Memo - Equipment Replacement Plan 2006-2010
CITY OF HOPKINS
J.iQN'~NCE PEP ABTMENT
MEMORANDUM
From:
July 21,2005
Mayor & City Council
Christine Harkess, Finance Director
Date:
To:
Subject: 2006-2010 EQUIPMENT REPLACEMENT PLAN
Overview
Attached is the second draft of the 2006-2010 Equipment Replacement Plan. Changes from the
first draft include:
. Extending the lives of public works equipment
o Dump trucks from 15 to 17 years. The lives on these trucks were previously
extended from 8 to 12 years.
o Smaller front-end loader from 15 to 18 years
o Street sweeper fro m 10 to 12 years
o Brush chipper from 15 to 20 years
o Asphalt paver from 15 to 20 years
. Evaluating the replacement of finance software. Due to the proposed upgrade a
complete replacement should not be necessary in the future and therefore replacement
costs in future years was significantly reduced.
. The replacement of the public safety radios was also reviewed and due to additional
information received from Hennepin County future replacement costs were decreased.
Over the past 10 years the public works, fire and police departments have made significant
adjustment to the lives of their equipment in an effort to assist with the long-term feasibility of
the ERP while maintaining reasonable life expectancies ofthe equipment. Extending the lives of
the equipment does not come without risk. As equipment ages maintenance costs also increase
thereby creating a balancing act of when to replace or repair equipment. All equipment is
analyzed on an armual basis to de.termine its replacement schedule.
In addition, to address your question regarding the fire admin vehicle scheduled for replacement
in 2006 this is a needed replacement and is the vehicle that stays with the duty officer for the
week he is on call. Because of the re-organization the fire department will be decreasing the
number of admin vehicles, which are former police cars. These used police cars will not be sold
instead of being transferred to the fire department. The department is still reviewing possible
uses for the "old" hazmat truck and once a use has been determined it will be allocated to that
use or sold.
ERP Goals
. Maintain the integrity, reliability and safety of city equipment.
. Provide funding for replacement of current equipment as needed.
. Forecast funding needs and tax implications to assure strong long-term financial stability.
Attached is the second draft of the 2006-2010 equipment replacement plan.