CR 97-144 Adopt Equipment Replacement PlanAugust 11, 1997
Proposed Action
Staff recommends adoption of the following motion: "Move to adopt the 1998 -2002 Equipment
Replacement Plan ".
Overview
The plan is a detailed summary of the next five years of a 20 year schedule listing replacement of City
equipment for all funds. The items which are funded in the Equipment Replacement Fund 202 derive
their funds from the tax levy and support General Fund activities. Other items are funded from the
respective operations to which the items are assigned.
Primary Issues to Consider
• Is the 20 year schedule, especially the first five years, on target?
• Should the annual levy be increased?
• Response to equipment questioned at the Council work session.
Supporting Information
Draft - Equipment Replacement Plan 1998 -2002
Letter from Fire Chief - SCBA
Memo from Police Department - Computer
Revised 5 year and 20 year schedules of replacement
7
ohn E. Schedler, Finance Director
ADOPT EQUIPMENT REPLACEMENT PLAN 1998 -2002
Council Report 97 -144
Council Report 97 -144
August 11, 1997
Page 2
Background
The Equipment Replacement Plan has two main purposes:
1. A long range systematic planning guide.
2. Provides a method for projecting funding to smooth out large swings in the annual levy.
The Equipment Replacement Plan is a twenty year forecast of equipment needs in the City of Hopkins.
It is intended to alert the Council and citizens to the major equipment needs on the horizon. The first
year of the plan becomes an adopted equipment budget and relates almost completely to the operating
budget which is approved on a yearly basis. The remaining nineteen years represent an estimate of
equipment needs and funding capabilities of the City. Funding requirements vary drastically from year
to year. In order to maintain a more even levy year by year, the twenty year schedule is projected with a
3% inflation factor and a yearly average dollar need is calculated (presently $520,900).
The cash needs will experience a somewhat drastic roller coaster effect over the next 20 years given the
present equipment needs and a 3% inflation rate. Cash will increase through the year 2001 and then the
next years will have moderate fluctuation. The last three years of the schedule will reduce cash
drastically. In order to accomplish this pattern, it will be necessary to increase the 1997 levy by $20,000
to the $485,000 level - the third levy increase in as many years since inception of the Equipment
Replacement Plan in 1987.
The Equipment Replacement Plan's basic premise is scheduled replacement of present equipment. A
new item, must in the year proposed, be presented in the annual operating budget with a stipulation that
replacement will be necessary in the future. Flexibility of the Equipment Replacement Plan is
established through annual review, and revision if necessary. The annual review assures that the plan is a
continuing part of the budgetary process and that it will be consistent with changing demands as well as
changing patterns in cost and financial resources.
Highlights of changes from last year:
Fire: Eliminating the Haz -Mat van from the replacement plan to coincide with changes in operations.
A cost reduction of $37,900 in 1998.
Changes in the replacement cycle of SCBA (Self Contained Breathing Apparatus) units.
Replacement years extended from 10 to 15 years, however all units would be replaced at one
time rather than spacing a few units on several years.
Addition of an air compressor to the 20 year schedule. A compressor was authorized in the 1996
budget.
Police: Computer (Records Management Information System) cost reduced $30,000 from previous
estimates.
Council Report 97 -144
August 11, 1997
Page 3
Public Works: One tandem dump truck will be replaced by a lower costing single axle dump truck in the
year 2000.
Park's 3/4 ton truck replacement moved to 1998, one year earlier, due to condition of old unit.
Finance: Experience of the 1995/1996 installation of the Finance computer system indicates the
replacement projection can be extended from 7 years to 8 years. The replacement of the Novell
network may be of even a greater frequency and the initial set up need not be repeated. The costs
for both systems have been reduced by $10,000 for the 2004 scheduled replacement.
There were a few items for which the useful life was extended and /or minor cost adjustments made.
Memorandum
John Schedler, Finance Director
Copy: Don Beckering
From: Dave Klocek, Assistant Fire Chief
Date: April 28, 1997
Subject: Equipment Replacement, SCBA
Schedlerscbaequip
Office of the Fire Department
The fire department is currently using self contained breathing apparatus (SCBA)
purchased in 1989, 1991, and the latest acquired were with Engine One in 1992. We
find the usual replacement cycle with most departments is 10 -15 years with about half
surveyed every ten years. We have a good maintenance and testing program and we
have chosen to replace in a 15 year cycle.
The SCBA we use carries a composite wrapped fiberglass around an aluminum
cylinder. NIOSH and OSHA currently rate these bottles with a 15 year service life.
This regulation further contributes to our 15 year replacement cycle. We have 30
SCBA units, four high pressure one hour units for the Hazmat team and 26 one -half
hour units carried on the fire apparatus. We also have one spare air cylinder for each
unit.
If a SCBA unit is down for repair, we must run short until the unit is repaired, as we
stock no spare units. Our units are used extensively in training and anytime we are
working in a hazardous or oxygen deficient atmosphere. This is just about all of our
emergency calls.
Considering the SCBA to be the fire fighter's lifeline for respiratory protection, replacing
the units on a consistent cycle and all units in one purchase will insure a bid process
and best price consistent with City policy.
Please contact Assistant Chief Klocek or Chief Beckering if you have questions or we
may be of assistance.
Memorandum
To: JOHN SCHEDLER, FINANCE DIRECTOR
Copy:
From: HEATHER M. ALEX 6ce I " a4k.
l
Date: April 15, 1997
Subject: 1998 EQUIPMENT REPLACEMENT PLAN
POLICE DEPARTMENT COMPUTER
VARIANCE IN AMOUNT FROM 20 YEAR PLAN:
POLICE DEPARTMENT
The police department has formed a computer advisory group which is developing a
plan for replacing the current hardware /software for the records management system.
We must replace this system in the next 18 months because the technology will no
longer be supported by the state of Minnesota for crime reporting and data
communications. Our current system also will not handle the "2000" problem.
Our research group is exploring options that would meet our needs. A very preliminary
overview of the range of options available falls roughly within a cost range of $150,000
—$220,000. Further research is needed to determine which option is the best choice.
For budgetary purposes, I recommend we change the current scheduled amount of
$250,000 to $220,000 We plan to carefully research all options and make the best
choice possible while keeping cost considerations in mind.
C - 8
1998 EQUIPMENT REPLACEMENT PLAN - POLICE
ITEM: POLICE RECORDS MANAGEMENT INFORMATION SYSTEM
(POLICE COMPUTER)
HISTORY OF THE ITEM:
The Police Department currently operates a COMPUTERIZED records management system. The current
system was purchased in 1989 for about $90,000. At that time, this system was relatively state -of- the -art
and was our first venture into the computer age. The system has functioned well but is now ready for
replacement.
WHY DO WE NEED TO REPLACE 'tilt ITEM?
AGE — end of life span for hardware, system no longer supported or manufactured.
TECHNOLOGY — Current system won't handle the Year 2000 problem or be able to transfer records
to the state after about 18 months from now due to communications protocol changes.
WHY IS THE BUDGETARY FIGURE SO HIGH?
The budgetary figure was cut $10,000 this year for a new figure of S220,000. The figure is based on a
replacement of our current hardware and software by our current vendor, MaSys Corporation.
It's a highly engineered, complex and specialized system. Unlike packaged software for other government
applications, such as finance, police systems are a narrow niche market, and only a handful of vendors
produce packages that have a good track record in Minnesota.
Public Safety Systems are increasingly communications based. Statutory requirements of data transfer to
remote computers at the State of Minnesota using specific communications languages is of primary
importance.
Other reasons driving costs:
365/7 environment — "we never sleep"
Fault tolerant system — drives hardware cost up but provides uninterrupted processing, even if a
component such as a processor disk drive should fail.
Need a proven product must work the moment it is plugged in — can't afford any failures
Managed System, full LOCAL turnkey maintenance
Additional module for automating work now done manually and improving statistics, officer activity
WHAT OTHER OPTIONS ARE AVAILABLE?
The police department Computer User's Group is working on examining all the options available to us. At
this time, we have identified the following options as some possibilities:
• Replace the current ENFORS system as above. — about 5220.000, plus annual maintenance, plus
peripheral hardware (network)
• Install our own LAN and buy a records management system that we install on it and maintain. Ballpark
figure (535.000 — 75,000) PLUS installation and training costs, data conversion costs (if data
conversion is available)
• Join another city and share a records system — Eden Prairie may be interested
p Subscribe to a management service such as LOGIS on an annual subscription basis (530,000/year)
® Buy a new mini - computer and records management software (5150,000 up)
- - 1
•
The computer user's group has seen two system demonstrations to date. We are scheduling a third for this
month and continue our research. We are trying to do this without hiring a professional consultant, but
may have to consider this option if we need to develop an RFP and advertise for bids. We are also trying to
look as system administration issues involved in networking.
Before the dollars are spent, be assured we will have done our best to select the best system based on
performance and economy.
Heather M. Alex
Administrative Services manager
CAPITAL EQUIPMENT REPLACEMENT PLAN
FIVE YEAR EXPENDITURE SUMMARY
ROGRAM FUNDING
CATEGQRY PROJECT TITLE SOURCE 1998 1999 2 Q00 2.01 2002
C - Luverne Pumper E.R. 318,500
C -2 Marked Patrol Vehicles (11) E.R. 56,400 58,800 91,200 62,800 65,800
C -3 Parking Enforcement Vehicle E.R. ' 14,000
C -4 Utility 4x4 E.R. 29,800
C -5 Administration Vehicles (5) E.R. 18,000 18,600 19,100 19,700 20,300
C -6 Radio System E.R. 470,800
C -7 Body Armor E.R. 5,800
C -8 Police Computer E.R. 220,000
C -9 Police Copy Machine E.R. 14,200
0 -10 Police Logging Recorder E.R. 25,000
C -11 4X4 One Ton Truck E.R. 22,000
C -12 One Ton Dump Truck (2) E.R. 30,500
C -13 Single Axle Dump Truck E.R. 75,000
C -14 Tandem Dump Truck E.R. 83,000
C -15 Skid Loader E.R. 32,500
C -16 Grader E.R. 80,000
C -17 Sweeper E.R. 115,300
C -18 1/2 Ton Pickup E.R. 15,900
410 19 3/4 Ton Utility Truck E.R. 21,000
-20 Tractor E.R. 32,700
C -21 Truckster (3) E.R. 12,700
C -22 Riding Mowers (2) E.R. 11,800
C -23 Gang Mower E.R. 42,300
C -24 Turf Sweeper E.R. 10,900
C -25 City Hall Main Copy Machine (2) E.R. 19,000 35,000 20,800
C -26 City Hall Micro Network Upgrade E.R. 10,000 10,000
C -27 Optical Scanner E.R. 6,000 6,800
C -28 Election Equipment E.R. 68,000
C -29 Telephone System E.R. 102,700
C -29 Telephone System W.F. 8,000
C -29 Telephone System S.F. 8,000
C -30 4X4 3/4 Ton Dump Truck W.F. 21,900
C -31 Air Compressor W.F. 17,700
C -32 Public Works Copy Machine W.F. 9,100
C -33 Jet Vactor S.F. 100,000
C -34 Refuse Truck R.F. 127,700
TOTAL CAPITAL EQUIPMENT REPLACEMENT PROGRAM 461,900 344,700 470,900 776,500 631,100
FUNDING: EQUIPMENT REPLACEMENT FUND (LEVY) 461,900 217,000 339,900 776,500 597,400
ENTERPRISE FUND 127,700 131,000 33,700
0
st
$ o.
0
0
h
0
N
0
N
a
get
•
f ly sa
.0
z
N 0 R 1 W O N
O. O .O O - O_ 0
O
H
0
1n
1 •..MS M M Al t Q N ND N• r4
C,C A'G
< < < < <
aaaa
h rn ( rn
Z s < <
Y < u u
g U S < <
ae O" — n _ s
O
N N N N N
O
‘CO
O
T
O'
O
N
O
8
8
8
O
• O m 'N: N Oo . PI • M[r N r • N . IT N: ow- N 0 0 N d . _ .. N 0 . .. O H
M
N CO. O 0..•_ N N O _ ?• o Op O +O. _ Tv m a
: O' O. O _ _ _ _' N N N.- N N M M' T T R T
M I M Pf n 4T. M M. Ti n
1 1 N
.a
O
m
0
t?C w . t O � E C..aG
h
C7 Vt 3' - l r i— I-
8
O
8
N
O
0
O
•
0
S
N
8
8
8
w
8
N..
8
8 8 .:.
8.:8
e en.
p . :OD. 00 O 0 0 0. 0. 0 O: 0 h n N N N 0 0. 0
U .ems 4�
HU C
e
a 4 g
Z z z z-
O O O O
• l a d `
• a
S . O O O.
OD m• 00
n•
8
N
8
G v 8 -
8
R
.4 c4 6,
y i! G.
O
Fe L -f 14 4:.:4 w: w. C >CA a.
✓ �� 3 3 • 0 :: 0
f- H F• F 1 • i z V V) CO
N 0, h 00 ' O' 00 N , N M
N O N R
_
N N N N N N 0 M T a
MD 00 CO 00. OD 00 OD OD 00 00 00 00 OD OD
M ON a O O o0
8 ..
8•.
N
N
8
Q
N t0
O O •o, O"
. n .
vi h N
O • .ot• 00 . O: O - n: 0 :v1
8
8
8
8
0
8
✓ ^ F 3 <
y :e F
H y P
mo d .: a a ,.. m
z..
° • a :p g ' 0. 0 : t vi
ec
▪ N k: ? �' fi 0
8:
o.o ' y
N • N •n h n
8
8.
8...
8
V1 :
St
CI) �.
re CA
• < d
g : a z. o
014
su w .. tL
to, y j
lL a t :
la ILI
OCpC OooG t4 oG
s
O
N
8
8 8
8.
N:N.
N• .
N .: 0'
A : eat
8
_. ev
0 :'
8
n N
Q ' .
8::s 8
:N 0
: A
8 ` >&
• O
N r
8 :::8
OO 'N
N :•P1
8 ':8
t i
8 "8:
o: 4":
8
8:8
§ 8
ea .
P ..�..
A r
OO:
e
• tn e�
8
YF
f!1
8:...
::OD
8
ar
8 8 8
R: h
8', 8
8
8 8 8
N - N Q VD .D
8
8 .'
.q
8
8 :8
H N
00
8
F
O �.y - F
< 1« 3 u. z <=4
x3 CI3 a c^.
8 8 8 OD
rn
8
OD
8 8 8
wf • m
T N A
8 s
eN h n
N N
S s
N OG
N N P
�D n
F O
N f1D N
r N r
N s
S O 8
N Q m Q
m N A
N 0
8 8
✓ w�i O.
P1 N
8 8 8
v i
N m A
Q r
8 8 8
N ' P
N N
8 8
O N sD
f� Q N
Al 1�1
8
O ry
r N
r T
r N
8
O
8
h e0 0 D
A Q
8 8 8
N • N N
OD m
O O Q
O,
r Q O
�p N
8 8 8
. r- m
P- N
N P:
8 8 S 8888$8888$ 8 g'$
O NO R N r m f� 'n f� A N N o0
n 8 01 Q ▪ O • N en b m. e
• N- N r f- N O
8 8 8
e � e
8.888.888
8 °_° = N " r r ' !D A
8 8 8 8 8 8 8
N N / O r
O O O
m Q . N N 0
8 8 8 8 8
`O
N R O m ?