CR 96-145 Adopt Equipment Replacement Plan•
September 12, 1996
Proposed Action
Staff recommends adoption of the following motion: "Move to adopt the 1997 -2001 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
• Supporting Information
ti e
O P K
ADOPT EOUIPMENT REPLACEMENT PLAN 1997 -2001
• 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.
Council Report 96 -145
• Draft - Equipment Replacement Plan 1997 -2001 (Please bring the copy you received 8/13/96)
• Letter from Fire Chief
• Letter from Police Chief
• Revised 5 year and 20 year schedules of replacement
ohn E. Schedler, Finance Director
Council Report 96 -145
September 12, 1996
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 $498,200).
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 2000 and then the
next six years will deplete the cash balance. The last eight years of the schedule will smooth, but will
pick up by 2015. In order to accomplish this pattern, it will be necessary to increase the 1996 levy by
$15,000 to the $465,000 level - the second 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:
Police: Squads (7) extended life from 2 to 3 years as 3 year warranty options are now purchased.
Police & Fire: New 800 MHZ radio system appears for the first time on the 5 year summary sheets.
Public Works: Single axle dump scheduled for replacement in 1998 was deleted because the truck that
is used with the chipper can handle needed capacity for this size vehicle.
Litter Hog - seldom used will be sold and not replaced.
Park Superintendent's 3/4 ton truck extended from 8 to 10 years and will be replaced with a 1/2
ton truck.
Council Report 96 -145
September 12, 1996
Page 3
The replacement life on two park tractors was extended from 15 to 20 years.
Current turf vac will not be replaced - deleted from schedule. Simple construction for which
major parts will not wear out.
The current Engineering van was acquired from the Fire Dept. in 1995. This 1987 Ford van is in
excellent condition and the scheduled replacement has been extended from 1999 to 2004.
Building and Equipment Services will drop one 1/2 ton pickup from schedule. Shop will utilize
surplus vehicle from other sources.
Sewer/Water will drop one 1/2 ton pickup. Meter reading truck will be replaced with a different
vehicle.
The water meter computer has been dropped from the schedule. Future acquisition, if necessary,
would be requested under the new equipment procedure with it first being requested in the
annual budget.
Finance: Experience of the 1995 /1996 installation of the Finance computer system indicates the
replacement projection can be extended from 6 years to 7 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 $34,000 for the 2003 scheduled replacement.
HRA: The skid loader will not be replaced and is dropped from the schedule. The new 4x4 pickup
will deal with snow removal.
There were a few items for which the useful life was extended and/or minor cost adjustments made.
Replacement of the Police/Fire radio system in 2016 has been dropped from the 20 year schedule. The
departments felt that a complete replacement in 15 years would not be necessary, but rather minor
upgrades would keep the system up to date.
DATE:
TO:
FROM:
SUBJECT:
August 27,1996
Steve Mielke
George Magda!
Haz -Mat Squad 10 Replacement
CITY OF HOPKINS
MEMORANDUM
A question has come up regarding the replacement of the city Haz -Mat unit. It is my
recommendation that it remain in the replacement schedule until further evaluation can be
done.
Our State owned vehicle and equipment will greatly increase our abilities during a chemical
emergency but it does not replace all of our current equipment. Our duties as a State
"Chemical Assessment Team" are to identify a potentially hazardous situation and, if
necessary, call in the State "Emergency Response Team" for mitigation. Our State equipment
does not include:
• leak control supplies such as "A" and "B" patching kits and rail car dome clamps,
• over pack drums,
• corrosive and alcohol foams,
• neutralizing agents or,
• a sufficient quantity of absorbents.
We currently have this equipment on Squad 10. Mitigation can start immediately without the
one hour delay expected for the State "Emergency Response Team ".
Our association with the State will hopefully be a long and mutually beneficial one. If we
eliminated our in -house Haz -Mat capabilities Hopkins citizens could suffer if the State changes
policy or the funding of this program.
Squad 10 is also used by the police and fire departments as a command post/communication
center for major incidents. It contains additional radios including public works, a 100 watt
repeater and other equipment for this purpose.
Should it be replaced in 1998? Probably, it will be almost 20 years old by then. Does it have
to be replaced? No. We have the option of holding on to the existing truck a few more years
or eliminating it completely and have other vehicles pick up the equipment. This option would
require us to drop some of the functions of the truck as well.
gip have assigned Dave Klocek to evaluate these issues and report back with a
recommendation. The impact of a change is not clear at this time since the state vehicles
have yet to be put into service. Any changes we make will also impact the police department
and our citizens. I feel more time is needed to evaluate these changes thoroughly. We could
have much better information and a recommendation for action by March of 1997.
Memo
To: Steve Mielke /']
From: Heather M. Alex ( (JI
CC: Earl Johnson
September 16, 1996
Roe Equipment Replacement Plan
HOPKINS POLICE
DEPARTMENT
1. POLICE COMPUTER SYSTEM
The police department operates a local law enforcement records computer that interfaces with the
state and NCIC computer systems. The current hardware platform is a Texas instruments 990 mini-
computer with proprietary records software (ENFORS), several dedicated terminals and several PC
terminal emulations.
This system was purchased new in 1988 for about $90,000. It is scheduled for replacement in 1998 at
an estimated cost of $230,000.
The police department has done initial research into the projected cost and necessity of replacing the
system and we have been able to make a preliminary report as follows:
Three main factors drive the need to replace this equipment:
1. OBSOLESCENCE — The current hardware is no longer manufactured. Some components are no
longer available. We are "driving a 10 year old car which as been in operation 24 hours a day, 7
days a week, 365 days a year. This system stores all our law enforcement records for a five year
span. It would be most responsible to plan proactively for replacement in order to avoid a
catastrophe should the hani drive fail and we suffer a loss of data. Although this could happen to
even a new machine, the newer hardware solutions offer levels of redundancy that would help to
prevent total operating failures.
2. EFFICIENCY — Our current software meets our needs but is not necessarily the most efficient
product available. Other software/hardware solutions may be available that would further
automate our record keeping and provide superior reporting services.
3. ACCESS — As people become more comfortable with technology, more and more users want to
access the systems. We have added terminal to this system consistently. Each terminal puts a
drain on the speed and efficiency of the system. A newer, faster machine would allow better
access by all department personnel
• Page 1
Several factors drive the cost estimate, among which are:
1. SPECIALTY ITEM — Unlike general financial accounting software, police records systems are a
narrow specialty market and there are only a handful offenders in Minnesota with a proven track
record.
2. SPECIFI C ARCHITECTURE — Police records systems require sophisticated systems architecture
to coordinate communications with remote computers at the BCA
Expenditures by other law enforcement agencies (such as Burnsville) for similar systems have been
consistent with the $200,000 figure.
There may be cost savings down the road that are yet undetermined and the police department plans
to conduct a thorough study of the options using professional consultant services.
At this time, I recommend this item remain on the current equipment replacement schedule without
modification.
II. RADIO SYSTEM
Replacement of the locally owned components of the public safety radio system is scheduled for the
year 2001 in the amount of $293,000. Originally, based on life expectancy and inflation, this item
appears again on the schedule for the year 2016 at $397,600. 1 have made the recommendation to
the Finance Director that the $397,600 be removed from the schedule. We will probably need to
make an expenditure around that time, but based on several factors which I will explain below, the
figure should be much, much less.
The current radio system meets our needs and has not fully realized our investment. Implemented in
1989, the very well designed and engineered system has 5 -10 years (low end) of reliable operation to
give us.
Several factors will influence our decision to replace the system and when. The most significant
include:
1. FCC Regulations: By 2006, a new FCC rule nicknamed "spectrum re- farming" will split in half
the acceptable distance between radio frequencies. This will allow more licenses to be issued at
closer intervals to one another. Depending on how many new licenses are issued close to ours,
we could start to experience crippling interference with our current system, since we are listening"
to a wider range. This would create an operational impact that would necessitate the purchase of
new equipment that would be compatible with the new standards.
2. New digital "Network" being built by Hennepin County as part of a phased region -wide 800 MHz
trunked radio communications system. Tum-on time for this new network system is sometime in
1999. Hennepin County is offering agencies the opportunity to share the infrastructure and
backbone of this new system, with the individual agencies being responsible for local equipment
costs.
The Police Department has continued to study these and other factors in determining our long -range
communications plans. At this time there are several options for replacement of the system:
Cost estimates for this option fall roughly within the earmarked amount for the year 2001. Benefits
include joining a state -of- the-art network for a fraction of the cost of building our own digital 800 MHz
• Page 2
system, letting our neighbors "work out the bugs" of a new system, and being able to fully realize our
investment in our current equipment. Downsides include minor changes in the way we communicate
with other agencies that may be on the network, although consultants have given us the assurance
that we would not lose any significant ability to communicate.
Option #2: Join the Network at its initial tum-on date in 1999, modifying our capital equipment plan to
reflect that change. There would be no significant change in the budgeted amount by going with this
option. Benefits would include full inter - operability with other agencies on the network. Downsides
would be tossing out some equity in our current system and being subject to the troubleshooting
proraqs and growing pains that inevitably occur with new systems.
Option #3: Keep our current system until technology forces us to change and/or the system wears
out. Benefits include being able to delay a large capital expenditure for some undetermined years.
Downsides include increasing isolation from other agencies that have joined the network and
increased repair and maintenance cost on equipment that is aging and obsolete.
After having consulted with experts in the field and Hennepin County officials, the police department
recommends option #1 as the best direction for replacement of our system These options all assume
that the city of Hopkins maintains an independent communications center. As with all programs and
services, the Police Department is continuously evaluating all options for radio communications, and
would recommend that before any option is adopted, a comprehensive, professional study be
conducted.
At this time, my recommendation is to leave the current equipment replacement schedule in place,
with the following modifications:
• Leave Police radio system in the schedule at current place and cost.
• Move fire department radio system replacement to 2001 to be consistent with police.
• Remove police radio system replacement in 2016 from the current schedule. It is
likely there will be some expenditures related to radio at that time, but in an amount
much less than appears on the current schedule.
H. Alex
cc: Earl Johnson
• Page 3
PROGRAM FUNDING
CATEGORY PROJECT TITLE SOURCE 1997 1998 1229_ 000 2001,
CAPITAL EQUIPMENT REPLACEMENT PLAN
FIVE YEAR EXPENDITURE SUMMARY
C -1 Haz -Mat Van E.R. 37,900
C -2 Marked Patrol Vehicles (10) E.R. 27,100 56,400 58,800 "91,200 -62,800
C -3 Parking Enforcement Vehicle E.R. 14,000
C -4 Administration Vehicles (5) E.R. 17,500 18,000 18,600 19,100 19,700
C -5 Radio System E.R. 470,800
C -6 Body Armor E.R. 5,800
C -7 Police Computer E.R. 250,000
C -8 Police Copy Machine E.R. 14,200
C -9 Police Logging Recorder E.R. 20,000
C -10 3/4 Ton Pickup E.R. 21,500
C -11 4X4 One Ton Truck E.R. 22,000
C -12 One Ton Dump Truck (2) E.R. 25,500 30,500
C -13 Single Axle Dump E.R. 83,000
C -14 Skid Loader E.R. 32,500
C -15 Grader E.R. 80,000
C -I6 Sweeper H.R. 115,300
C -17 1/2 Ton Pickup E.R. 15,900
is C -18 3/4 Ton Utility Truck E.R. 21,000
C -19 Truckster (3) E.R. 12,700
C -20 Riding Mowers (2) E.R. 11,800
C -21 Gang Mower E.R. 42,300
C -22 Turf Sweeper E.R. 10,900
C -23 City Hall Main Copy Machine (2) E.R. 19,000 35,000
C -24 City Hall Micro Network Upgrade E.R. 10,000 10,000 10,000
C -25 Optical Scanner E.R. 6,000
C -26 Election Equipment E.R. 68,000
C -27 1/2 Ton Pickup W.F. 15,200
C -28 4X4 3/4 Ton Dump Truck W.F. 21,900
C -29 3/4 Ton Utility Truck S.F. 23,000
C -30 Public Works Copy Machine W.F. 9,100
C -31 Jet Vactor S.F. 100,000
C -32 Portable Generator S.F. 8,500
C -33 Refuse Truck R.F. 127,700
B
TOTAL CAPITAL EQUIPMENT REPLACEMENT PROGRAM 148,300 503,800 349,800 411,800 776,500
FUNDING: EQUIPMENT REPLACEMENT FUND (LEVY) 101,600 503,800 222,100 280,800 776,500
ENTERPRISE FUND 46,700 127,700 131,000
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