2018-09-26 CC Set Agenda - Laserfiche WebLink

Home Browse Search

Ian fnfSoah f AYI'',+" ^r r.t^a Memorandum Date: September 26, 2018 To: Honorable Mayor and City Council Members Through: Mark R. Statz, City Administrator/City Engineer From: Bruce DeJong, Finance Director Item: 2019-2028 Capital Improvement Plan Discussion The Capital Improvement Plan for Centerville has not been significantly updated since 2014. In preparation for this discussion, staff reviewed the existing capital plan, the fixed asset listing from the audit files, and the insurance listing for buildings and equipment. These documents did not fully agree, so we are working on a plan to make sure we have all items that will need to be replaced at each location that the city owns, have them more accurately identified individually on the insurance listing, and represent the full amount of the city's assets in our financial statements. This has been supplemented with a physical review of each site. Staff discussed the replacement of certain vehicles with the City Council at the previous meeting. We have included a preliminary estimate of those costs for 2019 and succeeding years, since it does not seem likely that we would order and receive these trucks prior to year-end. We have included the two year replacement cycle for pickups for presentation purposes only. Staff will bring a more robust analysis of lifecycle cost for vehicles back to the City Council later this year. For now, the format of the presentation is that we have estimated the sale value of the existing older pickups at $2,000 for each of the Ford Ranger pickups and $8,000 for the 2005 Chevrolet and 2008 Ford pickups. This results in a $10,000 Salvage Value/Trade-In for 2019 and 2020. After that, we also replace the 2015 Chevrolet and put it into a two year rotation. We have estimated that value at half the original cost for a salvage value of$15,000. The Public Works Director's program of two year replacement allows us to sell a low mileage vehicle with one year of remaining factory warranty estimated as selling for $1,000 less than their original cost off the state bid. We have also provided salvage value estimates for several other pieces of equipment. Please be aware that these estimates have not all been assessed against the current condition of each vehicle, so they may vary widely. This is just a first shot, rough draft, 123