2020-01-08 CC Packet - Laserfiche WebLink

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Memorandum Date: January 8, 2020 To: Honorable Mayor and City Council Members Through: Mark R. Statz, City Administrator/City Engineer Paul Palzer, Public Works Director From: Bruce DeJong, Finance Director Item: 2020 Vehicle Purchases and Vehicle Replacement Schedule City staff has discussed the Capital Improvement Plan (CIP) with the City Council several times during the past year in conjunction with the annual operating budget. Taking City Council member suggestions, we have made several changes to the preliminary draft. While we have discussed this topic at length, there has never been any official council action to solidify our planning. There has been considerable discussion regarding replacement cycles for Public Works vehicles. Staff is recommending that we replace pickups on a six year schedule. The reasoning for this is because the plow attachments generally start to require extensive maintenance and repair after six seasons of plowing. This way we can replace the pickup and plow at the same time. Obviously we are not going to put a plow on the two-wheel drive pickups for summer The pickup replacements have been changed based on lack of a state contract in 2019. We had planned to replace two vehicles in 2019, two in 2020, and two in 2021. Since the state now has a contract, we recommendd replacing three in 2020 and three in 2021. The dump trucks are still in decent shape. The Public Works Director recommends extending the replacement schedule out to 24 years based on their condition. We have changed those out and reduced the trade-in value based on council recommendations. The pricing of new vehicles has been updated to current values. The replacement of the newly purchased vehicles have been updated to reflect a 2% per year increase in price, which tracks recent trends in the vehicle market. 81