-flow  problems  in the
   Plant Account.  As the first round of equipment purchased for the
   Fire Department comes up  for replacement, additional funding may
   have to  be provided.   However, before those  potential problems
   arise, the Fire Department and Fleet Management will have had the
   opportunity to review and adjust the replacement schedule and the
   rental rates  for the new equipment.  This situation will also be
   reviewed  as part  of a  more comprehensive  review of  the Plant
   Account  being  undertaken  by  Fleet  Management  and  Financial
   Services.    However,  it  should be  noted  now  that additional
   funding, from the Operating or Capital Budgets may be required in
   future years.

   It  should be  noted  that the  impact  of not  undertaking  this
   replacement  is that costs to  the operating budget  will be much
   higher  over the  next  15 years.  The  savings result  from  the
   conversion of the fleet to fewer and less expensive apparatus and
   from the officer cost savings that arise from the change.

   With  these cautions,  the  Director  of  Finance and  the  Fleet
   Manager recommend that  Council approve the replacement  schedule
   proposed by the  Fire Department and that  the savings identified
   as  part of the redeployment be allocated to the Plant Account to
   reduce the  overall cash-flow  shortfall identified in  the Plant
   Account.

   IMPLEMENTATION AND COMMUNICATIONS PLAN

   The six  quints which have already  been tendered as  a result of
   the  postponed  replacements over  the  past  several years,  and
   funded through  existing funding  in the  Plant Account,  will be
   delivered late this year.  Additional equipment will be delivered
   and put into service beginning in 1998. Staff cost savings due to
   the  reduction in the number  of officer positions  will occur as
   the new equipment is put into service.

   A report to Council on the most  economical service life for fire
   apparatus will be forthcoming during the second half of 1997.

   Another report  to Council is planned for late 1997 and will deal
   with options to reduce the number of false alarms responded to by
   Fire and Rescue Services.

   CONCLUSIONS

   This  redeployment of  emergency  fire apparatus  and staff  will
   result  in  a cost-effective  solution  for meeting  the  City of
   Vancouver's  emergency response  needs.  Significant annual  cost
   savings can be  achieved without sacrificing our  ability to meet
   the primary risks facing the citizens.


           *           *           *           *           *

   APPENDIX A
   RECOMMENDED DEPLOYMENT (OPTION 6 - TRIDATA REPORT)
     19 Quints, 6 Rescue Engines, 4 Engines, 8 Life Support Units
    FIRE         1st         Personnel        2nd         Personnel        3rd          Personnel           TOTAL
    HALL       (Quint)                                                                                    Personnel
     1      Q1                  4                                                                             4
     2      Q2                  4                                      LS2                  2                 6
     3      Q3                  4         E3                 4         LS3                  2                 10
     4      E4                  4         Tw4                -*        LS4                  2                  7
     5      Q5                  4                                      LS5                  2                 6
     6      Q6                  4         E6                 4                                                8

     7      Q7                  4         R/E7               4                                                8
     8      Q8                  4                                      LS8                  2                 6
     9      Q9                  4         R/E9               4                                                8
     10     E10                 4         Q10                4*        LS10                 21                8*
     12     Q12                 4         R/E12              4                                                8
     13     Q13                 4                                                                             4
     14     Q14                 4                                      LS14                 2                 6
     15     Q15                 4         R/E15              4                                                8
     17     Q17                 4         R/E17              4                                                8
     18     Q18                 4                                                                             4
     19     Q19                 4                                                                             4
     20     Q20                 4                                                                             4

     21     Q21                 4         R/E21              4                                                8
     22     Q22                 4                                      LS22                 2                 6
   TOTAL    20                  80        1O                 38        8                    141              131
     1. One staff member cross-manned from quint
     * Funding for one position sought from the Province.

     Current  Replacement Program -  apparatus replacement program based
   on oldest spare 
   Year Engine    Age  Ladder    Age  Rescue    Age  Annual Cost
   1997 A9138     22   A9152     20   A9212     16   $1,200,000
   1998 A9169     20   A9187     19   A9203      9   $1,200,000
   1999 A9171     20   A9162     20                  $1,130,000
   2000 A9114     20   A9179     21                  $1,130,000
   2001 A9141     21                                 $  500,000
   2002 A9193     21                                 $  500,000
   2003 A9198     21                                 $  500,000
   2004 A9188     22                                 $1,000,000
        A9199     22
   2005 A9177     18                                 $1,000,000
        A9149     18
   2006 A9166     17                                 $  500,000
   2007 A9126     18   A9178     24                  $1,130,000
   2008 A9109     18                                 $1,500,000        A9155     21
        A9197     21
   2009 A9104     18   A9146     29                  $2,260,000
        A9108     18   A9122     18
   2010 B9158     16   A9175     27                  $2,260,000
        B9184     16   B9159     16
   2011 B9160     17   A9120     20                  $1,760,000
                       B9167     17

   Total # Engines          21
   Total # Ladders          11
   Total Rescue and Safety   2
   Replacement costs:  Engines at $500,000 X 21 =    $ 10,500,000
                       Ladders at $630,000 X 11 =    $ 6,930,000
                       Rescues at $70,000 X 2 =      $    140,000
                       Total                         $ 17,570,000
   Annualized cost over 15 years in constant dollars:$  1,171,300
   Proposed Replacement  Program -  apparatus replacement  program based on  oldest
    spare.

    Year  Engine      Age   Quint       Age   L.S.U. s    Annual Cost

    1997  A9138*      23    A9152       20    4           $3,040,000
          A9169*      19    A9187       18
    1998  A9171*      19    A9162       19    4           $3,040,000
          A9114*      18    A9179       19
    2004                                      4 (chassis) $   280,000
    2005  A9149       18                      4 (chassis  $1,280,000
          A9177       18
    2006  A9166       17    A9122       15                $1,130,000
    2007  A9126       18    A9120       16                $1,130,000
    2009  A9109       20    B9167       15                $2,260,000
          A9197       20    B9159       15

    2010  B9158       16                                  $1,500,000
          B9184       16 
          A9108       19
    2011  B9160       17                      4           $1,020,000

    Total Engines     10    Total Quints      12    Total LSUs (12 Box and  chassis,
    8 chassis)

    Replacement Costs   Engines at $500,000 X 10 =              $5,000,000
                          Quints at $630,000 X 12 =                   $7,560,000
                          L.S.U. s at $130,000 X   12 =               $1,560,000
                          L.S.U. s chassis at $70,000 X  8 =          $   560,000
                                              Total Costs             $14,680,000
    Annualized cost over 15 years in constant dollars:                $    978,700  
        

    *    The   four   engines   in   1997   and   1998   will   be   replaced   with
    quints.