CR 2004-126 Adopt Equipment Replacement Plan
. August 4, 2004 ~ Council Report 2004-126
ADOPT EQUIPMENT REPLACEMENT PLAN 2005-2024
Proposed Action
Staff recommends adoption of the following: Move to adopt the 2005-2024 Equipment Replacement Plan.
Overview
The equipment replacement plan is a detailed summary of the next five years of a twenty year replacement
schedule, for most equipment of the City of Hopkins. General and Special Revenue fund equipment items
are placed in the Equipment Replacement Fund budget which derives its revenues from service charges to
the General and Special Revenue funds, equipment sales and interest earnings. The Enterprise fund
equipment in the plan is placed in the individual enterprise fund budgets, in the year in which the
equipment is to be purchased.
Primary Issues to Consider
. Should the annual service charge to the general fund be changed?
. . What changes have occurred in the equipment replacement plan since last year?
Staff Recommendation
Finance recommends adoption of the 2005-2024 Equipment Replacement Plan.
Supporting Information
. Equipment Replacement Plan 2005-2024
/ 4Lft
/" '
1" ,.4 ...-
/,...-" ~ {.- -' ' ,.....--.
James A Genellie
Acting City Manager
Financial Impact: $ Budgeted: Y IN Source:
Related Documents (CIP, ERr, etc.);
Notes:
.
Council Report 2004-126
. Page 2
Should the annual service charge to the general fund be changed?
The levy for the Equipment Replacement Plan was cut as part of the 2004 budget adjustments. In
order to fully fund the Plan without the need to issue bonds or notes, the levy should be increased by
2% each year.
What changes have occUlTed in the equipment replacement plan since last year?
Fire:
The Luveme pumper has been moved up from 2007 to 2005. It had been moved back in 2004 but is
in need of major repairs so replacement is necessary.
The Duty Chief vehicle has been moved back from 2005 to 2006.
The Stuphen aerial truck refurbishment has been moved back from 2006 to 2007.
Police:
. The K-9 marked patrol vehicle has been transfen"ed to marked patrol vehicles since the K-9 program
has been eliminated. It will be used by the power shift officers, This is an overlap shift that provides
additional coverage during peak call times. It was scheduled for replacement in 2005 but has been
moved back one year to 2006. This vehicle is on a four-year replacement schedule.
The Parking Enforcement Vehicle (Trackster) is still scheduled for replacement in 2009. However,
the vehicle has been experiencing significant maintenance costs, The Depmiment is reviewing
options for replacing this vehicle and it wiII likely be moved up on the replacement schedule in the
future.
City Hall:
The main copy machine costs have been reduced due to the lease changes.
Finance computer system software has been moved up to 2007 for an upgrade only to InvisionlTyler
Technologies software. This will move full replacement back until 2014,
Public Works:
Activity Center has added their refrigerator/freezer for replacement in 2006. The cost is $6,500.
The skid loader replacement has been extended from 2008 to 20 10 and the cost decreased for a
$12,000 savings. Cost has been reduced due to cooperative bidding by the State. An additional skid
. loader will be purchased in 2004 and will become an item in the ERP for replacement in20 16. This
skid loader will be a smaller machine than the other one.
Council Report 2004-126
. Page 3
The Parks Dept. trailer has been moved up from 2006 to 2005. The cost of the trailer is $1,400.
The stump cutter replacement has been extended from 2007 to 2012 and its useful life from 15 to 20
years,
The front end loader replacement cost has been increased $20,000 to reflect actual cost.
The 1/2 ton pickup for the Street Dept. has been changed to a 3/4 ton 4x4 with a plow. The actual
cost has been increased by $5,800 to reflect this upgrade.
The 3/4 ton truck for the Street Oept. has been upgraded to a 4x4 with a plow. However, the cost
will be lessened by $3,200 to reflect actual cost.
The Sewer utility truck bas been upgraded to a 3/4 ton truck. This will cost an additional $3,200 in
2006.
The Sewer 3/4 ton utility truck replacement in 2007 cost has been decreased by $5,100 to reflect
actual cost. The two Sewer utility tmcks have been combined on one worksheet.
.
.