Nanaimo city council and Nanaimo Fire Rescue are taking advantage of a high Canadian dollar to maximize savings on the purchase of a new fire engine.
City officials believe they will save an estimated $16,000 by placing an order in U.S. funds to Calgary-based WFR Wholesale Fire and Rescue Ltd., by pre-paying, and by utilizing a performance bond through a third-party insurance company.
The first of three engines included in the contract was delivered this summer.
After initial trial and orientation the engine has been put into service and according to fire officials has exceeded expectations.
By using the same manufacturer, said Ron Lambert, Nanaimo fire chief, additional savings be achieved.
"This is part of our fleet replacement program," said Lambert. "By using the same manufacturer we can also save money through prepayment options."
The Type 1 engine costs $616,785 U.S., or about $606,900 based on a Canadian dollar at one cent above par.
By making the purchase now, city officials say they believe additional savings of about $15,000 can be met through the prepayment program, travel duplication, pre-construction analysis, staff time, tax savings and other contractual savings.
The engine is expected to be delivered in the spring of 2013.
As part of the city's five-year financial plan established in 2011, a third Type 1 engine is budgeted for to be ordered in 2013 with delivery in 2014.
Additional equipment needed to maximize the engine's potential will cost about $50,000 and will be funded through the city's capital reserve when the engine is delivered.