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HomeMy WebLinkAbout5K - Equipment Replacement Program for 2010-2014 CIP MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT DECEMBER 21, 2009 5K JERIL YN ERICKSON, FINANCE DIRECTOR STEVE ALBRECHT, PUBLIC WORKS DIRECTOR CONSIDER APPROVAL OF A RESOLUTION AMENDING THE EQUIPMENT REPLACEMENT PROGRAM IN THE 2010-2014 CAPITAL IMPROVEMENT PROGRAM (CIP) Introduction The purpose of this agenda is for the City Council to approve the amended Equipment Program for the 2010-2014 Capital Improvement Program (CIP). Historv On July 20,2009 the City Council approved the 2010-2014 Capital Improvement Program including the Equipment Replacement Program which identifies the City's vehicle and equipment needs and establishes a replacement schedule. The Program approved in July was actually developed in March/April of 2009. Current Circumstances As part of budget preparation staff looked at ways to extend equipment life and reduce fleet costs. Staff did not include these findings and recommendations in the final CIP adopted in July, but believe they should be adopted to allow for changes as soon as 2010. Staff is recommending the following changes to the matrix: A) Refurbishina Funds: Staff felt that the addition of refurbishing funds would allow for the extension of vehicle replacement lives. For example, in 2010 the City would utilize those funds to refurbish unit 456 (1-ton Utility Truck) which recently had its engine replaced and unit 467 (5-ton Dump truck) that isn't scheduled for replacement until 2015. In this example staff believes the refurbishing of these vehicles will allow the City to extend the life of unit 456 by about 5- years and will allow the City to reach a 15-year life on unit 467. The total replacement cost of these vehicles is $325,000 and therefore maximizing their life with a $10,000 expenditure in 2010 will benefit the tax-payers. B) Salt Sander Truck Retrofits: In December of 2008 the City Council approved the upgrade of one of the existing City trucks with an enhanced capability salt sander. This upgrade has proven to be beneficial in minimizing salt use which is beneficial both www.cityofpriorlake.com Phonei:952.A47.9800j Fax 952.447.4245 environmentally and fiscally to the City. Salt prices continue to increase and in order to maintain a zero budget approach staff needs to explore new ways to maximize value. The majority of the City's truck fleet is equipped with salting sanders which when set at their lowest setting spread 2.5 times more salt than is needed. By retrofitting the existing vehicles with new sanders to minimize salt use the typical City truck can save about $2,700 per year. Staff is recommending that the upgrade of existing sanders be accelerated. The retrofitting could save the City as much as $10,800 per year in salt costs along with a substantial reduction in the impacts of salt on the environment. Over the 15 year life of each sander the savings could be as much as $40,500 per vehicle. This savings is necessary to mitigate budget pressures related to bulk salt costs which have increased from $35/ton in 2007 to $57/ton this winter. C) General Matrix Modifications: Staff also identified vehicles and equipment that could either be eliminated or have its replacement date extended based on conditions. The table below reflects the impacts of those changes over the CIP period. Year Approved CIP Expenditure $ 566,856 348,238 321,708 335,830 520,298 $2,092,930 2010 2011 2012 2013 2014 Total Proposed CIP Expenditure $ 266,227 690,004 310,522 175,349 492,829 $1,934,931 . Change ($ 300,629) 341,766 ( 11,186) ( 160,481) ( 27,469) ( 157,999) Over the five year CIP the proposed extensions and equipment reductions amount to a savings or deferment of $157,999. The long-term program has also been updated to include replacement of vehicles purchased in 2009 and the fire vehicles identified to be replaced by referendum in 2018 and 2021. The net effect of this addition is an increase of $1,490,898 from 2010 to 2021. When the proposed referendum funding of $1,550,000 is included the actual change in program expenditures is a reduction of $59,102 over the program period. In order for the Staff to bring proposed purchases forward in January with cost savings measures to be considered for City Council approval the CIP should be updated now. Refurbishing the identified trucks this winter and installing salting equipment prior to the end of winter will allow the City to maximize the potential savings identified above. ISSUES: Approval of the revised Equipment Replacement Program allows Staff to bring items to the City Council for consideration in a more efficient manner. FISCAL IMPACT: The Equipment Replacement Program is a planning document only and does not obligate the City to expend any funds. Separate City Council approval is required prior to the purchase of equipment as identified in the program. The proposed changes do result in a savings over the CIP period of 2010-2014. The net financial impact to the 2010-2021 program is a reduction of $59,102 when referendum funding for replacement fire trucks is included in the funding sources. ALTERNATIVES: The following alternatives are available to the City Council: 1. Approve the Amended 2010-2014 CIP Equipment Replacement Program as submitted. 2. Provide direction to the staff to modify the proposed program. RECOMMENDED MOTION: Alternative #1. ReVie1j Frank BOYUY . ...../O/O~ PR.IO~ /~ (" " f... 'l' i(J :;.:: \ l'1'J .... , ~liVNESO~l'> 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 09-xx A RESOLUTION AMENDING THE EQUIPMENT REPLACEMENT PROGRAM FOR THE 2010-2014 CAPITAL IMPROVEMENT PROGRAM Motion By: Second By: WHEREAS The purpose of the Capital Improvement Program(CIP) is to protect the infrastructure of the City of Prior Lake by establishing a replacement plan for existing infrastructure and by identifying those improvements necessary to accommodate the growth of the community; and WHEREAS, On July 20, 2009 the City Council approved the Equipment Replacement Program as part of the 2010-2014 CIP; and WHEREAS, Staff is recommending changes to the Equipment Replacement Program that will allow for refurbishing and updating of equipment in 2010 to extend the life of vehicles and reduce operating costs; and WHEREAS, The revised Equipment Program eliminates and defers future equipment for a savings of $157,999 from 2010-2014 and $59,102 over the 2014-2021 program when fire truck referendum funding is included; and WHEREAS, Prior to any equipment purchases identified in the CIP Equipment Replacement Program City Council approval is required. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The 2010-2014 Capital Improvement Program Equipment Replacement Program is hereby amended. PASSED AND ADOPTED THIS 21st DAY OF DECEMBER 2009. YES NO Haugen I Erickson I Hedberg I I LeMair I I Millar I Haugen Erickson I Hedberg LeMair Millar Frank Boyles, City Manager R:\Council\2009 Agenda Reports\12 21 09\CIP ResolutiO~:SIt9ofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 CITY OF PRIOR LAKE 2010 - 2021 EQUIPMENT REPLACEMENT PROGRAM REVISED 12.21.2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Totals Use of Funds: Fire Dept Total 65,000 90,000 49,047 31,302 0 0 39,272 80,443 1,000,000 40,082 0 550,000 1,945,146 Public Works Dept Total 201,227 600.004 ?61,476 144,047 492,829 566,721 516,103 750,980 678,930 165,132 652,051 197.998 5.227,498 Total Use of Funds 266,227 690,004 310,522 175,349 492,829 566,721 555,375 831 ,423 1,678,930 205,214 652,051 747,998 7,172,645 Source of Funds: Interest Earnings (2%) 18,738 20,788 14,804 16,490 21,312 20,082 17,749 15,797 8,684 4,679 10,469 7.637 177.229 Annual Equipment Levy 260,000 270,000 280,000 290,000 300,000 310,000 320,000 330,000 340,000 350,000 360,000 370,000 3,780,000 Enterprise Fund Contribution 90,000 100,000 100,000 110,000 110,000 120,000 120,000 130,000 130,000 140,000 140,000 140,000 1,430,000 Bond Proceeds - Referendum 0 0 0 0 0 0 0 0 1,000.000 0 0 550,000 1.550,000 Total Source of Funds 368,738 390,788 394,804 416,490 431,312 450,082 457,749 475,797 1,478,684 494,679 510,469 1,067,637 6,937,229 Change in Fund Balance 102,511 (299,215) 84,282 241,140 (61,517) (116,639) (97,626) (355,627) (200,246) 289,465 (141,582) 319,639 (235,416) Beginning Fund Balance 936,900 1,039,411 740,195 824,477 1,065,617 1,004,101 887,461 789,835 434,209 233,962 523,428 381,845 Ending Fund Balance 1,039,411 740,195 824,477 1,065,617 1,004,101 887,461 789,835 434,209 233,962 523,428 381,845 701,484 Page 1 of7 12/1512009 Department Equipment Matrix Revised 12.21.2009 $800,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 I . Fire Dept Total . Public Works Dept Total ] 2019 2020 2021 $1,800,000 $1,600,000 - $1,400,000 - $1,200,000 - $1,000,000 - $600,000 - $400,000 - $200,000 - $0 - Page 2 of 7 12/1512009 FIRE DEPARTMENT REVISED 12.21.2009 2010 . 2021 EQUIPMENT INVENTORY Life Current Equipment Description Equip # YEAR SERIAL # COST Expt. Value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Zodiak Rescue Boat 9290 1991 XDC2453F $ 16,000 15 $ 36,700 $ $ 90,000 $ $ $ $ $ $ $ $ $ $ "'Peterbilt Pumper 9220 1993 1 XPBHA8X1 PD332698 244,000 25 320,000 550,000 "'Peterbilt Rescue 9215 1993 1 XPBH78XXPD332699 218,000 25 300,000 450,000 "'Peterbilt Pumper 9221 1996 1XPGHA8X7TN412503 204,085 25 320,000 550,000 Scotty Trailer-Smoke House N/A 1997 1SSTT1PT2V11SS246 24,780 20 30,900 41,527 Ford F-350 Crew Cab 9270 2000 1FTSVV31S3YEE27499 41,076 12 42,308 49,047 Polaris 500 6x6/ATV 9275 2000 4XALL50A2YD418369 8,000 15 25,000 25,000 Peterbilt Tanker 9260 2001 2NPNHZ8XX1 M498712 145,000 25 156,817 Ford F-350 9271 2001 1 FTSX31 S71 ED79752 25,452 12 26,215 31,302 Ford Expedition 9200 2003 1 FMPU16L83LB71121 25,390 12 26,151 40,000 Ford F-150 Super Cab 9201 2004 1 FTPVV14544KD62092 29,223 12 30,099 39,272 Ford F-350 Super Cab 9202 2005 1 FTPVV14595KE56227 28,957 12 28,957 38,916 Peterbuilt Pumper 9222 2007 2NPLHZ8X37M682390 319,890 25 319,890 Ford F-350 Super Cab 9272 2007 1FTVVX31Y28EB35023 23,074 12 28,113 40,082 E-One 100' Aerial 9280 2007 925.500 25 925,500 Peterbilt Heavy Rescue 9216 2009 2NPRHN8XXAM794324 424,366 25 424,366 NEW EQUIPMENT: Rescue Truck (Station #2) Totals $65,000 $ 90,000 $ 49,047 $ 31,302 $ L $ 39,272 $ 80,443 $ 1,000,000 $ 40,082 $ $ 550,000 - Referendum Total 2010 . 2021 $ 1.945,146 9220 = $550,000 (2018) 9215 = $450,000 (2018) 9221 = $550,000 (2021) Page 30f7 PUBLIC WORKS DEPARTMENT REVISED 12.21.2009 2010 - 2021 EQUIPMENT INVENTORY 2009 Life Current Equipment Description Equip # YEAR SERIAL # Mileage/Hrs Expt. Value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 DUMP TRUCKS Miles Sterling Dump (P,W,S) L8511 466 2000 2FZHDJBB5YAB04744 62,432 15 200,000 245,975 Sterling Dump (P,W,S) L8511 467 2000 2FZHDJBB7YAB04745 59,767 15 200,000 253,354 Sterling Dump (P,W,S) L8511 468 2001 2F~VVAKX1AF83306 52,594 15 200,000 268,783 Sterling Dump (P,W,S) L8511 469 2001 2F~WAK11AF83307 50,301 15 200,000 260,955 Sterling Dump (P,W,S) L8511 518 2002 2F~WAK92AK06805 55,304 15 200,000 268,783 International Dump (P,VV,S)(tandem) 465 2003 IHTVV~T14J083646 50,391 15 207,400 304,574 Sterling Dump (PW.S)(tandem) 519 2008 2FZHAZDE49AAE8498 2,500 15 207,400 PICK UPSNAN Chev. C1500 (1/2T) 540 1996 1 GCEC14M7TE246454 73,760 10 25,000 28,982 36,713 F350 Ford 4x4 (1T) w/Plow 457 1999 1 FTSF31F6XED33327 81,241 10 34,500 41 , 195 F350 Ford 4x4 (1T) Utility 756 1999 1 FDWF37F9XED33326 98,883 10 79,000 86,325 116,014 F350 Ford 4x4 (1T)w/plow 543 1999 1 FTSF31 FXXEC10484 85,312 10 34,500 42,431 F350 Ford 4x4 (1T)w/plow 544 1999 1 FTSF31 F3XEC26476 108,500 10 34,500 39,995 F350 Ford 4x4 (1T)w/dump 545 1999 1 FDWF37F4XEE98166 65,716 10 59,000 72,563 F350 Ford 4x4 (1T)w/dump/plow 546 1999 1 FOWF37F9XEE98163 69,051 10 59,000 70,449 F350 Ford 4x4 (1T) Utility 750 2000 1 FOWF37S5YEE27427 88,216 10 76,700 86,327 116,016 3500 Dodge 4x4 w/dump/plow 547 2001 BB6MF36W81M575169 57,356 10 59,000 68,397 F350 Ford 4x4 w/plow 451 2001 1FTSF31S51ED79753 74,896 10 37,700 42,432 57,025 F-550 Bucket truck 54S 2002 1 FDAF56F22ED28193" 23,062 20 91,200 F-350 Ford (1T) w/plow 548 2003 tFTSF31 F&3EA38823 64,265 10 34,500 49,189 Chev 4x4 1/2 T 758 2004 1GCEK19T94Z315464 49,562 10 25,000 31,669 F-550 w/plow 452 2005 1FDAF57975ED-26435 28,765 12 59,000 79,291 Ford Ranger 508 2005 1 FTZR45E55-PA97395 36,304 10 18,500 23,435 Chev 4x4 1/2 T 541 2006 1GCEK19Z16Z265893 22,236 10 25,000 34,606 F550 Ford 4x4 w/plow 459 200S 1FOAF57R18eEt8372 4,200 12 55,200 81,063 F3504x4 (club cab)w/plow 453 2009 1 FTVVVV31R69EA63787 6,734 12 42,400 F350 4x4 (4 door) 494 2009 1FTVVX31R39EA63789 6,586 12 33,200 F350 4x4 utility w/plow 762 2009 1FTVVF31R89EA63788 4,390 10 59,800 85,261 UTILITY EQUIPMENT Serco Extend-A-Jet 770 1990 EMSP-6-91101 377 20 35,000 38,245 Ford L8000 Tanker 521 1991 1 FDYK82A3MVA35699 44,002 15 144,400 188,409 Jet-Vac 784 2002 2FZHATAK62AK46319 43,362 20 260,000 Portable 10" pump ONR 27977-078 30 21,300 Valve Exerciser 763 2007 21984 20 56,775 JLG Electric Lift 551 2007 200152825 20 15,000 EMERGENCY POWER Cat 080-6 Towable 742 2007 D4B00613 40 15 39,000 Cat 80KW Towable 747 2006 D4P00357 138 15 39,000 Cat 200KW Towable (Booster Station) 777 1996 085Z13104 125 20 94,000 Cat 80KW Towable 776 1996 2021765 3,683 15 39,000 43,895 Cat 75KW Estate 778 2002 NPF01467 183 30 94,000 Cat 40KW Lime 749 2004 E4724B1/001 36 30 27,000 Cat 40KW Franklin Trl 748 2004 F5283A 1/001 65 30 27,000 Cat 300KW (Wells 8 & 9) 746 2006 KPS01979 0 30 72,400 Cat 100KW Main!. Ctr 745 2006 N4E00311 16 30 36,000 Water Treatment Facility 744 2009 SXC02940 0 30 325,000 Onan 100EN FS #1 9292 1996 G940549015 304 30 35,000 FS #2 Cat Gen 9212 2008 N6000424 5 30 35,000 PO Gen 9911 21J07 46385148 605 60 35;000 City Hall Gen 9913 2008 N3C00696 50 30 28,000 Page 50f7 PUBLIC WORKS DEPARTMENT REVISED 12.21.2009 2010 - 2021 EQUIPMENT INVENTORY 2009 Life Current Equipment Description Equip # YEAR SERIAL # Mileage/Hrs Expt. Value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TRAILERS Homemade Trailer 530 1986 DPSMN960962 12 7,219 9,993 Homemade Trailer 480 1988 12 7,300 Towmaster Trailer 479 1999 4KNUT2020XL 161258 12 6,581 7,407 JAA 22' Trailer 533 2000 00082264ROB 12 7,300 8,463 Towmaster Tandem Trailer 482 2004 4KNFZ19244L 163143 12 7,900 10,308 Featherlite Trailer 761 2006 4U01ST9256A028847 12 5,980 8,278 Haulin Trailer 554 2006 5NHVHA0156W045768 12 4,000 5,537 Towmaster Trailer 531 2008 4KNUC18218L 162564 12 7,000 10,280 Towmaster Trailer 532 2007 4KN UC18288L 162562 12 7,000 10,280 LOADERStSKID STEERS JCB Tractor Backhoe 785 1995 SLPZ14TCSE0436049 3,804 13 115,000 129,434 Melroe Bobcat S 185 w/broom 781 2004 525015713 2,089 6 55,000 63,760 76,133 Melroe Bobcat S250 w/blower 501 2006 530912105 1,850 6 55,000 60,100 73,915 Case Loader 721 E 488 2007 N7F200557 438 14 127,403 Cat Loader 938G 789 2001 00938GJGW502904 3,525 14 156,000 186,272 Cat 257B 502 2008 CA T0257BVSCK07556 452 6 35,315 43,433 51,861 STREETStSIDEWALKS Tymco Sweeper 471 2007 1 HTMPAFN07H433838 8,398 15 158,500 Elgin Sweeper 472 2003 S9112D 2,794 14 147,000 197,556 Holder Sidewalk Plow 506 1998 52400263 2,136 10 77,800 107,693 40" Bituminous Mill 664 2000 23-1611255 12 25,000 28,982 Erskine Front Blower 665 2002 207600168 10 9,400 10,897 13,012 Directional Safety Sign 664 2003 1A9A5465522228069 20 28,800 Pavement router 454 2003 3112109081 192 20 25,800 Crack Seal Equip 473 2003 03-110-119 243 20 7,000 Stone AP41 00 Roller 474 2009 72009191 15 23,400 Message Board for Utility Truck 20 10,000 ANTI-ICING EQUIPMENT Brine Production 2004 SB600 6 9,800 10,709 Critical Spot Sprayer 492 2004 15 6,320 9,011 Single Axle Slide-In 493 2007 15 12,000 Storage Tanks 2007 10 22,000 29,566 Slide-in Sander 455 2003 13839 10 6,200 7,403 Slide-in Sander 490 2006 123148 10 4,750 6,198 Liquid Anti-Ice Unit 495 2009 10 17,200 24,523 TURF CARE J R Turf Truckster Striper 535 1998 98002740 1,151 20 18,000 24,916 Cushman Field Groom w/atch 537 2003 LM21013 1,280 10 18,900 23,245 Cushman Truckster 538 2005 2300977 1,203 10 18,000 22,802 Kubota 539 2007 KRTV11 0071 011 057 385 10 20,000 26,878 Toro 580D 504 2001 210000239 4,210 10 77,200 86,889 72" 328D Toro Diesel w/blower 523 2003 230000114 1,880 8 32,500 36,579 46,337 Case CX100 Tractor 507 2000 C100AS4JJE1014819 2,810 11 48,000 54,024 Seed-A-Vator 665 2000 4 8 10,600 13,831 Airvator Aerator AE80 665 1998 445 10 9,700 10,917 Goosen Rake-N-Vac 665 1992 RVT#I-12000 15 17,500 21,523 Sovema Tiller 665 1993 15 7,200 7,868 Millcreek Top Dresser 665 1995 21934 10 7,100 8,732 Ditch Mower 665 2006 RBF-1295 15 16,500 24,958 Toro 5700D Sprayer 536 2004 24000016 990 10 25,500 35,298 Jacobson HR 9016 5632008 705291855 4Z9 10 6&;400 94,682 Jacobson Turf Cat 524 2008 628-DT 370 8 27,900 36,403 Toro 325D 525 2009 290000139 0 8 27,900 37,495 Toro 325D 526 2009 280000303 0 8 27,900 37,495 John Deere 5525 Tractor 505 2009 L V5525H456371 0 11 28,100 41,266 Page 6 of 7 PUBLIC WORKS DEPARTMENT REVISED 12.21.2009 2010 - 2021 EQUIPMENT INVENTORY 2009 Life Current Equipment Description Equip # YEAR SERIAL # Mileage/Hrs Expt. Value 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TREE CARE Vermeer 1250A Chipper 510 1999 1 VRN 1416XW1 007408 1,525 15 28,400 34,928 Rayco Stump Grinder 550 2007 1 R91209127M210026 19 15 17,000 Tree Spade 509 2008 NOVAK 20 39,700 Aerovator Seeder 512 2008 29 BUILDING DEPARTMENT Ford Crown Victoria2 205 2005 2FAHP71W95X166042 66,462 15 12,000 Ford Focus 398 2009 1 FAHP34N09W259206 3,116 10 15,000 ENGINEERING DEPARTMENT Suburban 1 399 1999 1 GNFK16R6XJ351846 43,479 15 38,000 25,000 Ford Crown Victoria2 405 2005 2FAHP71W75X166041 92,875 10 12,000 REFURBISHING 10,000 10,000 FUTURE ADDITIONS Used 1/2 Ton Pick Up (Parks) 10 20,000 5 Ton Application Upgrades 48,080 Totals $ 201,227 $ 600,004 $ 261,476 $ !,44,047 $ 492,829 $ 566,721 $ 516,103 .$ 750,980 $ 678,930 $ 165,132 $ 652,051 $ 197,998 1 Will be replaced with a 1/2 ton pickup 2 Will be replaced with used economy car Total 2010 - 2021 $ 5,227,498 Page 70f7