CR 01-087 Adopt Equipment Replacement Plan 2002-2006
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July 17, 2001
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Council Report 01-087
ADOPT EQUIPMENT REPLACEMENT PLAN 2002-2006
Proposed Action
Staff recommends adoption of the following: Move to adopt the 2002-2006 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.
Primarv Issues to Consider
Should the annual service charges to the general and special revenue funds be
increased?
· What changes have occurred in the equipment replacement plan since last year?
Staff Recommendation
Finance recommends adoption of the 2002-2006 Equipment Replacement Plan.
Supportine: Information
Equipment Replacement Plan 2002-2006
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Should the annual service charges to the general and special revenue funds be
increased?
After forecasting the future equipment needs of the general and special revenue funds it
has been determined that a service charge increase of $10,000 a year will help level off
the need for larger increases in the future and also sustain the equipment fund until
2020. This $10,000 increase will increase the overall general fund budget by about the
same amount.
What changes have occurred in the Equipment Replacement Plan since the last year?
Highlights of changes from last year:
Fire: The Laverne Pumper scheduled for replacement in 2002 has been pushed
out to replacement in 2003. The costs of the pumper should not fluctuate
too much over a one-year time frame. Purchasing the pumper one year
later than planned saves the city about $11,000 in gained interest
earnings in 2002.
Breathing apparatus for the fire department was moved up from 2003 to
2002. The cost of the apparatus increased $30,000.
Public Works: The purchase of a one ton dump truck has been moved back one year
from 2002 to 2003. The engineering van will need to be replaced in
2003 instead of 2004. A tractor replacement can be moved to 2003
instead of 2002.
Activity Center: The replacement of the copy machine is not needed due to a donation
of a new copy machine in 2001.
Finance: The financial software package replacement can be postponed until 2006
if we upgrade the current system in. 2002. In 2006 we would analyze
further upgrades or replace the entire system including utility billing.
City Hall The telephone system is scheduled for complete replacement in 2002.
After analysis, the advantages of upgrading instead of replacement
became apparent. Attached is a detailed memo regarding the upgrading
costs. Overall upgrading saves the city $45,000 in 2002.
Art Center: The copy machine will not need replacement until 2004.
Water Fund: The air compressor does not need replacement until 2004.
· $30,0 per year is allocated to replace
old comp ters and $5,000 peryear is
allocated fo etwork software upgrades.
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· Finance's currently the only network software
runni on a Unix environment. To resolve this
iss , the city will upgrade its' finance software
to a NT environment and postpone complete
repla ment until a later date.
· The cost the upgrade is approximately
$30,000. Tti city will than be able to postpone
complete repla ment of this system for
another five or si ears, saving $100,000.
EQUIPMENT REPLACEMENT PLAN
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City Hall
uipment
. An upgra of the current system will bring us
up to speed ith new technologies and save
the city approxl ately $45,000. The upgrade
will cost approxim ely $70,000.
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· The Lave e Pumper truck is scheduled
for replace nt this year but has been
postponed unt at least 2003 at a cost of
approximately $ 8,500.
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5 Equipment
· An unmarked hicle is scheduled for
replacement at a ost of $20,300.
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· T cost of equipment is allocated back
to th user departments based on life
expect cy of the equipment and cost.
· To maintai sufficient equity in this fund,
a $10,000 pe ear increase in charges
to departments .11 be implemented in
2002. This is equ to about 2% of
current charges.
EQUIPMENT REPLACEMENT PLAN
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Arena Equipment
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· Tt! Equipment Replacement Plan is a
valua Ie tool used to assess and plan for
future e ipment needs of the City of
Hopkins.
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I Department of Administration I
Memorandum
To:
Lori Yager
Jim Genellie
From:
Subject:
July 11, 2001
Telephone System Upgrade
Date:
Out current telephone system is ten years old. While the hardware is generally in good working
condition the software is old. We are using release five of the Fujitsu software. Fujitsu will have
release sixteen available by this fall. The cost of the upgrade, including installation is $33,690.
There are enough advantages to the new software to warrant the upgrade. This will prolong the life
of our current telephone system.
Some of the added features that the City will receive due to a telephone system software upgrade
incl ude:
Eliminate the need to dial "1" for local area codes. The current software does not recognize
the new local area codes, 612, 763 and 651 as being different from long distance area codes.
A workaround allows employees to dial these numbers but requires them to dial a "1 " first.
The PBX removes the "1 " before sending the number out to the local telephone network.
The Police Department, in particular, has experienced problems with this.
Dial "911" directly instead of "9 911". Because you have to dial 9 in order to get an outside
line with our telephone system you cannot dial "911" directly. We have made stickers,
which are attached to telephones, to remind employees of this. However, this could be a
problem in an emergency. The software upgrade allows callers using the City's phone
system to dial "911 " directly.
. Paging through phones. The receptionists currently have no way to let someone know that
there is a call waiting for them other then to send the call to the employee's phone. If the
employee is on the phone or is away from their desk, the caller will get the employee's voice
mail. The caller does have the ability to get back to the attendant but there is nothing further
that the attendant can do with the call. This feature would allow the attendant to page an
employee to let them know a call is waiting, even if they are currently on the phone with
another call.
Allows message on attendant console to be given to callers when they have been waiting a
predetermined length of time. Currently if the attendant is dealing with one caller, any
additional callers just hear the phone ring. It appears that we are simply not answering the
phone.
For those employees with more than one line, information on who is calling on a second line
is provided. The software upgrade will also allow the employee to join both of the calls.
\Telephone Upgrade. doc
I Department of Administration
New telephones will have the ability to dial directly from the Outlook information
management system. Also e-mails and voice mails can be accessed from both the telephone
and the computer.
IP telephony - in the future it will be possible to connect desktop telephones, mobile
telephones, desktop computers, portable computers, and handheld computer devices. The
Police Department is expected to utilize this technology in the next few years.
The software includes an improved voice mail/telephone management module. This will
allow us to make changes, such as name and extension numbers for new employees, that we
currently need Fujitsu to do.
In addition to the software upgrade Fujitsu is offering to upgrade our entire PBX. The cost of this
upgrade, including installation, is $4,400. This upgrade will position us to be able to take advantage
of new communication technologies in the future.
We are also considering two additional software add-ons: Caller ID and Call accounting.
Currently we do not have the ability to know who is calling us nor do the people we call know who
is calling them.
Inbound caller ID would be a welcome addition for most employees. The Police Department would
especially find it useful. Inbound caller ID may also allow the Police Dispatch to see which City
extension is dialing 911. Currently if someone uses a City extension to dial 911 the only thing that
will show up on the 911 display is "City of Hopkins." Employees have been instructed to stay on
the line and let dispatch know where they are calling from. However, this may not happen during an
emergency.
Outbound caller ID is becoming increasingly necessary. Some people receive information showing
them receiving a call from the City of Hopkins. Others get a message that it is an out of area call. As
more and more people get caller ID they come to expect to be able to see who is. calling them. Some
people will not answer calls that are not identified or have software that blocks these calls. Other
people, who receive the information that the call came from the City of Hopkins, call us back to try
to find out who called them. The receptionists have no way of knowing which employee made the
call. The new software would identify the individual employee's phone number on caller ID
displays. This feature will be able to be turned off if, for example, Police undercover officers need
to make calls that should not be identified.
The cost of the caller ID software is approximately $11,000.
Call Accounting will enable us to determine the number of calls that are made and received by the
City as a whole and by individual extensions. Currently if we want to know how many calls the
receptionists have to handle, for example, they need to mark each call on a piece of paper. We have
tried to use the number of calls handled as a work measurement but the best we can do is a manual
sample a couple of times a year. The cost of the call accounting software is approximately $8,000.
We may also want to take this opportunity to replace some individual telephones. However, the total
cost of all the upgrades will be much less than the cost of the entire replacement of the telephone
system. It will enable us to delay the total replacement for at least another five years if not longer.
\Telephone Upgrade. doc
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