HomeMy WebLinkAbout9.b. Proposed Lease/Purchase CIP Items � � �
City of Rosemount
Executive Summary For Action
CITY COIJNCII. MEETING DATE: 7ANUARY 17, 1995
AGENDA ITFM: PROPOSED LEASE/PURCHASE CIP AGENDA SECTION:
ITIIVIS NEW BUSINFSS
PREPARED BY: THOMAS D. BURT, AGENDA ��R . � � �
CITY ADMINISTRATOR �V�
ATTACHMENTS: Nov. 17 Memo - Lease, FBS Letter, Nov. 17 APPROVED BY:
Memo - PC Purchase, Police Memo, Public Works Equipment
Requisitions Memo
During budget discussions a number of capital equipment items were identified that need replacement or to
be purchased in 1995. Attached is a memorandum which identif'ies fifteen items that are recommended to
be purchased in 1995. Staff has uutiated discussions with financial lenders and attached is one proposal of
the terms and their recommendation on the length of fmancing.
The proposed financing would be three separate periods of rime:
Semi-Annual
Term Interest Rate Debt Service Pmt.
3 Year Financing 6.87% $23,970.27
5 Year Financing 6.93% $12.843.14
10 Year Financing 6.98% $65,376.61
Total $102,190.02
Department heads will be in attendance to address City Council questions concerning the listed equipment.
If the City Council continues to support the concept of a lease purchase staff will move forward on
completing the financial terms of a lease purchase and bring it to the Ciry Council for approval on
February 7, 1995.
RECONIlVIENDED ACTION:
MOTION to direct staff to continue working on a lease purchase and bring it to City Council on
February 7, 1995.
COUNCIL ACTION:
MEMORANDUM
DATE: November 17, 1994
T0: Thomas D. Burt, City Administrator
Scott Aker, Fire Chief
Lyle Knutsen, Police Chief �
Bud Osmundson, Public Works Director I
Jim Topitzhofer, Park & Rec Director '
Sue Walsh, Administrative Assistant
Ron Wasmund, Community Development Director
FROM: Jeff May, Finance Director '
SUBJECT: Proposed Lease/Purchase CIP Items
After yesterday's discussions, I have put together a list of potential items that we
will be taking to the Council for their consideration in doing a lease/purchase in
1995. Please review this list carefully and let either Tom or me know if there is
something listed incorrectly or if there is something omitted that should have been
included.
1) PC Replacements and Network Upgrades (95-201) S 32,000
2) 3 Police Vehicle Replacements (95-401) 47,000
3) Computer Upgrade and MDT's for Squad Cars (95-402) 35,000
4) 2 Mobile Squad Radios {96-402) 2,000
5) 13 Portable Radios for Officers (96-403) 9,000
6) 2 Traffic Radar Units (96-404) 3,000
7) Aerial Fire Truck (95-501) 600,000
8) Opticom(Pre-Emption/Traffic) (95-503) 60,000
9) Vehicle Hoist (95-703) 8,000
10) 3/4 Ton 4x4 Pickup (95-727) 20,000
11) 1 Ton 4x4 Pickup (95-728) 30,000
12� Single Axle Dump Truck with Plow & Sander (95-729) 100,000
13) Loader Replacement (95-730) 170,000
14) 18' Mower(Replaces 15' Mower) (95-738} 38,000
15) Plow for Existing Tandem Dump Truck (No Number) 11,000
Total $1,165,000
,JAN-10-1995 16�08 FROM FBS INVESTMENT SVCS TO 94235203 P.02i64 ..
. FBS Inves#�ner�
' ' �ervi�es, lrtc.
M�mD�r NA5D 3 31PC
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�o�o s�w�a,sm sa� � January l U, 1995
1�6nne�pori�MN 5&W2 '
. Mr. Jefr May
r inance Direc2or
City of Kosemount
2875 145th Street
Rosemount, yiinnesota SSUG$
RE: Financin� Seenarios under Tax-Exempt�.eases Purchase A�reements for Capitai
Expenditures in 199a
Dear Nir. 11r1ay:
On behalf of F$S Investment Services, inc., I wouid like to thar�k you for a�ain
giving u.s the opportunity to provide fmancin� alternatives as they relate ta capital
expenditures under a tax-excmpt lease purchase financing proaram_ We believe that we
will be able to s�rvice your needs in the most timely and cost effective manner available
to you in today's tax-exempt marketplace.
Following is the breakdown of recommended financin� terms for the capital
expenditures that you provided to us late last week. Tl�is is our suggested course of'
tinancin�, but may be altered to meet ihe On�Oin� budget demands o� the City of
�.osemount.
RECQ14ntiIEN'DED CAPITAL EXP�NDITURES FOR
THREE(3)YEAR FINA�YCING TERIVI
Equi ment No.# 4mourit
PC Replacements and Network Up�,rades 95-201 $ ;2,000
3 Pofice Vehicle Replacements 95-401 47,OOQ
Computer Upgrade and MDT's for Squad Cars 95-402 � 35,000
2 il�iobile Sc�uad Radios 96-4Q2 2,000
13 Portable Radios far Officer �6-403 9,000
2 Traffic Radar Un.its 96-4Q4 __3,000
Total (3 Year) - �128,Q00
investment products are not FDIC Ipsured,dre not depo5its ot,obHgaUons of or guaranised by FBS
(nvestment Services,tnc.,the bdnk,0�any of their afflilates dnd inwlve investment rfsks,tnClUding possibie
toss of the principat invested. F'�S fnvestment ServlCes,Mc.is a whopy owned subsidiary of FrsE Bank Natlorrdt AssoCidtion.
Minne3pol+s Office: 104 Soulh Ffth Street,Mnneapdis,MinnesoNa
St Paut pffice:332 Minnesota Strcc�t,Saint Paul,Minnesota
'JAN-1�-1995 16�08 FROM FBS INVESTMENT SUCS TO 94235203 P.03iO4
Letter w Mr.Jctf Mar �
• Page 2 �
January lU, lyJS
• RECQitiIlViENDED CAPTTAL EXPENDTI'URES FUR
FIVE(5)YEAR FINANCING TERvi •
Equi�ment � N�. # A�mount
�Tehic3e Hoist 95-703 $ 8,044
3/�T'on 4x4 Pictcup 95-727 ?0,000
1 Ton 4x4 Pickup 95-728 ;0,000
• 18' Mower(Repiace 15' Mower) 9�-738 38,000
Plow for Existin�Tandem Dump Truck n/a 11_000
'i'otal (S Year) �107,UUU
RECON�NUED CAPITAL EXPEl�TDTTURES FOR
TEIV(10)YEAK FINAYCING TER.'��
�quipment 1'0. # Amonnt
Aerial Fire Tcuc� 9�-SO1 5600,000
Opticom (Pre-emptionlTraffic) 95-503 60,000
Sin�Ie Axte Dump Truck �v/Plow& Sander 95-7?9 I00,000
Loader Replacement 95-730 174,000
'l'atal (10 Year) �930,OOa
,�►s you requested, we have also e�ca.mined currcnt market interest rates far the
abo�;e transactions. We would propose that you use the foiiowing information as a
benchmark of what may be avaitable if these transactians were to price today. We would
welcome the opportunity to give yau firm interest rate and financin� quotes as the
transactions approach.
Following are current market interest rates and the resultina semi-annual debt
service payments based on the three, five and ten year financing scen�rios:
C:UR�tENT NIA:R��T I�YTEREST RATES AND DEBT SERVTCE P�lY1�I�TS
Ynte:'�St $�mi-3l]11U�i1
Term R::te Debt Service Pmt. '
3 Year Financina 6_S7% � 2i,970.27 x � : `�l��'��.�
5 YearFinancing 6.93% 12,843.14 x �. : �S', ���''��
10 Year FinancinD 6.98% 65.�76.b 1 �c � = �;�� ���,j�.
Total � - $I42,190.02
1��� 3YJ. 3`�
��-� 3 Y.�S — � ��� �t35_�
,,�,� s �r.-�. S -- i 3 �� � �3 .a z
JAN-10-1995 16�09 FROM FBS INVESTMENT SVCS 70 942352�3 P.04iO4
Letter to Mr.1�:tt M�3
Fagc 3
lanuary 1U, 19�J5
As iilustrated, the yieid curve is rclativcly flat This results in very small inter�t
rate spreads betwesn the three, fvc and ten year scenarios. Fortunately, it appears as
though the bulk of youc fuia.ncing may be done under the ten year f nancing, which will
resuit ia considerable interest cost savinas.
Wc hope this infonnation is helpful as you go forward with your budgetin�
pro�;ess. Again, we would bc happy to provide you with a fum quotes as your financing
. needs approach. .
Please feel free to cali me with any questions andlor comments yau may have
regardin�this information. .
Respectfully submitted,
�� � l
���'•�• 9y[�
/
Christine K. Hau�en
Public Finance Officer
. TOTAL P.�4
MEMORANDUM
DATE: November 17, 1994
TO: Thomas D. Burt, City Administrator
FROM: Jeff May, Finance Director
SUBJECT: PC Purchases Proposed Under Lease/Purchase for 1995
The following items are included in the $32,000 figure for PC Replacements and
Network Upgrades to be considered for the 1995 Lease/Purchase of CIP Items:
1) $21,000 - 11 new 486DX2-66 PCs
These PC's would replace all of the existing XT and 286 PCs that we
currently have that people are trying to use. We talked about upgrading
PCs and saving costs, but these machines are not upgradable(at least
not economically). In the future, as technology changes, hopefully the
machines that we will have after these replacements will allow us to
change motherboards versus replacing whole machines.
2) $ 2,000 - Lotus CC:Mail (E-Mail) for City Hall
This is the package that the Community Center is currently using and the
one that I would recommend so thaf we have a consistency in as many
of our software packages as possible. Jim and Lisa have both spoken
very highly on the positive effects that E-Mail has had in the operations
of their department.
3) $ 9,000 - New File Server, Old File Server Configured to a Work Station and
Another Ethemet Concentrator
Our file server has been upgraded once and other smaU changes have
been made to try and improve its performance. We have reached a
point where the money would be better spent getting a new file server
that is equipped and configured properly to give us the perFormance that
we need. The cost to take the old file server and make it into a work
station is very minimal and gives us another good work station to boot.
Also, all of the new PC's would be equipped with Ethernet cards versus
� the current Arcnei-cards. This is another migration we are making to
increase the performance of the network. In getting the Ethernet cards,
we will have to purchase another Ethernet hub that all of the E#hemet
network cables will tie into. After this is done, we will have abcut half of
our PC's on Ethernet and the other half on Arcnet.
R03EMOIINT POLICE DEPARTMENT
M E M O R A N D II M
TO: Thomas Burt, City Administrator
EROM: Elliel Knutsen, Chief of Police ��
RE: Lease/Purchase Recommendation (C.I.P. )
DATE: November 17, 1994
The following items are being requested to be included in the
1995 Lease Purchase CIP Proposal.
,
PIN: ITEM: COST:
PIN95-402 Computer Programs $35,000. 00
5 Mobile Data Terminals - Needed to update communications in
patrol vehicles by allowing officers to have direct access to
State records without tying up airtime and more importantly,
allows officers to receive printed confidential information
from the State, Eagan dispatch and other officers without
returning to the station.
1 TI990 Computer Base Drive - needed to replace our main Enfors
base station which has been in use for over 12 years and is in
need of constant repair. This replacement unit would be a used
2 year old refurbished model.
PIN95-401 Replacement squads $47,�000.00
3 Squad Cars - On going need to replace some of the squads.
Two squads will have over 100,000 miles during the first half
of 1995 and plans to replace three other squads in 1996 will
have to be considered.
PIN96-402 Mobile Squad Radios $1,384.50
2 Mobile Squad Radios - Needed to replace the radios in the
Lieutenant's and the CS0's squads. Both radios are old and
operating poorly.
PIN96-403 Portable Radio Replacements $8,819.26
13 Portable Radios - Needed to replace all of the officers hand
held radios that are over 8 years old and outdated. The radios
in use today do not scan other frequencies whereas when the
radio is in use, the officer cannot be contacted on a different
channel.
Page 2
PIN96-405 Traffic Radar Units $2,864.84
2 Traffic Radar IInits - There is a need to replace the traffic
radar unit in the sergeants squad. The calibration of this 14
year old unit is questionable and cannot be used. The radar
unit in squad #20 is due for replacement because it is over 12
years old and is losing the range capability. (NOTE) The
Minnesota State Patrol recommends replacement of radar units
every 5 years.
Total cost of the above five programs - $95, 068. 60
MEMO
TO: TOM BURT, CITY ADMINISTRATOR
FROM: BUD OSMUNDSON, CITY ENGtNEER/PUBLIC WORKS DIRECTOR
DATE: NOVEMBER 15, 1994
RE: EQUIPMENT REQUISITIONS
1995 - 1998
The foilowing is a list of equipment that the Public Works Department is requesting
for 1995, followed by a future years request.
The first 9 items are all high priority items which have the same priority ranking and
cannot be dismissed lightly. All of the items are required to maintain the City's
present service levels. Five items, the loader, the single-axle truck & plow, the plow
for the existing tandem truck, the one ton pickup and the 3/4 ton pickup are all
snowplow related items which are required immediately to keep up our present service
level which at this time is marginal compared to other cities.
ESTIMATED
C.I.P. # DESCRIPTION REPLACEMENT
GOST
1. 95-730 Replace 1974 John Deere Loader with new $170,000
loader and plow. The John Deere is totally
undependable and right now needs a
520,000-525,000 overhaul
2. 95-729 Add a new single-axle dump truck with plow S 100,000
& sander. Required due to additional street
mileage.
3. Buy a plow for existing tandem which is $11,000
already equipped with sander and rigging for
plow. Never bought plow. WiQ use on east
side (added CR 38) to reduce amount of
down time for re-loading salt & sand.
4. 95-728 Replace 1986 Chevrolet 3/4 ton 4x4 with $30,000
plow with new 1 ton 4 wheel drive with
dump box & plow. Existing 1986 is due for
major repairs, not dependable
Equipment Requisitions
1995-1998
ESTIMATED
C.I.P. # DESCRIPTION REPLACEMENT
COST
5. 95-727 Replace 1975 Dodge 3/4 ton 4x4 with new 520,000
3l4 ton 4 wheel drive pickup with plow.
` Existing 1975 is due for major repairs and is
old Fire Department grass rig.
, 6. 95-703 Additional vehicle hoist so that 2 pieces of $8,000
� equipment can be worked on simultaneously.
This is a mobile piece of equipment similar to
our present hoist
7. 95-707 Replace existing 125 psi air compressor S 17,OQ0
(A.C.) with new 185 psi A.C. Cannot get
parts for existing-manufacturer is out of
business and it is worn out. Used for street
repair, watermain breaks.
8. 95-738 Replace 1988 15' Howard mower with new 538,000
. 18' mower. Existing requires major work on
decks and engine. Additional parks to mow
(Wensmann, Erickson).
9. 95-701 Replace 6' John Deere and Ford mowers with
lease for 2 new mowers as per attached
quote from Polfus Equipment. No cost in
1995 due to trade in of John Deere & Ford.
Will budget lease costs in 1996 and 1997
budgets.
2
Equipment Requisitions
� 1995-1998
The following two items are in the Pubiic Works requests for 1995 but could possibly
be delayed until 1996.
ESTIMATED
C.I.P. # DESCRIPTION REPLACEMENT
COST
1. 95-705 Bobcat trailer.. This would be an additional 56,000
trailer to haul bobcat to project locations with
pickups. Presently have to use "LowBoy"
which requires single-axle dump truck to haul
and Class A license. Will increase efficient
use of time.
2. 95-735 Replace existing herbicide sprayer. Pull 53,000
behind tractor type for park use. Cannot get
parts for existing.
In addition, the tank on the "old" jetter truck needs replacing ASAP. This is estimated
to cost S 10,000. Since this truck is primarily used for instatling ice on the outside
rinks, I am requesting that this be paid for out of Park Dedication Funds, and not
"compete" with other equipment. Burnsville just purchased a truck specifically for rink
watering for 584,000.
. As a reminder, the approved Utility C.I.P. Budget includes the purchase of a
combination Jetter/Vac Truck in 1995 which is to be paid for from Sanitary Sewer and
Storm Sewer Core Funds, thereby not affecting the C.I.P. items from the General Levy
Budget.
3
Equipment Requisitions
1995-1998 '
1996 and Beyond
The following is a list of equipment items requested for 1996 thru 1998:
ESTIMATED
C.I.P. # DESCRIPTtON REPLACEMENT
COST
1. 96- Replacement of {#208) 1985 Ford Single- S 100,000
Axle Dump Truck and plow with new Single-
axle dump truck and plow. The 10 year old
truck is due for costly major repairs within
the next year.
2. 96-702 Replacement of existing 1988 Asphalt Roller $22,000
with a new 2'/z ton roller. Existing roller is
too small and does a poor job of compacting
when using paver.
3. 96-703 Replacement of 1987 "Bobcat" with new 525,000
skid-steer loader. Existing will be at a point
of costly repairs.
4. 97-702 Replacement of "Tac" trailer. Used for 525,000
hauling "Tac" for bituminous pavement
repair. Replaces existing traiier which is
worn out. Would like to move to 1996.
5. 97-713 Replacement of 1989 Ford 1 ton pickup & $22,000
plow with 1 ton pickup and plow. Would like
to move to 1996 due to needed body work
on 1989 modeL
6. 99-7�8 Replacement of 1990 "Howard" 18' mower 540,000
with 18' mower. This item has to be moved
up to 1997 at least. Existing is already
requiring costly repairs. Wi(I have additional
parks to mow by 1997.
4
Equipment Requisitions
1995-1998
ESTIMATED
C.I.P. # DESCRIPTION REPLACEMENT
GOST
7. 98-713 Replacement of 1971 Fuei tanks and pumps 560,000
with new tanks and pumps. Required by
State Law by end of year 1998. Have
525,788 in encumbered funds. Public Works
Department recommends replacement
immediately due to condition of existing
facilities. Should not wait until 1998.
,
5
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August 30, 1994
City of Rosemouht . �
E3ox S10 �
Rosemount. Mn 55068
• Rich
Tr�anks far letting us demo the John Deere F1145 moWer'" last week. Listed
here are some flgures bn e teese program for the c1ty. 1'his program is
designed to reduce dot�m time by provlding moWers that are rotated every
. � tWo years or less. The units Will be covered under the manufacturer's
�' Warranty for the full �ix years of the program.
F935 tractton untt �}' ��d ���'
72 moW�r �3UUU.t�O
F 1145 trac t 1 on un i t C 4wd� � 2 ��''`�
72 moWer �35U0.00:
Lrade:
F93S tractlon unit/moWer -�300U.UU��� ��
Ford tractlon unit/mo�rer -�7000.00
This Would be the �ost per unit per year rotating each untt at � least every
other year �or a s1x year period. You may use your trade in units to off-
set �the rentat costs. . The 'rental for the lst year for both untts Would be
$1 , 2nd year Would be $3000.00, 3rd year �6500.OU, etc. If you have any
ques�tions, please �all .
Sincerely
• J Milt Karnick
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