Fleet Budget Scenarios DPW City of Milwaukee, Fleet Services February, 2010 Each year the City of Milwaukee Fleet Services Section submits at least three replacement equipment budget scenarios, which provide snapshots of the overall age of the fleet. These three budget scenarios include Preferred, Continuation, and Allocated levels of funding. Each budget scenario lists the optimal average age, the current average age, and the estimated average age based on that level of funding. While current average age and estimated average age are easily understood, optimal average age needs a little explanation. Optimal average age is the midpoint in the life cycle. If the fleet establishes a life cycle schedule of 10 years for cars, the optimal average age of cars would be 5 years. For example, assume that a fleet owns 100 cars, and has a life cycle expectancy of 10 years for each car. If the fleet replaced 10 cars each year, there would be 10 cars of each age, 0-9 in the fleet, and the average age of all cars in the fleet would be 5 years. In this case, the optimal average age for cars is also 5 years, indicating that the fleet is being replaced at a the desired level. However, since replacement funding is not always guaranteed, the average age of any type of equipment will gradually rise when replacement funding is not adequate to keep up with an established replacement schedule. A fleet of cars with an average age of 10 years probably includes several cars that are 19-20 years old. As demonstrated in the following budget scenarios, a less than adequate amount of budget funding over several years has resulted in a current average age much higher than the optimal average age. The estimated average age at that funding level provides a snapshot of the expected fleet age during the coming year. It can take many years of subsequent additional funding at the Preferred budget level to bring the fleet back down toward the optimal average age. During this time, repair costs per mile (or per hour) will rise with the additional and sometimes costly maintenance necessary when keeping fleet equipment beyond its economically useful life. Likewise, the Continuation, or cost to continue scenario, indicates the budget funding level required to keep the fleet at its current average age. Furthermore, the Allocated scenario indicates the various average ages of the fleet based on a level of funding proposed for fleet replacement.
In evaluating fleet replacement, various fleet industry best management practices are utilized along with time tested publications e.g. MANAGING PUBLIC EQUIPMENT 3 rd edition by APWA.
Buildings and Fleet Division Equipment Value and Proposed Annual Budget 04/15/2009 Purchased by non-fleet Services group Fleet Services Responsible to Purchase Average Age - All City of Milwaukee Optimal Average Age Desirable Cycle (years) Estimated Cost Each 4/7/08 Annual Funding Needed (Fleet Services Only) Total Fleet Value (Fleet Services Only) FSS Need Description Qty of Type Each Year Value (All) AERIAL MAN LIFT TRUCK 40 0 40 7.93 4.0 8 5.00 145,000.00 5,800,000.00 725,000.00 5,800,000.00 BACKHOE/LOADER 23 15 8 7.57 5.0 10 0.80 100,000.00 2,300,000.00 80,000.00 800,000.00 BOAT- NON POLICE 1 1 0 31.00 7.5 15 0.00 22,000.00 22,000.00 0.00 0.00 BREAKER FOR BACKHOE 51 29 22 19.16 5.0 10 2.20 14,500.00 739,500.00 31,900.00 319,000.00 BRUSH CHIPPER 15 0 15 7.13 4.5 9 1.67 45,000.00 675,000.00 75,000.00 675,000.00 BUCKET SEWER CLEANER - TRAILER 6 6 0 21.71 5.0 10 0.00 5,000.00 30,000.00 0.00 0.00 CAR 101 17 84 11.55 5.0 10 8.40 19,000.00 1,919,000.00 159,600.00 1,596,000.00 CARRYALL/SUBURBAN TYPE 14 1 13 10.29 5.0 10 1.30 35,700.00 499,800.00 46,410.00 464,100.00 CHLORINATOR - TRAILER 1 1 0 14.00 4.0 8 0.00 45,000.00 45,000.00 0.00 0.00 COMPRESSOR - DUMP TRUCK 7 2 5 6.43 5.5 11 0.45 90,000.00 630,000.00 40,909.09 450,000.00 COMPRESSOR - TRAILER OR SKID 80 21 59 14.88 5.5 11 5.36 17,500.00 1,400,000.00 93,863.64 1,032,500.00 COMPRESSOR TRUCK 24 0 24 11.83 5.5 11 2.18 65,500.00 1,572,000.00 142,909.09 1,572,000.00 CONCRETE MIXER 4 0 4 17.00 3.0 6 0.67 3,500.00 14,000.00 2,333.33 14,000.00 CONCRETE STRIKE OFF 2 0 2 24.00 3.0 6 0.33 3,500.00 7,000.00 1,166.67 7,000.00 CONTRACTOR BODY DUMP 4 4 0 15.75 6.0 12 0.00 81,000.00 324,000.00 0.00 0.00 CRAWLER DOZER 2 0 2 16.00 10.0 20 0.10 130,750.00 261,500.00 13,075.00 261,500.00 DERRICK DIGGER 6 0 6 17.44 5.0 10 0.60 205,000.00 1,230,000.00 123,000.00 1,230,000.00 DRILL RIG 7 7 0 11.14 5.0 10 0.00 145,000.00 1,015,000.00 0.00 0.00 DUMP - 1 TON 2 YARD 72 15 57 8.99 5.0 10 5.70 39,000.00 2,808,000.00 222,300.00 2,223,000.00 DUMP - 2 TON 5 YARD 30 6 24 10.73 6.0 12 2.00 110,000.00 3,300,000.00 220,000.00 2,640,000.00 DUMP - SALTER 25 0 25 13.04 5.5 11 2.27 128,000.00 3,200,000.00 290,909.09 3,200,000.00 DUMP - SALTER w/underbelly PLOW 103 0 103 5.22 5.5 11 9.36 128,000.00 13,184,000.00 1,198,545.45 13,184,000.00 DUMP - TRIAXLE 44 16 28 7.95 6.0 12 2.33 140,000.00 6,160,000.00 326,666.67 3,920,000.00 DUMP 5 PASSANGER INSULATED 19 0 19 9.47 6.0 12 1.58 85,800.00 1,630,200.00 135,850.00 1,630,200.00 DUMP TANDEM AXLE 1 1 0 16.00 6.0 12 0.00 120,000.00 120,000.00 0.00 0.00 END LOADER 12 0 12 17.67 7.5 15 0.80 135,000.00 1,620,000.00 108,000.00 1,620,000.00 FLOOR SWEEPER 10 4 6 10.90 7.5 15 0.40 27,000.00 270,000.00 10,800.00 162,000.00 FLUSHER 1 1 0 15.00 5.0 10 0.00 14,000.00 14,000.00 0.00 0.00 FORKLIFT 16 5 11 18.38 7.5 15 0.73 45,000.00 720,000.00 33,000.00 495,000.00 GRAPPLE - SKID LOADER ATTACHMENT 14 0 14 9.57 2.5 5 2.80 3,000.00 42,000.00 8,400.00 42,000.00 GENERATOR 50 22 28 11.60 5.0 10 2.80 10,000.00 500,000.00 28,000.00 280,000.00 GRADALL - EXCAVATOR/CRANE 3 0 3 13.00 7.5 15 0.20 295,000.00 885,000.00 59,000.00 885,000.00 GRINDER/CRACK ROUTER SCABBLER 6 1 5 17.00 4.0 8 0.63 13,125.00 78,750.00 8,203.13 65,625.00 MULTI-PURPOSE SIDEWALK TRACTOR 36 0 36 6.33 6.5 13 2.77 95,000.00 3,420,000.00 263,076.92 3,420,000.00 HYDROCRANE - BASIN CLEANER 4 4 0 26.00 6.0 12 0.00 130,000.00 520,000.00 0.00 0.00 HYDROCRANE BUCKET ATTACHMENT 8 8 0 48.00 15.0 30 0.00 2,000.00 16,000.00 0.00 0.00 JEEP - PARKING ENFORCEMENT 56 56 0 4.95 4.0 8 0.00 23,600.00 1,321,600.00 0.00 0.00 JET VAC 9 9 0 6.94 5.0 10 0.00 250,000.00 2,250,000.00 0.00 0.00 LEAF HOPPER 15 0 15 12.00 5.0 10 1.50 3,500.00 52,500.00 5,250.00 52,500.00 - Page1 of 3 - DPW Fleet Services Copy of Fleet Value 2009
Buildings and Fleet Division Equipment Value and Proposed Annual Budget 04/15/2009 Purchased by non-fleet Services group Fleet Services Responsible to Purchase Average Age - All City of Milwaukee Optimal Average Age Desirable Cycle (years) Estimated Cost Each 4/7/08 Annual Funding Needed (Fleet Services Only) Total Fleet Value (Fleet Services Only) FSS Need Description Qty of Type Each Year Value (All) LEAF PAN OR RAMP 44 0 44 12.07 5.0 10 4.40 5,800.00 255,200.00 25,520.00 255,200.00 LEAF RAKE 115 0 115 11.25 5.0 10 11.50 4,800.00 552,000.00 55,200.00 552,000.00 LIGHT VANS 101 26 75 9.64 5.0 10 7.50 26,000.00 2,626,000.00 195,000.00 1,950,000.00 LINE ERASER 1 0 1 21.00 3.0 6 0.17 3,150.00 3,150.00 525.00 3,150.00 LINE MARKER 3 0 3 30.33 3.0 6 0.50 3,150.00 9,450.00 1,575.00 9,450.00 LOG LOADER 5 0 5 8.40 5.0 10 0.50 137,500.00 687,500.00 68,750.00 687,500.00 MINIVAN - PASSENGER VAN 9 4 5 14.89 5.0 10 0.50 24,500.00 220,500.00 12,250.00 122,500.00 MISCELLANEOUS SMALL TRACTORS 22 22 0 11.77 5.0 10 0.00 1,500.00 33,000.00 0.00 0.00 MISCELLANEOUS TRAILERS 203 23 180 16.37 7.5 15 12.00 7,500.00 1,522,500.00 90,000.00 1,350,000.00 MOBILE MEDICAL UNIT 2 2 0 15.00 6.0 12 0.00 175,000.00 350,000.00 0.00 0.00 MOWER - FLAIL ATTACHMENT 24 2 22 9.58 6.5 13 1.69 8,500.00 204,000.00 14,384.62 187,000.00 PACKER - REAR LOAD CONTAINER 5 0 5 9.00 5.5 11 0.45 125,000.00 625,000.00 56,818.18 625,000.00 PACKER RECYCLING 49 0 49 7.45 5.5 11 4.45 280,000.00 13,720,000.00 1,247,272.73 13,720,000.00 PACKER TOP LOADING 8 0 8 7.38 4.5 9 0.89 210,000.00 1,680,000.00 186,666.67 1,680,000.00 PACKER W/O CART LIFTERS 25 YD 2 0 2 21.00 5.5 11 0.18 225,000.00 450,000.00 40,909.09 450,000.00 PACKER WITH CART LIFTERS 25 YD 124 0 124 8.06 5.5 11 11.27 230,000.00 28,520,000.00 2,592,727.27 28,520,000.00 PAVEMENT BREAKER 2 0 2 10.00 6.0 12 0.17 25,000.00 50,000.00 4,166.67 50,000.00 PICK UP - ALL TYPES 255 56 199 11.89 5.5 11 18.09 28,000.00 7,140,000.00 506,545.45 5,572,000.00 POLICE DEPT - VEHICLE_EQUIP 782 782 0 5.59 4.0 8 0.00 26,200.00 20,488,400.00 0.00 0.00 PRESSURE TESTER TRAILER 1 1 0 17.00 4.0 8 0.00 30,000.00 30,000.00 0.00 0.00 PUMP 3 1 2 22.00 7.5 15 0.13 16,275.00 48,825.00 2,170.00 32,550.00 ROAD PATCHER TRUCK 2 0 2 11.00 5.0 10 0.20 235,000.00 470,000.00 47,000.00 470,000.00 ROAD PLANER - PROFILER 1 0 1 7.00 4.0 8 0.13 375,250.00 375,250.00 46,906.25 375,250.00 ROLLOFF CONTAINER 237 0 237 11.95 7.5 15 15.80 3,450.00 817,650.00 54,510.00 817,650.00 ROLLOFF TRUCK 13 0 13 12.54 5.5 11 1.18 147,000.00 1,911,000.00 173,727.27 1,911,000.00 ROOT CUTTER 2 0 2 18.50 5.0 10 0.20 37,800.00 75,600.00 7,560.00 75,600.00 SALT CONVEYOR 2 0 2 11.00 5.0 10 0.20 62,270.00 124,540.00 12,454.00 124,540.00 SALT CONVEYOR POWER UNIT 2 0 2 6.00 5.0 10 0.20 59,930.00 119,860.00 11,986.00 119,860.00 SALT SPREADER 188 9 179 7.99 10.0 20 8.95 20,000.00 3,760,000.00 179,000.00 3,580,000.00 SAND BLASTER 5 0 5 20.60 5.0 10 0.50 28,825.00 144,125.00 14,412.50 144,125.00 SAW - CONCRETE/ASPHALT 9 0 9 10.33 4.0 8 1.13 15,225.00 137,025.00 17,128.13 137,025.00 SEWER JET 4 4 0 2.75 6.0 12 0.00 175,000.00 700,000.00 0.00 0.00 SEWER OR DUCT RODDER 4 2 2 10.75 6.0 12 0.17 120,000.00 480,000.00 20,000.00 240,000.00 SHOP CRANE - SMALL MOBIL 7 1 6 24.43 7.5 15 0.40 110,000.00 770,000.00 44,000.00 660,000.00 SIDEWALK SWEEPER 4 0 4 9.50 4.0 8 0.50 75,000.00 300,000.00 37,500.00 300,000.00 SKID STEER LOADER 20 2 18 8.15 4.5 9 2.00 32,000.00 640,000.00 64,000.00 576,000.00 SNOW BLOWER FOR SMALL TRACTOR 20 1 19 4.95 5.0 10 1.90 9,500.00 190,000.00 18,050.00 180,500.00 SNOW BLOWER FOR ENDLOADER 12 0 12 30.58 15.0 30 0.40 76,850.00 922,200.00 30,740.00 922,200.00 SNOW PLOW 802 14 788 17.99 15.0 30 26.27 10,300.00 8,260,600.00 270,546.67 8,116,400.00 - Page2 of 3 - DPW Fleet Services Copy of Fleet Value 2009
Buildings and Fleet Division Equipment Value and Proposed Annual Budget Purchased by non-fleet Services group Fleet Services Responsible to Purchase Average Age - All City of Milwaukee Optimal Average Age Desirable Cycle (years) Estimated Cost Each 4/7/08 Annual Funding Needed (Fleet Services Only) Total Fleet Value (Fleet Services Only) FSS Need Description Qty of Type Each Year Value (All) SOD CUTTER/SOIL SHREDDER 4 0 4 26.25 3.0 6 0.67 11,500.00 46,000.00 7,666.67 46,000.00 SPRAYER - TRAILER MOUNTED 4 0 4 32.00 5.0 10 0.40 1,750.00 7,000.00 700.00 7,000.00 STAKE TRUCK 34 16 18 11.41 5.0 10 1.80 74,000.00 2,516,000.00 133,200.00 1,332,000.00 STEAM CLEANER PRESSURE WASHER 5 0 5 17.20 7.5 15 0.33 7,000.00 35,000.00 2,333.33 35,000.00 STEP VAN 74 48 26 9.00 6.0 12 2.17 80,000.00 5,920,000.00 173,333.33 2,080,000.00 STREET SWEEPER 21 0 21 6.62 4.5 9 2.33 170,000.00 3,570,000.00 396,666.67 3,570,000.00 STUMP CUTTER 7 0 7 9.29 3.0 6 1.17 42,000.00 294,000.00 49,000.00 294,000.00 TAR KETTLE 13 0 13 9.69 5.0 10 1.30 8,715.00 113,295.00 11,329.50 113,295.00 TAR MELTER 6 0 6 11.33 4.0 8 0.75 28,000.00 168,000.00 21,000.00 168,000.00 TILT TOP CAR CARRIER 1 0 1 4.00 6.0 12 0.08 80,000.00 80,000.00 6,666.67 80,000.00 TRAILER CABLE REEL 11 0 11 21.00 7.5 15 0.73 14,500.00 159,500.00 10,633.33 159,500.00 TREE SPADE 4 0 4 18.75 4.0 8 0.50 26,675.00 106,700.00 13,337.50 106,700.00 TRENCHER 13 0 13 13.85 4.0 8 1.63 110,000.00 1,430,000.00 178,750.00 1,430,000.00 UNDER BRIDGE INSP. BOOM TRUCK 1 0 1 18.00 7.5 15 0.07 475,000.00 475,000.00 31,666.67 475,000.00 VAC ALL 4 0 4 15.50 5.0 10 0.40 220,000.00 880,000.00 88,000.00 880,000.00 VACUUM UNIT - SKID MOUNTED 8 8 0 9.88 5.0 10 0.00 44,000.00 352,000.00 0.00 0.00 VEHICLE HEATER/TOOL HEATER 63 39 24 6.68 5.0 10 2.40 3,650.00 229,950.00 8,760.00 87,600.00 VIBRATORY ROLLER 17 0 17 10.35 4.0 8 2.13 16,000.00 272,000.00 34,000.00 272,000.00 VIBRATORY SOIL COMPACTOR 9 0 9 8.67 3.0 6 1.50 4,200.00 37,800.00 6,300.00 37,800.00 WATER WAGON 1 0 1 27.00 7.5 15 0.07 6,900.00 6,900.00 460.00 6,900.00 WELDER 9 0 9 25.44 5.0 10 0.90 13,925.00 125,325.00 12,532.50 125,325.00 WRECKER HEAVY 1 0 1 19.00 10.0 20 0.05 250,000.00 250,000.00 12,500.00 250,000.00 WRECKER LIGHT 5 3 2 8.80 4.0 8 0.25 75,000.00 375,000.00 18,750.00 150,000.00 Totals/Averages 4331 1318 3013 12.79 5.6 11.3 221.08 $177,458,695.00 $11,820,755.74 $134,263,045.00 04/15/2009 - Page3 of 3 - DPW Fleet Services Copy of Fleet Value 2009
Copy of Budget-Fleet_O+M_2010 City of Milwaukee-Fleet Services April 8, 2009 2010 Requested O+M Equipment Equipment Name Unit Cost Funds for 2010 Cars, Compact-Hybrid 20,000 34 680,000 Cars, Mid-Size 18,000 2 36,000 Cars, Station Wagon 19,000 2 38,000 Chipper, Brush 48,000 5 240,000 Compactor, Vibratory 2,000 4 8,000 Compressor, Trailer Mounted 16,000 10 160,000 Endloader, Skid-Steer, 1,350 lb. w/trailer 29,000 10 290,000 Roller, Vibratory 16,000 9 144,000 Sealant Melter 31,000 3 93,000 Spreader, 1.7 Yard 7,000 5 35,000 Stump Cutter 42,000 2 84,000 Tar Kettle 9,000 4 36,000 Truck, Dump, 2 Yard 45,000 15 675,000 Truck, Pickup, 4400 lb. 4x2 20,000 19 380,000 Truck, Pickup, 4600 lb. 4x4 26,000 2 52,000 Truck, Pickup, 8600 lb. 4x2 25,000 42 1,050,000 Truck, Pickup, 9200 lb. 4x4 /Plow, Salter 40,000 18 720,000 Truck, Pickup, 8600 lb. w/ Utility Body 46,000 9 414,000 Truck, Platform, 11,000 lb. 30,000 6 180,000 Truck, Van, Cargo, 5600 lb. 24,000 16 384,000 Truck, Van, Cargo, 9500 lb. 27,000 21 567,000 Truck, Van, 8-Passenger 26,000 2 52,000 Computer Hardware 1,500 30 45,000 Engine Diagnostic Analyzer 6,000 1 6,000 Scanner 5,000 1 5,000 O&M Total Preferred (2010) $ 6,374,000 The O&M Total-Preferred figure reflects an amount needed to replace all major O&M units that have reached or exceeded their expected life cycle (10 years for vehicles). Funding at this level would reduce the average age of major O&M equipment by 50%. The equipment to be replaced on the above list is 10-24 years old. The replacement of these vehicles would greatly enhance the delivery of City services, while reducing the need for major maintenance expense. Optimal average age expected using desired replacement schedule: 5.0 years Current average age of above O&M equipment: 10.2 years Estimated average age of O&M equipment based on above funding level: 5.7 years
City of Milwaukee-DPW Fleet Services Section March 26, 2009 2010 Capital Budget (Allocated) Equipment Name Cost Each Dollars Sweeper 1 155,000 155,000 Tractor Light, Multi-Purpose 4 80,000 320,000 Truck, Aerial, 50 Ft. Utility Body 1 145,000 145,000 Truck, Aerial, 50 Ft., Chip Box 1 149,000 149,000 Truck, Dump, 2 Yard w/compressor 1 88,000 88,000 Truck, Dump, 5 Yard w/underbody Plow 5 140,000 700,000 Truck, Dump, 5 Yard, Crew Cab 2 85,000 170,000 Truck, Log Loader 1 140,000 140,000 Truck, Packer, 25 Yard Rearload 3 220,000 660,000 Truck, Packer, 25 Yard w/ramp Lift Arm 2 224,000 448,000 Truck, Packer, 25 Yard Recycle 6 260,000 1,560,000 Truck, Pickup, Utility 10 54,000 540,000 Truck, Platform/Compressor/Salter/Plow 3 70,000 210,000 Truck, Vac-All 1 215,000 215,000 Capital Total-Allocated 2010 5,500,000 The Capital Total-Allocated above reflects the amount distributed for replacement capital equipment, as submitted. This amount is lower than what is needed to sustain the fleet in its current condition, and will most likely result in loss of equipment availability. Optimal average age expected using desired replacement schedule - 6.0 years Current average age of capital equipment - 9.5 years. Estimated average age of capital equipment based on above funding level: 10.1 years Copy of Budget-Fleet_Capital_2010