CR 08-083 (2009-2013 Equipment Replacement Plan)August 27, 2008 Council Report 2008-083
2009-2013 EQUIPMENT REPLACEMENT PLAN
Proposed Action
Staff recommends adoption of the following motion: Move to adopt the 2009-2013 Equipment Replacement
Plan.
Overview
The equipment replacement plan is a detailed summary of the next five years of atwenty-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.
Approval of the 2009-2013 allowes staff to incorporate the 2009 ERP items into the 2009 budgets and begin
preparation for their purchase. Items that fall under the Minnesota Statutes Uniform Bidding/Contracting
Laws will require further approval by the council before their purchase.
Staff is recommending adoption of the plan.
Primary Issues to Consider
• Should the annual service charges to the general and special revenue funds be adjusted?
• What changes have occurred in the equipment replacement plan since last year?
Supporting Information
• Power point presentation
• 2009-2013 Equipment Replacement Plan
~~~~i~''-ems
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ as provided in plan Budgeted: YIN X N Source: Various
Related Documents (CIP, ERP, etc.): ERP Notes:
EQUIPMENT
REPLACEMENT PLAN
City of Hopkins 2009 - 2013
ERP Future
• Revenues in the Equipment Replacement
fund are derived from charges to city
departments that use the equipment.
• Cash flow projections are updated annually
to ensure adequate funds for scheduled
replacements.
City Hall Equipment
The large city hall copy machine is
leased on a 3-year lease
•Engineering printerlscanner isleased
on a 5-year lease
~ Document management scanner to be
replaced at a cost of $6,500
• Remaining election booths to be
replaced at a cost of $6,500
ERP Background
•The city has established an equipment
replacement plan that is reviewed and
adjusted on an annual basis.
• For 2009 the city is planning on
replacing or upgrading seven vehicles or
pieces of equipment.
•Follawing are some highlights of the
plan.
City Hall Equipment
•Annually the city replaces a portion of its
obsolete computers with newer
technology.
• $30,000 per year is allocated to replace
old computers and $16,700 per year is
allocated for network upgrades.
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Fire Equipment
•The fire department annually
assess its fleet and adjusts the
useful lives of the equipment
accordingly.
•There are no vehicles scheduled
for replacement
•$5,000 is budgeted for workout
equipment in the fitness center
ODumbbells will be purchased in 2009
EQUIPMENT REPLACEMENT PLAN 1
Police Equipment
•Scheduled for replacement are
Oan admin vehicle -unmarked
Oone squad car
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Public Works Equipment
• No equipment is scheduled for replacement in
2009.
• All public works vehicles and equipment is
reviewed annually and useful lives adjusted
while maintaining the integrity, reliability and
safety of the vehicles, equipment and
employees.
Public Works Vehicles
•Aerial lift truck utilized by Forestry Dept
• Tractor
Two riding mowers
• 1 ton dump truck
•Trailer
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Funding Equipment Replacement
•The cost of equipment is allocated back to
the user departments based on life
expectancy of the equipment and cost.
• No increase to the charge is planned for
2009.
Conclusion
•The Equipment Replacement Plan is a
valuable tool used to assess, plan and fund
future equipment needs of the City.
• By annually evaluating equipment and
adjusting useful lives where practical, the
city has been able to maintain the reserves
in this fund to cover equipment replacement
costs without the necessity of issuing capital
notes or debt.
EQUIPMENT REPLACEMENT PLAN 2